10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

COMMISSION FILE NUMBER 000-22062

UWHARRIE CAPITAL CORP

(Exact name of registrant as specified in its charter)

North Carolina	56-1814206
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
132 NORTH FIRST STREET ALBEMARLE, north carolina	28001
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (704) 983-6181

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 6,930,717 shares of common stock outstanding as of May 2, 2022.

Table of Contents

		Page No.
Part I.	FINANCIAL INFORMATION
Item 1 -	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	3
	Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021	4
	Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2022 and 2021	5
	Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2022 and 2021	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	7
	Notes to Consolidated Financial Statements	8
Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3 -	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4 -	Controls and Procedures	34
Part II.	OTHER INFORMATION
Item 1 -	Legal Proceedings	34
Item 1A -	Risk Factors	34
Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3 -	Defaults Upon Senior Securities	35
Item 4 -	Mine Safety Disclosures	35
Item 5 -	Other Information	35
Item 6 -	Exhibits	36
	Signatures	37

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Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Part I. Financial Information

Item 1. Financial Statements.

	March 31, 2022 (Unaudited)			December 31, 2021*
	(dollars in thousands)
ASSETS
Cash and due from banks	$	6,705		$	5,298
Interest-earning deposits with banks		109,005			89,112
Cash and cash equivalents		115,710			94,410
Securities available for sale, at fair value		322,268			330,337
Securities held to maturity, at amortized cost (fair value $29,909 and $32,045 respectively)		30,722			30,801
Equity security, at fair value		383			392
Loans held for sale		11,910			21,684
Loans:
Loans held for investment		445,924			420,779
Less allowance for loan losses		(4,156	)		(4,026	)
Net loans held for investment		441,768			416,753
Premises and equipment, net		15,716			15,987
Interest receivable		2,731			2,554
Restricted stock		1,428			921
Bank-owned life insurance		9,095			9,066
Prepaid assets		1,179			968
Loan servicing assets		5,240			5,078
Mortgage banking derivatives		1,485			1,269
Other assets		14,105			9,460
Total assets	$	973,740		$	939,680
LIABILITIES
Deposits:
Demand noninterest-bearing	$	268,574		$	239,422
Interest checking and money market accounts		436,397			422,942
Savings deposits		109,535			103,341
Time deposits, $250,000 and over		21,809			23,720
Other time deposits		47,183			47,327
Total deposits		883,498			836,752
Short-term borrowed funds		1,344			1,081
Long-term debt		29,549			29,530
Mortgage banking derivatives		—			50
Other liabilities		12,191			11,480
Total liabilities		926,582			878,893
Off balance sheet items, commitments and contingencies (Note 10)
SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and    outstanding 6,930,717 and 6,959,556, at March 31, 2022 and December 31, 2021, respectively		8,664			8,700
Additional paid-in capital		11,814			12,032
Undivided profits		31,213			30,551
Accumulated other comprehensive loss		(15,188	)		(1,151	)
Total Uwharrie Capital Corp shareholders’ equity		36,503			50,132
Noncontrolling interest		10,655			10,655
Total shareholders’ equity		47,158			60,787
Total liabilities and shareholders’ equity	$	973,740		$	939,680

(*) Derived from audited consolidated financial statements

See accompanying notes

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Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income (Unaudited)

	Three Months Ended March 31,
	2022			2021
	(in thousands, except share and per share data)
Interest Income
Loans, including fees	$	5,107		$	6,062
Investment securities
Investment securities, taxable		1,015			826
Investment securities, non-taxable		358			253
Equity Securities		5			—
Interest-earning deposits with banks and federal funds sold		40			16
Total interest income		6,525			7,157
Interest Expense
Interest checking and money market accounts		113			91
Savings deposits		18			15
Time deposits, $250,000 and over		14			29
Other time deposits		32			76
Short-term borrowed funds		1			1
Long-term debt		315			136
Total interest expense		493			348
Net interest income		6,032			6,809
Provision for (recovery of) loan losses		118			(34	)
Net interest income after provision for (recovery of) loan losses		5,914			6,843
Noninterest Income
Service charges on deposit accounts		243			242
Interchange and card transaction fees, net		238			219
Other service fees and commissions		901			630
Gain (loss) on sale of securities		(91	)		940
Realized/unrealized loss on equity securities		(9	)		(19	)
Income from mortgage banking		1,267			5,106
Supplemental executive retirement plan loss		(48	)		(187	)
Other income		128			176
Total noninterest income		2,629			7,107
Noninterest Expense
Salaries and employee benefits		5,016			5,389
Net occupancy expense		425			426
Equipment expense		188			172
Data processing costs		212			165
Loan costs		169			306
Professional fees and services		212			236
Marketing and donations		334			621
Electronic banking expense		111			89
Software amortization and maintenance		311			390
FDIC insurance		62			71
Supplemental executive retirement plan loss		(48	)		(187	)
Other noninterest expense		582			467
Total noninterest expense		7,574			8,145
Income before income taxes		969			5,805
Income taxes		168			1,222
Net income	$	801		$	4,583
Consolidated net income	$	801		$	4,583
Less: net income attributable to noncontrolling interest		(139	)		(139	)
Net income attributable to Uwharrie Capital Corp and common shareholders		662			4,444
Net income per common share
Basic	$	0.10		$	0.61
Diluted	$	0.10		$	0.61
Weighted average shares outstanding
Basic		6,951,961			7,262,313
Diluted		6,951,961			7,262,313

See accompanying notes  

=

-4-

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended March 31,
	2022			2021
	(in thousands)
Net income	$	801		$	4,583
Unrealized loss on available for sale securities		(18,322	)		(3,959	)
Related tax effect		4,213			937
Reclassification of (gain) loss recognized in net income		91			(940	)
Related tax effect		(19	)		190
Total other comprehensive loss		(14,037	)		(3,772	)
Comprehensive income (loss)		(13,236	)		811
Less: Comprehensive income attributable to noncontrolling interest		(139	)		(139	)
Comprehensive income (loss) attributable to Uwharrie Capital Corp	$	(13,375	)	$	672

See accompanying notes

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Uwharrie Capital Corp and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)

	Number of Common Shares Issued			Common Stock			Additional Paid-in Capital			Undivided Profits		Accumulated Other Comprehensive Income (Loss)			Non Controlling Interest			Total
	(dollars in thousands, except share data)
Balance, December 31, 2020		7,052,143		$	8,815		$	12,607		$	23,000	$	4,160		$	10,655		$	59,237
Net Income		—			—			—			4,444		—			139			4,583
Repurchase and retirement of common stock		(12,201	)		(15	)		(68	)		—		—			—			(83	)
Other comprehensive loss		—			—			—			—		(3,772	)		—			(3,772	)
Record preferred stock dividend Series B    (noncontrolling interest)		—			—			—			—		—			(103	)		(103	)
Record preferred stock dividend Series C    (noncontrolling interest)		—			—			—			—		—			(36	)		(36	)
Balance, March 31, 2021		7,039,942		$	8,800		$	12,539		$	27,444	$	388		$	10,655		$	59,826
Balance, December 31, 2021		6,959,556		$	8,700		$	12,032		$	30,551	$	(1,151	)	$	10,655		$	60,787
Net Income		—			—			—			662		—			139			801
Repurchase and retirement of common stock		(28,839	)		(36	)		(218	)		—		—			—			(254	)
Other comprehensive loss		—			—			—			—		(14,037	)		—			(14,037	)
Record preferred stock dividend Series B    (noncontrolling interest)		—			—			—			—		—			(103	)		(103	)
Record preferred stock dividend Series C    (noncontrolling interest)		—			—			—			—		—			(36	)		(36	)
Balance, March 31, 2022		6,930,717		$	8,664		$	11,814		$	31,213	$	(15,188	)	$	10,655		$	47,158

See accompanying notes

-6-

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Cash flows from operating activities
Net income	$	801		$	4,583
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		287			271
Right of use asset amortization		85			85
Provision for (recovery of) loan losses		118			(34	)
(Gain) loss on sale of securities available for sale		91			(940	)
Gain on sale of mortgage loans		386			3,041
Realized/unrealized loss on equity securities		9			19
Net amortization of premium on investment securities available for sale		733			174
Net amortization of premium on investment securities held to maturity		37			39
Amortization of loan servicing rights		336			383
Originations and purchases of mortgage loans for sale		(41,909	)		(108,979	)
Proceeds from sales of mortgage loans for sale		51,297			98,313
Mortgage banking derivatives		(266	)		(1,046	)
Loan servicing assets		(493	)		(938	)
Accrued interest receivable		(177	)		179
Prepaid assets		(211	)		(72	)
Cash surrender value of life insurance		(29	)		(32	)
Miscellaneous other assets		(284	)		2,056
Accrued interest payable		61			(5	)
Miscellaneous other liabilities		650			2,412
Net cash provided (used) by operating activities		11,522			(491	)
Cash flows from investing activities
Proceeds from sales of investment securities available for sale		8,398			34,237
Proceeds from sale of equity securities		—			929
Proceeds from maturities, calls and paydowns of securities available for sale		9,007			4,505
Proceeds from maturities, calls and paydowns of securities held to maturity		42			366
Purchase of investment securities available for sale		(28,391	)		(41,445	)
Purchase of investments in other assets		(172	)		—
Proceeds from sales of investments in other assets		—			1,125
Net change in restricted stock		(507	)		245
Net (increase) decrease in loans		(25,133	)		7,184
Purchase of premises and equipment		(82	)		(72	)
Net cash provided (used) by investing activities		(36,838	)		7,074
Cash flows from financing activities
Net increase in deposit accounts		46,746			953
Net increase in federal funds purchased and other short-term borrowings		263			628
Proceeds from long-term borrowings		—			250
Repurchase of common stock, net		(254	)		(83	)
Dividends paid on preferred stock (noncontrolling interest)		(139	)		(139	)
Net cash provided by financing activities		46,616			1,609
Increase in cash and cash equivalents		21,300			8,192
Cash and cash equivalents, beginning of period		94,410			88,868
Cash and cash equivalents, end of period	$	115,710		$	97,060
Supplemental disclosures of cash flow information
Interest paid	$	432		$	328
Income taxes paid		—			—
Supplemental schedule of non-cash activities
Net change in fair value of securities available for sale, net of tax	$	(14,037	)	$	3,772

See accompanying notes

-7-

UWHARRIE CAPITAL CORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 1 – Basis of Presentation

The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management continues to evaluate the impact of COVID-19, the disease caused by the novel Coronavirus, as well as its evolving variants, beyond the current impacts as of March 31, 2022, which are discussed throughout the accompanying notes of this report. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements.

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 9, 2022. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses.

Accounting Changes, Reclassifications and Restatements

Certain amounts in the 2021 financial statements have been reclassified to conform to the 2022 presentation. These reclassifications did not have an impact on net income or shareholders’ equity.

Note 2 – Comprehensive Income (Loss)

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

The following table presents the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022			2021
	(dollars in thousands)
Beginning balance	$	(1,151	)	$	4,160
Other comprehensive income (loss) before reclassifications,    net of $4,213 and $937 tax effect, respectively		(14,109	)		(3,022	)
Amounts reclassified from accumulated other    comprehensive income, net of ($19) and $190 tax effect, respectively		72			(750	)
Net current-period other comprehensive income (loss)		(14,037	)		(3,772	)
Ending balance	$	(15,188	)	$	388

-8-

Note 3 – Noncontrolling Interest

In 2013, the Company’s subsidiary bank issued a total of $10.7 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B and Series C. The preferred stock qualifies as Tier 1 capital at the bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income.

Note 4 – Per Share Data

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at March 31, 2022 or December 31, 2021.

Basic and diluted net income per common share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding.  

The weighted average number of common shares outstanding was 6,951,961 for the three-month period ended March 31, 2022 compared to 7,262,313 for the three-month period ended March 31, 2021.

Note 5 – Investment and Equity Securities

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	31,410	$	—	$	2,021	$	29,389
U.S. Government agencies		42,290		70		685		41,675
GSE - Mortgage-backed securities and CMOs		124,749		5		7,678		117,076
Asset-backed securities		42,161		318		218		42,261
State and political subdivisions		93,383		51		9,360		84,074
Corporate bonds		8,000		2		209		7,793
Total securities available for sale	$	341,993	$	446	$	20,171	$	322,268

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	152	$	—	$	3	$	149
State and political subdivisions		15,570		14		363		15,221
Corporate bonds		15,000		30		491		14,539
Total securities held to maturity	$	30,722	$	44	$	857	$	29,909

-9-

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	26,675	$	16	$	310	$	26,381
U.S. Government agencies		40,066		172		426		39,812
GSE - Mortgage-backed securities and CMOs		121,994		190		1,736		120,448
Asset-backed securities		43,383		875		60		44,198
State and political subdivisions		89,786		892		1,201		89,477
Corporate bonds		9,928		148		55		10,021
Total securities available for sale	$	331,832	$	2,293	$	3,788	$	330,337

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	175	$	1	$	—	$	176
State and political subdivisions		15,626		1,096		—		16,722
Corporate bonds		15,000		196		49		15,147
Total securities held to maturity	$	30,801	$	1,293	$	49	$	32,045

The Company owned Federal Reserve Bank (FRB) stock reported at cost of $959,000 and $509,000 at March 31, 2022 and December 31, 2021, respectively. The Company owned Federal Home Loan Bank (FHLB) stock reported at cost of $469,000 and $411,000 at March 31, 2022 and December 31, 2021, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and is classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at March 31, 2022.

Results from sales of securities available for sale for the three-month periods ended March 31, 2022 and March 31, 2021 are as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	8,398		$	34,237
Realized gains from sales	$	52		$	1,454
Realized losses from sales		143			514
Net realized gains (losses)	$	(91	)	$	940

At March 31, 2022 and December 31, 2021, securities available for sale with a carrying amount of $104.3 million and $104.9 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

The following tables show the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021. We believe these unrealized losses on investment securities are a result of a volatile market and fluctuations in market prices due to a rise in interest rates, which will adjust if rates decline. Management does not believe these fluctuations are a reflection of the credit quality of the investments. At March 31, 2022, the unrealized losses on available for sale securities less than twelve months related to six U.S. Treasury bonds, ten government agency bonds, forty-six government-sponsored enterprise (GSE) mortgage-backed securities, eleven asset-backed securities, forty-four state and political subdivision bonds and three corporate bonds. Unrealized losses on held to maturity securities related to one government agency bond, thirteen corporate bonds and five state and political subdivision bonds that had been in a loss position less than twelve months at March 31, 2022. At December 31, 2021, the unrealized losses on available for sale securities less than twelve months related to three U.S. Treasury bonds, fourteen government agency bonds, thirty GSE mortgage-backed securities, five asset-backed securities and thirty-four state and political subdivision bonds and three corporate bonds. There were eight corporate held to maturity bonds that had been in a loss position less than twelve months at December 31, 2021. At

-10-

March 31, 2022, the Company had ten government agency bonds, three GSE mortgage-backed securities and twelve state and political subdivision bonds that had been in a loss position for twelve months or more. The Company had two government agency bonds, one GSE mortgage-backed security and nine state and political subdivision bonds that had been in a loss position for more than twelve months at December 31, 2021.

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	31,410	$	2,021	$	—	$	—	$	31,410	$	2,021
U.S. Government agencies		14,335		383		10,944		302		25,279		685
GSE-Mortgage-backed securities and CMOs		105,231		7,084		12,421		594		117,652		7,678
Asset-backed securities		19,525		218		—		—		19,525		218
State and political subdivisions		72,790		7,371		13,566		1,989		86,356		9,360
Corporate bonds		6,000		209		—		—		6,000		209
Total securities available for sale	$	249,291	$	17,286	$	36,931	$	2,885	$	286,222	$	20,171

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies		152		3		—		—		152		3
State and political subdivisions		11,750		363		—		—		11,750		363
Corporate bonds		12,000		491		—		—		12,000		491
Total securities held to maturity	$	23,902	$	857	$	—	$	—	$	23,902	$	857

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	16,306	$	310	$	—	$	—	$	16,306	$	310
U.S. Government agencies		19,702		396		2,313		30		22,015		426
GSE-Mortgage-backed securities and CMOs		93,928		1,607		4,210		129		98,138		1,736
Asset-backed securities		8,531		60		—		—		8,531		60
State and political subdivisions		52,959		892		9,272		309		62,231		1,201
Corporate bonds		5,945		55		—		—		5,945		55
Total securities available for sale	$	197,371	$	3,320	$	15,795	$	468	$	213,166	$	3,788

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and political subdivisions		—		—		—		—		—		—
Corporate bonds		5,201		49		—		—		5,201		49
Total securities held to maturity	$	5,201	$	49	$	—	$	—	$	5,201	$	49

Declines in the fair value of the investment portfolio are believed by management to be temporary in nature. When evaluating an investment for other-than-temporary impairment, management considers, among other things, the length of time and the extent to which the fair value has been in a loss position, the financial condition of the issuer and the intent and the ability of the Company to hold the investment until the loss position is recovered.

-11-

Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality, but that the losses are temporary in nature. At March 31, 2022, the Company does not intend to sell and is not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of March 31, 2022:

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale
U.S. Treasury
Due after one but within five years		4,791		4,686		1.77	%
Due after five but within ten years		26,619		24,703		1.24	%
		31,410		29,389		1.32	%
U.S. Government agencies
Due within twelve months		4,001		4,019		1.80	%
Due after one but within five years		2,143		2,050		1.91	%
Due after five but within ten years		17,419		16,980		0.80	%
Due after ten years		18,727		18,626		1.09	%
		42,290		41,675		1.08	%
Mortgage-backed securities
Due after one but within five years		5,441		5,391		3.46	%
Due after five but within ten years		42,723		39,741		1.18	%
Due after ten years		76,585		71,944		1.35	%
		124,749		117,076		1.38	%
Asset-backed securities
Due after ten years		42,161		42,261		1.32	%
		42,161		42,261		1.32	%
State and political subdivisions
Due within twelve months		105		105		4.50	%
Due after one but within five years		1,542		1,528		2.50	%
Due after five but within ten years		6,291		5,903		1.96	%
Due after ten years		85,445		76,538		1.86	%
		93,383		84,074		1.88	%
Corporate bonds
Due within twelve months		2,000		2,002		2.98	%
Due after one but within five years		4,000		3,808		0.83	%
Due after five but within ten years		2,000		1,983		2.00	%
		8,000		7,793		1.66	%
Total securities available for sale
Due within twelve months		6,106		6,126		2.23	%
Due after one but within five years		17,917		17,463		2.15	%
Due after five but within ten years		95,052		89,310		1.19	%
Due after ten years		222,918		209,369		1.52	%
	$	341,993	$	322,268		1.47	%

-12-

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity
U. S. Government agencies
Due after one but within five years	$	152	$	149		2.80	%
		152		149		2.80	%
State and political subdivisions
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		896		902		2.26	%
Due after ten years		13,328		12,968		2.85	%
		15,570		15,221		2.75	%
Corporate Bonds
Due after five but within ten years		15,000		14,539		4.57	%
		15,000		14,539		4.57	%
Total securities held for maturity
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		1,048		1,051		2.34	%
Due after five but within ten years		15,000		14,539		4.57	%
Due after ten years		13,328		12,968		2.85	%
	$	30,722	$	29,909		3.64	%

The portion of unrealized gains and losses for the three months ended March 31, 2022 and 2021 related to equity securities still held at the reporting date is calculated as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	—		$	929
Net losses recognized during the period on equity securities	$	(9	)	$	(19	)
Less: Net losses recognized from equity securities sold during the period		—			(18	)
Unrealized losses recognized during the period on equity securities still held at the reporting date	$	(9	)	$	(1	)

-13-

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022			December 31, 2021
	(dollars in thousands)
Commercial
Commercial	$	80,123		$	73,035
SBA Paycheck Protection Program (PPP)		7,946			15,840
Real estate - commercial		154,577			150,382
Other real estate construction loans		42,713			28,275
Other loans		5,393			5,496
Noncommercial
Real estate 1-4 family construction		8,927			8,424
Real estate - residential		84,156			78,824
Home equity		52,666			51,003
Consumer loans		9,040			9,579
		445,541			420,858
Less:
Allowance for loan losses		(4,156	)		(4,026	)
Deferred loan costs (fees) net		383			(79	)
Loans held for investment, net	$	441,768		$	416,753

The Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”), was created as part of the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The Company participated in assisting its customers with applications for funds through the program.  PPP loans have a two-year term or, if approved after June 5, 2020, a five-year term and earn interest at 1%. The Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. As of March 31, 2022, the Company had funded 1,202 PPP loans representing $81.0 million. Of the loans funded, 1,187 loans totaling $80.7 million had been paid off or forgiven by the SBA as of March 31, 2022. The Consolidated Appropriations Act, 2021, or CAA, established another round of PPP loan funding for certain eligible borrowers, and the Company assisted these borrowers in obtaining a first or second draw loan. The Company had funded 879 second round PPP loans totaling $46.4 million as of March 31, 2022. Of the loans funded during the second round, 728 loans totaling $38.7 million had been paid off or forgiven by the SBA as of March 31, 2022. Remaining deferred loan fees of $393,000 and remaining deferred loan costs of $47,000 were attributable to the second round of PPP loans at March 31, 2022. It is the Company’s understanding that loans funded through the PPP are fully guaranteed by the U.S. government. Should those circumstances change, the Company could be required to establish additional allowance for loan loss through additional provision expense charged to earnings.

