Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2020
Securities available for sale:
U.S. Government agencies	$	9,755	$	—	$	9,755	$	—
Mortgage-backed		94,620		—		94,620		—
		104,375		—		104,375		—

Equity		1,350		—		1,350		—
Total	$	105,725	$	—	$	105,725	$	—


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2019
Securities available for sale:
U.S. Government agencies	$	23,826	$	—	$	23,826	$	—
Mortgage-backed		98,965		—		98,965		—
		122,791		—		122,791		—

Equity		1,342		—		1,342		—
Total	$	124,133	$	—	$	124,133	$	—

Fair Value of Assets Measured on Nonrecurring Basis


	Quantitative Information about Level 3 Fair Value Measurements
								Weighted
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range	Average (3)
March 31, 2020
Nonrecurring measurements:

Impaired loans	$	610	Appraisal of collateral	(1)	Liquidation expense	(2)	10%	(10%)


Impaired loans	$	2,586	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%	(6%)

Other real estate owned	$	38	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 19%	(19%)


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range
December 31, 2019
Nonrecurring measurements:

Impaired loans	$	2,489	Appraisal of collateral	(1)	Liquidation expense	(2)	10%


Impaired loans	$	2,599	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%

Other real estate owned	$	74	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 31%
					Liquidation expense	(2)	10%

(1)

Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable.

(2)

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

(3)

Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of Estimated Fair Values of Financial Assets and Liabilities


	March 31, 2020				December 31, 2019
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	96,251	$	96,251	$	94,971	$	94,971

Level 2 inputs
Investment securities held to maturity	$	8,687	$	8,718	$	8,786	$	8,654
Restricted securities		4,263		4,263		4,190		4,190
Cash surrender value on life insurance		30,027		30,027		29,770		29,770

Level 3 inputs
Loans, net	$	1,266,615	$	1,250,797	$	1,238,147	$	1,242,867

Financial liabilities
Level 2 inputs
Deposits:
Noninterest-bearing demand	$	355,054	$	355,054	$	356,618	$	356,618
Checking plus interest		296,421		296,421		302,227		302,227
Money market		268,355		268,355		262,050		262,050
Savings		146,202		146,202		143,322		143,322
Club		774		774		387		387
Certificates of deposit, $100,000 or more		131,003		133,113		127,600		128,167
Other time		150,985		152,240		149,130		149,209
Short-term borrowings		2,162		2,162		1,226		1,226
Long-term borrowings		15,000		15,005		15,000		15,040