New Peoples Bankshares (NWPP) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 13, 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	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Elected Not To Use the Extended Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,922,086
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 6,658	$ 6,123	$ 19,578	$ 17,902
Interest-earning deposits with banks	122	59	283	151
Investments	373	391	1,178	1,122
Dividends on equity securities (restricted)	38	39	111	105
Total Interest and Dividend Income	7,191	6,612	21,150	19,280
INTEREST EXPENSE
Deposits	901	646	2,366	1,791
Borrowed funds	263	187	700	554
Total Interest Expense	1,164	833	3,066	2,345
NET INTEREST INCOME	6,027	5,779	18,084	16,935
PROVISION FOR LOAN LOSSES	63		189
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,964	5,779	17,895	16,935
NONINTEREST INCOME
Service charges and fees	1,662	1,628	4,837	4,726
Gain on sale and leaseback transactions				2,619
Insurance and investment fees	129	40	382	146
Other noninterest income	126	140	319	440
Total Noninterest Income	1,917	1,808	5,538	7,931
NONINTEREST EXPENSES
Salaries and employee benefits	3,614	3,413	10,928	10,135
Occupancy and equipment expense	1,249	1,227	3,840	3,526
Data processing and telecommunications	717	630	2,057	1,853
Other operating expenses	6,288	6,185	1,999	1,828
Total Noninterest Expenses	7,579	7,098	23,113	21,699
INCOME BEFORE INCOME TAXES	302	489	320	3,167
INCOME TAX EXPENSE (BENEFIT)	94	5	81	(9)
NET INCOME	$ 208	$ 484	$ 239	$ 3,176
Income Per Share
Basic	$ 0	$ 0.02	$ 0.01	$ 0.14
Fully Diluted	$ 0.01	$ 0.02	$ 0.01	$ 0.14
Average Weighted Shares of Common Stock
Basic	23,922,086	23,355,580	23,922,086	23,355,611
Fully Diluted	23,922,086	23,355,580	23,922,086	23,355,611

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 208	$ 484	$ 239	$ 3,176
Investment Securities Activity
Unrealized gains (losses) arising during the period	(407)	(216)	(1,655)	391
Tax related to unrealized gains (losses)	86	73	349	(133)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(321)	(143)	(1,306)	258
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (113)	$ 341	$ (1,067)	$ 3,434

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 16,427	$ 18,249
Interest-bearing deposits with banks	21,385	14,452
Federal funds sold	252	4
Total Cash and Cash Equivalents	38,064	32,705
Investment securities available-for-sale	60,391	71,088
Loans receivable	531,969	513,008
Allowance for loan losses	(5,280)	(6,196)
Net Loans	526,689	506,812
Bank premises and equipment, net	24,807	26,115
Other real estate owned	6,465	6,859
Accrued interest receivable	2,063	2,036
Deferred taxes, net	5,765	5,499
Right-of-use assets - operating leases	5,021	5,253
Other assets	10,253	10,333
Total Assets	679,518	666,700
Deposits:
Noninterest bearing	170,969	154,631
Interest bearing	427,243	427,913
Total Deposits	598,212	582,544
Borrowed funds	23,496	24,054
Lease liabilities - operating leases	5,021	5,253
Accrued interest payable	547	426
Accrued expenses and other liabilities	2,336	3,450
Total Liabilities	629,612	615,727
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at September 30, 2018 and December 31, 2017	47,844	47,844
Additional paid-in-capital	14,570	14,570
Retained deficit	(10,608)	(10,847)
Accumulated other comprehensive loss	(1,900)	(594)
Total Stockholders' Equity	49,906	50,973
Total Liabilities and Stockholders' Equity	$ 679,518	$ 666,700

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 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 [Member]	Common Stock Warrants [Member]	Additional Paid-in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at beginning at Dec. 31, 2016	$ 46,709	$ 764	$ 13,965	$ (14,065)	$ (456)	$ 46,917
Balance at beginning (in shares) at Dec. 31, 2016	23,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				3,176		3,176
Exercise of common stock warrants	$ 5	(2)	1			4
Exercise of common stock warrants (in shares)	3
Other comprehensive income (loss), net of tax					258	258
Balance at end at Sep. 30, 2017	$ 46,714	762	13,966	(10,889)	(198)	50,355
Balance at end (in shares) at Sep. 30, 2017	23,357
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				239		$ 239
Other comprehensive income (loss), net of tax					(1,306)	(1,306)
Balance at end at Sep. 30, 2018	$ 47,844		$ 14,570	$ (10,608)	$ (1,900)	$ 49,906
Balance at end (in shares) at Sep. 30, 2018	23,922					23,922,086

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 239	$ 3,176
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,935	1,911
Provision for loan losses	189
Income on life insurance	(42)	(82)
Gain on sale and leaseback transactions		(2,619)
(Gain) loss on sale of premises and equipment	76	(2)
Loss on sale of foreclosed assets	96	29
Adjustment of carrying value of other real estate owned	421	668
Accretion of bond premiums/discounts	500	589
Deferred taxes	83
Net change in:
Interest receivable	(27)	(108)
Other assets	101	390
Accrued interest payable	121	63
Accrued expenses and other liabilities	(1,114)	826
Net Cash Provided by Operating Activities	2,578	4,841
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(21,235)	(29,348)
Purchase of securities available-for-sale		(13,032)
Proceeds from sales, maturities, and principal paydowns of securities available-for-sale	8,542	14,614
Net sale of equity securities (restricted)	21	232
Payments for the purchase of premises and equipment	(1,509)	(1,866)
Proceeds from sale of premises and equipment	806	5
Proceeds from sales and leaseback transactions		1,042
Proceeds from insurance claims on other real estate owned		12
Proceeds from sales of other real estate owned	1,046	4,145
Net Cash Used In Investing Activities	(12,329)	(24,196)
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants		4
Net decrease in Federal Home Loan Bank advances	(558)	(5,900)
Increase in deposits	15,668	27,178
Net Cash Provided by Financing Activities	15,110	21,282
Net increase in cash and cash equivalents	5,359	1,927
Cash and Cash Equivalents, Beginning of Period	32,705	35,448
Cash and Cash Equivalents, End of Period	38,064	37,375
Supplemental Disclosure of Cash Paid During the Period for:
Interest	2,945	2,282
Taxes	320
Supplemental Disclosure of Non Cash Transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities		5,252
Loan made to finance sale of premises and equipment		4,935
Other real estate acquired in settlement of foreclosed loans	1,636	2,761
Loans made to finance sale of foreclosed real estate	467	1,225
Transfer of premises and equipment to other real estate		125
Change in unrealized gains (losses) on securities available-for-sale	$ 1,655	$ 391

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“the Company”) is a financial holding company whose principal activity is the ownership and management of a community bank, New Peoples Bank, Inc. (the “Bank”). The Bank was 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 southwestern Virginia, southern West Virginia, and eastern Tennessee. Services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts.