Note 7 – Allowance for Loan Losses

The following tables show the change in the allowance for loan losses by loan segment for the three months ended March 31, 2022 and 2021, respectively:

Commercial	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Balance, beginning of period	$	2,429	$	2,753
Provision for (recovery of) loan losses		190		(87	)
Charge-offs		—		(118	)
Recoveries		7		7
Net (charge-offs) recoveries		7		(111	)
Balance at end of period	$	2,626	$	2,555

-14-

Non-Commercial	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	1,597		$	1,649
Provision for (recovery of) loan losses		(72	)		53
Charge-offs		(6	)		(20	)
Recoveries		11			15
Net (charge-offs) recoveries		5			(5	)
Balance at end of period	$	1,530		$	1,697

Total	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	4,026		$	4,402
Provision for (recovery of) loan losses		118			(34	)
Charge-offs		(6	)		(138	)
Recoveries		18			22
Net (charge-offs) recoveries		12			(116	)
Balance at end of period	$	4,156		$	4,252

The following tables show period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at March 31, 2022 and December 31, 2021:

March 31, 2022
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	130	$	2,146	$	2,496	$	288,416	$	2,626	$	290,562
Non-Commercial		113		1,945		1,417		153,417		1,530		155,362
Total	$	243	$	4,091	$	3,913	$	441,833	$	4,156	$	445,924

December 31, 2021
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	102	$	2,573	$	2,327	$	269,876	$	2,429	$	272,449
Non-Commercial		112		2,135		1,485		146,195		1,597		148,330
Total	$	214	$	4,708	$	3,812	$	416,071	$	4,026	$	420,779

-15-

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following tables summarize the past due information of the loan portfolio by class as of the dates indicated:

March 31, 2022
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	122	$	381	$	503	$	79,620	$	80,123	$	—
SBA Paycheck Protection Program (PPP)		9		—		9		7,590		7,599		—
Real estate - commercial		127		286		413		154,321		154,734		—
Other real estate construction		—		—		—		42,713		42,713		—
Real estate 1-4 family construction		—		—		—		8,927		8,927		—
Real estate - residential		211		163		374		84,355		84,729		—
Home equity		19		31		50		52,616		52,666		—
Consumer loans		38		—		38		9,002		9,040		—
Other loans		—		—		—		5,393		5,393		—
Total	$	526	$	861	$	1,387	$	444,537	$	445,924	$	—

December 31, 2021
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	201	$	310	$	511	$	72,524	$	73,035	$	—
SBA Paycheck Protection Program (PPP)		—		—		—		15,100		15,100		—
Real estate - commercial		127		292		419		150,124		150,543		—
Other real estate construction		—		—		—		28,275		28,275		—
Real estate 1-4 family construction		—		—		—		8,424		8,424		—
Real estate - residential		559		337		896		78,428		79,324		—
Home equity		—		33		33		50,970		51,003		—
Consumer loan		27		—		27		9,552		9,579		—
Other loans		—		—		—		5,496		5,496		—
Total	$	914	$	972	$	1,886	$	418,893	$	420,779	$	—

Once a loan becomes 90 days past due, the loan is automatically transferred to a non-accrual status. The exception to this policy is credit card loans that remain in accruing status 90 days or more until they are paid current or charged off.

The Company had $0 in foreclosed residential real estate and $41,000 of residential real estate in process of foreclosure at March 31, 2022. At December 31, 2021, the Company had $0 in foreclosed residential real estate and $0 of residential real estate in process of foreclosure.

-16-

The composition of non-accrual loans by class as of March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commercial	$	381	$	310
SBA Paycheck Protection Program (PPP)		—		—
Real estate - commercial		286		292
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		163		337
Home equity		31		33
Consumer loans		—		—
Other loans		—		—
	$	861	$	972

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for loan losses. In this program, risk grades are initially assigned by the loan officers and reviewed and monitored by the lenders and credit administration. The program has eight risk grades summarized in five categories as follows:

Pass: Loans that are pass grade credits include loans that are fundamentally sound, with risk factors that are reasonable and acceptable. They generally conform to policy with only minor exceptions; any major exceptions are clearly mitigated by other economic factors.

Watch: Loans that are watch credits include loans on management’s watch list where a risk concern may be anticipated in the near future.

Substandard: Loans that are considered substandard are loans that are inadequately protected by current sound net worth and paying capacity of the obligor or the value of the collateral pledged. All non-accrual loans are graded as substandard.

Doubtful: Loans that are considered to be doubtful have all weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make the collection or liquidation in full on the basis of current existing facts, conditions and values highly questionable and improbable.

Loss: Loans that are considered to be a loss are considered to be uncollectible and of such little value that their continuance as bankable assets is not warranted.

The tables below summarize risk grades of the loan portfolio by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	77,787	$	1,955	$	381	$	—	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		—		—		7,599
Real estate - commercial		151,465		2,983		286		—		154,734
Other real estate construction		42,405		54		254		—		42,713
Real estate 1 - 4 family construction		8,927		—		—		—		8,927
Real estate - residential		82,640		1,530		559		—		84,729
Home equity		52,487		148		31		—		52,666
Consumer loans		9,001		39		—		—		9,040
Other loans		5,393		—		—		—		5,393
Total	$	437,704	$	6,709	$	1,511	$	—	$	445,924

-17-

December 31, 2021
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	70,235	$	2,490	$	310	$	—	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		—		—		15,100
Real estate - commercial		145,084		4,387		1,072		—		150,543
Other real estate construction		27,966		55		254		—		28,275
Real estate 1 - 4 family construction		8,424		—		—		—		8,424
Real estate - residential		76,430		2,157		737		—		79,324
Home equity		50,672		298		33		—		51,003
Consumer loans		9,538		41		—		—		9,579
Other loans		5,496		—		—		—		5,496
Total	$	408,945	$	9,428	$	2,406	$	—	$	420,779

Loans that are in non-accrual status or 90 days past due and still accruing are considered to be nonperforming. At both March 31, 2022 and December 31, 2021 there were no loans 90 days past due and still accruing. The following tables show the breakdown between performing and nonperforming loans by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	79,742	$	381	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		7,599
Real estate - commercial		154,448		286		154,734
Other real estate construction		42,713		—		42,713
Real estate 1 – 4 family construction		8,927		—		8,927
Real estate – residential		84,566		163		84,729
Home equity		52,635		31		52,666
Consumer loans		9,040		—		9,040
Other loans		5,393		—		5,393
Total	$	445,063	$	861	$	445,924

December 31, 2021
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	72,725	$	310	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		15,100
Real estate - commercial		150,251		292		150,543
Other real estate construction		28,275		—		28,275
Real estate 1 – 4 family construction		8,424		—		8,424
Real estate – residential		78,987		337		79,324
Home equity		50,970		33		51,003
Consumer loans		9,579		—		9,579
Other loans		5,496		—		5,496
Total	$	419,807	$	972	$	420,779

-18-

Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. If a loan is deemed impaired, a specific calculation is performed and a specific reserve is allocated, if necessary. The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at March 31, 2022 and December 31, 2021.

March 31, 2022
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	977	$	—	$	977	$	59
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,169		—		1,169		71
Other real estate construction		—		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		1,914		601		1,313		112
Home equity		31		1		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,091	$	602	$	3,489	$	243

December 31, 2021
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	960	$	—	$	960	$	31
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,613		—		1,613		71
Other real estate construction		0		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		2,103		777		1,326		111
Home equity		32		2		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,708	$	779	$	3,929	$	214

The table below shows interest income received on impaired loans by class for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	969	$	4	$	651	$	5
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,391		24		3,584		24
Other real estate construction		—		—		519		—
Real estate 1- 4 family construction		—		—		—		—
Real estate - residential		2,008		63		2,792		38
Home equity		32		—		143		1
Consumer loans		—		—		12		—
Other loans		—		—		—		—
Total	$	4,400	$	91	$	7,701	$	68

-19-

Note 8 – Troubled Debt Restructures

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. The Company offers various types of concessions when modifying loans to troubled borrowers, however, forgiveness of principal is rarely granted. Concessions offered are term extensions, capitalizing accrued interest, reducing interest rates to below current market rates or a combination of any of these. Combinations from time to time may include allowing a customer to be placed on interest-only payments. The presentations below in the “other” category are TDRs with a combination of concessions. At the time of a TDR, additional collateral or a guarantor may be requested.

Loans modified as TDRs are typically already on non-accrual status and in some cases, partial charge-offs may have already been taken against the outstanding loan balance. The Company classifies TDR loans as impaired loans and evaluates the need for an allowance for loan loss on a loan-by-loan basis. An allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less any selling costs, if the loan is deemed to be collateral dependent.

At March 31, 2022, the Company had $3.3 million in TDRs outstanding, of which one with a balance totaling $38,000 was on a non-accruing basis. Comparatively, the Company had $3.8 million of outstanding TDRs, of which one with a balance of $39,000 was on a non-accruing basis, at December 31, 2021.

There were no loans modified as TDRs during both three-month periods ended March 31, 2022 and 2021.

During the twelve months ended March 31, 2022, there was one TDR for which there was a payment default. During the twelve months ended March 31, 2021, there were no TDRs for which there was a payment default.

A default on a TDR is defined as being past due 90 days or being out of compliance with the modification agreement. As previously mentioned, the Company considers TDRs to be impaired loans and has $155,000 in the allowance for loan losses as of March 31, 2022, as a direct result of these TDRs. At March 31, 2021, there was $139,000 in the allowance for loan losses related to TDRs.

The following table presents the status of the types of loans modified as TDRs within the previous twelve months as of March 31, 2022 and 2021:

	Paid In Full				Paying as restructured				Converted to non-accrual				Foreclosure/ Default
	Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments
	(dollars in thousands)
March 31, 2022
Below market interest rate		1	$	218		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		814		6		2,339		—		—		—		—
Total		7	$	1,032		6	$	2,339		—	$	—		—	$	—
March 31, 2021
Below market interest rate		—	$	—		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		639		5		1,745		—		—		1		41
Total		6	$	639		5	$	1,745		—	$	—		1	$	41

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which was signed into law on March 27, 2020, allowed the Company to suspend the TDR classifications described above in an effort to provide relief to borrowers impacted by COVID-19. The Consolidated Appropriations Act, 2021 (CAA), which was signed into law on December 27, 2020, extended the expiration of TDR suspensions as set forth in the CARES Act until the earlier of (i) January 1, 2022 or (ii) 60 days after the national emergency terminates. The Company elected to adopt this suspension until January 1, 2022 in accordance with the CAA. Modifications of loans subsequent to March 1, 2020 for COVID-19 reasons, and that were current as of December 31, 2019, were not considered TDRs and are tracked internally as “COVID-19 Modifications”. As of March 31, 2022 and December 31, 2021, the Company had no current outstanding loans modified for COVID-19 related reasons.

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Note 9 - Leases

Operating leases in which we are the lessee are recorded as operating lease right of use (“ROU”) assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for the lease incentives. Operating lease expense, which is composed of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in the net occupancy expense in the consolidated statements of income. We do not currently have any finance leases in which we are the lessee.

Our leases relate to three office locations, two of which are branch locations, with remaining terms of four to seven years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of March 31, 2022, operating lease ROU assets were $2.0 million and the lease liability was $2.1 million, compared to ROU assets of $2.4 million and a lease liability of $2.5 million at March 31, 2021. Lease costs associated with all leases was $99,000 for both three-month periods ended March 31, 2022 and 2021.

The table below summarizes other information related to our operating leases:

	Three Months Ended March 31,
	2022			2021
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	99		$	96
Right-of-use assets obtained in exchange for new operating lease liabilities		2,015			2,354
Weighted-average remaining lease term - operating leases, in years		5.6			6.6
Weighted-average discount rate - operating leases		2.47	%		2.45	%

The table below summarizes the maturity of remaining lease liabilities:

	March 31, 2022
	(in thousands)
2022	$	301
2023		408
2024		417
2025		427
2026		387
2027 and thereafter		365
Total lease payments		2,305
Less: Interest		(164	)
Present value of lease liabilities		2,141

Note 10 - Commitments and Contingencies

The Company’s subsidiary bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements.

The Bank’s risk of loss with unfunded loans and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, real estate and time deposits with financial institutions. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Credit card commitments are unsecured.

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At March 31, 2022 and December 31, 2021, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commitments to extend credit	$	168,781	$	177,706
Credit card commitments		19,838		19,763
Standby letters of credit		8,196		8,161
Total commitments	$	196,815	$	205,630

Note 11 – Fair Value Disclosures

Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation.

ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable.

Among the Company’s assets and liabilities, investment securities available for sale and mortgage banking derivatives are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, impaired loans, loans held for sale, which are carried at the lower of cost or market, and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for U.S. Treasury and marketable equity securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the Level 1 input column. Prices for government agency securities, mortgage-backed securities, asset-backed securities and state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the Level 2 input column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the Level 3 input column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The changes in securities between Level 1 and Level 2 were related to the purchase and sale of several securities and not the transfer of securities.

Mortgage banking derivatives, which are comprised of interest rate lock commitments, or IRLCs, mortgage forward sales commitments and to-be-announced mortgage-backed securities trades (TBAs), are recorded at fair value on a recurring basis. Fair value of the IRLCs is based on projected pull-through rates and anticipated margins based on changes in market interest rates. The Company considers these to be Level 3 valuations.  The fair value of mortgage forward sales commitments and TBAs is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date and is considered to be a Level 2 input.  

The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations.

Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the

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property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values, which the Company considers Level 3 valuations.

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2.

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	29,389	$	29,389	$	—	$	—
U.S. Government agencies		41,675		—		41,675		—
GSE - Mortgage-backed securities and CMO’s		117,076		—		117,076		—
Asset-backed securities		42,261		—		42,261		—
State and political subdivisions		84,074		—		84,074		—
Corporate bonds		7,793		—		7,793		—
Equity securities		383		383		—		—
Mortgage banking derivatives		1,485		—		1,216		269
Total assets at fair value on a recurring basis	$	324,136	$	29,772	$	294,095	$	269
Mortgage banking derivatives	$	—	$	—	$	—	$	—
Total liabilities at fair value on a recurring basis	$	—	$	—	$	—	$	—

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	26,381	$	26,381	$	—	$	—
U.S. Government agencies		39,812		—		39,812		—
GSE - Mortgage-backed securities and CMO’s		120,448		—		120,448		—
Asset-backed securities		44,198		—		44,198		—
State and political subdivisions		89,477		—		89,477		—
Corporate bonds		10,021		—		10,021		—
Equity securities		392		392		—		—
Mortgage banking derivatives		1,269		—		253		1,016
Total assets at fair value on a recurring basis	$	331,998	$	26,773	$	304,209	$	1,016
Mortgage banking derivatives	$	50	$	—	$	50	$	—
Total liabilities at fair value on a recurring basis	$	50	$	—	$	50	$	—

The following table provides a rollforward for recurring Level 3 fair value measurements:

	March 31, 2022
	(dollars in thousands)
	Mortgage banking derivatives: Interest rate lock commitments			Total
Balance at December 31, 2021	$	1,016		$	1,016
Change in fair value:
Included in income from mortgage banking		(747	)		(747	)
Balance at March 31, 2022	$	269		$	269

The fair value of mortgage interest rate lock commitments at March 31, 2022 was calculated based on a notional amount of $30.9 million. Significant unobservable inputs are used to determine the fair value of these derivatives. For the three months ended March 31, 2022, such inputs included anticipated margins to be earned based on market movement from the original lock date and an

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overall projected pull-through rate of 89.1% determined by loan product, loan stage, and loan purpose. The fair value of mortgage interest rate lock commitments at December 31, 2021 was calculated based on a notional amount of $28.9 million. Significant unobservable inputs were the same as those used for the three months ended March 31, 2022 and assumed a projected pull-through rate of 82.47% at December 31, 2021. Changes in interest rates and other assumptions could significantly change these estimated values.

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value less cost to sell at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,247	$	—	$	—	$	3,247
Total assets at fair value on a nonrecurring basis	$	3,247	$	—	$	—	$	3,247

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,715	$	—	$	—	$	3,715
Total assets at fair value on a nonrecurring basis	$	3,715	$	—	$	—	$	3,715

Quantitative Information about Level 3 Fair Value Measurements

March 31, 2022
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

December 31, 2021
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

At March 31, 2022, impaired loans were being evaluated with discounted expected cash flows for performing TDRs and discounted appraisals were being used on collateral dependent loans.

Note 12 – Fair Values of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented at March 31, 2022 and December 31, 2021 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

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The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of March 31, 2022 and December 31, 2021:

March 31, 2022
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	115,710	$	115,710	$	115,710	$	—	$	—
Securities available for sale		322,268		322,268		29,389		292,879		—
Securities held to maturity		30,722		29,909		—		15,370		14,539
Equity securities		383		383		383		—		—
Loans held for investment, net		441,768		431,121		—		—		431,121
Loans held for sale		11,910		11,910		—		11,910		—
Restricted stock		1,428		1,428		1,428		—		—
Loan servicing rights		5,240		6,239		—		6,239		—
Mortgage banking derivatives		1,485		1,485		—		1,216		269
Accrued interest receivable		2,731		2,731		—		—		2,731
FINANCIAL LIABILITIES
Deposits	$	883,498		882,711		—		882,711		—
Short-term borrowings		1,344		1,344		—		1,344		—
Long-term borrowings		29,549		28,248		—		—		28,248
Mortgage banking derivatives		—		—		—		—		—
Accrued interest payable		68		68		—		—		68

December 31, 2021
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	94,410	$	94,357	$	90,924	$	3,433	$	—
Securities available for sale		330,337		330,337		—		330,337		—
Securities held to maturity		30,801		32,045		—		16,898		15,147
Equity securities		392		392		392		—		—
Loans held for investment, net		416,753		412,585		—		—		412,585
Loans held for sale		21,684		21,684		—		21,684		—
Restricted stock		921		921		921		—		—
Loan servicing rights		5,078		5,509		—		5,509		—
Mortgage banking derivatives		1,269		1,269		—		253		1,016
Accrued interest receivable		2,554		2,554		—		—		2,554
FINANCIAL LIABILITIES
Deposits	$	836,752	$	836,567	$	—	$	836,567	$	—
Short-term borrowings		1,081		1,081		—		1,081		—
Long-term borrowings		29,530		30,039		—		—		30,039
Mortgage banking derivatives		50		50		—		50		—
Accrued interest payable		7		7		—		—		7

At March 31, 2022 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 10.

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Note 13 – Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. During 2019, the effective date was extended to fiscal years beginning on or after December 15, 2022 for public entities that qualify as smaller reporting companies, per the Securities and Exchange Commission definition, which currently includes the Company. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We have entered into a contract to outsource our current model with a CECL-ready vendor.  Currently we are in the process of validating data, setting assumptions for CECL and modeling our forecast for probabilities of default. The Company plans to run the CECL model parallel to the existing allowance model beginning in the second quarter of 2022. The impact of the adoption is dependent on loan portfolio composition and credit quality at adoption date, as well as economic conditions and forecasts at that time.

In March 2022, FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, effective December 15, 2022. ASU 2022-02 eliminates the TDR accounting guidance set forth in Subtopic 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” for financial institutions that have already adopted the CECL standard. Measurement of expected losses under the CECL model already incorporates loans modified as TDRs. As such, once CECL is implemented, the TDR guidance no longer provides useful information. After implementation, an entity must apply the loan refinancing and restructuring guidance in ASC 310-20, “Receivables – Nonrefundable Fees and Other Costs,” to determine whether a modification results in a new loan or a continuation of an existing loan. Enhanced qualitative and quantitative disclosures will be required for modifications made for borrowers experiencing financial difficulty.

ASC 848, “Reference Rate Reform,” was set forth to eliminate certain reference rates and introduce new reference rates that are based on a larger, more liquid population of observable transactions that are less vulnerable to manipulation. The reference rate reform will discontinue the use of certain widely used reference rates such as the London Interbank Offered Rate, or LIBOR. In response to likely challenges arising from contract modifications due to reference rate reform, the FASB issued ASU 2020-04 in March 2020 to provide optional expedients and exceptions for applying GAAP to contract modifications. As such, modifications to debt contracts may be accounted for as a continuation of the existing contract by prospectively adjusting the effective interest rate. This amendment can be applied beginning March 12, 2020 and will sunset December 31, 2022.  The Company currently holds, but no longer issues, loan contracts that reference LIBOR.  The Company is evaluating the most effective manner in which to modify those contracts, but does not anticipate material financial impact.

From time to time the FASB issues exposure drafts of proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts.

Note 14 – Mortgage Banking Derivatives

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, otherwise known as Interest Rate Lock Commitments (IRLCs). IRLCs on mortgage loans that will be held for resale are considered to be derivatives and must be accounted for at fair value on the balance sheet. Accordingly, such commitments are recorded at fair value in the mortgage banking derivatives asset with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. Fair value is based on anticipated margins determined by market movement from the original lock date and projected pull-through rates on each loan by loan product, loan stage, and loan purpose.

