Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2019

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

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis.


	December 31, 2019
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Assets
Securities available for sale:
US government agencies	$	-	499	-	499
SBA securities		-	531	-	531
State and political subdivisions		-	4,184	-	4,184
Asset-backed securities		-	13,167	-	13,167
Mortgage-backed securities		-	49,313	-	49,313
Mortgage loans held for sale		-	27,046	-	27,046
Mortgage loan interest rate lock commitments		-	344	-	344
Total assets measured at fair value on a recurring basis	$	-	95,084	-	95,084

Liabilities
MBS forward sales commitments	$	-	39	-	39
Total liabilities measured at fair value on a recurring basis	$	-	39	-	39

	December 31, 2018
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Assets
Securities available for sale:
US government agencies	$	-	8,782	-	8,782
SBA securities		-	3,525	-	3,525
State and political subdivisions		-	8,356	-	8,356
Asset-backed securities		-	9,558	-	9,558
Mortgage-backed securities		-	44,684	-	44,684
Mortgage loans held for sale		-	9,241	-	9,241
Mortgage loan interest rate lock commitments		-	345	-	345
Total assets measured at fair value on a recurring basis	$	-	84,491	-	84,491

Liabilities
MBS forward sales commitments	$	-	121	-	121
Total liabilities measured at fair value on a recurring basis	$	-	121	-	121

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

The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis.


	December 31, 2019
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Assets
Impaired loans	$	-	5,634	4,941	10,575
Total assets measured at fair value on a nonrecurring basis	$	-	5,634	4,941	10,575

	December 31, 2018
	Level 1		Level 2	Level 3	Total
Assets
Impaired loans	$	-	2,190	8,368	10,558
Total assets measured at fair value on a nonrecurring basis	$	-	2,190	8,368	10,558

Schedule of unobservable inputs used in the fair value measurements

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:

	Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Impaired loans	Appraised Value/ Discounted Cash Flows	Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal	0-25%
Other real estate owned	Appraised Value/ Comparable Sales	Discounts to appraisals for estimated holding or selling costs	0-25%

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

The estimated fair values of the Company’s financial instruments at December 31, 2019 and 2018 are as follows:


	December 31, 2019
(dollars in thousands)	Carrying		Fair	Level 1	Level 2	Level 3
Financial Assets:
Other investments, at cost	$	6,948	6,948	-	-	6,948
Loans⁽¹⁾		1,914,870	1,900,216	-	-	1,900,216
Financial Liabilities:
Deposits		1,876,124	1,772,121	-	1,772,121	-
FHLB and other borrowings		110,000	109,737	-	109,737	-
Subordinated debentures		35,890	33,250	-	33,250	-

	December 31, 2018
(dollars in thousands)	Carrying		Fair	Level 1	Level 2	Level 3
Financial Assets:
Other investments, at cost	$	4,121	4,121	-	-	4,121
Loans⁽¹⁾		1,648,998	1,618,618	-	-	1,618,618
Financial Liabilities:
Deposits		1,648,136	1,515,123	-	1,515,123	-
FHLB and other borrowings		50,000	50,147	-	50,147	-
Subordinated debentures		13,403	14,807	-	14,807	-

⁽¹⁾	Carrying amount is net of the allowance for loan losses and previously presented impaired loans.