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Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements
(In thousands)	Balance		Level 1		Level 2		Level 3
Assets at March 31, 2020:
Available for sale securities:
Obligations of U.S. Government corporations and agencies	$	65,717	$	-	$	65,717	$	-
Obligations of states and political subdivisions		15,935		-		15,935		-
Total available for sale securities		81,652		-		81,652		-
Mutual funds		412		412		-		-
Total assets at fair value	$	82,064	$	412	$	81,652	$	-
Liabilities at March 31, 2020:
Interest rate swaps	$	799	$	-	$	799	$	-
Total liabilities at fair value	$	799	$	-	$	799	$	-
Assets at December 31, 2019:
Available for sale securities:
Obligations of U.S. Government corporations and agencies	$	63,941	$	-	$	63,941	$	-
Obligations of states and political subdivisions		15,842		-		15,842		-
Total available for sale securities		79,783		-		79,783		-
Mutual funds		403		403		-		-
Total assets at fair value	$	80,186	$	403	$	79,783	$	-
Liabilities at December 31, 2019:
Interest rate swaps		140	$	-	$	140	$	-
Total liabilities at fair value	$	140	$	-	$	140	$	-

Summary of Financial Assets Measured at Fair Value on a Nonrecurring Basis

The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019.

	March 31, 2020
(In thousands)	Balance		Level 1		Level 2		Level 3
Assets:
Mortgage loans held for sale	$	936	$	-	$	936	$	-
Impaired loans, net		1,570		-		839		731
Other real estate owned, net		1,356		-		-		1,356

	December 31, 2019
(In thousands)	Balance		Level 1		Level 2		Level 3
Assets:
Mortgage loans held for sale	$	247	$	-	$	247	$	-
Impaired loans, net		1,570		-		-		1,570
Other real estate owned, net		1,356		-		-		1,356

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table displays quantitative information about Level 3 fair value measurements at March 31, 2020 and December 31, 2019.

	March 31, 2020
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Weighted Average Discount
Impaired loans, net	$	731	Appraised values	Age of appraisal, current market conditions, experience within local market		13	%
Other real estate owned, net		1,356	Appraised values	Age of appraisal, current market conditions and selling costs		18	%
Total	$	2,087

	December 31, 2019
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Weighted Average Discount
Impaired loans, net	$	1,570	Appraised values	Age of appraisal, current market conditions, experience within local market		13	%
Other real estate owned, net		1,356	Appraised values	Age of appraisal, current market conditions and selling costs		18	%
Total	$	2,926

Schedule of Estimated Fair Values of Financial Instruments

The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows:

	March 31, 2020
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Assets
Cash and short-term investments	$	32,767	$	32,767	$	-	$	-	$	32,767
Securities available for sale		81,652		-		81,652		-		81,652
Restricted investments		1,838		-		1,838		-		1,838
Mortgage loans held for sale		936		-		936		-		936
Loans, net		562,099		-		-		558,626		558,626
Accrued interest receivable		1,926		-		1,926		-		1,926
Mutual funds		412		412		-		-		412
Bank-owned life insurance		14,051		-		14,051		-		14,051
Total financial assets	$	695,681	$	33,179	$	100,403	$	558,626	$	692,208
Liabilities
Deposits	$	629,560	$	-	$	630,149	$	-	$	630,149
FHLB advances		12,673		-		13,137		-		13,137
Junior subordinated debt		4,124		-		4,322		-		4,322
Accrued interest payable		169		-		169		-		169
Interest rate swaps		799		-		799		-		799
Total financial liabilities	$	647,325	$	-	$	648,576	$	-	$	648,576

	December 31, 2019
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Assets
Cash and short-term investments	$	46,341	$	46,341	$	-	$	-	$	46,341
Securities available for sale		79,783		-		79,783		-		79,783
Restricted investments		2,016		-		2,016		-		2,016
Mortgage loans held for sale		247				247		-		247
Loans, net		544,999		-		-		541,367		541,367
Accrued interest receivable		1,984		-		1,984		-		1,984
Mutual funds		403		403		-		-		403
Bank-owned life insurance		13,961		-		13,961		-		13,961
Total financial assets	$	689,734	$	46,744	$	97,991	$	541,367	$	686,102
Liabilities
Deposits	$	622,155	$	-	$	622,295	$	-	$	622,295
FHLB advances		16,695		-		16,724		-		16,724
Junior subordinated debt		4,124		-		4,446		-		4,446
Accrued interest payable		217		-		217		-		217
Interest rate swaps		140		-		140		-		140
Total financial liabilities	$	643,331	$	-	$	643,822	$	-	$	643,822