ACCOUNTING PRINCIPLES

ACCOUNTING PRINCIPLES	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017, and the results of operations for the three and nine-month periods ended September 30, 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	9 Months Ended
	Sep. 30, 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. Potential common shares that may be issued related to outstanding common stock warrants are determined by the Treasury method. For the three and nine months ended September 30, 2017, potential common shares of 879,803 were anti-dilutive and were not included in the calculation. There were no anti-dilutive potential common shares at September 30, 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the nine months 2018 2017 2018 2017 Net income $ 208 $ 484 $ 239 $ 3,176 Weighted average shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Dilutive shares for warrants — — — — Weighted average dilutive shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Basic and diluted income per share $ 0.01 $ 0.02 $ 0.01 $ 0.14

CAPITAL

CAPITAL	9 Months Ended
	Sep. 30, 2018
Capital [Abstract]
CAPITAL	NOTE 4 CAPITAL: Capital Requirements and Ratios The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum 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 September 30, 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 September 30, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,080 14.57 % $ 37,928 8.0 % $ 47,411 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,800 13.46 % 28,446 6.0 % 37,928 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,800 9.39 % 27,170 4.0 % 33,962 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,800 13.46 % 21,335 4.5 % 30,817 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 New Peoples Bank, Inc. 63,160 14.05 % 20,233 4.5 % 29,225 6.5 % As of September 30, 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 2.50%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions, such as dividends, or discretionary bonus payments.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 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 September 30, 2018 U.S. Government Agencies $ 20,792 $ 3 $ (607) $ 20,188 Taxable municipals 4,438 - (227) 4,211 Corporate bonds 5,426 57 (137) 5,346 Mortgage backed securities 32,141 1 (1,496) 30,646 Total Securities AFS $ 62,797 $ 61 $ (2,467) $ 60,391 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 AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 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 September 30, 2018 U.S. Government Agencies $ 8,959 $ (162) $ 9,406 $ (445) $ 18,365 $ (607) Taxable municipals 2,706 (148) 1,505 (79) 4,211 (227) Corporate bonds 2,393 (137) - - 2,393 (137) Mtg. backed securities 4,553 (173) 26,060 (1,323) 30,613 (1,496) Total Securities AFS $ 18,611 $ (620) $ 36,971 $ (1,847) $ 55,582 $ (2,467) 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 September 30, 2018, there were nineteen U.S. Government Agency securities, four taxable municipal securities, and eighty-three 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. Investment securities with a carrying value of $9.3 million and $11.0 million at September 30, 2018 and December 31, 2017, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $3.2 million for the nine months ended September 30, 2017. There were no sales of investment securities during the nine months ended September 30, 2018. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Gross gains realized $ — $ 30 $ — $ 30 Gross losses realized — (30 ) — (30 ) Net realized gains $ — $ — $ — $ — The amortized cost and fair value of investment securities at September 30, 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 $ 32 $ 33 0.00% Due after one year through five years 4,656 4,560 2.53% Due after five years through ten years 14,955 14,499 3.20% Due after ten years 43,154 41,299 2.40% Total $ 62,797 $ 60,391 2.60% 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 $2.5 million and $2.6 million as of September 30, 2018 and December 31, 2017, respectively.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
LOANS	NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 139,384 $ 127,688 Construction and land development 29,403 29,763 Residential 1-4 family 249,138 249,159 Multifamily 13,461 15,481 Farmland 21,656 22,998 Total real estate loans 453,042 445,089 Commercial 49,945 41,345 Agriculture 4,895 3,494 Consumer installment loans 23,471 22,411 All other loans 616 669 Total loans $ 531,969 $ 513,008 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 970 $ 2,035 Construction and land development 186 470 Residential 1-4 family 3,604 2,991 Multifamily 79 152 Farmland 1,665 800 Total real estate loans 6,504 6,448 Commercial 61 1,065 Agriculture — 3 Consumer installment loans 34 48 Total loans receivable on nonaccrual status $ 6,599 $ 7,564 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2018 and 2017 was $358 thousand and $456 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2018 and December 31, 2017: As of September 30, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,656 $ 2,762 $ — Construction and land development 140 409 — Residential 1-4 family 3,043 3,327 — Multifamily 79 120 — Farmland 1,770 1,954 — Commercial 14 14 — Agriculture — — — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 542 661 46 Construction and land development — — — Residential 1-4 family 431 453 114 Multifamily — — — Farmland 346 358 131 Commercial 109 109 15 Agriculture — — — Consumer installment loans 7 7 1 All other loans — — — Total $ 9,137 $ 10,174 $ 307 As of December 31, 2017 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related 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: Nine Months Ended September 30, 2018 September 30, 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 $ 2,724 $ 95 $ 2,976 $ 73 Construction and land development 220 1 2 — Residential 1-4 family 3,229 137 3,827 152 Multifamily 163 5 402 15 Farmland 1,515 51 2,538 52 Commercial 166 1 — — Agriculture 4 — 19 1 Consumer installment loans 2 — 13 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,409 16 1,208 80 Construction and land development — — 222 — Residential 1-4 family 391 13 634 14 Multifamily — — 660 48 Farmland 365 — 673 26 Commercial 293 2 282 24 Agriculture — — 2 — Consumer installment loans 6 1 2 — All other loans — — — — Total $ 10,487 $ 322 $ 13,460 $ 485 Three Months Ended September 30, 2018 September 30, 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 $ 2,710 41 $ 2,757 $ 9 Construction and land development 145 1 - - Residential 1-4 family 3,093 50 3,833 50 Multifamily 80 1 287 4 Farmland 1,816 9 1,193 26 Commercial 10 1 - - Agriculture 1 - 18 - Consumer installment loans - - 9 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 544 - 1,516 74 Construction and land development - - 209 - Residential 1-4 family 393 6 567 5 Multifamily - - 1,321 16 Farmland 357 - 756 10 Commercial 110 - 497 8 Agriculture - - - - Consumer installment loans 7 - - - All other loans - - - - Total $ 9,266 $ 109 $ 12,963 $ 202 An age analysis of past due loans receivable is below. At September 30, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of September 30, 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 $ — $ 176 $ 578 $ 754 $ 138,630 $ 139,384 Construction and land development 14 — 42 56 29,347 29,403 Residential 1-4 family 2,201 461 711 3,373 245,765 249,138 Multifamily — — — — 13,461 13,461 Farmland 40 809 281 1,130 20,526 21,656 Total real estate loans 2,255 1,446 1,612 5,313 447,729 453,402 Commercial 65 — 61 126 49,819 49,945 Agriculture — — 7 7 4,888 4,895 Consumer installment Loans 20 2 8 30 23,441 23,471 All other loans — — — — 616 616 Total loans $ 2,340 $ 1,448 $ 1,688 $ 5,476 $ 526,493 $ 531,969 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 Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 135,856 $ 1,918 $ 1,610 $ 139,384 Construction and land development 28,455 743 205 29,403 Residential 1-4 family 242,853 1,603 4,682 249,138 Multifamily 13,261 67 133 13,461 Farmland 17,626 2,300 1,730 21,656 Total real estate loans 438,051 6,631 8,360 453,042 Commercial 47,179 2,705 61 49,945 Agriculture 4,875 6 14 4,895 Consumer installment loans 23,403 — 68 23,471 All other loans 616 — — 616 Total $ 514,124 $ 9,342 $ 8,503 $ 531,969 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	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334 ) $ 73 $ (345 ) $ 1,383 Construction and land development 191 (96 ) 12 64 171 Residential 1-4 family 2,400 (270 ) 62 17 2,209 Multifamily 106 — — (15 ) 91 Farmland 415 (58 ) 66 (141 ) 282 Total real estate loans 5,101 (758 ) 213 (420 ) 4,136 Commercial 660 (617 ) 77 260 380 Agriculture 20 — 1 12 33 Consumer installment loans 156 (59 ) 38 16 151 All other loans 3 — — — 3 Unallocated 256 — — 321 577 Total $ 6,196 $ (1,434 ) $ 329 $ 189 $ 5,280 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2018 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 46 $ 1,337 $ 1,383 $ 3,198 $ 136,186 $ 139,384 Construction and land development - 171 171 140 29,263 29,403 Residential 1-4 family 114 2,095 2,209 3,474 245,664 249,138 Multifamily - 91 91 79 13,382 13,461 Farmland 131 151 282 2,116 19,540 21,656 Total real estate loans 291 3,845 4,136 9,007 444,035 453,042 Commercial 15 365 380 123 49,822 49,945 Agriculture - 33 33 - 4,895 4,895 Consumer installment loans 1 150 151 7 23,464 23,471 All other loans - 3 3 - 616 616 Unallocated - 577 577 - - - Total $ 307 $ 4,973 $ 5,280 $ 9,137 $ 522,832 $ 531,969 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 Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment 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	9 Months Ended
	Sep. 30, 2018
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At September 30, 2018 there were $5.5 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 nine and three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 For the nine months ended September 30, 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 — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — — — — Commercial — — — 1 443 443 Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 443 $ 443 D uring the nine and three months ended September 30, 2018, the Company did not modify any loans that were considered to be troubled debt restructurings. During the nine months ended September 30, 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the three months ended September 30, 2017, the Company modified no loans that were considered to be troubled debt restructurings. No loans previously modified as troubled debt restructurings defaulted during the nine months ended September 30, 2018. There were no loans modified as troubled debt restructurings that defaulted during the three months ended September 30, 2018 and 2017, which were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan.

