New Peoples Bankshares (NWPP) 10-Q 21 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 12, 2018
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	1,163,389
Document Type	10-Q
Trading Symbol	NWPP
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		23,922,086
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 6,458	$ 5,664
Interest-earning deposits with banks	65	43
Investments	408	350
Dividends on equity securities (restricted)	35	32
Total Interest and Dividend Income	6,966	6,089
INTEREST EXPENSE
Deposits	696	538
Borrowed funds	192	186
Total Interest Expense	888	724
NET INTEREST INCOME	6,078	5,365
PROVISION FOR LOAN LOSSES	63
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	6,015	5,365
NONINTEREST INCOME
Service charges and fees	1,522	1,496
Insurance and investment fees	74	52
Other noninterest income	154	166
Total Noninterest Income	1,750	1,714
NONINTEREST EXPENSES
Salaries and employee benefits	3,644	3,381
Occupancy and equipment expense	1,292	1,127
Data processing and telecommunications	604	553
Other operating expenses	2,099	1,917
Total Noninterest Expenses	7,639	6,978
INCOME BEFORE INCOME TAXES	126	101
INCOME TAX EXPENSE (BENEFIT)	46	(14)
NET INCOME	$ 80	$ 115
Income Per Share
Basic	$ 0	$ 0
Fully Diluted	$ 0	$ 0
Average Weighted Shares of Common Stock
Basic	23,922,086	23,354,890
Fully Diluted	23,922,086	23,354,890

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 80	$ 115
Investment Securities Activity
Unrealized gains (losses) arising during the period	(1,041)	89
Tax related to unrealized gains	220	(30)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(821)	59
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (741)	$ 174

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 16,461	$ 18,249
Interest-bearing deposits with banks	21,419	14,452
Federal funds sold	136	4
Total Cash and Cash Equivalents	38,016	32,705
Investment securities available-for-sale	67,033	71,088
Loans receivable	516,363	513,008
Allowance for loan losses	(5,702)	(6,196)
Net Loans	510,661	506,812
Bank premises and equipment, net	26,387	26,115
Other real estate owned	6,711	6,859
Accrued interest receivable	2,033	2,036
Deferred taxes, net	5,671	5,499
Right-of-use assets - operating leases	5,176	5,253
Other assets	9,882	10,333
Total Assets	671,570	666,700
Deposits:
Noninterest bearing	163,241	154,631
Interest-bearing	426,706	427,913
Total Deposits	589,947	582,544
Borrowed funds	23,754	24,054
Lease liabilities - operating leases	5,176	5,253
Accrued interest payable	455	426
Accrued expenses and other liabilities	2,006	3,450
Total Liabilities	621,338	615,727
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at March 31, 2018 and December 31, 2017	47,844	47,844
Additional paid-in-capital	14,570	14,570
Retained deficit	(10,767)	(10,847)
Accumulated other comprehensive loss	(1,415)	(594)
Total Stockholders' Equity	50,232	50,973
Total Liabilities and Stockholders' Equity	$ 671,570	$ 666,700

CONSOLIDATED BALANCE SHEETS (U5

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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	23,922,086	23,922,086
Common stock, outstanding	23,922,086	23,922,086

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Other Comprehensive Income / Loss	Total
Balance at beginning at Dec. 31, 2015	$ 46,709	$ 764	$ 13,965	$ (14,065)	$ (456)
Balance at beginning (in shares) at Dec. 31, 2015	23,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				115
Exercise of common stock warrants	$ 2	(1)
Exercise of common stock warrants (in shares)	1
Other comprehensive income, net of tax					59
Balance at end at Mar. 31, 2017	$ 46,711	$ 763	13,965	(13,950)	(397)
Balance at end (in shares) at Mar. 31, 2017	23,355
Balance at beginning at Dec. 31, 2017	$ 47,844		14,570	(10,847)	(594)	$ 50,973
Balance at beginning (in shares) at Dec. 31, 2017	23,922					23,922,086
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				80		$ 80
Other comprehensive income, net of tax					(821)	(821)
Balance at end at Mar. 31, 2018	$ 47,844		$ 14,570	$ (10,767)	$ (1,415)	$ 50,232
Balance at end (in shares) at Mar. 31, 2018	23,922					23,922,086

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 80	$ 115
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	63
Depreciation	645	638
Income on life insurance	(13)	(27)
Gain on sale of premises and equipment	(5)	(1)
Loss (gain) on sale of foreclosed assets	96	(24)
Adjustment of carrying value of foreclosed real estate	69	176
Accretion of bond premiums/discounts	169	201
Deferred income taxes	46
Net change in:
Interest receivable	3	114
Other assets	495	77
Accrued interest payable	29	11
Accrued expenses and other liabilities	(1,444)	60
Net Cash Provided by Operating Activities	233	1,340
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(4,668)	(8,777)
Purchase of securities available-for-sale		(6,564)
Proceeds from principal paydowns of securities available-for-sale	2,845	4,453
Net sale (purchase) of equity securities (restricted)	(29)	217
Payments for the purchase of premises and equipment	(917)	(593)
Proceeds from sale of premises and equipment	5	4
Proceeds from sales of other real estate owned	739	1,154
Net Cash Used In Investing Activities	(2,025)	(10,106)
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants		1
Net decrease in Federal Home Loan Bank advances	(300)	(5,300)
Increase in deposits	7,403	18,313
Net Cash Provided by Financing Activities	7,103	13,014
Net increase in cash and cash equivalents	5,311	4,248
Cash and Cash Equivalents, Beginning of Period	32,705	35,448
Cash and Cash Equivalents, End of Period	38,016	39,696
Supplemental Disclosure of Cash Paid During the Period for:
Interest	859	713
Taxes
Supplemental Disclosure of Non Cash Transactions:
Other real estate acquired in settlement of foreclosed loans	1,023	1,624
Loans made to finance sale of foreclosed real estate	267	812
Change in unrealized loss on securities available-for-sale	$ (1,041)	$ 89

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“New Peoples”) is a financial holding company whose principal activity is the ownership and management of a community bank, New Peoples Bank, Inc. (the “Bank”). The Bank is organized and incorporated under the laws of the Commonwealth of Virginia. 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 southwest Virginia, southern West Virginia, and northeastern Tennessee. These services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts.

ACCOUNTING PRINCIPLES

ACCOUNTING PRINCIPLES	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017, and the results of operations for the three-month periods ended March 31, 2018 and 2017. 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, 2017. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. 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	3 Months Ended
	Mar. 31, 2018
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. There were no potential common shares at March 31, 2018. For the three-months ended March 31, 2017, potential common shares consisted of 880,978 outstanding common stock warrants; however, the warrants 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 2018 2017 Net income $ 80 $ 115 Weighted average shares outstanding 23,922,086 23,354,890 Dilutive shares for stock warrants — — Weighted average dilutive shares outstanding 23,922,086 23,354,890 Basic income per share $ 0.00 $ 0.00 Diluted income per share $ 0.00 $ 0.00