During the term of the IRLC, the Company is exposed to the risk that the interest rate will change from the rate quoted to the borrower. In an effort to mitigate interest rate risk, the Company also enters into mortgage forward sales commitments on a mandatory basis for future delivery of residential mortgage loans after an interest rate lock is committed to the borrower. Mandatory commitments require that the loan must be delivered to the investor or a pair-off fee be paid. These forward commitments are recorded at fair value in the mortgage banking derivatives asset or liability, and changes in fair value are recorded to income from mortgage banking within the consolidated statement of income. The fair value of the forward commitments is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date.

The Company also enters into purchase and sale agreements of to-be-announced mortgage-backed securities trades (TBAs). A TBA trade is a contract to buy or sell mortgage-backed securities on a specific date while the underlying mortgages are not announced until just prior to settlement. These TBA trades provide an economic hedge against the effect of changes in interest rates resulting from IRLCs. TBAs are accounted for as derivatives under FASB ASC 815 when either of the following conditions exist: (i) when

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settlement of the TBA trade is not expected to occur at the next regular settlement date (which is typically the next month) or (ii) a mechanism exists to settle the contract on a net basis. As a result, these instruments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. The fair value of the TBA trades is based on the gain or loss that would occur if the Company were to pair-off the trade at the measurement date.

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of March 31, 2022 and December 31, 2021.

	Notional Amount		Fair Value
	(dollars in thousands)
Balance at March 31, 2022
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	30,933	$	269
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		50,000		1,216
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		—		—
Balance at December 31, 2021
Included in mortgage banking derivatives asset:
Interest rate lock commitments		28,939		1,016
Forward sales commitments		8,417		253
To-be-announced mortgage-backed securities trades		—		—
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		44,000		50

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Caution Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain certain forward-looking statements consisting of estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include, but are not limited to: the impact of the novel Coronavirus disease, or COVID-19, and its variants on our borrowers’ ability to meet their financial obligations to us; increases in our past due loans and provisions for loan losses that may result from COVID-19 and its broader economic effects, including labor shortages, supply chain issues, and inflation that may impact our borrowers;  declines in general economic conditions, including increased stress in the financial markets due to COVID-19; changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services. Any use of “we” or “our” in the following discussion refers to the Company on a consolidated basis.

Comparison of Financial Condition at March 31, 2022 and December 31, 2021.

During the three months ended March 31, 2022, the Company’s total assets increased $34.1 million, from $939.7 million to $973.7 million.

Cash and cash equivalents increased $21.3 million during the three months ended March 31, 2022. The increase is related to the growth in deposits.

Investment securities consist of securities available for sale and securities held to maturity. Investment securities decreased $8.1 million to $353.0 million for the three-month period ended March 31, 2022. At March 31, 2022, the Company had unrealized losses on securities available for sale of $19.7 million, compared to unrealized losses of $1.5 million at December 31, 2021. The significant decline in fair value is directly related to the increase in market interest rates at March 31, 2022 compared to December 31, 2021, as the market prepares for the anticipated increase in overnight rates by the Federal Reserve.

At March 31, 2022, equity securities declined slightly in value from $392,000 at December 31, 2021 to $383,000 as a result of the decline in value in the equity market.

Loans held for sale decreased 45.1%, or $9.8 million, as many of the loans produced near the December 31, 2021 quarter-end date were not sold on the secondary market until 2022. Loans held for investment increased from $420.8 million to $445.9 million, an increase of $25.1 million for the three-month period ended March 31, 2022. The Company experienced a net increase in all loan sectors with the exception of consumer loans, other loans and SBA PPP loans. SBA PPP loans were issued during 2020 and 2021 as a result of the Federal Government’s response to helping small businesses due to COVID-related issues. These loans are unsecured commercial loans, but are 100% guaranteed by the SBA if the loans comply with PPP requirements.

The allowance for loan losses was $4.2 million at March 31, 2022, which represented 0.93% of the total loans held for investment, compared to $4.0 million or 0.96% of the total loans held for investment at December 31, 2021. Additional discussion regarding the allowance is included in the Asset Quality section below.

Other changes in our consolidated assets are primarily related to other assets, which increased $4.6 million from $9.5 million as of December 31, 2021 to $14.1 million at March 31, 2022 as a result of the increase in deferred tax assets from the significant decline in value of the available for sale security portfolio. Additionally, restricted stock increased $507,000 for the same period mainly due to the increase in FRB stock required to be held from increased common equity.

Customer deposits, our primary funding source, experienced a $46.7 million increase during the three-month period ended March 31, 2022, increasing from $836.8 million to $883.5 million, a 5.6% increase. In addition to receipt of government grant funding by some depositors, a large portion of this increase is related to the overall growth in the number of deposit accounts and relationship sizes. As the banking subsidiary of the Company operates in a primarily rural market, many competitors have exited the markets where we remain, which has driven deposit growth in our current markets. Demand noninterest-bearing checking accounts increased $29.2 million, interest checking and money market accounts increased $13.5 million and savings deposits increased $6.2 million during the three months ended March 31, 2022. Time deposits decreased by $2.1 million during the same period as customers transitioned to liquid accounts.

Total short-term borrowings increased $263,000 for the three-month period. At March 31, 2022, the Company had $29.5 million in long-term debt outstanding, which consists solely of its junior subordinated debt securities. During the third quarter of 2019, the Company issued $10.0 million in subordinated debt securities with a final maturity date of September 30, 2029 that may be redeemed on or after September 30, 2024. This junior subordinated debt pays interest quarterly at an annual fixed rate of 5.25%. During the third

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quarter of 2021, the Company issued $12.0 million and $8.0 million of 10-year and 15-year fixed-to-floating rate subordinated debt securities, respectively. The 10-year subordinated notes mature on September 3, 2031, though redeemable on or after September 3, 2026, and initially pay interest quarterly at an annual rate of 3.5%. From and including September 3, 2026 to but excluding September 3, 2031, or up to an early redemption date, the interest rate on the 10-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month secured overnight financing rate (“SOFR”), plus 283 basis points payable quarterly in arrears. The 15-year subordinated notes mature on September 3, 2036, though redeemable on or after September 3, 2031, and initially pay interest quarterly at an annual rate of 4.0%. From and including September 3, 2031 to but excluding September 3, 2036, or up to an early redemption date, the interest rate on the 15-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month SOFR plus 292 basis points payable quarterly in arrears. The subordinated debt has been structured to qualify as and is included in the calculation of the Company’s Tier 2 capital. The Company also has a $3.0 million line of credit of which $3.0 million was available to use at March 31, 2022.

Other changes in consolidated liabilities are primarily related to increases in accruals for bonuses, donations and income taxes totaling $711,000. These increases are offset by a decline in the mortgage forward sales commitments liability. Mortgage forward sales commitments decreased $50,000 from $50,000 at December 31, 2021 to $0 at March 31, 2022, because of the rise in interest rates since year-end.  As rates rise, the value of the mandatory commitment deteriorates, and the price required to exit out of the commitment decreases.

At March 31, 2022, total shareholders’ equity was $47.2 million, a decrease of $13.6 million from December 31, 2021. Net income for the three-month period ended March 31, 2022 was $801,000. Unrealized losses on investment securities, net of tax, increased by $14.0 million as the yield curve continues to steepen. The Company repurchased 28,839 shares of common stock at a total cost of $254,000 during the first three months of 2022. The Company paid $139,000 in dividends attributable to noncontrolling interest during the first three months of 2022. See Note 3 (Noncontrolling Interest) to the Company’s Notes to Consolidated Financial Statements for additional discussion of the noncontrolling interest.

Results of Operations for the Three Months Ended March 31, 2022 and 2021.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $801,000 for the three months ended March 31, 2022, as compared to $4.6 million for the three months ended March 31, 2021, a decrease of $3.8 million. Net income available to common shareholders was $662,000, or $0.10 per common share, for the three months ended March 31, 2022, compared to $4.4 million, or $0.61 per common share, at March 31, 2021. Net income available to common shareholders is net income less dividends on the aforementioned noncontrolling interest.

Net Interest Income

Net interest income for the three months ended March 31, 2022 was $6.0 million, compared to $6.8 million for the three months ended March 31, 2021, a decrease of $777,000. During the first quarter of 2022, the average yield on our interest-earning assets decreased eighty-four basis points to 2.96% from the same period in 2021, and the average rate we paid for our interest-bearing liabilities increased five basis points to 0.32%. These changes resulted in a lower interest rate spread of 2.65% as of March 31, 2022, compared to 3.53% as of March 31, 2021. Our net interest margin was 2.74% and 3.62% for the comparable periods in 2022 and 2021, respectively.

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The following table presents average balance sheet and a net interest income analysis for the three months ended March 31, 2022 and 2021:

Average Balance Sheet and Net Interest Income Analysis

For the Three Months Ended March 31,

(dollars in thousands)
	Average Balance				Income/Expenses				Rate/Yield
	2022		2021		2022		2021		2022			2021
Interest-earning assets:
Taxable securities	$	296,892	$	193,755	$	1,015	$	826		1.39	%		1.73	%
Nontaxable securities (1)		65,181		39,490		358		253		2.80	%		3.26	%
Short-term investments		88,426		58,384		40		16		0.18	%		0.11	%
Equity Securities		392		721		5		—		5.17	%		0.00	%
Taxable loans		449,205		471,456		5,057		6,004		4.57	%		5.16	%
Non-taxable loans (1)		7,604		8,197		50		58		3.36	%		3.60	%
Total interest-earning assets		907,700		772,003		6,525		7,157		2.96	%		3.80	%
Interest-bearing liabilities:
Interest-bearing deposits		597,942		510,486		177		211		0.12	%		0.17	%
Short-term borrowed funds		1,092		1,621		1		1		0.37	%		0.25	%
Long-term debt		29,541		12,004		315		136		4.32	%		4.56	%
Total interest-bearing liabilities		628,575		524,111		493		348		0.32	%		0.27	%
Net interest spread	$	279,125	$	247,892	$	6,032	$	6,809		2.65	%		3.53	%
Net interest margin (1) (% of earning assets)										2.74	%		3.62	%

⁽¹⁾ Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 21% effective tax rate.

Provision (Recovery) and Allowance for Loan Losses

The provision for loan losses was $118,000 for the three months ended March 31, 2022, compared to a recovery of $34,000 for the same period in 2021. There were net loan recoveries of $12,000 for the three months ended March 31, 2022, as compared to net loan charge-offs of $116,000 during the same period of 2021. Refer to the Asset Quality section below for further information.

Noninterest Income

The Company generates most of its revenue from net interest income; however, diversification of our revenue sources is important as well. Total noninterest income decreased by $4.5 million for the three-month period ended March 31, 2022, as compared to the same period in 2021. The gain on sale of securities decreased $1.0 million to a loss of $91,000 at March 31, 2022 compared to a gain of $940,000 at March 31, 2021 as the Company worked to reduce the duration of the investment portfolio in an attempt to protect capital as long-term interest rates rise.

The primary factor contributing to the overall decline in noninterest income was a decrease of $3.8 million in income from mortgage loan sales. This decrease is due to the significant reduction in production, particularly mortgage refinancing activity, as interest rates have risen quickly during the first three months of 2022.

Interchange fees, or “swipe” fees, are charges that merchants pay to us and other card-issuing banks for processing electronic payment transactions. Interchange and card transaction fees consist of income from check card usage, point-of-sale income from PIN-based debit card transactions, ATM service fees, and credit card usage. A comparison of gross interchange and card transaction fees and interchange and card transaction fees net of associated network costs for the reported periods is presented in the table below:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Income from debit card transactions	$	505	$	492
Income from credit card transactions		145		114
Gross interchange and transaction fee income		650		606
Network costs - debit card		254		251
Network costs - credit card		158		136
Total	$	238	$	219

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Noninterest Expense

Noninterest expense for the three months ended March 31, 2022 decreased by $571,000 from the same period in 2021, to $7.6 million. Salaries and benefits, the largest component of noninterest expense, decreased $373,000 due to decreased commissions from reduced production in the mortgage division. As a result of production declines in the mortgage division, loan costs decreased by $137,000 to $169,000 for the three months ended March 31, 2022 and marketing and donations decreased $287,000 to $334,000 for the same time period.

Total other noninterest expense increased $115,000 for the three months ended March 31, 2022, compared to the same period in 2021. This change was due to market valuation adjustments that increased the expense associated with supplemental executive retirement plans by $135,000, included in “Other” line item below. The table below reflects the composition of other noninterest expense.

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Postage	$	64	$	46
Telephone and data lines		57		49
Office supplies and printing		24		26
Shareholder relations expense		37		33
Dues and subscriptions		76		109
Other		324		204
Total	$	582	$	467

Income Tax Expense

The Company had income tax expense of $168,000 for the three months ended March 31, 2022 at an effective tax rate of 17.3% compared to income tax expense of $1.2 million with an effective tax rate of 21.1% in the comparable 2021 period. Income taxes computed at the statutory rate are primarily affected by the state income tax expense offset by the eligible amount of interest earned on state and municipal securities, tax free municipal loans and income earned on bank-owned life insurance. For the three months ended March 31, 2022, the effective tax rate decreased due to the increase in tax-exempt security holdings.

Asset Quality

The Company’s allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. The allowance is increased by provisions charged to operations and recoveries of amounts previously charged off and is reduced by recovery of provisions and loans charged off. Management continuously evaluates the adequacy of the allowance for loan losses. In evaluating the adequacy of the allowance, management considers the following: the growth, composition and industry diversification of the portfolio; historical loan loss experience; current delinquency levels; adverse situations that may affect a borrower’s ability to repay; estimated value of any underlying collateral; prevailing economic conditions; and other relevant factors. The Company’s credit administration function, through a review process, periodically validates the accuracy of the initial risk grade assessment. In addition, as a given loan’s credit quality improves or deteriorates, the credit administration department has the responsibility to change the borrower’s risk grade accordingly. For loans determined to be impaired, the allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the underlying collateral less the selling costs. This evaluation is inherently subjective, as it requires material estimates, including the amounts and timing of future cash flows expected to be received on impaired loans, which may be susceptible to significant change. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses and may require additions for estimated losses based upon judgments different from those of management.

Management uses a risk-grading program designed to evaluate the credit risk in the loan portfolio. In this program, risk grades are initially assigned by loan officers and then reviewed and monitored by credit administration. This process includes the maintenance of an internally classified loan list that is designed to help management assess the overall quality of the loan portfolio and the adequacy of the allowance for loan losses. In establishing the appropriate classification for specific assets, management considers, among other factors, the estimated value of the underlying collateral, the borrower’s ability to repay, the borrower’s payment history, and the current delinquent status. Because of this process, certain loans are deemed to be impaired and evaluated as an impaired loan.

The portion of the Company’s allowance for loan loss model related to general reserves captures the mean loss of individual loans within the loan portfolio and adds additional loss based on economic uncertainty and specific indicators of potential issues in the market. Specifically, the Company calculates probable losses on loans by computing a probability of loss and multiplying that by a loss given default derived from historical experience. An additional calculation based on economic uncertainty is added to the probable losses, thus deriving the estimated loss scenario by FDIC call report codes. Together, these expected components, as well as

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a reserve for qualitative factors based on economic conditions determined at management’s discretion, form the basis of the allowance model. The loans that are impaired and included in the specific reserve are excluded from these calculations.

The Company assesses the probability of losses inherent in the loan portfolio using probability of default data derived from the Company’s internal historical data, representing a one-year loss horizon for each obligor. Credit scores are used within the model to determine the probability of default. The Company updates the credit scores for individuals that either have a loan, or are financially responsible for the loan, semi-annually, during the first and third quarters. During the first three months of 2022, the average effective credit score of the portfolio, excluding loans in default, increased slightly from 767 to 771. The probability of default associated with each credit score is a major driver in the allowance for loan losses.

The allowance for loan losses represents management’s best estimate of an appropriate amount to provide for probable credit risk inherent in the loan portfolio in the normal course of business. While management believes that it uses the best information available to establish the allowance for loan losses, future adjustments to the allowance may be necessary and results of operations could be adversely affected if circumstances differ from the assumptions used in making the determinations. Furthermore, while management believes it has established the allowance for loan losses in conformity with generally accepted accounting principles, there can be no assurance that banking regulators, in reviewing the Company’s portfolio, will not require an adjustment to the allowance for loan losses. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate or that increases will not be necessary, should the quality of any loans deteriorate because of the factors discussed herein. Unexpected global events, such as the unprecedented economic disruption due to COVID-19, are the type of future events that often cause material adjustments to the allowance to be necessary. Any material increase in the allowance for loan losses may adversely affect the Company’s financial condition, results of operations and the value of its securities.

At March 31, 2022, the level of our impaired loans, which includes all loans in non-accrual status, TDRs, and other loans deemed by management to be impaired, was $4.1 million, compared to $4.7 million at December 31, 2021, a net decrease of $617,000. The decrease is related to one large relationship paying off in the first quarter of 2022 and another relationship with a large pay down due to collateral sale. Total non-accrual loans, which are a component of impaired loans, decreased from $972,000 at December 31, 2021 to $861,000 at March 31, 2022. During the first three months of 2022, one additional loan totaling $18,000 was added to impaired loans; however, one loan totaling $169,000 was paid off.  We also had net pay downs of $466,000.

The allowance, expressed as a percentage of gross loans held for investment, decreased three basis points from 0.96% at December 31, 2021 to 0.93% at March 31, 2022. The collectively evaluated allowance as a percentage of collectively evaluated loans was 0.92% at December 31, 2021 and 0.89% at March 31, 2022. The decrease is attributable to continued improvement in probability of defaults of the portfolio. The individually evaluated allowance as a percentage of individually evaluated loans increased from 4.54% to 5.93% for the same periods, mainly due to one relationship with a large pay down and little reserves associated due to collateral values.

The ratio of nonperforming loans, which consists of non-accrual loans and loans past due 90 days and still accruing, to total loans decreased from 0.23% at December 31, 2021 to 0.19% at March 31, 2022, and was related to the nonaccrual relationship that was paid off in the first quarter.

Troubled debt restructured loans, included in impaired loans, totaled $3.3 million at March 31, 2022 and $3.8 million at December 31, 2021. At March 31, 2022, there was one troubled debt restructured loan in non-accrual status, which had a balance of $38,000.

Other real estate owned remained at $0 through March 31, 2022, as there were no loans foreclosed on during the first three months of 2022.

As of March 31, 2022, management believed the level of the allowance for loan losses was appropriate in light of the risk inherent in the loan portfolio.

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The following table shows the comparison of nonperforming assets at March 31, 2022 and December 31, 2021:

Nonperforming Assets

(dollars in thousands)

	March 31, 2022			December 31, 2021
Nonperforming assets:
Accruing loans past due 90 days or more	$	—		$	—
Non-accrual loans		861			972
Other real estate owned		—			—
Total nonperforming assets	$	861		$	972
Allowance for loans losses	$	4,156		$	4,026
Nonaccrual loans to total loans		0.19	%		0.23	%
Allowance for loan losses to total loans		0.93	%		0.96	%
Allowance for loan losses to nonaccrual loans		482.69	%		414.20	%

Liquidity and Capital Resources

The objective of the Company’s liquidity management policy is to ensure the availability of sufficient cash flows to meet all financial commitments and to capitalize on any opportunities for expansion. Liquidity management addresses the ability to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature and to fund new loans and investments as opportunities arise.

The Company’s primary sources of internally generated funds are principal and interest payments on loans, cash flows generated from operations and cash flow generated by investments. Growth in deposits is typically the primary source of funds for loan growth.  The Company and its subsidiary bank have multiple funding sources, in addition to deposits, that can be used to increase liquidity and provide additional financial flexibility. At March 31, 2022, these sources are the subsidiary bank’s established federal funds lines with correspondent banks aggregating $43.0 million, with available credit of $43.0 million; an established borrowing relationship with the Federal Home Loan Bank, with available credit of $95.1 million; access to borrowings from the Federal Reserve Bank discount window, with available credit of $16.4 million and the issuance of commercial paper. The Company also has a $3.0 million line of credit with TIB The Independent BankersBank, N.A. The line is secured with 100% of the outstanding common shares of the Company’s subsidiary bank. As of March 31, 2022, $3.0 million remained available for use on the line of credit. The Company has also secured long-term debt from other sources consisting of $29.5 million of junior subordinated debt at both March 31, 2022 and December 31, 2021.

Banks and bank holding companies, as regulated institutions, must meet required levels of capital. The Federal Reserve, the primary federal regulator of the Company and its subsidiary bank, has adopted minimum capital regulations or guidelines that categorize components and the level of risk associated with various types of assets.

The Company continues to maintain capital ratios that support its asset growth. The federal bank regulatory agencies have implemented regulatory capital rules known as “Basel III.” The Basel III rules require a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.50%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.00%, a minimum ratio of total capital to risk-weighted assets of 8.00%, and a minimum Tier 1 leverage ratio of 4.00%. There is also a capital conservation buffer that requires banks to hold common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees.

As of March 31, 2022, the Company’s subsidiary bank continued to exceed minimum capital standards and remained well-capitalized under the applicable rules.

