New Peoples Bankshares (NWPP) 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	0001163389
Document Type	10-Q
Trading Symbol	NWPP
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,922,086
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 6,940	$ 6,458
Federal funds sold	2
Interest-earning deposits with banks	243	65
Investments	368	408
Dividends on equity securities (restricted)	38	35
Total Interest and Dividend Income	7,591	6,966
INTEREST EXPENSE
Deposits	1,260	696
Borrowed funds	236	192
Total Interest Expense	1,496	888
NET INTEREST INCOME	6,095	6,078
PROVISION FOR LOAN LOSSES	135	63
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,960	6,015
NONINTEREST INCOME
Service charges and fees	841	867
Card processing and interchange	679	655
Insurance and investment fees	161	74
Other noninterest income	96	154
Total Noninterest Income	1,777	1,750
NONINTEREST EXPENSES
Salaries and employee benefits	3,646	3,644
Occupancy and equipment expense	1,149	1,292
Data processing and telecommunications	655	604
Other operating expenses	1,778	2,099
Total Noninterest Expenses	7,228	7,639
INCOME BEFORE INCOME TAXES	509	126
INCOME TAX EXPENSE	103	46
NET INCOME	$ 406	$ 80
Income Per Share
Basic (in dollars per share)	$ 0.02	$ 0
Fully Diluted (in dollars per share)	$ 0.02	$ 0
Weighted Average Shares of Common Stock
Basic (in shares)	23,922,086	23,922,086
Fully Diluted (in shares)	23,922,086	23,922,086

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 406	$ 80
Investment Securities Activity
Unrealized gains (losses) arising during the period	467	(1,041)
Tax related to unrealized (gains) losses	(97)	220
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	370	(821)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 776	$ (741)

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 11,829	$ 12,245
Interest-bearing deposits with banks	52,051	15,664
Federal funds sold	240	264
Total Cash and Cash Equivalents	64,120	28,173
Investment securities available-for-sale	58,001	59,407
Loans receivable	553,585	547,096
Allowance for loan losses	(5,467)	(5,336)
Net Loans	548,118	541,760
Bank premises and equipment, net	24,059	24,195
Other real estate owned	4,855	5,937
Accrued interest receivable	2,107	1,934
Deferred taxes, net	5,274	5,476
Right-of-use assets - operating leases	4,863	4,942
Other assets	10,471	10,318
Total Assets	721,868	682,142
Deposits:
Noninterest bearing	177,544	164,298
Interest bearing	460,865	431,694
Total Deposits	638,409	595,992
Borrowed funds	23,496	27,126
Lease liabilities - operating leases	4,863	4,942
Accrued interest payable	708	587
Accrued expenses and other liabilities	2,366	2,245
Total Liabilities	669,842	630,892
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at March 31, 2019 and December 31, 2018	47,844	47,844
Additional paid-in-capital	14,570	14,570
Retained deficit	(9,522)	(9,928)
Accumulated other comprehensive loss	(866)	(1,236)
Total Stockholders' Equity	52,026	51,250
Total Liabilities and Stockholders' Equity	$ 721,868	$ 682,142

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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]	Additional Paid-in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			80		80
Other comprehensive loss, net of tax				(821)	(821)
Balance at end at Mar. 31, 2018	$ 47,844	14,570	(10,767)	(1,415)	50,232
Balance at end (in shares) at Mar. 31, 2018	23,922
Balance at beginning at Dec. 31, 2018	$ 47,844	14,570	(9,928)	(1,236)	$ 51,250
Balance at beginning (in shares) at Dec. 31, 2018	23,922				23,922,086
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			406		$ 406
Other comprehensive loss, net of tax				370	370
Balance at end at Mar. 31, 2019	$ 47,844	$ 14,570	$ (9,522)	$ (866)	$ 52,026
Balance at end (in shares) at Mar. 31, 2019	23,922				23,922,086

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 406	$ 80
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	609	645
Provision for loan losses	135	63
Income on bank owned life insurance	(15)	(13)
Gain on sale of premises and equipment		(5)
(Gain) loss on sale of other real estate owned	(8)	96
Adjustment of carrying value of other real estate owned	113	69
Amortization/accretion of bond premiums/discounts	144	169
Deferred tax expense (benefit)	105	46
Net change in:
Accrued interest receivable	(173)	3
Other assets	(124)	495
Accrued interest payable	121	29
Accrued expenses and other liabilities	121	(1,444)
Net Cash Provided by Operating Activities	1,434	233
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(6,391)	(4,668)
Purchase of securities available-for-sale	(790)
Proceeds from sales and maturities of securities available-for-sale	2,519	2,845
Net purchase of equity securities (restricted)	(14)	(29)
Payments for the purchase of premises and equipment	(474)	(917)
Proceeds from sale of premises and equipment	1	5
Proceeds from insurance claims on other real estate owned	19
Proceeds from sales of other real estate owned	856	739
Net Cash Used In Investing Activities	(4,274)	(2,025)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long term debt		(300)
Net change in short term borrowings	(3,630)
Net change in non-interest bearing deposits	13,246	8,610
Net change in interest bearing deposits	29,171	(1,207)
Net Cash Provided by Financing Activities	38,787	7,103
Net increase in cash and cash equivalents	35,947	5,311
Cash and Cash Equivalents, Beginning of Period	28,173	32,705
Cash and Cash Equivalents, End of Period	64,120	38,016
Supplemental Disclosure of Cash Paid During the Period for:
Interest	1,375	859
Taxes	(28)
Supplemental Disclosure of Non Cash Transactions:
Other real estate acquired in settlement of foreclosed loans		1,023
Loans made to finance sale of other real estate owned	94	267
Change in unrealized gains (losses) on securities available-for-sale	$ 467	$ (1,041)

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2019
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	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
ACCOUNTING PRINCIPLES	NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at March 31, 2019 and December 31, 2018, and the results of operations for the three-month periods ended March 31, 2019 and 2018. 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, 2018. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
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. There were no anti-dilutive potential common shares for the three months ended March 31, 2019 and 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended March 31, 2019 2018 Net income $ 406 $ 80 Weighted average shares outstanding 23,922,086 23,922,086 Dilutive shares - - Weighted average dilutive shares outstanding 23,922,086 23,922,086 Basic and diluted income per share $ 0.02 $ 0.00

