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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents balances of financial assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021:

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

Using

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets for
Identical Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

September 30, 2022

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of U.S. government corporations and agencies

 

$

9,211

 

 

$

 

 

$

9,211

 

 

$

 

Mortgage-backed securities

 

 

131,542

 

 

 

 

 

 

131,542

 

 

 

 

Obligations of states and political subdivisions

 

 

6,619

 

 

 

 

 

 

6,619

 

 

 

 

Subordinated debt

 

 

4,381

 

 

 

 

 

 

4,381

 

 

 

 

Derivative:

 

 

 

 

 

 

 

 

 

 

 

 

      Interest rate swaps

 

 

1,120

 

 

 

 

 

 

1,120

 

 

 

 

Total assets at fair value

 

$

152,873

 

 

$

 

 

$

152,873

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

      Interest rate swaps

 

$

1,120

 

 

$

 

 

$

1,120

 

 

$

 

Total liabilities at fair value

 

$

1,120

 

 

$

 

 

$

1,120

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets for
Identical Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

December 31, 2021

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

      Obligations of U.S. government corporations and agencies

 

$

14,921

 

 

$

 

 

$

14,921

 

 

$

 

U.S. treasury notes

 

 

2,003

 

 

 

 

 

 

2,003

 

 

 

 

Mortgage-backed securities

 

 

151,012

 

 

 

 

 

 

151,012

 

 

 

 

Obligations of states and political subdivisions

 

 

21,877

 

 

 

 

 

 

21,877

 

 

 

 

Subordinated debt

 

 

2,508

 

 

 

 

 

 

2,508

 

 

 

 

Derivative:

 

 

 

 

 

 

 

 

 

 

 

 

      Interest rate swap

 

 

58

 

 

 

 

 

 

58

 

 

 

 

Total assets at fair value

 

$

192,379

 

 

$

 

 

$

192,379

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

      Interest rate swap

 

$

58

 

 

$

 

 

$

58

 

 

$

 

Total liabilities at fair value

 

$

58

 

 

$

 

 

$

58

 

 

$

 

Quantitative Information About Level 3 Fair Value Measurements For Certain Financial Assets

The following table displays quantitative information about Level 3 Fair Value Measurements for certain financial assets measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021:

 

 

 

Quantitative information about Level 3 Fair Value Measurements

 

 

September 30, 2022

 

 

Valuation Technique(s)

 

Unobservable Input

 

Range

 

Weighted Average (1)

Assets:

 

 

 

 

 

 

 

 

Impaired loans

 

Present value of cash flows

 

Discount rate

 

4% - 6%

 

5 %

 

 

 

 

 

 

 

 

 

 

 

Quantitative information about Level 3 Fair Value Measurements

 

 

December 31, 2021

 

 

Valuation Technique(s)

 

Unobservable Input

 

Range

 

Weighted Average (1)

Assets:

 

 

 

 

 

 

 

 

Impaired loans

 

Discounted appraised value

 

Selling cost

 

12 %

 

12 %

Impaired loans

 

Present value of cash flows

 

Discount rate

 

4% - 6%

 

5 %

 

(1) Unobservable inputs were weighted by the relative fair values of the instruments.

Financial And Nonfinancial Assets Measured At Fair Value On A Nonrecurring Basis

The following table summarizes the Company’s financial and nonfinancial assets that were measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021:

 

 

 

 

 

 

Carrying value at

 

 

 

 

 

 

September 30, 2022

 

 

 

Balance as of

 

 

Identical
Assets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

September 30, 2022

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

643

 

 

$

 

 

$

 

 

$

643

 

 

 

 

 

 

Carrying value at

 

 

 

 

 

 

December 31, 2021

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

December 31, 2021

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

746

 

 

$

 

 

$

 

 

$

746

 

Company's Financial Instruments

The carrying value and fair value of the Company’s financial instruments at September 30, 2022 and December 31, 2021 were as follows:

 

 

 

Fair Value Measurements at

 

 

 

September 30, 2022

 

 

 

Using

 

 

 

Carrying
Value
as of

 

 

Quoted Prices
in Active
Markets for
Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

Fair Value
as of

 

 

 

September 30, 2022

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

September 30, 2022

 

 

 

(in thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

35,935

 

 

$

35,935

 

 

$

 

 

$

 

 

$

35,935

 

Securities

 

 

151,753

 

 

 

 

 

 

151,753

 

 

 

 

 

 

151,753

 

Restricted Investments

 

 

4,608

 

 

 

 

 

 

4,608

 

 

 

 

 

 

4,608

 

Loans held for sale

 

 

90

 

 

 

 

 

 

90

 

 

 

 

 

 

90

 

Loans, net

 

 

1,191,099

 

 

 

 

 

 

 

 

 

1,182,235

 

 

 

1,182,235

 

Bank owned life insurance

 

 

23,731

 

 

 

 

 

 

23,731

 

 

 

 

 

 

23,731

 

Accrued interest receivable

 

 

3,079

 

 

 

 

 

 

3,079

 

 

 

 

 

 

3,079

 

Interest rate swaps

 

 

1,120

 

 

 

 

 

 

1,120

 

 

 

 

 

 

1,120

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,254,114

 

 

$

 

 

$

1,254,480

 

 

$

 

 

$

1,254,480

 

Federal Home Loan Bank advances

 

 

75,000

 

 

 

 

 

 

74,978

 

 

 

 

 

 

74,978

 

Subordinated debt, net of unamortized issuance costs

 

 

29,360

 

 

 

 

 

 

29,352

 

 

 

 

 

 

29,352

 

Accrued interest payable

 

 

1,196

 

 

 

 

 

 

1,196

 

 

 

 

 

 

1,196

 

Interest rate swaps

 

 

1,120

 

 

 

 

 

 

1,120

 

 

 

 

 

 

1,120

 

 

 

 

Fair Value Measurements at

 

 

 

December 31, 2021

 

 

 

Using

 

 

 

Carrying Value
as of

 

 

Quoted Prices
in Active
Markets for
Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

Fair Value
as of

 

 

 

December 31, 2021

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

December 31, 2021

 

 

 

(in thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

64,068

 

 

$

64,068

 

 

$

 

 

$

 

 

$

64,068

 

Securities

 

 

192,321

 

 

 

 

 

 

192,321

 

 

 

 

 

 

192,321

 

Restricted Investments

 

 

1,049

 

 

 

 

 

 

1,049

 

 

 

 

 

 

1,049

 

Loans held for sale

 

 

876

 

 

 

 

 

 

876

 

 

 

 

 

 

876

 

Loans, net

 

 

976,933

 

 

 

 

 

 

 

 

 

969,612

 

 

 

969,612

 

Bank owned life insurance

 

 

23,236

 

 

 

 

 

 

23,236

 

 

 

 

 

 

23,236

 

Accrued interest receivable

 

 

2,634

 

 

 

 

 

 

2,634

 

 

 

 

 

 

2,634

 

Interest rate swap

 

 

58

 

 

 

 

 

 

58

 

 

 

 

 

 

58

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,177,235

 

 

$

 

 

$

1,177,582

 

 

$

 

 

$

1,177,582

 

Accrued interest payable

 

 

67

 

 

 

 

 

 

67

 

 

 

 

 

 

67

 

Interest rate swap

 

 

58

 

 

 

 

 

 

58

 

 

 

 

 

 

58