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2018 and the year ended December 31, 2017: (Dollars are in thousands) September 30, December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,636 3,087 Transfers from premises and equipment — 125 Proceeds from sales (1,046 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (467 ) (1,477 ) Adjustment of carrying value (421 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,465 $ 6,859

FAIR VALUES

FAIR VALUES	9 Months Ended
	Sep. 30, 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 (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 U.S. Government Agencies $ — $ 20,188 $ — Taxable municipals — 4,211 — Corporate bonds — 5,346 — Mortgage backed securities — 30,646 — Total $ — $ 60,391 $ — 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 - Other Real Estate Owned – 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 (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 Other real estate owned — — $ 6,465 Impaired loans — — 8,830 Total — — $ 15,295 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 as of September 30, 2018 the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 8,830 $ 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 $ 6,465 $ Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2018 and December 31, 2017. 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) September 30, 2018 Financial Instruments – Assets Net Loans $ 526,689 $ 514,232 $ — $ 505,402 $ 8,830 Financial Instruments – Liabilities Time Deposits 258,926 258,512 — 258,512 — FHLB Advances 7,000 7,296 — 7,296 — Trust Preferred Securities 16,496 16,496 — 16,496 — 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	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
SALE AND LEASEBACK TRANSACTIONS	NOTE 11 SALE AND LEASEBACK TRANSACTIONS: On May 31, 2017, the Bank sold four 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, on May 31, 2017, the Bank 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 years. Base rent payments for years one through five 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 eleven through fifteen of the Leases. The Bank has the option to renew the Leases five times and each renewal would be for a term of five 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 years. As a result, the annual lease expense will be approximately $451 thousand. The weighted average remaining life of the leases is 13.67 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 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	9 Months Ended
	Sep. 30, 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: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Advertising $ 340 $ 316 $ 79 $ 110 ATM network expense 1,272 1,232 430 401 Legal and professional fees 1,057 926 284 301 Loan related expenses 480 500 150 167 Printing and supplies 248 88 46 34 FDIC insurance premiums 279 298 98 86 Other real estate owned, net 772 1,280 411 227 Other 1,840 1,545 501 502 Total noninterest expenses $ 6,288 $ 6,185 $ 1,999 $ 1,828

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
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	9 Months Ended
	Sep. 30, 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 September 30, 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 ASC. The ASU incorporates into the ASC 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 ASC. 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 ASC. 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 ASC. 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 ASC. The amendments incorporate into the ASC 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 ASC. The amendments incorporate into the ASC 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. In May 2018, the FASB amended the Financial Services—Depository and Lending Topic of the ASC to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the financial statements. In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to make narrow amendments to clarify how to apply certain aspects of the new standard. The amendments are effective for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to give entities another option for transition and to provide lessors with a practical expedient. The amendments will be effective for the Company for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In August 2018, the FASB amended the Fair Value Measurement Topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the Accounting Standards Codification to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. 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 POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2018 and December 31, 2017, and the results of operations for the three and nine-month periods ended September 30, 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)	9 Months Ended
	Sep. 30, 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 For the nine months 2018 2017 2018 2017 Net income $ 208 $ 484 $ 239 $ 3,176 Weighted average shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Dilutive shares for warrants — — — — Weighted average dilutive shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Basic and diluted income per share $ 0.01 $ 0.02 $ 0.01 $ 0.14

CAPITAL (Tables)

CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2018
Capital [Abstract]
Schedule of capital requirements	These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,080 14.57 % $ 37,928 8.0 % $ 47,411 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,800 13.46 % 28,446 6.0 % 37,928 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,800 9.39 % 27,170 4.0 % 33,962 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,800 13.46 % 21,335 4.5 % 30,817 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 New Peoples Bank, Inc. 63,160 14.05 % 20,233 4.5 % 29,225 6.5 %

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 U.S. Government Agencies $ 20,792 $ 3 $ (607) $ 20,188 Taxable municipals 4,438 - (227) 4,211 Corporate bonds 5,426 57 (137) 5,346 Mortgage backed securities 32,141 1 (1,496) 30,646 Total Securities AFS $ 62,797 $ 61 $ (2,467) $ 60,391 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	The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 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 September 30, 2018 U.S. Government Agencies $ 8,959 $ (162) $ 9,406 $ (445) $ 18,365 $ (607) Taxable municipals 2,706 (148) 1,505 (79) 4,211 (227) Corporate bonds 2,393 (137) - - 2,393 (137) Mtg. backed securities 4,553 (173) 26,060 (1,323) 30,613 (1,496) Total Securities AFS $ 18,611 $ (620) $ 36,971 $ (1,847) $ 55,582 $ (2,467) 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 gross realized gains and losses pertaining to the sale of investment securities available for sale	Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the nine months (Dollars are in thousands) 2018 2017 2018 2017 Gross gains realized $ — $ 30 $ — $ 30 Gross losses realized — (30 ) — (30 ) Net realized gains $ — $ — $ — $ —
Schedule of amortized cost and fair value of investment securities' contractual maturity	The amortized cost and fair value of investment securities at September 30, 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 $ 32 $ 33 0.00% Due after one year through five years 4,656 4,560 2.53% Due after five years through ten years 14,955 14,499 3.20% Due after ten years 43,154 41,299 2.40% Total $ 62,797 $ 60,391 2.60%

