Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Assets Reported on Consolidated Balance Sheets on a Recurring Basis at their Fair Value

The following table presents the assets reported on the consolidated balance sheets, on a recurring basis, at their fair value as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	(Amounts in thousands)
			Fair Value Measurements at March 31, 2019 Using
Description	March 31, 2019		Level 1		Level 2		Level 3
ASSETS
U.S. Government agencies and corporations	$	9,227	$	—	$	9,227	$	—
Obligations of states and political subdivisions		52,882		—		52,882		—
U.S. Government-sponsored mortgage-backed securities		55,390		—		55,390		—
U.S. Government-sponsored collateralized mortgage obligations		11,590		—		11,590		—
U.S. Government-guaranteed small business administration pools		7,283		—		7,283		—
Loans held for sale		2,321		2,321		—		—
Interest rate derivatives		566		—		566		—
LIABILITIES
Interest rate derivatives	$	566	$	—	$	566	$	—

	(Amounts in thousands)
			Fair Value Measurements at December 31, 2018 Using
Description	December 31, 2018		Level 1		Level 2		Level 3
ASSETS
U.S. Government agencies and corporations	$	9,002	$	—	$	9,002	$	—
Obligations of states and political subdivisions		51,658		—		51,658		—
U.S. Government-sponsored mortgage-backed securities		56,587		—		56,587		—
U.S. Government-sponsored collateralized mortgage obligations		11,976		—		11,976		—
U.S. Government-guaranteed small business administration pools		7,700		—		7,700		—
Loans held for sale		1,040		1,040		—		—
Interest rate derivatives		92		—		92		—
LIABILITIES
Interest rate derivatives	$	92	$	—	$	92	$	—

Changes in the Level 3 Fair Value Category

The following tables present the changes in the Level 3 fair value category for the three months ended March 31, 2019 and 2018. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly.

	(Amounts in thousands)
	Three Months Ended
	March 31,
	2019		2018
	Trust preferred securities		Trust preferred securities
Beginning balance	$	—	$	895
Net realized/unrealized losses included in:
Noninterest income		—		—
Other comprehensive income (loss)		—		195
Discount accretion (premium amortization)		—		—
Sales		—		—
Purchases, issuance, and settlements		—		—
Ending balance	$	—	$	1,090
Losses included in net income for the period relating to assets held at    period end	$	—	$	—

Trust Preferred Security with OTTI, its Credit Rating at Period End and Related Losses Recognized in Earnings

The following table details the one debt security with other-than-temporary impairment, its credit ratings at March 31, 2018 and the related losses recognized in earnings:

		(Amounts in thousands)
	Moody’s/Fitch Rating	Amount of OTTI related to credit loss at January 1, 2018		Additions in QTD March 31, 2018		Amount of OTTI related to credit loss at March 31, 2018
Trapeza IX B-1	Caa2/CC	$	140	$	—	$	140
Total		$	140	$	—	$	140

Carrying Amounts and Fair Values of the Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments are as follows:

	(Amounts in thousands)
	March 31, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	19,986	$	19,986	$	—	$	—	$	19,986
Investment securities available-for-sale		136,372		—		136,372		—		136,372
Loans held for sale		2,321		2,321		—		—		2,321
Loans		477,973		—		—		482,589		482,589
Bank-owned life insurance		15,439		15,439		—		—		15,439
Accrued interest receivable		2,346		2,346		—		—		2,346
Interest rate derivatives		566		—		566		—		566
LIABILITIES:
Demand, savings and money market deposits	$	432,653	$	432,653	$	—	$	—	$	432,653
Time deposits		138,923		—		—		139,953		139,953
Securities sold under agreements to repurchase		1,638		1,638		—		—		1,638
Federal Home Loan Bank advances - short term		9,000		—		—		8,991		8,991
Federal Home Loan Bank advances - long term		18,000		—		—		17,941		17,941
Subordinated debt		5,155		—		—		4,692		4,692
Accrued interest payable		483		483		—		—		483
Interest rate derivatives		566		—		566		—		566

	(Amounts in thousands)
	December 31, 2018
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	19,692	$	19,692	$	—	$	—	$	19,692
Investment securities available-for-sale		136,923		—		136,923		—		136,923
Loans held for sale		1,040		1,040		—		—		1,040
Loans		510,194		—		—		513,103		513,103
Bank-owned life insurance		15,711		15,711		—		—		15,711
Accrued interest receivable		2,255		2,255		—		—		2,255
Interest rate derivatives		92		—		92		—		92
LIABILITIES:
Demand, savings and money market deposits	$	483,054	$	483,054	$	—	$	—	$	483,054
Time deposits		121,365		—		—		122,295		122,295
Short term borrowings		2,206		2,206		—		—		2,206
Federal Home Loan Bank advances - short term		12,000		—		—		11,987		11,987
Federal Home Loan Bank advances - long term		16,000		—		—		15,880		15,880
Subordinated debt		5,155		—		—		4,620		4,620
Accrued interest payable		371		371		—		—		371
Interest rate derivatives		92		—		92		—		92

Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

The following table presents quantitative information about the Level 3 significant inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at March, 31 2019. There were no such Level 3 measurements at 12/31/18.

	(Amounts in thousands)
	Fair value at March 31, 2019		Valuation Technique	Significant Unobservable Input	Range of Inputs
Impaired loans	$	420	Appraisal of Collateral	Appraisal Adjustments	(76)%
				Liquidation Expenses	(10)%