CAPITAL

CAPITAL	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,611 14.43% $ 39,146 8.0% $ 48,932 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 29,359 6.0% 39,146 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 65,144 9.21% 28,280 4.0% 35,351 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 22,019 4.5% 31,806 6.5% December 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,002 14.39% $ 38,912 8.0% $ 48,640 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 29,184 6.0% 38,912 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,666 9.59% 26,960 4.0% 33,700 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 21,888 4.5% 31,616 6.5% As of March 31, 2019, 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	3 Months Ended
	Mar. 31, 2019
Investment Securities Activity
INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value March 31, 2019 U.S. Government Agencies $ 18,591 $ 36 $ (319) $ 18,308 Taxable municipals 4,419 4 (76) 4,347 Corporate bonds 5,419 59 (45) 5,433 Mortgage backed securities 30,669 21 (777) 29,913 Total Securities AFS $ 59,098 $ 120 $ (1,217) $ 58,001 December 31, 2018 U.S. Government Agencies $ 19,755 $ 26 $ (392) $ 19,389 Taxable municipals 4,428 - (115) 4,313 Corporate bonds 5,422 47 (149) 5,320 Mortgage backed securities 31,366 11 (992) 30,385 Total Securities AFS $ 60,971 $ 84 $ (1,648) $ 59,407 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 March 31, 2019 and December 31, 2018. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U.S. Government Agencies $ 1,350 $ (11) $ 14,346 $ (308) $ 15,696 $ (319) Taxable municipals - - 3,329 (76) 3,329 (76) Corporate bonds - - 1,482 (45) 1,482 (45) Mtg. backed securities 7 - 28,179 (777) 28,186 (777) Total Securities AFS $ 1,357 $ (11) $ 47,336 $ (1,206) $ 48,693 $ (1,217) December 31, 2018 U.S. Government Agencies $ 5,013 $ (68) $ 11,585 $ (324) $ 16,599 $ (392) Taxable municipals - - 4,049 (115) 4,049 (115) Corporate bonds 1,713 (43) 1,423 (106) 3,136 (149) Mtg. backed securities 165 (2) 29,245 (990) 29,410 (992) Total Securities AFS $ 6,891 $ (113) $ 46,302 $ (1,535) $ 53,194 $ (1,648) At March 31, 2019, there were 153 securities in a loss position. 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 $7.7 million and $8.0 million at March 31, 2019 and December 31, 2018, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. There were no sales of investment securities during the three month periods ended March 31, 2019 and 2018. The amortized cost and fair value of investment securities at March 31, 2019, 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 $ 7 $ 7 0.79% Due after one year through five years 4,922 4,874 2.56% Due after five years through ten years 13,505 13,357 3.40% Due after ten years 40,664 39,763 2.53% Total $ 59,098 $ 58,001 2.73% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.5 million as of March 31, 2019 and December 31, 2018, respectively.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
LOANS	NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 153,461 $ 140,862 Construction and land development 27,466 35,119 Residential 1-4 family 250,175 249,946 Multifamily 13,362 13,496 Farmland 22,394 22,114 Total real estate loans 466,858 461,537 Commercial 57,563 55,157 Agriculture 5,099 5,266 Consumer installment loans 23,485 24,538 All other loans 580 598 Total loans $ 553,585 $ 547,096 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 1,121 $ 784 Construction and land development 158 157 Residential 1-4 family 3,780 3,626 Multifamily 72 76 Farmland 2,101 1,637 Total real estate loans 7,232 6,300 Commercial 2,756 61 Agriculture - 1 Consumer installment loans 3 7 Total loans receivable on nonaccrual status $ 9,991 $ 6,369 Total interest income not recognized on nonaccrual loans for the three months ended March 31, 2019 and 2018 was $133 thousand and $180 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2019 and December 31, 2018: As of March 31, 2019 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,830 $ 1,884 $ - Construction and land development 103 372 - Residential 1-4 family 2,846 3,139 - Multifamily 72 114 - Farmland 1,671 1,858 - Commercial 2,672 2,687 - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 805 927 41 Construction and land development - - - Residential 1-4 family 345 362 89 Multifamily - - - Farmland 325 348 111 Commercial 70 77 13 Agriculture - - - Consumer installment loans 6 6 - All other loans - - - Total $ 10,745 $ 11,774 $ 254 As of December 31, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,887 $ 1,941 $ - Construction and land development 114 379 - Residential 1-4 family 2,880 3,168 - Multifamily 75 117 - Farmland 1,693 1,880 - Commercial - - - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 435 539 40 Construction and land development - - - Residential 1-4 family 431 454 132 Multifamily - - - Farmland 345 358 132 Commercial 109 109 13 Agriculture - - - Consumer installment loans 7 7 1 All other loans - - - Total $ 7,976 $ 8,952 $ 318 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Three Months Ended March 31, 2019 March 31, 2018 (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 $ 1,858 22 $ 2,737 $ 28 Construction and land development 109 - 295 - Residential 1-4 family 2,864 39 3,365 42 Multifamily 74 1 247 4 Farmland 1,682 7 1,215 12 Commercial 1,336 11 321 - Agriculture - - 8 - Consumer installment loans - - 4 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 620 - 2,275 16 Construction and land development - - - - Residential 1-4 family 388 3 390 4 Multifamily - - - - Farmland 335 - 373 - Commercial 90 - 475 - Agriculture - - - - Consumer installment loans 7 - 4 - All other loans - - - - Total $ 9,363 $ 83 $ 11,709 $ 106 An age analysis of past due loans receivable is below. At March 31, 2019 and December 31, 2018, there were no loans over 90 days past due that were accruing. As of March 31, 2019 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,231 $ - $ 92 $ 1,323 $ 152,138 $ 153,461 Construction and land development 27 - 43 70 27,396 27,466 Residential 1-4 family 2,909 481 467 3,857 246,318 250,175 Multifamily 271 - - 271 13,091 13,362 Farmland 106 - 1,526 1,632 20,762 22,394 Total real estate loans 4,544 481 2,218 7,513 459,705 466,858 Commercial 2,972 66 30 3,068 54,495 57,563 Agriculture 15 - - 15 5,084 5,099 Consumer installment Loans 81 2 - 83 23,402 23,485 All other loans - - - - 580 580 Total loans $ 7,612 $ 549 $ 2,158 $ 10,319 $ 543,266 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 80 $ 31 $ 137 $ 248 $ 140,614 $ 140,862 Construction and land development 70 - 27 97 35,022 35,119 Residential 1-4 family 3,468 564 525 4,557 245,389 249,946 Multifamily - 273 - 273 13,223 13,496 Farmland 316 - 1090 1406 20,708 22,114 Total real estate loans 3,934 868 1,779 6,581 454,956 461,537 Commercial 68 - 61 129 55,028 55,157 Agriculture 22 - - 22 5,244 5,266 Consumer installment Loans 74 15 - 89 24,449 24,538 All other loans - - - - 598 598 Total loans $ 4,098 $ 883 $ 1,840 $ 6,821 $ 540,275 $ 547,096 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of March 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 150,594 $ 1,746 $ 1,121 $ 153,461 Construction and land development 26,991 316 159 27,466 Residential 1-4 family 244,666 1,202 4,307 250,175 Multifamily 13,290 - 72 13,362 Farmland 18,369 2,058 1,967 22,394 Total real estate loans 453,910 5,322 7,626 466,858 Commercial 51,819 2,988 2,756 57,563 Agriculture 5,094 5 - 5,099 Consumer installment loans 23,480 - 5 23,485 All other loans 580 - - 580 Total $ 534,883 $ 8,315 $ 10,387 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 137,146 $ 2,890 $ 826 $ 140,862 Construction and land development 34,231 718 170 35,119 Residential 1-4 family 243,950 1,523 4,473 249,946 Multifamily 13,357 63 76 13,496 Farmland 18,126 2,331 1,657 22,114 Total real estate loans 446,810 7,525 7,202 461,537 Commercial 52,156 2,940 61 55,157 Agriculture 5,255 10 1 5,266 Consumer installment loans 24,493 35 10 24,538 All other loans 598 - - 598 Total $ 529,312 $ 10,510 $ 7,274 $ 547,096

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2019
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 quarter ended March 31, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of March 31, 2019 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,386 $ - $ - $ (22) $ 1,364 Construction and land development 202 - - (44) 158 Residential 1-4 family 2,437 (45) 30 (131) 2,291 Multifamily 89 - - 3 92 Farmland 287 - 5 (15) 277 Total real estate loans 4,401 (45) 35 (209) 4,182 Commercial 448 (39) 44 90 543 Agriculture 37 - 1 (1) 37 Consumer installment loans 172 (28) 28 (7) 165 All other loans 3 - - (1) 2 Unallocated 275 - - 263 538 Total $ 5,336 $ (112) $ 108 $ 135 $ 5,467 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2019 (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 $ 41 $ 1,323 $ 1,364 $ 2,635 $ 150,826 $ 153,461 Construction and land development - 158 158 103 27,363 27,466 Residential 1-4 family 89 2,202 2,291 3,191 246,984 250,175 Multifamily - 92 92 72 13,290 13,362 Farmland 111 166 277 1,996 20,398 22,394 Total real estate loans 241 3,941 4,182 7,997 458,861 466,858 Commercial 13 530 543 2,742 54,821 57,563 Agriculture - 37 37 - 5,099 5,099 Consumer installment loans - 165 165 6 23,479 23,485 All other loans - 2 2 - 580 580 Unallocated - 538 538 - - - Total $ 254 $ 5,213 $ 5,467 $ 10,745 $ 542,840 $ 553,585 The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334) $ 73 $ (342) $ 1,389 Construction and land development 191 (96) 11 96 202 Residential 1-4 family 2,400 (290) 73 254 2,437 Multifamily 106 - - (17) 89 Farmland 415 (58) 72 (142) 287 Total real estate loans 5,101 (778) 229 (151 4,401 Commercial 660 (617) 84 321 448 Agriculture 20 - 1 16 37 Consumer installment loans 156 (75) 44 47 172 All other loans 3 - - - 3 Unallocated 256 - - 19 275 Total $ 6,196 $ (1,470) $ 358 $ 252 $ 5,336 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 40 $ 1,346 $ 1,386 $ 2,322 $ 138,540 $ 140,862 Construction and land development - 202 202 114 35,005 35,119 Residential 1-4 family 132 2,205 2,437 3,311 246,635 249,946 Multifamily - 89 89 75 13,421 13,496 Farmland 132 155 287 2,038 20,076 22,114 Total real estate loans 304 4,097 4,401 7,860 453,677 461,537 Commercial 13 435 448 109 55,048 55,157 Agriculture - 37 37 - 5,266 5,266 Consumer installment loans 1 171 172 7 24,531 24,538 All other loans - 3 3 - 598 598 Unallocated - 275 275 - - - Total $ 318 $ 5,018 $ 5,336 $ 7,976 $ 539,120 $ 547,096 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.