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2018
Loans and Leases Receivable Disclosure [Abstract]
Summary of loans receivable outstanding	Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 139,384 $ 127,688 Construction and land development 29,403 29,763 Residential 1-4 family 249,138 249,159 Multifamily 13,461 15,481 Farmland 21,656 22,998 Total real estate loans 453,042 445,089 Commercial 49,945 41,345 Agriculture 4,895 3,494 Consumer installment loans 23,471 22,411 All other loans 616 669 Total loans $ 531,969 $ 513,008
Summary of loans receivable on nonaccrual status	Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 970 $ 2,035 Construction and land development 186 470 Residential 1-4 family 3,604 2,991 Multifamily 79 152 Farmland 1,665 800 Total real estate loans 6,504 6,448 Commercial 61 1,065 Agriculture — 3 Consumer installment loans 34 48 Total loans receivable on nonaccrual status $ 6,599 $ 7,564
Summary of impaired loans	The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2018 and December 31, 2017: As of September 30, 2018 Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,656 $ 2,762 $ — Construction and land development 140 409 — Residential 1-4 family 3,043 3,327 — Multifamily 79 120 — Farmland 1,770 1,954 — Commercial 14 14 — Agriculture — — — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 542 661 46 Construction and land development — — — Residential 1-4 family 431 453 114 Multifamily — — — Farmland 346 358 131 Commercial 109 109 15 Agriculture — — — Consumer installment loans 7 7 1 All other loans — — — Total $ 9,137 $ 10,174 $ 307 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related 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: Nine Months Ended September 30, 2018 September 30, 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 $ 2,724 $ 95 $ 2,976 $ 73 Construction and land development 220 1 2 — Residential 1-4 family 3,229 137 3,827 152 Multifamily 163 5 402 15 Farmland 1,515 51 2,538 52 Commercial 166 1 — — Agriculture 4 — 19 1 Consumer installment loans 2 — 13 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,409 16 1,208 80 Construction and land development — — 222 — Residential 1-4 family 391 13 634 14 Multifamily — — 660 48 Farmland 365 — 673 26 Commercial 293 2 282 24 Agriculture — — 2 — Consumer installment loans 6 1 2 — All other loans — — — — Total $ 10,487 $ 322 $ 13,460 $ 485 Three Months Ended September 30, 2018 September 30, 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 $ 2,710 41 $ 2,757 $ 9 Construction and land development 145 1 - - Residential 1-4 family 3,093 50 3,833 50 Multifamily 80 1 287 4 Farmland 1,816 9 1,193 26 Commercial 10 1 - - Agriculture 1 - 18 - Consumer installment loans - - 9 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 544 - 1,516 74 Construction and land development - - 209 - Residential 1-4 family 393 6 567 5 Multifamily - - 1,321 16 Farmland 357 - 756 10 Commercial 110 - 497 8 Agriculture - - - - Consumer installment loans 7 - - - All other loans - - - - Total $ 9,266 $ 109 $ 12,963 $ 202
Summary of age analysis of past due loans receivable	An age analysis of past due loans receivable is below. At September 30, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of September 30, 2018 Loans Loans Loans Total Current Total Real estate secured: Commercial $ — $ 176 $ 578 $ 754 $ 138,630 $ 139,384 Construction and land 14 — 42 56 29,347 29,403 Residential 1-4 family 2,201 461 711 3,373 245,765 249,138 Multifamily — — — — 13,461 13,461 Farmland 40 809 281 1,130 20,526 21,656 Total real estate loans 2,255 1,446 1,612 5,313 447,729 453,402 Commercial 65 — 61 126 49,819 49,945 Agriculture — — 7 7 4,888 4,895 Consumer installment 20 2 8 30 23,441 23,471 All other loans — — — — 616 616 Total loans $ 2,340 $ 1,448 $ 1,688 $ 5,476 $ 526,493 $ 531,969 As of December 31, 2017 Loans Loans Loans Total Current Total Real estate secured: Commercial $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land 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 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 September 30, 2018 Pass Special Substandard Total Real estate secured: Commercial $ 135,856 $ 1,918 $ 1,610 $ 139,384 Construction and land development 28,455 743 205 29,403 Residential 1-4 family 242,853 1,603 4,682 249,138 Multifamily 13,261 67 133 13,461 Farmland 17,626 2,300 1,730 21,656 Total real estate loans 438,051 6,631 8,360 453,042 Commercial 47,179 2,705 61 49,945 Agriculture 4,875 6 14 4,895 Consumer installment loans 23,403 — 68 23,471 All other loans 616 — — 616 Total $ 514,124 $ 9,342 $ 8,503 $ 531,969 As of December 31, 2017 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)	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2018 Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334 ) $ 73 $ (345 ) $ 1,383 Construction and land development 191 (96 ) 12 64 171 Residential 1-4 family 2,400 (270 ) 62 17 2,209 Multifamily 106 — — (15 ) 91 Farmland 415 (58 ) 66 (141 ) 282 Total real estate loans 5,101 (758 ) 213 (420 ) 4,136 Commercial 660 (617 ) 77 260 380 Agriculture 20 — 1 12 33 Consumer installment loans 156 (59 ) 38 16 151 All other loans 3 — — — 3 Unallocated 256 — — 321 577 Total $ 6,196 $ (1,434 ) $ 329 $ 189 $ 5,280 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2018 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 46 $ 1,337 $ 1,383 $ 3,198 $ 136,186 $ 139,384 Construction and land development - 171 171 140 29,263 29,403 Residential 1-4 family 114 2,095 2,209 3,474 245,664 249,138 Multifamily - 91 91 79 13,382 13,461 Farmland 131 151 282 2,116 19,540 21,656 Total real estate loans 291 3,845 4,136 9,007 444,035 453,042 Commercial 15 365 380 123 49,822 49,945 Agriculture - 33 33 - 4,895 4,895 Consumer installment loans 1 150 151 7 23,464 23,471 All other loans - 3 3 - 616 616 Unallocated - 577 577 - - - Total $ 307 $ 4,973 $ 5,280 $ 9,137 $ 522,832 $ 531,969
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 Beginning Charge 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 Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment 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)	9 Months Ended
	Sep. 30, 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 nine and three months ended September 30, 2018 and 2017. For the nine months ended For the nine months ended Troubled Debt Restructurings # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — — — — Commercial — — — 1 443 443 Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 443 $ 443

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of other real estate	The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2018 and the year ended December 31, 2017: (Dollars are in thousands) September 30, December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,636 3,087 Transfers from premises and equipment — 125 Proceeds from sales (1,046 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (467 ) (1,477 ) Adjustment of carrying value (421 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,465 $ 6,859

