Note 20 - Disclosures About Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Fair Value Measurements and Financial Instruments Disclosure [Text Block]

(20)        DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes the carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy (see Note 19) in which the fair value measurements fall at December 31, 2020 and 2019:

					Fair Value Measurements Using
	Carrying		Fair
(In thousands)	Value		Value		Level 1		Level 2		Level 3
December 31, 2020:
Financial assets:
Cash and cash equivalents	$	175,888	$	175,888	$	175,888	$	-	$	-
Interest-bearing time deposits		6,396		6,687		-		6,687		-
Securities available for sale		283,502		283,502		-		283,502		-
Loans held for sale		7,941		8,101		-		8,101		-
Loans, net		500,331		506,207		-		-		506,207
FHLB and other restricted stock		1,988		N/A		N/A		N/A		N/A
Accrued interest receivable		3,434		3,434		-		3,434		-
Equity securities (included in other assets)		1,553		1,553		1,553 -		-
Financial liabilities:
Deposits		900,461		901,073		-		-		901,073
Accrued interest payable		153		153		-		153		-
December 31, 2019:
Financial assets:
Cash and cash equivalents	$	51,360	$	51,360	$	51,360	$	-	$	-
Interest-bearing time deposits		6,490		6,654		-		6,654		-
Securities available for sale		254,562		254,562		-		254,562		-
Loans held for sale		4,176		4,243		-		4,243		-
Loans, net		466,694		482,119		-		-		482,119
FHLB and other restricted stock		1,988		N/A		N/A		N/A		N/A
Accrued interest receivable		3,076		3,076		-		3,076		-
Equity securities (included in other assets)		1,746		1,746		1,746 -		-
Financial liabilities:
Deposits		722,177		721,729		-		-		721,729
Accrued interest payable		210		210		-		210		-

The carrying amounts in the preceding table are included in the consolidated balance sheets under the applicable captions. The contractual or notional amounts of financial instruments with off-balance-sheet risk are disclosed in Note 16, and the fair value of these instruments is considered immaterial.

The methods and assumptions used to estimate fair value are described as follows:

Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, demand deposits and other transaction accounts.  The fair value of securities and interest-bearing time deposits in other financial institutions is based on quoted market prices (where available) or values obtained from an independent pricing service.  The fair value of loans, excluding loans held for sale, and fixed-maturity certificates of deposit is based on discounted cash flows using current market rates applied to the estimated life and credit risk of the instrument.  The fair value of loans held for sale is based on specific prices of underlying contracts for sales to investors.  It is not practicable to determine the fair value of FHLB and other restricted stock due to restrictions placed on its transferability.  The methods utilized to measure the fair value of financial instruments at December 31, 2020 and 2019 represent an approximation of exit price, but an actual exit price may differ.