Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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)
September 30, 2019
Securities available for sale:
U.S. Government agencies	$	33,839	$	—	$	33,839	$	—
Mortgage-backed		105,072		—		105,072		—
		138,911		—		138,911		—

Equity		1,339		—		1,339		—
Total	$	140,250	$	—	$	140,250	$	—


					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
September 30, 2019
Nonrecurring measurements:

Impaired loans	$	1,777	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 17%
					Liquidation expense	(2)	0% - 10%

Impaired loans	$	3,956	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%

Other real estate owned	$	74	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


	September 30, 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	$	103,373	$	103,373	$	67,225	$	67,225

Level 2 inputs
Investment securities held to maturity	$	9,780	$	9,715	$	6,043	$	6,000
Restricted securities		4,655		4,655		6,476		6,476
Cash surrender value on life insurance		18,440		18,440		3,726		3,726

Level 3 inputs
Loans, net	$	1,224,597	$	1,227,196	$	1,185,012	$	1,150,418

Financial liabilities
Level 2 inputs
Deposits:
Noninterest-bearing demand	$	362,557	$	362,557	$	330,466	$	330,466
Checking plus interest		288,521		288,521		239,809		239,809
Money market		248,114		248,114		232,613		232,613
Savings		141,498		141,498		148,723		148,723
Club		1,502		1,502		387		387
Brokered Deposits		12,070		12,067		22,084		22,075
Certificates of deposit, $100,000 or more		123,142		123,655		97,905		96,435
Other time		148,087		147,684		140,354		136,292
Short-term borrowings		17,263		17,263		60,812		60,812
Long-term borrowings		15,000		14,999		15,000		15,012