FAIR VALUES (Tables)

FAIR VALUES (Tables)	9 Months Ended
	Sep. 30, 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 (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 Available-for-sale investments U.S. Government Agencies $ — $ 20,188 $ — Taxable municipals — 4,211 — Corporate bonds — 5,346 — Mortgage backed securities — 30,646 — Total $ — $ 60,391 $ — 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 $ — 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 September 30, 2018 Other real estate owned — — $ 6,465 Impaired loans — — 8,830 Total — — $ 15,295 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 as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 8,830 $ 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 $ 6,465 $ Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18%
Estimated fair value of financial instruments	The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2018 and December 31, 2017. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2018 Financial Instruments – Assets Net Loans $ 526,689 $ 514,232 $ — $ 505,402 $ 8,830 Financial Instruments – Liabilities Time Deposits 258,926 258,512 — 258,512 — FHLB Advances 7,000 7,296 — 7,296 — Trust Preferred Securities 16,496 16,496 — 16,496 — 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)	9 Months Ended
	Sep. 30, 2018
Noninterest Expenses
NONINTEREST EXPENSES	Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Advertising $ 340 $ 316 $ 79 $ 110 ATM network expense 1,272 1,232 430 401 Legal and professional fees 1,057 926 284 301 Loan related expenses 480 500 150 167 Printing and supplies 248 88 46 34 FDIC insurance premiums 279 298 98 86 Other real estate owned, net 772 1,280 411 227 Other 1,840 1,545 501 502 Total noninterest expenses $ 6,288 $ 6,185 $ 1,999 $ 1,828

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Net income	$ 208	$ 484	$ 239	$ 3,176
Weighted average shares outstanding	23,922,086	23,355,580	23,922,086	23,355,611
Weighted average dilutive shares outstanding	23,922,086	23,355,580	23,922,086	23,355,611
Basic and diluted income per share	$ 0.01	$ 0.02	$ 0.01	$ 0.14

CAPITAL (Details)

CAPITAL (Details) - Bank - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total Capital to Risk Weighted Assets, Actual, Amount	$ 69,080	$ 68,787
Total Capital to Risk Weighted Assets, Actual, Ratio	14.57%	15.30%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 37,928	$ 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	$ 47,411	$ 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	$ 63,800	$ 63,160
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	13.46%	14.05%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 28,446	$ 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	$ 37,928	$ 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	$ 63,800	$ 63,160
Tier 1 Capital to Average Assets, Actual, Ratio	9.39%	9.56%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 27,170	$ 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	$ 33,962	$ 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	$ 63,800	$ 63,160
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	13.46%	14.05%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 21,335	$ 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	$ 30,817	$ 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	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost	$ 62,797	$ 71,839
Gross Unrealized Gains	61	259
Gross Unrealized Losses	(2,467)	(1,010)
Approximate Fair Value	60,391	71,088
US Government Agencies [Member]
Amortized Cost	20,792	23,986
Gross Unrealized Gains	3	79
Gross Unrealized Losses	(607)	(221)
Approximate Fair Value	20,188	23,844
Taxable Municipals [Member]
Amortized Cost	4,438	4,466
Gross Unrealized Gains		9
Gross Unrealized Losses	(227)	(78)
Approximate Fair Value	4,211	4,397
Corporate Bonds [Member]
Amortized Cost	5,426	5,437
Gross Unrealized Gains	57	168
Gross Unrealized Losses	(137)	(26)
Approximate Fair Value	5,346	5,579
Mortgage Backed Securities [Member]
Amortized Cost	32,141	37,950
Gross Unrealized Gains	1	3
Gross Unrealized Losses	(1,496)	(685)
Approximate Fair Value	$ 30,646	$ 37,268

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Less than 12 Months	$ 18,611	$ 26,470
Unrealized Losses, Less than 12 Months	(620)	(284)
Fair Value, 12 Months or More	36,971	29,456
Unrealized Losses, 12 Months or More	(1,847)	(726)
Fair Value, Total	55,582	55,926
Unrealized Losses, Total	(2,467)	(1,010)
US Government Agencies [Member]
Fair Value, Less than 12 Months	8,959	7,840
Unrealized Losses, Less than 12 Months	(162)	(69)
Fair Value, 12 Months or More	9,406	7,189
Unrealized Losses, 12 Months or More	(445)	(152)
Fair Value, Total	18,365	15,029
Unrealized Losses, Total	(607)	(221)
Taxable Municipals [Member]
Fair Value, Less than 12 Months	2,706	2,403
Unrealized Losses, Less than 12 Months	(148)	(44)
Fair Value, 12 Months or More	1,505	767
Unrealized Losses, 12 Months or More	(79)	(34)
Fair Value, Total	4,211	3,170
Unrealized Losses, Total	(227)	(78)
Corporate Bonds [Member]
Fair Value, Less than 12 Months	2,393	1,507
Unrealized Losses, Less than 12 Months	(137)	(26)
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	2,393	1,507
Unrealized Losses, Total	(137)	(26)
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	4,553	14,720
Unrealized Losses, Less than 12 Months	(173)	(145)
Fair Value, 12 Months or More	26,060	21,500
Unrealized Losses, 12 Months or More	(1,323)	(540)
Fair Value, Total	30,613	36,220
Unrealized Losses, Total	$ (1,496)	$ (685)

INVESTMENT SECURITIES (Detail_2

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Investment Securities Activity
Gross gains realized		$ 30		$ 30
Gross losses realized		(30)		(30)
Net realized gains

INVESTMENT SECURITIES (Detail_3

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Investment Securities Activity
Due in one year or less, Amortized Cost	$ 32
Due after one year through five years, Amortized Cost	4,656
Due after five years through ten years, Amortized Cost	14,955
Due after ten years, Amortized Cost	43,154
Amortized Cost, Total	62,797	$ 71,839
Due in one year or less, Fair Value	33
Due after one year through five years, Fair Value	4,560
Due after five years through ten years, Fair Value	14,499
Due after ten years, Fair Value	41,299
Approximate Fair Value	$ 60,391	$ 71,088
Due in one year or less, Weighted Average Yield	0.00%
Due after one year through five years, Weighted Average Yield	2.53%
Due after five years through ten years, Weighted Average Yield	3.20%
Due after ten years, Weighted Average Yield	2.40%
Weighted Average Yield, Total	2.60%

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total loans and leases	$ 531,969	$ 513,008
Real Estate [Member]
Total loans and leases	453,042	445,089
Commercial [Member]
Total loans and leases	49,945	41,345
Commercial [Member] | Real Estate [Member]
Total loans and leases	139,384	127,688
Construction and Land Development | Real Estate [Member]
Total loans and leases	29,403	29,763
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	249,138	249,159
Multifamily | Real Estate [Member]
Total loans and leases	13,461	15,481
Farmland | Real Estate [Member]
Total loans and leases	21,656	22,998
Agriculture
Total loans and leases	4,895	3,494
Consumer Installment Loans
Total loans and leases	23,471	22,411
Commercial Real Estate [Member]
Total loans and leases	49,945	41,345
Other Loans
Total loans and leases	$ 616	$ 669

