Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value of Assets and Liabilities

Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis

	June 30, 2019
	Fair Value Measurements Using						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	17,197	$	—	$	17,197
Mortgage-backed securities		—		95,635		—		95,635
Obligations of states and political subdivisions		—		87,595		—		87,595
Total securities available for sale		—		200,427		—		200,427
Loans held for sale		—		89,185		—		89,185
Derivatives
IRLC		—		1,693		—		1,693
Interest rate swaps on loans		—		2,083		—		2,083
Cash flow hedges		—		6		—		6
Total assets	$	—	$	293,394	$	—	$	293,394
Liabilities:
Derivatives
Interest rate swaps on loans	$	—	$	2,083	$	—	$	2,083
Cash flow hedges		—		36		—		36
Forward sales of TBA securities		—		219		—		219
Total liabilities	$	—	$	2,338	$	—	$	2,338

	December 31, 2018
	Fair Value Measurements Using						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	17,473	$	—	$	17,473
Mortgage-backed securities		—		104,983		—		104,983
Obligations of states and political subdivisions		—		92,454		—		92,454
Total securities available for sale		—		214,910		—		214,910
Loans held for sale		—		41,895		—		41,895
Derivatives
IRLC		—		636		—		636
Interest rate swaps on loans		—		1,607		—		1,607
Cash flow hedges		—		289		—		289
Total assets	$	—	$	259,337	$	—	$	259,337
Liabilities:
Derivatives - interest rate swaps on loans	$	—	$	1,607	$	—	$	1,607
Total liabilities	$	—	$	1,607	$	—	$	1,607

Schedule of balances of assets measured at fair value on a nonrecurring basis

	June 30, 2019
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	102	$	102
Other real estate owned, net		—		—		268		268
Total	$	—	$	—	$	370	$	370

	December 31, 2018
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	102	$	102
Other real estate owned, net		—		—		246		246
Total	$	—	$	—	$	348	$	348

Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis

	Fair Value Measurements at June 30, 2019
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	102	Appraisals	Discount to reflect current market conditions and estimated selling costs	30%
Other real estate owned, net		268	Appraisals	Discount to reflect current market conditions and estimated selling costs	33%-75%
Total	$	370

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at June 30, 2019 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	94,655	$	94,655	$	—	$	—	$	94,655
Securities available for sale		200,427		—		200,427		—		200,427
Loans, net		1,056,934		—		—		1,061,710		1,061,710
Loans held for sale		89,185		—		89,185		—		89,185
Derivatives
IRLC		1,693		—		1,693		—		1,693
Interest rate swaps on loans		2,083		—		2,083		—		2,083
Cash flow hedges		6		—		6		—		6
Bank-owned life insurance		16,256		—		16,256		—		16,256
Accrued interest receivable		7,229		7,229		—		—		7,229
Financial liabilities:
Demand deposits		813,692		813,692		—		—		813,692
Time deposits		396,517		—		395,641		—		395,641
Borrowings		161,636		—		154,259		—		154,259
Derivatives
Cash flow hedges		36		—		36		—		36
Interest rate swaps on loans		2,083		—		2,083		—		2,083
Forward sales of TBA securities		219		—		219		—		219
Accrued interest payable		1,276		1,276		—		—		1,276

	Carrying		Fair Value Measurements at December 31, 2018 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	115,013	$	115,013	$	—	$	—	$	115,013
Securities available for sale		214,910		—		214,910		—		214,910
Loans, net		1,028,097		—		—		1,021,145		1,021,145
Loans held for sale		41,895		—		41,895		—		41,895
Derivatives
IRLC		636		—		636		—		636
Interest rate swaps on loans		1,607		—		1,607		—		1,607
Cash flow hedges		289		—		289		—		289
Bank-owned life insurance		16,065		—		16,065		—		16,065
Accrued interest receivable		7,436		7,436		—		—		7,436
Financial liabilities:
Demand deposits		835,101		835,101		—		—		835,101
Time deposits		346,560		—		343,507		—		343,507
Borrowings		159,691		—		152,015		—		152,015
Derivatives - interest rate swaps on loans		1,607		—		1,607		—		1,607
Accrued interest payable		920		920		—		—		920