Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2019
Securities available for sale:
U.S. Government agencies	$	33,811	$	—	$	33,811	$	—
Mortgage-backed		117,003		—		117,003		—
		150,814		—		150,814		—

Equity		1,299		—		1,299		—
Total	$	152,113	$	—	$	152,113	$	—


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2018
Securities available for sale:
U.S. Government agencies	$	33,636	$	—	$	33,636	$	—
Mortgage-backed		120,796		—		120,796		—
		154,432		—		154,432		—

Equity		1,269		—		1,269		—
Total	$	155,701	$	—	$	155,701	$	—

Fair Value of Assets Measured on Nonrecurring Basis


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range
March 31, 2019
Nonrecurring measurements:

Impaired loans	$	577	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 17%
					Liquidation expense	(2)	0% - 10%

Impaired loans	$	5,900	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%

Other real estate owned	$	979	Appraisal of collateral	(1)	Appraisal adjustments	(2)	15% - 40%
					Liquidation expense	(2)	5% - 10%


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range
December 31, 2018
Nonrecurring measurements:

Impaired loans	$	3,839	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 17%
					Liquidation expense	(2)	0% - 10%

Impaired loans	$	5,902	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%

Other real estate owned	$	1,222	Appraisal of collateral	(1)	Appraisal adjustments	(2)	15% - 40%
					Liquidation expense	(2)	5% - 10%

(1)

Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Schedule of Estimated Fair Values of Financial Assets and Liabilities


	March 31, 2019				December 31, 2018
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	58,819	$	58,819	$	67,225	$	67,225

Level 2 inputs
Investment securities held to maturity	$	5,899	$	5,865	$	6,043	$	6,000
Restricted securities		5,292		5,292		6,476		6,476
Cash surrender value on life insurance		3,736		3,736		3,726		3,726

Level 3 inputs
Loans, net	$	1,201,298	$	1,179,711	$	1,185,012	$	1,150,418

Financial liabilities
Level 2 inputs
Deposits:
Noninterest-bearing demand	$	345,151	$	345,151	$	330,466	$	330,466
Checking plus interest		246,945		246,945		239,809		239,809
Money market		236,214		236,214		232,613		232,613
Savings		148,416		148,416		148,723		148,723
Club		774		774		387		387
Brokered Deposits		22,079		22,062		22,084		22,075
Certificates of deposit, $100,000 or more		98,027		97,077		97,905		96,435
Other time		139,663		137,509		140,354		136,292
Short-term borrowings		30,724		30,724		60,812		60,812
Long-term borrowings		15,000		15,028		15,000		15,012