Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of fair value assets and liabilities measured on recurring basis

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



			Fair Value Measurements at December 31, 2019 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2019		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
U.S. Treasury	$	14,987	$	—	$	14,987	$	—
Federal agencies and GSEs	128,114		—		128,114		—
Mortgage-backed and CMOs	184,240		—		184,240		—
State and municipal	42,154		—		42,154		—
Corporate	9,700		—		9,700		—
Total securities available for sale	$	379,195	$	—	$	379,195	$	—
Liabilities:
Derivative - cash flow hedges	$	2,658	$	—	$	2,658	$	—



			Fair Value Measurements at December 31, 2018 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2018		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
Federal agencies and GSEs	$	134,039	$	—	$	134,039	$	—
Mortgage-backed and CMOs	111,867		—		111,867		—
State and municipal	79,902		—		79,902		—
Corporate	6,845		—		6,845		—
Total securities available for sale	$	332,653	$	—	$	332,653	$	—
Equity securities	$	1,830	$	—	$	1,830	$	—
Liabilities:
Derivative - cash flow hedges	$	804	$	—	$	804	$	—

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, 2019 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2019		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	2,027	$	—	$	2,027	$	—
Impaired loans, net of valuation allowance	759		—		—		759
Other real estate owned, net	1,308		—		—		1,308



			Fair Value Measurements at December 31, 2018 Using
	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2018		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	640	$	—	$	640	$	—
Impaired loans, net of valuation allowance	171		—		—		171
Other real estate owned, net	869		—		—		869

Schedule of quantitative information of assets measured at Level 3

Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2019 and 2018:



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	%

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, 2019 are as follows (dollars in thousands):



	Fair Value Measurements at December 31, 2019 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	$	79,582	$	79,582	$	—	$	—	$	79,582
Securities available for sale	379,195		—		379,195		—		379,195
Restricted stock	8,630		—		8,630		—		8,630
Loans held for sale	2,027		—		2,027		—		2,027
Loans, net of allowance	1,817,663		—		—		1,818,655		1,818,655
Bank owned life insurance	27,817		—		27,817		—		27,817
Accrued interest receivable	6,625		—		6,625		—		6,625

Financial Liabilities:
Deposits	$	2,060,547	$	—	$	2,062,823	$	—	$	2,062,823
Repurchase agreements	40,475		—		40,475		—		40,475
Subordinated debt	7,517		—		8,525		—		8,525
Junior subordinated debt	28,029		—		—		22,697		22,697
Accrued interest payable	1,213		—		1,213		—		1,213
Derivative - cash flow hedges	2,658		—		2,658		—		2,658

The carrying values and estimated fair values of the Company's financial instruments at December 31, 2018 are as follows (dollars in thousands):



	Fair Value Measurements at December 31, 2018 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	$	64,255	$	64,255	$	—	$	—	$	64,255
Equity securities	1,830		—		1,830		—		1,830
Securities available for sale	332,653		—		332,653		—		332,653
Restricted stock	5,247		—		5,247		—		5,247
Loans held for sale	640		—		640		—		640
Loans, net of allowance	1,344,671		—		—		1,334,236		1,334,236
Bank owned life insurance	18,941		—		18,941		—		18,941
Accrued interest receivable	5,449		—		5,449		—		5,449

Financial Liabilities:
Deposits	$	1,566,227	$	—	$	1,570,721	$	—	$	1,570,721
Repurchase agreements	35,243		—		35,243		—		35,243
Junior subordinated debt	27,927		—		—		22,577		22,577
Accrued interest payable	795		—		795		—		795
Derivative - cash flow hedges	804		—		804		—		804