Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value of Financial Instruments [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

(in thousands)	Fair Value at March 31, 2020		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale	$	12,380	Discounted Cash Flow	Discount Rate	LIBOR+ 5.88%
Non-recurring:
Impaired Loans	$	6,683	Market Comparable Properties	Marketability Discount	10.0% - 15.0% (1) (weighted avg 12.9%)
Other Real Estate Owned	$	534	Market Comparable Properties	Marketability Discount	15.0%
(in thousands)	Fair Value at December 31, 2019		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale	$	14,354	Discounted Cash Flow	Discount Rate	LIBOR+ 4.75%
Non-recurring:
Impaired Loans	$	6,995	Market Comparable Properties	Marketability Discount	10.0% - 15.0% (1) (weighted avg 12.9%)
Other Real Estate Owned	$	2,571	Market Comparable Properties	Marketability Discount	10.0% - 15.0% (1) (weighted avg 12.5%)

NOTE:

(1) Range would include discounts taken since appraisal and estimated values

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

			Fair Value Measurements at March 31, 2020 Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	03/31/20		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	35,268		$	35,268
Residential mortgage-backed agencies	$	10,147		$	10,147
Commercial mortgage-backed agencies	$	29,670		$	29,670
Collateralized mortgage obligations	$	28,815		$	28,815
Obligations of states and political subdivisions	$	14,512		$	14,512
Collateralized debt obligations	$	12,380				$	12,380
Financial derivatives	$	(1,448)		$	(1,448)
Non-recurring:
Impaired loans	$	6,683				$	6,683
Other real estate owned	$	534				$	534

			Fair Value Measurements at December 31, 2019 Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	12/31/19		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	39,894		$	39,894
Residential mortgage-backed agencies	$	4,900		$	4,900
Commercial mortgage-backed agencies	$	27,764		$	27,764
Collateralized mortgage obligations	$	29,923		$	29,923
Obligations of states and political subdivisions	$	14,470		$	14,470
Collateralized debt obligations	$	14,354				$	14,354
Financial derivatives	$	(133)		$	(133)
Non-recurring:
Impaired loans	$	6,995				$	6,995
Other real estate owned	$	2,571				$	2,571

Reconciliation of Fair Valued Assets Measured on a Recurring Basis

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance January 1, 2020	$	14,354
Total losses realized/unrealized:
Included in other comprehensive loss		(1,974)
Ending balance March 31, 2020	$	12,380

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance January 1, 2019	$	15,277
Total losses realized/unrealized:
Included in other comprehensive income		(125)
Ending balance March 31, 2019	$	15,152

Fair Value by Balance Sheet Grouping

	March 31, 2020				Fair Value Measurements
	Carrying		Fair		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	69,008	$	69,008	$	69,008
Interest bearing deposits in banks		3,000		3,000		3,000
Investment securities - AFS		130,792		130,792			$	118,412	$	12,380
Investment securities - HTM		91,399		98,311				78,054		20,257
Restricted bank stock		4,468		4,468				4,468
Loans, net		1,038,058		1,040,993						1,040,993
Accrued interest receivable		4,217		4,217				4,217
Financial Liabilities:
Deposits - non-maturity		923,956		923,956				923,956
Deposits - time deposits		248,438		252,217				252,217
Financial derivatives		1,448		1,448				1,448
Short-term borrowed funds		39,418		39,418				39,418
Long-term borrowed funds		100,929		102,924				102,924
Accrued interest payable		505		505				505

	December 31, 2019				Fair Value Measurements
	Carrying		Fair		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	48,512	$	48,512	$	48,512
Interest bearing deposits in banks		1,467		1,467		1,467
Investment securities - AFS		131,305		131,305			$	116,951	$	14,354
Investment securities - HTM		93,979		100,656				79,084		21,572
Restricted bank stock		4,415		4,415				4,415
Loans, net		1,038,894		1,037,032						1,037,032
Accrued interest receivable		4,116		4,116				4,116
Financial Liabilities:
Deposits - non-maturity		888,141		888,141				888,141
Deposits - time deposits		253,890		256,227				256,227
Financial derivative		133		133				133
Short-term borrowed funds		48,728		48,728				48,728
Long-term borrowed funds		100,929		100,848				100,848
Accrued interest payable		499		499				499