TROUBLED DEBT RESTRUCTURINGS

TROUBLED DEBT RESTRUCTURINGS	3 Months Ended
	Mar. 31, 2019
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At March 31, 2019 there were $5.3 million in loans that are classified as troubled debt restructurings compared to $5.4 million at December 31, 2018. The following table presents information related to loans modified as troubled debt restructurings during the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019 For the three months ended March 31, 2018 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 Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - - - - Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - - $ - $ - During the three months ended March 31, 2019, the Company did not modify any loans that were considered to be troubled debt restructurings. During the three months ended March 31, 2018, the Company did not modify any loans that were considered to be troubled debt restructurings. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. No loans previously modified as troubled debt restructurings defaulted during the three months ended March 31, 2019. No loans previously modified as troubled debt restructurings defaulted during the three months ended March 31, 2018. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further write down the carrying value of the loan.

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
OTHER REAL ESTATE OWNED	NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the three months ended March 31, 2019 and the year ended December 31, 2018: (Dollars are in thousands) March 31, 2019 December 31, 2018 Balance, beginning of period $ 5,937 $ 6,859 Additions - 1,719 Proceeds from sales (856) (1,405) Proceeds from insurance claims (19) - Loans made to finance sales (94) (569) Adjustment of carrying value (121) (542) Deferred gain from sales - 10 Losses (gains) from sales 8 (135) Balance, end of period $ 4,855 $ 5,937

FAIR VALUES

FAIR VALUES	3 Months Ended
	Mar. 31, 2019
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) March 31, 2019 Available-for-sale investments U.S. Government Agencies $ - $ 18,308 $ - Taxable municipals - 4,347 - Corporate bonds - 5,433 - Mortgage backed securities - 29,913 - Total $ - $ 58,001 $ - December 31, 2018 Available-for-sale investments U.S. Government Agencies $ - $ 19,389 $ - Taxable municipals - 4,313 - Corporate bonds - 5,320 - Mortgage backed securities - 30,385 - Total $ - $ 59,407 $ - Loans - The Company does not record loans at fair value on a recurring basis. Real estate serves as collateral on a substantial majority of the Company’s loans. When a loan is considered impaired a specific reserve may be established. Loans which are deemed to be impaired and require a reserve are primarily valued on a non-recurring basis at the fair values of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which management evaluates and determines whether or not the fair value of the collateral is further impaired below the appraised value and there is no observable market price, or whether or not an appraised value does not include estimated costs of disposition. The Company records impaired loans as nonrecurring Level 3 assets. 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) March 31, 2019 Other real estate owned $ - $ - $ 4,855 Impaired loans - - 10,491 Total $ - $ - $ 15,346 December 31, 2018 Other real estate owned $ - $ - $ 5,937 Impaired loans - - 7,658 Total $ - $ - $ 13,595 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans 10,491 $ 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 $ 4,855 $ 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 carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2019 Financial Instruments – Assets Net Loans $ 548,118 $ 538,874 $ - $ 528,383 $ 10,491 Financial Instruments – Liabilities Time Deposits 264,889 264,764 - 264,764 - FHLB Advances 7,000 7,159 - 7,159 - Trust Preferred Securities 16,496 14,603 - 14,603 - December 31, 2018 Financial Instruments – Assets Net Loans $ 541,760 $ 534,425 $ - $ 526,767 $ 7,658 Financial Instruments – Liabilities Time Deposits 258,850 258,671 - 258,671 - FHLB Advances 7,000 7,215 - 7,215 - Trust Preferred Securities 16,496 14,425 - 14,425 - Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. 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 and are excluded from the table above. The methods utilized to estimate the fair value of financial instruments at December 31, 2017 did not necessarily represent an exit price. In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at December 31, 2018 represent an approximation of exit price; however, an actual exit price may differ.

SALE AND LEASEBACK TRANSACTIONS

SALE AND LEASEBACK TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
SALE AND LEASEBACK TRANSACTIONS	NOTE 11 SALE AND LEASEBACK TRANSACTIONS: In anticipation of certain sale and leaseback transactions, the Company adopted ASU No. 2016-02 Leases (Topic 842) in 2017. 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 the fifteen year incremental borrowing rate as of May 31, 2017. The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At March 31, 2019, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2019 $ 331 2020 440 2021 416 2022 436 2023 450 Thereafter 3,965 Total lease payments 6,038 Less imputed interest 1,175 Total $ 4,863

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 12 REVENUE FROM CONTRACTS WITH CUSTOMERS All of our revenue from contracts with customers as defined in ASC 606 is recognized within Non-interest income. The following table presents Non-interest income by revenue stream for the three months ended March 31, 2019 and 2018. For the three months ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees $ 841 $ 867 Card Processing and interchange income 679 655 Insurance and investment fees 161 74 Other noninterest income 96 154 Total Noninterest Income $ 1,777 $ 1,750

NONINTEREST EXPENSES

NONINTEREST EXPENSES	3 Months Ended
	Mar. 31, 2019
Noninterest Expenses
NONINTEREST EXPENSES	NOTE 13 NONINTEREST EXPENSES: Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended March 31, (Dollars are in thousands) 2019 2018 Advertising $ 66 $ 147 ATM network expense 444 392 Legal and professional fees 282 367 Loan related expenses 121 200 Printing and supplies 39 136 FDIC insurance premiums 108 96 Other real estate owned, net 193 247 Other 525 514 Total noninterest expenses $ 1,778 $ 2,099

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 SUBSEQUENT EVENTS: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	3 Months Ended
	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	NOTE 15 RECENT ACCOUNTING DEVELOPMENTS: The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance became effective January 1, 2018. The amendment does not apply to revenue associated with financial instruments, such as loans and investment securities available for sale, and therefore had no material effect on our consolidated financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“ASC”), to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments became effective on January 1, 2018 and did not have a material effect on the financial statements. As discussed in Note 10, the Company measured the fair value of its loan portfolio using an exit price notion as of March 31, 2019. 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 As part of this evaluation, during 2018 the Company performed a preliminary test to measure the impact of a provider’s beta model against our legacy historic loss model Other providers are currently being vetted and it is planned that a new model will be tested in parallel to the existing model using data from the second and third quarters. 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 considered a PBE and has adopted these amendments as such. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s financial statements. As discussed in Note 17, 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. In October 2018, the FASB amended the Derivatives and Hedging Topic of the Accounting Standards Codification to expand the list of U.S. benchmark interest rates permitted in the application of hedge accounting. The amendments were effective for the Company for fiscal years beginning after December 15, 2018. Early adoption was permitted. These amendments did not have a material effect on the Company’s financial statements. In October 2018, the FASB amended the Consolidation topic of the Accounting Standards Codification for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years . In November 2018, the FASB amended the Collaborative Arrangements Topic of the Accounting Standards Codification to clarify the interaction between the guidance for certain collaborative arrangements and the new revenue recognition financial accounting and reporting standard. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In November 2018, the FASB issued guidance to amend the Financial Instruments—Credit Losses topic of the Accounting Standards Codification. The guidance aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019 . In December 2018, the FASB issued guidance providing narrow-scope improvements for lessors, that provides relief in the accounting for sales, use and similar taxes, the accounting for other costs paid by a lessee that may benefit a lessor, and variable payments when contracts have lease and non-lease components. The amendments were effective for the Company for reporting periods beginning after December 15, 2018. Early adoption was permitted. These amendments did not have a material effect on the Company’s financial statements. In March 2019, as part of the FASB’s ongoing annual improvements project, it amended the Leases Topic of the Accounting Standards Codification to clarify the Codification more generally and/or to correct unintended application of guidance. The amendments relate to determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, presentation on the statement of cash flows – sales-type and direct financing leases, and transition disclosures related to the Accounting Changes and Error Corrections Topic. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In April 2019, as part of the FASB’s ongoing annual improvements project, it amended various Topics of the Accounting Standards Codification related to financial instruments to clarify the Codification more generally and/or to correct unintended application of guidance. The amendments relate to Recognition and Measurement of Financial Assets and Financial Liabilities, Measurement of Credit Losses on Financial Instruments, and Targeted Improvements to Accounting for Hedging Activities. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. 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)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018, and the results of operations for the three-month periods ended March 31, 2019 and 2018. 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, 2018. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Income Per Share
Schedule of anti-dilutive income per common share	There were no anti-dilutive potential common shares for the three months ended March 31, 2019 and 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended March 31, 2019 2018 Net income $ 406 $ 80 Weighted average shares outstanding 23,922,086 23,922,086 Dilutive shares - - Weighted average dilutive shares outstanding 23,922,086 23,922,086 Basic and diluted income per share $ 0.02 $ 0.00

