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) | June 30, 2020 | | | | | | | | | | | | | Securities available for sale: | | | | | | | | | | | | | U.S. Government agencies | | $ | 9,789 | | $ | — | | $ | 9,789 | | $ | — | Mortgage-backed | | | 76,231 | | | — | | | 76,231 | | | — | | | | 86,020 | | | — | | | 86,020 | | | — | | | | | | | | | | | | | | Equity | | | 1,388 | | | — | | | 1,388 | | | — | Total | | $ | 87,408 | | $ | — | | $ | 87,408 | | $ | — |
| | | | | | | | | | | | | | | | | | | | | Significant | | | | | | | | | | | | Other | | Significant | | | | | | Quoted | | Observable | | Unobservable | | | | | | Prices | | Inputs | | Inputs | (Dollars in thousands) | | Fair Value | | (Level 1) | | (Level 2) | | (Level 3) | December 31, 2019 | | | | | | | | | | | | | Securities available for sale: | | | | | | | | | | | | | U.S. Government agencies | | $ | 23,826 | | $ | — | | $ | 23,826 | | $ | — | Mortgage-backed | | | 98,965 | | | — | | | 98,965 | | | — | | | | 122,791 | | | — | | | 122,791 | | | — | | | | | | | | | | | | | | Equity | | | 1,342 | | | — | | | 1,342 | | | — | Total | | $ | 124,133 | | $ | — | | $ | 124,133 | | $ | — |
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Fair Value of Assets Measured on Nonrecurring Basis |
| | | | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | | | | | | | | | | | | Weighted | (Dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | | Average (3) | June 30, 2020 | | | | | | | | | | | | Nonrecurring measurements: | | | | | | | | | | | | | | | | | | | | | | | | Impaired loans | | $ | 1,877 | | Appraisal of collateral | (1) | Liquidation expense | (2) | 10% | | (10%) | | | | | | | | | | | | | | | | | | | | | | | | | Impaired loans | | $ | 2,549 | | Discounted cash flow analysis | (1) | Discount rate | | 4% - 7.25% | | (6%) | | | | | | | | | | | | | Other real estate owned | | $ | 38 | | Appraisal of collateral | (1) | Appraisal adjustments | (2) | 0% - 19% | | (19%) |
| | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | | (Dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | December 31, 2019 | | | | | | | | | | Nonrecurring measurements: | | | | | | | | | | | | | | | | | | | | Impaired loans | | $ | 2,489 | | Appraisal of collateral | (1) | Liquidation expense | (2) | 10% | | | | | | | | | | | | | | | | | | | | | Impaired loans | | $ | 2,599 | | Discounted cash flow analysis | (1) | Discount rate | | 4% - 7.25% | | | | | | | | | | | Other real estate owned | | $ | 74 | | Appraisal of collateral | (1) | Appraisal adjustments | (2) | 0% - 31% | | | | | | | | Liquidation expense | (2) | 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. (3)Unobservable inputs were weighted by the relative fair value of the instruments.
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Schedule of Estimated Fair Values of Financial Assets and Liabilities |
| | | | | | | | | | | | | | | June 30, 2020 | | December 31, 2019 | | | | | | Estimated | | | | | Estimated | | | Carrying | | Fair | | Carrying | | Fair | (Dollars in thousands) | | Amount | | Value | | Amount | | Value | Financial assets | | | | | | | | | | | | | Level 1 inputs | | | | | | | | | | | | | Cash and cash equivalents | | $ | 126,284 | | $ | 126,284 | | $ | 94,971 | | $ | 94,971 | | | | | | | | | | | | | | Level 2 inputs | | | | | | | | | | | | | Investment securities held to maturity | | $ | 11,710 | | $ | 11,715 | | $ | 8,786 | | $ | 8,654 | Restricted securities | | | 3,626 | | | 3,626 | | | 4,190 | | | 4,190 | Cash surrender value on life insurance | | | 30,430 | | | 30,430 | | | 29,782 | | | 29,782 | | | | | | | | | | | | | | Level 3 inputs | | | | | | | | | | | | | Loans, net | | $ | 1,396,159 | | $ | 1,394,326 | | $ | 1,238,147 | | $ | 1,242,867 | | | | | | | | | | | | | | Financial liabilities | | | | | | | | | | | | | Level 2 inputs | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | Noninterest-bearing demand | | $ | 442,996 | | $ | 442,996 | | $ | 356,618 | | $ | 356,618 | Checking plus interest | | | 344,940 | | | 344,940 | | | 302,227 | | | 302,227 | Money market | | | 274,783 | | | 274,783 | | | 262,050 | | | 262,050 | Savings | | | 163,320 | | | 163,320 | | | 143,322 | | | 143,322 | Club | | | 1,155 | | | 1,155 | | | 387 | | | 387 | Certificates of deposit, $100,000 or more | | | 129,467 | | | 132,577 | | | 127,600 | | | 128,167 | Other time | | | 148,067 | | | 152,358 | | | 149,130 | | | 149,209 | Short-term borrowings | | | 1,064 | | | 1,064 | | | 1,226 | | | 1,226 | Long-term borrowings | | | — | | | — | | | 15,000 | | | 15,040 |
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