Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Measurement [Abstract]

Fair Value Measurements by Level of Valuation Inputs

The following tables summarize financial assets and financial liabilities measured at fair value as of June 30, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no transfers of assets between fair value Level 1 and Level 2 during the six months ended June 30, 2019 or 2018.

			(Level 1)		(Level 2)		(Level 3)
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
(Dollars in thousands)	June 30,		for Identical		Observable		Unobservable
	2019		Assets		Inputs		Inputs
Measured at fair value on a recurring basis:
Debt securities available-for-sale:
Obligations of U.S. Government agencies and corporations	$	23,963	$	—	$	23,963	$	—
Obligations of state and political subdivisions		6,321		—		6,321		—
Mortgage-backed securities		149,735		—		149,735		—
Equity securities		1,133		1,133		—		—
Mortgage servicing rights		190		—		—		190
Measured at fair value on a non-recurring basis:
Impaired loans	$	186	$	—	$	—	$	186
Other real estate owned		149		—		—		149

			(Level 1)		(Level 2)		(Level 3)
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
(Dollars in thousands)	December 31,		for Identical		Observable		Unobservable
	2018		Assets		Inputs		Inputs
Measured at fair value on a recurring basis:
Debt securities available-for-sale:
Obligations of U.S. Government agencies and corporations	$	23,266	$	—	$	23,266	$	—
Obligations of state and political  subdivisions		18,181		—		18,181		—
Mortgage-backed securities		100,506		—		100,506		—
Equity securities		1,118		1,118		—		—
Mortgage servicing rights		200		—		—		200
Measured at fair value on a non-recurring basis:
Impaired loans	$	1,104	$	—	$	—	$	1,104
Other real estate owned		149		—		—		149

Quantitative Information for Assets Measured at Fair Value

The following tables present additional quantitative information about assets measured at fair value for which Level 3 inputs have been used to determine fair value:

(Dollars in thousands)
	Fair Value						Weighted
June 30, 2019	Estimate		Valuation Technique	Unobservable Input	Range		Average
Impaired loans	$	186	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	0% - 20%	%	6	%
Other real estate owned		149	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	2	%	2	%
Mortgage servicing rights		190	Multiple of annual servicing fee	Estimated pre-payment speed, based on rate and term	300 - 400	%	369	%

(Dollars in thousands)
	Fair Value						Weighted
December 31, 2018	Estimate		Valuation Technique	Unobservable Input	Range		Average
Impaired loans	$	1,104	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	0% - 15	%	14	%
Other real estate owned		149	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	2	%	2	%
Mortgage servicing rights		200	Multiple of annual servicing fee	Estimated pre-payment speed, based on rate and term	300 - 400	%	369	%

(1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:

	Financial Instruments
(Dollars in thousands)	June 30, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	14,431	$	14,431	$	15,617	$	15,617
Interest bearing deposits with banks		2,117		2,117		110		110
Federal funds sold		9,000		9,000		729		729
Interest bearing time deposits with banks		2,700		2,700		3,290		3,290
Securities		181,152		181,152		141,953		141,953
Restricted investment in bank stock		3,098		3,098		2,441		2,441
Loans, net of allowance for loan losses		404,436		405,018		414,597		415,195
Mortgage servicing rights		190		190		200		200
Accrued interest receivable		1,841		1,841		1,681		1,681
Financial liabilities:
Non-interest bearing deposits	$	123,355	$	123,355	$	126,057		126,057
Interest bearing deposits		411,020		413,983		395,665		395,226
Securities sold under agreements to repurchase		2,857		2,857		2,911		2,911
Short-term borrowings		—		—		11,600		11,600
Long-term debt		45,000		45,605		15,000		14,958
Other interest bearing liabilities		1,596		1,597		1,596		1,597
Accrued interest payable		450		450		289		289
Off-balance sheet financial instruments:
Commitments to extend credit	$	—	$	—	$	—	$	—
Letters of credit		—		—		—		—

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

The tables exclude financial instruments for which the carrying amount approximates fair value.

(Dollars in thousands)					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
June 30, 2019
Financial instruments - Assets
Interest bearing time deposits with banks	$	2,700	$	2,700	$	—	$	2,700	$	—
Loans, net of allowance for loan losses		404,436		405,018		—		—		405,018
Financial instruments - Liabilities
Interest bearing deposits	$	411,020	$	413,983	$	—	$	413,983	$	—
Long-term debt		45,000		45,605		—		45,605		—
Other interest bearing liabilities		1,596		1,597		—		1,597		—

(Dollars in thousands)					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
December 31, 2018
Financial instruments - Assets
Interest bearing time deposits with banks	$	3,290	$	3,290	$	—	$	3,290	$	—
Loans, net of allowance for loan losses		414,597		415,195		—		—		415,195
Financial instruments - Liabilities
Interest bearing deposits	$	395,665	$	395,226	$	—	$	395,226	$	—
Long-term debt		15,000		14,958		—		14,958		—
Other interest bearing liabilities		1,596		1,597		—		1,597		—