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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Balances of Assets Measured at Fair Value on a Recurring Basis
The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 (in thousands).
 
 
 
Fair Value Measurements at March 31, 2018
Description
Balance as of March 31,
2018
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Securities available for sale
 
 
 
 
 
 
 
U.S. agency and mortgage-backed securities
$
79,108

 
$

 
$
79,108

 
$

Obligations of states and political subdivisions
14,591

 

 
14,591

 

 
$
93,699

 
$

 
$
93,699

 
$

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements at December 31, 2017
Description
Balance as of December 31,
2017
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Securities available for sale
 
 
 
 
 
 
 
U.S. agency and mortgage-backed securities
$
74,804

 
$

 
$
74,804

 
$

Obligations of states and political subdivisions
14,451

 

 
14,451

 

 
$
89,255

 
$

 
$
89,255

 
$

Summary of Assets Measured at Fair Value on a Nonrecurring Basis
The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2017 (dollars in thousands):
 
 
 
Fair Value Measurements at December 31, 2017
Description
Balance as of December 31,
2017
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other real estate owned
$
326

 
$

 
$

 
$
326

Quantitative Information about Level 3 Fair Value Measurements
 
Quantitative information about Level 3 Fair Value Measurements for December 31, 2017
 
Fair Value
 
Valuation Technique
 
Unobservable Input
 
Range
(Weighted-Average)
Other real estate owned
$
326

 
Contract Price
 
Selling cost
 
7
%
Carrying Values and Estimated Fair Values of Company's Financial Instruments
The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands):
 
 
 
Fair Value Measurements at March 31, 2018 Using
 
Carrying
Amount
 
Quoted
Prices in
Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Fair Value
Financial Assets
 
 
 
 
 
 
 
 
 
Cash and short-term investments
$
69,277

 
$
69,277

 
$

 
$

 
$
69,277

Securities available for sale
93,699

 

 
93,699

 

 
93,699

Securities held to maturity
46,791

 

 
44,133

 
1,497

 
45,630

Restricted securities
1,590

 

 
1,590

 

 
1,590

Loans held for sale
68

 

 
68

 

 
68

Loans, net (1)
515,664

 

 

 
515,058

 
515,058

Bank owned life insurance
13,711

 

 
13,711

 

 
13,711

Accrued interest receivable
1,869

 

 
1,869

 

 
1,869

Financial Liabilities
 
 
 
 
 
 
 
 
 
Deposits
$
692,825

 
$

 
$
567,790

 
$
122,595

 
$
690,385

Subordinated debt
4,952

 

 

 
4,884

 
4,884

Junior subordinated debt
9,279

 

 

 
9,357

 
9,357

Accrued interest payable
106

 

 
106

 

 
106

 
 
 
Fair Value Measurements at December 31, 2017 Using
 
Carrying
Amount
 
Quoted
Prices in
Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Fair Value
Financial Assets
 
 
 
 
 
 
 
 
 
Cash and short-term investments
$
39,986

 
$
39,986

 
$

 
$

 
$
39,986

Securities available for sale
89,255

 

 
89,255

 

 
89,255

Securities held to maturity
48,208

 

 
46,186

 
1,516

 
47,702

Restricted securities
1,570

 

 
1,570

 

 
1,570

Loans held for sale
438

 

 
438

 

 
438

Loans, net (1)
516,875

 

 

 
514,013

 
514,013

Bank owned life insurance
13,967

 

 
13,967

 

 
13,967

Accrued interest receivable
1,916

 

 
1,916

 

 
1,916

Financial Liabilities
 
 
 
 
 
 
 
 
 
Deposits
$
664,980

 
$

 
$
542,329

 
$
120,834

 
$
663,163

Subordinated debt
4,948

 

 

 
5,004

 
5,004

Junior subordinated debt
9,279

 

 

 
9,653

 
9,653

Accrued interest payable
98

 

 
98

 

 
98


(1)
In accordance with the prospective adoption of ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," the fair value of loans as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion.