FAIR VALUE MEASUREMENTS (Tables)
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3 Months Ended |
Mar. 31, 2023 |
FAIR VALUE MEASUREMENTS |
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Schedule of securities measured at fair value on a recurring basis |
| | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | Level 1 | | Level 2 | | Level 3 | | Total | Debt Securities Available-for-Sale: | | | | | | | | | | | | | U.S. Treasury securities | | $ | 6,966 | | $ | — | | $ | — | | $ | 6,966 | Obligations of U.S. Government Agencies and Sponsored Agencies: | | | | | | | | | | | | | Mortgaged-backed | | | — | | | 131,116 | | | — | | | 131,116 | Other | | | — | | | 10,424 | | | — | | | 10,424 | Other mortgage backed debt securities | | | — | | | 32,017 | | | — | | | 32,017 | Obligations of state and political subdivisions | | | — | | | 89,489 | | | — | | | 89,489 | Asset-backed securities | | | — | | | 33,782 | | | — | | | 33,782 | Corporate debt securities | | | — | | | 42,476 | | | — | | | 42,476 | Total debt securities available-for-sale | | | 6,966 | | | 339,304 | | | — | | | 346,270 | Marketable equity securities | | | 1,544 | | | — | | | — | | | 1,544 | Total recurring fair value measurements | | $ | 8,510 | | $ | 339,304 | | $ | — | | $ | 347,814 |
| | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Level 1 | | Level 2 | | Level 3 | | Total | Debt Securities Available-for-Sale: | | | | | | | | | | | | | U.S. Treasury securities | | $ | 6,801 | | $ | — | | $ | — | | $ | 6,801 | Obligations of U.S. Government Agencies and Sponsored Agencies: | | | | | | | | | | | | | Mortgaged-backed | | | — | | | 131,675 | | | — | | | 131,675 | Other | | | — | | | 11,180 | | | — | | | 11,180 | Other mortgage backed debt securities | | | — | | | 33,688 | | | — | | | 33,688 | Obligations of state and political subdivisions | | | — | | | 110,689 | | | — | | | 110,689 | Asset-backed securities | | | — | | | 36,418 | | | — | | | 36,418 | Corporate debt securities | | | — | | | 42,993 | | | — | | | 42,993 | Total debt securities available-for-sale | | | 6,801 | | | 366,643 | | | — | | | 373,444 | Marketable equity securities | | | 1,699 | | | — | | | — | | | 1,699 | Total recurring fair value measurements | | $ | 8,500 | | $ | 366,643 | | $ | — | | $ | 375,143 |
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Schedule of impaired loans measured at fair value on a nonrecurring basis |
| | | | | | | | | | | | | (Dollars in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | Assets at March 31, 2023 | | | | | | | | | | | | | Individually evaluated loans: | | | | | | | | | | | | | Commercial Real Estate | | $ | — | | $ | — | | $ | 2,340 | | $ | 2,340 | Residential Real Estate | | | — | | | — | | | 30 | | | 30 | Total individually evaluated loans | | $ | — | | $ | — | | $ | 2,370 | | $ | 2,370 |
Prior to the adoption of ASU No. 2016-13, at December 31, 2022, impaired loans measured at fair value on a nonrecurring basis were as follows: | | | | | | | | | | | | | (Dollars in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | Assets at December 31, 2022 | | | | | | | | | | | | | Impaired loans: | | | | | | | | | | | | | Commercial Real Estate | | $ | — | | $ | — | | $ | 5,167 | | $ | 5,167 | Residential Real Estate | | | — | | | — | | | 30 | | | 30 | Total impaired loans | | $ | — | | $ | — | | $ | 5,197 | | $ | 5,197 |
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Schedule of fair value measurement inputs and valuation techniques |
| | | | | | | | | | | | (Dollars in thousands) | | Quantitative Information about Level 3 Fair Value Measurements | | | | | | | | | | | | | Post-ASU No. 2016-13 Adoption: | | Fair Value | | | | | | | | Weighted | March 31, 2023 | | Estimate | | Valuation Technique | | Unobservable Input | | Range | | Average | Individually evaluated loans - collateral dependent | | $ | 2,370 | | Appraisal of collateral1,3 Certificate of Inspection1,3 | | Appraisal adjustments2 Qualitative Adjustments4 | | (0%) – (5%) | | (5%) | | | | | | | | | | | | | Pre-ASU No. 2016-13 Adoption: | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | Impaired loans - collateral dependent | | $ | 2,370 | | Appraisal of collateral1,3 Certificate of Inspection1,3 | | Appraisal adjustments2 Qualitative Adjustments4 | | (0%) – (5%) | | (5%) | Impaired loans - other | | $ | 2,827 | | Discounted cash flow | | Discount rate | | (4%) – (7%) | | (6%) |
1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators. 2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. 3. Includes qualitative adjustments by management and estimated liquidation expenses. 4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses.
