FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2019

FAIR VALUE

Schedule presenting information for financial instruments

The following table presents information for financial instruments at December 31 (dollars in thousands):

		December 31, 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	$	49,826	$	49,826	$	64,157	$	64,157
Interest-bearing deposits	Level 2		10,295		10,295		13,452		13,452
Securities available for sale	Level 2		106,569		106,569		115,260		115,260
Securities available for sale	Level 3		1,403		1,403		1,488		1,488
Federal Home Loan Bank stock	Level 2		4,924		4,924		4,924		4,924
Net loans	Level 3		1,053,468		1,055,985		1,033,681		1,013,214
Accrued interest receivable	Level 3		3,751		3,751		3,005		3,005
Total financial assets		$	1,230,236	$	1,232,753	$	1,235,967	$	1,215,500
Financial liabilities:
Deposits	Level 2	$	1,075,677	$	1,044,267	$	1,097,537	$	1,047,709
Borrowings	Level 2		64,551		64,403		57,536		56,771
Accrued interest payable	Level 3		569		569		391		391
Total financial liabilities		$	1,140,797	$	1,109,239	$	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
			in Active Markets		Other Observable		Unobservable
	Balance at		for Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Assets
Corporate	$	20,938	$	—	$	20,438	$	500
US Agencies		14,496		—		14,496		—
US Agencies - MBS		34,526		—		34,526		—
Obligations of state and political subdivisions		38,012		—		37,024		903
	$	107,972

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable
	Balance at		for Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
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 activity in level three assets

	Balance at						Transfers						Balance
	Beginning		Net Gains (losses)				in (out) of						at end
	of Period		Realized		Unrealized		Level 3		Purchases		Sales		of Period
Year Ended December 31, 2019
Corporate	$	500	$	—	$	—	$	—	$	—	$	—	$	500
Obligations of state and political subdivisions		988		—		—		—		—		—		988

	Balance at						Transfers						Balance
	Beginning		Net Gains (losses)				in (out) of						at end
	of Period		Realized		Unrealized		Level 3		Purchases		Sales		of Period
Year Ended December 31, 2018
Corporate	$	500	$	—	$	—	$	—	$	—	$	—	$	500
Obligations of state and political subdivisions		1,000		—		—		(12)		—		—		988

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

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2019

			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, 2019		(Level 1)		(Level 2)		(Level 3)		December 31, 2019
Assets
Impaired loans	$	12,823	$	—	$	—	$	12,823	$	280
Other real estate held for sale		2,194		—		—		2,194		212
									$	492

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		Year 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