The Company’s subsidiary bank has a net total of $10.6 million in outstanding Fixed Rate Noncumulative Perpetual Preferred Stock. The preferred stock qualifies as Tier 1 capital at the Bank and pays dividends at an annual rate of 5.30%. The net total of $10.6 million is presented as noncontrolling interest at the Company level and qualifies as Tier 1 capital at the Company. At March 31, 2022, the Company had $29.5 million in subordinated debt outstanding, which qualifies as Tier 2 capital at the Company level. The Company has made all interest and dividend payments in a timely manner.

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Off-Balance Sheet Arrangements

Off-balance sheet arrangements include transactions, agreements or other contractual arrangements to which an unconsolidated entity of the Company is a party and pursuant to which the Company has obligations, including an obligation to provide guarantees on behalf of an unconsolidated entity, or retains an interest in assets transferred to an unconsolidated entity. We currently have no off-balance sheet arrangements of this kind.

Derivative financial instruments include futures contracts, forward contracts, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through March 31, 2022, with the exception of mortgage banking derivatives.  See Note 14 (Mortgage Banking Derivatives) to the Company’s Notes to Consolidated Financial Statements for additional discussion of mortgage banking derivatives.

Contractual Obligations

The timing and amount of our contractual obligations has not changed materially since our 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 9, 2022.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Disclosure under this item is not required for smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act (“Exchange Act”) Rule 13a-15.

Based upon that evaluation, the principal executive officer and principal financial officer concluded that in their opinion, the Company’s disclosure controls and procedures were effective (1) to provide reasonable assurance that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) to provide reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Management of the Company has evaluated, with the participation of the Company’s principal executive officer and principal financial officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the first quarter of 2022. In connection with such evaluation, the Company has determined that there were no changes in the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company reviews its disclosure controls and procedures, which may include its internal control over financial reporting, on an ongoing basis, and may from time to time make changes aimed at enhancing their effectiveness and ensuring that the Company’s systems evolve with its business.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.

Neither the Company nor its subsidiaries, nor any of their properties are subject to any material legal proceedings. From time to time, the Company’s subsidiary bank is engaged in ordinary routine litigation incidental to its business.

Item 1A. Risk Factors.

Disclosure under this item is not required for smaller reporting companies.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table sets forth information with respect to shares of common stock repurchased by the Company during the three months ended March 31, 2022.

	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program(1)		(d) Maximum Dollar Value (in thousands) of Shares that May Yet Be Purchased Under the Plans
January 1, 2022 Through January 31, 2022		—	$	—		—	$	—
February 1, 2022 Through February 28, 2022		—		—		—	$	—
March 1, 2022 Through March 31, 2022		28,839	$	8.80		—	$	—
Total		28,839	$	8.80		—	$	—

⁽¹⁾ Trades of the Company’s common stock are quoted on the OTCQX Market from time to time. The Company also has in place a Stock Repurchase Plan that provides liquidity to its shareholders in the event a willing buyer is not available to purchase shares that are offered for sale. The Company is under no obligation to purchase shares offered; however, it will accommodate such offers as its Stock Repurchase Plan allows.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Set forth below is the exhibit index for this quarterly report:

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101	Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, in inline XBRL (eXtensible Business Reporting Language) (filed herewith)
104	Cover page interactive data file (formatted in inline XBRL and contained in Exhibit 101)

-36-

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		UWHARRIE CAPITAL CORP
		(Registrant)
Date:	May 3, 2022	By:	/s/ Roger L. Dick
		Roger L. Dick
		President and Chief Executive Officer
Date:	May 3, 2022	By:	/s/ Heather H. Almond
		Heather H. Almond
		Principal Financial Officer

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EX-31.1

Exhibit 31.1

UWHARRIE CAPITAL CORP

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Rule 13a -14(a)

I, Roger L. Dick, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of Uwharrie Capital Corp (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2022	/s/ Roger L. Dick
		Roger L. Dick
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

UWHARRIE CAPITAL CORP

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Rule 13a -14(a)

I, Heather H. Almond, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of Uwharrie Capital Corp the (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2022	/s/ Heather H. Almond
		Heather H. Almond
		Principal Financial Officer

EX-32

Exhibit 32

Certification pursuant to 18 U.S.C. 1350 as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned each hereby certifies that, to his knowledge, (i) the Form 10-Q filed by Uwharrie Capital Corp (the “Issuer”) for the quarter ended March 31, 2022, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Issuer on the dates and for the periods presented therein.

Date:	May 3, 2022	/s/ Roger L. Dick
		Roger L. Dick
		President and Chief Executive Officer
Date:	May 3, 2022	/s/ Heather H. Almond
		Heather H. Almond
		Principal Financial Officer

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	UWHARRIE CAPITAL CORP
Entity Central Index Key	0000898171
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		6,930,717
Entity File Number	000-22062
Entity Tax Identification Number	56-1814206
Entity Address, Address Line One	132 NORTH FIRST STREET
Entity Address, City or Town	ALBEMARLE
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28001
City Area Code	704
Local Phone Number	983-6181
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	NC

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 6,705	$ 5,298
Interest-earning deposits with banks	109,005	89,112
Cash and cash equivalents	115,710	94,410
Securities available for sale, at fair value	322,268	330,337
Securities held to maturity, at amortized cost (fair value $29,909 and $32,045 respectively)	30,722	30,801
Equity security, at fair value	383	392
Loans held for sale	11,910	21,684
Loans:
Loans held for investment	445,924	420,779
Less allowance for loan losses	(4,156)	(4,026)
Net loans held for investment	441,768	416,753
Premises and equipment, net	15,716	15,987
Interest receivable	2,731	2,554
Restricted stock	1,428	921
Bank-owned life insurance	9,095	9,066
Prepaid assets	1,179	968
Loan servicing assets	5,240	5,078
Mortgage banking derivatives	1,485	1,269
Other assets	14,105	9,460
Total assets	973,740	939,680
Deposits:
Demand noninterest-bearing	268,574	239,422
Interest checking and money market accounts	436,397	422,942
Savings deposits	109,535	103,341
Time deposits, $250,000 and over	21,809	23,720
Other time deposits	47,183	47,327
Total deposits	883,498	836,752
Short-term borrowed funds	1,344	1,081
Long-term debt	29,549	29,530
Mortgage banking derivatives		50
Other liabilities	12,191	11,480
Total liabilities	926,582	878,893
Off balance sheet items, commitments and contingencies (Note 10)
SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and outstanding 6,930,717 and 6,959,556, at March 31, 2022 and December 31, 2021, respectively	8,664	8,700
Additional paid-in capital	11,814	12,032
Undivided profits	31,213	30,551
Accumulated other comprehensive loss	(15,188)	(1,151)
Total Uwharrie Capital Corp shareholders’ equity	36,503	50,132
Noncontrolling interest	10,655	10,655
Total shareholders’ equity	47,158	60,787
Total liabilities and shareholders’ equity	$ 973,740	$ 939,680

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Securities held to maturity, at amortized cost, fair value	$ 29,909	$ 32,045
Common stock, par value	$ 1.25	$ 1.25
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	6,930,717	6,959,556
Common stock, shares outstanding	6,930,717	6,959,556

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Income
Loans, including fees	$ 5,107	$ 6,062
Investment securities
Investment securities, taxable	1,015	826
Investment securities, non-taxable	358	253
Equity Securities	5
Interest-earning deposits with banks and federal funds sold	40	16
Total interest income	6,525	7,157
Interest Expense
Interest checking and money market accounts	113	91
Savings deposits	18	15
Time deposits, $250,000 and over	14	29
Other time deposits	32	76
Short-term borrowed funds	1	1
Long-term debt	315	136
Total interest expense	493	348
Net interest income	6,032	6,809
Provision for (recovery of) loan losses	118	(34)
Net interest income after provision for (recovery of) loan losses	5,914	6,843
Noninterest Income
Service charges on deposit accounts	243	242
Gain (loss) on sale of securities	(91)	940
Realized/unrealized loss on equity securities	(9)	(19)
Income from mortgage banking	1,267	5,106
Supplemental executive retirement plan loss	(48)	(187)
Other income	128	176
Total noninterest income	2,629	7,107
Noninterest Expense
Salaries and employee benefits	5,016	5,389
Net occupancy expense	425	426
Equipment expense	188	172
Data processing costs	212	165
Loan costs	169	306
Professional fees and services	212	236
Marketing and donations	334	621
Electronic banking expense	111	89
Software amortization and maintenance	311	390
FDIC insurance	62	71
Supplemental executive retirement plan loss	(48)	(187)
Other noninterest expense	582	467
Total noninterest expense	7,574	8,145
Income before income taxes	969	5,805
Income taxes	168	1,222
Net income	801	4,583
Less: net income attributable to noncontrolling interest	(139)	(139)
Net income attributable to Uwharrie Capital Corp and common shareholders	$ 662	$ 4,444
Net income per common share
Basic	$ 0.10	$ 0.61
Diluted	$ 0.10	$ 0.61
Weighted average shares outstanding
Basic	6,951,961	7,262,313
Diluted	6,951,961	7,262,313
Interchange and Card Transaction Fees, Net [Member]
Noninterest Income
Noninterest income fees	$ 238	$ 219
Other Services and Commissions [Member]
Noninterest Income
Noninterest income fees	$ 901	$ 630

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 801	$ 4,583
Unrealized loss on available for sale securities	(18,322)	(3,959)
Related tax effect	4,213	937
Reclassification of (gain) loss recognized in net income	91	(940)
Related tax effect	(19)	190
Total other comprehensive loss	(14,037)	(3,772)
Comprehensive income (loss)	(13,236)	811
Less: Comprehensive income attributable to noncontrolling interest	(139)	(139)
Comprehensive income (loss) attributable to Uwharrie Capital Corp	$ (13,375)	$ 672

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Series B [Member]	Series C [Member]	Number of Common Shares Issued [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Undivided Profits [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]	Noncontrolling Interest [Member] Series B [Member]	Noncontrolling Interest [Member] Series C [Member]
Beginning balance at Dec. 31, 2020	$ 59,237				$ 8,815	$ 12,607	$ 23,000	$ 4,160	$ 10,655
Beginning balance, shares at Dec. 31, 2020				7,052,143
Net Income	4,583						4,444		139
Repurchase and retirement of common stock	(83)				(15)	(68)
Repurchase and retirement of common stock, shares				(12,201)
Other comprehensive Income(loss)	(3,772)							(3,772)
Record preferred stock dividend (noncontrolling interest)		$ (103)	$ (36)							$ (103)	$ (36)
Ending balance at Mar. 31, 2021	59,826				8,800	12,539	27,444	388	10,655
Ending balance, shares at Mar. 31, 2021				7,039,942
Beginning balance at Dec. 31, 2021	60,787				8,700	12,032	30,551	(1,151)	10,655
Beginning balance, shares at Dec. 31, 2021				6,959,556
Net Income	801						662		139
Repurchase and retirement of common stock	(254)				(36)	(218)
Repurchase and retirement of common stock, shares				(28,839)
Other comprehensive Income(loss)	(14,037)							(14,037)
Record preferred stock dividend (noncontrolling interest)		$ (103)	$ (36)							$ (103)	$ (36)
Ending balance at Mar. 31, 2022	$ 47,158				$ 8,664	$ 11,814	$ 31,213	$ (15,188)	$ 10,655
Ending balance, shares at Mar. 31, 2022				6,930,717

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 801	$ 4,583
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization	287	271
Right of use asset amortization	85	85
Provision for (recovery of) loan losses	118	(34)
(Gain) loss on sale of securities available for sale	91	(940)
Gain on sale of mortgage loans	386	3,041
Realized/unrealized loss on equity securities	9	19
Net amortization of premium on investment securities available for sale	733	174
Net amortization of premium on investment securities held to maturity	37	39
Amortization of loan servicing rights	336	383
Originations and purchases of mortgage loans for sale	(41,909)	(108,979)
Proceeds from sales of mortgage loans for sale	51,297	98,313
Mortgage banking derivatives	(266)	(1,046)
Loan servicing assets	(493)	(938)
Accrued interest receivable	(177)	179
Prepaid assets	(211)	(72)
Cash surrender value of life insurance	(29)	(32)
Miscellaneous other assets	(284)	2,056
Accrued interest payable	61	(5)
Miscellaneous other liabilities	650	2,412
Net cash provided (used) by operating activities	11,522	(491)
Cash flows from investing activities
Proceeds from sales of investment securities available for sale	8,398	34,237
Proceeds from sale of equity securities		929
Proceeds from maturities, calls and paydowns of securities available for sale	9,007	4,505
Proceeds from maturities, calls and paydowns of securities held to maturity	42	366
Purchase of investment securities available for sale	(28,391)	(41,445)
Purchase of investments in other assets	(172)
Proceeds from sales of investments in other assets		1,125
Net change in restricted stock	(507)	245
Net (increase) decrease in loans	(25,133)	7,184
Purchase of premises and equipment	(82)	(72)
Net cash provided (used) by investing activities	(36,838)	7,074
Cash flows from financing activities
Net increase in deposit accounts	46,746	953
Net increase in federal funds purchased and other short-term borrowings	263	628
Proceeds from long-term borrowings		250
Repurchase of common stock, net	(254)	(83)
Dividends paid on preferred stock (noncontrolling interest)	(139)	(139)
Net cash provided by financing activities	46,616	1,609
Increase in cash and cash equivalents	21,300	8,192
Cash and cash equivalents, beginning of period	94,410	88,868
Cash and cash equivalents, end of period	115,710	97,060
Supplemental disclosures of cash flow information
Interest paid	432	328
Supplemental schedule of non-cash activities
Net change in fair value of securities available for sale, net of tax	$ (14,037)	$ 3,772

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Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management continues to evaluate the impact of COVID-19, the disease caused by the novel Coronavirus, as well as its evolving variants, beyond the current impacts as of March 31, 2022, which are discussed throughout the accompanying notes of this report. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements.

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 9, 2022. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses.

Accounting Changes, Reclassifications and Restatements

Certain amounts in the 2021 financial statements have been reclassified to conform to the 2022 presentation. These reclassifications did not have an impact on net income or shareholders’ equity.

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Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Comprehensive Income (Loss)

Note 2 – Comprehensive Income (Loss)

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

The following table presents the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022			2021
	(dollars in thousands)
Beginning balance	$	(1,151	)	$	4,160
Other comprehensive income (loss) before reclassifications,    net of $4,213 and $937 tax effect, respectively		(14,109	)		(3,022	)
Amounts reclassified from accumulated other    comprehensive income, net of ($19) and $190 tax effect, respectively		72			(750	)
Net current-period other comprehensive income (loss)		(14,037	)		(3,772	)
Ending balance	$	(15,188	)	$	388

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Noncontrolling Interest

3 Months Ended

Mar. 31, 2022

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Note 3 – Noncontrolling Interest

In 2013, the Company’s subsidiary bank issued a total of $10.7 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B and Series C. The preferred stock qualifies as Tier 1 capital at the bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income.

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Per Share Data

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Per Share Data

Note 4 – Per Share Data

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at March 31, 2022 or December 31, 2021.

Basic and diluted net income per common share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding.  

The weighted average number of common shares outstanding was 6,951,961 for the three-month period ended March 31, 2022 compared to 7,262,313 for the three-month period ended March 31, 2021.

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Investment and Equity Securities

3 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

Investment and Equity Securities

Note 5 – Investment and Equity Securities

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	31,410	$	—	$	2,021	$	29,389
U.S. Government agencies		42,290		70		685		41,675
GSE - Mortgage-backed securities and CMOs		124,749		5		7,678		117,076
Asset-backed securities		42,161		318		218		42,261
State and political subdivisions		93,383		51		9,360		84,074
Corporate bonds		8,000		2		209		7,793
Total securities available for sale	$	341,993	$	446	$	20,171	$	322,268

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	152	$	—	$	3	$	149
State and political subdivisions		15,570		14		363		15,221
Corporate bonds		15,000		30		491		14,539
Total securities held to maturity	$	30,722	$	44	$	857	$	29,909

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	26,675	$	16	$	310	$	26,381
U.S. Government agencies		40,066		172		426		39,812
GSE - Mortgage-backed securities and CMOs		121,994		190		1,736		120,448
Asset-backed securities		43,383		875		60		44,198
State and political subdivisions		89,786		892		1,201		89,477
Corporate bonds		9,928		148		55		10,021
Total securities available for sale	$	331,832	$	2,293	$	3,788	$	330,337

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	175	$	1	$	—	$	176
State and political subdivisions		15,626		1,096		—		16,722
Corporate bonds		15,000		196		49		15,147
Total securities held to maturity	$	30,801	$	1,293	$	49	$	32,045

The Company owned Federal Reserve Bank (FRB) stock reported at cost of $959,000 and $509,000 at March 31, 2022 and December 31, 2021, respectively. The Company owned Federal Home Loan Bank (FHLB) stock reported at cost of $469,000 and $411,000 at March 31, 2022 and December 31, 2021, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and is classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at March 31, 2022.

Results from sales of securities available for sale for the three-month periods ended March 31, 2022 and March 31, 2021 are as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	8,398		$	34,237
Realized gains from sales	$	52		$	1,454
Realized losses from sales		143			514
Net realized gains (losses)	$	(91	)	$	940

At March 31, 2022 and December 31, 2021, securities available for sale with a carrying amount of $104.3 million and $104.9 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

The following tables show the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021. We believe these unrealized losses on investment securities are a result of a volatile market and fluctuations in market prices due to a rise in interest rates, which will adjust if rates decline. Management does not believe these fluctuations are a reflection of the credit quality of the investments. At March 31, 2022, the unrealized losses on available for sale securities less than twelve months related to six U.S. Treasury bonds, ten government agency bonds, forty-six government-sponsored enterprise (GSE) mortgage-backed securities, eleven asset-backed securities, forty-four state and political subdivision bonds and three corporate bonds. Unrealized losses on held to maturity securities related to one government agency bond, thirteen corporate bonds and five state and political subdivision bonds that had been in a loss position less than twelve months at March 31, 2022. At December 31, 2021, the unrealized losses on available for sale securities less than twelve months related to three U.S. Treasury bonds, fourteen government agency bonds, thirty GSE mortgage-backed securities, five asset-backed securities and thirty-four state and political subdivision bonds and three corporate bonds. There were eight corporate held to maturity bonds that had been in a loss position less than twelve months at December 31, 2021. At

March 31, 2022, the Company had ten government agency bonds, three GSE mortgage-backed securities and twelve state and political subdivision bonds that had been in a loss position for twelve months or more. The Company had two government agency bonds, one GSE mortgage-backed security and nine state and political subdivision bonds that had been in a loss position for more than twelve months at December 31, 2021.

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	31,410	$	2,021	$	—	$	—	$	31,410	$	2,021
U.S. Government agencies		14,335		383		10,944		302		25,279		685
GSE-Mortgage-backed securities and CMOs		105,231		7,084		12,421		594		117,652		7,678
Asset-backed securities		19,525		218		—		—		19,525		218
State and political subdivisions		72,790		7,371		13,566		1,989		86,356		9,360
Corporate bonds		6,000		209		—		—		6,000		209
Total securities available for sale	$	249,291	$	17,286	$	36,931	$	2,885	$	286,222	$	20,171

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies		152		3		—		—		152		3
State and political subdivisions		11,750		363		—		—		11,750		363
Corporate bonds		12,000		491		—		—		12,000		491
Total securities held to maturity	$	23,902	$	857	$	—	$	—	$	23,902	$	857

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	16,306	$	310	$	—	$	—	$	16,306	$	310
U.S. Government agencies		19,702		396		2,313		30		22,015		426
GSE-Mortgage-backed securities and CMOs		93,928		1,607		4,210		129		98,138		1,736
Asset-backed securities		8,531		60		—		—		8,531		60
State and political subdivisions		52,959		892		9,272		309		62,231		1,201
Corporate bonds		5,945		55		—		—		5,945		55
Total securities available for sale	$	197,371	$	3,320	$	15,795	$	468	$	213,166	$	3,788

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and political subdivisions		—		—		—		—		—		—
Corporate bonds		5,201		49		—		—		5,201		49
Total securities held to maturity	$	5,201	$	49	$	—	$	—	$	5,201	$	49

Declines in the fair value of the investment portfolio are believed by management to be temporary in nature. When evaluating an investment for other-than-temporary impairment, management considers, among other things, the length of time and the extent to which the fair value has been in a loss position, the financial condition of the issuer and the intent and the ability of the Company to hold the investment until the loss position is recovered.

Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality, but that the losses are temporary in nature. At March 31, 2022, the Company does not intend to sell and is not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of March 31, 2022:

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale
U.S. Treasury
Due after one but within five years		4,791		4,686		1.77	%
Due after five but within ten years		26,619		24,703		1.24	%
		31,410		29,389		1.32	%
U.S. Government agencies
Due within twelve months		4,001		4,019		1.80	%
Due after one but within five years		2,143		2,050		1.91	%
Due after five but within ten years		17,419		16,980		0.80	%
Due after ten years		18,727		18,626		1.09	%
		42,290		41,675		1.08	%
Mortgage-backed securities
Due after one but within five years		5,441		5,391		3.46	%
Due after five but within ten years		42,723		39,741		1.18	%
Due after ten years		76,585		71,944		1.35	%
		124,749		117,076		1.38	%
Asset-backed securities
Due after ten years		42,161		42,261		1.32	%
		42,161		42,261		1.32	%
State and political subdivisions
Due within twelve months		105		105		4.50	%
Due after one but within five years		1,542		1,528		2.50	%
Due after five but within ten years		6,291		5,903		1.96	%
Due after ten years		85,445		76,538		1.86	%
		93,383		84,074		1.88	%
Corporate bonds
Due within twelve months		2,000		2,002		2.98	%
Due after one but within five years		4,000		3,808		0.83	%
Due after five but within ten years		2,000		1,983		2.00	%
		8,000		7,793		1.66	%
Total securities available for sale
Due within twelve months		6,106		6,126		2.23	%
Due after one but within five years		17,917		17,463		2.15	%
Due after five but within ten years		95,052		89,310		1.19	%
Due after ten years		222,918		209,369		1.52	%
	$	341,993	$	322,268		1.47	%

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity
U. S. Government agencies
Due after one but within five years	$	152	$	149		2.80	%
		152		149		2.80	%
State and political subdivisions
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		896		902		2.26	%
Due after ten years		13,328		12,968		2.85	%
		15,570		15,221		2.75	%
Corporate Bonds
Due after five but within ten years		15,000		14,539		4.57	%
		15,000		14,539		4.57	%
Total securities held for maturity
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		1,048		1,051		2.34	%
Due after five but within ten years		15,000		14,539		4.57	%
Due after ten years		13,328		12,968		2.85	%
	$	30,722	$	29,909		3.64	%

The portion of unrealized gains and losses for the three months ended March 31, 2022 and 2021 related to equity securities still held at the reporting date is calculated as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	—		$	929
Net losses recognized during the period on equity securities	$	(9	)	$	(19	)
Less: Net losses recognized from equity securities sold during the period		—			(18	)
Unrealized losses recognized during the period on equity securities still held at the reporting date	$	(9	)	$	(1	)

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Loans Held for Investment

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans Held for Investment

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022			December 31, 2021
	(dollars in thousands)
Commercial
Commercial	$	80,123		$	73,035
SBA Paycheck Protection Program (PPP)		7,946			15,840
Real estate - commercial		154,577			150,382
Other real estate construction loans		42,713			28,275
Other loans		5,393			5,496
Noncommercial
Real estate 1-4 family construction		8,927			8,424
Real estate - residential		84,156			78,824
Home equity		52,666			51,003
Consumer loans		9,040			9,579
		445,541			420,858
Less:
Allowance for loan losses		(4,156	)		(4,026	)
Deferred loan costs (fees) net		383			(79	)
Loans held for investment, net	$	441,768		$	416,753

The Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”), was created as part of the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The Company participated in assisting its customers with applications for funds through the program.  PPP loans have a two-year term or, if approved after June 5, 2020, a five-year term and earn interest at 1%. The Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. As of March 31, 2022, the Company had funded 1,202 PPP loans representing $81.0 million. Of the loans funded, 1,187 loans totaling $80.7 million had been paid off or forgiven by the SBA as of March 31, 2022. The Consolidated Appropriations Act, 2021, or CAA, established another round of PPP loan funding for certain eligible borrowers, and the Company assisted these borrowers in obtaining a first or second draw loan. The Company had funded 879 second round PPP loans totaling $46.4 million as of March 31, 2022. Of the loans funded during the second round, 728 loans totaling $38.7 million had been paid off or forgiven by the SBA as of March 31, 2022. Remaining deferred loan fees of $393,000 and remaining deferred loan costs of $47,000 were attributable to the second round of PPP loans at March 31, 2022. It is the Company’s understanding that loans funded through the PPP are fully guaranteed by the U.S. government. Should those circumstances change, the Company could be required to establish additional allowance for loan loss through additional provision expense charged to earnings.

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Allowance for Loan Losses

Note 7 – Allowance for Loan Losses

The following tables show the change in the allowance for loan losses by loan segment for the three months ended March 31, 2022 and 2021, respectively:

Commercial	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Balance, beginning of period	$	2,429	$	2,753
Provision for (recovery of) loan losses		190		(87	)
Charge-offs		—		(118	)
Recoveries		7		7
Net (charge-offs) recoveries		7		(111	)
Balance at end of period	$	2,626	$	2,555

Non-Commercial	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	1,597		$	1,649
Provision for (recovery of) loan losses		(72	)		53
Charge-offs		(6	)		(20	)
Recoveries		11			15
Net (charge-offs) recoveries		5			(5	)
Balance at end of period	$	1,530		$	1,697

Total	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	4,026		$	4,402
Provision for (recovery of) loan losses		118			(34	)
Charge-offs		(6	)		(138	)
Recoveries		18			22
Net (charge-offs) recoveries		12			(116	)
Balance at end of period	$	4,156		$	4,252

The following tables show period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at March 31, 2022 and December 31, 2021:

March 31, 2022
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	130	$	2,146	$	2,496	$	288,416	$	2,626	$	290,562
Non-Commercial		113		1,945		1,417		153,417		1,530		155,362
Total	$	243	$	4,091	$	3,913	$	441,833	$	4,156	$	445,924

December 31, 2021
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	102	$	2,573	$	2,327	$	269,876	$	2,429	$	272,449
Non-Commercial		112		2,135		1,485		146,195		1,597		148,330
Total	$	214	$	4,708	$	3,812	$	416,071	$	4,026	$	420,779

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following tables summarize the past due information of the loan portfolio by class as of the dates indicated:

March 31, 2022
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	122	$	381	$	503	$	79,620	$	80,123	$	—
SBA Paycheck Protection Program (PPP)		9		—		9		7,590		7,599		—
Real estate - commercial		127		286		413		154,321		154,734		—
Other real estate construction		—		—		—		42,713		42,713		—
Real estate 1-4 family construction		—		—		—		8,927		8,927		—
Real estate - residential		211		163		374		84,355		84,729		—
Home equity		19		31		50		52,616		52,666		—
Consumer loans		38		—		38		9,002		9,040		—
Other loans		—		—		—		5,393		5,393		—
Total	$	526	$	861	$	1,387	$	444,537	$	445,924	$	—

December 31, 2021
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	201	$	310	$	511	$	72,524	$	73,035	$	—
SBA Paycheck Protection Program (PPP)		—		—		—		15,100		15,100		—
Real estate - commercial		127		292		419		150,124		150,543		—
Other real estate construction		—		—		—		28,275		28,275		—
Real estate 1-4 family construction		—		—		—		8,424		8,424		—
Real estate - residential		559		337		896		78,428		79,324		—
Home equity		—		33		33		50,970		51,003		—
Consumer loan		27		—		27		9,552		9,579		—
Other loans		—		—		—		5,496		5,496		—
Total	$	914	$	972	$	1,886	$	418,893	$	420,779	$	—

Once a loan becomes 90 days past due, the loan is automatically transferred to a non-accrual status. The exception to this policy is credit card loans that remain in accruing status 90 days or more until they are paid current or charged off.

The Company had $0 in foreclosed residential real estate and $41,000 of residential real estate in process of foreclosure at March 31, 2022. At December 31, 2021, the Company had $0 in foreclosed residential real estate and $0 of residential real estate in process of foreclosure.

The composition of non-accrual loans by class as of March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commercial	$	381	$	310
SBA Paycheck Protection Program (PPP)		—		—
Real estate - commercial		286		292
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		163		337
Home equity		31		33
Consumer loans		—		—
Other loans		—		—
	$	861	$	972

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for loan losses. In this program, risk grades are initially assigned by the loan officers and reviewed and monitored by the lenders and credit administration. The program has eight risk grades summarized in five categories as follows:

Pass: Loans that are pass grade credits include loans that are fundamentally sound, with risk factors that are reasonable and acceptable. They generally conform to policy with only minor exceptions; any major exceptions are clearly mitigated by other economic factors.

Watch: Loans that are watch credits include loans on management’s watch list where a risk concern may be anticipated in the near future.

Substandard: Loans that are considered substandard are loans that are inadequately protected by current sound net worth and paying capacity of the obligor or the value of the collateral pledged. All non-accrual loans are graded as substandard.

Doubtful: Loans that are considered to be doubtful have all weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make the collection or liquidation in full on the basis of current existing facts, conditions and values highly questionable and improbable.

Loss: Loans that are considered to be a loss are considered to be uncollectible and of such little value that their continuance as bankable assets is not warranted.

The tables below summarize risk grades of the loan portfolio by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	77,787	$	1,955	$	381	$	—	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		—		—		7,599
Real estate - commercial		151,465		2,983		286		—		154,734
Other real estate construction		42,405		54		254		—		42,713
Real estate 1 - 4 family construction		8,927		—		—		—		8,927
Real estate - residential		82,640		1,530		559		—		84,729
Home equity		52,487		148		31		—		52,666
Consumer loans		9,001		39		—		—		9,040
Other loans		5,393		—		—		—		5,393
Total	$	437,704	$	6,709	$	1,511	$	—	$	445,924

December 31, 2021
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	70,235	$	2,490	$	310	$	—	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		—		—		15,100
Real estate - commercial		145,084		4,387		1,072		—		150,543
Other real estate construction		27,966		55		254		—		28,275
Real estate 1 - 4 family construction		8,424		—		—		—		8,424
Real estate - residential		76,430		2,157		737		—		79,324
Home equity		50,672		298		33		—		51,003
Consumer loans		9,538		41		—		—		9,579
Other loans		5,496		—		—		—		5,496
Total	$	408,945	$	9,428	$	2,406	$	—	$	420,779

Loans that are in non-accrual status or 90 days past due and still accruing are considered to be nonperforming. At both March 31, 2022 and December 31, 2021 there were no loans 90 days past due and still accruing. The following tables show the breakdown between performing and nonperforming loans by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	79,742	$	381	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		7,599
Real estate - commercial		154,448		286		154,734
Other real estate construction		42,713		—		42,713
Real estate 1 – 4 family construction		8,927		—		8,927
Real estate – residential		84,566		163		84,729
Home equity		52,635		31		52,666
Consumer loans		9,040		—		9,040
Other loans		5,393		—		5,393
Total	$	445,063	$	861	$	445,924

December 31, 2021
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	72,725	$	310	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		15,100
Real estate - commercial		150,251		292		150,543
Other real estate construction		28,275		—		28,275
Real estate 1 – 4 family construction		8,424		—		8,424
Real estate – residential		78,987		337		79,324
Home equity		50,970		33		51,003
Consumer loans		9,579		—		9,579
Other loans		5,496		—		5,496
Total	$	419,807	$	972	$	420,779

Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. If a loan is deemed impaired, a specific calculation is performed and a specific reserve is allocated, if necessary. The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at March 31, 2022 and December 31, 2021.

March 31, 2022
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	977	$	—	$	977	$	59
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,169		—		1,169		71
Other real estate construction		—		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		1,914		601		1,313		112
Home equity		31		1		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,091	$	602	$	3,489	$	243

December 31, 2021
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	960	$	—	$	960	$	31
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,613		—		1,613		71
Other real estate construction		0		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		2,103		777		1,326		111
Home equity		32		2		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,708	$	779	$	3,929	$	214

The table below shows interest income received on impaired loans by class for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	969	$	4	$	651	$	5
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,391		24		3,584		24
Other real estate construction		—		—		519		—
Real estate 1- 4 family construction		—		—		—		—
Real estate - residential		2,008		63		2,792		38
Home equity		32		—		143		1
Consumer loans		—		—		12		—
Other loans		—		—		—		—
Total	$	4,400	$	91	$	7,701	$	68

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Troubled Debt Restructures

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Troubled Debt Restructures

Note 8 – Troubled Debt Restructures

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. The Company offers various types of concessions when modifying loans to troubled borrowers, however, forgiveness of principal is rarely granted. Concessions offered are term extensions, capitalizing accrued interest, reducing interest rates to below current market rates or a combination of any of these. Combinations from time to time may include allowing a customer to be placed on interest-only payments. The presentations below in the “other” category are TDRs with a combination of concessions. At the time of a TDR, additional collateral or a guarantor may be requested.

Loans modified as TDRs are typically already on non-accrual status and in some cases, partial charge-offs may have already been taken against the outstanding loan balance. The Company classifies TDR loans as impaired loans and evaluates the need for an allowance for loan loss on a loan-by-loan basis. An allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less any selling costs, if the loan is deemed to be collateral dependent.

At March 31, 2022, the Company had $3.3 million in TDRs outstanding, of which one with a balance totaling $38,000 was on a non-accruing basis. Comparatively, the Company had $3.8 million of outstanding TDRs, of which one with a balance of $39,000 was on a non-accruing basis, at December 31, 2021.

There were no loans modified as TDRs during both three-month periods ended March 31, 2022 and 2021.

During the twelve months ended March 31, 2022, there was one TDR for which there was a payment default. During the twelve months ended March 31, 2021, there were no TDRs for which there was a payment default.

A default on a TDR is defined as being past due 90 days or being out of compliance with the modification agreement. As previously mentioned, the Company considers TDRs to be impaired loans and has $155,000 in the allowance for loan losses as of March 31, 2022, as a direct result of these TDRs. At March 31, 2021, there was $139,000 in the allowance for loan losses related to TDRs.

The following table presents the status of the types of loans modified as TDRs within the previous twelve months as of March 31, 2022 and 2021:

	Paid In Full				Paying as restructured				Converted to non-accrual				Foreclosure/ Default
	Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments
	(dollars in thousands)
March 31, 2022
Below market interest rate		1	$	218		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		814		6		2,339		—		—		—		—
Total		7	$	1,032		6	$	2,339		—	$	—		—	$	—
March 31, 2021
Below market interest rate		—	$	—		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		639		5		1,745		—		—		1		41
Total		6	$	639		5	$	1,745		—	$	—		1	$	41

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which was signed into law on March 27, 2020, allowed the Company to suspend the TDR classifications described above in an effort to provide relief to borrowers impacted by COVID-19. The Consolidated Appropriations Act, 2021 (CAA), which was signed into law on December 27, 2020, extended the expiration of TDR suspensions as set forth in the CARES Act until the earlier of (i) January 1, 2022 or (ii) 60 days after the national emergency terminates. The Company elected to adopt this suspension until January 1, 2022 in accordance with the CAA. Modifications of loans subsequent to March 1, 2020 for COVID-19 reasons, and that were current as of December 31, 2019, were not considered TDRs and are tracked internally as “COVID-19 Modifications”. As of March 31, 2022 and December 31, 2021, the Company had no current outstanding loans modified for COVID-19 related reasons.

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Leases

3 Months Ended

Mar. 31, 2022

Lessee Disclosure [Abstract]

Leases

Note 9 - Leases

Operating leases in which we are the lessee are recorded as operating lease right of use (“ROU”) assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for the lease incentives. Operating lease expense, which is composed of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in the net occupancy expense in the consolidated statements of income. We do not currently have any finance leases in which we are the lessee.

Our leases relate to three office locations, two of which are branch locations, with remaining terms of four to seven years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of March 31, 2022, operating lease ROU assets were $2.0 million and the lease liability was $2.1 million, compared to ROU assets of $2.4 million and a lease liability of $2.5 million at March 31, 2021. Lease costs associated with all leases was $99,000 for both three-month periods ended March 31, 2022 and 2021.

The table below summarizes other information related to our operating leases:

	Three Months Ended March 31,
	2022			2021
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	99		$	96
Right-of-use assets obtained in exchange for new operating lease liabilities		2,015			2,354
Weighted-average remaining lease term - operating leases, in years		5.6			6.6
Weighted-average discount rate - operating leases		2.47	%		2.45	%

The table below summarizes the maturity of remaining lease liabilities:

	March 31, 2022
	(in thousands)
2022	$	301
2023		408
2024		417
2025		427
2026		387
2027 and thereafter		365
Total lease payments		2,305
Less: Interest		(164	)
Present value of lease liabilities		2,141

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10 - Commitments and Contingencies

The Company’s subsidiary bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements.

The Bank’s risk of loss with unfunded loans and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, real estate and time deposits with financial institutions. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Credit card commitments are unsecured.

At March 31, 2022 and December 31, 2021, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commitments to extend credit	$	168,781	$	177,706
Credit card commitments		19,838		19,763
Standby letters of credit		8,196		8,161
Total commitments	$	196,815	$	205,630

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Note 11 – Fair Value Disclosures

Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation.

ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable.

Among the Company’s assets and liabilities, investment securities available for sale and mortgage banking derivatives are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, impaired loans, loans held for sale, which are carried at the lower of cost or market, and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for U.S. Treasury and marketable equity securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the Level 1 input column. Prices for government agency securities, mortgage-backed securities, asset-backed securities and state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the Level 2 input column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the Level 3 input column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The changes in securities between Level 1 and Level 2 were related to the purchase and sale of several securities and not the transfer of securities.

Mortgage banking derivatives, which are comprised of interest rate lock commitments, or IRLCs, mortgage forward sales commitments and to-be-announced mortgage-backed securities trades (TBAs), are recorded at fair value on a recurring basis. Fair value of the IRLCs is based on projected pull-through rates and anticipated margins based on changes in market interest rates. The Company considers these to be Level 3 valuations.  The fair value of mortgage forward sales commitments and TBAs is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date and is considered to be a Level 2 input.  

The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations.

Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the

property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values, which the Company considers Level 3 valuations.

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2.

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	29,389	$	29,389	$	—	$	—
U.S. Government agencies		41,675		—		41,675		—
GSE - Mortgage-backed securities and CMO’s		117,076		—		117,076		—
Asset-backed securities		42,261		—		42,261		—
State and political subdivisions		84,074		—		84,074		—
Corporate bonds		7,793		—		7,793		—
Equity securities		383		383		—		—
Mortgage banking derivatives		1,485		—		1,216		269
Total assets at fair value on a recurring basis	$	324,136	$	29,772	$	294,095	$	269
Mortgage banking derivatives	$	—	$	—	$	—	$	—
Total liabilities at fair value on a recurring basis	$	—	$	—	$	—	$	—

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	26,381	$	26,381	$	—	$	—
U.S. Government agencies		39,812		—		39,812		—
GSE - Mortgage-backed securities and CMO’s		120,448		—		120,448		—
Asset-backed securities		44,198		—		44,198		—
State and political subdivisions		89,477		—		89,477		—
Corporate bonds		10,021		—		10,021		—
Equity securities		392		392		—		—
Mortgage banking derivatives		1,269		—		253		1,016
Total assets at fair value on a recurring basis	$	331,998	$	26,773	$	304,209	$	1,016
Mortgage banking derivatives	$	50	$	—	$	50	$	—
Total liabilities at fair value on a recurring basis	$	50	$	—	$	50	$	—

The following table provides a rollforward for recurring Level 3 fair value measurements:

	March 31, 2022
	(dollars in thousands)
	Mortgage banking derivatives: Interest rate lock commitments			Total
Balance at December 31, 2021	$	1,016		$	1,016
Change in fair value:
Included in income from mortgage banking		(747	)		(747	)
Balance at March 31, 2022	$	269		$	269

The fair value of mortgage interest rate lock commitments at March 31, 2022 was calculated based on a notional amount of $30.9 million. Significant unobservable inputs are used to determine the fair value of these derivatives. For the three months ended March 31, 2022, such inputs included anticipated margins to be earned based on market movement from the original lock date and an

overall projected pull-through rate of 89.1% determined by loan product, loan stage, and loan purpose. The fair value of mortgage interest rate lock commitments at December 31, 2021 was calculated based on a notional amount of $28.9 million. Significant unobservable inputs were the same as those used for the three months ended March 31, 2022 and assumed a projected pull-through rate of 82.47% at December 31, 2021. Changes in interest rates and other assumptions could significantly change these estimated values.

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value less cost to sell at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,247	$	—	$	—	$	3,247
Total assets at fair value on a nonrecurring basis	$	3,247	$	—	$	—	$	3,247

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,715	$	—	$	—	$	3,715
Total assets at fair value on a nonrecurring basis	$	3,715	$	—	$	—	$	3,715

Quantitative Information about Level 3 Fair Value Measurements

March 31, 2022
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

December 31, 2021
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

At March 31, 2022, impaired loans were being evaluated with discounted expected cash flows for performing TDRs and discounted appraisals were being used on collateral dependent loans.

