Disclosures about Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Disclosures about Fair Value Measurements and Financial Instruments

Schedule of assets and liabilities measured and recorded at fair value on a recurring basis

The following table presents the assets and liability measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of March 31, 2020 and December 31, 2019, by level within the fair value hierarchy (in thousands).


	Fair Value Measurements at March 31, 2020
	Total		(Level 1)		(Level 2)		(Level 3)
Equity securities	$	386	$	386	$	—	$	—
Available for sale securities:
US Agency		3,967		—		3,967		—
US Agency mortgage-backed securities		82,084		—		82,084		—
Municipal		15,824		—		15,824		—
Corporate bonds		40,841		—		40,841		—
Fair value swap asset		3,520		—		3,520		—
Fair value swap liability		(3,520)		—		(3,520)		—


	Fair Value Measurements at December 31, 2019
	Total		(Level 1)		(Level 2)		(Level 3)
Equity securities	$	366	$	366	$	—	$	—
Available for sale securities:
US Agency		5,116		—		5,116		—
US Agency mortgage-backed securities		81,633		—		81,633		—
Municipal		15,170		—		15,170		—
Corporate bonds		39,830		—		39,830		—
Fair value swap asset		959		—		959		—
Fair value swap liability		(959)		—		(959)		—

Schedule of assets measured and recorded at fair value on a non-recurring basis

Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data):


	Fair Value Measurements at March 31, 2020
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	258	$	—	$	—	$	258


	Fair Value Measurements at December 31, 2019
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	255	$	—	$	—	$	255
Other real estate owned		37		—		—		37


	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
March 31, 2020	Estimate		Techniques	Input	(Wgtd Avg)
Impaired loans	$	258	Appraisal of collateral (1)	Appraisal adjustments(2)	0% to 100% (3%)


	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
December 31, 2019	Estimate		Techniques	Input	(Wgtd Avg)
Impaired loans	$	255	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 100% (3%)

Other real estate owned		37	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses	0% to 57% (38%) 21% to 134% (30%)

(1)

Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions.

Schedule of estimated fair value and recorded carrying value

The estimated fair values based on US GAAP measurements and recorded carrying values at March 31, 2020 and December 31, 2019, for the remaining financial instruments not required to be measured or reported at fair value were as follows (in thousands):


	March 31, 2020
	Carrying		Fair
	Value		Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Investment securities – HTM	$	42,068	$	44,236	$	—	$	41,242	$	2,994
Loans held for sale		4,750		4,889		4,889		—		—
Loans, net of allowance for loan loss and unearned income		863,315		867,308		—		—		867,308
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	646,074	$	642,965	$	—	$	—	$	642,965
Deposits with stated maturities		311,519		315,616		—		—		315,616
All other borrowings (1)		78,694		85,321		—		—		85,321


	December 31, 2019
	Carrying		Fair
	Value		Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Investment securities – HTM	$	39,936	$	41,082	$	—	$	38,129	$	2,953
Loans held for sale		4,868		4,970		4,970		—		—
Loans, net of allowance for loan loss and unearned income		873,427		873,908		—		—		873,908
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	651,469	$	631,023	$	—	$	—	$	631,023
Deposits with stated maturities		309,044		310,734		—		—		310,734
All other borrowings (1)		74,134		76,323		—		—		76,323

⁽¹⁾

All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt.