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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of the dates stated.

			Fair Value Measurements as of September 30, 2019 Using
	Balance as of September 30, 2019		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government agencies and mortgage backed securities	$	50,418	$	—	$	50,418	$	—
State and municipal obligations		17,096		—		17,096		—
Corporate bonds		13,234		1,000		7,544		4,690
Total available-for-sale securities	$	80,748	$	1,000	$	75,058	$	4,690
Mortgage servicing rights	$	910	$	—	$	—	$	910
Rabbi trust assets	$	1,059	$	1,059	$	—	$	—

			Fair Value Measurements as of December 31, 2018 Using
	Balance as of December 31, 2018		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government agencies and mortgage backed securities	$	49,882	$	—	$	49,882	$	—
State and municipal obligations		20,217		—		20,217		—
Corporate bonds		12,133		—		8,462		3,671
Total available-for-sale securities	$	82,232	$	—	$	78,561	$	3,671
Mortgage servicing rights	$	977	$	—	$	—	$	977
Rabbi trust assets	$	972	$	972	$	—	$	—

Reconciliation of Items Using Level Three Inputs

The following table presents the change in financial assets valued using Level 3 inputs for the periods stated.

	MSRs			Corporate Bonds
Balance as of January 1, 2019	$	977		$	3,671
Purchases		—			—
Transfer from level 2 to level 3		—			1,035
Fair value adjustments		(67	)		(16	)
Sales		—			—
Balance as of September 30, 2019	$	910		$	4,690

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following tables present the Company’s assets that were measured at fair value on a nonrecurring basis as of the dates stated.

			Fair Value Measurements as of September 30, 2019 Using
	Balance as of September 30, 2019		Level 1		Level 2		Level 3
Impaired loans, net	$	6,324	$	—	$	—	$	6,324
Other real estate owned, net		2,178		—		—		2,178

			Fair Value Measurements as of December 31, 2018 Using
	Balance as of December 31, 2018		Level 1		Level 2		Level 3
Impaired loans, net	$	4,700	$	—	$	—	$	4,700
Other real estate owned, net		3,597		—		—		3,597

Summary of Quantitative Fair Value Measurements for Level 3

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated.

	Balance as of September 30, 2019		Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired loans, net	$	6,324	Discounted appraised value	Selling cost Lack of marketability	7% 13%-100% (31%)
			Discounted cash flows	Discount rate	5%-7% (6%)
Other real estate owned, net		2,178	Discounted appraised value	Selling cost Lack of marketability	2%-11% (8%) 12%-100% (36%)

	Balance as of December 31, 2018		Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired loans, net	$	4,700	Discounted appraised value	Selling cost Lack of marketability	15%-20% (16%) 100% (100%)
			Discounted cash flows	Discount rate	5%-7% (6%)
Other real estate owned, net		3,597	Discounted appraised value	Selling cost Lack of marketability	5%-19% (8%) 9%-100% (28%)

Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis

The following tables summarize the Company’s financial assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of the dates stated.

	Carrying Value as of		Fair Value as of		Fair Value Measurements as of September 30, 2019 Using
	September 30, 2019		September 30, 2019		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	7,419	$	7,419	$	7,419	$	—	$	—
Interest-earning deposits		23,894		23,894		23,894		—		—
Federal funds sold		92		92		92		—		—
Certificates of deposit		3,498		3,498		—		3,498		—
Restricted securities		6,684		6,684		—		—		6,684
Loans receivable, net		924,268		911,497		—		—		911,497
Loans held for sale		268		268		—		268		—
Accrued interest receivable		3,104		3,104		—		3,104		—
Financial Liabilities:
Noninterest-bearing demand deposits		124,670		124,670		124,670		—		—
Savings and interest-bearing demand deposits		372,404		372,404		372,404		—		—
Time deposits		396,614		398,254		—		—		398,254
Securities sold under repurchase agreements		6,323		6,323		6,323		—		—
FHLB advances		68,000		67,886		—		67,886		—
Subordinated notes, net		6,906		7,032		—		—		7,032

	Carrying Value as of		Fair Value as of		Fair Value Measurements as of December 31, 2018 Using
	December 31, 2018		December 31, 2018		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	7,685	$	7,685	$	7,685	$	—	$	—
Interest-earning deposits		18,981		18,981		18,981		—		—
Federal funds sold		625		625		—		625		—
Certificates of deposit		3,746		3,746		3,746		—		—
Restricted securities		7,600		7,600		—		—		7,600
Loans receivable, net		894,191		877,114		—		—		877,114
Loans held for sale		368		368		—		368		—
Accrued interest receivable		3,172		3,172		—		3,172		—
Financial Liabilities:
Noninterest-bearing demand deposits		114,122		114,122		114,122		—		—
Savings and interest-bearing demand deposits		359,400		359,400		359,400		—		—
Time deposits		368,670		369,347		—		—		369,347
Securities sold under repurchase agreements		6,089		6,089		6,089		—		—
FHLB advances		100,000		99,727		—		99,727		—
Subordinated notes, net		6,893		7,046		—		—		7,046