Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2018

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

Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands):



	Balance as of March 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	29,303	$	—	$	29,303	$	—
Mortgage-backed securities	116,097		—		116,097		—
Other debt securities	924		—		924		—
Municipal securities	9,886		—		9,886		—
Total securities available-for-sale	$	156,210	$	—	$	156,210	$	—



	Balance as of December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	25,776	$	—	$	25,776	$	—
Mortgage-backed securities	116,215		—		116,215		—
Other debt securities	950		—		950		—
Municipal securities	9,003		—		9,003		—
Total securities available-for-sale	$	151,944	$	—	$	151,944	$	—

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

For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, , the significant unobservable inputs used in the fair value measurements are presented below (in thousands).



	Balance as of March 31, 2018		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
Impaired loans	$	620	Appraisal	Appraisal Discounts	37	%
Foreclosed assets	2,665		Appraisal	Appraisal Discounts	21	%



	Balance as of December 31, 2017		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
Impaired loans	$	769	Appraisal	Appraisal Discounts	36	%
Foreclosed assets	3,254		Appraisal	Appraisal Discounts	18	%

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):



	Balance as of March 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	620	$	—	$	—	$	620
Foreclosed assets	2,665		—		—		2,665



	Balance as of December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	769	$	—	$	—	$	769
Foreclosed assets	3,254		—		—		3,254

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands):



	March 31, 2018
			Fair Value Measurements Using
	Carrying Amount		Level 1	Level 2	Level 3	Estimated Fair Value
Assets:
Cash and cash equivalents	$	96,710	96,710	—	—	$	96,710
Securities available for sale	156,210		—	156,210	—	156,210
Restricted investments	7,808		N/A	N/A	N/A	N/A
Loans, net	1,367,780		—	—	1,373,919	1,373,919

Liabilities:
Noninterest-bearing demand deposits	276,249		—	276,249	—	276,249
Interest-bearing demand deposits	278,965		—	278,965	—	278,965
Money Market and Savings deposits	491,243		—	491,243	—	491,243
Time deposits	453,276		—	453,943	—	453,943
Securities sold under agreements to repurchase	15,968		—	15,968	—	15,968
Federal Home Loan Bank advances and other borrowings	30,000		—	30,000	—	30,000

Note 6. Fair Value Disclosures, Continued

Carrying value and estimated fair value (continued):



	December 31, 2017
			Fair Value Measurements Using
	Carrying Amount		Level 1	Level 2	Level 3	Estimated Fair Value
Assets:
Cash and cash equivalents	$	113,027	113,027	—	—	$	113,027
Securities available for sale	151,944		—	151,944	—	151,944
Restricted investments	6,431		N/A	N/A	N/A	N/A
Loans, net	1,317,398		—	—	1,292,303	1,292,303

Liabilities:
Noninterest-bearing demand deposits	220,520		—	220,520	—	250,520
Interest-bearing demand deposits	231,644		—	231,644	—	231,644
Money Market and Savings deposits	543,645		—	543,645	—	543,645
Time deposits	442,774		—	443,547	—	443,547
Securities sold under agreements to repurchase	24,055		—	24,055	—	24,055
Federal Home Loan Bank advances and other borrowings	43,600		—	43,600	—	43,600