New Peoples Bankshares (NWPP) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 13, 2017
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	1,163,389
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		23,819,148
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 6,123	$ 5,732	$ 17,902	$ 16,910
Federal funds sold	1		1
Interest-earning deposits with banks	58	23	150	67
Investments	391	334	1,122	1,161
Dividends on equity securities (restricted)	39	35	105	99
Total Interest and Dividend Income	6,612	6,124	19,280	18,237
Deposits
Demand	11	13	36	37
Savings	44	44	137	122
Time deposits above	591	441	1,618	1,288
FHLB advances	33	45	117	109
Federal funds purchased				2
Trust Preferred Securities	154	128	437	373
Total Interest Expense	833	671	2,345	1,931
NET INTEREST INCOME	5,779	5,453	16,935	16,306
PROVISION FOR LOAN LOSSES				(500)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,779	5,453	16,935	16,806
NONINTEREST INCOME
Gain on sale and leaseback transactions			2,619
Service charges	934	854	2,655	1,926
Fees, commissions and other income	807	1,031	2,429	2,694
Insurance and investment fees	40	103	146	404
Net realized gains on sale of investment securities				240
Life insurance investment income	27	55	82	118
Total Noninterest Income	1,808	2,043	7,931	5,382
NONINTEREST EXPENSES
Salaries and employee benefits	3,413	3,405	10,135	9,954
Occupancy and equipment expense	1,115	1,121	3,376	3,042
Lease expense - operating leases	112		150
Advertising and public relations	83	99	257	332
Data processing and telecommunications	630	569	1,853	1,726
FDIC insurance premiums	86	137	298	407
Other real estate owned and repossessed vehicles, net	227	347	1,280	599
Other operating expenses	1,432	1,477	4,350	4,208
Total Noninterest Expenses	7,098	7,155	21,699	20,268
INCOME BEFORE INCOME TAXES	489	341	3,167	1,920
INCOME TAX EXPENSE (BENEFIT)	5	(5)	(9)	(6)
NET INCOME	$ 484	$ 346	$ 3,176	$ 1,926
Income Per Share
Basic	$ 0.02	$ 0.01	$ 0.14	$ 0.08
Fully Diluted	$ 0.02	$ 0.01	$ 0.14	$ 0.08
Average Weighted Shares of Common Stock
Basic	23,355,580	23,354,111	23,355,611	23,354,092
Fully Diluted	23,355,580	23,354,111	23,355,611	23,354,092

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 484	$ 346	$ 3,176	$ 1,926
Investment Securities Activity
Unrealized gains (losses) arising during the period	(216)	(70)	391	1,409
Tax related to unrealized gains (losses)	73	24	(133)	(479)
Reclassification of realized gains during the period				(240)
Tax related to realized gains				82
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(143)	(46)	258	772
TOTAL COMPREHENSIVE INCOME	$ 341	$ 300	$ 3,434	$ 2,698

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 16,559	$ 18,500
Interest-bearing deposits with banks	20,808	16,816
Federal funds sold	8	132
Total Cash and Cash Equivalents	37,375	35,448
Investment securities available-for-sale	68,231	70,011
Loans receivable	501,390	468,629
Allowance for loan losses	(6,086)	(6,072)
Net Loans	495,304	462,557
Bank premises and equipment, net	26,454	29,985
Equity securities (restricted)	2,570	2,802
Other real estate owned	7,506	10,655
Accrued interest receivable	1,956	1,848
Life insurance investments	12,356	12,274
Deferred taxes, net	5,152	5,285
Right-of-use assets - operating leases	5,252
Other assets	3,080	3,470
Total Assets	665,236	634,335
Demand deposits:
Noninterest bearing	159,475	151,914
Interest-bearing	33,770	40,213
Savings deposits	121,088	114,492
Time deposits	267,283	247,819
Total Deposits	581,616	554,438
Federal Home Loan Bank advances	7,858	13,758
Lease liabilities - operating leases	5,252
Accrued interest payable	394	331
Accrued expenses and other liabilities	3,265	2,395
Trust preferred securities	16,496	16,496
Total Liabilities	614,881	587,418
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,356,632 and 23,354,457 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	46,714	46,709
Common stock warrants	762	764
Additional paid-in-capital	13,966	13,965
Retained deficit	(10,889)	(14,065)
Accumulated other comprehensive loss	(198)	(456)
Total Stockholders' Equity	50,355	46,917
Total Liabilities and Stockholders' Equity	$ 665,236	$ 634,335

CONSOLIDATED BALANCE SHEETS (U5

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	23,356,632	23,354,457
Common stock, outstanding	23,356,632	23,354,457

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Common Stock Warrants [Member]	Additional Paid-in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at beginning at Dec. 31, 2015	$ 46,708	$ 764	$ 13,965	$ (15,023)	$ (327)	$ 46,087
Balance at beginning (in shares) at Dec. 31, 2015	23,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				1,926		1,926
Other comprehensive income, net of tax					772	772
Balance at end at Sep. 30, 2016	$ 46,708	764	13,965	(13,097)	445	48,785
Balance at end (in shares) at Sep. 30, 2016	23,354
Balance at beginning at Dec. 31, 2016	$ 46,709	764	13,965	(14,065)	(456)	$ 46,917
Balance at beginning (in shares) at Dec. 31, 2016	23,354					23,354,457
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				3,176		$ 3,176
Exercise of common stock warrants	$ 5	(2)	1			4
Exercise of common stock warrants (in shares)	3
Other comprehensive income, net of tax					258	258
Balance at end at Sep. 30, 2017	$ 46,714	$ 762	$ 13,966	$ (10,889)	$ (198)	$ 50,355
Balance at end (in shares) at Sep. 30, 2017	23,357					23,356,632

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,176	$ 1,926
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,911	1,815
Provision for loan losses		(500)
Income on life insurance	(82)	(118)
Gain on sale of securities available-for-sale		(240)
Gain on sale and leaseback transactions	(2,619)
Gain on sale of premises and equipment	(2)	(67)
(Gain) loss on sale of foreclosed assets	29	(290)
Adjustment of carrying value of foreclosed real estate	668	165
Accretion of bond premiums/discounts	589	711
Deferred tax benefit		(95)
Net change in:
Interest receivable	(108)	(108)
Other assets	390	(1,261)
Accrued interest payable	63	6
Accrued expenses and other liabilities	826	668
Net Cash Provided by Operating Activities	4,841	2,612
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(29,348)	(27,362)
Purchase of securities available-for-sale	(13,032)	(9,708)
Proceeds from sales and maturities of securities available-for-sale	14,614	37,487
Net sale (purchase) of equity securities (restricted)	232	(172)
Payments for the purchase of premises and equipment	(1,866)	(4,469)
Proceeds from sales and leaseback transactions	1,042
Proceeds from sale of premises and equipment	5	735
Proceeds from insurance claims on other real estate owned	12
Proceeds from sales of other real estate owned	4,145	2,379
Net Cash Used In Investing Activities	(24,196)	(1,110)
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants	4
Net increase (decrease) in Federal Home Loan Bank advances	(5,900)	6,100
Net change in:
Demand deposits	1,118	13,588
Savings deposits	6,596	(6,069)
Time deposits	19,464	(9,022)
Net Cash Provided by Financing Activities	21,282	4,597
Net increase in cash and cash equivalents	1,927	6,099
Cash and Cash Equivalents, Beginning of Period	35,448	26,338
Cash and Cash Equivalents, End of Period	37,375	32,437
Supplemental Disclosure of Cash Paid During the Period for:
Interest	2,282	1,925
Taxes		95
Supplemental Disclosure of Non Cash Transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	5,252
Loan made to finance sale of premises and equipment	4,935
Other real estate acquired in settlement of foreclosed loans	2,761	3,851
Loans made to finance sale of foreclosed real estate	1,225	676
Transfer of premises and equipment to other real estate	125
Transfer of other real estate to premises and equipment		125
Change in unrealized gains (losses) on securities available-for-sale	$ 391	$ 1,169

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“The Company”) is a financial holding company whose principal activity is the ownership and management of a community bank. New Peoples Bank, Inc. (“Bank”) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997. The Bank commenced operations on October 28, 1998, after receiving regulatory approval. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank. The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee. On June 9, 2003, the Company formed two wholly-owned subsidiaries; NPB Financial Services, Inc. and NPB Web Services, Inc. On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities. On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities. NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank. In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc. which operates solely as an insurance agency. On March 4, 2016 the Federal Reserve Bank of Richmond approved the Company’s election to become a financial holding company. In July 2016, the Bank and its wholly-owned subsidiary NPB Insurance Services, Inc. announced that it was forming a business relationship with The Hilb Group of Virginia dba CSE Insurance Services, a division of the Hilb Group, LLC (“CSE”), located in Abingdon, Virginia, to provide insurance services for its current and future customers. Effective July 1, 2016, NPB Insurance Services, Inc. sold its existing book of business to CSE. These customers are now serviced by CSE and the Bank refers future insurance needs of its customers to CSE. On June 7, 2017, NPB Insurance Services, Inc. purchased a 39% membership interest in Lonesome Pine Title Agency, LLC, which provides title insurance. Another member of the agency is a related party to the Company.

