Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities

Schedule of Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018:

			December 31, 2019
			Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
U.S government agencies	$	39,528	$	––	$	39,528	$	––
Subordinated notes	$	4,500		—	$	4,532		—
State and Municipal Obligations	$	144,725		—	$	144,725		—

			December 31, 2018
			Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
U.S government agencies	$	44,750	$	––	$	44,750	$	––
State and Municipal Obligations	$	79,241		—	$	79,241		—

Schedule of Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018:

			December 31, 2019
			Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Collateral dependent impaired loans	$	—	$	––	$	––	$	—
Foreclosed assets held for sale		—		––		––		—

			December 31, 2018
			Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Collateral dependent impaired loans	$	314	$	––	$	––	$	314
Foreclosed assets held for sale		91		––		––		91

Schedule of information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

	Fair Value at		Valuation
	12/31/19		Technique	Unobservable Inputs	Range
	(In thousands)
Collateral-dependent impaired loans	$	—	Market comparable properties	Comparability adjustments	Not available
Foreclosed assets held for sale		—	Market comparable properties	Marketability discount	10% – 35%

	Fair Value at		Valuation
	12/31/18		Technique	Unobservable Inputs	Range
	(In thousands)
Collateral-dependent impaired loans	$	314	Market comparable properties	Comparability adjustments	Not available
Foreclosed assets held for sale		91	Market comparable properties	Marketability discount	10% – 35%

Schedule of Estimated Fair Values of Company's Financial Instruments

The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

			Fair Value Measurements Using
			Quoted Prices
			in Active
			Markets for		Significant		Significant
			Identical		Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
December 31, 2019
Financial assets
Cash and cash equivalents	$	14,985	$	14,985	$	––	$	––
Loans, net of allowance		439,317		––		––		437,688
Federal Home Loan Bank stock		4,012		––		4,012		––
Accrued interest receivable		2,697		––		2,697		––
Financial liabilities
Deposits		548,069		––		548,130		––
Short term borrowings		6,915		––		6,915		––
Federal Home Loan Bank advances		39,800		––		39,800		––
Subordinated debentures		23,543		––		22,857		––
Interest payable		213		––		213		––

The classification of the assets and liabilities pursuant to the valuation hierarchy as of December 31, 2018 in the following table have not been audited. The fair value has been derived from the December 31, 2018 audited consolidated financial statements.

			Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Carrying		Assets		Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
December 31, 2018
Financial assets
Cash and cash equivalents	$	25,253	$	25,253	$	––	$	––
Loans, net of allowance		407,640		––		––		405,033
Federal Home Loan Bank stock		4,243		––		4,243		––
Accrued interest receivable		1,798		––		1,798		––
Financial liabilities
Deposits		525,443		––		524,010		––
Short term borrowings		8,068		––		8,068		––
Federal Home Loan Bank advances		106		––		101		––
Subordinated debentures		4,124		––		3,647		––
Interest payable		188		––		188		––