Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Instruments [Abstract]

Fair value measurements for assets on a recurring basis

The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2017:

	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes In Fair Values Included In Period Income
Assets:	(dollars in thousands)
AFS Securities - U.S. government agency notes	$	10,119	$	-	$	10,119	$	-	$	-
LHFS		4,530		-		4,530		-		131
MSRs		477		-		-		477		(80	)
IRLCs		22		-		22		-		(140	)
Mandatory forward contracts		13		-		13		-		(140	)
Best efforts forward contracts		3		-		3		-		3

The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016:

	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes In Fair Values Included In Period Income
Assets:	(dollars in thousands)
MSRs	$	557	$	-	$	-	$	557	$	66
IRLCs		162		-		162		-		(21	)
Mandatory forward contracts		153		-		153		-		42

Assets measured at fair value on a nonrecurring basis utilizing level 3 input

The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(dollars in thousands)
December 31, 2017:
MSRs	$	477	Market Approach	Weighted average prepayment speed		3.94	%
December 31, 2016:
MSRs	$	557	Market Approach	Weighted average prepayment speed		3.95	%

The activity in MSRs was as follows for the years ended December 31:

	2017			2016
Beginning balance	$	557		$	623
Valuation adjustment	$	(80	)	$	(66	)
Ending balance	$	477		$	557

For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets as of December 31:

	2017
	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Range of Discount			Weighted Average
	(dollars in thousands)
Impaired loans	$	2,793	$	-	$	-	$	2,793		0% - 33	%		14.5	%
Real estate acquired through foreclosure		178		-		-		178		0% - 22	%		11.5	%

	2016
	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Range of Discount			Weighted Average
	(dollars in thousands)
Impaired loans	$	2,136	$	-	$	-	$	2,136		0% - 2	%		2.0	%
Real estate acquired through foreclosure		767		-		-		767		0% - 10	%		10.0	%

Estimated fair values of financial instruments

The carrying value and estimated fair value of all financial instruments are summarized in the following tables.  The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above.

	December 31, 2017
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	21,853	$	21,853	$	-	$	-	$	21,853
Certificates of deposits held as investment		8,780		8,780		-		-		8,780
AFS securities		10,119		-		10,119		-		10,119
HTM securities		54,303		5,056		48,948		-		54,004
LHFS		4,530		-		4,530		-		4,530
Loans receivable		660,096		-		-		672,349		672,349
Restricted stock investments		4,489		-		4,489		-		4,489
Accrued interest receivable		2,640		-		2,640		-		2,640
MSRs		477		-		-		477		477
IRLCs		22		-		22		-		22
Mandatory forward contracts		13		-		13		-		13
Best effort forward contracts		3		-		3		-		3
Liabilities:
Deposits		602,228		-		594,659		-		594,659
Accrued interest payable		395		-		395		-		395
Borrowings		88,500		-		81,303		-		81,303
Subordinated debentures		20,619		-		-		20,619		20,619

	December 31, 2016
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	67,014	$	67,014	$	-	$	-	$	67,014
Certificates of deposit held as investment		100		100		-		-		100
HTM securities		62,757		13,165		49,662		-		62,827
LHFS		10,307		-		10,313		-		10,313
Loans receivable		601,309		-		-		602,953		602,953
Restricted stock investments		5,103		-		5,103		-		5,103
Accrued interest receivable		2,249		-		2,249		-		2,249
MSRs		557		-		-		557		557
IRLCs		162		-		162		-		162
Mandatory forward contracts		153		-		153		-		153
Liabilities:
Deposits		571,946		-		572,556		-		572,556
Accrued interest payable		538		-		538		-		538
Borrowings		103,500		-		97,961		-		97,961
Subordinated debentures		20,619		-		-		20,619		20,619