ACCOUNTING PRINCIPLES

ACCOUNTING PRINCIPLES	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
ACCOUNTING PRINCIPLES	NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2017 and December 31, 2016, and the results of operations for the three and nine month periods ended September 30, 2017 and 2016. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine month periods ended September 30, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
Income Per Share
EARNINGS PER SHARE	NOTE 3 EARNINGS PER SHARE: Basic earnings per share computations are based on the weighted average number of shares outstanding during each period. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued related to outstanding common stock warrants are determined by the Treasury method. For the three and nine months ended September 30, 2017 and 2016, potential common shares of 879,803 and 882,178, respectively, were anti-dilutive and were not included in the calculation. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the nine months 2017 2016 2017 2016 Net income $ 484 $ 346 $ 3,176 $ 1,926 Weighted average shares outstanding 23,355,580 23,354,111 23,355,611 23,354,092 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,355,580 23,354,111 23,355,611 23,354,092 Basic and diluted income per share $ 0.02 $ 0.01 $ 0.14 $ 0.08

CAPITAL

CAPITAL	9 Months Ended
	Sep. 30, 2017
Capital [Abstract]
CAPITAL	NOTE 4 CAPITAL: Capital Requirements and Ratios The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined), Tier 1 capital (as defined) to average assets (as defined), and Common Equity Tier 1 capital (as defined) to risk-weighted assets (as defined). As of September 30, 2017, the Bank meets all capital adequacy requirements to which it is subject. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2017 and December 31, 2016, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 70,084 15.96 % $ 35,119 8.0 % $ 43,899 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,590 14.71 % 26,339 6.0 % 35,119 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,590 9.84 % 26,249 4.0 % 32,811 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,590 14.71 % 19,754 4.5 % 28,534 6.5 % December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 67,549 16.64 % $ 32,476 8.0 % $ 40,595 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 24,357 6.0 % 32,476 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93 % 25,149 4.0 % 31,436 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 18,268 4.5 % 26,386 6.5 % As of September 30, 2017, the Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and Common Equity Tier 1 ratios as set forth in the above tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Under Basel III Capital requirements, a capital conservation buffer of 0.625% became effective beginning on January 1, 2016. The capital conservation buffer is 1.25% as of September 30, 2017 and the Bank met that requirement with a buffer of 7.96%. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.50%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions, such as dividends, or discretionary bonus payments.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2017
Investment Securities Activity
INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2017 U.S. Government Agencies $ 24,363 $ 103 $ 155 $ 24,311 Taxable municipals 2,318 7 32 2,293 Corporate bonds 3,906 191 - 4,097 Mortgage backed securities 37,944 23 437 37,530 Total Securities AFS $ 68,531 $ 324 $ 624 $ 68,231 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2017 U.S. Government Agencies $ 12,043 $ 134 $ 1,681 $ 21 $ 13,724 $ 155 Taxable municipals 1,055 28 262 4 1,317 32 Corporate bonds — — — — — — Mtg. backed securities 21,749 230 9,980 207 31,729 437 Total Securities AFS $ 34,847 $ 392 $ 11,923 $ 232 $ 46,770 $ 624 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 — — 1,561 50 Corporate bonds 500 — — — 500 — Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 At September 30, 2017, the available-for-sale portfolio included 107 investments for which the fair market value was less than amortized cost. At December 31, 2016, the available-for-sale portfolio included 107 investments for which the fair market value was less than amortized cost. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had an other-than-temporary impairment. Investment securities with a carrying value of $10.6 million and $11.3 million at September 30, 2017 and December 31, 2016, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $3.2 million and $24.8 million, respectively, for the nine months ended September 30, 2017 and 2016. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the nine months (Dollars are in thousands) 2017 2016 2017 2016 Gross gains realized $ 30 $ — $ 30 $ 275 Gross losses realized (30 ) — (30 ) (35 ) Net realized gains $ — $ — $ — $ 240 The amortized cost and fair value of investment securities at September 30, 2017, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 11 $ 11 1.57% Due after one year through five years 3,636 3,622 2.03% Due after five years through ten years 14,853 14,977 3.03% Due after ten years 50,031 49,621 2.14% Total $ 68,531 $ 68,231 2.32% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.8 million as of September 30, 2017 and December 31, 2016, respectively.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
LOANS	NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2017 December 31, 2016 Real estate secured: Commercial $ 114,880 $ 103,331 Construction and land development 30,878 25,755 Residential 1-4 family 254,234 249,700 Multifamily 14,790 12,582 Farmland 23,287 24,948 Total real estate loans 438,069 416,316 Commercial 36,382 26,955 Agriculture 3,733 3,164 Consumer installment loans 22,519 22,188 All other loans 687 6 Total loans $ 501,390 $ 468,629 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2017 December 31, 2016 Real estate secured: Commercial $ 2,040 $ 3,403 Construction and land development 274 319 Residential 1-4 family 6,640 8,355 Multifamily 155 166 Farmland 1,062 1,003 Total real estate loans 10,171 13,246 Agriculture 7 83 Consumer installment loans 45 76 Total loans receivable on nonaccrual status $ 10,223 $ 13,405 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2017 and 2016 was $456 thousand and $397 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2017 and December 31, 2016: As of September 30, 2017 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,497 $ 2,581 $ — Construction and land development — — — Residential 1-4 family 3,813 4,112 — Multifamily 285 326 — Farmland 1,501 1,884 — Commercial — — — Agriculture 18 18 — Consumer installment loans 8 8 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,322 2,420 339 Construction and land development 202 447 69 Residential 1-4 family 564 593 104 Multifamily 1,310 1,377 194 Farmland 609 621 245 Commercial 496 496 181 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 13,625 $ 14,883 $ 1,132 As of December 31, 2016 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 3,636 $ 4,055 $ — Construction and land development 5 5 — Residential 1-4 family 3,861 4,182 — Multifamily 301 342 — Farmland 3,895 4,601 — Commercial — — — Agriculture 19 19 — Consumer installment loans 26 43 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,191 1,270 65 Construction and land development 240 469 106 Residential 1-4 family 555 565 56 Multifamily — — — Farmland 591 602 299 Commercial 67 67 18 Agriculture 5 5 5 Consumer installment loans 9 9 3 All other loans — — — Total $ 14,401 $ 16,234 $ 552 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2017 September 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,976 $ 73 $ 4,222 $ 77 Construction and land development 2 — 89 — Residential 1-4 family 3,827 152 3,716 140 Multifamily 402 15 288 14 Farmland 2,538 52 4,211 163 Commercial — — — — Agriculture 19 1 29 2 Consumer installment loans 13 — 24 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,208 80 1,539 6 Construction and land development 222 — 271 — Residential 1-4 family 634 14 939 18 Multifamily 660 48 100 — Farmland 673 26 572 18 Commercial 282 24 71 2 Agriculture 2 — 107 1 Consumer installment loans 2 — 30 1 All other loans — — — — Total $ 13,460 $ 485 $ 16,208 $ 442 Three Months Ended September 30, 2017 September 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,757 $ 9 $ 3,965 $ 4 Construction and land development — — 7 — Residential 1-4 family 3,833 50 3,833 37 Multifamily 287 4 307 3 Farmland 1,193 26 4,274 61 Commercial — — — — Agriculture 18 — 23 — Consumer installment loans 9 — 22 (2 ) All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,516 74 1,309 6 Construction and land development 209 — 259 — Residential 1-4 family 567 5 606 7 Multifamily 1,321 16 83 (4 ) Farmland 756 10 504 6 Commercial 497 8 68 — Agriculture — — 97 3 Consumer installment loans — — 32 1 All other loans — — — — Total $ 12,963 $ 202 $ 15,389 $ 122 An age analysis of past due loans receivable is below. At September 30, 2017 and December 31, 2016, there were no loans over 90 days past due that were accruing. As of September 30, 2017 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 203 $ 530 $ 528 $ 1,261 $ 113,619 $ 114,880 Construction and land development 19 — 43 62 30,816 30,878 Residential 1-4 family 3,523 1,076 1,121 5,720 248,514 254,234 Multifamily — — — — 14,790 14,790 Farmland 55 — 284 339 22,948 23,287 Total real estate loans 3,800 1,606 1,976 7,382 430,687 438,069 Commercial 127 — — 127 36,255 36,382 Agriculture 1 — 4 5 3,728 3,733 Consumer installment Loans 66 1 20 87 22,432 22,519 All other loans — — — — 687 687 Total loans $ 3,994 $ 1,607 $ 2,000 $ 7,601 $ 493,789 $ 501,390 As of December 31, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 — — 1,367 11,215 12,582 Farmland 2,987 — — 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 — — 20 26,935 26,955 Agriculture 19 — 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans — — — — 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 106,115 $ 4,772 $ 3,993 $ 114,880 Construction and land development 29,757 847 274 30,878 Residential 1-4 family 244,924 1,971 7,339 254,234 Multifamily 12,977 157 1,656 14,790 Farmland 19,491 2,049 1,747 23,287 Total real estate loans 413,264 9,796 15,009 438,069 Commercial 33,665 2,221 496 36,382 Agriculture 3,700 26 7 3,733 Consumer installment loans 22,459 3 57 22,519 All other loans 687 — — 687 Total $ 473,775 $ 12,046 $ 15,569 $ 501,390 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 — 88 3,164 Consumer installment loans 22,086 — 102 22,188 All other loans 6 — — 6 Total $ 436,150 $ 14,173 18,306 $ 468,629

