Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of March 31, 2020 and December 31, 2019 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

March 31, 2020	Level I		Level II		Level III		Total
Fair value measurements on a recurring basis:
Assets
Equity securities	$	649	$	-	$	-	$	649
Available for sale securities:
U.S. Agency securities		-		77,510		-		77,510
U.S. Treasury securities		28,313		-		-		28,313
Obligations of state and
political subdivisions		-		74,778		-		74,778
Corporate obligations		-		3,347		-		3,347
Mortgage-backed securities in
government sponsored entities		-		73,840		-		73,840

December 31, 2019	Level I		Level II		Level III		Total
Fair value measurements on a recurring basis:
Assets
Equity securities	$	701	$	-	$	-	$	701
Available for sale securities:
U.S. Agency securities		-		84,863		-		84,863
U.S. Treasuries securities		27,661		-		-		27,661
Obligations of state and
political subdivisions		-		61,455		-		61,455
Corporate obligations		-		3,328		-		3,328
Mortgage-backed securities in
government sponsored entities		-		63,399		-		63,399

Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a nonrecurring basis as of March 31, 2020 and December 31, 2019 are included in the table below (in thousands):

March 31, 2020	Level I		Level II		Level III		Total
Impaired Loans	$	-	$	-	$	4,178	$	4,178
Other real estate owned		-		-		2,951		2,951

December 31, 2019	Level I		Level II		Level III		Total
Impaired Loans	$	-	$	-	$	3,860	$	3,860
Other real estate owned		-		-		3,299		3,299

Significant Unobservable Inputs Used in Fair Value Measurement Process

The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level III techniques (dollars in thousands).

March 31, 2020	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Impaired Loans	$	4,178	Appraised Collateral Values	Discount for time since appraisal		0-100	%		15.54	%
				Selling costs		5%-10	%		9.34	%
				Holding period	0 - 12 months			11.93 months

Other real estate owned		2,951	Appraised Collateral Values	Discount for time since appraisal		5-33	%		16.27	%

Deceber 31, 2020	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Impaired Loans	$	3,860	Appraised Collateral Values	Discount for time since appraisal		0-100	%		19.22	%
				Selling costs		5%-10	%		9.26	%
				Holding period	6- 12 months			11.76 months

Other real estate owned		3,299	Appraised Collateral Values	Discount for time since appraisal		5-43	%		16.37	%

Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands):

	Carrying
March 31, 2020	Amount		Fair Value		Level I		Level II		Level III
Financial assets:
Interest bearing time deposits with other banks	$	14,506	$	14,962	$	-	$	-	$	14,962
Loans held for sale		2,006		2,006		-		-		2,006
Net loans		1,079,473		1,073,943		-		-		1,073,943

Financial liabilities:
Deposits		1,205,150		1,209,221		946,724		-		262,497
Borrowed funds		83,563		84,101		-		-		84,101

	Carrying
December 31, 2019	Amount		Fair Value		Level I		Level II		Level III
Financial assets:
Interest bearing time deposits with other banks	$	14,256	$	14,635	$	-	$	-	$	14,635
Loans held for sale		815		815		-		-		815
Net loans		1,101,724		1,091,006		-		-		1,091,006

Financial liabilities:
Deposits		1,211,118		1,211,200		938,387		-		272,813
Borrowed funds		85,117		84,581		-		-		84,581