Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of fair value assets and liabilities measured on recurring basis

The following table presents the balances of financial assets measured at fair value on a recurring basis during the period (dollars in thousands):



			Fair Value Measurements at December 31, 2017 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2017		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
Federal agencies and GSEs	$	112,127	$	—	$	112,127	$	—
Mortgage-backed and CMOs	105,316		—		105,316		—
State and municipal	93,626		—		93,626		—
Corporate	8,062		—		8,062		—
Equity securities	2,206		—		2,206		—
Total	$	321,337	$	—	$	321,337	$	—



			Fair Value Measurements at December 31, 2016 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2016		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
Federal agencies and GSEs	$	104,054	$	—	$	104,054	$	—
Mortgage-backed and CMOs	79,493		—		79,493		—
State and municipal	147,515		—		147,515		—
Corporate	13,492		—		13,492		—
Equity Securities	1,948		—		1,948		—
Total	$	346,502	$	—	$	346,502	$	—

Schedule of assets that were measured at fair value on a nonrecurring basis

The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands):



			Fair Value Measurements at December 31, 2017 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2017		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	1,639	$	—	$	1,639	$	—
Impaired loans, net of valuation allowance	1,391		—		—		1,391
Other real estate owned, net	1,225		—		—		1,225



			Fair Value Measurements at December 31, 2016 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2016		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	5,996	$	—	$	5,996	$	—
Impaired loans, net of valuation allowance	2,151		—		—		2,151
Other real estate owned, net	1,328		—		—		1,328

Schedule of quantitative information of assets measured at Level 3

Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2017:



Assets	Valuation Technique	Unobservable Input	Rate

Impaired loans	Discounted appraised value	Selling cost	8.00%
Impaired loans	Discounted cash flow analysis	Market rate for borrower (discount rate)	3.25% - 9.80%

Other real estate owned	Discounted appraised value	Selling cost	8.00%

Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2016:



Assets	Valuation Technique	Unobservable Input	Rate

Impaired loans	Discounted appraised value	Selling cost	8.00%

Other real estate owned	Discounted appraised value	Selling cost	6.00%

Schedule of carrying values and estimated fair values of the entity's financial instruments

The carrying values and estimated fair values of the Company's financial instruments at December 31, 2017 are as follows (dollars in thousands):



	Fair Value Measurements at December 31, 2017 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value Balance
	Carrying Value		Level 1		Level 2		Level 3		Fair Value Balance
Financial Assets:
Cash and cash equivalents	$	52,477	$	52,477	$	—	$	—	$	52,477
Securities available for sale	321,337		—		321,337		—		321,337
Restricted stock	6,110		—		6,110		—		6,110
Loans held for sale	1,639		—		1,639		—		1,639
Loans, net of allowance	1,322,522		—		—		1,317,737		1,317,737
Bank owned life insurance	18,460		—		18,460		—		18,460
Accrued interest receivable	5,231		—		5,231		—		5,231

Financial Liabilities:
Deposits	$	1,534,726	$	—	$	1,151,068	$	376,888	$	1,527,956
Repurchase agreements	10,726		—		10,726		—		10,726
Other short-term borrowings	24,000		—		24,000		—		24,000
Junior subordinated debt	27,826		—		—		28,358		28,358
Accrued interest payable	674		—		674		—		674

The carrying values and estimated fair values of the Company's financial instruments at December 31, 2016 are as follows (dollars in thousands):



	Fair Value Measurements at December 31, 2016 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value Balance
	Carrying Value		Level 1		Level 2		Level 3		Fair Value Balance
Financial Assets:
Cash and cash equivalents	$	53,207	$	53,207	$	—	$	—	$	53,207
Securities available for sale	346,502		—		346,502		—		346,502
Restricted stock	6,224		—		6,224		—		6,224
Loans held for sale	5,996		—		5,996		—		5,996
Loans, net of allowance	1,152,020		—		—		1,136,961		1,136,961
Bank owned life insurance	18,163		—		18,163		—		18,163
Accrued interest receivable	5,083		—		5,083		—		5,083

Financial Liabilities:
Deposits	$	1,370,640	$	—	$	991,785	$	374,774	$	1,366,559
Repurchase agreements	39,166		—		39,166		—		39,166
Other short-term borrowings	20,000		—		20,000		—		20,000
Long-term borrowings	9,980		—		—		10,156		10,156
Junior subordinated debt	27,724		—		—		24,932		24,932
Accrued interest payable	623		—		623		—		623