FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

FAIR VALUE MEASUREMENTS

Schedule presenting information for financial instruments

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

		September 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	$	82,924	$	82,924	$	64,157	$	64,157
Interest-bearing deposits	Level 2		11,275		11,275		13,452		13,452
Securities available for sale	Level 2		105,661		105,661		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		1,054,634		1,048,095		1,033,681		1,013,214
Accrued interest receivable	Level 3		3,750		3,750		3,005		3,005
Total financial assets		$	1,264,598	$	1,258,059	$	1,235,967	$	1,215,500
Financial liabilities:
Deposits	Level 2	$	1,113,579	$	1,084,737	$	1,097,537	$	1,047,709
Borrowings	Level 2		70,079		70,016		57,536		56,771
Accrued interest payable	Level 3		634		634		391		391
Total financial liabilities		$	1,184,292	$	1,155,387	$	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		Nine Months Ended
(dollars in thousands)	September 30, 2019		(Level 1)		(Level 2)		(Level 3)		September 30, 2019		September 30, 2019
Assets
Corporate	$	22,207	$	—	$	21,707	$	500	$	—	$	—
US Agencies		15,503		—		15,503		—		—		—
US Agencies - MBS		27,577		—		27,577		—		—		—
Obligations of state and political subdivisions		41,804		—		40,874		930		—		—
	$	107,091							$	—		—

			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 September 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)	September 30, 2019		(Level 1)		(Level 2)		(Level 3)		September 30, 2019		September 30, 2019
Assets
Impaired loans	$	12,270	$	—	$	—	$	12,270	$	—	$	219
Other real estate owned		2,618		—		—		2,618		(24)		77
									$	(24)		296

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