Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value of Financial Instruments [Abstract]

Fair Value Measurements on Differing Levels

		June 30, 2017
(Dollars in thousands)		Level 1		Level 2		Level 3		Fair Value
Assets Measured at Fair Value on a Recurring Basis
AFS Investment Securities:
US Government agency obligations	$	-	$	53,079	$	-	$	53,079
GSE mortgage-backed securities		-		31,132		-		31,132
Collateralized mortgage obligations GSE		-		12,884		-		12,884
Corporate bonds		-		10,888		-		10,888
State and municipal tax-exempt		-		1,917		-		1,917
Total	$	-	$	109,900	$	-	$	109,900
Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	1,867	$	1,867
OREO and other repossessed property		-		-		1,175		1,175
Total	$	-	$	-	$	3,042	$	3,042

		December 31, 2016
(Dollars in thousands)		Level 1		Level 2		Level 3		Fair Value
Assets Measured at Fair Value on a Recurring Basis
AFS Investment Securities:
US Government agency obligations	$	-	$	52,309	$	-	$	52,309
GSE mortgage-backed securities		-		30,140		-		30,140
Collateralized mortgage obligations GSE		-		12,573		-		12,573
Corporate bonds		-		15,180		-		15,180
State and municipal tax-exempt		-		4,956		-		4,956
Asset-backed security		-		26		-		26
Total	$	-	$	115,184	$	-	$	115,184
Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	1,538	$	1,538
OREO and other repossessed property		-		-		2,485		2,485
Total	$	-	$	-	$	4,023	$	4,023

Quantitative Information About Level 3 Fair Value Measurements

June 30, 2017
Quantitative Information about Level 3 Fair Value Measurement
		Fair Value	Valuation		Range
(Dollars in thousands)		Estimate	Techniques	Unobservable Input	(Weighted Average)
Impaired loans - Residential mortgage	$	171	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Commercial term		1,489	Appraisal of	Appraisal adj. (2)	0%	to	-50%	(-7%)
			collateral (1)	Disposal costs (2)	0%	to	-9%	(-8%)
Impaired loans - Consumer other		207	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	1,867
Other real estate owned	$	1,175		Disposal costs (2)	8%	to	8%	(-8%)

(1)

(2)

December 31, 2016
Quantitative Information about Level 3 Fair Value Measurement
		Fair Value	Valuation		Range
(Dollars in thousands)		Estimate	Techniques	Unobservable Input	(Weighted Average)
Impaired loans - Residential mortgage	$	964	Appraisal of	Appraisal adj. (2)	0%	to	-25%	(-22%)
			collateral (1)	Disposal costs (2)	-8%	to	-12%	(-9%)
Impaired loans - Commercial term		79	Appraisal of	Appraisal adj. (2)	-72%	to	-72%	(-72%)
			collateral (1)	Disposal costs (2)	-11%	to	-11%	(-11%)
Impaired loans - Commercial construction		358	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Consumer other		137	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	1,538
Other real estate owned	$	2,485		Disposal costs (2)	-8%	to	-8%	(-8%)

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

⁽²⁾ Appraisals are adjusted by management for qualitative factors and disposal costs.

Carrying Amounts and Estimated Fair Values of Financial Instruments

		June 30, 2017
		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	36,189	$	36,189	$	36,189	$	-	$	-
AFS investment securities		109,900		109,900		-		109,900		-
HTM investment securities		67,249		67,388		-		65,388		2,000
Restricted stock		6,566		6,566		-		6,566		-
Loans, net of allowance, including impaired		811,258		791,963		-		-		791,963
Accrued interest receivable		3,558		3,558		-		3,558		-
Financial liabilities
Deposits:
Non-interest-bearing deposits		181,529		181,529		-		181,529		-
Interest-bearing deposits		534,609		534,609		-		534,609		-
Time deposits		147,110		146,425		-		146,425		-
Brokered deposits		29,811		30,659		-		30,659		-
Repurchase agreements		15,700		15,700		-		15,700		-
FHLBP advances		49,869		49,845		-		49,845		-
Junior subordinated debentures and other borrowings		9,279		9,012		-		9,012		-
Subordinated debt		9,750		11,295		-		11,295		-
Accrued interest payable		552		552		-		552		-
Off-balance sheet instruments		-		-		-		-		-

		December 31, 2016
		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	22,103	$	22,103	$	22,103	$	-	$	-
AFS investment securities		115,184		115,184		-		115,184		-
HTM investment securities		67,022		66,124		-		64,124		2,000
Restricted stock		5,381		5,381		-		5,381		-
Loans, net of allowance, including impaired		812,156		792,190		-		-		792,190
Accrued interest receivable		3,567		3,567		-		3,567		-
Financial liabilities
Deposits:
Non-interest-bearing deposits		173,467		173,467		-		173,467		-
Interest-bearing deposits		495,178		495,178		-		495,178		-
Time deposits		187,256		186,012		-		186,012		-
Brokered deposits		29,286		28,873		-		28,873		-
Repurchase agreements		11,889		11,889		-		11,889		-
FHLBP advances		55,332		54,734		-		54,734		-
Junior subordinated debentures and other borrowings		9,279		8,637		-		8,637		-
Subordinated debt		9,750		10,493		-		10,493		-
Accrued interest payable		534		534		-		534		-
Off-balance sheet instruments		-		-		-		-		-