Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value, Assets Measured on Recurring Basis

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



(dollars in thousands)	December 31, 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	$ 100,740	$ -	$ 100,740	$ -
MBS	7,361	-	7,361	-
U.S. Agency	11,875	-	11,875	-
Total available for sale securities	$ 119,976	$ -	$ 119,976	$ -

Equity securities carried at fair value through income
CRA investment fund	$ 4,428	$ -	$ 4,428	$ -


(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

The Company may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 are included in the tables below.



(dollars in thousands)	December 31, 2018
Description of Asset	Fair Value	Level 1	Level 2	Level 3
Loans with impairment
Commercial real estate	$ 2,699	$ -	$ -	$ 2,699
Commercial loans	163	-	-	163
Commercial equipment	25	-	-	25
Total loans with impairment	$ 2,887	$ -	$ -	$ 2,887
Other real estate owned	$ 8,111	$ -	$ -	$ 8,111



(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 equipment	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 Text Block]

The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements.


December 31, 2018
(dollars in thousands)
Description of Asset	Fair Value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Loans with impairment	$ 2,887	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (29%)

Other real estate owned	$ 8,111	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (14%)

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%)