Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Assets Measured at Fair Value on Recurring Basis

The following table presents the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:

			Fair Value Measurements at December 31, 2018 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Description	Balance
	(in thousands)
Available-for-sale securities
U.S. Treasury securities	$	12,328	$	-	$	12,328	$	-
Obligations of U.S. Government agencies		10,714		-		10,714		-
Obligations of state and political subdivisions		48,837		-		48,837		-
Mortgage-backed securities		71,191		-		71,191		-
Money market investments		1,897		-		1,897		-
Corporate bonds		3,280		-		3,280		-
Total available-for-sale securities	$	148,247	$	-	$	148,247	$	-

			Fair Value Measurements at December 31, 2017 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Description	Balance
	(in thousands)
Available-for-sale securities
Obligations of U.S. Government agencies	$	9,435	$	-	$	9,435	$	-
Obligations of state and political subdivisions		64,765		-		64,765		-
Mortgage-backed securities		74,296		-		74,296		-
Money market investments		1,194		-		1,194		-
Corporate bonds		7,234		-		7,234		-
Other marketable equity securities		197		-		197		-
Total available-for-sale securities	$	157,121	$	-	$	157,121	$	-

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan's effective interest rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.

			Carrying Value at December 31, 2018 Using
Description	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans
Mortgage loans on real estate:
Residential 1-4 family	$	188	$	-	$	-	$	188
Construction		74		-		-		74
Equity lines of credit		229		-		-		229
Total	$	491	$	-	$	-	$	491

Loans held for sale	$	479	$	-	$	479	$	-

Other real estate owned
Construction	$	83	$	-	$	-	$	83
Total	$	83	$	-	$	-	$	83

				Carrying Value at December 31, 2017 Using
Description	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans
Mortgage loans on real estate:
Residential 1-4 family		$	264		$	-		$	-		$	264
Construction			74			-			-			74
Equity lines of credit			229			-			-			229
Total		$	567		$	-		$	-		$	567

Loans held for sale		$	779		$	-		$	779		$	-

Fair Value Inputs, Assets, Quantitative Information

The following table displays quantitative information about Level 3 Fair Value Measurements as of the dates indicated:

Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value at December 31, 2018 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Average)
Impaired loans
Residential 1-4 family real estate	$	188	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction		74	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Equity lines of credit		229	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Other real estate owned
Construction		83	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value at December 31, 2017 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Average)
Impaired loans
Residential 1-4 family real estate	$	264	Market comparables	Selling costs		7.25	%
				Liquidation discount		0.00% - 4.00% (2.91	%)
Construction		74	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Equity lines of credit		229	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments

The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows:

			Fair Value Measurements at December 31, 2018 Using
Description	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash and cash equivalents	$	42,217	$	42,217	$	-	$	-
Securities available-for-sale		148,247		-		148,247		-
Restricted securities		3,853		-		3,853		-
Loans held for sale		479		-		479		-
Loans, net of allowances for loan losses		763,898		-		-		749,848
Bank owned life insurance		26,763		-		26,763		-
Accrued interest receivable		3,095		-		3,095		-

Liabilities
Deposits	$	843,144	$	-	$	843,818	$	-
Overnight repurchase agreements		25,775		-		25,775		-
Federal Home Loan Bank advances		60,000		-		59,975		-
Other borrowings		2,550		-		2,550		-
Accrued interest payable		594		-		594		-

			Fair Value Measurements at December 31, 2017 Using
Description	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash and cash equivalents	$	14,412	$	14,412	$	-	$	-
Securities available-for-sale		157,121		-		157,121		-
Restricted securities		3,846		-		3,846		-
Loans held for sale		779		-		779		-
Loans, net of allowances for loan losses		729,092		-		-		722,464
Bank owned life insurance		25,981		-		25,981		-
Accrued interest receivable		3,254		-		3,254		-

Liabilities
Deposits	$	783,594	$	-	$	782,539	$	-
Federal funds purchased		10,000		-		10,000		-
Overnight repurchase agreements		20,693		-		20,693		-
Federal Home Loan Bank advances		67,500		-		67,329		-
Accrued interest payable		360		-		360		-