Fair Value Accounting (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of assets and liabilities measured at fair value on recurring basis


	September 30, 2018
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Assets
Securities available for sale
US government agencies	$	-	8,634	-	8,634
SBA securities		-	3,472	-	3,472
State and political subdivisions		-	8,372	-	8,372
Asset-backed securities		-	6,586	-	6,586
Mortgage-backed securities		-	39,822	-	39,822
Mortgage loans held for sale		-	9,298	-	9,298
Interest rate lock commitments		-	189	-	189
MBS forward sales commitments		-	54	-	54
Total assets measured at fair value on a recurring basis	$	-	76,427	-	76,427

	December 31, 2017
	Level 1		Level 2	Level 3	Total
Assets
Securities available for sale:
US government agencies	$	-	8,653	-	8,653
SBA securities		-	4,063	-	4,063
State and political subdivisions		-	11,396	-	11,396
Mortgage-backed securities		-	43,491	-	43,491
Mortgage loans held for sale		-	11,790	-	11,790
Interest rate lock commitments		-	196	-	196
Total assets measured at fair value on a recurring basis	$	-	79,589	-	79,589

Liabilities
MBS forward sales commitments	$	-	28	-	28
Total liabilities measured at fair value on a recurring basis	$	-	28	-	28

Schedule of assets and liabilities measured at fair value on nonrecurring basis


	As of September 30, 2018
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Assets
Impaired loans	$	-	1,391	8,339	9,730
Other real estate owned		-	23	94	117
Total assets measured at fair value on a nonrecurring basis	$	-	1,414	8,433	9,847

	As of December 31, 2017
	Level 1		Level 2	Level 3	Total
Assets
Impaired loans	$	-	2,685	6,084	8,769
Other real estate owned		-	148	94	242
Total assets measured at fair value on a nonrecurring basis	$	-	2,833	6,178	9,011

Schedule of estimated fair values of the Company's financial instruments


	September 30, 2018
	Carrying		Fair
(dollars in thousands)	Amount		Value	Level 1	Level 2	Level 3
Financial Assets:
Other investments, at cost	$	4,929	4,929	-	-	4,929
Loans¹		1,591,396	1,569,385	-	-	1,569,385
Financial Liabilities:
Deposits		1,589,483	1,445,228	-	1,445,228	-
FHLB and other borrowings		68,500	68,548	-	68,548	-
Junior subordinated debentures		13,403	14,293	-	14,293	-

	December 31, 2017
	Carrying		Fair
	Amount		Value	Level 1	Level 2	Level 3
Financial Assets:
Other investments, at cost	$	4,462	4,462	-	-	4,462
Loans¹		1,359,101	1,363,915	-	-	1,363,915
Financial Liabilities:
Deposits		1,381,123	1,269,462	-	1,269,462	-
FHLB and other borrowings		67,200	67,890	-	67,890	-
Junior subordinated debentures		13,403	13,166	-	13,166	-

Carrying amount is net of the allowance for loan losses and previously presented impaired loans. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of September 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion.