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Fair Values of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Values of Financial Instruments [Abstract]  
Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value measurements of assets and liabilities measured on a recurring basis and the level within the ASC 820 fair value hierarchy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

December 31, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Available for sale securities

 

 

 

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

125,801

 

$

 -

 

$

125,801

 

$

 -

Collateralized mortgage obligations

 

 

91,373

 

 

 -

 

 

91,373

 

 

 -

Municipal obligations

 

 

166,250

 

 

 -

 

 

166,250

 

 

 -

Corporate obligations

 

 

2,198

 

 

 -

 

 

 -

 

 

2,198

Interest rate swap asset

 

 

1,278

 

 

 -

 

 

1,278

 

 

 -

Interest rate swap liability

 

 

1,278

 

 

 -

 

 

1,278

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

December 31, 2018

 

 

  

 

 

  

 

 

  

 

 

  

Available for sale securities

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

104,343

 

$

 -

 

$

104,343

 

$

 -

Collateralized mortgage obligations

 

 

109,281

 

 

 -

 

 

109,281

 

 

 -

Municipal obligations

 

 

154,896

 

 

 -

 

 

154,896

 

 

 -

Corporate obligations

 

 

2,355

 

 

 -

 

 

 -

 

 

2,355

Interest rate swap asset

 

 

599

 

 

 -

 

 

599

 

 

 -

Interest rate swap liability

 

 

599

 

 

 -

 

 

599

 

 

 -

 

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

The following is a reconciliation of the beginning and ending balances for the years ended December 31, 2019, 2018 and 2017 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:

 

 

 

 

 

 

 

 

 

 

 

 

2019

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,355

 

$

2,721

 

$

2,588

Total realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

 

Included in net income

 

 

 -

 

 

(44)

 

 

 -

Included in other comprehensive income (loss)

 

 

(150)

 

 

561

 

 

133

Purchases, issuances and settlements

 

 

(7)

 

 

(883)

 

 

 -

Ending balance

 

$

2,198

 

$

2,355

 

$

2,721

Total gains for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date

 

$

 -

 

$

 -

 

$

 -

 

Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range

 

Trust Preferred Securities

 

$

2,198

 

Discounted cash flow

 

Discount rate

 

 6.3

%

 

 

 

 

 

  

 

Constant prepayment rate

 

 2.0

%

 

 

 

 

 

  

 

Cumulative projected prepayments

 

 40.0

%

 

 

 

 

 

  

 

Probability of default

 

 1.6

%

 

 

 

 

 

  

 

Projected cures given deferral

 

0-15.0

%

 

 

 

 

 

  

 

Loss severity

 

 26.5

%

Impaired loans (collateral dependent)

 

$

460

 

Third party valuations

 

Discount to reflect realizable value less estimated selling costs

 

7.2-34.9

%

Other real estate owned

 

$

188

 

Third party valuations

 

Discount to reflect realizable value less estimated selling costs

 

 20.0

%

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range

 

Trust Preferred Securities

 

$

2,355

 

Discounted cash flow

 

Discount rate

 

 6.8

%

 

 

 

  

 

  

 

Constant prepayment rate

 

 2.0

%

 

 

 

  

 

  

 

Cumulative projected prepayments

 

 40.0

%

 

 

 

  

 

  

 

Probability of default

 

 1.7

%

 

 

 

  

 

  

 

Projected cures given deferral

 

0 - 15.0

%

 

 

 

  

 

  

 

Loss severity

 

 21.4

%

 

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

    

Amount

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

Assets

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Cash and cash equivalents

 

$

32,323

 

$

32,323

 

$

32,323

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

3,496

 

 

3,496

 

 

3,496

 

 

 -

 

 

 -

Loans held for sale

 

 

13,397

 

 

13,798

 

 

 -

 

 

13,798

 

 

 -

Loans, net

 

 

1,476,925

 

 

1,450,636

 

 

 -

 

 

 -

 

 

1,450,636

FHLB stock

 

 

13,115

 

 

13,115

 

 

 -

 

 

13,115

 

 

 -

Interest receivable

 

 

6,932

 

 

6,932

 

 

 -

 

 

6,932

 

 

 -

Liabilities

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,553,478

 

 

1,555,045

 

 

1,050,827

 

 

 -

 

 

504,218

FHLB advances

 

 

245,879

 

 

246,512

 

 

 -

 

 

246,512

 

 

 -

Other borrowings

 

 

17,573

 

 

17,150

 

 

 -

 

 

17,150

 

 

 -

Interest payable

 

 

1,071

 

 

1,071

 

 

 -

 

 

1,071

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

    

Amount

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

Assets

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Cash and cash equivalents

 

$

33,414

 

$

33,414

 

$

33,414

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

4,239

 

 

4,239

 

 

4,239

 

 

 -

 

 

 -

Loans held for sale

 

 

3,987

 

 

4,011

 

 

 -

 

 

4,011

 

 

 -

Loans, net

 

 

1,482,662

 

 

1,456,270

 

 

 -

 

 

 -

 

 

1,456,270

FHLB stock

 

 

13,034

 

 

13,034

 

 

 -

 

 

13,034

 

 

 -

Interest receivable

 

 

6,940

 

 

6,940

 

 

 -

 

 

6,940

 

 

 -

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,519,225

 

 

1,514,852

 

 

1,030,785

 

 

 -

 

 

484,067

FHLB advances

 

 

292,497

 

 

290,092

 

 

 -

 

 

290,092

 

 

 -

Other borrowings

 

 

17,988

 

 

17,665

 

 

 -

 

 

17,665

 

 

 -

Interest payable

 

 

1,075

 

 

1,075

 

 

 -

 

 

1,075

 

 

 -