Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2019 and December 31, 2018, by level within the fair value hierarchy. No liabilities were carried at fair value. As required by the accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities are traded. Obligations of U.S. government corporations and agencies, mortgage-backed securities, asset-backed securities, obligations of states, and political subdivisions are valued at observable market data for similar assets.

(Dollars in thousands)		Level I			Level II			Level III			Total
Assets:					December 31, 2019
Securities available-for-sale
U.S. Treasury security	$		999	$		—	$		—	$		999
U.S. Government agencies			—			5,496			—			5,496
Mortgage-backed securities of government agencies			—			75,857			—			75,857
Asset-backed securities of government agencies			—			917			—			917
State and political subdivisions			—			21,511			—			21,511
Corporate bonds			—			7,366			—			7,366
Total available-for-sale securities	$		999	$		111,147	$		—	$		112,146
Equity securities	$		46	$		—	$		46	$		92

Assets:					December 31, 2018
Securities available-for-sale
U.S. Treasury security	$		996	$		—	$		—	$		996
U.S. Government agencies			—			7,170			—			7,170
Mortgage-backed securities of government agencies			—			44,901			—			44,901
Asset-backed securities of government agencies			—			1,024			—			1,024
State and political subdivisions			—			23,125			—			23,125
Corporate bonds			—			8,312			—			8,312
Total available-for-sale securities	$		996	$		84,532	$		—	$		85,528
Equity securities	$		37	$		—	$		46	$		83

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 December 31, 2019 and December 31, 2018, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral securing the impaired loans include: quoted market prices for identical assets classified as Level I inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

(Dollars in thousands)		Level I			Level II			Level III			Total
Assets measured on a nonrecurring basis					December 31, 2019
Impaired loans	$		—	$		—	$		553	$		553
Other real estate owned			—			—			99			99

Assets measured on a nonrecurring basis					December 31, 2018
Impaired loans	$		—	$		—	$		636	$		636
Other real estate owned			—			—			99			99

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

Fair Value

Valuation

Unobservable

Range

(Dollars in thousands)

Estimate

Techniques

Input

(Weighted Average)

December 31, 2019

Discounted

Remaining term

3.9 yrs to 26.9 yrs / (16 yrs)

Impaired loans

553

cash flow

Discount rate

3.5% to 6.0% / (5.3%)

Appraisal of

Appraisal adjustments ²

-33

Other real estate owned

collateral¹

Liquidation expense ²

-10

December 31, 2018