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total loans receivable on nonaccrual status	$ 6,599	$ 7,564
Real Estate [Member]
Total loans receivable on nonaccrual status	6,504	6,448
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	1,665	800
Commercial [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	970	2,035
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	186	470
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	3,604	2,991
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	79	152
Consumer Installment Loans
Total loans receivable on nonaccrual status	34	48
Commercial Real Estate [Member]
Total loans receivable on nonaccrual status	61	1,065
Agriculture
Total loans receivable on nonaccrual status		$ 3

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Recorded Investment	$ 9,137	$ 12,640
Unpaid Principal Balance	10,174	13,926
Related Allowance	307	1,246
Impaired Financing Receivables With No Related Allowance [Member] | Commercial Real Estate [Member]
Recorded Investment	14	628
Unpaid Principal Balance	14	628
Impaired Financing Receivables With No Related Allowance [Member] | Commercial Real Estate [Member] | Real Estate [Member]
Recorded Investment	2,656	2,646
Unpaid Principal Balance	2,762	2,719
Impaired Financing Receivables With No Related Allowance [Member] | Construction and Land Development | Real Estate [Member]
Recorded Investment	140	424
Unpaid Principal Balance	409	680
Impaired Financing Receivables With No Related Allowance [Member] | Residential 1-4 Family | Real Estate [Member]
Recorded Investment	3,043	3,586
Unpaid Principal Balance	3,327	3,885
Impaired Financing Receivables With No Related Allowance [Member] | Multifamily | Real Estate [Member]
Recorded Investment	79	281
Unpaid Principal Balance	120	321
Impaired Financing Receivables With No Related Allowance [Member] | Farmland | Real Estate [Member]
Recorded Investment	1,770	1,264
Unpaid Principal Balance	1,954	1,664
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans
Recorded Investment		8
Unpaid Principal Balance		8
Impaired Financing Receivables With No Related Allowance [Member] | Agriculture
Recorded Investment		12
Unpaid Principal Balance		12
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | Real Estate [Member]
Recorded Investment	542	2,503
Unpaid Principal Balance	661	2,622
Related Allowance	46	499
Impaired Financing Receivables With Related Allowance [Member] | Residential 1-4 Family | Real Estate [Member]
Recorded Investment	431	421
Unpaid Principal Balance	453	437
Related Allowance	114	91
Impaired Financing Receivables With Related Allowance [Member] | Farmland | Real Estate [Member]
Recorded Investment	346	378
Unpaid Principal Balance	358	378
Related Allowance	131	243
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans
Recorded Investment	7
Unpaid Principal Balance	7
Related Allowance	1
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member]
Recorded Investment	109	489
Unpaid Principal Balance	109	572
Related Allowance	15	$ 413
Impaired Financing Receivables With Related Allowance [Member] | Other Loans
Related Allowance

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Impaired loans without a valuation allowance:
Average Recorded Investment	$ 9,266	$ 12,963	$ 10,487	$ 13,460
Interest Income Recognized	109	202	322	485
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	10		166
Interest Income Recognized			1
Impaired loans with valuation allowance:
Average Recorded Investment	110	497	293	282
Interest Income Recognized		8	2	24
Impaired Financing Receivables With Related Allowance [Member] | Agriculture
Impaired loans without a valuation allowance:
Average Recorded Investment	1	18	4	19
Interest Income Recognized				1
Impaired loans with valuation allowance:
Average Recorded Investment				2
Interest Income Recognized
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans
Impaired loans with valuation allowance:
Average Recorded Investment	7		6	2
Interest Income Recognized			1
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans
Impaired loans without a valuation allowance:
Average Recorded Investment		9	2	13
Interest Income Recognized
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans with valuation allowance:
Average Recorded Investment		209		222
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	145		220	2
Interest Income Recognized	1		1
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans with valuation allowance:
Average Recorded Investment	393	567	391	634
Interest Income Recognized	6	5	13	14
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	3,093	3,833	3,229	3,827
Interest Income Recognized	50	50	137	152
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans with valuation allowance:
Average Recorded Investment		1,321		660
Interest Income Recognized		16		48
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	80	287	163
Interest Income Recognized	1	4	5
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans with valuation allowance:
Average Recorded Investment	357	756	365	673
Interest Income Recognized		10		26
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	1,816	1,193	1,515	2,538
Interest Income Recognized	9	26	51	52
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Impaired loans with valuation allowance:
Average Recorded Investment	544	1,516	1,409	1,208
Interest Income Recognized		74	16	80
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Impaired loans without a valuation allowance:
Average Recorded Investment	2,710	2,757	2,724	2,976
Interest Income Recognized	$ 41	$ 9	$ 95	$ 73

LOANS_ (Details 4)

LOANS: (Details 4) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans 30-59 Days Past Due	$ 2,340	$ 4,725
Loans 60-89 Days Past Due	1,448	3,149
Loans 90 or More Days Past Due	1,688	2,095
Total Past Due Loans	5,476	9,969
Current Loans	526,493	503,039
Total loans and leases	531,969	513,008
Real Estate [Member]
Loans 30-59 Days Past Due	2,255	4,482
Loans 60-89 Days Past Due	1,446	3,109
Loans 90 or More Days Past Due	1,612	1,464
Total Past Due Loans	5,313	9,055
Current Loans	447,729	436,034
Total loans and leases	453,042	445,089
Commercial [Member]
Total loans and leases	49,945	41,345
Commercial [Member] | Real Estate [Member]
Loans 30-59 Days Past Due		190
Loans 60-89 Days Past Due	176	2,396
Loans 90 or More Days Past Due	578	453
Total Past Due Loans	754	3,039
Current Loans	138,630	124,649
Total loans and leases	139,384	127,688
Residential 1-4 Family | Real Estate [Member]
Loans 30-59 Days Past Due	2,201	3,789
Loans 60-89 Days Past Due	461	378
Loans 90 or More Days Past Due	711	969
Total Past Due Loans	3,373	5,136
Current Loans	245,765	244,023
Total loans and leases	249,138	249,159
Multifamily | Real Estate [Member]
Loans 30-59 Days Past Due		125
Loans 60-89 Days Past Due		89
Total Past Due Loans		214
Current Loans	13,461	15,267
Total loans and leases	13,461	15,481
Farmland | Real Estate [Member]
Loans 30-59 Days Past Due	40	309
Loans 60-89 Days Past Due	809
Loans 90 or More Days Past Due	281
Total Past Due Loans	1,130	309
Current Loans	20,526	22,689
Total loans and leases	21,656	22,998
Commercial Real Estate [Member]
Loans 30-59 Days Past Due	65	103
Loans 60-89 Days Past Due		25
Loans 90 or More Days Past Due	61	603
Total Past Due Loans	126	731
Current Loans	49,819	40,614
Total loans and leases	49,945	41,345
Agriculture
Loans 30-59 Days Past Due		38
Loans 90 or More Days Past Due	7
Total Past Due Loans	7	38
Current Loans	4,888	3,456
Total loans and leases	4,895	3,494
Consumer Installment Loans
Loans 30-59 Days Past Due	20	102
Loans 60-89 Days Past Due	2	15
Loans 90 or More Days Past Due	8	28
Total Past Due Loans	30	145
Current Loans	23,441	22,266
Total loans and leases	23,471	22,411
Other Loans
Current Loans	616	669
Total loans and leases	616	669
Construction and Land Development | Real Estate [Member]
Loans 30-59 Days Past Due	14	69
Loans 60-89 Days Past Due		246
Loans 90 or More Days Past Due	42	42
Total Past Due Loans	56	357
Current Loans	29,347	29,406
Total loans and leases	$ 29,403	$ 29,763