CAPITAL

CAPITAL	3 Months Ended
	Mar. 31, 2018
Capital [Abstract]
CAPITAL	NOTE 4 CAPITAL: 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 ratios of Tier 1 and total capital as a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 1250%. Tier 1 capital consists of common stockholders’ equity, excluding the unrealized gain or loss on securities available-for-sale, minus certain intangible assets. Tier 2 capital consists of the allowance for loan losses subject to certain limitations. Total capital for purposes of computing the capital ratios consists of the sum of Tier 1 and Tier 2 capital. The Bank is also required to maintain capital at a minimum level based on quarterly average assets, which is known as the leverage ratio. 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 68,976 15.21% $ 36,273 8.0% $ 45,341 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,331 13.97% 27,205 6.0% 36,273 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,331 9.56% 26,505 4.0% 33,131 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,331 13.97% 20,403 4.5% 29,472 6.5% December 31, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 68,787 15.30% $ 35,970 8.0% $ 44,962 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05% 26,977 6.0% 35,970 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,160 9.56% 26,422 4.0% 33,028 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05% 20,233 4.5% 29,225 6.5% As of March 31, 2018, 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 will be gradually increased through January 1, 2019 to 2.5%. 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	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 U.S. Government Agencies $ 22,912 $ 55 $ (354) $ 22,613 Taxable municipals 4,457 - (165) 4,292 Corporate bonds 5,433 103 (130) 5,406 Mortgage backed securities 36,023 1 (1,302) 34,722 Total Securities AFS $ 68,825 $ 159 $ (1,951) $ 67,033 December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ (221) $ 23,844 Taxable municipals 4,466 9 (78) 4,397 Corporate bonds 5,437 168 (26) 5,579 Mortgage backed securities 37,950 3 (685) 37,268 Total Securities AFS $ 71,839 $ 259 $ (1,010) $ 71,088 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 March 31, 2018 and December 31, 2017. 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 March 31, 2018 U.S. Government Agencies $ 7,439 $ (128) $ 6,800 $ (226) $ 14,239 $ (354) Taxable municipals 3,545 (111) 746 (54) 4,291 (165) Corporate bonds 2,402 (130) - - 2,402 (130) Mtg. backed securities 14,603 (436) 20,009 (866) 34,612 (1,302) Total Securities AFS $ 27,989 $ (805) $ 27,555 $ (1,146) $ 55,544 $ (1,951) December 31, 2017 U.S. Government Agencies $ 7,840 $ (69) $ 7,189 $ (152) $ 15,029 $ (221) Taxable municipals 2,403 (44) 767 (34) 3,170 (78) Corporate bonds 1,507 (26) - - 1,507 (26) Mtg. backed securities 14,720 (145) 21,500 (540) 36,220 (685) Total Securities AFS $ 26,470 $ (284) $ 29,456 $ (726) $ 55,926 $ (1,010) At March 31, 2018, there were thirteen U.S. Government Agency securities, two taxable municipal securities, and fifty-nine mortgage backed securities that had been in a loss position for greater than twelve months. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. Management does not intend to sell, and it is not likely that the Bank will be required to sell any of the securities referenced in the table above before recovery of their amortized cost. There were no sales of investment securities during the three months ended March 31, 2018 or 2017. The amortized cost and fair value of investment securities at March 31, 2018, 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 $ 4 $ 4 1.63% Due after one year through five years 3,494 3,407 1.92% Due after five years through ten years 16,042 15,802 3.20% Due after ten years 49,285 47,820 2.31% Total $ 68,825 $ 67,033 2.49% Investment securities with a carrying value of $10.3 million and $11.0 million at March 31, 2018 and December 31, 2017, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. 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 as of March 31, 2018 and December 31, 2017.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
LOANS	NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2018 December 31, 2017 Real estate secured: Commercial $ 132,772 $ 127,688 Construction and land development 23,358 29,763 Residential 1-4 family 249,966 249,159 Multifamily 14,143 15,481 Farmland 24,803 22,998 Total real estate loans 445,042 445,089 Commercial 44,760 41,345 Agriculture 3,957 3,494 Consumer installment loans 21,952 22,411 All other loans 652 669 Total loans $ 516,363 $ 513,008 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2018 December 31, 2017 Real estate secured: Commercial $ 3,469 $ 2,035 Construction and land development 210 470 Residential 1-4 family 3,202 2,991 Multifamily 85 152 Farmland 827 800 Total real estate loans 7,793 6,448 Commercial 411 1,065 Agriculture 3 3 Consumer installment loans 20 48 Total loans receivable on nonaccrual status $ 8,227 $ 7,564 Total interest income not recognized on nonaccrual loans for the three months ended March 31, 2018 and 2017 was $180 thousand and $363 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2018 and December 31, 2017: As of March 31, 2018 (Dollars are in thousands) Recorded Investment Principal Balance Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,828 $ 2,882 $ - Construction and land development 165 362 - Residential 1-4 family 3,144 3,206 - Multifamily 212 253 - Farmland 1,165 1,191 - Commercial 13 13 - Agriculture 3 3 - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 2,047 2,047 365 Construction and land development - - - Residential 1-4 family 358 358 89 Multifamily - - - Farmland 368 368 232 Commercial 461 461 147 Agriculture - - - Consumer installment loans 8 8 2 All other loans - - 19 Total $ 10,772 $ 11,152 $ 854 As of December 31, 2017 (Dollars are in thousands) Investment Principal Balance Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,646 $ 2,719 $ - Construction and land development 424 680 - Residential 1-4 family 3,586 3,885 - Multifamily 281 321 - Farmland 1,264 1,664 - Commercial 628 628 - Agriculture 12 12 - Consumer installment loans 8 8 - All other loans - - - With an allowance recorded: Real estate secured: Commercial 2,503 2,622 499 Construction and land development - - - Residential 1-4 family 421 437 91 Multifamily - - - Farmland 378 378 243 Commercial 489 572 413 Agriculture - - - Consumer installment loans - - - All other loans - - - Total $ 12,640 $ 13,926 $ 1,246 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Three Months Ended March 31, 2018 March 31, 2017 (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 $ 2,737 $ 28 $ 3,196 $ 25 Construction and land development 295 — 5 — Residential 1-4 family 3,365 42 3,821 49 Multifamily 247 4 516 12 Farmland 1,215 12 3,884 (115 ) Commercial 321 — — — Agriculture 8 — 19 — Consumer installment loans 4 — 18 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 2,275 16 901 2 Construction and land development — — 235 — Residential 1-4 family 390 4 701 9 Multifamily — — — — Farmland 373 590 5 Commercial 475 — 67 — Agriculture — 3 — Consumer installment loans 4 — 5 — All other loans — — — — Total $ 11,709 $ 106 $ 13,961 $ (13 ) An age analysis of past due loans receivable is below. At March 31, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of March 31, 2018 (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 $ 1,596 $ 25 $ 318 $ 1,939 $ 130,833 $ 132,772 Construction and land development 561 - 42 603 22,755 23,358 Residential 1-4 family 1,832 508 815 3,155 246,811 249,966 Multifamily - - - - 14,143 14,143 Farmland 1,547 245 - 1,792 23,011 24,803 Total real estate loans 5,536 778 1,175 7,489 437,553 445,042 Commercial - - - - 44,760 44,760 Agriculture 3 13 - 16 3,941 3,957 Consumer installment Loans 26 9 - 35 21,917 21,952 All other loans - - - - 652 652 Total loans $ 5,565 $ 800 $ 1,175 $ 7,540 $ 508,823 $ 516,363 As of December 31, 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 $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land development 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 - 214 15,267 15,481 Farmland 309 - - 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 - - 38 3,456 3,494 Consumer installment Loans 102 15 28 145 22,266 22,411 All other loans - - - - 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008 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 March 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 124,316 $ 4,489 $ 3,967 $ 132,772 Construction and land development 22,353 781 224 23,358 Residential 1-4 family 242,363 3,096 4,507 249,966 Multifamily 13,792 81 270 14,143 Farmland 21,814 1,818 1,171 24,803 Total real estate loans 424,638 10,265 10,139 445,042 Commercial 39,741 4,608 411 44,760 Agriculture 3,925 16 16 3,957 Consumer installment loans 21,930 1 21 21,952 All other loans 652 - - 652 Total $ 490,886 $ 14,890 $ 10,587 $ 516,363 As of December 31, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 - - 669 Total $ 489,049 $ 12,076 $ 11,883 $ 513,008

