Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value, Assets Measured on Recurring Basis

The tables below present the recorded amount of assets as of September 30, 2018 and December 31, 2017 measured at fair value on a recurring basis.



(dollars in thousands)	September 30, 2018
Description of Asset	Fair Value	Level 1	Level 2	Level 3
Available for sale securities
Asset-backed securities issued by GSEs and U.S. Agencies
CMOs	$ 89,432	$ -	$ 89,432	$ -
MBS	6,349	-	6,349	-
U.S. Agency	12,181	-	12,181	-
Total available for sale securities	$ 107,962	$ -	$ 107,962	$ -

Equity securities carried at fair value through income
CRA investment fund	$ 4,359	$ -	$ 4,359	$ -



(dollars in thousands)	December 31, 2017
Description of Asset	Fair Value	Level 1	Level 2	Level 3

Available for sale securities
Asset-backed securities issued by GSEs and U.S. Agencies
CMOs	$ 44,137	$ -	44,137	$ -
MBS	7,087	-	7,087	-
U.S. Agency	12,517	-	12,517	-
Bond mutual funds	4,423	-	4,423	-
Total available for sale securities	$ 68,164	$ -	$ 68,164	$ -

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis



(dollars in thousands)	September 30, 2018
Description of Asset	Fair Value	Level 1	Level 2	Level 3
Loans with impairment
Commercial real estate	$ 1,387	$ -	$ -	$ 1,387
Commercial loans	425	-	-	425
Commercial equipment	25	-	-	25
Total loans with impairment	$ 1,837	$ -	$ -	$ 1,837
Other real estate owned	$ 8,207	$ -	$ -	$ 8,207



(dollars in thousands)	December 31, 2017
Description of Asset	Fair Value	Level 1	Level 2	Level 3
Loans with impairment
Commercial real estate	$ 1,638	$ -	$ -	$ 1,638
Residential first mortgages	457	-	-	457
Residential rentals	377	-	-	377
Construction and land development	566	-	-	566
Commercial loans	164	-	-	164
Total loans with impairment	$ 3,202	$ -	$ -	$ 3,202
Other real estate owned	$ 9,341	$ -	$ -	$ 9,341

Unobservable Inputs Used In Level 3 Fair Value Measurements Table

The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2018 and December 31, 2017.


September 30, 2018
(dollars in thousands)
Description of Asset	Fair Value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Loans with impairment	$ 1,837	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (35%)
Other real estate owned	$ 8,207	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (13%)

December 31, 2017
(dollars in thousands)
Description of Asset	Fair Value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Loans with impairment	$ 3,202	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (24%)

Other real estate owned	$ 9,341	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (12%)