Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

Assets Measured at Fair Value on a Recurring Basis



		June 30, 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	$	-	$	49,449	$	-	$	49,449
GSE mortgage-backed securities		-		28,980		-		28,980
Collateralized mortgage obligations GSE		-		10,522		-		10,522
Corporate bonds		-		12,661		-		12,661
State and municipal tax-exempt		-		1,817		-		1,817
Total	$	-	$	103,429	$	-	$	103,429


Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	1,961	$	1,961
OREO and other repossessed property		-		-		1,167		1,167
Total	$	-	$	-	$	3,128	$	3,128



		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



June 30, 2018
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	$	73	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loans - Commercial mortgage		796	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-7%	to	-8%	(-8%)
Impaired loans - Commercial term		1,014	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-7%	to	-31%	(-17%)
Impaired loans - Consumer other		78	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	1,961
Other real estate owned	$	1,167		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



		June 30, 2018

		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	33,452	$	33,452	$	33,452	$	-	$	-
AFS investment securities		103,429		103,429		-		103,429		-
HTM investment securities		62,145		60,815		-		58,815		2,000
Restricted stock		6,950		6,950		-		6,950		-
Loans held-for-sale		276		280		-		-		280
Loans, net of allowance, including impaired		879,132		864,770		-		-		864,770
Accrued interest receivable		3,911		3,911		-		3,911		-
Financial liabilities
Deposits:
Non-interest-bearing		175,561		175,561		-		175,561		-
NOW, Money market, and Savings		550,366		550,366		-		550,366		-
Time		114,766		113,523		-		113,523		-
Brokered		93,422		91,892		-		91,892		-
Repurchase agreements		5,609		5,609		-		5,609		-
FHLBP advances		62,972		62,229		-		62,229		-
Junior subordinated debentures and other borrowings		9,279		9,902		-		9,902		-
Subordinated debt		9,750		9,531		-		9,531		-
Accrued interest payable		561		561		-		561		-
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		176,815		176,815		-		176,815		-
NOW, Money market, and Savings		502,086		502,086		-		502,086		-
Time		140,490		139,406		-		139,406		-
Brokered		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		-		-		-		-		-