6. Fair Value (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Available for sale securities measured at fair value on a recurring basis

(Dollars in thousands)
	March 31, 2019
	Fair Value Measurements		Level 1 Valuation		Level 2 Valuation		Level 3 Valuation
Mortgage-backed securities	$	53,631		-		53,631		-
U.S. Government
sponsored enterprises	$	33,614		-		33,614		-
State and political subdivisions	$	96,933		-		96,933		-
Trust preferred securities	$	250		-		-		250

(Dollars in thousands)
	December 31, 2018
	Fair Value Measurements		Level 1 Valuation		Level 2 Valuation		Level 3 Valuation
Mortgage-backed securities	$	52,103		-		52,103		-
U.S. Government
sponsored enterprises	$	34,634		-		34,634		-
State and political subdivisions	$	107,591		-		107,591		-
Trust preferred securities	$	250		-		-		250

Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs

(Dollars in thousands)
	Investment Securities Available for Sale
	Level 3 Valuation
Balance, beginning of period	$	250
Change in book value		-
Change in gain/(loss) realized and unrealized		-
Purchases/(sales and calls)		-
Transfers in and/or (out) of Level 3		-
Balance, end of period	$	250
Change in unrealized gain/(loss) for assets still held in Level 3	$	-

Fair value measurements for mortgage loans held for sale, impaired loans and other real estate on a non-recurring basis

(Dollars in thousands)
	Fair Value Measurements March 31, 2019		Level 1 Valuation		Level 2 Valuation		Level 3 Valuation
Mortgage loans held for sale	$	361		-		-		361
Impaired loans	$	25,154		-		-		25,154
Other real estate	$	27		-		-		27

(Dollars in thousands)
	Fair Value Measurements December 31, 2018		Level 1 Valuation		Level 2 Valuation		Level 3 Valuation
Mortgage loans held for sale	$	680		-		-		680
Impaired loans	$	21,695		-		-		21,695
Other real estate	$	27		-		-		27

(Dollars in thousands)
	Fair Value March 31, 2019		Fair Value December 31, 2018		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Mortgage loans held for sale	$	361		680	Rate lock commitment	N/A	N/A
Impaired loans	$	25,154		21,695	Appraised value and discounted cash flows	Discounts to reflect current market conditions and ultimate collectability	0 - 25%
Other real estate	$	27		27	Appraised value	Discounts to reflect current market conditions and estimated costs to sell	0 - 25%

Carrying amount and estimated fair value of the Company's financial instruments

(Dollars in thousands)
			Fair Value Measurements at March 31, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	51,214		51,214		-		-		51,214
Investment securities available for sale	$	184,428		-		184,178		250		184,428
Other investments	$	4,329		-		-		4,329		4,329
Mortgage loans held for sale	$	361		-		-		361		361
Loans, net	$	816,996		-		-		795,070		795,070
Cash surrender value of life insurance	$	16,031		-		16,031		-		16,031
Liabilities:
Deposits	$	908,114		-		-		888,492		888,492
Securities sold under agreements
to repurchase	$	41,231		-		41,231		-		41,231
Junior subordinated debentures	$	20,619		-		20,619		-		20,619

(Dollars in thousands)
			Fair Value Measurements at December 31, 2018
	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	43,370		43,370		-		-		43,370
Investment securities available for sale	$	194,578		-		194,328		250		194,578
Other investments	$	4,361		-		-		4,361		4,361
Mortgage loans held for sale	$	680		-		-		680		680
Loans, net	$	797,578		-		-		748,917		748,917
Cash surrender value of life insurance	$	15,936		-		15,936		-		15,936
Liabilities:
Deposits	$	877,213		-		-		857,999		857,999
Securities sold under agreements
to repurchase	$	58,095		-		58,095		-		58,095
Junior subordinated debentures	$	20,619		-		20,619		-		20,619