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Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2022

Investments All Other Investments [Abstract]

Fair Values of Financial Instruments

Note 12 – Fair Values of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented at March 31, 2022 and December 31, 2021 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of March 31, 2022 and December 31, 2021:

March 31, 2022
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	115,710	$	115,710	$	115,710	$	—	$	—
Securities available for sale		322,268		322,268		29,389		292,879		—
Securities held to maturity		30,722		29,909		—		15,370		14,539
Equity securities		383		383		383		—		—
Loans held for investment, net		441,768		431,121		—		—		431,121
Loans held for sale		11,910		11,910		—		11,910		—
Restricted stock		1,428		1,428		1,428		—		—
Loan servicing rights		5,240		6,239		—		6,239		—
Mortgage banking derivatives		1,485		1,485		—		1,216		269
Accrued interest receivable		2,731		2,731		—		—		2,731
FINANCIAL LIABILITIES
Deposits	$	883,498		882,711		—		882,711		—
Short-term borrowings		1,344		1,344		—		1,344		—
Long-term borrowings		29,549		28,248		—		—		28,248
Mortgage banking derivatives		—		—		—		—		—
Accrued interest payable		68		68		—		—		68

December 31, 2021
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	94,410	$	94,357	$	90,924	$	3,433	$	—
Securities available for sale		330,337		330,337		—		330,337		—
Securities held to maturity		30,801		32,045		—		16,898		15,147
Equity securities		392		392		392		—		—
Loans held for investment, net		416,753		412,585		—		—		412,585
Loans held for sale		21,684		21,684		—		21,684		—
Restricted stock		921		921		921		—		—
Loan servicing rights		5,078		5,509		—		5,509		—
Mortgage banking derivatives		1,269		1,269		—		253		1,016
Accrued interest receivable		2,554		2,554		—		—		2,554
FINANCIAL LIABILITIES
Deposits	$	836,752	$	836,567	$	—	$	836,567	$	—
Short-term borrowings		1,081		1,081		—		1,081		—
Long-term borrowings		29,530		30,039		—		—		30,039
Mortgage banking derivatives		50		50		—		50		—
Accrued interest payable		7		7		—		—		7

At March 31, 2022 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 10.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2022

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 13 – Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. During 2019, the effective date was extended to fiscal years beginning on or after December 15, 2022 for public entities that qualify as smaller reporting companies, per the Securities and Exchange Commission definition, which currently includes the Company. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We have entered into a contract to outsource our current model with a CECL-ready vendor.  Currently we are in the process of validating data, setting assumptions for CECL and modeling our forecast for probabilities of default. The Company plans to run the CECL model parallel to the existing allowance model beginning in the second quarter of 2022. The impact of the adoption is dependent on loan portfolio composition and credit quality at adoption date, as well as economic conditions and forecasts at that time.

In March 2022, FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, effective December 15, 2022. ASU 2022-02 eliminates the TDR accounting guidance set forth in Subtopic 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” for financial institutions that have already adopted the CECL standard. Measurement of expected losses under the CECL model already incorporates loans modified as TDRs. As such, once CECL is implemented, the TDR guidance no longer provides useful information. After implementation, an entity must apply the loan refinancing and restructuring guidance in ASC 310-20, “Receivables – Nonrefundable Fees and Other Costs,” to determine whether a modification results in a new loan or a continuation of an existing loan. Enhanced qualitative and quantitative disclosures will be required for modifications made for borrowers experiencing financial difficulty.

ASC 848, “Reference Rate Reform,” was set forth to eliminate certain reference rates and introduce new reference rates that are based on a larger, more liquid population of observable transactions that are less vulnerable to manipulation. The reference rate reform will discontinue the use of certain widely used reference rates such as the London Interbank Offered Rate, or LIBOR. In response to likely challenges arising from contract modifications due to reference rate reform, the FASB issued ASU 2020-04 in March 2020 to provide optional expedients and exceptions for applying GAAP to contract modifications. As such, modifications to debt contracts may be accounted for as a continuation of the existing contract by prospectively adjusting the effective interest rate. This amendment can be applied beginning March 12, 2020 and will sunset December 31, 2022.  The Company currently holds, but no longer issues, loan contracts that reference LIBOR.  The Company is evaluating the most effective manner in which to modify those contracts, but does not anticipate material financial impact.

From time to time the FASB issues exposure drafts of proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts.

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Mortgage Banking Derivatives

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Mortgage Banking Derivatives

Note 14 – Mortgage Banking Derivatives

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, otherwise known as Interest Rate Lock Commitments (IRLCs). IRLCs on mortgage loans that will be held for resale are considered to be derivatives and must be accounted for at fair value on the balance sheet. Accordingly, such commitments are recorded at fair value in the mortgage banking derivatives asset with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. Fair value is based on anticipated margins determined by market movement from the original lock date and projected pull-through rates on each loan by loan product, loan stage, and loan purpose.

During the term of the IRLC, the Company is exposed to the risk that the interest rate will change from the rate quoted to the borrower. In an effort to mitigate interest rate risk, the Company also enters into mortgage forward sales commitments on a mandatory basis for future delivery of residential mortgage loans after an interest rate lock is committed to the borrower. Mandatory commitments require that the loan must be delivered to the investor or a pair-off fee be paid. These forward commitments are recorded at fair value in the mortgage banking derivatives asset or liability, and changes in fair value are recorded to income from mortgage banking within the consolidated statement of income. The fair value of the forward commitments is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date.

The Company also enters into purchase and sale agreements of to-be-announced mortgage-backed securities trades (TBAs). A TBA trade is a contract to buy or sell mortgage-backed securities on a specific date while the underlying mortgages are not announced until just prior to settlement. These TBA trades provide an economic hedge against the effect of changes in interest rates resulting from IRLCs. TBAs are accounted for as derivatives under FASB ASC 815 when either of the following conditions exist: (i) when

settlement of the TBA trade is not expected to occur at the next regular settlement date (which is typically the next month) or (ii) a mechanism exists to settle the contract on a net basis. As a result, these instruments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. The fair value of the TBA trades is based on the gain or loss that would occur if the Company were to pair-off the trade at the measurement date.

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of March 31, 2022 and December 31, 2021.

	Notional Amount		Fair Value
	(dollars in thousands)
Balance at March 31, 2022
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	30,933	$	269
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		50,000		1,216
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		—		—
Balance at December 31, 2021
Included in mortgage banking derivatives asset:
Interest rate lock commitments		28,939		1,016
Forward sales commitments		8,417		253
To-be-announced mortgage-backed securities trades		—		—
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		44,000		50

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management continues to evaluate the impact of COVID-19, the disease caused by the novel Coronavirus, as well as its evolving variants, beyond the current impacts as of March 31, 2022, which are discussed throughout the accompanying notes of this report. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements.

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 9, 2022. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses.

Accounting Changes, Reclassifications and Restatements

Accounting Changes, Reclassifications and Restatements

Certain amounts in the 2021 financial statements have been reclassified to conform to the 2022 presentation. These reclassifications did not have an impact on net income or shareholders’ equity.

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Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (loss)

The following table presents the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022			2021
	(dollars in thousands)
Beginning balance	$	(1,151	)	$	4,160
Other comprehensive income (loss) before reclassifications,    net of $4,213 and $937 tax effect, respectively		(14,109	)		(3,022	)
Amounts reclassified from accumulated other    comprehensive income, net of ($19) and $190 tax effect, respectively		72			(750	)
Net current-period other comprehensive income (loss)		(14,037	)		(3,772	)
Ending balance	$	(15,188	)	$	388

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Investment and Equity Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

Carrying Amounts and Fair Values of Securities Available for Sale and Held to Maturity

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	31,410	$	—	$	2,021	$	29,389
U.S. Government agencies		42,290		70		685		41,675
GSE - Mortgage-backed securities and CMOs		124,749		5		7,678		117,076
Asset-backed securities		42,161		318		218		42,261
State and political subdivisions		93,383		51		9,360		84,074
Corporate bonds		8,000		2		209		7,793
Total securities available for sale	$	341,993	$	446	$	20,171	$	322,268

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	152	$	—	$	3	$	149
State and political subdivisions		15,570		14		363		15,221
Corporate bonds		15,000		30		491		14,539
Total securities held to maturity	$	30,722	$	44	$	857	$	29,909

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale
U.S. Treasury	$	26,675	$	16	$	310	$	26,381
U.S. Government agencies		40,066		172		426		39,812
GSE - Mortgage-backed securities and CMOs		121,994		190		1,736		120,448
Asset-backed securities		43,383		875		60		44,198
State and political subdivisions		89,786		892		1,201		89,477
Corporate bonds		9,928		148		55		10,021
Total securities available for sale	$	331,832	$	2,293	$	3,788	$	330,337

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities held to maturity
U.S. Government agencies	$	175	$	1	$	—	$	176
State and political subdivisions		15,626		1,096		—		16,722
Corporate bonds		15,000		196		49		15,147
Total securities held to maturity	$	30,801	$	1,293	$	49	$	32,045

Sales of Securities Available for Sale

Results from sales of securities available for sale for the three-month periods ended March 31, 2022 and March 31, 2021 are as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	8,398		$	34,237
Realized gains from sales	$	52		$	1,454
Realized losses from sales		143			514
Net realized gains (losses)	$	(91	)	$	940

Gross Unrealized Losses and Fair Value of Investments

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	31,410	$	2,021	$	—	$	—	$	31,410	$	2,021
U.S. Government agencies		14,335		383		10,944		302		25,279		685
GSE-Mortgage-backed securities and CMOs		105,231		7,084		12,421		594		117,652		7,678
Asset-backed securities		19,525		218		—		—		19,525		218
State and political subdivisions		72,790		7,371		13,566		1,989		86,356		9,360
Corporate bonds		6,000		209		—		—		6,000		209
Total securities available for sale	$	249,291	$	17,286	$	36,931	$	2,885	$	286,222	$	20,171

	Less than 12 Months				12 Months or More				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies		152		3		—		—		152		3
State and political subdivisions		11,750		363		—		—		11,750		363
Corporate bonds		12,000		491		—		—		12,000		491
Total securities held to maturity	$	23,902	$	857	$	—	$	—	$	23,902	$	857

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	16,306	$	310	$	—	$	—	$	16,306	$	310
U.S. Government agencies		19,702		396		2,313		30		22,015		426
GSE-Mortgage-backed securities and CMOs		93,928		1,607		4,210		129		98,138		1,736
Asset-backed securities		8,531		60		—		—		8,531		60
State and political subdivisions		52,959		892		9,272		309		62,231		1,201
Corporate bonds		5,945		55		—		—		5,945		55
Total securities available for sale	$	197,371	$	3,320	$	15,795	$	468	$	213,166	$	3,788

	Less than 12 Months				12 Months or More				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities held to maturity temporary impairment
U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and political subdivisions		—		—		—		—		—		—
Corporate bonds		5,201		49		—		—		5,201		49
Total securities held to maturity	$	5,201	$	49	$	—	$	—	$	5,201	$	49

Amortized Cost and Fair Value of Available for Sale Securities Portfolio

The following tables show contractual maturities of the investment portfolio as of March 31, 2022:

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale
U.S. Treasury
Due after one but within five years		4,791		4,686		1.77	%
Due after five but within ten years		26,619		24,703		1.24	%
		31,410		29,389		1.32	%
U.S. Government agencies
Due within twelve months		4,001		4,019		1.80	%
Due after one but within five years		2,143		2,050		1.91	%
Due after five but within ten years		17,419		16,980		0.80	%
Due after ten years		18,727		18,626		1.09	%
		42,290		41,675		1.08	%
Mortgage-backed securities
Due after one but within five years		5,441		5,391		3.46	%
Due after five but within ten years		42,723		39,741		1.18	%
Due after ten years		76,585		71,944		1.35	%
		124,749		117,076		1.38	%
Asset-backed securities
Due after ten years		42,161		42,261		1.32	%
		42,161		42,261		1.32	%
State and political subdivisions
Due within twelve months		105		105		4.50	%
Due after one but within five years		1,542		1,528		2.50	%
Due after five but within ten years		6,291		5,903		1.96	%
Due after ten years		85,445		76,538		1.86	%
		93,383		84,074		1.88	%
Corporate bonds
Due within twelve months		2,000		2,002		2.98	%
Due after one but within five years		4,000		3,808		0.83	%
Due after five but within ten years		2,000		1,983		2.00	%
		8,000		7,793		1.66	%
Total securities available for sale
Due within twelve months		6,106		6,126		2.23	%
Due after one but within five years		17,917		17,463		2.15	%
Due after five but within ten years		95,052		89,310		1.19	%
Due after ten years		222,918		209,369		1.52	%
	$	341,993	$	322,268		1.47	%

Amortized Cost and Fair Value of Held to Maturity Securities Portfolio

	March 31, 2022
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity
U. S. Government agencies
Due after one but within five years	$	152	$	149		2.80	%
		152		149		2.80	%
State and political subdivisions
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		896		902		2.26	%
Due after ten years		13,328		12,968		2.85	%
		15,570		15,221		2.75	%
Corporate Bonds
Due after five but within ten years		15,000		14,539		4.57	%
		15,000		14,539		4.57	%
Total securities held for maturity
Due within twelve months		1,346		1,351		2.08	%
Due after one but within five years		1,048		1,051		2.34	%
Due after five but within ten years		15,000		14,539		4.57	%
Due after ten years		13,328		12,968		2.85	%
	$	30,722	$	29,909		3.64	%

Unrealized Gains and Losses Related to Equity Securities

The portion of unrealized gains and losses for the three months ended March 31, 2022 and 2021 related to equity securities still held at the reporting date is calculated as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Gross proceeds from sales	$	—		$	929
Net losses recognized during the period on equity securities	$	(9	)	$	(19	)
Less: Net losses recognized from equity securities sold during the period		—			(18	)
Unrealized losses recognized during the period on equity securities still held at the reporting date	$	(9	)	$	(1	)

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Loans Held for Investment (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Composition of Net Loans Held for Investment by Class

The composition of net loans held for investment by class as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022			December 31, 2021
	(dollars in thousands)
Commercial
Commercial	$	80,123		$	73,035
SBA Paycheck Protection Program (PPP)		7,946			15,840
Real estate - commercial		154,577			150,382
Other real estate construction loans		42,713			28,275
Other loans		5,393			5,496
Noncommercial
Real estate 1-4 family construction		8,927			8,424
Real estate - residential		84,156			78,824
Home equity		52,666			51,003
Consumer loans		9,040			9,579
		445,541			420,858
Less:
Allowance for loan losses		(4,156	)		(4,026	)
Deferred loan costs (fees) net		383			(79	)
Loans held for investment, net	$	441,768		$	416,753

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Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Changes in Allowance for Loan Losses

The following tables show the change in the allowance for loan losses by loan segment for the three months ended March 31, 2022 and 2021, respectively:

Commercial	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Balance, beginning of period	$	2,429	$	2,753
Provision for (recovery of) loan losses		190		(87	)
Charge-offs		—		(118	)
Recoveries		7		7
Net (charge-offs) recoveries		7		(111	)
Balance at end of period	$	2,626	$	2,555

Non-Commercial	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	1,597		$	1,649
Provision for (recovery of) loan losses		(72	)		53
Charge-offs		(6	)		(20	)
Recoveries		11			15
Net (charge-offs) recoveries		5			(5	)
Balance at end of period	$	1,530		$	1,697

Total	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Balance, beginning of period	$	4,026		$	4,402
Provision for (recovery of) loan losses		118			(34	)
Charge-offs		(6	)		(138	)
Recoveries		18			22
Net (charge-offs) recoveries		12			(116	)
Balance at end of period	$	4,156		$	4,252

Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment

The following tables show period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at March 31, 2022 and December 31, 2021:

March 31, 2022
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	130	$	2,146	$	2,496	$	288,416	$	2,626	$	290,562
Non-Commercial		113		1,945		1,417		153,417		1,530		155,362
Total	$	243	$	4,091	$	3,913	$	441,833	$	4,156	$	445,924

December 31, 2021
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	102	$	2,573	$	2,327	$	269,876	$	2,429	$	272,449
Non-Commercial		112		2,135		1,485		146,195		1,597		148,330
Total	$	214	$	4,708	$	3,812	$	416,071	$	4,026	$	420,779

Past Due Information of Loan Portfolio by Class

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following tables summarize the past due information of the loan portfolio by class as of the dates indicated:

March 31, 2022
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	122	$	381	$	503	$	79,620	$	80,123	$	—
SBA Paycheck Protection Program (PPP)		9		—		9		7,590		7,599		—
Real estate - commercial		127		286		413		154,321		154,734		—
Other real estate construction		—		—		—		42,713		42,713		—
Real estate 1-4 family construction		—		—		—		8,927		8,927		—
Real estate - residential		211		163		374		84,355		84,729		—
Home equity		19		31		50		52,616		52,666		—
Consumer loans		38		—		38		9,002		9,040		—
Other loans		—		—		—		5,393		5,393		—
Total	$	526	$	861	$	1,387	$	444,537	$	445,924	$	—

December 31, 2021
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and and Non-accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	201	$	310	$	511	$	72,524	$	73,035	$	—
SBA Paycheck Protection Program (PPP)		—		—		—		15,100		15,100		—
Real estate - commercial		127		292		419		150,124		150,543		—
Other real estate construction		—		—		—		28,275		28,275		—
Real estate 1-4 family construction		—		—		—		8,424		8,424		—
Real estate - residential		559		337		896		78,428		79,324		—
Home equity		—		33		33		50,970		51,003		—
Consumer loan		27		—		27		9,552		9,579		—
Other loans		—		—		—		5,496		5,496		—
Total	$	914	$	972	$	1,886	$	418,893	$	420,779	$	—

Composition of Nonaccrual Loans by Class

The composition of non-accrual loans by class as of March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commercial	$	381	$	310
SBA Paycheck Protection Program (PPP)		—		—
Real estate - commercial		286		292
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		163		337
Home equity		31		33
Consumer loans		—		—
Other loans		—		—
	$	861	$	972

Summary of Risk Grades of Portfolio by Class

The tables below summarize risk grades of the loan portfolio by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	77,787	$	1,955	$	381	$	—	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		—		—		7,599
Real estate - commercial		151,465		2,983		286		—		154,734
Other real estate construction		42,405		54		254		—		42,713
Real estate 1 - 4 family construction		8,927		—		—		—		8,927
Real estate - residential		82,640		1,530		559		—		84,729
Home equity		52,487		148		31		—		52,666
Consumer loans		9,001		39		—		—		9,040
Other loans		5,393		—		—		—		5,393
Total	$	437,704	$	6,709	$	1,511	$	—	$	445,924

December 31, 2021
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	70,235	$	2,490	$	310	$	—	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		—		—		15,100
Real estate - commercial		145,084		4,387		1,072		—		150,543
Other real estate construction		27,966		55		254		—		28,275
Real estate 1 - 4 family construction		8,424		—		—		—		8,424
Real estate - residential		76,430		2,157		737		—		79,324
Home equity		50,672		298		33		—		51,003
Consumer loans		9,538		41		—		—		9,579
Other loans		5,496		—		—		—		5,496
Total	$	408,945	$	9,428	$	2,406	$	—	$	420,779

Summary of Performing and Nonperforming Loans by Class

The following tables show the breakdown between performing and nonperforming loans by class at March 31, 2022 and December 31, 2021:

March 31, 2022
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	79,742	$	381	$	80,123
SBA Paycheck Protection Program (PPP)		7,599		—		7,599
Real estate - commercial		154,448		286		154,734
Other real estate construction		42,713		—		42,713
Real estate 1 – 4 family construction		8,927		—		8,927
Real estate – residential		84,566		163		84,729
Home equity		52,635		31		52,666
Consumer loans		9,040		—		9,040
Other loans		5,393		—		5,393
Total	$	445,063	$	861	$	445,924

December 31, 2021
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	72,725	$	310	$	73,035
SBA Paycheck Protection Program (PPP)		15,100		—		15,100
Real estate - commercial		150,251		292		150,543
Other real estate construction		28,275		—		28,275
Real estate 1 – 4 family construction		8,424		—		8,424
Real estate – residential		78,987		337		79,324
Home equity		50,970		33		51,003
Consumer loans		9,579		—		9,579
Other loans		5,496		—		5,496
Total	$	419,807	$	972	$	420,779

Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class

The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at March 31, 2022 and December 31, 2021.

