FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2019

FAIR VALUE MEASUREMENTS

Schedule presenting information for financial instruments

The following table presents information for financial instruments at June 30, 2019 and December 31, 2018 (dollars in thousands):

		June 30, 2019				December 31, 2018
	Level in Fair	Carrying		Estimated		Carrying		Estimated
	Value Hierarchy	Amount		Fair Value		Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	60,690	$	60,690	$	64,157	$	64,157
Interest-bearing deposits	Level 2		12,465		12,465		13,452		13,452
Securities available for sale	Level 2		108,918		108,918		115,260		115,260
Securities available for sale	Level 3		1,430		1,430		1,488		1,488
Federal Home Loan Bank stock	Level 2		4,924		4,924		4,924		4,924
Net loans	Level 3		1,055,397		1,042,732		1,033,681		1,013,214
Accrued interest receivable	Level 3		3,791		3,791		3,005		3,005
Total financial assets		$	1,247,615	$	1,234,950	$	1,235,967	$	1,215,500
Financial liabilities:
Deposits	Level 2	$	1,114,853	$	1,082,522	$	1,097,537	$	1,047,709
Borrowings	Level 2		46,232		46,098		57,536		56,771
Accrued interest payable	Level 3		575		575		391		391
Total financial liabilities		$	1,161,660	$	1,129,195	$	1,155,464	$	1,104,871

Schedule of investment securities measured at fair value on a recurring basis

The table below shows investment securities measured at fair value on a recurring basis (dollars in thousands):

			Quoted Prices		Significant		Significant		Total (Gains)		Total (Gains)
			in Active Markets		Other Observable		Unobservable		Losses for		Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Three Months Ended		Six Months Ended
(dollars in thousands)	June 30, 2019		(Level 1)		(Level 2)		(Level 3)		June 30, 2019		June 30, 2019
Assets
Corporate	$	15,478	$	—	$	14,978	$	500	$	—	$	—
US Agencies		22,194		—		22,194		—		—		—
US Agencies - MBS		29,574		—		29,574		—		—		—
Obligations of state and political subdivisions		43,102		—		42,172		930		—		—
	$	110,348							$	—		—

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable		Total (Gains) Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)		December 31, 2018
Assets
Corporate	$	20,064	$	—	$	19,564	$	500	$	—
US Agencies		15,970		—		15,970		—		—
US Agencies - MBS		32,840		—		32,840		—		—
Obligations of state and political subdivisions		47,874		—		46,886		988		—
	$	116,748							$	—

Schedule of assets measured at fair value on a non-recurring basis

Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2019

			Quoted Prices		Significant		Significant		Total (Gains)		Total (Gains)
			in Active Markets		Other Observable		Unobservable		Losses for		Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Three Months Ended		Six Months Ended
(dollars in thousands)	June 30, 2019		(Level 1)		(Level 2)		(Level 3)		June 30, 2019		June 30, 2019
Assets
Impaired loans	$	6,645	$	—	$	—	$	6,645	$	—	$	219
Other real estate owned		2,125		—		—		2,125		73		101
									$	73		320

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2018

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)		December 31, 2018
Assets
Impaired loans	$	8,818	$	—	$	—	$	8,818	$	198
Other real estate held for sale		3,119		—		—		3,119		182
									$	380