Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value of Assets and Liabilities

Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis

	March 31, 2019
	Fair Value Measurements Using						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	17,394	$	—	$	17,394
Mortgage-backed securities		—		100,590		—		100,590
Obligations of states and political subdivisions		—		91,023		—		91,023
Total securities available for sale		—		209,007		—		209,007
Loans held for sale		—		36,035		—		36,035
Derivative asset - IRLC		—		1,396		—		1,396
Derivative asset - interest rate swaps on loans		—		1,378		—		1,378
Derivative asset - cash flow hedges		—		182		—		182
Total assets	$	—	$	247,998	$	—	$	247,998
Liabilities:
Derivative liability - interest rate swaps on loans		—		1,378		—		1,378
Total liabilities	$	—	$	1,378	$	—	$	1,378

	December 31, 2018
	Fair Value Measurements Using						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	17,473	$	—	$	17,473
Mortgage-backed securities		—		104,983		—		104,983
Obligations of states and political subdivisions		—		92,454		—		92,454
Total securities available for sale		—		214,910		—		214,910
Loans held for sale		—		41,895		—		41,895
Derivative asset - IRLC		—		636		—		636
Derivative asset - interest rate swaps on loans		—		1,607		—		1,607
Derivative asset - cash flow hedges		—		289		—		289
Total assets	$	—	$	259,337	$	—	$	259,337
Liabilities:
Derivative liability - interest rate swaps on loans		—		1,607		—		1,607
Total liabilities	$	—	$	1,607	$	—	$	1,607

Schedule of balances of assets measured at fair value on a nonrecurring basis

	March 31, 2019
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	155	$	155
Other real estate owned, net		—		—		246		246
Total	$	—	$	—	$	401	$	401

	December 31, 2018
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	102	$	102
Other real estate owned, net		—		—		246		246
Total	$	—	$	—	$	348	$	348

Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis

	Fair Value Measurements at March 31, 2019
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	155	Appraisals	Discount to reflect current market conditions and estimated selling costs	30%-38%
Other real estate owned, net		246	Appraisals	Discount to reflect current market conditions and estimated selling costs	33%-47%
Total	$	401

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at March 31, 2019 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	137,451	$	137,451	$	—	$	—	$	137,451
Securities available for sale		209,007		—		209,007		—		209,007
Loans, net		1,042,052		—		—		1,038,191		1,038,191
Loans held for sale		36,035		—		36,035		—		36,035
Derivative asset - IRLC		1,396		—		1,396		—		1,396
Derivative asset - interest rate swaps on loans		1,378		—		1,378		—		1,378
Derivative asset - cash flow hedges		182		—		182		—		182
Bank-owned life insurance		16,162		—		16,162		—		16,162
Accrued interest receivable		7,267		7,267		—		—		7,267
Financial liabilities:
Demand deposits		824,044		824,044		—		—		824,044
Time deposits		378,150		—		375,881		—		375,881
Borrowings		161,807		—		154,451		—		154,451
Derivative liability - interest rate swaps on loans		1,378		—		1,378		—		1,378
Accrued interest payable		1,166		1,166		—		—		1,166

	Carrying		Fair Value Measurements at December 31, 2018 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	115,013	$	115,013	$	—	$	—	$	115,013
Securities available for sale		214,910		—		214,910		—		214,910
Loans, net		1,028,097		—		—		1,021,145		1,021,145
Loans held for sale		41,895		—		41,895		—		41,895
Derivative asset - IRLC		636		—		636		—		636
Derivative asset - interest rate swaps on loans		1,607		—		1,607		—		1,607
Derivative asset - cash flow hedges		289		—		289		—		289
Bank-owned life insurance		16,065		—		16,065		—		16,065
Accrued interest receivable		7,436		7,436		—		—		7,436
Financial liabilities:
Demand deposits		835,101		835,101		—		—		835,101
Time deposits		346,560		—		343,507		—		343,507
Borrowings		159,691		—		152,015		—		152,015
Derivative liability - interest rate swaps on loans		1,607		—		1,607		—		1,607
Accrued interest payable		920		920		—		—		920