Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2019

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

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):



Description	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2019:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	19,018	$	—	$	19,018	$	—
Municipal securities	60,081		—		60,081		—
Other debt securities	3,445		—		3,445		—
Mortgage-backed securities (GSEs)	88,963		—		88,963		—
Total securities available-for-sale	$	171,507	$	—	$	171,507	$	—

Liabilities:
Derivative financial instruments	$	4,456	$	—	$	4,456	$	—



December 31, 2018:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	43,503	$	—	$	43,503	$	—
Municipal securities	55,161		—		55,161		—
Other debt securities	910		—		910		—
Mortgage-backed securities (GSEs)	102,114		—		102,114		—
Total securities available-for-sale	$	201,688	$	—	$	201,688	$	—

Liabilities:
Derivative financial instruments	$	1,174	—		$	1,174	—

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis

The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):



	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2019:
Impaired loans	$	3,822	$	—	$	—	$	3,822
Other real estate owned	1,561		—		—		1,561

December 31, 2018:
Impaired loans	$	671	$	—	$	—	$	671
Other real estate owned	2,495		—		—		2,495

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).



	Fair Value		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
September 30, 2019:
Impaired loans	$	3,822	Appraisal and cashflow	Appraisal and cashflow discounts	16	%
Other real estate owned	1,561		Appraisal	Appraisal discounts	8	%

December 31, 2018:
Impaired loans	$	671	Appraisal	Appraisal Discounts	44	%
Other real estate owned	2,495		Appraisal	Appraisal Discounts	23	%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):



			Fair Value Measurements Using
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
September 30, 2019:
Assets:
Cash and cash equivalents	$	170,934	$	170,934	$	—	$	—	$	170,934
Securities available-for-sale	171,507		—		171,507		—		171,507
Other investments	12,913		N/A		N/A		N/A		N/A
Loans, net	1,857,955		—		—		1,849,197		1,849,197
Liabilities:
Noninterest-bearing demand deposits	365,024		—		365,024		—		365,024
Interest-bearing demand deposits	351,474		—		351,474		—		351,474
Money market and savings deposits	634,934		—		634,934		—		634,934
Time deposits	646,641		—		647,780		—		647,780
Securities sold under agreements to repurchase	4,368		—		4,368		—		4,368
Federal Home Loan Bank advances and other borrowings	25,460		—		25,460		—		25,460
Subordinated debt	39,240		—		—		37,379		37,379
Derivative financial instruments	4,456		—		4,456		—		4,456



December 31, 2018:
Assets:
Cash and cash equivalents	$	115,822	$	115,822	$	—	$	—	$	115,822
Securities available-for-sale	201,688		—		201,688		—		201,688
Other investments	11,499		N/A		N/A		N/A		N/A
Loans, net	1,768,964		—		—		1,766,838		1,766,838
Liabilities:
Noninterest-bearing demand deposits	319,861		—		319,861		—		319,861
Interest-bearing demand deposits	311,482		—		311,482		—		311,482
Money market and savings deposits	641,945		—		641,945		—		641,945
Time deposits	648,676		—		649,169		—		649,169
Securities sold under agreements to repurchase	11,756		—		11,756		—		11,756
Federal Home Loan Bank advances and other borrowings	11,243		—		11,243		—		11,243
Subordinated debt	39,177		—		—		39,190		39,190
Derivative financial instruments	1,174		—		1,174		—		1,174