Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Measurement [Abstract]

Fair Value Measurements by Level of Valuation Inputs

The following tables summarize assets and liabilities measured at fair value as of June 30, 2020 and December 31, 2019 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no transfers of assets between fair value Level 1 and Level 2 during the six months ended June 30, 2020 or 2019.

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
June 30, 2020	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	6,024	$	—	$	6,024
Obligations of state and political subdivisions		—		7,620		—		7,620
Corporate debt securities		—		7,184		—		7,184
Mortgage-backed securities		—		265,050		—		265,050
Total debt securities available for sale	$	—	$	285,878	$	—	$	285,878
Equity securities	$	990	$	—	$	—	$	990
Mortgage servicing rights	$	—	$	—	$	172	$	172
Liabilities measured at fair value on a recurring basis:
Interest rate swaps	$	—	$	206	$	—	$	206
Assets measured at fair value on a non-recurring basis:
Impaired loans	$	—	$	—	$	103	$	103

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
December 31, 2019	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	20,920	$	—	$	20,920
Obligations of state and political subdivisions		—		4,575		—		4,575
Mortgage-backed securities		—		185,191		—		185,191
Total debt securities available for sale	$	—	$	210,686	$	—	$	210,686
Equity securities	$	1,144	$	—	$	—	$	1,144
Mortgage servicing rights	$	—	$	—	$	180	$	180
Assets measured at fair value on a non-recurring basis:
Impaired loans	$	—	$	—	$	144	$	144

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:

	Financial Instruments
(Dollars in thousands)	June 30, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	12,259	$	12,259	$	12,658	$	12,658
Interest bearing deposits with banks		3,935		3,935		82		82
Interest bearing time deposits with banks		1,470		1,470		2,210		2,210
Securities		286,868		286,868		211,830		211,830
Restricted investment in bank stock		3,487		N/A		3,442		N/A
Loans, net of allowance for loan losses		417,038		418,706		397,629		403,359
Accrued interest receivable		2,404		2,404		1,607		1,607
Financial liabilities:
Non-interest bearing deposits	$	160,682	$	160,682	$	134,703	$	134,703
Interest bearing deposits		434,153		438,699		397,234		399,848
Securities sold under agreements to repurchase		4,107		N/A		3,429		N/A
Short-term borrowings		20,000		20,001		9,700		9,700
FRB advances		31,298		31,298		—		—
Long-term debt		35,000		37,520		45,000		45,809
Interest rate swaps		206		206		—		—
Other interest bearing liabilities		1,590		1,592		1,603		1,603
Accrued interest payable		389		389		473		473
Off-balance sheet financial instruments:
Commitments to extend credit	$	—	$	—	$	—	$	—
Letters of credit		—		—		—		—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of June 30, 2020 and December 31, 2019. The tables exclude financial instruments for which the carrying amount approximates fair value.

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
June 30, 2020
Financial instruments - Assets
Interest bearing time deposits with banks	$	1,470	$	1,470	$	—	$	1,470	$	—
Loans, net of allowance for loan losses		417,038		418,706		—		—		418,706
Financial instruments - Liabilities
Interest bearing deposits	$	434,153	$	438,699	$	—	$	438,699	$	—
Long-term debt		35,000		37,520		—		37,520		—
Other interest bearing liabilities		1,590		1,592		—		1,592		—

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
December 31, 2019
Financial instruments - Assets
Interest bearing time deposits with banks	$	2,210	$	2,210	$	—	$	2,210	$	—
Loans, net of allowance for loan losses		397,629		403,359		—		—		403,359
Financial instruments - Liabilities
Interest bearing deposits	$	397,234	$	399,848	$	—	$	399,848	$	—
Long-term debt		45,000		45,809		—		45,809		—
Other interest bearing liabilities		1,603		1,603		—		1,603		—