CAPITAL (Tables)

CAPITAL (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,611 14.43% $ 39,146 8.0% $ 48,932 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 29,359 6.0% 39,146 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 65,144 9.21% 28,280 4.0% 35,351 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 22,019 4.5% 31,806 6.5% December 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,002 14.39% $ 38,912 8.0% $ 48,640 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 29,184 6.0% 38,912 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,666 9.59% 26,960 4.0% 33,700 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 21,888 4.5% 31,616 6.5%

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Investment Securities Activity
Schedule of securities' amortized cost and estimated fair value	The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value March 31, 2019 U.S. Government Agencies $ 18,591 $ 36 $ (319) $ 18,308 Taxable municipals 4,419 4 (76) 4,347 Corporate bonds 5,419 59 (45) 5,433 Mortgage backed securities 30,669 21 (777) 29,913 Total Securities AFS $ 59,098 $ 120 $ (1,217) $ 58,001 December 31, 2018 U.S. Government Agencies $ 19,755 $ 26 $ (392) $ 19,389 Taxable municipals 4,428 - (115) 4,313 Corporate bonds 5,422 47 (149) 5,320 Mortgage backed securities 31,366 11 (992) 30,385 Total Securities AFS $ 60,971 $ 84 $ (1,648) $ 59,407
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 March 31, 2019 and December 31, 2018. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U.S. Government Agencies $ 1,350 $ (11) $ 14,346 $ (308) $ 15,696 $ (319) Taxable municipals - - 3,329 (76) 3,329 (76) Corporate bonds - - 1,482 (45) 1,482 (45) Mtg. backed securities 7 - 28,179 (777) 28,186 (777) Total Securities AFS $ 1,357 $ (11) $ 47,336 $ (1,206) $ 48,693 $ (1,217) December 31, 2018 U.S. Government Agencies $ 5,013 $ (68) $ 11,585 $ (324) $ 16,599 $ (392) Taxable municipals - - 4,049 (115) 4,049 (115) Corporate bonds 1,713 (43) 1,423 (106) 3,136 (149) Mtg. backed securities 165 (2) 29,245 (990) 29,410 (992) Total Securities AFS $ 6,891 $ (113) $ 46,302 $ (1,535) $ 53,194 $ (1,648)
Schedule of amortized cost and fair value of investment securities' contractual maturity	The amortized cost and fair value of investment securities at March 31, 2019, 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 $ 7 $ 7 0.79% Due after one year through five years 4,922 4,874 2.56% Due after five years through ten years 13,505 13,357 3.40% Due after ten years 40,664 39,763 2.53% Total $ 59,098 $ 58,001 2.73%

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Summary of loans receivable outstanding	Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 153,461 $ 140,862 Construction and land development 27,466 35,119 Residential 1-4 family 250,175 249,946 Multifamily 13,362 13,496 Farmland 22,394 22,114 Total real estate loans 466,858 461,537 Commercial 57,563 55,157 Agriculture 5,099 5,266 Consumer installment loans 23,485 24,538 All other loans 580 598 Total loans $ 553,585 $ 547,096
Summary of loans receivable on nonaccrual status	Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 1,121 $ 784 Construction and land development 158 157 Residential 1-4 family 3,780 3,626 Multifamily 72 76 Farmland 2,101 1,637 Total real estate loans 7,232 6,300 Commercial 2,756 61 Agriculture - 1 Consumer installment loans 3 7 Total loans receivable on nonaccrual status $ 9,991 $ 6,369
Summary of impaired loans	The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2019 and December 31, 2018: As of March 31, 2019 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,830 $ 1,884 $ - Construction and land development 103 372 - Residential 1-4 family 2,846 3,139 - Multifamily 72 114 - Farmland 1,671 1,858 - Commercial 2,672 2,687 - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 805 927 41 Construction and land development - - - Residential 1-4 family 345 362 89 Multifamily - - - Farmland 325 348 111 Commercial 70 77 13 Agriculture - - - Consumer installment loans 6 6 - All other loans - - - Total $ 10,745 $ 11,774 $ 254 As of December 31, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,887 $ 1,941 $ - Construction and land development 114 379 - Residential 1-4 family 2,880 3,168 - Multifamily 75 117 - Farmland 1,693 1,880 - Commercial - - - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 435 539 40 Construction and land development - - - Residential 1-4 family 431 454 132 Multifamily - - - Farmland 345 358 132 Commercial 109 109 13 Agriculture - - - Consumer installment loans 7 7 1 All other loans - - - Total $ 7,976 $ 8,952 $ 318
Summary of average impaired loans	The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Three Months Ended March 31, 2019 March 31, 2018 (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 $ 1,858 22 $ 2,737 $ 28 Construction and land development 109 - 295 - Residential 1-4 family 2,864 39 3,365 42 Multifamily 74 1 247 4 Farmland 1,682 7 1,215 12 Commercial 1,336 11 321 - Agriculture - - 8 - Consumer installment loans - - 4 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 620 - 2,275 16 Construction and land development - - - - Residential 1-4 family 388 3 390 4 Multifamily - - - - Farmland 335 - 373 - Commercial 90 - 475 - Agriculture - - - - Consumer installment loans 7 - 4 - All other loans - - - - Total $ 9,363 $ 83 $ 11,709 $ 106
Summary of age analysis of past due loans receivable	An age analysis of past due loans receivable is below. At March 31, 2019 and December 31, 2018, there were no loans over 90 days past due that were accruing. As of March 31, 2019 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,231 $ - $ 92 $ 1,323 $ 152,138 $ 153,461 Construction and land development 27 - 43 70 27,396 27,466 Residential 1-4 family 2,909 481 467 3,857 246,318 250,175 Multifamily 271 - - 271 13,091 13,362 Farmland 106 - 1,526 1,632 20,762 22,394 Total real estate loans 4,544 481 2,218 7,513 459,705 466,858 Commercial 2,972 66 30 3,068 54,495 57,563 Agriculture 15 - - 15 5,084 5,099 Consumer installment Loans 81 2 - 83 23,402 23,485 All other loans - - - - 580 580 Total loans $ 7,612 $ 549 $ 2,158 $ 10,319 $ 543,266 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 80 $ 31 $ 137 $ 248 $ 140,614 $ 140,862 Construction and land development 70 - 27 97 35,022 35,119 Residential 1-4 family 3,468 564 525 4,557 245,389 249,946 Multifamily - 273 - 273 13,223 13,496 Farmland 316 - 1090 1406 20,708 22,114 Total real estate loans 3,934 868 1,779 6,581 454,956 461,537 Commercial 68 - 61 129 55,028 55,157 Agriculture 22 - - 22 5,244 5,266 Consumer installment Loans 74 15 - 89 24,449 24,538 All other loans - - - - 598 598 Total loans $ 4,098 $ 883 $ 1,840 $ 6,821 $ 540,275 $ 547,096
Summary of risk category of loans receivable	Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of March 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 150,594 $ 1,746 $ 1,121 $ 153,461 Construction and land development 26,991 316 159 27,466 Residential 1-4 family 244,666 1,202 4,307 250,175 Multifamily 13,290 - 72 13,362 Farmland 18,369 2,058 1,967 22,394 Total real estate loans 453,910 5,322 7,626 466,858 Commercial 51,819 2,988 2,756 57,563 Agriculture 5,094 5 - 5,099 Consumer installment loans 23,480 - 5 23,485 All other loans 580 - - 580 Total $ 534,883 $ 8,315 $ 10,387 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 137,146 $ 2,890 $ 826 $ 140,862 Construction and land development 34,231 718 170 35,119 Residential 1-4 family 243,950 1,523 4,473 249,946 Multifamily 13,357 63 76 13,496 Farmland 18,126 2,331 1,657 22,114 Total real estate loans 446,810 7,525 7,202 461,537 Commercial 52,156 2,940 61 55,157 Agriculture 5,255 10 1 5,266 Consumer installment loans 24,493 35 10 24,538 All other loans 598 - - 598 Total $ 529,312 $ 10,510 $ 7,274 $ 547,096

