Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

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

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2020:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	30,530	$	—	$	30,530	$	—
Municipal securities		91,989		—		91,989		—
Other debt securities		25,118		—		25,118		—
Mortgage-backed securities (GSEs)		67,997		—		67,997		—
Total securities available-for-sale	$	215,634	$	—	$	215,634	$	—
Liabilities:
Derivative financial instruments	$	6,174	$	—	$	6,174	$	—
December 31, 2019:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	19,000	$	—	$	19,000	$	—
Municipal securities		64,391		—		64,391		—
Other debt securities		3,470		—		3,470		—
Mortgage-backed securities (GSEs)		91,487		—		91,487		—
Total securities available-for-sale	$	178,348	$	—	$	178,348	$	—
Liabilities:
Derivative financial instruments	$	3,446		—	$	3,446		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the

consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2020:
Impaired loans	$	2,455	$	—	$	—	$	2,455
Other real estate owned		4,619		—		—		4,619
December 31, 2019:
Impaired loans	$	2,185	$	—	$	—	$	2,185
Other real estate owned		1,757		—		—		1,757

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):

					Weighted
			Valuation	Significant Other	Average of
	Fair Value		Technique	Unobservable Input	Input
December 31, 2020:
Impaired loans	$	2,455	Appraisal	Appraisal discounts	9	%
Other real estate owned		4,619	Appraisal	Appraisal discounts	22	%
December 31, 2019:
Impaired loans	$	2,185	Appraisal	Appraisal discounts	22	%
Other real estate owned		1,757	Appraisal	Appraisal discounts	29	%

Fair Value, by Balance Sheet Grouping

	Fair Value Measurements Using
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
December 31, 2020:
Assets:
Cash and cash equivalents	$	481,719	$	481,719	$	—	$	—	$	481,719
Securities available-for-sale		215,634		—		215,634		—		215,634
Other investments		14,794		N/A		N/A		N/A		N/A
Loans, net and loans held for sale		2,375,618		—		—		2,377,581		2,377,581
Liabilities:
Noninterest-bearing demand deposits		685,957		—		685,957		—		685,957
Interest-bearing demand deposits		649,129		—		649,129		—		649,129
Money market and savings deposits		919,631		—		919,631		—		919,631
Time deposits		550,498		—		554,120		—		554,120
Borrowings		81,199		—		82,892		—		82,892
Subordinated debt		39,346		—		—		40,550		40,550
Derivative financial instruments		6,174		—		6,174		—		6,174
December 31, 2019:
Assets:
Cash and cash equivalents	$	183,971	$	183,971	$	—	$	—	$	183,971
Securities available-for-sale		178,348		—		178,348		—		178,348
Other investments		12,913		N/A		N/A		N/A		N/A
Loans, net and loans held for sale		1,893,005		—		—		1,879,825		1,879,825
Liabilities:
Noninterest-bearing demand deposits		364,155		—		364,155		—		364,155
Interest-bearing demand deposits		380,234		—		380,234		—		380,234
Money market and savings deposits		623,284		—		623,284		—		623,284
Time deposits		679,541		—		681,902		—		681,902
Borrowings		31,623		—		31,029		—		31,029
Subordinated debt		39,261		—		—		35,868		35,868
Derivative financial instruments		3,446		—		3,446		—		3,446