March 31, 2022
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	977	$	—	$	977	$	59
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,169		—		1,169		71
Other real estate construction		—		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		1,914		601		1,313		112
Home equity		31		1		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,091	$	602	$	3,489	$	243

December 31, 2021
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance
	(dollars in thousands)
Commercial	$	960	$	—	$	960	$	31
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,613		—		1,613		71
Other real estate construction		0		—		—		—
Real estate 1 - 4 family construction		—		—		—		—
Real estate - residential		2,103		777		1,326		111
Home equity		32		2		30		1
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	4,708	$	779	$	3,929	$	214

The table below shows interest income received on impaired loans by class for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	969	$	4	$	651	$	5
SBA Paycheck Protection Program (PPP)		—		—		—		—
Real estate - commercial		1,391		24		3,584		24
Other real estate construction		—		—		519		—
Real estate 1- 4 family construction		—		—		—		—
Real estate - residential		2,008		63		2,792		38
Home equity		32		—		143		1
Consumer loans		—		—		12		—
Other loans		—		—		—		—
Total	$	4,400	$	91	$	7,701	$	68

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Troubled Debt Restructures (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Status of Types of Debt Restructuring

The following table presents the status of the types of loans modified as TDRs within the previous twelve months as of March 31, 2022 and 2021:

	Paid In Full				Paying as restructured				Converted to non-accrual				Foreclosure/ Default
	Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments		Number of Loans		Recorded Investments
	(dollars in thousands)
March 31, 2022
Below market interest rate		1	$	218		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		814		6		2,339		—		—		—		—
Total		7	$	1,032		6	$	2,339		—	$	—		—	$	—
March 31, 2021
Below market interest rate		—	$	—		—	$	—		—	$	—		—	$	—
Extended payment Terms		—		—		—		—		—		—		—		—
Forgiveness of Principal/Other		6		639		5		1,745		—		—		1		41
Total		6	$	639		5	$	1,745		—	$	—		1	$	41

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Lessee Disclosure [Abstract]

Summary of Other Information Related to Operating Leases

The table below summarizes other information related to our operating leases:

	Three Months Ended March 31,
	2022			2021
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	99		$	96
Right-of-use assets obtained in exchange for new operating lease liabilities		2,015			2,354
Weighted-average remaining lease term - operating leases, in years		5.6			6.6
Weighted-average discount rate - operating leases		2.47	%		2.45	%

Summary of the Maturity of Remaining Lease Liabilities

The table below summarizes the maturity of remaining lease liabilities:

	March 31, 2022
	(in thousands)
2022	$	301
2023		408
2024		417
2025		427
2026		387
2027 and thereafter		365
Total lease payments		2,305
Less: Interest		(164	)
Present value of lease liabilities		2,141

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk

At March 31, 2022 and December 31, 2021, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	March 31, 2022		December 31, 2021
	(dollars in thousands)
Commitments to extend credit	$	168,781	$	177,706
Credit card commitments		19,838		19,763
Standby letters of credit		8,196		8,161
Total commitments	$	196,815	$	205,630

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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Information for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	29,389	$	29,389	$	—	$	—
U.S. Government agencies		41,675		—		41,675		—
GSE - Mortgage-backed securities and CMO’s		117,076		—		117,076		—
Asset-backed securities		42,261		—		42,261		—
State and political subdivisions		84,074		—		84,074		—
Corporate bonds		7,793		—		7,793		—
Equity securities		383		383		—		—
Mortgage banking derivatives		1,485		—		1,216		269
Total assets at fair value on a recurring basis	$	324,136	$	29,772	$	294,095	$	269
Mortgage banking derivatives	$	—	$	—	$	—	$	—
Total liabilities at fair value on a recurring basis	$	—	$	—	$	—	$	—

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	26,381	$	26,381	$	—	$	—
U.S. Government agencies		39,812		—		39,812		—
GSE - Mortgage-backed securities and CMO’s		120,448		—		120,448		—
Asset-backed securities		44,198		—		44,198		—
State and political subdivisions		89,477		—		89,477		—
Corporate bonds		10,021		—		10,021		—
Equity securities		392		392		—		—
Mortgage banking derivatives		1,269		—		253		1,016
Total assets at fair value on a recurring basis	$	331,998	$	26,773	$	304,209	$	1,016
Mortgage banking derivatives	$	50	$	—	$	50	$	—
Total liabilities at fair value on a recurring basis	$	50	$	—	$	50	$	—

Schedule of Reconciliation for Recurring Level 3 Fair Value Measurements

The following table provides a rollforward for recurring Level 3 fair value measurements:

	March 31, 2022
	(dollars in thousands)
	Mortgage banking derivatives: Interest rate lock commitments			Total
Balance at December 31, 2021	$	1,016		$	1,016
Change in fair value:
Included in income from mortgage banking		(747	)		(747	)
Balance at March 31, 2022	$	269		$	269

Assets Measured at Fair Value on Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are included in the table below as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,247	$	—	$	—	$	3,247
Total assets at fair value on a nonrecurring basis	$	3,247	$	—	$	—	$	3,247

	December 31, 2021
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,715	$	—	$	—	$	3,715
Total assets at fair value on a nonrecurring basis	$	3,715	$	—	$	—	$	3,715

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

March 31, 2022
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

December 31, 2021
	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%

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Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Investments All Other Investments [Abstract]

Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments

The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of March 31, 2022 and December 31, 2021:

March 31, 2022
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	115,710	$	115,710	$	115,710	$	—	$	—
Securities available for sale		322,268		322,268		29,389		292,879		—
Securities held to maturity		30,722		29,909		—		15,370		14,539
Equity securities		383		383		383		—		—
Loans held for investment, net		441,768		431,121		—		—		431,121
Loans held for sale		11,910		11,910		—		11,910		—
Restricted stock		1,428		1,428		1,428		—		—
Loan servicing rights		5,240		6,239		—		6,239		—
Mortgage banking derivatives		1,485		1,485		—		1,216		269
Accrued interest receivable		2,731		2,731		—		—		2,731
FINANCIAL LIABILITIES
Deposits	$	883,498		882,711		—		882,711		—
Short-term borrowings		1,344		1,344		—		1,344		—
Long-term borrowings		29,549		28,248		—		—		28,248
Mortgage banking derivatives		—		—		—		—		—
Accrued interest payable		68		68		—		—		68

December 31, 2021
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	94,410	$	94,357	$	90,924	$	3,433	$	—
Securities available for sale		330,337		330,337		—		330,337		—
Securities held to maturity		30,801		32,045		—		16,898		15,147
Equity securities		392		392		392		—		—
Loans held for investment, net		416,753		412,585		—		—		412,585
Loans held for sale		21,684		21,684		—		21,684		—
Restricted stock		921		921		921		—		—
Loan servicing rights		5,078		5,509		—		5,509		—
Mortgage banking derivatives		1,269		1,269		—		253		1,016
Accrued interest receivable		2,554		2,554		—		—		2,554
FINANCIAL LIABILITIES
Deposits	$	836,752	$	836,567	$	—	$	836,567	$	—
Short-term borrowings		1,081		1,081		—		1,081		—
Long-term borrowings		29,530		30,039		—		—		30,039
Mortgage banking derivatives		50		50		—		50		—
Accrued interest payable		7		7		—		—		7

XML

Mortgage Banking Derivatives (Tables)

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Summary of Notional Amount and Fair Value of Mortgage Banking Derivatives

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of March 31, 2022 and December 31, 2021.

	Notional Amount		Fair Value
	(dollars in thousands)
Balance at March 31, 2022
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	30,933	$	269
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		50,000		1,216
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		—		—
Balance at December 31, 2021
Included in mortgage banking derivatives asset:
Interest rate lock commitments		28,939		1,016
Forward sales commitments		8,417		253
To-be-announced mortgage-backed securities trades		—		—
Included in mortgage banking derivatives liability:
Forward sales commitments		—		—
To-be-announced mortgage-backed securities trades		44,000		50

XML

Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ 60,787	$ 59,237
Total other comprehensive loss	(14,037)	(3,772)
Ending balance	47,158	59,826
Unrealized Holding Gains on Available-for-Sale Securities (Net) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(1,151)	4,160
Other comprehensive income (loss) before reclassifications, net of $4,213 and $937 tax effect, respectively	(14,109)	(3,022)
Amounts reclassified from accumulated other comprehensive income, net of ($19) and $190 tax effect, respectively	72	(750)
Total other comprehensive loss	(14,037)	(3,772)
Ending balance	$ (15,188)	$ 388

XML

Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Tax effect on amount reclassified from accumulated other comprehensive income	$ (19)	$ 190
Unrealized Holding Gains on Available-for-Sale Securities (Net) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Tax effect on Other Comprehensive income (loss) before reclassifications	4,213	937
Tax effect on amount reclassified from accumulated other comprehensive income	$ (19)	$ 190

XML

Noncontrolling Interest - Additional Information (Detail) - Preferred Stock Series B and Series C [Member] - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Jan. 31, 2013
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Preferred stock issued		$ 10.7
Dividends rate		5.30%
Voting rights	The preferred stock has no voting rights

XML

Per Share Data - Additional Information (Detail) - shares	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Earnings Per Share [Abstract]
Stock options outstanding	0		0
Basic	6,951,961	7,262,313

XML

Investment and Equity Securities - Carrying Amounts and Fair Values of Securities Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	$ 341,993	$ 331,832
Available-for-sale Securities, Gross Unrealized Gains	446	2,293
Available-for-sale Securities, Gross Unrealized Losses	20,171	3,788
Available-for-sale Securities, Fair Value	322,268	330,337
Held-to-maturity Securities, Amortized Cost	30,722	30,801
Held-to-maturity Securities, Gross Unrealized Gains	44	1,293
Held-to-maturity Securities, Gross Unrealized Losses	857	49
Held-to-maturity Securities, Fair Value	29,909	32,045
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	31,410	26,675
Available-for-sale Securities, Gross Unrealized Gains		16
Available-for-sale Securities, Gross Unrealized Losses	2,021	310
Available-for-sale Securities, Fair Value	29,389	26,381
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	42,290	40,066
Available-for-sale Securities, Gross Unrealized Gains	70	172
Available-for-sale Securities, Gross Unrealized Losses	685	426
Available-for-sale Securities, Fair Value	41,675	39,812
Held-to-maturity Securities, Amortized Cost	152	175
Held-to-maturity Securities, Gross Unrealized Gains		1
Held-to-maturity Securities, Gross Unrealized Losses	3
Held-to-maturity Securities, Fair Value	149	176
GSE - Mortgage-backed Securities and CMO’s [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	124,749	121,994
Available-for-sale Securities, Gross Unrealized Gains	5	190
Available-for-sale Securities, Gross Unrealized Losses	7,678	1,736
Available-for-sale Securities, Fair Value	117,076	120,448
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	42,161	43,383
Available-for-sale Securities, Gross Unrealized Gains	318	875
Available-for-sale Securities, Gross Unrealized Losses	218	60
Available-for-sale Securities, Fair Value	42,261	44,198
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	93,383	89,786
Available-for-sale Securities, Gross Unrealized Gains	51	892
Available-for-sale Securities, Gross Unrealized Losses	9,360	1,201
Available-for-sale Securities, Fair Value	84,074	89,477
Held-to-maturity Securities, Amortized Cost	15,570	15,626
Held-to-maturity Securities, Gross Unrealized Gains	14	1,096
Held-to-maturity Securities, Gross Unrealized Losses	363
Held-to-maturity Securities, Fair Value	15,221	16,722
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	8,000	9,928
Available-for-sale Securities, Gross Unrealized Gains	2	148
Available-for-sale Securities, Gross Unrealized Losses	209	55
Available-for-sale Securities, Fair Value	7,793	10,021
Held-to-maturity Securities, Amortized Cost	15,000	15,000
Held-to-maturity Securities, Gross Unrealized Gains	30	196
Held-to-maturity Securities, Gross Unrealized Losses	491	49
Held-to-maturity Securities, Fair Value	$ 14,539	$ 15,147

XML

Investment and Equity Securities - Additional Information (Detail)	Mar. 31, 2022 USD ($) Security	Dec. 31, 2021 USD ($) Security
Schedule of Available-for-sale Securities [Line Items]
Federal Reserve stock owned by Company | $	$ 959,000	$ 509,000
Federal Home Loan Bank stock (FHLB) | $	469,000	411,000
Securities available for sale pledged as collateral on public deposits | $	$ 104,300,000	$ 104,900,000
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	6	3
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	10	14
Number of available for sale securities related to unrealized losses more than twelve months	10	2
Number of held to maturity securities related to unrealized losses less than twelve months	1
GSE - Mortgage-backed Securities and CMO’s [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	46	30
Number of available for sale securities related to unrealized losses more than twelve months	3	1
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	11	5
U S States And Political [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	44	34
Number of available for sale securities related to unrealized losses more than twelve months	12	9
Number of held to maturity securities related to unrealized losses less than twelve months	5
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities related to unrealized losses less than twelve months	3	3
Number of held to maturity securities related to unrealized losses less than twelve months	13	8

XML

Investment and Equity Securities - Sales of Securities Available for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments Debt And Equity Securities [Abstract]
Gross proceeds from sales	$ 8,398	$ 34,237
Realized gains from sales	52	1,454
Realized losses from sales	143	514
Net realized gains (losses)	$ (91)	$ 940

XML

Investment and Equity Securities - Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	$ 249,291	$ 197,371
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	17,286	3,320
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	36,931	15,795
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	2,885	468
Available-for-sale Securities, Gross unrealized losses, Fair Value	286,222	213,166
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	20,171	3,788
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	31,410	16,306
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	2,021	310
Available-for-sale Securities, Gross unrealized losses, Fair Value	31,410	16,306
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	2,021	310
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	14,335	19,702
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	383	396
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	10,944	2,313
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	302	30
Available-for-sale Securities, Gross unrealized losses, Fair Value	25,279	22,015
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	685	426
GSE - Mortgage-backed Securities and CMO’s [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	105,231	93,928
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	7,084	1,607
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	12,421	4,210
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	594	129
Available-for-sale Securities, Gross unrealized losses, Fair Value	117,652	98,138
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	7,678	1,736
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	19,525	8,531
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	218	60
Available-for-sale Securities, Gross unrealized losses, Fair Value	19,525	8,531
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	218	60
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	72,790	52,959
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	7,371	892
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	13,566	9,272
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	1,989	309
Available-for-sale Securities, Gross unrealized losses, Fair Value	86,356	62,231
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	9,360	1,201
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	6,000	5,945
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	209	55
Available-for-sale Securities, Gross unrealized losses, Fair Value	6,000	5,945
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	$ 209	$ 55

XML

Investment and Equity Securities - Investment Securities - Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Fair Value	$ 23,902	$ 5,201
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	857	49
Securities held to maturity, Gross unrealized losses, Fair Value	23,902	5,201
Securities held to maturity, Gross unrealized losses, Unrealized Losses	857	49
U.S. Government Agencies [Member]
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Fair Value	152
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	3
Securities held to maturity, Gross unrealized losses, Fair Value	152
Securities held to maturity, Gross unrealized losses, Unrealized Losses	3
State and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Fair Value	11,750
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	363
Securities held to maturity, Gross unrealized losses, Fair Value	11,750
Securities held to maturity, Gross unrealized losses, Unrealized Losses	363
Corporate Bonds [Member]
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Fair Value	12,000	5,201
Securities held to maturity, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	491	49
Securities held to maturity, Gross unrealized losses, Fair Value	12,000	5,201
Securities held to maturity, Gross unrealized losses, Unrealized Losses	$ 491	$ 49

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Investment and Equity Securities - Amortized Cost and Fair Value of Available for Sale Securities Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized cost	$ 6,106
Due after one but within five years, Amortized Cost	17,917
Due after five but within ten years, Amortized Cost	95,052
Due after ten years, Amortized Cost	222,918
Available-for-sale Securities, Amortized Cost	341,993	$ 331,832
Due within twelve months, Estimated Fair Value	6,126
Due after one but within five years, Estimated Fair Value	17,463
Due after five but within ten years, Estimated Fair Value	89,310
Due after ten years, Estimated Fair Value	209,369
Available-for-sale Securities, Estimated Fair Value	$ 322,268	330,337
Due within twelve months, Book Yield	2.23%
Due after one but within five years, Book Yield	2.15%
Due after five but within ten years, Book Yield	1.19%
Due after ten years, Book Yield	1.52%
Total securities available for sale, Book Yield	1.47%
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Due after one but within five years, Amortized Cost	$ 4,791
Due after five but within ten years, Amortized Cost	26,619
Available-for-sale Securities, Amortized Cost	31,410	26,675
Due after one but within five years, Estimated Fair Value	4,686
Due after five but within ten years, Estimated Fair Value	24,703
Available-for-sale Securities, Estimated Fair Value	$ 29,389	26,381
Due after one but within five years, Book Yield	1.77%
Due after five but within ten years, Book Yield	1.24%
Total securities available for sale, Book Yield	1.32%
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized cost	$ 4,001
Due after one but within five years, Amortized Cost	2,143
Due after five but within ten years, Amortized Cost	17,419
Due after ten years, Amortized Cost	18,727
Available-for-sale Securities, Amortized Cost	42,290	40,066
Due within twelve months, Estimated Fair Value	4,019
Due after one but within five years, Estimated Fair Value	2,050
Due after five but within ten years, Estimated Fair Value	16,980
Due after ten years, Estimated Fair Value	18,626
Available-for-sale Securities, Estimated Fair Value	$ 41,675	39,812
Due within twelve months, Book Yield	1.80%
Due after one but within five years, Book Yield	1.91%
Due after five but within ten years, Book Yield	0.80%
Due after ten years, Book Yield	1.09%
Total securities available for sale, Book Yield	1.08%
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Due after ten years, Amortized Cost	$ 42,161
Available-for-sale Securities, Amortized Cost	42,161	43,383
Due after ten years, Estimated Fair Value	42,261
Available-for-sale Securities, Estimated Fair Value	$ 42,261	44,198
Due after ten years, Book Yield	1.32%
Total securities available for sale, Book Yield	1.32%
Mortgage-backed Securities and CMO's [Member]
Schedule of Available-for-sale Securities [Line Items]
Due after one but within five years, Amortized Cost	$ 5,441
Due after five but within ten years, Amortized Cost	42,723
Due after ten years, Amortized Cost	76,585
Available-for-sale Securities, Amortized Cost	124,749	121,994
Due after one but within five years, Estimated Fair Value	5,391
Due after five but within ten years, Estimated Fair Value	39,741
Due after ten years, Estimated Fair Value	71,944
Available-for-sale Securities, Estimated Fair Value	$ 117,076	120,448
Due after one but within five years, Book Yield	3.46%
Due after five but within ten years, Book Yield	1.18%
Due after ten years, Book Yield	1.35%
Total securities available for sale, Book Yield	1.38%
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized cost	$ 105
Due after one but within five years, Amortized Cost	1,542
Due after five but within ten years, Amortized Cost	6,291
Due after ten years, Amortized Cost	85,445
Available-for-sale Securities, Amortized Cost	93,383	89,786
Due within twelve months, Estimated Fair Value	105
Due after one but within five years, Estimated Fair Value	1,528
Due after five but within ten years, Estimated Fair Value	5,903
Due after ten years, Estimated Fair Value	76,538
Available-for-sale Securities, Estimated Fair Value	$ 84,074	89,477
Due within twelve months, Book Yield	4.50%
Due after one but within five years, Book Yield	2.50%
Due after five but within ten years, Book Yield	1.96%
Due after ten years, Book Yield	1.86%
Total securities available for sale, Book Yield	1.88%
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized cost	$ 2,000
Due after one but within five years, Amortized Cost	4,000
Due after five but within ten years, Amortized Cost	2,000
Available-for-sale Securities, Amortized Cost	8,000	9,928
Due within twelve months, Estimated Fair Value	2,002
Due after one but within five years, Estimated Fair Value	3,808
Due after five but within ten years, Estimated Fair Value	1,983
Available-for-sale Securities, Estimated Fair Value	$ 7,793	$ 10,021
Due within twelve months, Book Yield	2.98%
Due after one but within five years, Book Yield	0.83%
Due after five but within ten years, Book Yield	2.00%
Total securities available for sale, Book Yield	1.66%

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Investment and Equity Securities - Amortized Cost and Fair Value of Held to Maturity Securities Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Held To Maturity Securities [Line Items]
Due within twelve months, Amortized Cost	$ 1,346
Due after one but within five years, Amortized Cost	1,048
Due after five but within ten years, Amortized Cost	15,000
Due after ten years, Amortized cost	13,328
Total Securities held for maturity, Amortized Cost	30,722
Due within twelve months, Estimated Fair Value	1,351
Due after one but within five years, Estimated Fair Value	1,051
Due after five but within ten years, Estimated Fair Value	14,539
Due after ten years, Estimated Fair Value	12,968
Total Securities held for maturity, Estimated Fair Value	$ 29,909	$ 32,045
Due within twelve months, Book Yield	2.08%
Due after one but within five years, Book Yield	2.34%
Due after five but within ten years, Book Yield	4.57%
Due after ten years, Book Yield	2.85%
Total Securities held for maturity, Book Yield	3.64%
U.S. Government Agencies [Member]
Schedule Of Held To Maturity Securities [Line Items]
Due after one but within five years, Amortized Cost	$ 152
Total Securities held for maturity, Amortized Cost	152
Due after one but within five years, Estimated Fair Value	149
Total Securities held for maturity, Estimated Fair Value	$ 149	176
Due after one but within five years, Book Yield	2.80%
Total Securities held for maturity, Book Yield	2.80%
State and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Due within twelve months, Amortized Cost	$ 1,346
Due after one but within five years, Amortized Cost	896
Due after ten years, Amortized cost	13,328
Total Securities held for maturity, Amortized Cost	15,570
Due within twelve months, Estimated Fair Value	1,351
Due after one but within five years, Estimated Fair Value	902
Due after ten years, Estimated Fair Value	12,968
Total Securities held for maturity, Estimated Fair Value	$ 15,221	16,722
Due within twelve months, Book Yield	2.08%
Due after one but within five years, Book Yield	2.26%
Due after ten years, Book Yield	2.85%
Total Securities held for maturity, Book Yield	2.75%
Corporate Bonds [Member]
Schedule Of Held To Maturity Securities [Line Items]
Due after five but within ten years, Amortized Cost	$ 15,000
Total Securities held for maturity, Amortized Cost	15,000
Due after five but within ten years, Estimated Fair Value	14,539
Total Securities held for maturity, Estimated Fair Value	$ 14,539	$ 15,147
Due after five but within ten years, Book Yield	4.57%
Total Securities held for maturity, Book Yield	4.57%

XML

Investment and Equity Securities - Unrealized Gain and Losses related to Equity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments Debt And Equity Securities [Abstract]
Gross proceeds from sales		$ 929
Net losses recognized during the period on equity securities	$ (9)	(19)
Less: Net losses recognized from equity securities sold during the period		(18)
Unrealized losses recognized during the period on equity securities still held at the reporting date	$ (9)	$ (1)