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
ALLOWANCE FOR LOAN LOSSES	NOTE 7 ALLOWANCE FOR LOAN LOSSES: The following table details activity in the allowance for loan losses by portfolio segment for the period ended September 30, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of September 30, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179 ) $ 191 $ (58 ) $ 1,579 Construction and land development 346 — — (53 ) 293 Residential 1-4 family 2,376 (369 ) 39 48 2,094 Multifamily 241 — — 181 422 Farmland 428 (49 ) 358 (309 ) 428 Total real estate loans 5,016 (597 ) 588 (191 ) 4,816 Commercial 163 (11 ) 147 127 426 Agriculture 31 — 4 (10 ) 25 Consumer installment loans 123 (134 ) 17 160 166 All other loans — — — 4 4 Unallocated 739 — — (90 ) 649 Total $ 6,072 $ (742 ) $ 756 $ — $ 6,086 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 339 $ 1,240 $ 1,579 $ 4,819 $ 110,061 $ 114,880 Construction and land development 69 224 293 202 30,676 30,878 Residential 1-4 family 104 1,990 2,094 4,377 249,857 254,234 Multifamily 194 228 422 1,595 13,195 14,790 Farmland 245 183 428 2,110 21,177 23,287 Total real estate loans 951 3,865 4,816 13,103 424,966 438,069 Commercial 181 245 426 496 35,886 36,382 Agriculture - 25 25 18 3,715 3,733 Consumer installment loans - 166 166 8 22,511 22,519 All other loans - 4 4 - 687 687 Unallocated - 649 649 - - - Total $ 1,132 $ 4,954 $ 6,086 $ 13,625 $ 487,765 $ 501,390 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557 ) $ 220 $ (422 ) $ 1,625 Construction and land development 332 (5 ) 26 (7 ) 346 Residential 1-4 family 2,437 (720 ) 87 572 2,376 Multifamily 232 (18 ) — 27 241 Farmland 675 (2 ) 103 (348 ) 428 Total real estate loans 6,060 (1,302 ) 436 (178 ) 5,016 Commercial 266 (65 ) 62 (100 ) 163 Agriculture 124 — 7 (100 ) 31 Consumer installment loans 128 (83 ) 24 54 123 All other loans 1 — — (1 ) — Unallocated 914 — — (175 ) 739 Total $ 7,493 $ (1,450 ) $ 529 $ (500 ) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.

TROUBLED DEBT RESTRUCTURINGS

TROUBLED DEBT RESTRUCTURINGS	9 Months Ended
	Sep. 30, 2017
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At September 30, 2017 there were $7.3 million in loans that are classified as troubled debt restructurings compared to $9.6 million at December 31, 2016. The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2017 and 2016. For the nine months ended September 30, 2017 For the nine months ended September 30, 2016 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — 1 $ 341 $ 341 Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 280 Total real estate loans — — — 2 632 621 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 2 $ 632 $ 621 During the nine months ended September 30, 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the nine months ended September 30, 2016, the Company modified the terms of two loans for which the modification was considered to be a troubled debt restructuring. On one loan, the interest rate and maturity date were not modified; however, the payment terms were changed. On one loan, the interest rate was lowered and the payment terms and maturity date were changed. During the three months ended September 30, 2017 and 2016, the Company modified no loans that were considered to be a troubled debt restructuring. No loans previously modified as troubled debt restructurings defaulted during the nine months ended September 30, 2017. There was one commercial real estate loan with a recorded investment of $302 thousand that had been modified as a troubled debt restructuring that defaulted during the nine months ended September 30, 2016, which was within twelve months of the loan’s modification date. There were no loans modified as troubled debt restructurings that defaulted during the three months ended September 30, 2017 and 2016, which were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan.

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
OTHER REAL ESTATE OWNED	NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2017 and the year ended December 31, 2016: (Dollars are in thousands) September 30, December 31, 2016 Balance, beginning of period $ 10,655 $ 12,398 Additions 2,761 4,577 Purchases of/improvements to — 48 Transfers of premises and equipment 125 — Transfers of other real estate owned — (125 ) Proceeds from sales of (4,145 ) (4,232 ) Proceeds from insurance claims (12 ) — Loans made to finance sales of (1,225 ) (818 ) Adjustment of carrying value (668 ) (1,414 ) Deferred gain from sales 44 — Gain (loss) from sales (29 ) 221 Balance, end of period $ 7,506 $ 10,655

FAIR VALUES

FAIR VALUES	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUES	NOTE 10 FAIR VALUES: The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair Value Measurements and Disclosures also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available-for-Sale – Loans - Foreclosed Assets – Assets and liabilities measured at fair value are as follows as of September 30, 2017 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 24,311 $ — Taxable municipals — 2,293 — Corporate bonds — 4,097 — Mortgage backed securities — 37,530 — (On a non-recurring basis) — — 7,506 Impaired loans: Real estate secured: Commercial — — 4,480 Construction and land development — — 133 Residential 1-4 family — — 4,273 Multifamily — — 1,401 Farmland — — 1,865 Commercial — — 315 Agriculture — — 18 Consumer installment loans — — 8 All other loans — — — Total $ — $ 68,231 $ 19,999 Assets and liabilities measured at fair value are as follows as of December 31, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 24,632 $ — Taxable municipals — 2,292 — Corporate bonds — 3,749 — Mortgage backed securities — 39,338 — (On a non-recurring basis) — — 10,655 Impaired loans: Real estate secured: Commercial — — 4,762 Construction and land development — — 139 Residential 1-4 family — — 4,360 Multifamily — — 301 Farmland — — 4,187 Commercial — — 49 Agriculture — — 19 Consumer installment loans — — 32 All other loans — — — Total $ — $ 70,011 $ 24,504 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2017 Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 12,493 $ 13,849 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 7,506 $ 10,655 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2017 and December 31, 2016. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2017 and December 31, 2016. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2017 Financial Instruments – Assets Net Loans $ 495,304 $ 497,359 $ — $ 484,866 $ 12,493 Financial Instruments – Liabilities Time Deposits 267,283 266,990 — 266,990 — FHLB Advances 7,858 8,053 — 8,053 — December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ — $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 — 247,258 — FHLB Advances 13,758 13,993 — 13,993 —

