Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Balances of Assets Measured at Fair Value on a Recurring Basis

The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2017 and 2016 (in thousands).



			Fair Value Measurements at December 31, 2017
Description	Balance as of December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale
U.S. agency and mortgage-backed securities	$	74,804	$	—	$	74,804	$	—
Obligations of states and political subdivisions	14,451		—		14,451		—
	$	89,255	$	—	$	89,255	$	—



			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale
U.S. agency and mortgage-backed securities	$	80,171	$	—	$	80,171	$	—
Obligations of states and political subdivisions	14,620		—		14,620		—
Corporate equity securities	11		11		—		—
	$	94,802	$	11	$	94,791	$	—

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2017 and 2016 (dollars in thousands).



			Fair Value Measurements at December 31, 2017
Description.	Balance as of December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Other real estate owned	$	326	$	—	$	—	$	326



			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans, net	$	116	$	—	$	—	$	116
Other real estate owned	250		—		—		250

Quantitative Information about Level 3 Fair Value Measurements



	Quantitative information about Level 3 Fair Value Measurements for December 31, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted- Average)
Other real estate owned	$	326	Contract Price	Selling cost	7	%



	Quantitative information about Level 3 Fair Value Measurements for December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted- Average)
Impaired loans, net	$	116	Property appraisals	Selling cost	10	%
Other real estate owned	$	250	Property appraisals	Selling cost	—	%

Carrying Values and Estimated Fair Values of Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2017 and 2016 are as follows (in thousands):



	Fair Value Measurements at December 31, 2017 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Financial Assets
Cash and short-term investments	$	39,986	$	39,986	$	—	$	—	$	39,986
Securities available for sale	89,255		—		89,255		—		89,255
Securities held to maturity	48,208		—		46,186		1,516		47,702
Restricted securities	1,570		—		1,570		—		1,570
Loans held for sale	438		—		438		—		438
Loans, net	516,875		—		—		514,013		514,013
Bank owned life insurance	13,967		—		13,967		—		13,967
Accrued interest receivable	1,916		—		1,916		—		1,916
Financial Liabilities
Deposits	$	664,980	$	—	$	542,329	$	120,834	$	663,163
Subordinated debt	4,948		—		—		5,004		5,004
Junior subordinated debt	9,279		—		—		9,653		9,653
Accrued interest payable	98		—		98		—		98



	Fair Value Measurements at December 31, 2016 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Financial Assets
Cash and short-term investments	$	41,092	$	41,092	$	—	$	—	$	41,092
Securities available for sale	94,802		11		94,791		—		94,802
Securities held to maturity	53,398		—		51,223		1,486		52,709
Restricted securities	1,548		—		1,548		—		1,548
Loans held for sale	337		—		337		—		337
Loans, net	480,746		—		—		481,475		481,475
Bank owned life insurance	13,928		—		13,928		—		13,928
Accrued interest receivable	1,746		—		1,746		—		1,746
Financial Liabilities
Deposits	$	645,570	$	—	$	517,143	$	127,179	$	644,322
Subordinated debt	4,930		—		—		4,715		4,715
Junior subordinated debt	9,279		—		—		9,075		9,075
Accrued interest payable	95		—		95		—		95