Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

Assets Measured at Fair Value on a Recurring Basis



		September 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	$	-	$	49,455	$	-	$	49,455
GSE mortgage-backed securities		-		27,331		-		27,331
Collateralized mortgage obligations GSE		-		9,941		-		9,941
Corporate bonds		-		10,638		-		10,638
State and municipal tax-exempt		-		1,796		-		1,796
Total	$	-	$	99,161	$	-	$	99,161


Assets Measured at Fair Value on a Nonrecurring Basis
Impaired loans	$	-	$	-	$	1,891	$	1,891
OREO and other repossessed property		-		-		1,240		1,240
Total	$	-	$	-	$	3,131	$	3,131



		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



September 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		841	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-7%	to	-8%	(-8%)
Impaired loans - Commercial term		938	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-7%	to	-31%	(-17%)
Impaired loans - Consumer other		39	Appraisal of	Appraisal adj. (2)	0%	to	0%	(0%)
			collateral (1)	Disposal costs (2)	-8%	to	-8%	(-8%)
Impaired loan total	$	1,891
Other real estate owned	$	1,240		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.

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

Carrying Amounts and Fair Values of Financial Instruments


		September 30, 2018

		Carrying		Fair
(Dollars in thousands)		Amount		Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	10,702	$	10,702	$	10,702	$	-	$	-
AFS investment securities		99,161		99,161		-		99,161		-
HTM investment securities		62,069		60,303		-		58,303		2,000
Restricted stock		5,864		5,864		-		5,864		-
Loans held-for-sale		-		-		-		-		-
Loans, net of allowance, including impaired		901,734		887,443		-		-		887,443
Accrued interest receivable		4,210		4,210		-		4,210		-
Financial liabilities
Deposits:
Non-interest-bearing		168,311		168,311		-		168,311		-
NOW, Money market, and Savings		520,500		520,500		-		520,500		-
Time		154,021		152,617		-		152,617		-
Brokered		97,049		95,391		-		95,391		-
Repurchase agreements		4,089		4,089		-		4,089		-
FHLBP advances		36,952		36,187		-		36,187		-
Junior subordinated debentures and other borrowings		9,279		9,998		-		9,998		-
Subordinated debt		9,750		9,644		-		9,644		-
Accrued interest payable		557		557		-		557		-
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		-		-		-		-		-