Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018.



	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	7,398,000	$	—	$	7,398,000
Mortgage-backed securities	—		326,617,000		—		326,617,000
State and political subdivisions	—		26,505,000		—		26,505,000
Total securities available for sale	—		360,520,000		—		360,520,000
Interest rate swap agreements	—		562,000		—		562,000
Customer loan interest swap agreements	—		1,205,000		—		1,205,000
Total interest rate swap agreements	—		1,767,000		—		1,767,000
Total assets	$	—	$	362,287,000	$	—	$	362,287,000



	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	439,000	$	—	$	439,000
Customer loan interest swap agreements	—		1,205,000		—		1,205,000
Total liabilities	$	—	$	1,644,000	$	—	$	1,644,000



	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	—		1,889,000		—		1,889,000
Total assets	$	—	$	319,305,000	$	—	$	319,305,000



	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	69,000	$	—	$	69,000
Total liabilities	$	—	$	69,000	$	—	$	69,000

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 at December 31, 2019 and 2018. 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 $1,916,000 and $2,096,000 at December 31, 2019 and 2018, respectively.



	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	279,000	$	—	$	279,000
Impaired loans	—		6,579,000		—		6,579,000
Total assets	$	—	$	6,858,000	$	—	$	6,858,000



	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

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2019 were as follows:



	Carrying	Estimated
As of December 31, 2019	value	fair value	Level 1		Level 2	Level 3
Financial assets
Securities to be held to maturity	$281,606,000	$287,045,000	$	—	$287,045,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	368,645,000	364,626,000	—		2,000	364,624,000
Construction	37,678,000	37,366,000	—		—	37,366,000
Other	215,068,000	212,548,000	—		5,046,000	207,502,000
Municipal	41,258,000	40,552,000	—		—	40,552,000
Residential
Term	491,315,000	491,359,000	—		577,000	490,782,000
Construction	14,785,000	14,786,000	—		—	14,786,000
Home equity line of credit	91,149,000	90,959,000	—		954,000	90,005,000
Consumer	25,538,000	23,489,000	—		—	23,489,000
Total loans	1,285,436,000	1,275,685,000	—		6,579,000	1,269,106,000
Mortgage servicing rights	1,546,000	2,089,000	—		2,089,000	—
Financial liabilities
Local certificates of deposit	$285,602,000	$281,480,000	—		$281,480,000	—
National certificates of deposit	404,377,000	412,337,000	—		412,337,000	—
Total certificates of deposit deposits	689,979,000	693,817,000	—		693,817,000	—
Repurchase agreements	37,450,000	37,450,000	—		37,450,000	—
Federal Home Loan Bank advances	147,505,000	140,063,000	—		140,063,000	—
Total borrowed funds	184,955,000	177,513,000	—		177,513,000	—

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 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	—