SALE AND LEASEBACK TRANSACTIONS

SALE AND LEASEBACK TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Leases [Abstract]
SALE AND LEASEBACK TRANSACTIONS	NOTE 11 SALE AND LEASEBACK TRANSACTIONS: On May 31, 2017 the Bank, the wholly-owned subsidiary of the Company, sold four (4) of its properties, one each located in Abingdon, Bristol, Gate City and Castlewood, Virginia to NPB Good Steward Properties, LLC (“Good Steward”) for a total purchase price of $6.2 million. Good Steward is not an affiliate of the Company or the Bank. After selling expenses of $192 thousand, the net proceeds on the transactions were $6.0 million. The sales prices for the properties were based on outside appraisals obtained by the Bank. The Bank provided $4.9 million of financing to Good Steward for a term of 10 years for this transaction. In connection with the sale of the four properties, the Bank on May 31, 2017 entered into commercial lease agreements with Good Steward for the properties (the “Leases”), which will allow the Bank to continue to service customers from these locations. The Leases, which commenced on June 1, 2017, provide the Bank with use of the properties for an initial term of fifteen (15) years. Base rent payments for years 1 through 5 of the Leases are approximately $417 thousand a year. The base rent payments will increase by 8% for years 6 through 10 of the Leases and then by another 8% for years 11 through 15 of the Leases. The Bank has the option to renew the Leases five (5) times and each renewal would be for a term of five (5) years. The base rent for the renewals would be negotiated at the time the renewal option is exercised by the Bank. While the cash lease payments are currently $417 thousand a year, the Company is required to straight-line the expense over the initial term of fifteen (15) years. As a result, the annual lease expense will be approximately $451 thousand. The weighted average remaining life of the leases is 14.68 years. In anticipation of this transaction the Company adopted ASU No. 2016-02 Leases (Topic 842) early. This ASU revised certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. As a result of this transaction the Company recognized right-to-use assets – operating leases of approximately $5.3 million, along with corresponding lease liabilities of approximately $5.3 million. The $5.3 million was determined by calculating the present value of the annual cash lease payments using a discount rate of 3.25%. The 3.25% discount rate was determined to be our fifteen (15) year incremental borrowing rate as of May 31, 2017. As a result of the sale and the determination that the corresponding leases were operating leases, the Company recognized a gain of $2.6 million on the sale and leaseback transactions. The Bank and its parent, New Peoples Bankshares, Inc. and affiliates have no relationship with Good Steward other than those discussed above. The Company’s operating lease cost for the three and nine months ended September 30, 2017 as a result of the transactions discussed above was $112 thousand and $150 thousand, respectively. All other operating leases the Company has were evaluated and determined that they are immaterial to the financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events
SUBSEQUENT EVENTS:	NOTE 12 SUBSEQUENT EVENTS: During the month of October 2017, a principal shareholder of the Company exercised 506,666 common stock warrants at a price of $1.75 per share. As a result of this exercise an additional $887 thousand of capital was raised by the Company. The additional liquidity provided by the funds will be used by the Company to pay its operating expenses and trust preferred interest payments. On October 23, 2017, the Board of Directors approved for the Bank to pay the Company a dividend of $111 thousand using 68,735 shares of the Company’s common stock that had been repossessed by the Bank as a result of collection activities on loans. By law the 68,735 shares of the Company’s common stock became part of the Company’s authorized and unissued shares and would be available for reissuance in the future.

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	NOTE 13 RECENT ACCOUNTING DEVELOPMENTS: The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues will not be affected. The Company is currently assessing our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies will not change materially since the principles of revenue recognition from the ASU are largely consistent with existing guidance and current practices applied by our businesses. We have not identified material changes to the timing or amount of revenue recognition. Based on the updated guidance, we do anticipate changes in our disclosures associated with our revenues. We will provide qualitative disclosures of our performance obligations related to our revenue recognition and we continue to evaluate disaggregation for significant categories of revenue in the scope of the guidance. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“ASC”), to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option. We are evaluating the impact of the ASU on our consolidated financial position, results of operations, and cash flows. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the Accounting Standards Codification. The ASU incorporates into the Accounting Standards Codification recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In February 2017, the FASB amended the Other Income Topic of the ASC to clarify the scope of the guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

ACCOUNTING PRINCIPLES (Policies

ACCOUNTING PRINCIPLES (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
ACCOUNTING PRINCIPLES	ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2017 and December 31, 2016, and the results of operations for the three and nine month periods ended September 30, 2017 and 2016. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine month periods ended September 30, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
Income Per Share
Schedule of anti-dilutive income per common share	Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the nine months 2017 2016 2017 2016 Net income $ 484 $ 346 $ 3,176 $ 1,926 Weighted average shares outstanding 23,355,580 23,354,111 23,355,611 23,354,092 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,355,580 23,354,111 23,355,611 23,354,092 Basic and diluted income per share $ 0.02 $ 0.01 $ 0.14 $ 0.08

CAPITAL (Tables)

CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2017
Capital [Abstract]
Schedule of capital requirements	These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 70,084 15.96 % $ 35,119 8.0 % $ 43,899 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,590 14.71 % 26,339 6.0 % 35,119 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,590 9.84 % 26,249 4.0 % 32,811 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,590 14.71 % 19,754 4.5 % 28,534 6.5 % December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 67,549 16.64 % $ 32,476 8.0 % $ 40,595 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 24,357 6.0 % 32,476 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93 % 25,149 4.0 % 31,436 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 18,268 4.5 % 26,386 6.5 %

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2017
Investment Securities Activity
Schedule of securities' amortized cost and estimated fair value	The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2017 U.S. Government Agencies $ 24,363 $ 103 $ 155 $ 24,311 Taxable municipals 2,318 7 32 2,293 Corporate bonds 3,906 191 - 4,097 Mortgage backed securities 37,944 23 437 37,530 Total Securities AFS $ 68,531 $ 324 $ 624 $ 68,231 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011
Schedule of fair value and gross unrealized losses on investment securities in a continuous unrealized loss position	This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2017 U.S. Government Agencies $ 12,043 $ 134 $ 1,681 $ 21 $ 13,724 $ 155 Taxable municipals 1,055 28 262 4 1,317 32 Corporate bonds — — — — — — Mtg. backed securities 21,749 230 9,980 207 31,729 437 Total Securities AFS $ 34,847 $ 392 $ 11,923 $ 232 $ 46,770 $ 624 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 — — 1,561 50 Corporate bonds 500 — — — 500 — Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947
Schedule of gross realized gains and losses	Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the nine months (Dollars are in thousands) 2017 2016 2017 2016 Gross gains realized $ 30 $ — $ 30 $ 275 Gross losses realized (30 ) — (30 ) (35 ) Net realized gains $ — $ — $ — $ 240
Schedule of amortized cost and fair value of investment securities' contractual maturity	The amortized cost and fair value of investment securities at September 30, 2017, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 11 $ 11 1.57% Due after one year through five years 3,636 3,622 2.03% Due after five years through ten years 14,853 14,977 3.03% Due after ten years 50,031 49,621 2.14% Total $ 68,531 $ 68,231 2.32%

