Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2020:
Available for sale securities:
Obligations of U.S. Government corporations and agencies	$	63,815	$	-	$	63,815	$	-
Obligations of states and political subdivisions		20,775		-		20,775		-
Total available for sale securities		84,590		-		84,590		-
Mutual funds		419		419		-		-
Total	$	85,009	$	419	$	84,590	$	-
Liabilities at September 30, 2020:
Interest rate swaps	$	634	$	-	$	634	$	-
Total	$	634	$	-	$	634	$	-
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	$	80,186	$	403	$	79,783	$	-
Liabilities at December 31, 2019:
Interest rate swaps		140	$	-	$	140	$	-
Total	$	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 September 30, 2020 and December 31, 2019.

	September 30, 2020
(In thousands)	Balance		Level 1		Level 2		Level 3
Assets:
Mortgage loans held for sale	$	235	$	-	$	235	$	-
Impaired loans, net		1,220		-		-		1,220
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 September 30, 2020 and December 31, 2019.

	September 30, 2020
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Weighted Average Discount
Impaired loans, net	$	1,220	Appraised values	Age of appraisal, current market conditions, experience within local market		5	%
Other real estate owned, net		1,356	Appraised values	Age of appraisal, current market conditions and selling costs		18	%
Total	$	2,576

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:

	September 30, 2020
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Assets
Cash and short-term investments	$	73,673	$	73,673	$	-	$	-	$	73,673
Securities available for sale		84,590		-		84,590		-		84,590
Restricted investments		1,835		-		1,835		-		1,835
Mortgage loans held for sale		235		-		235		-		235
Loans, net		631,402		-		-		630,236		630,236
Accrued interest receivable		2,635		-		2,635		-		2,635
Mutual funds		419		419		-		-		419
Bank-owned life insurance		14,231		-		14,231		-		14,231
Total financial assets	$	809,020	$	74,092	$	103,526	$	630,236	$	807,854
Liabilities
Deposits	$	739,834	$	-	$	740,308	$	-	$	740,308
FHLB advances		12,629		-		13,199		-		13,199
Junior subordinated debt		4,124		-		4,058		-		4,058
Accrued interest payable		135		-		135		-		135
Interest rate swaps		634		-		634		-		634
Total financial liabilities	$	757,356	$	-	$	758,334	$	-	$	758,334