Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Assets Measured On Recurring Basis


		Carrying Value at March 31, 2018 (in thousands)
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)
US Treasuries	$1,814	$ -	$1,814	$ -
US agency obligations	23,218	-	23,218	-
Mortgage-backed securities	13,665	-	13,665	-
Municipals	12,139	-	12,139	-
Corporates	3,797	-	3,797	-

Total available-for-sale securities	$54,633	$ -	$54,633	$ -
		Carrying Value at December 31, 2017 (in thousands)
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)
US Treasuries	$1,858	$	$1,858	$
US agency obligations	23,850	-	23,850	-
Mortgage-backed securities	13,388	-	13,388	-
Municipals	12,274	-	12,274	-
Corporates	3,942	-	3,942	-

Total available-for-sale securities	$55,312	$ -	$55,312	$ -

Impaired Loans And Other Real Estate Owned Measured At Fair Value On A Nonrecurring Basis

		Carrying Value 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)
Impaired loans*	$2,266	$ -	$ -	$2,266
Loans held for sale	3,448	-	3,448	-
Other real estate owned	2,096	-	-	2,096

* Includes loans charged down to the net realizable value of the collateral.


		Carrying Value 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)
Impaired loans*	$2,523	$ -	$ -	$2,523
Loans held for sale	2,626	-	2,626	-
Other real estate owned	2,650	-	-	2,650

* Includes loans charged down to the net realizable value of the collateral.

Information Regarding Quantitative Inputs Used To Value Assets Classified As Level 3

	Quantitative information about Level 3 Fair Value Measurements for March 31, 2018 (dollars in thousands)
	Fair Value	Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets
Impaired loans	$2,266	Discounted appraised value	Selling cost	0% - 10% (8%)
			Discount for lack of marketability and age of appraisal	0% - 20% (6%)

OREO	2,096	Discounted appraised value	Selling cost	0% - 10% (6%)
			Discount for lack of marketability and age of appraisal	0% - 25% (15%)


	Quantitative information about Level 3 Fair Value Measurements for December 31, 2017 (dollars in thousands)
	Fair Value	Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets
Impaired loans	$2,523	Discounted appraised value	Selling cost	0% - 10% (8%)
			Discount for lack of marketability and age of appraisal	0% - 20% (6%)

OREO	2,650	Discounted appraised value	Selling cost	0% - 10% (6%)
			Discount for lack of marketability and age of appraisal	0% - 25% (15%)

Fair Value Carrying And Notional Amounts


		Fair Value Measurements at March 31, 2018 using
			Quoted Prices	Significant
			in Active	Other	Significant
			Markets for	Observable	Unobservable
	Carrying		Identical Assets	Inputs	Inputs
Assets	Amounts		(Level 1)	(Level 2)	(Level 3)	Balance
Cash and due from banks	$21,769		$21,769	$ -	$ -	$21,769
Fed funds sold	33,519		33,519	-	-	33,519
Securities
Available-for-sale	54,633		-	54,633	-	54,633
Held-to-maturity	3,708		-	3,478	-	3,478
Restricted stock	1,887			1,887	-	1,887
Loans, net (1)	501,877		-	-	493,747	493,747
Loans held for sale	3,448		-	3,448	-	3,448
Interest receivable	1,827		-	1,827	-	1,827
BOLI	13,103		-	13,103	-	13,103

Liabilities
Deposits	$584,516		$ -	$585,276	$ -	$585,276
FHLB borrowings	10,000		-	10,000	-	10,000
Capital notes	5,000		-	4,885	-	4,885
Interest payable	108		-	108	-	108


		Fair Value Measurements at December 31, 2017 using
		Quoted Prices	Significant
		in Active	Other	Significant
		Markets for	Observable	Unobservable
	Carrying	Identical Assets	Inputs	Inputs
Assets	Amounts	(Level 1)	(Level 2)	(Level 3)	Balance
Cash and due from banks	$20,267	$20,267	$ -	$ -	$20,267
Fed funds sold	16,751	16,751			16,751
Securities
Available-for-sale	55,312	-	55,312	-	55,312
Held-to-maturity	5,713	-	5,619	-	5,619
Restricted stock	1,505	-	1,505		1,505
Loans, net (1)	491,022	-	-	492,397	492,397
Loans held for sale	2,626	-	2,626	-	2,626
Interest receivable	1,713	-	1,713	-	1,713
BOLI	13,018	-	13,018	-	13,018

Liabilities
Deposits	$567,493	$ -	$568,224	$ -	$568,224
Capital notes	5,000	-	5,310		5,310
Interest payable	111	-	111	-	111

(1)

Carrying amount is net of unearned income and the Allowance. In accordance with the prospective adoption of ASU No. 2016-01, 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.