Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Assets and Liabilities

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

	December 31, 2017
	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	$	—	$	16,173	$	—	$	16,173
Mortgage-backed securities		—		97,058		—		97,058
Obligations of states and political subdivisions		—		105,745		—		105,745
Total securities available for sale		—		218,976		—		218,976
Loans held for sale		—		55,384		—		55,384
Derivative asset - IRLC		—		528		—		528
Derivative asset - interest rate swaps on loans		—		1,261		—		1,261
Derivative asset - cash flow hedges		—		166		—		166
Total assets	$	—	$	276,315	$	—	$	276,315
Liabilities:
Derivative liability - interest rate swaps on loans	$	—	$	1,261	$	—	$	1,261
Total liabilities	$	—	$	1,261	$	—	$	1,261

	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

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

	December 31, 2017
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	3,438	$	3,438
Other real estate owned, net		—		—		168		168
Total	$	—	$	—	$	3,606	$	3,606

	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

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, 2017
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	3,438	Appraisals	Discount to reflect current market conditions and estimated selling costs	18% - 30%
Other real estate owned, net		168	Appraisals	Discount to reflect current market conditions and estimated selling costs	28%
Total	$	3,606

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at December 31, 2017 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	119,423	$	119,423	$	—	$	—	$	119,423
Securities available for sale		218,976		—		218,976		—		218,976
Loans, net		992,062		—		—		983,620		983,620
Loans held for sale		55,384		—		55,384		—		55,384
Derivative asset - IRLC		528		—		528		—		528
Derivative asset - interest rate swaps on loans		1,261		—		1,261		—		1,261
Derivative asset - cash flow hedges		166		—		166		—		166
Bank-owned life insurance		15,589		—		15,589		—		15,589
Accrued interest receivable		7,589		7,589		—		—		7,589
Financial liabilities:
Demand deposits	$	823,476	$	823,476	$	—	$	—	$	823,476
Time deposits		347,953		—		350,681		—		350,681
Borrowings		167,860		—		159,670		—		159,670
Derivative liability - interest rate swaps on loans		1,261		—		1,261		—		1,261
Accrued interest payable		838		838		—		—		838

	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		962,674		—		—		964,127		964,127
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