Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

Assets Measured at Fair Value on a Recurring Basis



		March 31, 2018

(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	$	-	$	52,663	$	-	$	52,663
GSE mortgage-backed securities		-		30,587		-		30,587
Collateralized mortgage obligations GSE		-		11,103		-		11,103
Corporate bonds		-		12,711		-		12,711
State and municipal tax-exempt		-		1,825		-		1,825
Total	$	-	$	108,889	$	-	$	108,889


Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	933	$	933
OREO and other repossessed property		-		-		14		14
Total	$	-	$	-	$	947	$	947



		December 31, 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	$	-	$	52,893	$	-	$	52,893
GSE mortgage-backed securities		-		32,488		-		32,488
Collateralized mortgage obligations GSE		-		11,654		-		11,654
Corporate bonds		-		12,820		-		12,820
State and municipal tax-exempt		-		1,928		-		1,928
Total	$	-	$	111,783	$	-	$	111,783


Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	1,814	$	1,814
OREO and other repossessed property		-		-		817		817
Total	$	-	$	-	$	2,631	$	2,631

Quantitative Information About Level 3 Fair Value Measurements



March 31, 2018
Quantitative Information about Level 3 Fair Value Measurement

		Fair Value	Valuation		Range
(Dollars in thousands)		Estimate	Techniques	Unobservable Input	(Weighted Average)
Impaired loans - Commercial mortgage		59	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Commercial term		781	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-11%	(-10%)
Impaired loans - Consumer other		93	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	933
Other real estate owned	$	14		Disposal costs (2)	8%	to	8%	(-8%)

(1)

(2)



December 31, 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	$	4	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Commercial mortgage		46	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Commercial term		1,648	Appraisal of	Appraisal adj. (2)	0%	to	-50%	(-6%)
			collateral (1)	Disposal costs (2)	0%	to	-9%	(-8%)
Impaired loans - Consumer other		116	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	1,814
Other real estate owned	$	817		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 Fair Values of Financial Instruments



		March 31, 2018

		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,078	$	14,078	$	14,078	$	-	$	-
AFS investment securities		108,889		108,889		-		108,889		-
HTM investment securities		62,219		61,004		-		59,004		2,000
Restricted stock		7,363		7,363		-		7,363		-
Loans held-for-sale		646		648		-		-		648
Loans, net of allowance, including impaired		858,200		847,545		-		-		847,545
Accrued interest receivable		3,982		3,982		-		3,982		-
Financial liabilities
Deposits:
Non-interest-bearing deposits		172,044		172,044		-		172,044		-
Other interest-bearing deposits		542,930		542,930		-		542,930		-
Time		115,214		113,940		-		113,940		-
Brokered deposits		61,598		60,033		-		60,033		-
Repurchase agreements		10,717		10,717		-		10,717		-
FHLBP advances		67,993		67,136		-		67,136		-
Junior subordinated debentures and other borrowings		9,279		9,798		-		9,798		-
Subordinated debt		9,750		9,423		-		9,423		-
Accrued interest payable		494		494		-		494		-
Off-balance sheet instruments		-		-		-		-		-



		December 31, 2017

		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	10,917	$	10,917	$	10,917	$	-	$	-
AFS investment securities		111,783		111,783		-		111,783		-
HTM investment securities		62,390		62,420		-		60,420		2,000
Restricted stock		7,641		7,641		-		7,641		-
Loans held-for-sale		651		657		-		-		657
Loans, net of allowance, including impaired		840,054		821,672		-		-		821,672
Accrued interest receivable		3,822		3,822		-		3,822		-
Financial liabilities
Deposits:
Non-interest-bearing deposits		176,815		176,815		-		176,815		-
Other interest-bearing deposits		502,086		502,086		-		502,086		-
Time		140,490		139,406		-		139,406		-
Brokered deposits		41,812		42,304		-		42,304		-
Repurchase agreements		12,023		12,023		-		12,023		-
FHLBP advances		79,013		78,531		-		78,531		-
Junior subordinated debentures and other borrowings		9,279		9,373		-		9,373		-
Subordinated debt		9,750		9,577		-		9,577		-
Accrued interest payable		554		554		-		554		-
Off-balance sheet instruments		-		-		-		-		-