Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 5 – FAIR VALUE MEASUREMENTS

The Company provides disclosures about assets and liabilities carried at fair value.  The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. The three broad levels of the fair value hierarchy are described below:

Level I:	Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.
Level II:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by corroborated or other means.  If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.
Level III:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

NOTE 5 – FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets reported on the Consolidated Balance Sheets at their fair value on a recurring basis as of March 31, 2022 and December 31, 2021 by level within the fair value hierarchy. No liabilities are carried at fair value.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  Equity securities with readily determinable values and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities are traded. Obligations of U.S. government agencies, mortgage-backed securities, asset-backed securities, obligations of states and political subdivisions and corporate bonds are valued at observable market data for similar assets.  Equity securities without readily determinable values are carried at amortized cost adjusted for impairment and observable price changes and are not included in the table below.

(Dollars in thousands)	Level I		Level II		Level III		Total
March 31, 2022
Assets:
Securities available-for-sale
U.S. Treasury securities	$	14,880	$	—	$	—	$	14,880
U.S. Government agencies		—		13,095		—		13,095
Mortgage-backed securities of government agencies		—		69,321		—		69,321
Asset-backed securities of government agencies		—		730		—		730
State and political subdivisions		—		22,454		—		22,454
Corporate bonds		—		22,842		—		22,842
Total available-for-sale securities	$	14,880	$	128,442	$	—	$	143,322
Equity securities	$	202	$	—	$	—	$	202
December 31, 2021
Assets:
Securities available-for-sale
U.S. Treasury securities	$	4,972	$	—	$	—	$	4,972
U.S. Government agencies		—		13,672		—		13,672
Mortgage-backed securities of government agencies		—		77,774		—		77,774
Asset-backed securities of government agencies		—		753		—		753
State and political subdivisions		—		23,331		—		23,331
Corporate bonds		—		11,206		—		11,206
Total available-for-sale securities	$	4,972	$	126,736	$	—	$	131,708
Equity securities	$	69	$	—	$	—	$	69

There were no assets reported at fair value and recorded on a nonrecurring basis on March 31, 2022 and December 31, 2021.