Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified:



	June 30, 2019
			Fair Value Measurements using:
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Debt securities	$	465,944	$	—	$	465,944	$	—
Equity securities	2,428		2,428		—		—
FHLB stock	1,576		—		—		1,576
Interest-rate swaps	559		—		559		—
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	1,875		—		—		1,875
Other real estate owned	255		—		—		255

Liabilities measured on a recurring basis:
Interest-rate swaps	$	559	$	—	$	559	$	—



	December 31, 2018
			Fair Value Measurements using:
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Debt securities	$	431,473	$	—	$	431,473	$	—
Equity securities	1,448		1,448		—		—
FHLB stock	5,357		—		—		5,357
Interest-rate swaps	723		—		723		—
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	2,574		—		—		2,574

Liabilities measured on a recurring basis:
Interest-rate swaps	$	723	$	—	$	723	$	—

Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements

The following table presents additional quantitative information about assets measured at fair value on a recurring and non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of June 30, 2019 and December 31, 2018:



	Fair Value
(Dollars in thousands)	June 30, 2019		December 31, 2018		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Assets measured on a recurring basis:
FHLB stock	$	1,576	$	5,357	Stated Par Value	N/A	N/A
Assets measured on a non-recurring basis:
Impaired loans(collateral dependent)	$	1,875	$	2,574	Appraisal of collateral	Appraisal adjustments ⁽¹⁾	5% - 50%
Other real estate owned	$	255	$	—	Appraisal of collateral	Appraisal adjustments ⁽¹⁾	0% - 30%

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(1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

Fair Value, by Balance Sheet Grouping

The carrying values, estimated fair values and placement in the fair value hierarchy of the Company's consolidated financial instruments for which fair value is only disclosed but not recognized on the consolidated balance sheet at the dates indicated are summarized as follows:



	June 30, 2019
					Fair value measurement
(Dollars in thousands)	Carrying Amount		Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:
Loans held for sale	$	1,376	$	1,387	$	—	$	1,387	$	—
Loans, net	2,379,751		2,384,279		—		—		2,384,279
Financial liabilities:
CDs (including brokered)	294,862		295,456		—		295,456		—
Borrowed funds	484		339		—		339		—
Subordinated debt	14,866		15,187		—		—		15,187



	December 31, 2018
					Fair value measurement
(Dollars in thousands)	Carrying Amount		Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:
Loans held for sale	$	701	$	710	$	—	$	710	$	—
Loans, net	2,353,657		2,331,076		—		—		2,331,076
Financial liabilities:
CDs (including brokered)	341,014		339,308		—		339,308		—
Borrowed funds	100,492		100,312		—		100,312		—
Subordinated debt	14,860		14,300		—		—		14,300