Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the Consolidated Balance Sheets at their fair value as of September 30, 2017 and December 31, 2016 by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
September 30, 2017
Assets:
Securities available-for-sale
U.S. Treasury security	$	998	$	—	$	—	$	998
U.S. Government agencies		—		8,300		—		8,300
Mortgage-backed securities of government agencies		—		50,506		—		50,506
Asset-backed securities of government agencies		—		1,194		—		1,194
State and political subdivisions		—		27,477		—		27,477
Corporate bonds		—		9,483		—		9,483

Total debt securities		998		96,960		—		97,958
Equity securities		90		—		—		90

Total available-for-sale securities	$	1,088	$	96,960	$	—	$	98,048


December 31, 2016
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,001	$	—	$	—	$	1,001
U.S. Government agencies		—		6,402		—		6,402
Mortgage-backed securities of government agencies		—		55,837		—		55,837
Other mortgage-backed securities		—		65		—		65
Asset-backed securities of government agencies		—		1,266		—		1,266
State and political subdivisions		—		29,708		—		29,708
Corporate bonds		—		9,516		—		9,516

Total debt securities		1,001		102,794		—		103,795
Equity securities		80		—		—		80

Total available-for-sale securities	$	1,081	$	102,794	$	—	$	103,875

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of September 30, 2017 and December 31, 2016, by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
September 30, 2017
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	6,381	$	6,381

December 31, 2016
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	6,427	$	6,427

Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:


	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
(Dollars in thousands)
September 30, 2017
Impaired loans	$	2,120	Discounted cash flow	Remaining term Discount rate	7 mo to 29.8 yrs (182 months) 3.5% to 9.8% (4.9%)

		4,261	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾ Liquidation expense ⁽²⁾	0% to -25% (-20%) -10%

December 31, 2016
Impaired loans	$	5,330	Discounted cash flow	Remaining term Discount rate	6 mos to 29.9 yrs / (61.1 mos) 3.1% to 12.0% / (4.9%)

		1,097	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾ Liquidation expense ⁽²⁾	0% to -50% (-21.7%) -10%

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

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