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2019
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 quarter ended March 31, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of March 31, 2019 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,386 $ - $ - $ (22) $ 1,364 Construction and land development 202 - - (44) 158 Residential 1-4 family 2,437 (45) 30 (131) 2,291 Multifamily 89 - - 3 92 Farmland 287 - 5 (15) 277 Total real estate loans 4,401 (45) 35 (209) 4,182 Commercial 448 (39) 44 90 543 Agriculture 37 - 1 (1) 37 Consumer installment loans 172 (28) 28 (7) 165 All other loans 3 - - (1) 2 Unallocated 275 - - 263 538 Total $ 5,336 $ (112) $ 108 $ 135 $ 5,467 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2019 (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 $ 41 $ 1,323 $ 1,364 $ 2,635 $ 150,826 $ 153,461 Construction and land development - 158 158 103 27,363 27,466 Residential 1-4 family 89 2,202 2,291 3,191 246,984 250,175 Multifamily - 92 92 72 13,290 13,362 Farmland 111 166 277 1,996 20,398 22,394 Total real estate loans 241 3,941 4,182 7,997 458,861 466,858 Commercial 13 530 543 2,742 54,821 57,563 Agriculture - 37 37 - 5,099 5,099 Consumer installment loans - 165 165 6 23,479 23,485 All other loans - 2 2 - 580 580 Unallocated - 538 538 - - - Total $ 254 $ 5,213 $ 5,467 $ 10,745 $ 542,840 $ 553,585
Schedule of allocation of portion of allowance	The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334) $ 73 $ (342) $ 1,389 Construction and land development 191 (96) 11 96 202 Residential 1-4 family 2,400 (290) 73 254 2,437 Multifamily 106 - - (17) 89 Farmland 415 (58) 72 (142) 287 Total real estate loans 5,101 (778) 229 (151 4,401 Commercial 660 (617) 84 321 448 Agriculture 20 - 1 16 37 Consumer installment loans 156 (75) 44 47 172 All other loans 3 - - - 3 Unallocated 256 - - 19 275 Total $ 6,196 $ (1,470) $ 358 $ 252 $ 5,336 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 40 $ 1,346 $ 1,386 $ 2,322 $ 138,540 $ 140,862 Construction and land development - 202 202 114 35,005 35,119 Residential 1-4 family 132 2,205 2,437 3,311 246,635 249,946 Multifamily - 89 89 75 13,421 13,496 Farmland 132 155 287 2,038 20,076 22,114 Total real estate loans 304 4,097 4,401 7,860 453,677 461,537 Commercial 13 435 448 109 55,048 55,157 Agriculture - 37 37 - 5,266 5,266 Consumer installment loans 1 171 172 7 24,531 24,538 All other loans - 3 3 - 598 598 Unallocated - 275 275 - - - Total $ 318 $ 5,018 $ 5,336 $ 7,976 $ 539,120 $ 547,096

TROUBLED DEBT RESTRUCTURING (Ta

TROUBLED DEBT RESTRUCTURING (Tables)	3 Months Ended
	Mar. 31, 2019
Troubled Debt Restructurings
Schedule of loans modified as troubled debt restructurings	The following table presents information related to loans modified as troubled debt restructurings during the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019 For the three months ended March 31, 2018 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 Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - - - - Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - - $ - $ -

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of other real estate	The following table summarizes the activity in other real estate owned for the three months ended March 31, 2019 and the year ended December 31, 2018: (Dollars are in thousands) March 31, 2019 December 31, 2018 Balance, beginning of period $ 5,937 $ 6,859 Additions - 1,719 Proceeds from sales (856) (1,405) Proceeds from insurance claims (19) - Loans made to finance sales (94) (569) Adjustment of carrying value (121) (542) Deferred gain from sales - 10 Losses (gains) from sales 8 (135) Balance, end of period $ 4,855 $ 5,937

FAIR VALUES (Tables)

FAIR VALUES (Tables)	3 Months Ended
	Mar. 31, 2019
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) March 31, 2019 Available-for-sale investments U.S. Government Agencies $ - $ 18,308 $ - Taxable municipals - 4,347 - Corporate bonds - 5,433 - Mortgage backed securities - 29,913 - Total $ - $ 58,001 $ - December 31, 2018 Available-for-sale investments U.S. Government Agencies $ - $ 19,389 $ - Taxable municipals - 4,313 - Corporate bonds - 5,320 - Mortgage backed securities - 30,385 - Total $ - $ 59,407 $ - 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) March 31, 2019 Other real estate owned $ - $ - $ 4,855 Impaired loans - - 10,491 Total $ - $ - $ 15,346 December 31, 2018 Other real estate owned $ - $ - $ 5,937 Impaired loans - - 7,658 Total $ - $ - $ 13,595
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, 2019, the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans 10,491 $ 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 $ 4,855 $ 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 carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2019 Financial Instruments – Assets Net Loans $ 548,118 $ 538,874 $ - $ 528,383 $ 10,491 Financial Instruments – Liabilities Time Deposits 264,889 264,764 - 264,764 - FHLB Advances 7,000 7,159 - 7,159 - Trust Preferred Securities 16,496 14,603 - 14,603 - December 31, 2018 Financial Instruments – Assets Net Loans $ 541,760 $ 534,425 $ - $ 526,767 $ 7,658 Financial Instruments – Liabilities Time Deposits 258,850 258,671 - 258,671 - FHLB Advances 7,000 7,215 - 7,215 - Trust Preferred Securities 16,496 14,425 - 14,425 -

SALE AND LEASEBACK TRANSACTIO_2

SALE AND LEASEBACK TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of future minimum rental commitments under the non-cancellable operating leases	The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At March 31, 2019, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2019 $ 331 2020 440 2021 416 2022 436 2023 450 Thereafter 3,965 Total lease payments 6,038 Less imputed interest 1,175 Total $ 4,863

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of revenue from contracts with customers	All of our revenue from contracts with customers as defined in ASC 606 is recognized within Non-interest income. The following table presents Non-interest income by revenue stream for the three months ended March 31, 2019 and 2018. For the three months ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees $ 841 $ 867 Card Processing and interchange income 679 655 Insurance and investment fees 161 74 Other noninterest income 96 154 Total Noninterest Income $ 1,777 $ 1,750

NONINTEREST EXPENSES (Tables)

NONINTEREST EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2019
Noninterest Expenses
Schedule of operating expenses	Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended March 31, (Dollars are in thousands) 2019 2018 Advertising $ 66 $ 147 ATM network expense 444 392 Legal and professional fees 282 367 Loan related expenses 121 200 Printing and supplies 39 136 FDIC insurance premiums 108 96 Other real estate owned, net 193 247 Other 525 514 Total noninterest expenses $ 1,778 $ 2,099