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]
Summary of loans receivable outstanding	Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2017 December 31, 2016 Real estate secured: Commercial $ 114,880 $ 103,331 Construction and land development 30,878 25,755 Residential 1-4 family 254,234 249,700 Multifamily 14,790 12,582 Farmland 23,287 24,948 Total real estate loans 438,069 416,316 Commercial 36,382 26,955 Agriculture 3,733 3,164 Consumer installment loans 22,519 22,188 All other loans 687 6 Total loans $ 501,390 $ 468,629
Summary of loans receivable on nonaccrual status	Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2017 December 31, 2016 Real estate secured: Commercial $ 2,040 $ 3,403 Construction and land development 274 319 Residential 1-4 family 6,640 8,355 Multifamily 155 166 Farmland 1,062 1,003 Total real estate loans 10,171 13,246 Agriculture 7 83 Consumer installment loans 45 76 Total loans receivable on nonaccrual status $ 10,223 $ 13,405
Summary of impaired loans	The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2017 and December 31, 2016: As of September 30, 2017 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,497 $ 2,581 $ — Construction and land development — — — Residential 1-4 family 3,813 4,112 — Multifamily 285 326 — Farmland 1,501 1,884 — Commercial — — — Agriculture 18 18 — Consumer installment loans 8 8 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,322 2,420 339 Construction and land development 202 447 69 Residential 1-4 family 564 593 104 Multifamily 1,310 1,377 194 Farmland 609 621 245 Commercial 496 496 181 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 13,625 $ 14,883 $ 1,132 As of December 31, 2016 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 3,636 $ 4,055 $ — Construction and land development 5 5 — Residential 1-4 family 3,861 4,182 — Multifamily 301 342 — Farmland 3,895 4,601 — Commercial — — — Agriculture 19 19 — Consumer installment loans 26 43 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,191 1,270 65 Construction and land development 240 469 106 Residential 1-4 family 555 565 56 Multifamily — — — Farmland 591 602 299 Commercial 67 67 18 Agriculture 5 5 5 Consumer installment loans 9 9 3 All other loans — — — Total $ 14,401 $ 16,234 $ 552
Summary of average impaired loans	The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2017 September 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,976 $ 73 $ 4,222 $ 77 Construction and land development 2 — 89 — Residential 1-4 family 3,827 152 3,716 140 Multifamily 402 15 288 14 Farmland 2,538 52 4,211 163 Commercial — — — — Agriculture 19 1 29 2 Consumer installment loans 13 — 24 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,208 80 1,539 6 Construction and land development 222 — 271 — Residential 1-4 family 634 14 939 18 Multifamily 660 48 100 — Farmland 673 26 572 18 Commercial 282 24 71 2 Agriculture 2 — 107 1 Consumer installment loans 2 — 30 1 All other loans — — — — Total $ 13,460 $ 485 $ 16,208 $ 442 Three Months Ended September 30, 2017 September 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,757 $ 9 $ 3,965 $ 4 Construction and land development — — 7 — Residential 1-4 family 3,833 50 3,833 37 Multifamily 287 4 307 3 Farmland 1,193 26 4,274 61 Commercial — — — — Agriculture 18 — 23 — Consumer installment loans 9 — 22 (2 ) All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,516 74 1,309 6 Construction and land development 209 — 259 — Residential 1-4 family 567 5 606 7 Multifamily 1,321 16 83 (4 ) Farmland 756 10 504 6 Commercial 497 8 68 — Agriculture — — 97 3 Consumer installment loans — — 32 1 All other loans — — — — Total $ 12,963 $ 202 $ 15,389 $ 122
Summary of age analysis of past due loans receivable	An age analysis of past due loans receivable is below. At September 30, 2017 and December 31, 2016, there were no loans over 90 days past due that were accruing. As of September 30, 2017 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 203 $ 530 $ 528 $ 1,261 $ 113,619 $ 114,880 Construction and land development 19 — 43 62 30,816 30,878 Residential 1-4 family 3,523 1,076 1,121 5,720 248,514 254,234 Multifamily — — — — 14,790 14,790 Farmland 55 — 284 339 22,948 23,287 Total real estate loans 3,800 1,606 1,976 7,382 430,687 438,069 Commercial 127 — — 127 36,255 36,382 Agriculture 1 — 4 5 3,728 3,733 Consumer installment Loans 66 1 20 87 22,432 22,519 All other loans — — — — 687 687 Total loans $ 3,994 $ 1,607 $ 2,000 $ 7,601 $ 493,789 $ 501,390 As of December 31, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 — — 1,367 11,215 12,582 Farmland 2,987 — — 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 — — 20 26,935 26,955 Agriculture 19 — 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans — — — — 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629
Summary of risk category of loans receivable	Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 106,115 $ 4,772 $ 3,993 $ 114,880 Construction and land development 29,757 847 274 30,878 Residential 1-4 family 244,924 1,971 7,339 254,234 Multifamily 12,977 157 1,656 14,790 Farmland 19,491 2,049 1,747 23,287 Total real estate loans 413,264 9,796 15,009 438,069 Commercial 33,665 2,221 496 36,382 Agriculture 3,700 26 7 3,733 Consumer installment loans 22,459 3 57 22,519 All other loans 687 — — 687 Total $ 473,775 $ 12,046 $ 15,569 $ 501,390 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 — 88 3,164 Consumer installment loans 22,086 — 102 22,188 All other loans 6 — — 6 Total $ 436,150 $ 14,173 18,306 $ 468,629

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Summary of activity in the allowance for loan losses by portfolio segment	The following table details activity in the allowance for loan losses by portfolio segment for the period ended September 30, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of September 30, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179 ) $ 191 $ (58 ) $ 1,579 Construction and land development 346 — — (53 ) 293 Residential 1-4 family 2,376 (369 ) 39 48 2,094 Multifamily 241 — — 181 422 Farmland 428 (49 ) 358 (309 ) 428 Total real estate loans 5,016 (597 ) 588 (191 ) 4,816 Commercial 163 (11 ) 147 127 426 Agriculture 31 — 4 (10 ) 25 Consumer installment loans 123 (134 ) 17 160 166 All other loans — — — 4 4 Unallocated 739 — — (90 ) 649 Total $ 6,072 $ (742 ) $ 756 $ — $ 6,086 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 339 $ 1,240 $ 1,579 $ 4,819 $ 110,061 $ 114,880 Construction and land development 69 224 293 202 30,676 30,878 Residential 1-4 family 104 1,990 2,094 4,377 249,857 254,234 Multifamily 194 228 422 1,595 13,195 14,790 Farmland 245 183 428 2,110 21,177 23,287 Total real estate loans 951 3,865 4,816 13,103 424,966 438,069 Commercial 181 245 426 496 35,886 36,382 Agriculture - 25 25 18 3,715 3,733 Consumer installment loans - 166 166 8 22,511 22,519 All other loans - 4 4 - 687 687 Unallocated - 649 649 - - - Total $ 1,132 $ 4,954 $ 6,086 $ 13,625 $ 487,765 $ 501,390
Schedule of allocation of portion of allowance	The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557 ) $ 220 $ (422 ) $ 1,625 Construction and land development 332 (5 ) 26 (7 ) 346 Residential 1-4 family 2,437 (720 ) 87 572 2,376 Multifamily 232 (18 ) — 27 241 Farmland 675 (2 ) 103 (348 ) 428 Total real estate loans 6,060 (1,302 ) 436 (178 ) 5,016 Commercial 266 (65 ) 62 (100 ) 163 Agriculture 124 — 7 (100 ) 31 Consumer installment loans 128 (83 ) 24 54 123 All other loans 1 — — (1 ) — Unallocated 914 — — (175 ) 739 Total $ 7,493 $ (1,450 ) $ 529 $ (500 ) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629

TROUBLED DEBT RESTRUCTURING (Ta

TROUBLED DEBT RESTRUCTURING (Tables)	9 Months Ended
	Sep. 30, 2017
Troubled Debt Restructurings
Schedule of loans modified as troubled debt restructurings	The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2017 and 2016. For the nine months ended September 30, 2017 For the nine months ended September 30, 2016 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — 1 $ 341 $ 341 Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 280 Total real estate loans — — — 2 632 621 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 2 $ 632 $ 621

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of other real estate	The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2017 and the year ended December 31, 2016: (Dollars are in thousands) September 30, December 31, 2016 Balance, beginning of period $ 10,655 $ 12,398 Additions 2,761 4,577 Purchases of/improvements to — 48 Transfers of premises and equipment 125 — Transfers of other real estate owned — (125 ) Proceeds from sales of (4,145 ) (4,232 ) Proceeds from insurance claims (12 ) — Loans made to finance sales of (1,225 ) (818 ) Adjustment of carrying value (668 ) (1,414 ) Deferred gain from sales 44 — Gain (loss) from sales (29 ) 221 Balance, end of period $ 7,506 $ 10,655

FAIR VALUES (Tables)

FAIR VALUES (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of assets and liabilities measured at fair value	Assets and liabilities measured at fair value are as follows as of September 30, 2017 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 24,311 $ — Taxable municipals — 2,293 — Corporate bonds — 4,097 — Mortgage backed securities — 37,530 — (On a non-recurring basis) — — 7,506 Impaired loans: Real estate secured: Commercial — — 4,480 Construction and land development — — 133 Residential 1-4 family — — 4,273 Multifamily — — 1,401 Farmland — — 1,865 Commercial — — 315 Agriculture — — 18 Consumer installment loans — — 8 All other loans — — — Total $ — $ 68,231 $ 19,999 Assets and liabilities measured at fair value are as follows as of December 31, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 24,632 $ — Taxable municipals — 2,292 — Corporate bonds — 3,749 — Mortgage backed securities — 39,338 — (On a non-recurring basis) — — 10,655 Impaired loans: Real estate secured: Commercial — — 4,762 Construction and land development — — 139 Residential 1-4 family — — 4,360 Multifamily — — 301 Farmland — — 4,187 Commercial — — 49 Agriculture — — 19 Consumer installment loans — — 32 All other loans — — — Total $ — $ 70,011 $ 24,504
Schedule of significant unobservable inputs in level 3 assets	For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2017 Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 12,493 $ 13,849 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 7,506 $ 10,655 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18%
Estimated fair value of financial instruments	The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2017 and December 31, 2016. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2017 Financial Instruments – Assets Net Loans $ 495,304 $ 497,359 $ — $ 484,866 $ 12,493 Financial Instruments – Liabilities Time Deposits 267,283 266,990 — 266,990 — FHLB Advances 7,858 8,053 — 8,053 — December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ — $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 — 247,258 — FHLB Advances 13,758 13,993 — 13,993 —

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Net income	$ 484	$ 346	$ 3,176	$ 1,926
Weighted average shares outstanding	23,355,580	23,354,111	23,355,611	23,354,092
Weighted average dilutive shares outstanding	23,355,580	23,354,111	23,355,611	23,354,092
Basic and diluted income per share	$ 0.02	$ 0.01	$ 0.14	$ 0.08

