Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of estimated fair values of financial instruments

	Carrying				Fair Value Measurements Using
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2020
Assets
Cash and cash equivalents	$	126,192	$	126,192	$	126,192	$	—	$	—
Investment securities available for sale		4,212		4,212		—		4,212		—
Investment securities held to maturity		332,533		351,799		—		351,799		—
Loans held for sale		2,840		2,985		—		2,985		—
Loans receivable, net		1,537,567		1,642,432		—		—		1,642,432
FHLB stock		8,144		8,144		—		8,144		—
FRB stock		3,134		3,134		—		3,134		—
Accrued interest receivable		6,469		6,469		19		854		5,596
Interest rate contracts		41		41		—		41		—
Liabilities
Deposits		1,645,312		1,650,538		—		1,242,879		407,659
Advances from the Federal Home Loan Bank		141,000		145,524		—		145,524		—
Securities sold under agreements to repurchase		10,000		10,475		—		10,475		—
Accrued interest payable		76		76		—		42		34
Interest rate contracts		41		41		—		41		—
December 31, 2019
Assets
Cash and cash equivalents	$	44,806	$	44,806	$	44,806	$	—	$	—
Investment securities available for sale		8,628		8,628		—		8,628		—
Investment securities held to maturity		363,883		371,305		—		371,305		—
Loans held for sale		470		480		—		480		—
Loans receivable, net		1,584,784		1,627,903		—		—		1,627,903
FHLB stock		8,723		8,723		—		8,723		—
FRB stock		3,128		3,128		—		3,128		—
Accrued interest receivable		5,409		5,409		32		952		4,425
Interest rate contracts		5		5		—		5		—
Liabilities
Deposits		1,631,933		1,632,741		—		1,167,990		464,751
Advances from the Federal Home Loan Bank		156,000		156,906		—		156,906		—
Securities sold under agreements to repurchase		10,000		9,968		—		9,968		—
Accrued interest payable		397		397		—		47		350
Interest rate contracts		5		5		—		5		—

Schedule of assets and liabilities measured at fair value on a recurring basis

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
June 30, 2020
Interest rate contracts — assets	$	—	$	41	$	—	$	41
Interest rate contracts — liabilities		—		(41)		—		(41)
Investment securities available for sale		—		4,212		—		4,212
December 31, 2019
Interest rate contracts — assets	$	—	$	5	$	—	$	5
Interest rate contracts — liabilities		—		(5)		—		(5)
Investment securities available for sale		—		8,628		—		8,628

Schedule of Significant unobservable inputs for Level 3 nonrecurring fair value measurements

				Unobservable		Range
(Dollars in thousands)	Fair Value		Valuation Technique	Input	(Weighted Average)
June 30, 2020:
Mortgage servicing assets	$	510	Discounted cash flow	Discount rate		9.25% - 11.25% (10.25%)
				Prepayment speed (CPR)		9.39 - 17.52 (13.38)
				Annual cost to service (per loan, in dollars)	$	75
December 31, 2019:
Mortgage servicing assets	$	452	Discounted cash flow	Discount rate		9.25% - 11.25% (10.25%)
				Prepayment speed (CPR)		11.09 - 14.24 (12.58)
				Annual cost to service (per loan, in dollars)	$	75

Fair Value, Measurements, Nonrecurring

Schedule of balance of assets measured at fair value on a nonrecurring basis

	Fair Value
(Dollars in thousands)	Adjustment Date	Level 1		Level 2		Level 3		Total			Total Losses
June 30, 2020
Mortgage servicing assets	6/30/2020	$	—	$	—	$	510	$	510	$	(27)
December 31, 2019
Mortgage servicing assets	9/30/2019		—		—		452		452		(16)