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Per Share
Net income	$ 406	$ 80
Weighted average shares outstanding Dilutive shares	23,922,086	23,922,086
Weighted average dilutive shares outstanding	23,922,086	23,922,086
Basic and diluted income per share	$ 0.02	$ 0

CAPITAL (Details)

CAPITAL (Details) - Bank - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total Capital to Risk Weighted Assets, Actual, Amount	$ 70,611	$ 70,002
Total Capital to Risk Weighted Assets, Actual, Ratio	14.43%	14.39%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 39,146	$ 38,912
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	$ 48,932	$ 48,640
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	$ 65,144	$ 64,666
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	13.31%	13.29%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 29,359	$ 29,184
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	$ 39,146	$ 38,912
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	$ 65,144	$ 64,666
Tier 1 Capital to Average Assets, Actual, Ratio	9.21%	9.59%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 28,280	$ 26,960
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	$ 35,351	$ 33,700
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	$ 65,144	$ 64,666
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	13.31%	13.29%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 22,019	$ 21,888
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	$ 31,806	$ 31,616
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost	$ 59,098	$ 60,971
Gross Unrealized Gains	120	84
Gross Unrealized Losses	(1,217)	(1,648)
Approximate Fair Value	58,001	59,407
U.S. Government Agencies [Member]
Amortized Cost	18,591	19,755
Gross Unrealized Gains	36	26
Gross Unrealized Losses	(319)	(392)
Approximate Fair Value	18,308	19,389
Taxable Municipals [Member]
Amortized Cost	4,419	4,428
Gross Unrealized Gains	4
Gross Unrealized Losses	(76)	(115)
Approximate Fair Value	4,347	4,313
Corporate Bonds [Member]
Amortized Cost	5,419	5,422
Gross Unrealized Gains	59	47
Gross Unrealized Losses	(45)	(149)
Approximate Fair Value	5,433	5,320
Mortgage Backed Securities [Member]
Amortized Cost	30,669	31,366
Gross Unrealized Gains	21	11
Gross Unrealized Losses	(777)	(992)
Approximate Fair Value	$ 29,913	$ 30,385

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Less than 12 Months	$ 1,357	$ 6,891
Unrealized Losses, Less than 12 Months	(11)	(113)
Fair Value, 12 Months or More	47,336	46,302
Unrealized Losses, 12 Months or More	(1,206)	(1,535)
Fair Value, Total	48,693	53,194
Unrealized Losses, Total	(1,217)	(1,648)
U.S. Government Agencies [Member]
Fair Value, Less than 12 Months	1,350	5,013
Unrealized Losses, Less than 12 Months	(11)	(68)
Fair Value, 12 Months or More	14,346	11,585
Unrealized Losses, 12 Months or More	(308)	(324)
Fair Value, Total	15,696	16,599
Unrealized Losses, Total	(319)	(392)
Taxable Municipals [Member]
Fair Value, Less than 12 Months
Unrealized Losses, Less than 12 Months
Fair Value, 12 Months or More	3,329	4,049
Unrealized Losses, 12 Months or More	(76)	(115)
Fair Value, Total	3,329	4,049
Unrealized Losses, Total	(76)	(115)
Corporate Bonds [Member]
Fair Value, Less than 12 Months		1,713
Unrealized Losses, Less than 12 Months		(43)
Fair Value, 12 Months or More	1,482	1,423
Unrealized Losses, 12 Months or More	(45)	(106)
Fair Value, Total	1,482	3,136
Unrealized Losses, Total	(45)	(149)
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	7	165
Unrealized Losses, Less than 12 Months		(2)
Fair Value, 12 Months or More	28,179	29,245
Unrealized Losses, 12 Months or More	(777)	(990)
Fair Value, Total	28,186	29,410
Unrealized Losses, Total	$ (777)	$ (992)

INVESTMENT SECURITIES (Detail_2

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Investment Securities Activity
Due in one year or less, Amortized Cost	$ 7
Due after one year through five years, Amortized Cost	4,922
Due after five years through ten years, Amortized Cost	13,505
Due after ten years, Amortized Cost	40,664
Amortized Cost, Total	59,098	$ 60,971
Due in one year or less, Fair Value	7
Due after one year through five years, Fair Value	4,874
Due after five years through ten years, Fair Value	13,357
Due after ten years, Fair Value	39,763
Approximate Fair Value	$ 58,001	$ 59,407
Due in one year or less, Weighted Average Yield	0.79%
Due after one year through five years, Weighted Average Yield	2.56%
Due after five years through ten years, Weighted Average Yield	3.40%
Due after ten years, Weighted Average Yield	2.53%
Weighted Average Yield, Total	2.73%

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total loans and leases	$ 553,585	$ 547,096
Real Estate [Member]
Total loans and leases	466,858	461,537
Unallocated
Total loans and leases
Other Loans [Member]
Total loans and leases	580	598
Commercial [Member]
Total loans and leases		55,157
Commercial [Member] | Real Estate [Member]
Total loans and leases	153,461	140,862
Construction and Land Development [Member] | Real Estate [Member]
Total loans and leases	27,466	35,119
Residential 1-4 Family [Member] | Real Estate [Member]
Total loans and leases	250,175	249,946
Multifamily [Member] | Real Estate [Member]
Total loans and leases	13,362	13,496
Farmland [Member] | Real Estate [Member]
Total loans and leases	22,394	22,114
Commercial Real Estate [Member]
Total loans and leases	57,563	55,157
Agriculture [Member]
Total loans and leases	5,099	5,266
Consumer Installment Loans [Member]
Total loans and leases	$ 23,485	$ 24,538

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total loans receivable on nonaccrual status	$ 9,991	$ 6,369
Real Estate [Member]
Total loans receivable on nonaccrual status	7,232	6,300
Consumer Installment Loans [Member]
Total loans receivable on nonaccrual status	3	7
Commercial [Member]
Total loans receivable on nonaccrual status	2,756	61
Commercial [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	1,121	784
Construction and Land Development [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	158	157
Residential 1-4 Family [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	3,780	3,626
Multifamily [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	72	76
Farmland [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	2,101	1,637
Agriculture [Member]
Total loans receivable on nonaccrual status		$ 1

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Average Recorded Investment	$ 9,363		$ 11,709
Interest Income Recognized	83		106
Recorded Investment	10,745	$ 7,976
Unpaid Principal Balance	11,774	8,952
Related Allowance	254	318
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	7		4
Interest Income Recognized
Recorded Investment	6	7
Unpaid Principal Balance	6	7
Related Allowance		1
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment			4
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	90		475
Interest Income Recognized
Recorded Investment	70	109
Unpaid Principal Balance	77	109
Related Allowance	13	13
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	1,336		321
Interest Income Recognized	11
Recorded Investment	2,672
Unpaid Principal Balance	2,687
Related Allowance
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment			8
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	620		2,275
Interest Income Recognized			16
Recorded Investment	805	435
Unpaid Principal Balance	927	539
Related Allowance	41	40
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	1,858		2,737
Interest Income Recognized	22		28
Recorded Investment	1,830	1,887
Unpaid Principal Balance	1,884	1,941
Related Allowance
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	109		295
Interest Income Recognized
Recorded Investment	103	114
Unpaid Principal Balance	372	379
Related Allowance
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	388		390
Interest Income Recognized	3		4
Recorded Investment	345	431
Unpaid Principal Balance	362	454
Related Allowance	89	132
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	2,864		3,365
Interest Income Recognized	39		42
Recorded Investment	2,846	2,880
Unpaid Principal Balance	3,139	3,168
Related Allowance
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	74		247
Interest Income Recognized	1		4
Recorded Investment	72	75
Unpaid Principal Balance	114	117
Related Allowance
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	335		373
Interest Income Recognized
Recorded Investment	325	345
Unpaid Principal Balance	348	358
Related Allowance	111	132
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	1,682		1,215
Interest Income Recognized	7		$ 12
Recorded Investment	1,671	1,693
Unpaid Principal Balance	1,858	$ 1,880
Related Allowance

