Fair Value of Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, by Balance Sheet Grouping

Fair value estimates of the Company’s financial instruments as of December 31, 2022 and 2021, including methods and assumptions utilized, are set forth below:

(Dollars in thousands)
	As of December 31, 2022
	Carrying
	amount			Level 1			Level 2			Level 3		Total
Financial assets:
Cash and cash equivalents	$	23,156		$	23,156		$	-		$	-	$	23,156
Interest-bearing deposits at other banks		9,084			-			9,084			-		9,084
Investment securities available-for-sale		489,306			123,111			366,195			-		489,306
Investment securities held-to-maturity		3,524			-			3,452			-		3,452
Bank stocks, at cost		5,470			n/a			n/a			n/a		n/a
Loans, net		841,149			-			-			828,726		828,726
Loans held for sale		2,488			-			2,488			-		2,488
Mortgage servicing rights		3,813			-			10,282			-		10,282
Accrued interest receivable		5,879			426			2,150			3,303		5,879
Derivative financial instruments		126			-			126			-		126
Financial liabilities:
Non-maturity deposits	$	(1,207,371	)	$	(1,207,371	)	$	-		$	-	$	(1,207,371	)
Certificates of deposit		(93,278	)		-			(90,760	)		-		(90,760	)
FHLB borrowings		(8,200	)		-			(8,200	)		-		(8,200	)
Subordinated debentures		(21,651	)		-			(18,189	)		-		(18,189	)
Other borrowings		(38,402	)		-			(36,183	)		-		(36,183	)
Accrued interest payable		(439	)		-			(439	)		-		(439	)

(Dollars in thousands)
	As of December 31, 2021
	Carrying
	amount			Level 1			Level 2			Level 3		Total
Financial assets:
Cash and cash equivalents	$	189,213		$	189,213		$	-		$	-	$	189,213
Interest-bearing deposits at other banks		7,378			-			7,378			-		7,378
Investment securities available-for-sale		380,717			42,675			338,042			-		380,717
Bank stocks, at cost		2,905			n/a			n/a			n/a		n/a
Loans, net		653,233			-			-			663,625		663,625
Loans held for sale		4,795			-			4,795			-		4,795
Mortgage servicing rights		4,193			-			6,722			-		6,722
Accrued interest receivable		4,405			107			1,666			2,632		4,405
Derivative financial instruments		494			-			494			-		494
Financial liabilities:
Non-maturity deposits	$	(1,042,374	)	$	(1,042,374	)	$	-		$	-	$	(1,042,374	)
Certificates of deposit		(106,107	)		-			(105,935	)		-		(105,935	)
Subordinated debentures		(21,651	)		-			(16,375	)		-		(16,375	)
Other borrowings		(7403	)		-			(7,403	)		-		(7,403	)
Accrued interest payable		(125	)		-			(125	)		-		(125	)

Schedule of Fair Value, Assets Measured On Recurring Basis

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2022 and 2021, allocated to the appropriate fair value hierarchy:

(Dollars in thousands)			As of December 31, 2022
			Fair value hierarchy
	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities
U. S. treasury securities	$	123,111	$	123,111	$	-	$	-
U. S. federal agency obligations		1,988		-		1,988		-
Municipal obligations, tax exempt		127,262		-		127,262		-
Municipal obligations, taxable		67,244		-		67,244		-
Agency mortgage-backed securities		169,701		-		169,701		-
Loans held for sale		2,488		-		2,488		-
Derivative financial instruments		126		-		126		-

(Dollars in thousands)			As of December 31, 2021
			Fair value hierarchy
	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities
U. S. treasury securities	$	42,675	$	42,675	$	-	$	-
U. S. federal agency obligations		17,195		-		17,195		-
Municipal obligations, tax exempt		137,984		-		137,984		-
Municipal obligations, taxable		40,046		-		40,046		-
Agency mortgage-backed securities		142,817		-		142,817		-
Loans held for sale		4,795		-		4,795		-
Derivative financial instruments		494		-		494		-

Schedule of Fair Value Contractual Balance and Gain Loss On Loans Held for Sale

The aggregate fair value, contractual balance (including accrued interest), and gain or loss on loans held for sale were as follows:

	As of December 31,
(Dollars in thousands)	2022		2021
Aggregate fair value	$	2,488	$	4,795
Contractual balance		2,468		4,651
Gain	$	20	$	144

Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale

	As of December 31,
(Dollars in thousands)	2022			2021			2020
Total change in fair value	$	(368	)	$	(836	)	$	848

Schedule of Fair Value Measurements On Nonrecurring, Valuation Techniques

The following table presents quantitative information about Level 3 fair value measurements for impaired loans measure at fair value on a non-recurring basis as of December 31, 2022 and 2021.

(Dollars in thousands)
	Fair value		Valuation technique	Unobservable inputs	Range
As of December 31, 2022
Impaired loans:
Commercial loans	$	101	Sales comparison	Adjustment to comparable sales		0%-25	%
Real estate owned:
One-to-four family residential real estate		272	Sales comparison	Adjustment to appraised value		15	%
Commercial real estate		234	Sales comparison	Adjustment to appraised value		15	%
As of December 31, 2021
Impaired loans:
Commercial loans	$	5	Sales comparison	Adjustment to comparable sales		0	%