Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2018

Assets and liabilities measured on recurring basis measured at fair value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2018 and 2017.



	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	5,007,000	$	—	$	5,007,000
Mortgage-backed securities	—		307,693,000		—		307,693,000
State and political subdivisions	—		4,716,000		—		4,716,000
Total securities available for sale	$	—	$	317,416,000	$	—	$	317,416,000
Interest rate swap agreements	$	—	$	1,820,000	$	—	$	1,820,000
Total assets	$	—	$	319,236,000	$	—	$	319,236,000



	At December 31, 2017
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	289,989,000	$	—	$	289,989,000
State and political subdivisions	—		6,769,000		—		6,769,000
Other equity securities	—		441,000		—		441,000
Total securities available for sale	$	—	$	297,199,000	$	—	$	297,199,000
Interest rate swap agreements	$	—	$	1,955,000	$	—	$	1,955,000
Total assets	$	—	$	299,154,000	$	—	$	299,154,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following tables present assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance for losses of $0 and $53,000 at December 31, 2018 and 2017, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $2,096,000 and $1,531,000 at December 31, 2018 and 2017, respectively.



	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	584,000	$	—	$	584,000
Impaired loans	—		7,415,000		—		7,415,000
Total assets	$	—	$	7,999,000	$	—	$	7,999,000



	At December 31, 2017
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,012,000	$	—	$	1,012,000
Impaired loans	—		6,521,000		—		6,521,000
Total assets	$	—	$	7,533,000	$	—	$	7,533,000

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2018 were as follows:



	Carrying	Estimated
As of December 31, 2018	value	fair value	Level 1		Level 2	Level 3
Financial assets
Securities to be held to maturity	$255,663,000	$250,900,000	$	—	$250,900,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	349,243,000	340,526,000	—		423,000	340,103,000
Construction	27,018,000	26,344,000	—		—	26,344,000
Other	192,420,000	189,842,000	—		6,096,000	183,746,000
Municipal	51,101,000	50,965,000	—		—	50,965,000
Residential
Term	467,760,000	451,323,000	—		793,000	450,530,000
Construction	17,705,000	17,083,000	—		—	17,083,000
Home equity line of credit	97,650,000	95,175,000	—		103,000	95,072,000
Consumer	24,154,000	22,530,000	—		—	22,530,000
Total loans	1,227,051,000	1,193,788,000	—		7,415,000	1,186,373,000
Mortgage servicing rights	1,354,000	2,586,000	—		2,586,000	—
Financial liabilities
Local certificates of deposit	$284,482,000	$281,282,000	—		$281,282,000	—
National certificates of deposit	306,927,000	307,508,000	—		307,508,000	—
Total certificates of deposit deposits	591,409,000	588,790,000	—		588,790,000	—
Repurchase agreements	40,205,000	40,161,000	—		40,161,000	—
Federal Home Loan Bank advances	170,112,000	169,240,000	—		169,240,000	—
Total borrowed funds	210,317,000	209,401,000	—		209,401,000	—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2017 were as follows:



	Carrying	Estimated
As of December 31, 2017	value	fair value	Level 1		Level 2	Level 3
Financial assets
Securities to be held to maturity	$256,567,000	$259,655,000	$	—	$259,655,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	319,691,000	311,321,000	—		72,000	311,249,000
Construction	37,594,000	36,610,000	—		—	36,610,000
Other	177,956,000	175,455,000	—		6,018,000	169,437,000
Municipal	33,370,000	33,280,000	—		—	33,280,000
Residential
Term	431,459,000	431,028,000	—		391,000	430,637,000
Construction	17,830,000	17,613,000	—		—	17,613,000
Home equity line of credit	110,566,000	109,012,000	—		40,000	108,972,000
Consumer	24,944,000	24,408,000	—		—	24,408,000
Total loans	1,153,410,000	1,138,727,000	—		6,521,000	1,132,206,000
Mortgage servicing rights	1,268,000	2,321,000	—		2,321,000	—
Financial liabilities
Local certificates of deposit	$223,074,000	$220,734,000	$	—	$220,734,000	$	—
National certificates of deposit	335,927,000	335,775,000	—		335,775,000	—
Total certificates of deposits	559,001,000	556,509,000	—		556,509,000	—
Repurchase agreements	70,564,000	67,976,000	—		67,976,000	—
Federal Home Loan Bank advances	158,194,000	156,396,000	—		156,396,000	—
Total borrowed funds	228,758,000	224,372,000	—		224,372,000	—