FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2019

FAIR VALUE OF ASSETS AND LIABILITIES

Summary of Financial Assets Measured on a Recurring Basis

			Quoted Prices
			in
			Active		Significant
			Markets		Other		Significant
	Fair		for Identical		Observable		Unobservable
	Value		Assets		Inputs		Inputs
(Dollars in thousands)	Measurements		(Level I)		(Level II)		(Level III)
December 31, 2019
U.S. government agencies	$	8,679	$	—	$	8,679	$	—
U.S. government-sponsored enterprises		53,249		—		53,249		—
State and political subdivisions		32,214		—		32,214		—
Mortgage-backed securities -
U.S. government-sponsored enterprises		82,469		—		82,469		—
Private mortgage-backed securities		22,445		—		19,873		2,572
Corporate debt		13,125		—		12,096		1,029
Derivative instruments
Interest rate swaps
Assets		688		—		688		—
Liabilities		3,890		—		3,890		—
December 31, 2018
U.S. government agencies	$	24,794	$	—	$	24,794	$	—
U.S. government-sponsored enterprises		20,362		—		20,362		—
State and political subdivisions		60,362		—		60,362		—
Mortgage-backed securities -
U.S. government-sponsored enterprises		73,613		—		73,613		—
Corporate debt		3,008		—		3,008		—
Derivative instruments
Interest rate swaps
Assets		2,114		—		2,114		—
Liabilities		779		—		779		—

Summary of Financial Assets Measured on a Nonrecurring Basis

			Quoted Prices
			in
			Active		Significant
			Markets		Other		Significant
	Fair		for Identical		Observable		Unobservable
	Value		Assets		Inputs		Inputs
(Dollars in thousands)	Measurements		(Level I)		(Level II)		(Level III)
December 31, 2019
Impaired loans	$	1,630	$	—	$	—	$	1,630
Foreclosed real estate		2,183		—		—		2,183
December 31, 2018
Impaired loans	$	1,785	$	—	$	—	$	1,785
Foreclosed real estate		730		—		—		730

Qualitative Information About Level 3 Fair Value Measurements

	Qualitative Information about Level III Fair Value Measurements
	Fair				Range
	Value		Valuation	Unobservable	(Weighted
(Dollars in thousands)	Estimate		Techniques	Input	Average)
December 31, 2019
Impaired loans	$	1,630	Appraisal of	Appraisal	0% to -72.0%
			collateral	adjustments (1)	(-3.6%)
Foreclosed real estate		2,183	Appraisal of collateral	Selling expenses (1)	-7.0%
					(-7.0%)
December 31, 2018
Impaired loans	$	1,785	Appraisal of	Appraisal	0% to 100.0%
			collateral	adjustments (1)	(-7.8%)
Foreclosed real estate		730	Appraisal of collateral	Selling expenses (1)	-7.0%
					(-7.0%  )

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated selling expenses. The range and weighted average of selling expenses and other appraisal adjustments are presented as a percentage of the appraisal.

Estimated Fair Values of Financial Instruments

					Quoted Prices
					in Active		Significant
					Markets		Other		Significant
	December 31, 2019				for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Value		(Level I)		(Level II)		(Level III)
Financial assets:
Cash and cash equivalents	$	43,686	$	43,686	$	43,686	$	—	$	—
Time deposits with other banks		200		200		—		200		—
Securities available for sale		212,181		212,181		—		208,580		3,601
Securities held to maturity		4,012		4,083		—		2,593		1,490
Other bank stock		12,498		12,498		—		12,498		—
Loans receivable, net of allowance		1,618,579		1,605,295		—		—		1,605,295
Accrued interest receivable		6,175		6,175		—		6,175		—
Interest rate swaps		688		688		—		688		—
Financial liabilities:
Non-maturity deposits		971,653		971,653		—		971,653		—
Time deposits		553,388		551,886		—		551,886		—
Short-term borrowings		193,000		193,081		193,081		—		—
Long-term borrowings		40,114		40,228		—		40,228		—
Subordinated debentures		27,869		26,930		—		26,930		—
Accrued interest payable		1,466		1,466		—		1,466		—
Interest rate swaps		3,890		3,890		—		3,890		—

					Quoted Prices
					in Active		Significant
					Markets		Other		Significant
	December 31, 2018				for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Value		(Level I)		(Level II)		(Level III)
Financial assets:
Cash and cash equivalents	$	26,678	$	26,678	$	26,678	$	—	$	—
Time deposits with other banks		200		200		—		200		—
Securities available for sale		182,139		182,139		—		182,139		—
Securities held to maturity		4,078		4,152		—		4,152		—
Other bank stock		11,764		11,764		—		11,764		—
Loans receivable, net of allowance		1,466,000		1,428,094		—		—		1,428,094
Accrued interest receivable		6,546		6,546		—		6,546		—
Interest rate swaps		2,114		2,114		—		2,114		—
Financial liabilities:
Non-maturity deposits		965,065		965,065		—		965,065		—
Time deposits		388,874		383,264		—		383,264		—
Short-term borrowings		175,295		175,366		175,366		—		—
Long-term borrowings		44,611		44,365		—		44,365		—
Subordinated debentures		27,859		26,840		—		26,840		—
Accrued interest payable		1,480		1,480		—		1,480		—
Interest rate swaps		779		779		—		779		—