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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value, Assets Measured on Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021.

	Fair Value Measurements as of March 31, 2022 Using
	Totals At March 31, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	44,582	$	—	$	44,582	$	—
Commercial		22,136		—		22,136		—
Obligations of U.S. government-sponsored agencies		4,801		—		4,801		—
Obligations of states and political subdivisions		4,182		—		4,182		—
Corporate notes		19,395		—		19,395		—
U.S. Treasury securities		39,922		—		39,922		—
Other assets - derivatives		1,182		—		1,182		—

	Fair Value Measurements as of December 31, 2021 Using
	Totals At December 31, 2020		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	46,228	$	—	$	46,228	$	—
Commercial		24,971		—		24,971		—
Obligations of U.S. government-sponsored agencies		5,192				5,192		—
Obligations of states and political subdivisions		4,317		—		4,317		—
Corporate notes		15,482		—		15,482		—
U.S. Treasury securities		34,693		—		34,693		—
Other liabilities - derivatives		774		—		774		—

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of March 31, 2022 and December 31, 2021:

	Fair Value Measurements as of March 31, 2022 Using
	Totals At March 31, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Impaired loans	$	7	$	—	$	—	$	7
OREO and other assets held-for-sale		874		—		—		874

	Fair Value Measurements as of December 31, 2021 Using
	Totals At December 31, 2021		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Impaired loans	$	6	$	—	$	—	$	6
OREO and other assets held-for-sale		2,149		—		—		2,149

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

The following table presents information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of March 31, 2022. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input and the weighted average within the range utilized as of March 31, 2022 are both included. Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

Level 3 Significant Unobservable Input Assumptions

Fair Value

March 31,

2022

Valuation Technique

Unobservable Input

Quantitative Range

of Unobservable

Inputs

(Weighted Average)

(Dollars in Thousands)

Non-recurring fair value measurements:

Impaired loans

Multiple data points,

including discount to

appraised value of

collateral based on

recent market activity

Appraisal comparability

adjustment (discount)

9%-10%

(9.5%)

OREO and other assets held-for-sale

874

Discount to appraised

value of property

based on recent

market activity for

sales of similar

properties

Appraisal comparability

adjustment (discount)

9%-10%

(9.5%)

Fair Value, by Balance Sheet Grouping

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2022 and December 31, 2021 were as follows:

	March 31, 2022
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	97,839	$	97,839	$	97,839	$	—	$	—
Investment securities available-for-sale		135,018		135,018		—		135,018		—
Investment securities held-to-maturity		2,718		2,686		—		2,686		—
Federal funds sold		81		81		—		81		—
Federal Home Loan Bank stock		934		934		—		—		934
Loans, net of allowance for loan and lease losses		669,846		660,789		—		—		660,789
Other assets - derivatives		1,182		1,182		—		1,182		—
Liabilities:
Deposits		853,117		848,274		—		848,274		—
Short-term borrowings		10,062		10,062		—		10,062		—
Long-term borrowings		10,671		10,369				10,369

	December 31, 2021
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	61,244	$	61,244	$	61,244	$	—	$	—
Investment securities available-for-sale		130,883		130,883		—		130,883		—
Investment securities held-to-maturity		3,436		3,477		—		3,477		—
Federal funds sold		82		82		—		82		—
Federal Home Loan Bank stock		870		870		—		—		870
Loans, net of allowance for loan and lease losses		700,030		694,744		—		—		694,744
Liabilities:
Deposits		838,126		837,439		—		837,439		—
Short-term borrowings		10,046		10,046		—		10,046		—
Long-term borrowings		10,653		10,804				10,804
Other liabilities - derivatives		774		774		—		774		—