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Fair Value (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy are as follows:
 
(Dollar amounts in thousands)
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
Description
 
Total
 
Quoted Prices in
Active Markets
for Identical
Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs
June 30, 2018:
 
 

 
 

 
 

 
 

Securities available for sale
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency
 
$
4,411

 
$
4,411

 
$

 
$

U.S. government sponsored entities and agencies
 
20,590

 

 
20,590

 

U.S. agency mortgage-backed securities: residential
 
22,544

 

 
22,544

 

U.S. agency collateralized mortgage obligations: residential
 
20,254

 

 
20,254

 

State and political subdivision
 
24,660

 

 
24,660

 

Corporate debt securities
 
7,427

 

 
3,927

 
3,500

 
 
$
99,886

 
$
4,411

 
$
91,975

 
$
3,500

 
 
 
 
 
 
 
 
 
Equity securities
 
$
474

 
$
474

 
$

 
$

 
 
 
 
 
 
 
 
 
December 31, 2017:
 
 

 
 

 
 

 
 

Securities available for sale
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency
 
4,472

 
4,472

 

 

U.S. government sponsored entities and agencies
 
13,926

 

 
13,926

 

U.S. agency mortgage-backed securities: residential
 
20,758

 

 
20,758

 

U.S. agency collateralized mortgage obligations: residential
 
21,924

 

 
21,924

 

State and political subdivisions
 
29,240

 

 
29,240

 

Corporate debt securities
 
9,030

 

 
1,032

 
7,998

 
 
$
99,350

 
$
4,472

 
$
86,880

 
$
7,998

 
 
 
 
 
 
 
 
 
Equity securities
 
$
1,817

 
$
1,683

 
$

 
$
134

 
 
 
 
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents changes in Level 3 assets measured on a recurring basis for the three and six month periods ended June 30, 2018 and 2017:
 
(Dollar amounts in thousands)
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Balance at the beginning of the period
$
3,525

 
$
136

 
$
8,132

 
$
136

Total gains or losses (realized/unrealized):


 


 


 


Included in earnings

 

 
1

 

Included in other comprehensive income

 
(1
)
 

 
(1
)
Acquired

 

 

 

Sold out of Level 3
(25
)
 

 
(25
)
 

Transfers in and/or out of Level 3

 

 
(4,608
)
 

Balance at the end of the period
$
3,500

 
$
135

 
$
3,500

 
$
135

 
 
 
 
 
 
 
 
Schedule of Carrying Amount and Fair Values of Financial Instruments
The following table sets forth the carrying amount and estimated fair values of the Corporation’s financial instruments included in the consolidated balance sheet as of June 30, 2018 and December 31, 2017:
 
(Dollar amounts in thousands)
 
 
 
 
 
 
Carrying
 
Fair Value Measurements using:
Description
 
Amount
 
Total
 
Level 1
 
Level 2
 
Level 3
June 30, 2018:
 
 

 
 

 
 

 
 

 
 

Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
$
30,576

 
$
30,576

 
$
30,576

 
$

 
$

Securities - available for sale
 
99,886

 
99,886

 
4,411

 
91,975

 
3,500

Securities - equities
 
474

 
474

 
474

 

 

Loans held for sale
 

 

 

 

 

Loans, net
 
587,258

 
578,642

 

 

 
578,642

Federal bank stock
 
4,403

 
N/A

 
N/A

 
N/A

 
N/A

Accrued interest receivable
 
2,250

 
2,250

 
65

 
382

 
1,803

 
 
$
724,847

 
$
711,828

 
$
35,526

 
$
92,357

 
$
583,945

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Deposits
 
685,551

 
687,403

 
515,638

 
171,765

 

Borrowed funds
 
20,050

 
19,653

 

 
19,653

 

Accrued interest payable
 
410

 
410

 
32

 
378

 

 
 
$
706,011

 
$
707,466

 
$
515,670

 
$
191,796

 
$

 
 
Carrying
 
Fair Value Measurements using:
 
Amount
 
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2017:
 

 
 

 
 

 
 

 
 

Financial Assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
14,374

 
$
14,374

 
$
14,374

 
$

 
$

Securities - available for sale
99,350

 
99,350

 
4,472

 
86,880

 
7,998

Securities - equities
1,817

 
1,817

 
1,683

 

 
134

Loans held for sale
504

 
504

 

 
504

 

Loans, net
577,234

 
577,616

 

 

 
577,616

Federal bank stock
4,662

 

 
N/A

 
N/A

 
N/A

Accrued interest receivable
2,217

 
2,217

 
59

 
338

 
1,820

 
$
700,158

 
$
695,878

 
$
20,588

 
$
87,722

 
$
587,568

Financial Liabilities:
 

 
 

 
 

 
 

 
 

Deposits
654,643

 
657,414

 
483,956

 
173,458

 

Borrowed funds
26,000

 
25,499

 

 
25,499

 

Accrued interest payable
413

 
413

 
23

 
390

 

 
$
681,056

 
$
683,326

 
$
483,979

 
$
199,347

 
$