Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2018

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017.

December 31, 2018	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	50,682	$	50,682	$	—	$	—
Securities of U.S. government agencies and corporations		42,076		—		42,076		—
Obligations of states and political subdivisions		19,168		—		19,168		—
Collateralized mortgage obligations		63,799		—		63,799		—
Mortgage-backed securities		138,912		—		138,912		—

Total investments at fair value	$	314,637	$	50,682	$	263,955	$	—

December 31, 2017	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	18,464	$	18,464	$	—	$	—
Securities of U.S. government agencies and corporations		21,109		—		21,109		—
Obligations of states and political subdivisions		23,208		—		23,208		—
Collateralized mortgage obligations		66,083		—		66,083		—
Mortgage-backed securities		151,877		—		151,877		—

Total investments at fair value	$	280,741	$	18,464	$	262,277	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2018 and 2017.

December 31, 2018	Total		Level 1		Level 2		Level 3
Impaired loans	$	300	$	—	$	—	$	300
Other real estate owned		1,092		—		—		1,092

Total assets at fair value	$	1,392	$	—	$	—	$	1,392

December 31, 2017	Total		Level 1		Level 2		Level 3
Impaired loans	$	1,468	$	—	$	—	$	1,468

Total assets at fair value	$	1,468	$	—	$	—	$	1,468

Key Methods and Assumptions Used in Measuring Fair Value of Assets and Liabilities

Key methods and assumptions used in measuring the fair value of impaired loans and other real estate owned as of December 31, 2018 and 2017 were as follows:

	Method	Assumption Inputs
Impaired loans	Collateral, market, income, enterprise, liquidation and discounted cash flows	External appraised values, management assumptions regarding market trends or other relevant factors, selling costs generally ranging from 6% to 10%, or the amount and timing of cash flows based on the loan's effective interest rate.
Other real estate owned	Collateral	External appraised values, management assumptions regarding market trends or other relevant factors, selling costs generally ranging from 6% to 10%.

Estimated Fair Value of Financial Instruments

The following table summarizes fair value estimates for financial instruments for the years ended December 31, 2018 and 2017, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note).

			2018				2017
	Level		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets:
Cash and cash equivalents		1	$	116,032	$	116,032	$	152,892	$	152,892
Certificates of deposit		2		7,595		7,573		1,984		1,983
Other equity securities		3		6,019		6,019		5,567		5,567
Loans receivable:
Net loans		3		763,393		726,179		739,112		736,292
Loans held-for-sale		2		2,295		2,345		1,040		1,060
Interest receivable		2		4,158		4,158		4,117		4,117
Mortgage servicing rights		3		1,579		2,091		1,712		1,876
Financial liabilities:
Deposits		3		1,124,612		966,464		1,104,740		993,425
Interest payable		2		74		74		72		72