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018. 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 March 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ - $ 8 $ (156) $ 1,841 Construction and land development 191 (96) - 59 154 Residential 1-4 family 2,400 (44) 29 (19) 2,366 Multifamily 106 - - (2) 104 Farmland 415 - 56 (48) 423 Total real estate loans 5,101 (140) 93 (166) 4,888 Commercial 660 (515) 8 426 579 Agriculture 20 - - 6 26 Consumer installment loans 156 (26) 23 - 153 All other loans 3 - - 17 20 Unallocated 256 - - (220) 36 Total $ 6,196 $ (681) $ 124 $ 63 $ 5,702 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2018 (Dollars are in thousands) Individually Evaluated for Collectively Total Individually Evaluated for Impairment Collectively Total Real estate secured: Commercial $ 365 $ 1,476 $ 1,841 $ 4,875 $ 127,897 $ 132,772 Construction and land development - 154 154 165 23,193 23,358 Residential 1-4 family 89 2,277 2,366 3,502 246,464 249,966 Multifamily - 104 104 212 13,931 14,143 Farmland 232 191 423 1,533 23,270 24,803 Total real estate loans 686 4,202 4,888 10,287 434,755 445,042 Commercial 147 432 579 474 44,286 44,760 Agriculture - 26 26 3 3,954 3,957 Consumer installment loans 2 151 153 8 21,944 21,952 All other loans 19 1 20 - 652 652 Unallocated - 36 36 - - - Total $ 854 $ 4,848 $ 5,702 $ 10,772 $ 505,591 $ 516,363 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 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 December 31, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179) $ 193 $ 350 $ 1,989 Construction and land development 346 (1) - (154) 191 Residential 1-4 family 2,376 (714) 48 690 2,400 Multifamily 241 - - (135) 106 Farmland 428 (49) 361 (325) 415 Total real estate loans 5,016 (943) 602 426 5,101 Commercial 163 (11) 153 355 660 Agriculture 31 (4) 5 (12) 20 Consumer installment loans 123 (147) 19 161 156 All other loans - - - 3 3 Unallocated 739 - - (483) 256 Total $ 6,072 $ (1,105) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Total Individually Evaluated for Impairment Collectively Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 6,196 $ 12,640 $ 500,368 $ 513,008 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	3 Months Ended
	Mar. 31, 2018
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At March 31, 2018 there were $6.2 million in loans that are classified as troubled debt restructurings compared to $6.9 million at December 31, 2017. The following table presents information related to loans modified as troubled debt restructurings during the three months ended March 31, 2018 and 2017. For the three months ended March 31, 2018 For the three months ended March 31, 2017 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 $ 339 Construction and land Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - 1 341 339 Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - 1 $ 341 $ 339 During the three months ended March 31, 2018, the Company modified no loans for which the modification was considered to be a troubled debt restructuring. During the three months ended March 31, 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate and maturity date were not modified; however, the payment terms were changed. No loans modified as troubled debt restructurings defaulted during the three months ended March 31, 2018 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	3 Months Ended
	Mar. 31, 2018
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 three months ended March 31, 2018 and the year ended December 31, 2017: (Dollars are in thousands) March 31, 2018 December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,023 3,087 Transfers of premises and equipment — 125 Proceeds from sales (739 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (267 ) (1,477 ) Adjustment of carrying value (69 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,711 $ 6,859

FAIR VALUES

FAIR VALUES	3 Months Ended
	Mar. 31, 2018
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 – Assets measured at fair value on a recurring basis are as follows. There were no liabilities measured at fair value on a recurring basis. (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs Available-for-sale investments U.S. Government Agencies $ — $ 22,613 $ — Taxable municipals — 4,292 — Corporate bonds — 5,406 — Mortgage backed securities — 34,722 — Total $ — $ 67,033 $ — December 31, 2017 Available-for-sale investments U.S. Government Agencies $ — $ 23,844 $ — Taxable municipals — 4,397 — Corporate bonds — 5,579 — Mortgage backed securities — 37,268 — Total $ — $ 71,088 $ — Loans - Foreclosed Assets – Assets measured at fair value on a non-recurring basis are as follows (for purpose of this table the impaired loans are shown net of the related allowance). There were no liabilities measured at fair value on a non-recurring basis. (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs Other real estate owned $ — $ — $ 6,711 Impaired loans — — 9,918 Total $ — $ — $ 16,629 December 31, 2017 Other real estate owned $ — $ — $ 6,859 Impaired loans — — 11,394 Total $ — $ — $ 18,253 For Level 3 assets measured at fair value on a recurring or non-recurring basis, 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 March 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 9,918 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 6,711 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 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 tables below present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. 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 with banks, deposits with no stated maturities, and accrued interest approximates fair value. During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. As of March 31, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. As of December 31, 2017, the fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price as of December 31, 2017. 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. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2018 Financial Instruments – Assets Net Loans $ 510,661 $ 499,763 $ - $ 489,845 $ 9,918 Financial Instruments – Liabilities Time Deposits 265,025 264,945 - 264,945 - FHLB Advances 7,258 7,557 - 7,557 - Trust Preferred Securities 16,496 13,575 - 13,575 - December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ - $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 - 272,352 - FHLB Advances 7,558 7,794 - 7,794 - Trust Preferred Securities 16,496 16,496 - 16,496 -

SALE AND LEASEBACK TRANSACTIONS

SALE AND LEASEBACK TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
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 a nonaffiliated third party for a total purchase price of $6.2 million. 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 the purchaser 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 the purchaser 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 14.17 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 initial 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 also recognized a gain in 2017 of $2.6 million on the sale and leaseback transactions.

NONINTEREST EXPENSES

NONINTEREST EXPENSES	3 Months Ended
	Mar. 31, 2018
Noninterest Expenses
NONINTEREST EXPENSES	NOTE 12 NONINTEREST EXPENSES: Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: (Dollars are in thousands) March 31, 2018 March 31, 2017 Advertising $ 126 $ 93 ATM network expense 392 403 Legal and professional fees 367 297 Loan related expenses 200 184 Printing and supplies 136 24 FDIC insurance premiums 96 102 Other real estate owned, net 247 300 Other 535 514 Total noninterest expenses $ 2,099 $ 1,917

