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Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2020
Fair Value Disclosures [Abstract] |
Fair Value, by Balance Sheet Grouping | The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2020 and December 31, 2019 are as follows:
| Fair Value Measurements
(dollars in thousands) | Carrying Value |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2020 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and short-term investments | $ | 148,839 |  |  | $ | 148,839 |  |  | $ | 148,839 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 363,601 |  |  | 363,601 |  |  | — |  |  | 361,599 |  |  | 2,002 |
Other investments, at cost | 3,296 |  |  | 3,296 |  |  | 2,567 |  |  | 729 |  |  | — |
Loans held for sale | 55,864 |  |  | 55,864 |  |  | — |  |  | 55,864 |  |  | — |
Loans, net | 1,090,586 |  |  | 1,111,221 |  |  | — |  |  | — |  |  | 1,111,221 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | 1,416,400 |  |  | 1,416,311 |  |  | — |  |  | 1,416,311 |  |  | — |
Paycheck Protection Program Liquidity Facility | 22,500 |  |  | 20,742 |  |  | — |  |  | 20,742 |  |  | — |
Federal Home Loan Bank advances | 134,500 |  |  | 134,500 |  |  | — |  |  | 134,500 |  |  | — |
Other borrowings | 38,042 |  |  | 38,042 |  |  | — |  |  | 38,046 |  |  | — |
| Fair Value Measurements
(dollars in thousands) | Carrying Value |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2019 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and short-term investments | $ | 104,092 |  |  | $ | 104,092 |  |  | $ | 104,192 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 347,332 |  |  | 347,332 |  |  | — |  |  | 345,310 |  |  | 2,022 |
Other investments, at cost | 4,288 |  |  | 4,288 |  |  | 3,559 |  |  | 729 |  |  | — |
Loans held for sale | 10,076 |  |  | 10,076 |  |  | — |  |  | 10,076 |  |  | — |
Loans, net | 961,951 |  |  | 938,475 |  |  | — |  |  | — |  |  | 938,475 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | 1,293,742 |  |  | 1,294,506 |  |  | — |  |  | 1,294,506 |  |  | — |
Federal Home Loan Bank advances | 47,000 |  |  | 44,402 |  |  | — |  |  | 44,402 |  |  | — |
Other borrowings | 38,792 |  |  | 38,792 |  |  | — |  |  | 38,792 |  |  | — |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of September 30, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at September 30, 2020 and December 31, 2019. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.
|  |  | Fair Value Measurements at Reporting Date Using
(dollars in thousands) | Total Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
September 30, 2020 |  |  |  |  |  |  |
Recurring Securities Available for Sale |  |  |  |  |  |  |
U.S. treasury securities | $ | 245 |  |  | $ | — |  |  | $ | 245 |  |  | $ | — |
State, county & municipal securities | 38,906 |  |  | — |  |  | 38,906 |  |  | — |
Corporate Debt securities | 3,753 |  |  | — |  |  | 1,751 |  |  | 2,002 |
Mortgage-backed securities | 320,697 |  |  | — |  |  | 320,697 |  |  | — |
Total available for sale securities | $ | 363,601 |  |  | $ | — |  |  | $ | 361,599 |  |  | $ | 2,002 |
Nonrecurring |  |  |  |  |  |  |
Collateral Dependent Impaired Loans | $ | 2,178 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,178 |
Other Real Estate | 1,875 |  |  | — |  |  | — |  |  | 1,875 |
Total nonrecurring assets | $ | 4,053 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,053 |
|  |  | Fair Value Measurements at Reporting Date Using
(dollars in thousands) | Total Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
December 31, 2019 |  |  |  |  |  |  |
Recurring Securities Available for Sale |  |  |  |  |  |  |
State, county & municipal securities | $ | 5,115 |  |  | $ | — |  |  | $ | 5,115 |  |  | $ | — |
Corporate Debt securities | 2,806 |  |  | — |  |  | 784 |  |  | 2,022 |
Mortgage-backed securities | 339,411 |  |  | — |  |  | 339,411 |  |  | — |
Total available for sale securities | $ | 347,332 |  |  | $ | — |  |  | $ | 345,310 |  |  | $ | 2,022 |
Nonrecurring |  |  |  |  |  |  |
Collateral Dependent Impaired Loans | $ | 5,985 |  |  | $ | — |  |  | $ | — |  |  | 5,985 |
Other Real Estate | 1,320 |  |  | — |  |  | — |  |  | 1,320 |
Total nonrecurring assets | $ | 7,305 |  |  | $ | — |  |  | $ | — |  |  | $ | 7,305 |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at September 30, 2020 and December 31, 2019. This table is comprised primarily of collateral dependent impaired loans and other real estate:
(dollars in thousands) | September 30, 2020 |  | Valuation Techniques |  | Unobservable Inputs |  | Range Weighted Avg
Collateral Dependent Impaired Loans | $ | 2,178 |  |  | Appraised Value |  | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |  | 10 | % |  | 80 | %
Other Real Estate | 1,875 |  |  | Appraised Value/Comparable Sales |  | Discounts to reflect current market conditions and estimated costs to sell |  | — | % |  | 20 | %
(dollars in thousands) | December 31, 2019 |  | Valuation Techniques |  | Unobservable Inputs |  | Range Weighted Avg
Collateral Dependent Impaired Loans | $ | 5,985 |  |  | Appraised Value |  | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |  | — | % |  | 20 | %
Other Real Estate | 1,320 |  |  | Appraised Value/Comparable Sales |  | Discounts to reflect current market conditions and estimated costs to sell |  | — | % |  | 20 | %
The following table presents quantitative information about recurring level 3 fair value measurements as of September 30, 2020 and December 31, 2019.
(dollars in thousands) |  |  |  |  |  |  |
September 30, 2020 | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Avg)
Corporate debt securities | $ | 2,002 |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
December 31, 2019 |  |  |  |  |  |  |
Corporate debt securities | $ | 2,022 |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the nine months ended September 30, 2020 and 2019.
| Available for Sale Securities
(dollars in thousands) | September 30, 2020 |  | September 30, 2019
Balance, Beginning | $ | 2,022 |  |  | $ | 4,277 |
Transfers out of Level 3 | — |  |  | — |
Sales | — |  |  | — |
Paydowns |  |  | (883) |
Realized Loss on Sale of Security | — |  |  | — |
Unrealized gains (losses) included in Other Comprehensive Income | (20) |  |  | 40 |
Balance, Ending | $ | 2,002 |  |  | $ | 3,434 |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=117815213&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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