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total	$ 531,969	$ 513,008
Pass
Total	514,124	489,049
Special Mention
Total	9,342	12,076
Substandard
Total	8,503	11,883
Real Estate [Member] | Pass
Total	438,051	424,582
Real Estate [Member] | Special Mention
Total	6,631	9,744
Real Estate [Member] | Substandard
Total	8,360	10,763
Real Estate [Member]
Total	453,042	445,089
Agriculture
Total	4,895	3,494
Agriculture | Pass
Total	4,875	3,468
Agriculture | Special Mention
Total	6	23
Agriculture | Substandard
Total	14	3
Commercial Portfolio Segment [Member] | Pass
Total	47,179	37,973
Commercial Portfolio Segment [Member] | Special Mention
Total	2,705	2,307
Commercial Portfolio Segment [Member] | Substandard
Total	61	1,065
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	135,856	120,104
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	1,918	3,228
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	1,610	4,356
Farmland | Real Estate [Member] | Pass
Total	17,626	19,273
Farmland | Real Estate [Member] | Special Mention
Total	2,300	2,445
Farmland | Real Estate [Member] | Substandard
Total	1,730	1,280
Farmland | Real Estate [Member]
Total	21,656	22,998
Multifamily | Real Estate [Member] | Pass
Total	13,261	13,695
Multifamily | Real Estate [Member] | Special Mention
Total	67	1,445
Multifamily | Real Estate [Member] | Substandard
Total	133	341
Multifamily | Real Estate [Member]
Total	13,461	15,481
Residential 1-4 Family | Real Estate [Member] | Pass
Total	242,853	243,048
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	1,603	1,810
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	4,682	4,301
Residential 1-4 Family | Real Estate [Member]
Total	249,138	249,159
Construction and Land Development | Real Estate [Member] | Pass
Total	28,455	28,462
Construction and Land Development | Real Estate [Member] | Special Mention
Total	743	816
Construction and Land Development | Real Estate [Member] | Substandard
Total	205	485
Construction and Land Development | Real Estate [Member]
Total	29,403	29,763
Consumer Installment Loans
Total	23,471	22,411
Consumer Installment Loans | Pass
Total	23,403	22,357
Consumer Installment Loans | Special Mention
Total		2
Consumer Installment Loans | Substandard
Total	68	52
Commercial [Member]
Total	49,945	41,345
Commercial [Member] | Real Estate [Member]
Total	139,384	127,688
Other Loans
Total	616	669
Other Loans | Pass
Total		669
Commercial Real Estate [Member]
Total	$ 49,945	$ 41,345

ALLOWANCE FOR LOAN LOSSES_ (Det

ALLOWANCE FOR LOAN LOSSES: (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Balance, beginning of year	$ 6,196	$ 6,072	$ 6,072
Charge Offs	(1,434)		(1,105)
Recoveries	329		779
Provision for loan losses	189		450
Balance, End of period	5,280		6,196
Commercial Real Estate [Member]
Balance, beginning of year	660	163	163
Charge Offs	(617)		(11)
Recoveries	77		153
Provision for loan losses	260		355
Balance, End of period	380		660
Unallocated
Balance, beginning of year	256	739	739
Charge Offs
Provision for loan losses	321		(483)
Balance, End of period	577		256
Agriculture
Balance, beginning of year	20	31	31
Charge Offs			(4)
Recoveries	1		5
Provision for loan losses	12		(12)
Balance, End of period	33		20
Consumer Installment Loans
Balance, beginning of year	156	123	123
Charge Offs	(59)		(147)
Recoveries	38		19
Provision for loan losses	16		161
Balance, End of period	151		156
Other Loans
Balance, beginning of year	3
Charge Offs
Provision for loan losses			3
Balance, End of period	3		3
Real Estate [Member]
Balance, beginning of year	5,101	5,016	5,016
Charge Offs	(758)		(943)
Recoveries	213		602
Provision for loan losses	(420)		426
Balance, End of period	4,136		5,101
Real Estate [Member] | Commercial Real Estate [Member]
Balance, beginning of year	1,989	163	163
Charge Offs	(334)		(179)
Recoveries	73		193
Provision for loan losses	(345)		350
Balance, End of period	1,383		1,989
Real Estate [Member] | Construction and Land Development
Balance, beginning of year	191	346	346
Charge Offs	(96)		(1)
Recoveries	12
Provision for loan losses	64		(154)
Balance, End of period	171		191
Real Estate [Member] | Residential 1-4 Family
Balance, beginning of year	2,400	2,376	2,376
Charge Offs	(270)		(714)
Recoveries	62		48
Provision for loan losses	17		690
Balance, End of period	2,209		2,400
Real Estate [Member] | Multifamily
Balance, beginning of year	106	241	241
Charge Offs
Provision for loan losses	(15)		(135)
Balance, End of period	91		106
Real Estate [Member] | Farmland
Balance, beginning of year	415	$ 428	428
Charge Offs	(58)		(49)
Recoveries	66		361
Provision for loan losses	(141)		(325)
Balance, End of period	$ 282		$ 415

