Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value of Assets and Liabilities

Schedule of assets measured at fair value on a recurring basis

The following table presents the assets measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
June 30, 2020:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	3,002	$	—	$	3,002
Corporate bonds		—		5,218		—		5,218
Municipal obligations		—		68,350		—		68,350
Total investment securities available for sale		—		76,570		—		76,570
Equity securities		2,165		—		—		2,165
Mortgage-backed securities available for sale		—		88,987		—		88,987
Total recurring fair value measurements	$	2,165	$	165,557	$	—	$	167,722

December 31, 2019:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	8,489	$	—	$	8,489
Corporate bonds		—		2,579		—		2,579
Municipal obligations		—		58,816		—		58,816
Total investment securities available for sale		—		69,884		—		69,884
Equity securities		2,955		—		—		2,955
Mortgage-backed securities available for sale		—		91,478		—		91,478
Total recurring fair value measurements	$	2,955	$	161,362	$	—	$	164,317

Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy

The following table presents the assets measured at fair value on a nonrecurring basis as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
June 30, 2020:
Foreclosed real estate	$	—	$	—	$	586	$	586
Total nonrecurring fair value measurements	$	—	$	—	$	586	$	586
December 31, 2019:
Foreclosed real estate	$	—	$	—	$	404	$	404
Total nonrecurring fair value measurements	$	—	$	—	$	404	$	404

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands):

					Quantitative Information about Level 3 Fair Value Measurements
	June 30,		December 31,		Valuation	Unobservable
	2020		2019		Techniques	Input	Range
Foreclosed real estate	$	586	$	404	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to 30%
					Liquidation expenses (2)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments

	Carrying		Estimated
	Value		Fair Value		Level 1		Level 2		Level 3
June 30, 2020:
Financial Instruments - Assets:
Loans receivable (1)	$	742,179	$	750,957	$	—	$	—	$	750,957
Financial Instruments - Liabilities:
Demand and savings accounts (1)	$	562,435	$	562,435	$	562,435	$	—	$	—
Time deposits (1)		228,640		234,896		—		—		234,896
Long-term borrowings (1)		108,002		111,590		—		—		111,590
December 31, 2019:
Financial Instruments - Assets:
Loans receivable (1)	$	712,965	$	721,197	$	—	$	—	$	721,197
Financial Instruments - Liabilities:
Demand and savings accounts (1)	$	489,292	$	489,292	$	489,292	$	—	$	—
Time deposits (1)		245,114		247,456		—		—		247,456
Long-term borrowings (1)		99,098		100,032		—		—		100,032

(1) The financial instrument is carried at amortized cost.