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Fair Value of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value of Assets and Liabilities  
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis

June 30, 2020

 

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

$

$

37,205

$

$

37,205

Mortgage-backed securities

 

 

106,249

 

 

106,249

Obligations of states and political subdivisions

 

 

103,679

 

 

103,679

Total securities available for sale

 

 

247,133

 

 

247,133

Loans held for sale

 

 

180,137

 

 

180,137

Derivatives

IRLC

 

 

3,701

 

 

3,701

Interest rate swaps on loans

9,743

9,743

Total assets

$

$

440,714

$

$

440,714

Liabilities:

Derivatives

Interest rate swaps on loans

$

$

9,743

$

$

9,743

Cash flow hedges

2,273

2,273

Forward sales of TBA securities

93

93

Total liabilities

$

$

12,109

$

$

12,109

December 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

$

$

21,440

$

$

21,440

Mortgage-backed securities

 

 

86,585

 

 

86,585

Obligations of states and political subdivisions

 

 

81,708

 

 

81,708

Total securities available for sale

 

 

189,733

 

 

189,733

Loans held for sale

 

 

90,500

 

 

90,500

Derivatives

IRLC

 

 

1,083

 

 

1,083

Interest rate swaps on loans

 

 

2,462

 

 

2,462

Total assets

$

$

283,778

$

$

283,778

Liabilities:

Derivatives

Interest rate swaps on loans

$

$

2,462

$

$

2,462

Cash flow hedges

145

145

Forward sales of TBA securities

25

25

Total liabilities

$

$

2,632

$

$

2,632

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

June 30, 2020

 

Fair Value Measurements Using

Assets at Fair

 

(Dollars in thousands)

    

Level 1

    

Level 2

    

Level 3

    

Value

 

Other real estate owned, net

$

$

$

268

$

268

Total

$

$

$

268

$

268

    

December 31, 2019

 

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

 

 

 

268

 

268

Total

$

$

$

370

$

370

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 June 30, 2020

 

(Dollars in thousands)

    

Fair Value

    

Valuation Technique(s)

    

Unobservable Inputs

    

Range (Weighted Average)1

 

Other real estate owned, net

$

268

 

Appraisals

 

Discount to reflect current market conditions and estimated selling costs

 

33%-75% (45%)

Total

$

268

1The weighted average of unobservable inputs is calculated based on the relative asset fair values.
Schedule of carrying amounts and estimated fair values of financial instruments

  

Carrying

  

   Fair Value Measurements at June 30, 2020 Using   

  

 Total Fair 

 

(Dollars in thousands)

      Value      

Level 1

Level 2

Level 3

      Value      

 

Financial assets:

Cash and short-term investments

$

80,300

$

80,300

$

$

$

80,300

Securities available for sale

 

247,133

 

247,133

 

247,133

Loans, net

 

1,292,896

 

 

 

1,299,598

 

1,299,598

Loans held for sale

 

180,137

 

 

180,137

 

 

180,137

Derivatives

IRLC

3,701

3,701

3,701

Interest rate swaps on loans

9,743

9,743

9,743

Bank-owned life insurance

19,862

19,862

19,862

Accrued interest receivable

 

8,104

 

8,104

 

 

 

8,104

Financial liabilities:

Demand deposits

1,153,248

1,153,248

1,153,248

Time deposits

 

492,541

 

 

501,932

 

 

501,932

Borrowings

 

91,336

 

 

92,667

 

 

92,667

Derivatives

Cash flow hedges

 

2,273

 

2,273

 

2,273

Interest rate swaps on loans

9,743

9,743

9,743

Forward sales of TBA securities

93

93

93

Accrued interest payable

 

1,210

 

1,210

 

 

 

1,210

  

 Carrying 

  

Fair Value Measurements at December 31, 2019 Using

  

 Total Fair 

 

(Dollars in thousands)

      Value      

Level 1

Level 2

Level 3

      Value      

 

Financial assets:

Cash and short-term investments

$

165,433

$

165,433

$

$

$

165,433

Securities available for sale

 

189,733

 

189,733

 

189,733

Loans, net

 

1,082,318

 

 

 

1,082,783

 

1,082,783

Loans held for sale

 

90,500

 

 

90,500

 

 

90,500

Derivatives

IRLC

1,083

1,083

1,083

Interest rate swaps on loans

2,462

2,462

2,462

Bank-owned life insurance

16,044

16,044

16,044

Accrued interest receivable

 

6,776

 

6,776

 

 

 

6,776

Financial liabilities:

Demand deposits

869,194

869,194

869,194

Time deposits

 

422,056

 

 

423,605

 

 

423,605

Borrowings

 

161,170

 

 

154,964

 

 

154,964

Derivatives

Cash flow hedges

 

145

 

145

 

145

Interest rate swaps on loans

2,462

2,462

2,462

Forward sales of TBA securities

25

25

25

Accrued interest payable

 

1,291

 

1,291

 

 

 

1,291