CAPITAL (Details)

CAPITAL (Details) - Bank - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Total Capital to Risk Weighted Assets, Actual, Amount	$ 70,084	$ 67,549
Total Capital to Risk Weighted Assets, Actual, Ratio	15.96%	16.64%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 35,119	$ 32,476
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	8.00%	8.00%
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 43,899	$ 40,595
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount	$ 64,590	$ 62,462
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	14.71%	15.39%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 26,339	$ 24,357
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio	6.00%	6.00%
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 35,119	$ 32,476
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier 1 Capital to Average Assets, Actual, Amount	$ 64,590	$ 62,462
Tier 1 Capital to Average Assets, Actual, Ratio	9.84%	9.93%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 26,249	$ 25,149
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio	4.00%	4.00%
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 32,811	$ 31,436
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount	$ 64,590	$ 62,462
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	14.71%	15.39%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 19,754	$ 18,268
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 28,534	$ 26,386
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost	$ 68,531	$ 70,702
Gross Unrealized Gains	324	256
Gross Unrealized Losses	624	947
Approximate Fair Value	68,231	70,011
US Government Agencies
Amortized Cost	24,363	24,821
Gross Unrealized Gains	2,318	80
Gross Unrealized Losses	3,906	269
Approximate Fair Value	37,944	24,632
Taxable Municipals
Amortized Cost	103	2,340
Gross Unrealized Gains	7	2
Gross Unrealized Losses	191	50
Approximate Fair Value	23	2,292
Corporate Bonds
Amortized Cost	155	3,600
Gross Unrealized Gains	32	149
Gross Unrealized Losses
Approximate Fair Value	437	3,749
Mortgage Backed Securities
Amortized Cost	24,311	39,941
Gross Unrealized Gains	2,293	25
Gross Unrealized Losses	4,097	628
Approximate Fair Value	$ 37,530	$ 39,338

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Less than 12 Months	$ 37,284	$ 42,822
Unrealized Losses, Less than 12 Months	419	843
Fair Value, 12 Months or More	8,527	7,104
Unrealized Losses, 12 Months or More	134	104
Fair Value, Total	45,811	49,926
Unrealized Losses, Total	553	947
US Government Agencies
Fair Value, Less than 12 Months	12,043	12,081
Unrealized Losses, Less than 12 Months	134	250
Fair Value, 12 Months or More	1,681	2,449
Unrealized Losses, 12 Months or More	21	19
Fair Value, Total	13,724	14,530
Unrealized Losses, Total	155	269
Taxable Municipals
Fair Value, Less than 12 Months	1,055	1,561
Unrealized Losses, Less than 12 Months	28	50
Fair Value, 12 Months or More	262
Unrealized Losses, 12 Months or More	4
Fair Value, Total	1,317	1,561
Unrealized Losses, Total	32	50
Mortgage Backed Securities
Fair Value, Less than 12 Months	21,749	28,680
Unrealized Losses, Less than 12 Months	230	543
Fair Value, 12 Months or More	9,980	4,655
Unrealized Losses, 12 Months or More	207	85
Fair Value, Total	31,729	33,335
Unrealized Losses, Total	$ 437	628
Corporate Bonds
Fair Value, Less than 12 Months		500
Fair Value, Total		$ 500

INVESTMENT SECURITIES (Detail34

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment Securities Activity
Gross gains realized	$ 30		$ 30	$ 275
Gross losses realized	$ (30)		(30)	(35)
Net realized gains				$ 240

INVESTMENT SECURITIES (Detail35

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Investment Securities Activity
Due in one year or less, Amortized Cost	$ 11
Due after one year through five years, Amortized Cost	3,636
Due after five years through ten years, Amortized Cost	14,853
Due after ten years, Amortized Cost	50,031
Amortized Cost, Total	68,531	$ 70,702
Due in one year or less, Fair Value	11
Due after one year through five years, Fair Value	3,622
Due after five years through ten years, Fair Value	14,977
Due after ten years, Fair Value	49,621
Approximate Fair Value	$ 68,231	$ 70,011
Due in one year or less, Weighted Average Yield	1.57%
Due after one year through five years, Weighted Average Yield	2.03%	1.85%
Due after five years through ten years, Weighted Average Yield	3.03%
Due after ten years, Weighted Average Yield	2.14%
Weighted Average Yield, Total	2.32%

LOANS_(Details)

LOANS:(Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Total loans and leases	$ 501,390	$ 468,629
Real Estate [Member]
Total loans and leases	438,069	416,316
Commercial
Total loans and leases		26,955
Commercial | Real Estate [Member]
Total loans and leases	114,880	103,331
Construction and Land Development | Real Estate [Member]
Total loans and leases	30,878	25,755
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	254,234	249,700
Multifamily | Real Estate [Member]
Total loans and leases	14,790	12,582
Farmland | Real Estate [Member]
Total loans and leases	23,287	24,948
Commercial Real Estate [Member]
Total loans and leases	36,382	26,955
Agriculture
Total loans and leases	3,733	3,164
Consumer Installment Loans
Total loans and leases	22,519	22,188
Other Loans
Total loans and leases	$ 687	$ 6

LOANS_ (Details 1)

LOANS: (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Total loans receivable on nonaccrual status	$ 10,223	$ 13,405
Real Estate [Member]
Total loans receivable on nonaccrual status	10,171	13,246
Commercial
Total loans receivable on nonaccrual status			$ 11
Commercial | Real Estate [Member]
Total loans receivable on nonaccrual status	2,040	3,403
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	274	319
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	6,640	8,355
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	155	166
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	1,062	1,003
Agriculture
Total loans receivable on nonaccrual status	7	83
Consumer Installment Loans
Total loans receivable on nonaccrual status	$ 45	$ 76

LOANS_ (Details 2)

LOANS: (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Recorded Investment	$ 13,625	$ 14,401
Unpaid Principal Balance	14,883	16,234
Related Allowance	1,132	552
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	18	19
Unpaid Principal Balance	18	19
Related Allowance
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment		5
Unpaid Principal Balance		5
Related Allowance		5
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	8	26
Unpaid Principal Balance	8	43
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment		9
Unpaid Principal Balance		9
Related Allowance		3
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	496	67
Unpaid Principal Balance	496	67
Related Allowance	181	18
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	2,497	3,636
Unpaid Principal Balance	2,581	4,055
Related Allowance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	2,322	1,191
Unpaid Principal Balance	2,420	1,270
Related Allowance	339	65
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment		5
Unpaid Principal Balance		5
Related Allowance
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	202	240
Unpaid Principal Balance	447	469
Related Allowance	69	106
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	3,813	3,861
Unpaid Principal Balance	4,112	4,182
Related Allowance
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	564	555
Unpaid Principal Balance	593	565
Related Allowance	104	56
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	285	301
Unpaid Principal Balance	326	342
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	1,310
Unpaid Principal Balance	1,377
Related Allowance	194
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	1,501	3,895
Unpaid Principal Balance	1,884	4,601
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	609	591
Unpaid Principal Balance	621	602
Related Allowance	$ 245	$ 299

LOANS_ (Details 3)

LOANS: (Details 3) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Impaired loans without a valuation allowance:
Average Recorded Investment	$ 12,963	$ 13,460
Interest Income Recognized	202	485
Impaired loans with valuation allowance:
Average Recorded Investment	15,389	16,208
Interest Income Recognized	122	442
Impaired Financing Receivables With No Related Allowance [Member] | Agriculture
Impaired loans without a valuation allowance:
Average Recorded Investment	18	19
Interest Income Recognized		1
Impaired loans with valuation allowance:
Average Recorded Investment	23	29
Interest Income Recognized		2
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans
Impaired loans without a valuation allowance:
Average Recorded Investment	9	13
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	22	24
Interest Income Recognized	(2)
Impaired Financing Receivables With Related Allowance [Member] | Agriculture
Impaired loans without a valuation allowance:
Average Recorded Investment		2
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	97	107
Interest Income Recognized	3	(1)
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans
Impaired loans without a valuation allowance:
Average Recorded Investment		2
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	32	30
Interest Income Recognized	1	1
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	497	282
Interest Income Recognized	8	24
Impaired loans with valuation allowance:
Average Recorded Investment	68	71
Interest Income Recognized		2
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	2,757	2,976
Interest Income Recognized	9	73
Impaired loans with valuation allowance:
Average Recorded Investment	3,965	4,222
Interest Income Recognized	4	77
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	1,516	1,208
Interest Income Recognized	74	80
Impaired loans with valuation allowance:
Average Recorded Investment	1,309	1,539
Interest Income Recognized	6	6
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		2
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	7	89
Interest Income Recognized
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	209	222
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	259	271
Interest Income Recognized
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	3,833	3,827
Interest Income Recognized	50	152
Impaired loans with valuation allowance:
Average Recorded Investment	3,833	3,716
Interest Income Recognized	37	140
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	567	634
Interest Income Recognized	5	14
Impaired loans with valuation allowance:
Average Recorded Investment	606	939
Interest Income Recognized	7	18
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	287	402
Interest Income Recognized	4	15
Impaired loans with valuation allowance:
Average Recorded Investment	307	282
Interest Income Recognized	3	11
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	1,321	660
Interest Income Recognized	16	48
Impaired loans with valuation allowance:
Average Recorded Investment	83	100
Interest Income Recognized	(4)
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	1,193	2,538
Interest Income Recognized	26	52
Impaired loans with valuation allowance:
Average Recorded Investment	4,274	4,211
Interest Income Recognized	61	163
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	756	673
Interest Income Recognized	10	26
Impaired loans with valuation allowance:
Average Recorded Investment	504	572
Interest Income Recognized	$ 6	$ 18