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events
SUBSEQUENT EVENTS:	NOTE 13 SUBSEQUENT EVENTS: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	NOTE 14 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 became effective January 1, 2018. The amendment does not apply to revenue associated with financial instruments, such as loans and investment securities available for sale, and therefore had no material effect on our consolidated 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 became effective on January 1, 2018 and did not have a material effect on the financial statements. As discussed in Note 10, the Company measured the fair value of its loan portfolio using an exit price notion as of March 31, 2018. 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 guidance became effective January 1, 2018. The Company completed an assessment of revenue streams and a review of related contracts potentially affected by the ASU and, based on this assessment, the Company concluded that the ASU did not materially change the method in which the Company currently recognizes revenue for these revenue streams. As such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. 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 is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. 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 amendment became effective on January 1, 2018 and did not have a material effect on the 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 amendment became effective on January 1, 2018 and did not have a material effect on the financial statements. In September 2017, the FASB updated the Revenue from Contracts with Customers and the Leases Topics of the Accounting Standards Codification. The amendments incorporate into the ASC recent SEC guidance about certain public business entities (PBEs) electing to use the non-PBE effective dates solely to adopt the FASB’s new standards on revenue and leases. The amendments were effective upon issuance. The Company is currently in the process of evaluating the impact of adoption of this guidance, however it does not expect these amendments to have a material effect on its financial statements. In November 2017, the FASB updated the Income Statement and Revenue from Contracts with Customers Topics of the Accounting Standards Codification. The amendments incorporate into the ASC recent SEC guidance related to revenue recognition. The amendments were effective upon issuance and did not have a material effect on the financial statements. In February 2018, the FASB Issued (ASU 2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which requires Companies to reclassify the stranded effects in other comprehensive income to retained earnings as a result of the change in the tax rates under the Tax Cuts and Jobs Act. The Company has opted to early adopt this pronouncement by retrospective application to each period (or periods) in which the effect of the change in the tax rate under the Tax Cuts and Jobs Act is recognized. The impact of the reclassification from other comprehensive income to retained earnings was $98 thousand as of December 31, 2017. In February 2018, the FASB amended the Financial Instruments Topic of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments will be effective for the third quarter of 2018 subsequent to adopting the amendments in ASU 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016-01. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Income Taxes Topic of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance related to the income tax accounting implications of the Tax Cuts and Jobs Act. The amendments were effective upon issuance. 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)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017, and the results of operations for the three-month periods ended March 31, 2018 and 2017. 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, 2017. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. 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)	3 Months Ended
	Mar. 31, 2018
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 2018 2017 Net income $ 80 $ 115 Weighted average shares outstanding 23,922,086 23,354,890 Dilutive shares for stock warrants — — Weighted average dilutive shares outstanding 23,922,086 23,354,890 Basic income per share $ 0.00 $ 0.00 Diluted income per share $ 0.00 $ 0.00

CAPITAL (Tables)

CAPITAL (Tables)	3 Months Ended
	Mar. 31, 2018
Capital [Abstract]
Schedule of capital requirements	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 March 31, 2018 and December 31, 2017, 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 March 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 68,976 15.21% $ 36,273 8.0% $ 45,341 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,331 13.97% 27,205 6.0% 36,273 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,331 9.56% 26,505 4.0% 33,131 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,331 13.97% 20,403 4.5% 29,472 6.5% December 31, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 68,787 15.30% $ 35,970 8.0% $ 44,962 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05% 26,977 6.0% 35,970 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,160 9.56% 26,422 4.0% 33,028 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05% 20,233 4.5% 29,225 6.5%

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 U.S. Government Agencies $ 22,912 $ 55 $ (354) $ 22,613 Taxable municipals 4,457 - (165) 4,292 Corporate bonds 5,433 103 (130) 5,406 Mortgage backed securities 36,023 1 (1,302) 34,722 Total Securities AFS $ 68,825 $ 159 $ (1,951) $ 67,033 December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ (221) $ 23,844 Taxable municipals 4,466 9 (78) 4,397 Corporate bonds 5,437 168 (26) 5,579 Mortgage backed securities 37,950 3 (685) 37,268 Total Securities AFS $ 71,839 $ 259 $ (1,010) $ 71,088
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 March 31, 2018 and December 31, 2017. 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 March 31, 2018 U.S. Government Agencies $ 7,439 $ (128) $ 6,800 $ (226) $ 14,239 $ (354) Taxable municipals 3,545 (111) 746 (54) 4,291 (165) Corporate bonds 2,402 (130) - - 2,402 (130) Mtg. backed securities 14,603 (436) 20,009 (866) 34,612 (1,302) Total Securities AFS $ 27,989 $ (805) $ 27,555 $ (1,146) $ 55,544 $ (1,951) December 31, 2017 U.S. Government Agencies $ 7,840 $ (69) $ 7,189 $ (152) $ 15,029 $ (221) Taxable municipals 2,403 (44) 767 (34) 3,170 (78) Corporate bonds 1,507 (26) - - 1,507 (26) Mtg. backed securities 14,720 (145) 21,500 (540) 36,220 (685) Total Securities AFS $ 26,470 $ (284) $ 29,456 $ (726) $ 55,926 $ (1,010)
Schedule of amortized cost and fair value of investment securities' contractual maturity	The amortized cost and fair value of investment securities at March 31, 2018, 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 $ 4 $ 4 1.63% Due after one year through five years 3,494 3,407 1.92% Due after five years through ten years 16,042 15,802 3.20% Due after ten years 49,285 47,820 2.31% Total $ 68,825 $ 67,033 2.49%

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]
Summary of loans receivable outstanding	Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2018 December 31, 2017 Real estate secured: Commercial $ 132,772 $ 127,688 Construction and land development 23,358 29,763 Residential 1-4 family 249,966 249,159 Multifamily 14,143 15,481 Farmland 24,803 22,998 Total real estate loans 445,042 445,089 Commercial 44,760 41,345 Agriculture 3,957 3,494 Consumer installment loans 21,952 22,411 All other loans 652 669 Total loans $ 516,363 $ 513,008
Summary of loans receivable on nonaccrual status	Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2018 December 31, 2017 Real estate secured: Commercial $ 3,469 $ 2,035 Construction and land development 210 470 Residential 1-4 family 3,202 2,991 Multifamily 85 152 Farmland 827 800 Total real estate loans 7,793 6,448 Commercial 411 1,065 Agriculture 3 3 Consumer installment loans 20 48 Total loans receivable on nonaccrual status $ 8,227 $ 7,564
Summary of impaired loans	The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2018 and December 31, 2017: As of March 31, 2018 (Dollars are in thousands) Recorded Investment Principal Balance Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,828 $ 2,882 $ - Construction and land development 165 362 - Residential 1-4 family 3,144 3,206 - Multifamily 212 253 - Farmland 1,165 1,191 - Commercial 13 13 - Agriculture 3 3 - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 2,047 2,047 365 Construction and land development - - - Residential 1-4 family 358 358 89 Multifamily - - - Farmland 368 368 232 Commercial 461 461 147 Agriculture - - - Consumer installment loans 8 8 2 All other loans - - 19 Total $ 10,772 $ 11,152 $ 854 As of December 31, 2017 (Dollars are in thousands) Investment Principal Balance Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,646 $ 2,719 $ - Construction and land development 424 680 - Residential 1-4 family 3,586 3,885 - Multifamily 281 321 - Farmland 1,264 1,664 - Commercial 628 628 - Agriculture 12 12 - Consumer installment loans 8 8 - All other loans - - - With an allowance recorded: Real estate secured: Commercial 2,503 2,622 499 Construction and land development - - - Residential 1-4 family 421 437 91 Multifamily - - - Farmland 378 378 243 Commercial 489 572 413 Agriculture - - - Consumer installment loans - - - All other loans - - - Total $ 12,640 $ 13,926 $ 1,246
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: Three Months Ended March 31, 2018 March 31, 2017 (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 $ 2,737 $ 28 $ 3,196 $ 25 Construction and land development 295 — 5 — Residential 1-4 family 3,365 42 3,821 49 Multifamily 247 4 516 12 Farmland 1,215 12 3,884 (115 ) Commercial 321 — — — Agriculture 8 — 19 — Consumer installment loans 4 — 18 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 2,275 16 901 2 Construction and land development — — 235 — Residential 1-4 family 390 4 701 9 Multifamily — — — — Farmland 373 590 5 Commercial 475 — 67 — Agriculture — 3 — Consumer installment loans 4 — 5 — All other loans — — — — Total $ 11,709 $ 106 $ 13,961 $ (13 )
Summary of age analysis of past due loans receivable	An age analysis of past due loans receivable is below. At March 31, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of March 31, 2018 (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 $ 1,596 $ 25 $ 318 $ 1,939 $ 130,833 $ 132,772 Construction and land development 561 - 42 603 22,755 23,358 Residential 1-4 family 1,832 508 815 3,155 246,811 249,966 Multifamily - - - - 14,143 14,143 Farmland 1,547 245 - 1,792 23,011 24,803 Total real estate loans 5,536 778 1,175 7,489 437,553 445,042 Commercial - - - - 44,760 44,760 Agriculture 3 13 - 16 3,941 3,957 Consumer installment Loans 26 9 - 35 21,917 21,952 All other loans - - - - 652 652 Total loans $ 5,565 $ 800 $ 1,175 $ 7,540 $ 508,823 $ 516,363 As of December 31, 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 $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land development 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 - 214 15,267 15,481 Farmland 309 - - 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 - - 38 3,456 3,494 Consumer installment Loans 102 15 28 145 22,266 22,411 All other loans - - - - 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008
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 March 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 124,316 $ 4,489 $ 3,967 $ 132,772 Construction and land development 22,353 781 224 23,358 Residential 1-4 family 242,363 3,096 4,507 249,966 Multifamily 13,792 81 270 14,143 Farmland 21,814 1,818 1,171 24,803 Total real estate loans 424,638 10,265 10,139 445,042 Commercial 39,741 4,608 411 44,760 Agriculture 3,925 16 16 3,957 Consumer installment loans 21,930 1 21 21,952 All other loans 652 - - 652 Total $ 490,886 $ 14,890 $ 10,587 $ 516,363 As of December 31, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 - - 669 Total $ 489,049 $ 12,076 $ 11,883 $ 513,008

