Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Assets Measured at Fair Value on Recurring Basis

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

			Fair Value Measurements at December 31, 2020 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

(dollars in thousands)	Balance
Available-for-sale securities
U.S. Treasury securities	$	7,043	$	-	$	7,043	$	-
Obligations of U.S. Government agencies		36,696		-		36,696		-
Obligations of state and political subdivisions		45,995		-		45,995		-
Mortgage-backed securities		73,501		-		73,501		-
Money market investments		4,743		-		4,743		-
Corporate bonds and other securities		18,431		-		18,431		-
Total available-for-sale securities	$	186,409	$	-	$	186,409	$	-

			Fair Value Measurements at December 31, 2019 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

(dollars in thousands)	Balance
Available-for-sale securities
U.S. Treasury securities	$	7,003	$	-	$	7,003	$	-
Obligations of U.S. Government agencies		33,604		-		33,604		-
Obligations of state and political subdivisions		24,742		-		24,742		-
Mortgage-backed securities		71,908		-		71,908		-
Money market investments		3,825		-		3,825		-
Corporate bonds and other securities		4,633		-		4,633		-
Total available-for-sale securities	$	145,715	$	-	$	145,715	$	-

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, 2020
(dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Loans
Loans held for sale	$	14,413	$	-	$	14,413	$	-

			Carrying Value at December 31, 2019
(dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans
Mortgage loans on real estate:
Residential 1-4 family	$	74	$	-	$	-	$	74
Commercial		1,294		-		-		1,294
Construction		74		-		-		74
Total mortgage loans on real estate		1,442		-		-		1,442
Total	$	1,442	$	-	$	-	$	1,442

Loans
Loans held for sale	$	590	$	-	$	590	$	-

Fair Value Inputs, Assets, Quantitative Information

The Company did not have any Level 3 Fair Value Measurements at December 31, 2020. The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2019:

			Quantitative Information About Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value at December 31, 2019		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans
Residential 1-4 family real estate	$	74	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Commercial real estate	$	1,294	Market comparables	Selling costs		6.00	%
				Liquidation discount		35.00	%
Construction	$	74	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, 2020 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

(dollars in thousands)	Carrying Value
Assets
Cash and cash equivalents	$	120,437	$	120,437	$	-	$	-
Securities available-for-sale		186,409		-		186,409		-
Restricted securities		1,367		-		1,367		-
Loans held for sale		14,413		-		14,413		-
Loans, net of allowances for loan losses		826,759		-		-		825,963
Bank owned life insurance		28,386		-		28,386		-
Accrued interest receivable		3,613		-		3,613		-

Liabilities
Deposits	$	1,067,236	$	-	$	1,070,236	$	-
Overnight repurchase agreements		6,619		-		6,619		-
Federal Reserve Bank borrowings		28,550		-		28,550		-
Other borrowings		1,350		-		1,350		-
Accrued interest payable		384		-		384		-

			Fair Value Measurements at December 31, 2019 Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

(dollars in thousands)	Carrying Value
Assets
Cash and cash equivalents	$	89,865	$	89,865	$	-	$	-
Securities available-for-sale		145,715		-		145,715		-
Restricted securities		2,926		-		2,926		-
Loans held for sale		590		-		590		-
Loans, net of allowances for loan losses		738,205		-		-		734,932
Bank owned life insurance		27,547		-		27,547		-
Accrued interest receivable		2,762		-		2,762		-

Liabilities
Deposits	$	889,496	$	-	$	893,584	$	-
Overnight repurchase agreements		11,452		-		11,452		-
Federal Home Loan Bank advances		37,000		-		36,747		-
Other borrowings		1,950		-		1,950		-
Accrued interest payable		620		-		620		-