XML

Loans Held for Investment - Composition of Net Loans Held for Investment by Class (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	$ 445,541	$ 420,858
Less:
Allowance for loan losses	(4,156)	(4,026)	$ (4,252)	$ (4,402)
Deferred loan costs (fees) net	383	(79)
Net loans held for investment	441,768	416,753
Commercial [Member]
Less:
Allowance for loan losses	(2,626)	(2,429)	(2,555)	(2,753)
Commercial [Member] | Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	80,123	73,035
Commercial [Member] | SBA Paycheck Protection Program (PPP) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	7,946	15,840
Commercial [Member] | Real Estate - Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	154,577	150,382
Commercial [Member] | Other Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	42,713	28,275
Commercial [Member] | Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	5,393	5,496
Non-Commercial [Member]
Less:
Allowance for loan losses	(1,530)	(1,597)	$ (1,697)	$ (1,649)
Non-Commercial [Member] | Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	9,040	9,579
Non-Commercial [Member] | Real Estate 1 - 4 Family Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	8,927	8,424
Non-Commercial [Member] | Real Estate - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	84,156	78,824
Non-Commercial [Member] | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	$ 52,666	$ 51,003

XML

Loans Held for Investment - Additional Information (Detail)			3 Months Ended
	Jun. 05, 2020	Jun. 04, 2020	Mar. 31, 2022 USD ($) PPPLoan
Paycheck Protection Program [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Term	5 years	2 years
Interest earn on loan			1.00%
Number of Loans | PPPLoan			1,202
Recorded Investments			$ 81,000,000.0
Number of loans paid off or forgiven | PPPLoan			1,187
Loan balances			$ 80,700,000
Second Round Paycheck Protection Program [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan balances			$ 38,700,000
Number of loans | PPPLoan			879
Amount of additional loans funded			$ 46,400,000
Number of Loans | PPPLoan			728
Deferred loan fees			$ 393,000
Deferred loan costs			$ 47,000

XML

Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	$ 4,026	$ 4,402
Provision for (recovery of) loan losses	118	(34)
Charge-offs	(6)	(138)
Recoveries	18	22
Net (charge-offs) recoveries	12	(116)
Balance at end of period	4,156	4,252
Commercial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	2,429	2,753
Provision for (recovery of) loan losses	190	(87)
Charge-offs		(118)
Recoveries	7	7
Net (charge-offs) recoveries	7	(111)
Balance at end of period	2,626	2,555
Non-Commercial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	1,597	1,649
Provision for (recovery of) loan losses	(72)	53
Charge-offs	(6)	(20)
Recoveries	11	15
Net (charge-offs) recoveries	5	(5)
Balance at end of period	$ 1,530	$ 1,697

XML

Allowance for Loan Losses - Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Individually Evaluated, Reserve	$ 243	$ 214
Individually Evaluated, Loans	4,091	4,708
Collectively Evaluated, Reserve	3,913	3,812
Collectively Evaluated, Loans	441,833	416,071
Total Reserve	4,156	4,026	$ 4,252	$ 4,402
Total Loans	445,924	420,779
Commercial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Individually Evaluated, Reserve	130	102
Individually Evaluated, Loans	2,146	2,573
Collectively Evaluated, Reserve	2,496	2,327
Collectively Evaluated, Loans	288,416	269,876
Total Reserve	2,626	2,429	2,555	2,753
Total Loans	290,562	272,449
Non-Commercial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Individually Evaluated, Reserve	113	112
Individually Evaluated, Loans	1,945	2,135
Collectively Evaluated, Reserve	1,417	1,485
Collectively Evaluated, Loans	153,417	146,195
Total Reserve	1,530	1,597	$ 1,697	$ 1,649
Total Loans	$ 155,362	$ 148,330

XML

Allowance for Loan Losses - Past Due Information of Loan Portfolio by Class (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable Impaired [Line Items]
Total Loans	$ 445,924	$ 420,779
Accruing Loans 90 or More Days Past Due	0	0
Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	526	914
Loans 90 Days or More Past Due and Non - Accrual [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	861	972
Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	1,387	1,886
Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	444,537	418,893
Real Estate - Commercial [Member]
Financing Receivable Impaired [Line Items]
Total Loans	154,734	150,543
Accruing Loans 90 or More Days Past Due	0	0
Real Estate - Commercial [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	127	127
Real Estate - Commercial [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	286	292
Real Estate - Commercial [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	413	419
Real Estate - Commercial [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	154,321	150,124
Other Real Estate Construction [Member]
Financing Receivable Impaired [Line Items]
Total Loans	42,713	28,275
Accruing Loans 90 or More Days Past Due	0	0
Other Real Estate Construction [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	42,713	28,275
Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Impaired [Line Items]
Total Loans	8,927	8,424
Accruing Loans 90 or More Days Past Due	0	0
Real Estate 1 - 4 Family Construction [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	8,927	8,424
Real Estate - Residential [Member]
Financing Receivable Impaired [Line Items]
Total Loans	84,729	79,324
Accruing Loans 90 or More Days Past Due	0	0
Real Estate - Residential [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	211	559
Real Estate - Residential [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	163	337
Real Estate - Residential [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	374	896
Real Estate - Residential [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	84,355	78,428
Home Equity [Member]
Financing Receivable Impaired [Line Items]
Total Loans	52,666	51,003
Accruing Loans 90 or More Days Past Due	0	0
Home Equity [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	19
Home Equity [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	31	33
Home Equity [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	50	33
Home Equity [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	52,616	50,970
Other Loans [Member]
Financing Receivable Impaired [Line Items]
Total Loans	5,393	5,496
Accruing Loans 90 or More Days Past Due	0	0
Other Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	5,393	5,496
Paycheck Protection Program [Member]
Financing Receivable Impaired [Line Items]
Total Loans	7,599	15,100
Accruing Loans 90 or More Days Past Due	0	0
Paycheck Protection Program [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	9
Paycheck Protection Program [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	9
Paycheck Protection Program [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	7,590	15,100
Commercial Loan [Member]
Financing Receivable Impaired [Line Items]
Total Loans	80,123	73,035
Accruing Loans 90 or More Days Past Due	0	0
Commercial Loan [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	122	201
Commercial Loan [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	381	310
Commercial Loan [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	503	511
Commercial Loan [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	79,620	72,524
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Total Loans	9,040	9,579
Accruing Loans 90 or More Days Past Due	0	0
Consumer Loans [Member] | Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	38	27
Consumer Loans [Member] | Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	38	27
Consumer Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	$ 9,002	$ 9,552

XML

Allowance for Loan Losses - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Allowance For Loan Losses [Line Items]
Financing receivable recorded investment number of days past due	90 days
Accruing Loans 90 or More Days Past Due	$ 0	$ 0
Real Estate - Residential [Member]
Allowance For Loan Losses [Line Items]
Foreclosed residential real estate, loan amount	0	0
Real estate in process of foreclosure, loan amount	41,000	0
Accruing Loans 90 or More Days Past Due	$ 0	$ 0

XML

Allowance for Loan Losses - Composition of Nonaccrual Loans by Class (Detail) - Loans 90 Days or More Past Due and Non - Accrual [Member] - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable Impaired [Line Items]
Increase in non-performing loans	$ 861	$ 972
Real Estate - Commercial [Member]
Financing Receivable Impaired [Line Items]
Increase in non-performing loans	286	292
Real Estate - Residential [Member]
Financing Receivable Impaired [Line Items]
Increase in non-performing loans	163	337
Home Equity [Member]
Financing Receivable Impaired [Line Items]
Increase in non-performing loans	31	33
Commercial Loan [Member]
Financing Receivable Impaired [Line Items]
Increase in non-performing loans	$ 381	$ 310

XML

Allowance for Loan Losses - Summary of Risk Grades of Portfolio by Class (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment [Line Items]
Loans	$ 445,924	$ 420,779
Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	154,734	150,543
Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	42,713	28,275
Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	8,927	8,424
Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	84,729	79,324
Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	52,666	51,003
Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,393	5,496
Paycheck Protection Program [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	7,599	15,100
Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	80,123	73,035
Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,040	9,579
Pass [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	437,704	408,945
Pass [Member] | Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	151,465	145,084
Pass [Member] | Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	42,405	27,966
Pass [Member] | Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	8,927	8,424
Pass [Member] | Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	82,640	76,430
Pass [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	52,487	50,672
Pass [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,393	5,496
Pass [Member] | Paycheck Protection Program [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	7,599	15,100
Pass [Member] | Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	77,787	70,235
Pass [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,001	9,538
Watch [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	6,709	9,428
Watch [Member] | Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	2,983	4,387
Watch [Member] | Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	54	55
Watch [Member] | Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,530	2,157
Watch [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	148	298
Watch [Member] | Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,955	2,490
Watch [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	39	41
Sub-standard [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,511	2,406
Sub-standard [Member] | Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	286	1,072
Sub-standard [Member] | Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	254	254
Sub-standard [Member] | Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	559	737
Sub-standard [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	31	33
Sub-standard [Member] | Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	$ 381	$ 310

XML

Allowance for Loan Losses - Summary of Performing and Nonperforming Loans by Class (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment [Line Items]
Loans	$ 445,924	$ 420,779
Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	154,734	150,543
Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	42,713	28,275
Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	8,927	8,424
Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	84,729	79,324
Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	52,666	51,003
Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,393	5,496
Paycheck Protection Program [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	7,599	15,100
Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	80,123	73,035
Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,040	9,579
Performing [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	445,063	419,807
Performing [Member] | Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	154,448	150,251
Performing [Member] | Other Real Estate Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	42,713	28,275
Performing [Member] | Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	8,927	8,424
Performing [Member] | Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	84,566	78,987
Performing [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	52,635	50,970
Performing [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,393	5,496
Performing [Member] | Paycheck Protection Program [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	7,599	15,100
Performing [Member] | Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	79,742	72,725
Performing [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,040	9,579
Non-Performing [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	861	972
Non-Performing [Member] | Real Estate - Commercial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	286	292
Non-Performing [Member] | Real Estate - Residential [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	163	337
Non-Performing [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	31	33
Non-Performing [Member] | Commercial Loan [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	$ 381	$ 310

XML

Allowance for Loan Losses - Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	$ 4,091		$ 4,708
Recorded Investment With No Allowance	602		779
Recorded Investment With Allowance	3,489		3,929
Related Allowance	243		214
Average Recorded Investment	4,400	$ 7,701
Interest Income	91	68
Real Estate - Commercial [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	1,169		1,613
Recorded Investment With Allowance	1,169		1,613
Related Allowance	71		71
Average Recorded Investment	1,391	3,584
Interest Income	24	24
Other Real Estate Construction [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance			0
Average Recorded Investment		519
Real Estate - Residential [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	1,914		2,103
Recorded Investment With No Allowance	601		777
Recorded Investment With Allowance	1,313		1,326
Related Allowance	112		111
Average Recorded Investment	2,008	2,792
Interest Income	63	38
Home Equity [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	31		32
Recorded Investment With No Allowance	1		2
Recorded Investment With Allowance	30		30
Related Allowance	1		1
Average Recorded Investment	32	143
Interest Income		1
Commercial Loan [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	977		960
Recorded Investment With Allowance	977		960
Related Allowance	59		$ 31
Average Recorded Investment	969	651
Interest Income	$ 4	5
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Average Recorded Investment		$ 12

XML

Troubled Debt Restructures - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2022 USD ($) Contract	Mar. 31, 2021 USD ($)	Mar. 31, 2022 USD ($) Contract	Dec. 31, 2021 USD ($) Contract	Mar. 31, 2021 Contract
Financing Receivable Modifications [Line Items]
Current outstanding loans modified | $	$ 3,300,000		$ 3,300,000	$ 3,800,000
Number of contracts on non-accruing basis | Contract	1			1
Outstanding balance of TDRs non accruing basis | $	$ 38,000		$ 38,000	$ 39,000
Number of TDR's payment default | Contract			1		0
TDR is defined as being past due	90 days
Allowance for loan loss on TDR | $	$ 155,000	$ 139,000
Total COVID-19 modifications [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts | Contract	0			0

XML

Troubled Debt Restructures - Schedule of Status of Types of Debt Restructuring (Detail) $ in Thousands	12 Months Ended
	Mar. 31, 2022 USD ($) Contract	Mar. 31, 2021 USD ($) Contract	Dec. 31, 2021 USD ($)
Financing Receivable Modifications [Line Items]
Recorded Investments	$ 3,300		$ 3,800
Paid In Full [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract	7	6
Recorded Investments	$ 1,032	$ 639
Paying as Restructured [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract	6	5
Recorded Investments	$ 2,339	$ 1,745
Foreclosure/ Default [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract		1
Recorded Investments		$ 41
Below Market Interest Rate [Member] | Paid In Full [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract	1
Recorded Investments	$ 218
Forgiveness of Principal Other [Member] | Paid In Full [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract	6	6
Recorded Investments	$ 814	$ 639
Forgiveness of Principal Other [Member] | Paying as Restructured [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract	6	5
Recorded Investments	$ 2,339	$ 1,745
Forgiveness of Principal Other [Member] | Foreclosure/ Default [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Contract		1
Recorded Investments		$ 41

XML

Leases - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022 USD ($) OfficeLocation Branch	Mar. 31, 2021 USD ($)
Lessee Lease Description [Line Items]
Number of office locations leased | OfficeLocation	3
Number of branch locations leased | Branch	2
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Description of option to extend	Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates.
Operating Lease, Liability	$ 2,141,000
Operating lease costs	99,000	$ 99,000
ASU 2016-02 [Member]
Lessee Lease Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 2,000,000.0	$ 2,400,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Operating Lease, Liability	$ 2,100,000	$ 2,500,000
Minimum [Member]
Lessee Lease Description [Line Items]
Operating leases remaining term	4 years
Option to extend term	5 years
Maximum [Member]
Lessee Lease Description [Line Items]
Operating leases remaining term	7 years
Option to extend term	10 years

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Leases - Summary of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 99	$ 96
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,015	$ 2,354
Weighted-average remaining lease term - operating leases, in years	5 years 7 months 6 days	6 years 7 months 6 days
Weighted-average discount rate - operating leases	2.47%	2.45%

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Leases - Summary of the Maturity of Remaining Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2022 USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2022	$ 301
2023	408
2024	417
2025	427
2026	387
2027 and thereafter	365
Total lease payments	2,305
Less: Interest	(164)
Operating Lease, Liability	$ 2,141
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilitiesNoncurrent

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Commitments and Contingencies - Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Total commitments	$ 196,815	$ 205,630
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Total commitments	168,781	177,706
Credit Card Commitments [Member]
Loss Contingencies [Line Items]
Total commitments	19,838	19,763
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Total commitments	$ 8,196	$ 8,161

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Fair Value Disclosures - Fair Value Information for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	$ 322,268	$ 330,337
Mortgage banking derivative asset, fair value	1,485	1,269
Mortgage banking derivative liability, fair value		50
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	7,793	10,021
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	29,389
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	292,879	330,337
Fair Value on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	324,136	331,998
Mortgage banking derivative asset, fair value	1,485	1,269
Mortgage banking derivative liability, fair value		50
Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	7,793	10,021
Fair Value on a Recurring Basis [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	29,772	26,773
Fair Value on a Recurring Basis [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	294,095	304,209
Mortgage banking derivative asset, fair value	1,216	253
Mortgage banking derivative liability, fair value		50
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	7,793	10,021
Fair Value on a Recurring Basis [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	269	1,016
Mortgage banking derivative asset, fair value	269	1,016
Fair Value on a Recurring Basis [Member] | U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	29,389	26,381
Fair Value on a Recurring Basis [Member] | U.S. Treasury [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	29,389	26,381
Fair Value on a Recurring Basis [Member] | U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	41,675	39,812
Fair Value on a Recurring Basis [Member] | U.S. Government Agencies [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	41,675	39,812
Fair Value on a Recurring Basis [Member] | GSE - Mortgage-backed Securities and CMO’s [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	117,076	120,448
Fair Value on a Recurring Basis [Member] | GSE - Mortgage-backed Securities and CMO’s [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	117,076	120,448
Fair Value on a Recurring Basis [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	42,261	44,198
Fair Value on a Recurring Basis [Member] | Asset-backed Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	42,261	44,198
Fair Value on a Recurring Basis [Member] | State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	84,074	89,477
Fair Value on a Recurring Basis [Member] | State and Political Subdivisions [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	84,074	89,477
Fair Value on a Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	383	392
Fair Value on a Recurring Basis [Member] | Equity Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	$ 383	392
Fair Value on a Recurring Basis [Member] | Mortgage Banking Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage banking derivative liability, fair value		50
Fair Value on a Recurring Basis [Member] | Mortgage Banking Derivatives [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage banking derivative liability, fair value		$ 50

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Fair Value Disclosures - Schedule of Reconciliation for Recurring Level 3 Fair Value Measurements (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Beginning Balance	$ 1,016
Change in fair value:
Included in income from mortgage banking	(747)
Ending Balance	$ 269

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Fair Value Disclosure (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair value of notional amount	$ 30.9	$ 28.9
Projected pull-through rate	89.10%	82.47%

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Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value on a Nonrecurring Basis [Member] - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 3,247	$ 3,715
Total assets at fair value on a nonrecurring basis	3,247	3,715
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	3,247	3,715
Total assets at fair value on a nonrecurring basis	$ 3,247	$ 3,715

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Fair Value Disclosures - Quantitative Information about Level 3 Fair Value Measurements (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Discounted Cash Flows [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	Discounted cash flows	Discounted cash flows
Discounted Cash Flows [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	4.00%	4.00%
Discounted Cash Flows [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	8.75%	8.75%
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	Discounted appraisals	Discounted appraisals
Impaired Loans [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	0.00%	0.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	25.00%	25.00%

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Fair Values of Financial Instruments - Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
FINANCIAL ASSETS
Securities available for sale	$ 322,268	$ 330,337
Securities held to maturity	29,909	32,045
Equity securities	383	392
Loans held for investment, net	441,768	416,753
Loan servicing rights	5,240	5,078
Accrued interest receivable	2,731	2,554
FINANCIAL LIABILITIES
Long-term debt	29,549	29,530
Carrying Value [Member]
FINANCIAL ASSETS
Cash and cash equivalents	115,710	94,410
Securities available for sale	322,268	330,337
Securities held to maturity	30,722	30,801
Equity securities	383	392
Loans held for investment, net	441,768	416,753
Loans held for sale	11,910	21,684
Restricted stock	1,428	921
Loan servicing rights	5,240	5,078
Mortgage banking derivatives	1,485	1,269
Accrued interest receivable	2,731	2,554
FINANCIAL LIABILITIES
Deposits	883,498	836,752
Short-term borrowings	1,344	1,081
Long-term debt	29,549	29,530
Mortgage banking derivatives		50
Accrued interest payable	68	7
Estimated Fair Value [Member]
FINANCIAL ASSETS
Cash and cash equivalents	115,710	94,357
Securities available for sale	322,268	330,337
Securities held to maturity	29,909	32,045
Equity securities	383	392
Loans held for investment, net	431,121	412,585
Loans held for sale	11,910	21,684
Restricted stock	1,428	921
Loan servicing rights	6,239	5,509
Mortgage banking derivatives	1,485	1,269
Accrued interest receivable	2,731	2,554
FINANCIAL LIABILITIES
Deposits	882,711	836,567
Short-term borrowings	1,344	1,081
Long-term debt	28,248	30,039
Mortgage banking derivatives		50
Accrued interest payable	68	7
Level 1 [Member]
FINANCIAL ASSETS
Cash and cash equivalents	115,710	90,924
Securities available for sale	29,389
Equity securities	383	392
Restricted stock	1,428	921
Level 2 [Member]
FINANCIAL ASSETS
Cash and cash equivalents		3,433
Securities available for sale	292,879	330,337
Securities held to maturity	15,370	16,898
Loans held for sale	11,910	21,684
Loan servicing rights	6,239	5,509
Mortgage banking derivatives	1,216	253
FINANCIAL LIABILITIES
Deposits	882,711	836,567
Short-term borrowings	1,344	1,081
Mortgage banking derivatives		50
Level 3 [Member]
FINANCIAL ASSETS
Securities held to maturity	14,539	15,147
Loans held for investment, net	431,121	412,585
Mortgage banking derivatives	269	1,016
Accrued interest receivable	2,731	2,554
FINANCIAL LIABILITIES
Long-term debt	28,248	30,039
Accrued interest payable	$ 68	$ 7

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Mortgage Banking Derivatives - Summary of Notional Amount and Fair Value of Mortgage Banking Derivatives (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Included in mortgage banking derivatives liability:
Derivative liability, fair value	$ 196,815	$ 205,630
Interest Rate Lock Commitments [Member]
Included in mortgage banking derivatives asset:
Derivative asset, notional amount	30,933	28,939
Included in mortgage banking derivatives asset:
Derivative asset, fair value	269	1,016
Forward Sale And Commitments [Member]
Included in mortgage banking derivatives asset:
Derivative asset, notional amount		8,417
Included in mortgage banking derivatives asset:
Derivative asset, fair value		253
To-be-announced Mortgage-backed Securities Trades [Member]
Included in mortgage banking derivatives asset:
Derivative asset, notional amount	50,000
Included in mortgage banking derivatives liability:
Derivative liability, notional amount		44,000
Included in mortgage banking derivatives asset:
Derivative asset, fair value	$ 1,216
Included in mortgage banking derivatives liability:
Derivative liability, fair value		$ 50