Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 and December 31, 2019 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, 2020 Using
Description	March 31, 2020		Level 1		Level 2		Level 3
ASSETS
U.S. Government agencies and corporations	$	351	$	—	$	351	$	—
Obligations of states and political subdivisions		69,931		—		69,931		—
U.S. Government-sponsored mortgage-backed securities		46,493		—		46,493		—
U.S. Government-sponsored collateralized mortgage obligations		7,851		—		7,851		—
U.S. Government-guaranteed small business administration pools		6,017		—		6,017		—
Loans held for sale		4,711		4,711		—		—
Interest rate derivatives		4,130		—		4,130		—

LIABILITIES
Interest rate derivatives	$	4,130	$	—	$	4,130	$	—

	(Amounts in thousands)
			Fair Value Measurements at December 31, 2019 Using
Description	December 31, 2019		Level 1		Level 2		Level 3
ASSETS
U.S. Government agencies and corporations	$	3,310	$	—	$	3,310	$	—
Obligations of states and political subdivisions		69,626		—		69,626		—
U.S. Government-sponsored mortgage-backed securities		48,237		—		48,237		—
U.S. Government-sponsored collateralized mortgage obligations		8,481		—		8,481		—
U.S. Government-guaranteed small business administration pools		6,477		—		6,477		—
Loans held for sale		4,890		4,890		—		—
Interest rate derivatives		1,422		—		1,422		—

LIABILITIES
Interest rate derivatives	$	1,422	$	—	$	1,422	$	—

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, 2020 and December 31, 2019.

	(Amounts in thousands)
	Fair value at March 31, 2020		Valuation Technique	Significant Unobservable Input	Range of Inputs
Impaired loans	$	233	Appraisal of Collateral	Appraisal Adjustments	(76)%
				Liquidation Expenses	(10)%

	(Amounts in thousands)
	Fair value at December 31, 2019		Valuation Technique	Significant Unobservable Input	Range of Inputs
Impaired loans	$	405	Appraisal of Collateral	Appraisal Adjustments	(76)%
				Liquidation Expenses	(10)%

Carrying Amounts and Fair Values of the Company's Financial Instruments Carried at Amortized Cost

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

	(Amounts in thousands)
	March 31, 2020
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	43,117	$	43,117	$	—	$	—	$	43,117
Net loans		477,152		—		—		479,887		479,887
Bank-owned life insurance		17,861		17,861		—		—		17,861
Accrued interest receivable		2,252		2,252		—		—		2,252

LIABILITIES:
Demand, savings and money market deposits	$	457,161	$	457,161	$	—	$	—	$	457,161
Time deposits		136,095		—		—		138,127		138,127
Securities sold under agreements to repurchase		1,675		1,675		—		—		1,675
Federal Home Loan Bank advances - short term		2,000		—		—		2,004		2,004
Federal Home Loan Bank advances - long term		22,000		—		—		22,260		22,260
Subordinated debt		5,155		—		—		3,789		3,789
Accrued interest payable		454		454		—		—		454

	(Amounts in thousands)
	December 31, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	27,815	$	27,815	$	—	$	—	$	27,815
Net loans		514,251		—		—		517,787		517,787
Bank-owned life insurance		17,768		17,768		—		—		17,768
Accrued interest receivable		2,336		2,336		—		—		2,336

LIABILITIES:
Demand, savings and money market deposits	$	476,358	$	476,358	$	—	$	—	$	476,358
Time deposits		142,023		—		—		143,485		143,485
Short term borrowings		1,922		1,922		—		—		1,922
Federal Home Loan Bank advances - short term		—		—		—		—		—
Federal Home Loan Bank advances - long term		24,000		—		—		24,005		24,005
Subordinated debt		5,155		—		—		4,835		4,835
Accrued interest payable		510		510		—		—		510