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Loans 30-59 Days Past Due	$ 7,612	$ 4,098
Loans 60-89 Days Past Due	549	883
Loans 90 or More Days Past Due	2,158	1,840
Total Past Due Loans	10,319	6,821
Current Loans	543,266	540,275
Total loans and leases	553,585	547,096
Real Estate [Member]
Loans 30-59 Days Past Due	4,544	3,934
Loans 60-89 Days Past Due	481	868
Loans 90 or More Days Past Due	2,218	1,779
Total Past Due Loans	7,513	6,581
Current Loans	459,705	454,956
Total loans and leases	466,858	461,537
Unallocated
Total loans and leases
Commercial [Member]
Loans 30-59 Days Past Due	2,972	68
Loans 60-89 Days Past Due	66
Loans 90 or More Days Past Due	30	61
Total Past Due Loans	3,068	129
Current Loans	54,495	55,028
Total loans and leases		55,157
Commercial [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	1,231	80
Loans 60-89 Days Past Due		31
Loans 90 or More Days Past Due	92	137
Total Past Due Loans	1,323	248
Current Loans	152,138	140,614
Total loans and leases	153,461	140,862
Construction and Land Development [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	27	70
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	43	27
Total Past Due Loans	70	97
Current Loans	27,396	35,022
Total loans and leases	27,466	35,119
Residential 1-4 Family [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	2,909	3,468
Loans 60-89 Days Past Due	481	564
Loans 90 or More Days Past Due	467	525
Total Past Due Loans	3,857	4,557
Current Loans	246,318	245,389
Total loans and leases	250,175	249,946
Multifamily [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	271
Loans 60-89 Days Past Due		273
Loans 90 or More Days Past Due
Total Past Due Loans	271	273
Current Loans	13,091	13,223
Total loans and leases	13,362	13,496
Farmland [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	106	316
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	1,526	1,090
Total Past Due Loans	1,632	1,406
Current Loans	20,762	20,708
Total loans and leases	22,394	22,114
Agriculture [Member]
Loans 30-59 Days Past Due	15	22
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans	15	22
Current Loans	5,084	5,244
Total loans and leases	5,099	5,266
Consumer Installment Loans [Member]
Loans 30-59 Days Past Due	81	74
Loans 60-89 Days Past Due	2	15
Loans 90 or More Days Past Due
Total Past Due Loans	83	89
Current Loans	23,402	24,449
Total loans and leases	23,485	24,538
Other Loans [Member]
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	580	598
Total loans and leases	580	598
Commercial Real Estate [Member]
Total loans and leases	$ 57,563	$ 55,157

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total loans and leases	$ 553,585	$ 547,096
Real Estate [Member]
Total loans and leases	466,858	461,537
Substandard [Member]
Total loans and leases	10,387	7,274
Special Mention [Member]
Total loans and leases	8,315	10,510
Pass [Member]
Total loans and leases	534,883	529,312
Real Estate [Member] | Substandard [Member]
Total loans and leases	7,626	7,202
Real Estate [Member] | Special Mention [Member]
Total loans and leases	5,322	7,525
Real Estate [Member] | Pass [Member]
Total loans and leases	453,910	446,810
Commercial Portfolio Segment [Member] | Substandard [Member]
Total loans and leases	2,756	61
Commercial Portfolio Segment [Member] | Special Mention [Member]
Total loans and leases	2,988	2,940
Commercial Portfolio Segment [Member] | Pass [Member]
Total loans and leases	51,819	52,156
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard [Member]
Total loans and leases	1,121	826
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention [Member]
Total loans and leases	1,746	2,890
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass [Member]
Total loans and leases	150,594	137,146
Commercial [Member]
Total loans and leases		55,157
Commercial [Member] | Real Estate [Member]
Total loans and leases	153,461	140,862
Construction and Land Development [Member] | Real Estate [Member]
Total loans and leases	27,466	35,119
Construction and Land Development [Member] | Real Estate [Member] | Substandard [Member]
Total loans and leases	159	170
Construction and Land Development [Member] | Real Estate [Member] | Special Mention [Member]
Total loans and leases	316	718
Construction and Land Development [Member] | Real Estate [Member] | Pass [Member]
Total loans and leases	26,991	34,231
Residential 1-4 Family [Member] | Real Estate [Member]
Total loans and leases	250,175	249,946
Residential 1-4 Family [Member] | Real Estate [Member] | Substandard [Member]
Total loans and leases	4,307	4,473
Residential 1-4 Family [Member] | Real Estate [Member] | Special Mention [Member]
Total loans and leases	1,202	1,523
Residential 1-4 Family [Member] | Real Estate [Member] | Pass [Member]
Total loans and leases	244,666	243,950
Multifamily [Member] | Real Estate [Member]
Total loans and leases	13,362	13,496
Multifamily [Member] | Real Estate [Member] | Substandard [Member]
Total loans and leases	72	76
Multifamily [Member] | Real Estate [Member] | Special Mention [Member]
Total loans and leases		63
Multifamily [Member] | Real Estate [Member] | Pass [Member]
Total loans and leases	13,290	13,357
Farmland [Member] | Real Estate [Member]
Total loans and leases	22,394	22,114
Farmland [Member] | Real Estate [Member] | Substandard [Member]
Total loans and leases	1,967	1,657
Farmland [Member] | Real Estate [Member] | Special Mention [Member]
Total loans and leases	2,058	2,331
Farmland [Member] | Real Estate [Member] | Pass [Member]
Total loans and leases	18,369	18,126
Commercial Real Estate [Member]
Total loans and leases	57,563	55,157
Agriculture [Member]
Total loans and leases	5,099	5,266
Agriculture [Member] | Substandard [Member]
Total loans and leases		1
Agriculture [Member] | Special Mention [Member]
Total loans and leases	5	10
Agriculture [Member] | Pass [Member]
Total loans and leases	5,094	5,255
Consumer Installment Loans [Member]
Total loans and leases	23,485	24,538
Consumer Installment Loans [Member] | Substandard [Member]
Total loans and leases	5	10
Consumer Installment Loans [Member] | Special Mention [Member]
Total loans and leases		35
Consumer Installment Loans [Member] | Pass [Member]
Total loans and leases	23,480	24,493
Other Loans [Member]
Total loans and leases	580	598
Other Loans [Member] | Substandard [Member]
Total loans and leases
Other Loans [Member] | Special Mention [Member]
Total loans and leases
Other Loans [Member] | Pass [Member]
Total loans and leases	580	598
Unallocated
Total loans and leases

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Balance, beginning of year	$ 5,336
Charge Offs	(112)		$ (1,470)
Recoveries	108		358
Provision for loan losses	135	$ 63	252
Balance, End of period	5,467		5,336
Commercial Real Estate [Member]
Balance, beginning of year	448
Charge Offs	(39)		(617)
Recoveries	44		84
Provision for loan losses	90		321
Balance, End of period	543		448
Agriculture [Member]
Balance, beginning of year	37
Charge Offs
Recoveries	1		1
Provision for loan losses	(1)		16
Balance, End of period	37		37
Consumer Installment Loans [Member]
Balance, beginning of year	172
Charge Offs	(28)		(75)
Recoveries	28		44
Provision for loan losses	(7)		47
Balance, End of period	165		172
Other Loans [Member]
Balance, beginning of year	3
Charge Offs
Recoveries
Provision for loan losses	(1)
Balance, End of period	2		3
Unallocated
Balance, beginning of year	275
Charge Offs
Recoveries
Provision for loan losses	263		19
Balance, End of period	538		275
Real Estate [Member]
Balance, beginning of year	4,401	5,101	5,101
Charge Offs	(45)		(778)
Recoveries	35		229
Provision for loan losses	(209)		(151)
Balance, End of period	4,182		4,401
Real Estate [Member] | Commercial Real Estate [Member]
Balance, beginning of year	1,386	1,989	1,989
Charge Offs			(334)
Recoveries			73
Provision for loan losses	(22)		(342)
Balance, End of period	1,364		1,386
Real Estate [Member] | Construction and Land Development [Member]
Balance, beginning of year	202	191	191
Charge Offs			(96)
Recoveries			11
Provision for loan losses	(44)		96
Balance, End of period	158		202
Real Estate [Member] | Residential 1-4 Family [Member]
Balance, beginning of year	2,437	2,400	2,400
Charge Offs	(45)		(290)
Recoveries	30		73
Provision for loan losses	(131)		254
Balance, End of period	2,291		2,437
Real Estate [Member] | Multifamily [Member]
Balance, beginning of year	89	106	106
Charge Offs
Recoveries
Provision for loan losses	3		(17)
Balance, End of period	92		89
Real Estate [Member] | Farmland [Member]
Balance, beginning of year	287	$ 415	415
Charge Offs			(58)
Recoveries	5		72
Provision for loan losses	(15)		(142)
Balance, End of period	$ 277		$ 287

