Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value of Assets and Liabilities

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

	December 31, 2016
	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	$	—	$	16,112	$	—	$	16,112
Mortgage-backed securities		—		76,816		—		76,816
Obligations of states and political subdivisions		—		117,098		—		117,098
Total securities available for sale		—		210,026		—		210,026
Loans held for sale		—		52,027		—		52,027
Derivative asset - IRLC		—		663		—		663
Derivative asset - interest rate swaps on loans		—		1,032		—		1,032
Total assets	$	—	$	263,748	$	—	$	263,748
Liabilities:
Derivative liability - cash flow hedges	$	—	$	56	$	—	$	56
Derivative liability - interest rate swaps on loans		—		1,032		—		1,032
Total liabilities	$	—	$	1,088	$	—	$	1,088

	December 31, 2015
	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	$	—	$	18,501	$	—	$	18,501
Mortgage-backed securities		—		77,027		—		77,027
Obligations of states and political subdivisions		—		123,948		—		123,948
Total securities available for sale		—		219,476		—		219,476
Loans held for sale		—		44,000		—		44,000
Derivative asset - IRLC		—		744		—		744
Total assets	$	—	$	264,220	$	—	$	264,220
Liabilities:
Derivative liability - cash flow hedges	$	—	$	175	$	—	$	175

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

	December 31, 2016
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	2,303	$	2,303
Other real estate owned, net		—		—		195		195
Total	$	—	$	—	$	2,498	$	2,498

	December 31, 2015
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	1,953	$	1,953
Other real estate owned, net		—		—		942		942
Total	$	—	$	—	$	2,895	$	2,895

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

	Fair Value Measurements at December 31, 2016
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	2,303	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 50%
Other real estate owned, net		195	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 67%
Total	$	2,498

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at December 31, 2016 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	103,201	$	103,201	$	—	$	—	$	103,201
Securities available for sale		210,026		—		210,026		—		210,026
Loans, net		960,162		—		—		961,546		961,546
Loans held for sale		52,027		—		52,027		—		52,027
Derivative asset - IRLC		663		—		663		—		663
Derivative asset - interest rate swaps on loans		1,032		—		1,032		—		1,032
Bank-owned life insurance		15,103		—		15,103		—		15,103
Accrued interest receivable		7,261		7,261		—		—		7,261
Financial liabilities:
Demand deposits	$	775,506	$	775,506	$	—	$	—	$	775,506
Time deposits		344,415		—		346,648		—		346,648
Borrowings		164,567		—		157,138		—		157,138
Derivative liability - cash flow hedges		56		—		56		—		56
Derivative liability - interest rate swaps on loans		1,032		—		1,032		—		1,032
Accrued interest payable		703		703		—		—		703

	Carrying		Fair Value Measurements at December 31, 2015 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	152,943	$	152,943	$	—	$	—	$	152,943
Securities available for sale		219,476		—		219,476		—		219,476
Loans, net		865,892		—		—		875,341		875,341
Loans held for sale		44,000		—		44,000		—		44,000
Derivative asset - IRLC		744		—		744		—		744
Bank-owned life insurance		14,988		—		14,988		—		14,988
Accrued interest receivable		6,829		6,829		—		—		6,829
Financial liabilities:
Demand deposits	$	733,901	$	733,901	$	—	$	—	$	733,901
Time deposits		339,732		—		342,275		—		342,275
Borrowings		177,261		—		174,032		—		174,032
Derivative liability - cash flow hedges		175		—		175		—		175
Accrued interest payable		698		698		—		—		698