Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value of Financial Instruments [Abstract]

Schedule of fair value measurements for assets and liabilities on a recurring basis

The following table presents 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, 2019:

					Significant
					Other		Significant		Total Changes
			Quoted		Observable		Unobservable		In Fair Values
	Carrying		Prices		Inputs		Inputs		Included In
	Value		(Level 1)		(Level 2)		(Level 3)		Period Income
Assets:	(dollars in thousands)
AFS Securities - U.S. government agency notes	$	5,019	$	—	$	5,019	$	—	$	—
AFS Securities - mortgage-backed securities		7,887		—		7,887		—		—
LHFS		10,910		—		10,910		—		(5)
MSRs		323		—		—		323		(114)
IRLCs		179		—		—		179		79
Best efforts forward contracts		23		—		23		—		23
Mandatory forward contracts		23		—		23		—		39

The following table presents 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, 2018:

					Significant
					Other		Significant		Total Changes
			Quoted		Observable		Unobservable		In Fair Values
	Carrying		Prices		Inputs		Inputs		Included In
	Value		(Level 1)		(Level 2)		(Level 3)		Period Income
Assets:	(dollars in thousands)
AFS Securities - U.S. Treasury notes	$	1,981	$	1,981	$	—	$	—	$	—
AFS Securities - U.S. government agency notes		9,997		—		9,997		—		—
LHFS		9,686		—		9,686		—		192
MSRs		437		—		—		437		(40)
IRLCs		100		—		—		100		78
Liabilities:
Mandatory forward contracts		16		—		16		—		(30)
Best efforts forward contracts		—		—		—		—		(3)

Schedule of additional quantitative information about assets measured at fair value on a recurring basis

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		Valuation	Unobservable	Range
	Estimate		Technique	Input	(Weighted-Average)
December 31, 2019:	(dollars in thousands)
MSRs	$	323	Market Approach	Weighted average prepayment speed	11.10	%
IRLCs		179	Market Approach	Range of pull through rate	70% - 95	%
				Average pull through rate	83	%
December 31, 2018:
MSRs	$	437	Market Approach	Weighted average prepayment speed	9.80	%
IRLCs		100	Market Approach	Range of pull through rate	70% - 95	%
				Average pull through rate	84	%

Schedule of activity of servicing assets at fair value

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

	2019		2018
	(dollars in thousands)
Beginning balance	$	437	$	477
Valuation adjustment		(114)		(40)
Ending balance	$	323	$	437

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

	2019		2018
	(dollars in thousands)
Beginning balance	$	100	$	22
Valuation adjustment		79		78
Ending balance	$	179	$	100

Schedule of assets measured at fair value on a nonrecurring basis

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:

	2019
					Significant
					Other		Significant
			Quoted		Observable		Unobservable
	Carrying		Prices		Inputs		Inputs		Range of	Weighted
	Value		(Level 1)		(Level 2)		(Level 3)		Discount (1)	Average
	(dollars in thousands)
Impaired loans	$	4,437	$	—	$	—	$	4,437	0% - 160%	8	%
Real estate acquired through foreclosure		1,174		—		—		1,174	0% - 16%	10	%

	2018
					Significant
					Other		Significant
			Quoted		Observable		Unobservable
	Carrying		Prices		Inputs		Inputs		Range of	Weighted
	Value		(Level 1)		(Level 2)		(Level 3)		Discount (1)	Average
	(dollars in thousands)
Impaired loans	$	5,678	$	—	$	—	$	5,678	0% - 16%	6.7	%

(1) Discount based on current market conditions and estimated selling costs

Estimated fair values of financial instruments

	2019
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	88,193	$	88,193	$	—	$	—	$	88,193
Certificates of deposit held for investment		7,540		7,540		—		—		7,540
AFS securities		12,906		—		12,906		—		12,906
HTM securities		25,960		1,008		25,150		—		26,158
LHFS		10,910		—		10,910		—		10,910
Loans receivable, net		638,547		—		—		647,238		647,238
Restricted stock investments		2,431		—		2,431		—		2,431
Accrued interest receivable		2,458		—		2,458		—		2,458
ROU asset		2,538		—		2,538		—		2,538
MSRs		323		—		—		323		323
IRLCs		179		—		—		179		179
Best effort forward contracts		23		—		23		—		23
Mandatory forward contracts		23		—		23		—		23
Liabilities:
Deposits		661,049		—		662,418		—		662,418
Accrued interest payable		317		—		317		—		317
Borrowings		35,000		—		35,063		—		35,063
Subordinated debentures		20,619		—		—		16,754		16,754
Lease liability		2,597		—		2,597		—		2,597

	2018
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	188,340	$	188,340	$	—	$	—	$	188,340
Certificates of deposit held for investment		8,780		8,780		—		—		8,780
AFS securities		11,978		1,981		9,997		—		11,978
HTM securities		38,912		2,008		36,204		—		38,212
LHFS		9,686		—		9,686		—		9,686
Loans receivable, net		674,305		—		—		670,512		670,512
Restricted stock investments		3,766		—		3,766		—		3,766
Accrued interest receivable		2,848		—		2,848		—		2,848
MSRs		437		—		—		437		437
IRLCs		100		—		—		100		100
Liabilities:
Deposits		779,506		—		778,313		—		778,313
Accrued interest payable		419		—		419		—		419
Borrowings		73,500		—		69,210		—		69,210
Subordinated debentures		20,619		—		—		20,619		20,619
Mandatory forward contracts		16		—		16		—		16