Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

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 December 31, 2018 and 2017 (in thousands).



			Fair Value Measurements at December 31, 2018
Description	Balance as of December 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	$	84,922	$	—	$	84,922	$	—
Obligations of states and political subdivisions	14,935		—		14,935		—
	$	99,857	$	—	$	99,857	$	—



			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, 2018 and 2017 (dollars in thousands).



			Fair Value Measurements at December 31, 2018
Description.	Balance as of December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans, net	$	391	$	—	$	—	$	391



			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, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted- Average)
Impaired loans, net	$	391	Property appraisals	Selling cost	10	%



	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 December 31, 2018 and 2017 are as follows (in thousands):



			Fair Value Measurements at December 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	$	28,618	$	28,618	$	—	$	—	$	28,618
Securities available for sale	99,857		—		99,857		—		99,857
Securities held to maturity	43,408		—		40,885		1,509		42,394
Restricted securities	1,688		—		1,688		—		1,688
Loans held for sale	419		—		419		—		419
Loans, net ⁽¹⁾	537,847		—		—		528,643		528,643
Bank owned life insurance	13,991		—		13,991		—		13,991
Accrued interest receivable	2,113		—		2,113		—		2,113
Financial Liabilities
Deposits	$	670,566	$	—	$	551,347	$	117,220	$	668,567
Subordinated debt	4,965		—		—		5,035		5,035
Junior subordinated debt	9,279		—		—		7,952		7,952
Accrued interest payable	139		—		139		—		139



			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 December 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.