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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Measurements [Abstract]  
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

$

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.

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