ALLOWANCE FOR LOAN LOSSES (De_2

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 254	$ 318
Allowance for Loan Losses, Collectively Evaluated for Impairment	5,213	5,018
Allowance for Loan Losses, Total	5,467	5,336
Recorded Investment in Loans, Individually Evaluated for Impairment	10,745	7,976
Recorded Investment in Loans, Collectively Evaluated for Impairment	542,840	539,120
Recorded Investment in Loans, Total	553,585	547,096
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	241	304
Allowance for Loan Losses, Collectively Evaluated for Impairment	3,941	4,097
Allowance for Loan Losses, Total	4,182	4,401
Recorded Investment in Loans, Individually Evaluated for Impairment	7,997	7,860
Recorded Investment in Loans, Collectively Evaluated for Impairment	458,861	453,677
Recorded Investment in Loans, Total	466,858	461,537
Commercial [Member]
Recorded Investment in Loans, Total		55,157
Commercial [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	41	40
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,323	1,346
Allowance for Loan Losses, Total	1,364	1,386
Recorded Investment in Loans, Individually Evaluated for Impairment	2,635	2,322
Recorded Investment in Loans, Collectively Evaluated for Impairment	150,826	138,540
Recorded Investment in Loans, Total	153,461	140,862
Construction and Land Development [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	158	202
Allowance for Loan Losses, Total	158	202
Recorded Investment in Loans, Individually Evaluated for Impairment	103	114
Recorded Investment in Loans, Collectively Evaluated for Impairment	27,363	35,005
Recorded Investment in Loans, Total	27,466	35,119
Residential 1-4 Family [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	89	132
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,202	2,205
Allowance for Loan Losses, Total	2,291	2,437
Recorded Investment in Loans, Individually Evaluated for Impairment	3,191	3,311
Recorded Investment in Loans, Collectively Evaluated for Impairment	246,984	246,635
Recorded Investment in Loans, Total	250,175	249,946
Multifamily [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	92	89
Allowance for Loan Losses, Total	92	89
Recorded Investment in Loans, Individually Evaluated for Impairment	72	75
Recorded Investment in Loans, Collectively Evaluated for Impairment	13,290	13,421
Recorded Investment in Loans, Total	13,362	13,496
Farmland [Member] | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	111	132
Allowance for Loan Losses, Collectively Evaluated for Impairment	166	155
Allowance for Loan Losses, Total	277	287
Recorded Investment in Loans, Individually Evaluated for Impairment	1,996	2,038
Recorded Investment in Loans, Collectively Evaluated for Impairment	20,398	20,076
Recorded Investment in Loans, Total	22,394	22,114
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	13	13
Allowance for Loan Losses, Collectively Evaluated for Impairment	530	435
Allowance for Loan Losses, Total	543	448
Recorded Investment in Loans, Individually Evaluated for Impairment	2,742	109
Recorded Investment in Loans, Collectively Evaluated for Impairment	54,821	55,048
Recorded Investment in Loans, Total	57,563	55,157
Agriculture [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	37	37
Allowance for Loan Losses, Total	37	37
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	5,099	5,266
Recorded Investment in Loans, Total	5,099	5,266
Consumer Installment Loans [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment		1
Allowance for Loan Losses, Collectively Evaluated for Impairment	165	171
Allowance for Loan Losses, Total	165	172
Recorded Investment in Loans, Individually Evaluated for Impairment	6	7
Recorded Investment in Loans, Collectively Evaluated for Impairment	23,479	24,531
Recorded Investment in Loans, Total	23,485	24,538
Other Loans [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	2	3
Allowance for Loan Losses, Total	2	3
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	580	598
Recorded Investment in Loans, Total	580	598
Unallocated
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	538	275
Allowance for Loan Losses, Total	538	275
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment
Recorded Investment in Loans, Total

TROUBLED DEBT RESTRUCTURINGS (D

TROUBLED DEBT RESTRUCTURINGS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Farmland [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Construction and Land Development [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Commercial Real Estate [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Residential 1-4 Family [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Commercial [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment

TROUBLED DEBT RESTRUCTURINGS _2

TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Notes to Financial Statements
Total TDRs	$ 5,300	$ 5,400
Period loan is considered to be in default, days	90 days

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Real Estate [Abstract]
Balance, beginning of period	$ 5,937	$ 6,859
Additions		1,719
Proceeds from sales	(856)	(1,405)
Proceeds from insurance claims	(19)
Loans made to finance sales	(94)	(569)
Adjustment of carrying value	(121)	(542)
Deferred gain from sales		10
Losses (gains) from sales	8	(135)
Balance, end of period	$ 4,855	$ 5,937

FAIR VALUES (Details)

FAIR VALUES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Inputs, Level 2 [Member]
Impaired Loans	$ 58,001	$ 59,407
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member]
Available for sale investments	19,389	19,389
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals
Available for sale investments	4,313	4,313
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds
Available for sale investments	5,320	5,320
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Available for sale investments	30,385	30,385
Fair Value, Inputs, Level 3 [Member]
Available for sale investments
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Agriculture [Member]
Impaired Loans
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate [Member]
Impaired Loans
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate [Member] | Real Estate [Member]
Available for sale investments
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Farmland [Member] | Real Estate [Member]
Impaired Loans
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Multifamily [Member] | Real Estate [Member]
Available for sale investments
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential 1-4 Family [Member] | Real Estate [Member]
Available for sale investments
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction and Land Development [Member] | Real Estate [Member]
Impaired Loans
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer Installment Loans [Member]
Impaired Loans

FAIR VALUES (Details 1)

FAIR VALUES (Details 1) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Impaired Loans
Fair Value	$ 10,491
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell
Impaired Loans | Minimum [Member]
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	$ 4,855
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Other Real Estate Owned | Minimum [Member]
General Range of Significant Unobservable Input Values	0.00%
Other Real Estate Owned | Maximum [Member]
General Range of Significant Unobservable Input Values	18.00%

FAIR VALUES (Details 2)

FAIR VALUES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Net Loans	$ 548,118	$ 541,760
Reported Value Measurement [Member]
Net Loans	548,118	541,760
Time deposits	264,889	258,850
FHLB advances	7,000	7,000
Estimate of Fair Value Measurement [Member]
Net Loans	538,874	534,425
Time deposits	264,764	258,671
FHLB advances	7,159	7,215
Fair Value, Inputs, Level 2 [Member]
Net Loans	528,383	526,767
Time deposits	264,764	258,671
FHLB advances	7,159	7,215
Fair Value, Inputs, Level 3 [Member]
Net Loans	$ 10,491	$ 7,658

SALE AND LEASEBACK TRANSACTIO_3

SALE AND LEASEBACK TRANSACTIONS (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leasing Activities Details Abstract
2019	$ 331
2020	440
2021	416
2022	436
2023	450
Thereafter	3,965
Total lease payments	6,038
Less imputed interest	1,175
Total	$ 4,863

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Service charges and fees	$ 841	$ 867
Card Processing and interchange income	679	655
Insurance and investment fees	161	74
Other noninterest income	96	154
Total Noninterest Income	$ 1,777	$ 1,750

NONINTEREST EXPENSES (Details)

NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noninterest Expenses Details
Advertising	$ 66	$ 147
ATM network expense	444	392
Legal and professional fees	282	367
Loan related expenses	121	200
Printing and supplies	39	136
FDIC insurance premiums	108	96
Other real estate owned, net	193	247
Other	525	514
Total noninterest expenses	$ 1,778	$ 2,099