XML 34 R23.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of March 31, 2019 and December 31, 2018 are reflected below.

	(In Thousands)
	March 31, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	81,849	$	81,849	$	81,849	$	-	$	-
Interest-bearing time deposits		4,509		4,509		-		4,509		-
Securities - available-for-sale		174,682		174,682		22,883		150,356		1,443
Other securities		5,789		5,789						5,789
Loans held for sale		859		859						859
Loans, net		1,091,829		1,070,726						1,070,726
Interest receivable		7,238		7,238						7,238

Financial Liabilities:
Interest bearing deposits	$	691,648	$	691,702	$	-	$	-	$	691,702
Non-interest bearing deposits		236,847		236,847		-		236,847		-
Time deposits		258,929		259,395		-		-		259,395
Total Deposits		1,187,424		1,187,944		-		236,847		951,097

Federal funds purchased and securities sold under agreement to repurchase		25,521		25,521		-		-		25,521
Federal Home Loan Bank advances		24,682		24,604		-		-		24,604
Interest payable		3,728		3,728		-		-		3,728

	(In Thousands)
	December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	38,365	$	38,365	$	38,365	$	-	$	-
Interest-bearing time deposits		4,019		3,954		-		3,954		-
Securities - available-for-sale		168,447		168,447		36,935		130,085		1,427
Other securities		3,679		3,679		-		-		3,679
Loans held for sale		495		495		-		-		495
Loans, net		839,599		823,914		-		-		823,914
Interest receivable		4,542		4,542		-		-		4,542

Financial Liabilities:
Interest bearing deposits	$	525,955	$	525,955	$	-	$	-	$	525,955
Non-interest bearing deposits		215,422		215,422		-		215,422		-
Time deposits		187,413		187,545		-		-		187,545
Total Deposits		928,790		928,922		-		215,422		713,500

Federal funds purchased and securities sold under agreement to repurchase		32,181		3,181		-		-		32,181
Federal Home Loan Bank advances		-		-		-		-		-
Interest payable		418		418		-		-		418

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured at Fair Value on a Recurring Basis (In Thousands)
March 31, 2019	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury	$	22,883	$	-	$	-
U.S. Government agencies		-		74,215		-
Mortgage-backed securities		-		37,894		-
State and local governments		-		38,247		1,443
Total Securities Available-for-Sale	$	22,883	$	150,356	$	1,443

December 31, 2018	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury	$	22,830	$	-	$	-
U.S. Government agencies		14,105		55,222		-
Mortgage-backed securities		-		36,262		-
State and local governments		-		38,601		1,427
Total Securities Available-for-Sale	$	36,935	$	130,085	$	1,427

Changes in the Level 3 Fair-Value Category of Which Unobservable Inputs

The following table represents the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of March 31, 2019 and March 31, 2018.

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local Governments Tax-Exempt		State and Local Governments Taxable		State and Local Governments Total
Balance at January 1, 2019	$	-	$	1,427	$	1,427

Change in Market Value		-		16		16

Payments & Maturities		-		-		-

Balance at March 31, 2019	$	-	$	1,443	$	1,443

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local Governments Tax-Exempt		State and Local Governments Taxable			State and Local Governments Total
Balance at January 1, 2018	$	-	$	1,428		$	1,428

Change in Market Value		-		(5	)		(5	)

Payments & Maturities		-		-			-

Balance at March 31, 2018	$	-	$	1,423		$	1,423

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

	(In Thousands)				Range
	Fair Value at				(Weighted
	March 31, 2019		Valuation Technique	Unobservable Inputs	Average)
State and local government	$	1,443	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	0-5% (3.27%)

Collateral dependent impaired loans		195	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0-50% (23.33%)

Other real estate owned - residential		-	Appraisals	Discount to reflect current market	0-20% (0% )

Other real estate owned - commercial		29	Appraisals	Discount to reflect current market	0-20% (48.67% )

	(In Thousands)				Range
	Fair Value at				(Weighted
	December 31, 2018		Valuation Technique	Unobservable Inputs	Average)
State and local government	$	1,427	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	0-5% (3.51%)

Collateral dependent impaired loans		215	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0-50% (12.38%)

Other real estate owned - residential		-	Appraisals	Discount to reflect current market	— % ( — )

Other real estate owned - commercial		-	Appraisals	Discount to reflect current market	— % ( — )

Impaired Loans and Other Real Estate

The following table presents impaired loans and other real estate owned as recorded at fair value on March 31, 2019 and December 31, 2018:

	Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2019
	(In Thousands)
	Balance at March 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans	$	195	$	-	$	-	$	195
Other real estate owned - residential		-		-		-		-
Other real estate owned - commercial		29		-		-		29

	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2018
	(In Thousands)
	Balance at December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans	$	215	$	-	$	-	$	215
Other real estate owned - residential		-		-		-		-
Other real estate owned - commercial		-		-		-		-

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details