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018. 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 March 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ - $ 8 $ (156) $ 1,841 Construction and land development 191 (96) - 59 154 Residential 1-4 family 2,400 (44) 29 (19) 2,366 Multifamily 106 - - (2) 104 Farmland 415 - 56 (48) 423 Total real estate loans 5,101 (140) 93 (166) 4,888 Commercial 660 (515) 8 426 579 Agriculture 20 - - 6 26 Consumer installment loans 156 (26) 23 - 153 All other loans 3 - - 17 20 Unallocated 256 - - (220) 36 Total $ 6,196 $ (681) $ 124 $ 63 $ 5,702 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2018 (Dollars are in thousands) Individually Evaluated for Collectively Total Individually Evaluated for Impairment Collectively Total Real estate secured: Commercial $ 365 $ 1,476 $ 1,841 $ 4,875 $ 127,897 $ 132,772 Construction and land development - 154 154 165 23,193 23,358 Residential 1-4 family 89 2,277 2,366 3,502 246,464 249,966 Multifamily - 104 104 212 13,931 14,143 Farmland 232 191 423 1,533 23,270 24,803 Total real estate loans 686 4,202 4,888 10,287 434,755 445,042 Commercial 147 432 579 474 44,286 44,760 Agriculture - 26 26 3 3,954 3,957 Consumer installment loans 2 151 153 8 21,944 21,952 All other loans 19 1 20 - 652 652 Unallocated - 36 36 - - - Total $ 854 $ 4,848 $ 5,702 $ 10,772 $ 505,591 $ 516,363
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, 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 December 31, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179) $ 193 $ 350 $ 1,989 Construction and land development 346 (1) - (154) 191 Residential 1-4 family 2,376 (714) 48 690 2,400 Multifamily 241 - - (135) 106 Farmland 428 (49) 361 (325) 415 Total real estate loans 5,016 (943) 602 426 5,101 Commercial 163 (11) 153 355 660 Agriculture 31 (4) 5 (12) 20 Consumer installment loans 123 (147) 19 161 156 All other loans - - - 3 3 Unallocated 739 - - (483) 256 Total $ 6,072 $ (1,105) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Total Individually Evaluated for Impairment Collectively Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 6,196 $ 12,640 $ 500,368 $ 513,008

TROUBLED DEBT RESTRUCTURING (Ta

TROUBLED DEBT RESTRUCTURING (Tables)	3 Months Ended
	Mar. 31, 2018
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 three months ended March 31, 2018 and 2017. For the three months ended March 31, 2018 For the three months ended March 31, 2017 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 $ 339 Construction and land Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - 1 341 339 Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - 1 $ 341 $ 339

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of other real estate	The following table summarizes the activity in other real estate owned for the three months ended March 31, 2018 and the year ended December 31, 2017: (Dollars are in thousands) March 31, 2018 December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,023 3,087 Transfers of premises and equipment — 125 Proceeds from sales (739 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (267 ) (1,477 ) Adjustment of carrying value (69 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,711 $ 6,859

FAIR VALUES (Tables)

FAIR VALUES (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Summary of assets and liabilities measured at fair value	Assets measured at fair value on a recurring basis are as follows. There were no liabilities measured at fair value on a recurring basis. (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs Available-for-sale investments U.S. Government Agencies $ — $ 22,613 $ — Taxable municipals — 4,292 — Corporate bonds — 5,406 — Mortgage backed securities — 34,722 — Total $ — $ 67,033 $ — December 31, 2017 Available-for-sale investments U.S. Government Agencies $ — $ 23,844 $ — Taxable municipals — 4,397 — Corporate bonds — 5,579 — Mortgage backed securities — 37,268 — Total $ — $ 71,088 $ —
Schedule of Assets measured at fair value on a non-recurring	Assets measured at fair value on a non-recurring basis are as follows (for purpose of this table the impaired loans are shown net of the related allowance). There were no liabilities measured at fair value on a non-recurring basis. (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs Other real estate owned $ — $ — $ 6,711 Impaired loans — — 9,918 Total $ — $ — $ 16,629 December 31, 2017 Other real estate owned $ — $ — $ 6,859 Impaired loans — — 11,394 Total $ — $ — $ 18,253
Schedule of significant unobservable inputs in level 3 assets	For Level 3 assets measured at fair value on a recurring or non-recurring basis, 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 March 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 9,918 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 6,711 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. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2018 Financial Instruments – Assets Net Loans $ 510,661 $ 499,763 $ - $ 489,845 $ 9,918 Financial Instruments – Liabilities Time Deposits 265,025 264,945 - 264,945 - FHLB Advances 7,258 7,557 - 7,557 - Trust Preferred Securities 16,496 13,575 - 13,575 - December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ - $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 - 272,352 - FHLB Advances 7,558 7,794 - 7,794 - Trust Preferred Securities 16,496 16,496 - 16,496 -

NONINTEREST EXPENSES (Tables)

NONINTEREST EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2018
Noninterest Expenses Tables
Schedule of Other operating expenses, included as part of noninterest expenses	Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: (Dollars are in thousands) March 31, 2018 March 31, 2017 Advertising $ 126 $ 93 ATM network expense 392 403 Legal and professional fees 367 297 Loan related expenses 200 184 Printing and supplies 136 24 FDIC insurance premiums 96 102 Other real estate owned, net 247 300 Other 535 514 Total noninterest expenses $ 2,099 $ 1,917

EARNINGS PER SHARE_ (Details)

EARNINGS PER SHARE: (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Policies [Abstract]
Net income	$ 80	$ 115
Weighted average shares outstanding	23,922,086	23,354,890
Weighted average dilutive shares outstanding	23,922,086	23,354,890
Basic income per share	$ 0	$ 0
Diluted income per share	$ 0	$ 0

CAPITAL_ (Details)

