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Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of September 30, 2022 and December 31, 2021 are as follows:

The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of September 30, 2022 and December 31, 2021 are as follows:

 

Fair Value of Financial Instruments
                                       
   September 30, 2022 
   Carrying   Fair Value 
(Dollars in thousands)  Amount   Total   Level 1   Level 2   Level 3 
Financial Assets:                         
Cash and short term investments  $38,253   $38,253   $38,253   $   $ 
Held-to-maturity securities   233,301    216,947        216,947      
Available-for-sale securities   338,350    338,350    4,983    333,367     
Other investments, at cost   1,929    1,929            1,929 
Loans held for sale   1,758    1,758        1,758     
Net loans receivable   938,895    917,141            917,141 
Accrued interest   4,449    4,449    4,449         
Financial liabilities:                         
Non-interest bearing demand  $484,747   $484,747   $   $484,747   $ 
Interest bearing demand deposits and money market accounts   652,043    652,043        652,043     
Savings   160,309    160,309        160,309     
Time deposits   139,157    139,149        139,149     
Total deposits   1,436,256    1,436,248        1,436,248     
Short term borrowings   73,659    73,659        73,659     
Junior subordinated debentures   14,964    13,235        13,235     
Accrued interest payable   334    334    334         
                          
   December 31, 2021 
   Carrying   Fair Value 
(Dollars in thousands)  Amount   Total   Level 1   Level 2   Level 3 
Financial Assets:                         
Cash and short term investments  $69,022   $69,022   $69,022   $   $ 
Available-for-sale securities   564,839    564,839    39,829    525,010     
Other investments, at cost   1,785    1,785            1,785 
Loans held for sale   7,120    7,120        7,120     
Net loans receivable   852,523    851,822            851,822 
Accrued interest   3,927    3,927    3,927         
Financial liabilities:                         
Non-interest bearing demand  $444,688   $444,688   $   $444,688   $ 
Interest bearing demand deposits and money market accounts   619,057    619,057        619,057     
Savings   143,765    143,765        143,765     
Time deposits   153,781    154,030        154,030     
Total deposits   1,361,291    1,361,540        1,361,540     
Short term borrowings   54,216    54,216        54,216     
Junior subordinated debentures   14,964    15,015        15,015     
Accrued interest payable   404    404    404         
Fair Value, Assets Measured on Recurring Basis

The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2022 and December 31, 2021 that are measured on a recurring basis. There were no liabilities carried at fair value as of September 30, 2022 or December 31, 2021 that are measured on a recurring basis.

(Dollars in thousands)

Fair Value of Financial Instruments (Details 2)
Description  September 30,
2022
   (Level 1)   (Level 2)   (Level 3) 
Available- for-sale securities                    
US Treasury Securities  $55,723   $   $55,723   $ 
Government Sponsored Enterprises   2,096        2,096     
Mortgage-backed securities   250,109    4,983    245,126     
Small Business Administration pools   22,279        22,279     
State and local government                
Corporate and other securities   8,143        8,143     
Total Available-for-sale securities   338,350    4,983    333,367     
Loans held for sale   1,758        1,758     
Total  $340,108   $4,983   $335,125   $ 
                     
(Dollars in thousands)                
Description  December 31,
2021
   (Level 1)   (Level 2)   (Level 3) 
Available- for-sale securities                    
US Treasury Securities  $15,436   $   $15,436   $ 
Government Sponsored Enterprises   2,501        2,501     
Mortgage-backed securities   397,729    25,934    371,796     
Small Business Administration pools   31,273        31,273     
State and local government   109,848    12,896    96,952     
Corporate and other securities   8,052    1,000    7,052     
Total Available-for-sale securities   564,839    39,830    525,010     
Loans held for sale   7,120        7,120     
Total  $571,959   $39,830   $532,130   $ 
Fair Value, Assets Measured on Non-Recurring Basis

The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2022 and December 31, 2021 that are measured on a non-recurring basis. There were no Level 3 financial instruments for the three months ended September 30, 2022 and September 30, 2021 measured on a recurring basis.

 

(Dollars in thousands)                
Description  September 30,
2022
   (Level 1)   (Level 2)   (Level 3) 
Impaired loans:                    
Commercial & Industrial  $   $   $   $ 
Real estate:                    
Mortgage-residential   39            39 
Mortgage-commercial   4,759            4,759 
Consumer:                    
Home equity   168            168 
Other                
Total impaired   4,966            4,966 
Other real estate owned:                    
Construction   894            894 
Mortgage-commercial   90            90 
Total other real estate owned   984            984 
Total  $5,950   $   $   $5,950 
(Dollars in thousands)                
Description  December 31,
2021
   (Level 1)   (Level 2)   (Level 3) 
Impaired loans:                    
Commercial & Industrial  $   $   $   $ 
Real estate:                    
Mortgage-residential   133            133 
Mortgage-commercial   1,560            1,560 
Consumer:                    
Home equity                
Other                
Total impaired   1,693            1,694 
Other real estate owned:                    
Construction   624            624 
Mortgage-commercial   541            541 
Total other real estate owned   1,165            1,165 
Total  $2,859   $   $   $2,859 
[custom:DisclosureFairValueOfFinancialInstrumentsDetails3Abstract]
(Dollars in thousands)                
Description  September 30,
2022
   (Level 1)   (Level 2)   (Level 3) 
Impaired loans:                    
Commercial & Industrial  $   $   $   $ 
Real estate:                    
Mortgage-residential   39            39 
Mortgage-commercial   4,759            4,759 
Consumer:                    
Home equity   168            168 
Other                
Total impaired   4,966            4,966 
Other real estate owned:                    
Construction   894            894 
Mortgage-commercial   90            90 
Total other real estate owned   984            984 
Total  $5,950   $   $   $5,950 
(Dollars in thousands)                
Description  December 31,
2021
   (Level 1)   (Level 2)   (Level 3) 
Impaired loans:                    
Commercial & Industrial  $   $   $   $ 
Real estate:                    
Mortgage-residential   133            133 
Mortgage-commercial   1,560            1,560 
Consumer:                    
Home equity                
Other                
Total impaired   1,693            1,694 
Other real estate owned:                    
Construction   624            624 
Mortgage-commercial   541            541 
Total other real estate owned   1,165            1,165 
Total  $2,859   $   $   $2,859 
Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

 

 

Fair Value of Financial Instruments (Details 4)
(Dollars in thousands)   Fair Value as
of September 30,
2022
    Valuation Technique   Significant
Observable
Inputs
  Significant
Unobservable
Inputs
OREO   $ 984     Appraisal Value/Comparison Sales/Other estimates   Appraisals and or sales of comparable properties   Appraisals discounted 6% to 16% for sales commissions and other holding cost
Impaired loans   $ 4,966     Appraisal Value   Appraisals and or sales of comparable properties   Appraisals discounted 6% to 16% for sales commissions and other holding cost
                   
(Dollars in thousands)   Fair Value as
of December 31,
2021
    Valuation Technique   Significant
Observable
Inputs
  Significant
Unobservable
Inputs
OREO   $ 1,165     Appraisal Value/Comparison Sales/Other estimates   Appraisals and or sales of comparable properties   Appraisals discounted 6% to 16% for sales commissions and other holding cost
Impaired loans   $ 1,694     Appraisal Value   Appraisals and or sales of comparable properties   Appraisals discounted 6% to 16% for sales commissions and other holding cost