LOANS_ (Details 4)

LOANS: (Details 4) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Loans 30-59 Days Past Due	$ 3,994	$ 10,519
Loans 60-89 Days Past Due	1,607	1,886
Loans 90 or More Days Past Due	2,000	3,474
Total Past Due Loans	7,601	15,879
Current Loans	493,789	452,750
Total loans and leases	501,390	468,629
Real Estate [Member]
Loans 30-59 Days Past Due	3,800	10,370
Loans 60-89 Days Past Due	1,606	1,871
Loans 90 or More Days Past Due	1,976	3,360
Total Past Due Loans	7,382	15,601
Current Loans	430,687	400,715
Total loans and leases	438,069	416,316
Commercial
Loans 30-59 Days Past Due		20
Total Past Due Loans		20
Current Loans		26,935
Total loans and leases		26,955
Commercial | Real Estate [Member]
Loans 30-59 Days Past Due	203	1,676
Loans 60-89 Days Past Due	530	307
Loans 90 or More Days Past Due	528	1,083
Total Past Due Loans	1,261	3,066
Current Loans	113,619	100,265
Total loans and leases	114,880	103,331
Construction and Land Development | Real Estate [Member]
Loans 30-59 Days Past Due	19	103
Loans 60-89 Days Past Due		17
Loans 90 or More Days Past Due	43	44
Total Past Due Loans	62	164
Current Loans	30,816	25,591
Total loans and leases	30,878	25,755
Residential 1-4 Family | Real Estate [Member]
Loans 30-59 Days Past Due	3,523	4,237
Loans 60-89 Days Past Due	1,076	1,547
Loans 90 or More Days Past Due	1,121	2,233
Total Past Due Loans	5,720	8,017
Current Loans	248,514	241,683
Total loans and leases	254,234	249,700
Multifamily | Real Estate [Member]
Loans 30-59 Days Past Due		1,367
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans		1,367
Current Loans	14,790	11,215
Total loans and leases	14,790	12,582
Farmland | Real Estate [Member]
Loans 30-59 Days Past Due	55	2,987
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	284
Total Past Due Loans	339	2,987
Current Loans	22,948	21,961
Total loans and leases	23,287	24,948
Commercial Real Estate [Member]
Loans 30-59 Days Past Due	127	20
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans	127	20
Current Loans	36,255	26,935
Total loans and leases	36,382	26,955
Agriculture
Loans 30-59 Days Past Due	1	19
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	4	78
Total Past Due Loans	5	97
Current Loans	3,728	3,067
Total loans and leases	3,733	3,164
Consumer Installment Loans
Loans 30-59 Days Past Due	66	110
Loans 60-89 Days Past Due	1	15
Loans 90 or More Days Past Due	20	36
Total Past Due Loans	87	161
Current Loans	22,432	22,027
Total loans and leases	22,519	22,188
Other Loans
Loans 30-59 Days Past Due
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans
Current Loans	687	6
Total loans and leases	$ 687	$ 6

LOANS_ (Details 5)

LOANS: (Details 5) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Total	$ 501,390	$ 468,629
Real Estate [Member]
Total	438,069	416,316
Pass
Total	473,775	436,150
Special Mention
Total	12,046	14,173
Substandard
Total	15,569	18,306
Real Estate [Member] | Pass
Total	413,264	384,785
Real Estate [Member] | Special Mention
Total	9,796	13,482
Real Estate [Member] | Substandard
Total	15,009	18,049
Commercial Portfolio Segment [Member] | Pass
Total	33,665	26,197
Commercial Portfolio Segment [Member] | Special Mention
Total	2,221	691
Commercial Portfolio Segment [Member] | Substandard
Total	496	67
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	106,115	92,562
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	4,772	6,922
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	3,993	3,847
Construction and Land Development | Real Estate [Member]
Total	30,878	25,755
Construction and Land Development | Real Estate [Member] | Pass
Total	29,757	23,905
Construction and Land Development | Real Estate [Member] | Special Mention
Total	847	1,531
Construction and Land Development | Real Estate [Member] | Substandard
Total	274	319
Residential 1-4 Family | Real Estate [Member]
Total	254,234	249,700
Residential 1-4 Family | Real Estate [Member] | Pass
Total	244,924	238,400
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	1,971	2,117
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	7,339	9,183
Multifamily | Real Estate [Member]
Total	14,790	12,582
Multifamily | Real Estate [Member] | Pass
Total	12,977	10,848
Multifamily | Real Estate [Member] | Special Mention
Total	157	1,367
Multifamily | Real Estate [Member] | Substandard
Total	1,656	367
Farmland | Real Estate [Member]
Total	23,287	24,948
Farmland | Real Estate [Member] | Pass
Total	19,491	19,070
Farmland | Real Estate [Member] | Special Mention
Total	2,049	1,545
Farmland | Real Estate [Member] | Substandard
Total	1,747	4,333
Agriculture
Total	3,733	3,164
Agriculture | Pass
Total	3,700	3,076
Agriculture | Special Mention
Total	26
Agriculture | Substandard
Total	7	88
Consumer Installment Loans
Total	22,519	22,188
Consumer Installment Loans | Pass
Total	22,459	22,086
Consumer Installment Loans | Special Mention
Total	3
Consumer Installment Loans | Substandard
Total	57	102
Other Loans
Total	687	6
Other Loans | Pass
Total	687	6
Commercial
Total		26,955
Commercial | Real Estate [Member]
Total	114,880	103,331
Commercial Real Estate [Member]
Total	$ 36,382	$ 26,955

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Balance, beginning of year	$ 6,072	$ 7,493	$ 7,493
Charge Offs	(742)		(1,450)
Recoveries	756		529
Provision for loan losses		(500)	(500)
Balance, End of period	6,086		6,072
Commercial Real Estate [Member]
Balance, beginning of year	163	266	266
Charge Offs	(11)		(65)
Recoveries	147		62
Provision for loan losses	127		(100)
Balance, End of period	426		163
Agriculture
Balance, beginning of year	31	124	124
Charge Offs
Recoveries	4		7
Provision for loan losses	(10)		(100)
Balance, End of period	25		31
Consumer Installment Loans
Balance, beginning of year	123	128	128
Charge Offs	(134)		(83)
Recoveries	17		24
Provision for loan losses	160		54
Balance, End of period	166		123
Other Loans
Balance, beginning of year		1	1
Charge Offs
Recoveries
Provision for loan losses	4		(1)
Balance, End of period	4
Unallocated
Balance, beginning of year	739	914	914
Charge Offs
Recoveries
Provision for loan losses	(90)		(175)
Balance, End of period	649		739
Real Estate [Member]
Balance, beginning of year	5,016	6,060	6,060
Charge Offs	(597)		(1,302)
Recoveries	588		436
Provision for loan losses	(191)		(178)
Balance, End of period	4,816		5,016
Real Estate [Member] | Commercial Real Estate [Member]
Balance, beginning of year	1,625	2,384	2,384
Charge Offs	(179)		(557)
Recoveries	191		220
Provision for loan losses	(58)		(422)
Balance, End of period	1,579		1,625
Real Estate [Member] | Construction and Land Development
Balance, beginning of year	346	332	332
Charge Offs			(5)
Recoveries			26
Provision for loan losses	(53)		(7)
Balance, End of period	293		346
Real Estate [Member] | Residential 1-4 Family
Balance, beginning of year	2,376	2,437	2,437
Charge Offs	(369)		(720)
Recoveries	39		87
Provision for loan losses	48		572
Balance, End of period	2,094		2,376
Real Estate [Member] | Multifamily
Balance, beginning of year	241	232	232
Charge Offs			(18)
Recoveries
Provision for loan losses	181		27
Balance, End of period	422		241
Real Estate [Member] | Farmland
Balance, beginning of year	428	$ 675	675
Charge Offs	(49)		(2)
Recoveries	358		103
Provision for loan losses	(309)		(348)
Balance, End of period	$ 428		$ 428

