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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis
The results of the fair value hierarchy as of December 31, 2019, are as follows:
 
       
Fair Value Measurements Using
 
   
Carrying
Value
   
Quoted Prices

in Active Markets

for Identical Assets

(Level 1)
   
Significant

Observable
 
Inputs

(Level 2)
   
Significant
 
Other

Unobservable
Inputs

(Level 3)
 
(dollars in thousands)
                
Financial Instruments Measured at Fair Value on a Recurring Basis
 
 
 
 
Securities AFS
        
U.S. Treasury
  
$
—  
 
  
$
—  
 
  
$
—  
 
  
$
—  
 
U.S. Government Agency Sponsored Enterprises
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
SBA Backed Securities
  
 
54,211
 
  
 
—  
 
  
 
54,211
 
  
 
—  
 
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities
  
 
184,187
 
  
 
—  
 
  
 
184,187
 
  
 
—  
 
Privately Issued Residential Mortgage-Backed Securities
  
 
396
 
  
 
—  
 
  
 
396
 
  
 
—  
 
Obligations Issued by States and Political Subdivisions
  
 
18,076
 
  
 
—  
 
  
 
4,775
 
  
 
13,301
 
Other Debt Securities
  
 
3,632
 
  
 
—  
 
  
 
3,632
 
  
 
—  
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
$
260,502
 
  
$
—  
 
  
$
247,201
 
  
$
13,301
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Equity Securities
  
$
1,688
 
  
$
343
 
  
$
1,345
 
  
$
—  
 
Financial Instruments Measured at Fair Value on a
Non-recurring
Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans
  
$
877
 
  
$
—  
 
  
$
—  
 
  
$
877
 
The results of the fair value hierarchy as of December 31, 2018, are as follows:
 
   Fair Value Measurements Using 
   Carrying
Value		   Quoted Prices
in Active Markets
for Identical Assets
(Level 1)		   Significant
Observable
 
Inputs
(Level 2)		   Significant
 
Other
Unobservable
Inputs
(Level 3)		 
(dollars in thousands)                
Financial Instruments Measured at Fair Value on a Recurring Basis Securities AFS
 
 
 
 
U.S. Treasury
  $1,992   $—     $1,992   $—   
U.S. Government Agency Sponsored Enterprises
   3,915    —      3,915    —   
SBA Backed Securities
   70,194    —      70,194    —   
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities
   162,890    —      162,890    —   
Privately Issued Residential Mortgage-Backed Securities
   672    —      672    —   
Obligations Issued by States and Political Subdivisions
   93,503    —      4,775    88,728 
Other Debt Securities
   3,593    —      3,593    —   
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $336,759   $—     $248,031   $88,728 
  
 
 
   
 
 
   
 
 
   
 
 
 
Equity Securities
  $1,596   $
293
   $1,303   $— 
Financial Instruments Measured at Fair Value on a
Non-recurring
Basis Impaired Loans
  $251   $—   $—   $
251
 
Other Real Estate Owned
  $2,225   $—   $—   $2,225 
Assets Measured at Fair Value
The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2019. Management continues to monitor the assumptions used to value the assets listed below.
 
Asset
  
Fair Value
 
Valuation Technique
  
Unobservable Input
  
Unobservable Input
Value or Range
Securities AFS
(1)
  
$
13,301
 
Discounted cash flow
  
Discount rate
  
1.5%-3.2%
(2)
Impaired Loans
 
877
 
Appraisal of collateral
(3)
  
Appraisal adjustments
(4)
  
0%-30% discount
 
(1)
Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.
(2)
Weighted averages.
(3)
 
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
(4)
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.
The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2018. Management continues to monitor the assumptions used to value the assets listed below.
 
Asset
  Fair Value   
Valuation Technique
  
Unobservable Input
  
Unobservable Input
Value or Range
Securities AFS
(1)
  $88,728   Discounted cash flow  Discount rate  
2.1%-4.1%
(2)
Other Real Estate Owned
   2,225   Appraisal of collateral
(3)
  Appraisal adjustments 
(4)
  30% discount
Impaired Loans
   251   Appraisal of collateral
(3)
  Appraisal adjustments
(4)
  
0%-30% discount
 
(1)
Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.
(2)
Weighted averages.
(3)
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
(4)
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.
Changes in Level 3 Securities
The changes in Level 3 securities for the year ended December 31, 2019 are as shown in the table below:
 
   
Auction Rate
Securities
   
Obligations
Issued by States
and Political
Subdivisions
   
Total
 
(dollars in thousands)            
Balance at December 31, 2018
  $—     $88,728   $88,728 
Purchases
   —      21,408    21,408 
Maturities/redemptions
   —      (96,812)    (96,812) 
Transfer to Level 2
   —      —      —   
Amortization
   —      (23)    (23) 
Change in fair value
   —      —      —   
  
 
 
   
 
 
   
 
 
 
Balance at December 31, 2019
  $—     $13,301   $13,301 
  
 
 
   
 
 
   
 
 
 
The changes in Level 3 securities for the year ended December 31, 2018 are as shown in the table below:
 
   Auction Rate
Securities		   Obligations
Issued by States
and Political
Subdivisions		   Total 
(dollars in thousands)            
Balance at December 31, 2017
  $4,459   $78,141   $82,600 
Purchases
   —      132,470    132,470 
Maturities/redemptions
   —      (121,753)    (121,753) 
Transfer to Level 2
   (4,459)    —      (4,459) 
Amortization
   —      (130)    (130) 
Change in fair value
   —      —      —   
  
 
 
   
 
 
   
 
 
 
Balance at December 31, 2018
  $—     $88,728   $88,728