CAPITAL: (Details) - Bank - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total Capital to Risk Weighted Assets, Actual, Amount	$ 68,976	$ 68,787
Total Capital to Risk Weighted Assets, Actual, Ratio	15.21%	15.30%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 36,273	$ 35,970
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	$ 45,341	$ 44,962
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	$ 63,331	$ 63,160
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	13.97%	14.05%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 27,205	$ 26,977
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	$ 36,273	$ 35,970
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	$ 63,331	$ 63,160
Tier 1 Capital to Average Assets, Actual, Ratio	9.56%	9.56%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 26,505	$ 26,422
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	$ 33,131	$ 33,028
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	$ 63,331	$ 63,160
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	13.97%	14.05%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 20,403	$ 20,233
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	$ 29,472	$ 29,225
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	Mar. 31, 2018	Dec. 31, 2017
Amortized Cost	$ 68,825	$ 71,839
Gross Unrealized Gains	159	259
Gross Unrealized Losses	(1,951)	(1,010)
Approximate Fair Value	67,033	71,088
US Government Agencies [Member]
Amortized Cost	22,912	23,986
Gross Unrealized Gains	55	79
Gross Unrealized Losses	(354)	(221)
Approximate Fair Value	22,613	23,844
Taxable Municipals
Amortized Cost	4,457	4,466
Gross Unrealized Gains		9
Gross Unrealized Losses	(165)	(78)
Approximate Fair Value	4,292	4,397
Corporate Bonds
Amortized Cost	5,433	5,437
Gross Unrealized Gains	103	168
Gross Unrealized Losses	(130)	(26)
Approximate Fair Value	5,406	5,579
Mortgage Backed Securities [Member]
Amortized Cost	36,023	37,950
Gross Unrealized Gains	1	3
Gross Unrealized Losses	(1,302)	(685)
Approximate Fair Value	$ 34,722	$ 37,268

INVESTMENT SECURITIES_ (Detai35

INVESTMENT SECURITIES: (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Less than 12 Months	$ 27,989	$ 26,470
Unrealized Losses, Less than 12 Months	(805)	(284)
Fair Value, 12 Months or More	27,555	29,456
Unrealized Losses, 12 Months or More	(1,146)	(726)
Fair Value, Total	55,544	55,926
Unrealized Losses, Total	(1,951)	(1,010)
US Government Agencies [Member]
Fair Value, Less than 12 Months	7,439	7,840
Unrealized Losses, Less than 12 Months	(128)	(69)
Fair Value, 12 Months or More	6,800	7,189
Unrealized Losses, 12 Months or More	(226)	(152)
Fair Value, Total	14,239	15,029
Unrealized Losses, Total	(354)	(221)
Taxable Municipals
Fair Value, Less than 12 Months	3,545	2,403
Unrealized Losses, Less than 12 Months	(111)	(44)
Fair Value, 12 Months or More	746	767
Unrealized Losses, 12 Months or More	(54)	(34)
Fair Value, Total	4,291	3,170
Unrealized Losses, Total	(165)	(78)
Corporate Bonds
Fair Value, Less than 12 Months	2,402	1,507
Unrealized Losses, Less than 12 Months	(130)	(26)
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	2,402	1,507
Unrealized Losses, Total	(130)	(26)
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	14,603	14,720
Unrealized Losses, Less than 12 Months	(436)	(145)
Fair Value, 12 Months or More	20,009	21,500
Unrealized Losses, 12 Months or More	(866)	(540)
Fair Value, Total	34,612	36,220
Unrealized Losses, Total	$ (1,302)	$ (685)

INVESTMENT SECURITIES_ (Detai36

INVESTMENT SECURITIES: (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Investment Securities Activity
Due in one year or less, Amortized Cost	$ 4
Due after one year through five years, Amortized Cost	3,494
Due after five years through ten years, Amortized Cost	16,042
Due after ten years, Amortized Cost	49,285
Amortized Cost, Total	68,825	$ 71,839
Due in one year or less, Fair Value	4
Due after one year through five years, Fair Value	3,407
Due after five years through ten years, Fair Value	15,802
Due after ten years, Fair Value	47,820
Approximate Fair Value	$ 67,033	$ 71,088
Due in one year or less, Weighted Average Yield	1.63%
Due after one year through five years, Weighted Average Yield	1.92%
Due after five years through ten years, Weighted Average Yield	3.20%
Due after ten years, Weighted Average Yield	2.31%
Weighted Average Yield, Total	2.49%

LOANS_ (Details)

LOANS: (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total loans and leases	$ 516,363	$ 513,008
Real Estate [Member]
Total loans and leases	445,042	445,089
Commercial
Total loans and leases	44,760	41,345
Commercial | Real Estate [Member]
Total loans and leases	132,772	127,688
Construction and Land Development | Real Estate [Member]
Total loans and leases	23,358	29,763
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	249,966	249,159
Multifamily | Real Estate [Member]
Total loans and leases	14,143	15,481
Farmland | Real Estate [Member]
Total loans and leases	24,803	22,998
Commercial Real Estate [Member]
Total loans and leases	44,760	41,345
Agriculture
Total loans and leases	3,957	3,494
Consumer Installment Loans
Total loans and leases	21,952	22,411
Other Loans
Total loans and leases	$ 652	$ 669

LOANS_ (Details 1)

LOANS: (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total loans receivable on nonaccrual status	$ 8,227	$ 7,564
Real Estate [Member]
Total loans receivable on nonaccrual status	7,793	6,448
Commercial | Real Estate [Member]
Total loans receivable on nonaccrual status	3,469	2,035
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	210	470
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	3,202	2,991
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	85	152
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	827	800
Commercial Real Estate [Member]
Total loans receivable on nonaccrual status	411	1,065
Agriculture
Total loans receivable on nonaccrual status	3	3
Consumer Installment Loans
Total loans receivable on nonaccrual status	$ 20	$ 48

LOANS_ (Details 2)

LOANS: (Details 2) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Recorded Investment	$ 10,772	$ 12,640
Unpaid Principal Balance	11,152	13,926
Related Allowance	854	1,246
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	3	12
Unpaid Principal Balance	3	12
Related Allowance
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment		8
Unpaid Principal Balance		8
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	8
Unpaid Principal Balance	8
Related Allowance	2
Other Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Other Loans [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance	19
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	461	489
Unpaid Principal Balance	461	572
Related Allowance	147	413
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	13	628
Unpaid Principal Balance	13	628
Related Allowance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	2,828	2,646
Unpaid Principal Balance	2,882	2,719
Related Allowance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	2,047	2,503
Unpaid Principal Balance	2,047	2,622
Related Allowance	365	499
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	165	424
Unpaid Principal Balance	362	680
Related Allowance
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	3,144	3,586
Unpaid Principal Balance	3,206	3,885
Related Allowance
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	358	421
Unpaid Principal Balance	358	437
Related Allowance	89	91
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	212	281
Unpaid Principal Balance	253	321
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	1,165	1,264
Unpaid Principal Balance	1,191	1,664
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	368	378
Unpaid Principal Balance	368	378
Related Allowance	$ 232

LOANS_ (Details 3)

LOANS: (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Impaired loans without a valuation allowance:
Average Recorded Investment	$ 11,709	$ 13,961
Interest Income Recognized	106	(13)
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	2,737
Interest Income Recognized	28
Impaired loans with valuation allowance:
Average Recorded Investment	2,275	67
Interest Income Recognized	16
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	8
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment		3
Interest Income Recognized
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		19
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment		5
Interest Income Recognized
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	4	18
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	4
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	295
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment		235
Interest Income Recognized
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		5
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	3,365
Interest Income Recognized	42
Impaired loans with valuation allowance:
Average Recorded Investment	390	701
Interest Income Recognized	4
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		3,821
Interest Income Recognized		49
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	247
Interest Income Recognized	4
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		516
Interest Income Recognized		12
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	1,215
Interest Income Recognized	12
Impaired loans with valuation allowance:
Average Recorded Investment	373	590
Interest Income Recognized		5
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment		3,884
Interest Income Recognized		(115)
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	321
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment	475
Interest Income Recognized
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment
Interest Income Recognized
Impaired loans with valuation allowance:
Average Recorded Investment		901
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		3,196
Interest Income Recognized		$ 25
Impaired loans with valuation allowance:
Average Recorded Investment
Interest Income Recognized

