Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value, Assets Measured on Recurring Basis

The tables below present the recorded amount of assets as of March 31, 2019 and December 31, 2018 measured at fair value on a recurring basis.


(dollars in thousands)	March 31, 2019
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	$	104,512	$	—	$	104,512	$	—
MBS		12,244		—		12,244		—
U.S. Agency		11,644		—		11,644		—
Total available for sale securities	$	128,400	$	—	$	128,400	$	—
Equity securities carried at fair value through income
CRA investment fund	$	4,511	$	—	$	4,511	$	—


(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		—
Bond mutual funds		—		—		4,423		—
Total available for sale securities	$	119,976	$	—	$	119,976	$	—
Equity securities carried at fair value through income
CRA investment fund	$	4,428	$	—	$	4,428	$	—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis


(dollars in thousands)	March 31, 2019
Description of Asset	Fair Value		Level 1		Level 2		Level 3
Loans with impairment
Commercial real estate	$	2,066	$	—	$	—	$	2,066
Commercial loans		127		—		—		127
Commercial equipment		24		—		—		24
Total loans with impairment	$	2,217	$	—	$	—	$	2,217
Other real estate owned	$	10,949	$	—	$	—	$	10,949


(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

Schedule of unobservable inputs used in Level 3 fair value measurements

The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2019 and December 31, 2018.


March 31, 2019
(dollars in thousands)					Range
Description of Asset	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)
Loans with impairment	$	2,217	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (32%)

Other real estate owned	$	10,949	Third party appraisals and in-house real estate evaluations of fair value	Management discount for property type and current market conditions	0%-50% (10%)


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