ALLOWANCE FOR LOAN LOSSES (De43

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 1,132	$ 552
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,954	5,520
Allowance for Loan Losses, Total	6,086	6,072	$ 7,493
Recorded Investment in Loans, Individually Evaluated for Impairment	13,625	14,401
Recorded Investment in Loans, Collectively Evaluated for Impairment	487,765	454,228
Recorded Investment in Loans, Total	501,390	468,629
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	951	526
Allowance for Loan Losses, Collectively Evaluated for Impairment	3,865	4,490
Allowance for Loan Losses, Total	4,816	5,016
Recorded Investment in Loans, Individually Evaluated for Impairment	13,103	14,275
Recorded Investment in Loans, Collectively Evaluated for Impairment	424,966	402,041
Recorded Investment in Loans, Total	438,069	416,316
Commercial
Recorded Investment in Loans, Total		26,955
Commercial | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	339	65
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,240	1,560
Allowance for Loan Losses, Total	1,579	1,625
Recorded Investment in Loans, Individually Evaluated for Impairment	4,819	4,827
Recorded Investment in Loans, Collectively Evaluated for Impairment	110,061	98,504
Recorded Investment in Loans, Total	114,880	103,331
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	69	106
Allowance for Loan Losses, Collectively Evaluated for Impairment	224	240
Allowance for Loan Losses, Total	293	346
Recorded Investment in Loans, Individually Evaluated for Impairment	202	245
Recorded Investment in Loans, Collectively Evaluated for Impairment	30,676	25,510
Recorded Investment in Loans, Total	30,878	25,755
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	104	56
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,990	2,320
Allowance for Loan Losses, Total	2,094	2,376
Recorded Investment in Loans, Individually Evaluated for Impairment	4,377	4,416
Recorded Investment in Loans, Collectively Evaluated for Impairment	249,857	245,284
Recorded Investment in Loans, Total	254,234	249,700
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	194
Allowance for Loan Losses, Collectively Evaluated for Impairment	228	241
Allowance for Loan Losses, Total	422	241
Recorded Investment in Loans, Individually Evaluated for Impairment	1,595	301
Recorded Investment in Loans, Collectively Evaluated for Impairment	13,195	12,281
Recorded Investment in Loans, Total	14,790	12,582
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	245	299
Allowance for Loan Losses, Collectively Evaluated for Impairment	183	129
Allowance for Loan Losses, Total	428	428
Recorded Investment in Loans, Individually Evaluated for Impairment	2,110	4,486
Recorded Investment in Loans, Collectively Evaluated for Impairment	21,177	20,462
Recorded Investment in Loans, Total	23,287	24,948
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	181	18
Allowance for Loan Losses, Collectively Evaluated for Impairment	245	145
Allowance for Loan Losses, Total	426	163	266
Recorded Investment in Loans, Individually Evaluated for Impairment	496	67
Recorded Investment in Loans, Collectively Evaluated for Impairment	35,886	26,888
Recorded Investment in Loans, Total	36,382	26,955
Agriculture
Allowance for Loan Losses, Individually Evaluated for Impairment		5
Allowance for Loan Losses, Collectively Evaluated for Impairment	25	26
Allowance for Loan Losses, Total	25	31	124
Recorded Investment in Loans, Individually Evaluated for Impairment	18	24
Recorded Investment in Loans, Collectively Evaluated for Impairment	3,715	3,140
Recorded Investment in Loans, Total	3,733	3,164
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment		3
Allowance for Loan Losses, Collectively Evaluated for Impairment	166	120
Allowance for Loan Losses, Total	166	123	128
Recorded Investment in Loans, Individually Evaluated for Impairment	8	35
Recorded Investment in Loans, Collectively Evaluated for Impairment	22,511	22,153
Recorded Investment in Loans, Total	22,519	22,188
Other Loans
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	4
Allowance for Loan Losses, Total	4		1
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	687	6
Recorded Investment in Loans, Total	687	6
Unallocated
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	649	739
Allowance for Loan Losses, Total	649	739	$ 914
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment
Recorded Investment in Loans, Total

TROUBLED DEBT RESTRUCTURINGS (D

TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)Loan	Sep. 30, 2016USD ($)Loan
# of Loans | Loan			1	2
Pre-Mod. Recorded Investment			$ 443	$ 632
Post-Mod. Recorded Investment			$ 443	$ 621
Real Estate [Member]
# of Loans | Loan				2
Pre-Mod. Recorded Investment				$ 632
Post-Mod. Recorded Investment				$ 621
Real Estate [Member] | Commercial Real Estate [Member]
# of Loans | Loan				1
Pre-Mod. Recorded Investment				$ 341
Post-Mod. Recorded Investment				$ 341
Real Estate [Member] | Farmland
# of Loans | Loan				1
Pre-Mod. Recorded Investment				$ 291
Post-Mod. Recorded Investment				$ 280
Commercial Real Estate [Member]
# of Loans | Loan			1
Pre-Mod. Recorded Investment			$ 443
Post-Mod. Recorded Investment			$ 443

TROUBLED DEBT RESTRUCTURINGS 45

TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Troubled Debt Restructurings
Total TDRs	$ 7,300	$ 9,600
Period loan is considered to be in default, days	90 days

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Balance, beginning of year	$ 10,655	$ 12,398
Additions	2,761	4,577
Purchases of other real estate owned		48
Transfers of premises and equipment to other real estate owned	(125)
Transfers of other real estate owned to premises and equipment		(125)
Proceeds from sales of other real estate owned	(4,145)	(4,232)
Proceeds from insurance claims on other real estate owned	(12)
Loans made to finance sales of other real estate owned	(1,225)	(818)
Adjustment of carrying value	(668)	(1,414)
Deferred gain from sales	44
Gain (loss) from sales	(29)	221
Balance, end of year	$ 7,506	$ 10,655

FAIR VALUES_ (Details)

FAIR VALUES: (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Inputs, Level 2 [Member]
Impaired Loans	$ 68,231	$ 70,011
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	7,506	10,655
Impaired Loans	19,999	24,504
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies
Available for sale investments	24,311	24,632
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | TaxableMunicipalsMember
Available for sale investments	2,293	2,292
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]
Available for sale investments	4,097	3,749
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities
Available for sale investments	37,530	39,338
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member]
Impaired Loans	315	49
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Consumer Installment Loans
Impaired Loans	8	32
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Agriculture
Impaired Loans	18	19
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Construction and Land Development
Impaired Loans	133	139
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Residential 1-4 Family
Impaired Loans	4,273	4,360
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Commercial Real Estate [Member]
Impaired Loans	4,480	4,762
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Multifamily
Impaired Loans	1,401	301
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Farmland
Impaired Loans	$ 1,865	$ 4,187

FAIR VALUES_ (Details 1)

FAIR VALUES: (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Impaired Loans
Fair Value at March 31, 2017	$ 12,493	$ 13,849
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell
Impaired Loans | Minimum [Member]
Significant Unobservable Input Value	0.00%
Impaired Loans | Maximum [Member]
Significant Unobservable Input Value	18.00%
Other Real Estate Owned
Fair Value at March 31, 2017	$ 7,506	$ 10,655
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Other Real Estate Owned | Minimum [Member]
Significant Unobservable Input Value	0.00%
Other Real Estate Owned | Maximum [Member]
Significant Unobservable Input Value	18.00%

FAIR VALUES_ (Details 2)

FAIR VALUES: (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Net Loans	$ 495,304	$ 462,557
Time deposits	267,283	247,819
Fair Value, Measurements, Recurring [Member]
Net Loans	497,359	467,707
Time deposits	266,990	247,258
FHLB advances	8,053	13,993
Fair Value, Inputs, Level 2 [Member]
Net Loans	484,866	453,858
Time deposits	266,990	247,258
FHLB advances	8,053	13,993
Fair Value, Inputs, Level 3 [Member]
Net Loans	12,493	13,849
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Net Loans	495,304	462,557
Time deposits	267,283	247,819
FHLB advances	$ 7,858	$ 13,758