LOANS_ (Details 4)

LOANS: (Details 4) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans 30-59 Days Past Due	$ 5,565	$ 4,725
Loans 60-89 Days Past Due	800	3,149
Loans 90 or More Days Past Due	1,175	2,095
Total Past Due Loans	7,540	9,969
Current Loans	508,823	503,039
Total loans and leases	516,363	513,008
Real Estate [Member]
Loans 30-59 Days Past Due	5,536	4,482
Loans 60-89 Days Past Due	778	3,109
Loans 90 or More Days Past Due	1,175	1,464
Total Past Due Loans	7,489	9,055
Current Loans	437,553	436,034
Total loans and leases	445,042	445,089
Commercial
Total loans and leases	44,760	41,345
Commercial | Real Estate [Member]
Loans 30-59 Days Past Due	1,596	190
Loans 60-89 Days Past Due	25	2,396
Loans 90 or More Days Past Due	318	453
Total Past Due Loans	1,939	3,039
Current Loans	130,833	124,649
Total loans and leases	132,772	127,688
Construction and Land Development | Real Estate [Member]
Loans 30-59 Days Past Due	561	69
Loans 60-89 Days Past Due		246
Loans 90 or More Days Past Due	42	42
Total Past Due Loans	603	357
Current Loans	22,755	29,406
Total loans and leases	23,358	29,763
Residential 1-4 Family | Real Estate [Member]
Loans 30-59 Days Past Due	1,832	3,789
Loans 60-89 Days Past Due	508	378
Loans 90 or More Days Past Due	815	969
Total Past Due Loans	3,155	5,136
Current Loans	246,811	244,023
Total loans and leases	249,966	249,159
Multifamily | Real Estate [Member]
Loans 30-59 Days Past Due		125
Loans 60-89 Days Past Due		89
Loans 90 or More Days Past Due
Total Past Due Loans		214
Current Loans	14,143	15,267
Total loans and leases	14,143	15,481
Farmland | Real Estate [Member]
Loans 30-59 Days Past Due	1,547	309
Loans 60-89 Days Past Due	245
Loans 90 or More Days Past Due
Total Past Due Loans	1,792	309
Current Loans	23,011	22,689
Total loans and leases	24,803	22,998
Commercial Real Estate [Member]
Loans 30-59 Days Past Due		103
Loans 60-89 Days Past Due		25
Loans 90 or More Days Past Due		603
Total Past Due Loans		731
Current Loans	44,760	40,614
Total loans and leases	44,760	41,345
Agriculture
Loans 30-59 Days Past Due	3	38
Loans 60-89 Days Past Due	13
Loans 90 or More Days Past Due
Total Past Due Loans	16	38
Current Loans	3,941	3,456
Total loans and leases	3,957	3,494
Consumer Installment Loans
Loans 30-59 Days Past Due	26	102
Loans 60-89 Days Past Due	9	15
Loans 90 or More Days Past Due		28
Total Past Due Loans	35	145
Current Loans	21,917	22,266
Total loans and leases	21,952	22,411
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	652	669
Total loans and leases	$ 652	$ 669

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total	$ 516,363	$ 513,008
Real Estate [Member]
Total	445,042	445,089
Pass
Total	490,886	489,049
Substandard
Total	10,587	11,883
Special Mention
Total	14,890	12,076
Real Estate [Member] | Pass
Total	424,638	424,582
Real Estate [Member] | Substandard
Total	10,139	10,763
Real Estate [Member] | Special Mention
Total	10,265	9,744
Other Loans
Total	652	669
Other Loans | Pass
Total	652	669
Other Loans | Substandard
Total
Other Loans | Special Mention
Total
Commercial
Total	44,760	41,345
Commercial | Real Estate [Member]
Total	132,772	127,688
Construction and Land Development | Real Estate [Member]
Total	23,358	29,763
Construction and Land Development | Real Estate [Member] | Pass
Total	22,353	28,462
Construction and Land Development | Real Estate [Member] | Substandard
Total	224	485
Construction and Land Development | Real Estate [Member] | Special Mention
Total	781	816
Residential 1-4 Family | Real Estate [Member]
Total	249,966	249,159
Residential 1-4 Family | Real Estate [Member] | Pass
Total	242,363	243,048
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	4,507	4,301
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	3,096	1,810
Multifamily | Real Estate [Member]
Total	14,143	15,481
Multifamily | Real Estate [Member] | Pass
Total	13,792	13,695
Multifamily | Real Estate [Member] | Substandard
Total	270	341
Multifamily | Real Estate [Member] | Special Mention
Total	81	1,445
Farmland | Real Estate [Member]
Total	24,803	22,998
Farmland | Real Estate [Member] | Pass
Total	21,814	19,273
Farmland | Real Estate [Member] | Substandard
Total	1,171	1,280
Farmland | Real Estate [Member] | Special Mention
Total	1,818	2,445
Commercial Real Estate [Member]
Total	44,760	41,345
Agriculture
Total	3,957	3,494
Agriculture | Pass
Total	3,925	3,468
Agriculture | Substandard
Total	16	3
Agriculture | Special Mention
Total	16	23
Consumer Installment Loans
Total	21,952	22,411
Consumer Installment Loans | Pass
Total	21,930	22,357
Consumer Installment Loans | Substandard
Total	21	52
Consumer Installment Loans | Special Mention
Total	1	2
Commercial Portfolio Segment [Member] | Pass
Total	124,316	37,973
Commercial Portfolio Segment [Member] | Substandard
Total	411	1,065
Commercial Portfolio Segment [Member] | Special Mention
Total	4,608	2,307
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	124,316	120,104
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	3,967	4,356
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	$ 4,489	$ 3,228

ALLOWANCE FOR LOAN LOSSES_ (Det

ALLOWANCE FOR LOAN LOSSES: (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Balance, beginning of year	$ 6,196	$ 6,072	$ 6,072
Charge Offs	(681)		(1,105)
Recoveries	124		779
Provision for loan losses	63		450
Balance, End of period	5,702		6,196
Real Estate [Member]
Balance, beginning of year	5,101	5,016	5,016
Charge Offs	(140)		(943)
Recoveries	93		602
Provision for loan losses	(166)		426
Balance, End of period	4,888		5,101
Commercial Real Estate [Member]
Balance, beginning of year	660	163	163
Charge Offs	(515)		(11)
Recoveries	8		153
Provision for loan losses	426		355
Balance, End of period	579		660
Commercial Real Estate [Member] | Real Estate [Member]
Balance, beginning of year	1,989	1,625	1,625
Charge Offs			(179)
Recoveries	8		193
Provision for loan losses	(156)		350
Balance, End of period	1,841		1,989
Construction and Land Development | Real Estate [Member]
Balance, beginning of year	191	346	346
Charge Offs	(96)		(1)
Recoveries
Provision for loan losses	59		(154)
Balance, End of period	154		191
Residential 1-4 Family | Real Estate [Member]
Balance, beginning of year	2,400	2,376	2,376
Charge Offs	(44)		(714)
Recoveries	29		48
Provision for loan losses	(19)		690
Balance, End of period	2,366		2,400
Multifamily | Real Estate [Member]
Balance, beginning of year	106	241	241
Charge Offs
Recoveries
Provision for loan losses	(2)		(135)
Balance, End of period	104		106
Farmland | Real Estate [Member]
Balance, beginning of year	415	428	428
Charge Offs			(49)
Recoveries	56		361
Provision for loan losses	(48)		(325)
Balance, End of period	423		415
Agriculture
Balance, beginning of year	20	31	31
Charge Offs			(4)
Recoveries			5
Provision for loan losses	6		(12)
Balance, End of period	26		20
Consumer Installment Loans
Balance, beginning of year	156	123	123
Charge Offs	(26)		(147)
Recoveries	23		19
Provision for loan losses			161
Balance, End of period	153		156
Other Loans
Balance, beginning of year	3
Charge Offs
Recoveries
Provision for loan losses	17		3
Balance, End of period	20		3
Unallocated
Balance, beginning of year	256	$ 739	739
Charge Offs
Recoveries
Provision for loan losses	(220)		(483)
Balance, End of period	$ 36		$ 256