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Schedule of fair value of financial instruments, including financial assets and financial liabilities |
| | | | | | | | | | | | | | | | (Dollars in thousands) | | Carrying | | Fair Value Measurements at March 31, 2023 | | | Amount | | Level 1 | | Level 2 | | Level 3 | | Total | FINANCIAL ASSETS: | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 11,278 | | $ | 11,278 | | $ | — | | $ | — | | $ | 11,278 | Interest-bearing deposits in other banks | | | 1,035 | | | — | | | 1,035 | | | — | | | 1,035 | Restricted investment in bank stocks | | | 8,352 | | | — | | | 8,352 | | | — | | | 8,352 | Net loans | | | 855,041 | | | — | | | — | | | 827,192 | | | 827,192 | Mortgage servicing rights | | | 304 | | | — | | | — | | | 304 | | | 304 | Accrued interest receivable | | | 4,035 | | | — | | | 4,035 | | | — | | | 4,035 | | | | | | | | | | | | | | | | | FINANCIAL LIABILITIES: | | | | | | | | | | | | | | | | Demand, savings and other deposits | | | 748,848 | | | — | | | 748,848 | | | — | | | 748,848 | Time deposits | | | 199,067 | | | — | | | 195,062 | | | — | | | 195,062 | Short-term borrowings | | | 179,907 | | | — | | | 179,939 | | | — | | | 179,939 | Long-term borrowings | | | 25,000 | | | — | | | 24,435 | | | — | | | 24,435 | Subordinated debentures | | | 25,000 | | | — | | | 22,990 | | | — | | | 22,990 | Accrued interest payable | | | 1,289 | | | — | | | 1,289 | | | — | | | 1,289 | | | | | | | | | | | | | | | | | OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | (Dollars in thousands) | | Carrying | | Fair Value Measurements at December 31, 2022 | | | Amount | | Level 1 | | Level 2 | | Level 3 | | Total | FINANCIAL ASSETS: | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 9,441 | | $ | 9,441 | | $ | — | | $ | — | | $ | 9,441 | Interest-bearing deposits in other banks | | | 1,297 | | | — | | | 1,297 | | | — | | | 1,297 | Restricted investment in bank stocks | | | 7,136 | | | — | | | 7,136 | | | — | | | 7,136 | Net loans | | | 850,195 | | | — | | | — | | | 810,104 | | | 810,104 | Mortgage servicing rights | | | 319 | | | — | | | — | | | 319 | | | 319 | Accrued interest receivable | | | 4,391 | | | — | | | 4,391 | | | — | | | 4,391 | | | | | | | | | | | | | | | | | FINANCIAL LIABILITIES: | | | | | | | | | | | | | | | | Demand, savings and other deposits | | | 827,399 | | | — | | | 827,399 | | | — | | | 827,399 | Time deposits | | | 166,100 | | | — | | | 160,472 | | | — | | | 160,472 | Short-term borrowings | | | 153,418 | | | — | | | 153,209 | | | — | | | 153,209 | Long-term borrowings | | | 25,000 | | | — | | | 24,090 | | | — | | | 24,090 | Subordinated debentures | | | 25,000 | | | — | | | 22,365 | | | — | | | 22,365 | Accrued interest payable | | | 563 | | | — | | | 563 | | | — | | | 563 | | | | | | | | | | | | | | | | | OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | | | — | | | — | | | — | | | — | | | — |
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