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 |
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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.
Fair Value, Assets Measured on 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 | | |
$ | — | |
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 | | |
$ | — | |
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.
Fair Value, Assets Measured on Non-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 Measurement Inputs and
Valuation Techniques
|
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 |
|