Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the Consolidated Balance Sheets at their fair value on a recurring basis as of June 30, 2018 and December 31, 2017 by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2018
Assets:
Securities available-for-sale
U.S. Treasury security	$	992	$	—	$	—	$	992
U.S. Government agencies		—		8,091		—		8,091
Mortgage-backed securities of government agencies		—		44,739		—		44,739
Asset-backed securities of government agencies		—		1,101		—		1,101
State and political subdivisions		—		26,117		—		26,117
Corporate bonds		—		9,768		—		9,768

Total available-for-sale securities	$	992	$	89,816	$	—	$	90,808
Equity securities	$	48	$	—	$	46	$	94
December 31, 2017
Assets:
Securities available-for-sale
U.S. Treasury security	$	998	$	—	$	—	$	998
U.S. Government agencies		—		8,229		—		8,229
Mortgage-backed securities of government agencies		—		49,701		—		49,701
Asset-backed securities of government agencies		—		1,169		—		1,169
State and political subdivisions		—		27,141		—		27,141
Corporate bonds		—		10,425		—		10,425

Total available-for-sale securities	$	998	$	96,665	$	—	$	97,663
Equity securities	$	89	$	—	$	—	$	89

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2018 and December 31, 2017, by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2018
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	616	$	616
December 31, 2017
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	2,073	$	2,073

Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on

a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:

Quantitative Information about Level III Fair Value Measurements

(Dollars in thousands)

Fair Value
Estimate

Valuation Techniques

Unobservable Input

Range (Weighted Average)

June 30, 2018

Impaired loans

583

Discounted cash flow

Remaining term Discount rate

1.7 yrs to 27 yrs / (14.4 yrs)
3.5% to 7.5% / (5.1%)

Appraisal of collateral ⁽¹⁾

Appraisal adjustments ⁽²⁾Liquidation expense ⁽²⁾

25% to 100% (85%) 10%

December 31, 2017

Impaired loans

551

Discounted cash flow

Remaining term Discount rate

4 mos to 24.5 yrs / (12.7 yrs)
4.4% to 7.5% /(5.3%)

1,522

Appraisal of collateral ⁽¹⁾

Appraisal adjustments ⁽²⁾

Liquidation expense ⁽²⁾

6% to 100% (7%) 10%

(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.

(2)	Appraisals may be adjusted by management for qualitative factors. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.