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 307	$ 1,246
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,973	4,950
Allowance for loan losses	5,280	6,196	$ 6,072
Recorded Investment in Loans, Individually Evaluated for Impairment	9,137	12,640
Recorded Investment in Loans, Collectively Evaluated for Impairment	522,832	500,368
Recorded Investment in Loans, Total	531,969	513,008
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	291	833
Allowance for Loan Losses, Collectively Evaluated for Impairment	3,845	4,268
Allowance for loan losses	4,136	5,101
Recorded Investment in Loans, Individually Evaluated for Impairment	9,007	11,503
Recorded Investment in Loans, Collectively Evaluated for Impairment	444,035	433,586
Recorded Investment in Loans, Total	453,042	445,089
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Collectively Evaluated for Impairment	171	191
Allowance for loan losses	171	191
Recorded Investment in Loans, Individually Evaluated for Impairment	140	424
Recorded Investment in Loans, Collectively Evaluated for Impairment	29,263	29,339
Recorded Investment in Loans, Total	29,403	29,763
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	114	91
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,095	2,309
Allowance for loan losses	2,209	2,400
Recorded Investment in Loans, Individually Evaluated for Impairment	3,474	4,007
Recorded Investment in Loans, Collectively Evaluated for Impairment	245,664	245,152
Recorded Investment in Loans, Total	249,138	249,159
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Collectively Evaluated for Impairment	91	106
Allowance for loan losses	91	106
Recorded Investment in Loans, Individually Evaluated for Impairment	79	281
Recorded Investment in Loans, Collectively Evaluated for Impairment	13,382	15,200
Recorded Investment in Loans, Total	13,461	15,481
Commercial [Member]
Recorded Investment in Loans, Total	49,945	41,345
Commercial [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	46	499
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,337	1,490
Allowance for loan losses	1,383	1,989
Recorded Investment in Loans, Individually Evaluated for Impairment	3,198	5,149
Recorded Investment in Loans, Collectively Evaluated for Impairment	136,186	122,539
Recorded Investment in Loans, Total	139,384	127,688
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	15	413
Allowance for Loan Losses, Collectively Evaluated for Impairment	365	247
Allowance for loan losses	380	660	163
Recorded Investment in Loans, Individually Evaluated for Impairment	123	1,117
Recorded Investment in Loans, Collectively Evaluated for Impairment	49,822	40,228
Recorded Investment in Loans, Total	49,945	41,345
Agriculture
Allowance for Loan Losses, Collectively Evaluated for Impairment	33	20
Allowance for loan losses	33	20	31
Recorded Investment in Loans, Individually Evaluated for Impairment		12
Recorded Investment in Loans, Collectively Evaluated for Impairment	4,895	3,482
Recorded Investment in Loans, Total	4,895	3,494
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment	1
Allowance for Loan Losses, Collectively Evaluated for Impairment	150	156
Allowance for loan losses	151	156	123
Recorded Investment in Loans, Individually Evaluated for Impairment	7	8
Recorded Investment in Loans, Collectively Evaluated for Impairment	23,464	22,403
Recorded Investment in Loans, Total	23,471	22,411
Other Loans
Allowance for Loan Losses, Collectively Evaluated for Impairment	3	3
Allowance for loan losses	3	3
Recorded Investment in Loans, Collectively Evaluated for Impairment	616	669
Recorded Investment in Loans, Total	616	669
Unallocated
Allowance for Loan Losses, Collectively Evaluated for Impairment	577	256
Allowance for loan losses	577	256	$ 739
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	131	243
Allowance for Loan Losses, Collectively Evaluated for Impairment	151	172
Allowance for loan losses	282	415
Recorded Investment in Loans, Individually Evaluated for Impairment	2,116	1,642
Recorded Investment in Loans, Collectively Evaluated for Impairment	19,540	21,356
Recorded Investment in Loans, Total	$ 21,656	$ 22,998

TROUBLED DEBT RESTRUCTURINGS (D

TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)loans	Sep. 30, 2017USD ($)loans
# of Loans | loans		1
Pre-Mod. Recorded Investment	$ 443	$ 443
Post-Mod. Recorded Investment	$ 443	443
Commercial [Member]
# of Loans | loans	1
Pre-Mod. Recorded Investment	$ 443	443
Post-Mod. Recorded Investment	$ 443	$ 443

TROUBLED DEBT RESTRUCTURINGS _2

TROUBLED DEBT RESTRUCTURINGS (Details Narrative)	9 Months Ended
	Sep. 30, 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	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Real Estate [Abstract]
Balance, beginning of year	$ 6,859	$ 10,655
Additions	1,636	3,087
Transfers from premises and equipment		125
Proceeds from sales	(1,046)	(4,742)
Proceeds from insurance claims		(12)
Loans made to finance sales	(467)	(1,477)
Adjustment of carrying value	(421)	(758)
Deferred gain from sales		45
Losses from sales	(96)	(64)
Balance, end of year	$ 6,465	$ 6,859

FAIR VALUES (Details)

FAIR VALUES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Measurements, Recurring [Member]
Available for sale investments		$ 71,088
Nonrecurring Basis [Member]
Total	$ 15,295	18,253
Fair Value, Inputs, Level 2 [Member]
Available for sale investments	60,391
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member]
Available for sale investments	20,188	23,844
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals [Default Label]
Available for sale investments	4,211	4,397
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member]
Available for sale investments	5,346	5,579
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Available for sale investments	30,646	37,268
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	6,465	6,859
Impaired Loans	$ 8,830	$ 11,394

FAIR VALUES (Details 1)

FAIR VALUES (Details 1) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Impaired Loans
Fair Value	$ 8,830
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note</font></p>" id="sjs-B5">&lt;p>&lt;font style="font: 10pt Times New Roman, Times, Serif">Appraised Value/Discounted Cash Flows/Market Value of Note&lt;/font>&lt;/p>
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell</font></p>" id="sjs-B6">&lt;p>&lt;font style="font: 10pt Times New Roman, Times, Serif">Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell&lt;/font>&lt;/p>
Impaired Loans | Minimum [Member]
General Range of Significant Unobservable Input Values	0.00%
Impaired Loans | Maximum [Member]
General Range of Significant Unobservable Input Values	18.00%
Other Real Estate Owned
Fair Value	$ 6,465
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources</font></p>" id="sjs-B13">&lt;p>&lt;font style="font: 10pt Times New Roman, Times, Serif">Appraised Value/Comparable Sales/Other Estimates from Independent Sources&lt;/font>&lt;/p>
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell</font></p>" id="sjs-B14">&lt;p>&lt;font style="font: 10pt Times New Roman, Times, Serif">Discounts to reflect current market conditions and estimated costs to sell&lt;/font>&lt;/p>
Other Real Estate Owned | Minimum [Member]
General Range of Significant Unobservable Input Values	0.00%
Other Real Estate Owned | Maximum [Member]
General Range of Significant Unobservable Input Values	0.18%

FAIR VALUES (Details 2)

FAIR VALUES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Net Loans	$ 526,689	$ 506,812
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Net Loans	526,689	506,812
Time deposits	258,926	272,330
FHLB advances	7,000	7,558
Trust Preferred Securities	16,496	16,496
Fair Value, Measurements, Recurring [Member]
Net Loans	514,232	506,608
Time deposits	258,512	272,352
FHLB advances	7,296	7,794
Trust Preferred Securities	16,496	16,496
Fair Value, Inputs, Level 2 [Member]
Net Loans	505,402	495,214
Time deposits	258,512	272,352
FHLB advances	7,296	7,794
Trust Preferred Securities	16,496	16,496
Fair Value, Inputs, Level 3 [Member]
Net Loans	$ 8,830	$ 11,394

NONINTEREST EXPENSES (Details)

NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Noninterest Expenses Details
Advertising	$ 340	$ 316	$ 79	$ 110
ATM network expense	1,272	1,232	430	401
Legal and professional fees	1,057	926	284	301
Loan related expenses	480	500	150	167
Printing and supplies	248	88	46	34
FDIC insurance premiums	279	298	98	86
Other real estate owned, net	772	1,280	411	227
Other	1,840	1,545	501	502
Total other operating expenses	$ 6,288	$ 6,185	$ 1,999	$ 1,828