Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The assets and liabilities measured at fair value on a recurring basis at March 31, 2018 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 3/31/2018		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Securities available for sale
U.S. Agency securities	$	80,146		—		80,146		—
Taxable municipals		26,668		—		26,668		—
Tax-free municipals		1,273		—		1,273		—
Trust preferred securities		1,980		—		—		1,980
Mortgage backed securities		70,145		—		70,145		—
Total	$	180,212		—		178,232		1,980

The assets and liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 12/31/2017		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Securities available for sale
U.S. Agency securities		84,093		—		84,093		—
Taxable municipals		1,283		—		1,283		—
Tax-free municipals		26,966		—		26,966		—
Trust preferred securities		1,685		—		—		1,685
Mortgage backed securities		70,764		—		70,764		—
Total	$	184,791		—		183,106		1,685

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for March 31, 2018:

Description	Total carrying value in the consolidated balance sheet at March 31, 2018		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	3,329		—		—	$	3,329
Impaired loans, net of allowance of $196	$	378		—		—	$	378
The assets and liabilities measured at fair value on a non-recurring basis are summarized below for December 31, 2017:
Description	Total carrying value in the consolidated balance sheet at December 31, 2017		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
			(Dollars in Thousands)
Assets
Foreclosed assets	$	3,369		—		—	$	3,369
Impaired loans, net of allowance of $289	$	473		—		—	$	473

Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring basis at March 31, 2018 and December 31, 2017:

Level 3 Significant Unobservable Input Assumptions
	Fair Value		Valuation Technique	Unobservable Input	Quantitative Range of Unobservable Inputs
			(Dollars in Thousands)
March 31, 2018
Assets measured on a non-recurring basis
Foreclosed assets	$	3,329	Discount to appraised value of collateral. Auction results	Appraisal comparability adjustments		5% to 10%
Impaired loans		574	Discount to appraised value of collateral	Appraisal comparability adjustments		10% to 25%
Asset measured on a recurring basis
Trust preferred securities		1,980	Discounted cash flow Spread to Libor swap curve	Compare to quotes for sale when available		One month libor 5% to 8%
December 31, 2017
Assets measured on a non-recurring basis
Foreclosed assets	$	3,369	Discount to appraised value of collateral	Appraisal comparability adjustments		30% to 55%
Impaired loans		760	Discount to appraised value of collateral	Appraisal comparability adjustments		10% to 15%
Asset measured on a recurring basis
Trust preferred securities		1,685	Discounted cash flow Spread to Libor swap curve	Compare to quotes for sale when available		One month libor 4% to 6%

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows at March 31, 2018:

	Carrying Amount		Estimated Fair Value		In Active Markets for Identical Assets Level 1		Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
	(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	18,472		180,472		180,472		—		—
Interest-bearing deposits		3,149		3,149		3,149		—		—
Securities available for sale		180,212		180,212		—		178,232		1,980
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		2,706		2,706		—		2,706		—
Loans receivable		665,178		633,671		—		—		633,671
Accrued interest receivable		3,212		3,212		—		—		3,212
Financial liabilities:
Deposits		746,806		745,508		—		745,508		—
Advances from borrowers for taxes and insurance		780		780		—		781		—
Advances from Federal Home Loan Bank		25,000		24,795		—		24,795		—
Repurchase agreements		41,792		41,792		—		41,792		—
Subordinated debentures		10,310		10,099		—		—		10,099

The estimated fair values of financial instruments were as follows at December 31, 2017:

	Carrying		Estimated Fair		Quoted Prices In Active Markets for Identical Assets		Using Significant Other Observable Inputs		Significant Unobservable Inputs
	Amount		Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	37,965		37,965		37,965		—		—
Interest-bearing deposits		7,111		7,111		7,111		—		—
Securities available for sale		184,791		184,791		—		183,106		1,685
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,539		1,539		—		1,539		—
Loans receivable		637,102		615,265		—		—		—
Accrued interest receivable		3,589		3,589		—		—		3,589
Financial liabilities:
Deposits		754,009		754,510		—		754,510		—
Advances from borrowers for taxes and insurance		808		808		—		808		—
Advances from Federal Home Loan Bank		23,000		22,849		—		22,849		—
Repurchase agreements		38,353		38,353		—		38,353		—
Subordinated debentures		10,310		10,099		—		—		10,099