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 854	$ 1,246
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,848	4,950
Allowance for Loan Losses, Total	5,702	6,196	$ 6,072
Recorded Investment in Loans, Individually Evaluated for Impairment	10,772	12,640
Recorded Investment in Loans, Collectively Evaluated for Impairment	505,591	500,368
Recorded Investment in Loans, Total	516,363	513,008
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	686	833
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,202	4,268
Allowance for Loan Losses, Total	4,888	5,101
Recorded Investment in Loans, Individually Evaluated for Impairment	10,287	11,503
Recorded Investment in Loans, Collectively Evaluated for Impairment	434,755	433,586
Recorded Investment in Loans, Total	445,042	445,089
Commercial
Recorded Investment in Loans, Total	44,760	41,345
Commercial | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	365	499
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,476	1,490
Allowance for Loan Losses, Total	1,841	1,989
Recorded Investment in Loans, Individually Evaluated for Impairment	4,875	5,149
Recorded Investment in Loans, Collectively Evaluated for Impairment	127,897	122,539
Recorded Investment in Loans, Total	132,772	127,688
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	154	191
Allowance for Loan Losses, Total	154	191
Recorded Investment in Loans, Individually Evaluated for Impairment	165	424
Recorded Investment in Loans, Collectively Evaluated for Impairment	23,193	29,339
Recorded Investment in Loans, Total	23,358	29,763
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	89	91
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,277	2,309
Allowance for Loan Losses, Total	2,366	2,400
Recorded Investment in Loans, Individually Evaluated for Impairment	3,502	4,007
Recorded Investment in Loans, Collectively Evaluated for Impairment	246,464	245,152
Recorded Investment in Loans, Total	249,966	249,159
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	104	106
Allowance for Loan Losses, Total	104	106
Recorded Investment in Loans, Individually Evaluated for Impairment	212	281
Recorded Investment in Loans, Collectively Evaluated for Impairment	13,931	15,200
Recorded Investment in Loans, Total	14,143	15,481
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	232	243
Allowance for Loan Losses, Collectively Evaluated for Impairment	191	172
Allowance for Loan Losses, Total	423	415
Recorded Investment in Loans, Individually Evaluated for Impairment	1,533	1,642
Recorded Investment in Loans, Collectively Evaluated for Impairment	23,270	21,356
Recorded Investment in Loans, Total	24,803	22,998
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	147	413
Allowance for Loan Losses, Collectively Evaluated for Impairment	432	247
Allowance for Loan Losses, Total	579	660	163
Recorded Investment in Loans, Individually Evaluated for Impairment	474	1,117
Recorded Investment in Loans, Collectively Evaluated for Impairment	44,286	40,228
Recorded Investment in Loans, Total	44,760	41,345
Agriculture
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	26	20
Allowance for Loan Losses, Total	26	20	31
Recorded Investment in Loans, Individually Evaluated for Impairment	3	12
Recorded Investment in Loans, Collectively Evaluated for Impairment	3,954	3,482
Recorded Investment in Loans, Total	3,957	3,494
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment	2
Allowance for Loan Losses, Collectively Evaluated for Impairment	151	156
Allowance for Loan Losses, Total	153	156	123
Recorded Investment in Loans, Individually Evaluated for Impairment	8	8
Recorded Investment in Loans, Collectively Evaluated for Impairment	21,944	22,403
Recorded Investment in Loans, Total	21,952	22,411
Other Loans
Allowance for Loan Losses, Individually Evaluated for Impairment	19
Allowance for Loan Losses, Collectively Evaluated for Impairment	1	3
Allowance for Loan Losses, Total	20	3
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	652	669
Recorded Investment in Loans, Total	652	669
Unallocated
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	36	256
Allowance for Loan Losses, Total	36	256	$ 739
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
	Mar. 31, 2017USD ($)Loan
# of Loans | Loan	1
Pre-Mod. Recorded Investment	$ 341
Post-Mod. Recorded Investment	$ 339
Real Estate [Member]
# of Loans | Loan	1
Pre-Mod. Recorded Investment	$ 341
Post-Mod. Recorded Investment	$ 339
Commercial Real Estate [Member] | Real Estate [Member]
# of Loans | Loan	1
Pre-Mod. Recorded Investment	$ 341
Post-Mod. Recorded Investment	$ 339

TROUBLED DEBT RESTRUCTURINGS 46

TROUBLED DEBT RESTRUCTURINGS (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Period loan is considered to be in default, days	90 days

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Real Estate [Abstract]
Balance, beginning of year	$ 10,655	$ 6,859
Additions	3,087	1,023
Transfers of premises and equipment to other real estate owned	125
Proceeds from sales	(4,742)	(739)
Proceeds from insurance claims	(12)
Loans made to finance sales	(1,477)	(267)
Adjustment of carrying value	(758)	(69)
Deferred gain from sales	45
Losses from sales	(64)	(96)
Balance, end of year	$ 6,859	$ 10,655

FAIR VALUES (Details)

FAIR VALUES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Inputs, Level 2 [Member]
Available for sale investments	$ 67,033
Fair Value, Inputs, Level 3 [Member]
Available for sale investments
Other real estate owned		$ 6,859
Impaired Loans		11,394
Fair Value, Measurements, Recurring [Member]
Available for sale investments		71,088
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies [Member]
Available for sale investments	22,613	23,844
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Taxable Municipals
Available for sale investments	4,292	4,397
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds
Available for sale investments	5,406	5,579
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities [Member]
Available for sale investments	34,722	37,268
Nonrecurring Basis [Member]
Other real estate owned	6,711
Impaired Loans	9,918
Total	$ 16,629	$ 18,253

FAIR VALUES (Details 1)

FAIR VALUES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Mar. 31, 2018
Other Real Estate Owned
Fair Value		$ 6,711
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]
General Range of Significant Unobservable Input Values		0.00%
Impaired Loans
Fair Value		$ 9,918
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 | Maximum [Member]
General Range of Significant Unobservable Input Values		18.00%

FAIR VALUES (Details 2)

FAIR VALUES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Net Loans	$ 510,661	$ 506,812
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Net Loans	510,661	506,812
Time deposits	265,025	272,330
FHLB advances	7,258	7,558
Trust Preferred Securities	16,496	16,496
Fair Value, Measurements, Recurring [Member]
Net Loans	499,763	506,608
Time deposits	264,945	272,352
FHLB advances	7,557	7,794
Trust Preferred Securities	13,575	16,496
Fair Value, Inputs, Level 2 [Member]
Net Loans	489,845	495,214
Time deposits	264,945	272,352
FHLB advances	7,557	7,794
Trust Preferred Securities	13,575	16,496
Fair Value, Inputs, Level 3 [Member]
Net Loans	9,918	11,394
Time deposits
FHLB advances
Trust Preferred Securities

NONINTEREST EXPENSES (Details)

NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Noninterest Expenses Details
Advertising	$ 126	$ 93
ATM network expense	392	403
Legal and professional fees	367	297
Loan related expenses	200	184
Printing and supplies	136	24
FDIC insurance premiums	96	102
Other real estate owned, net	247	300
Other	535	514
Total Noninterest Expenses	$ 2,099	$ 1,917