Derivative Financial Instruments	3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments: Interest Rate Swaps The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $80.0 million and fair value of $4.5 million in other assets and $4.5 million in other liabilities at March 31, 2023. At December 31, 2022, the Company had interest rate swaps associated with commercial loans with and a notional value of $71.9 million and fair value of $5.5 million in other assets and $5.5 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There were no net gains or losses for interest rate swaps for the three month period ended March 31, 2023 and 2022. Mortgage Banking Derivatives Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. The Company had $8.8 million of interest rate lock commitments at March 31, 2023 and $4.9 million of interest rate lock commitments at December 31, 2022. Effective May 2022, the Company began the practice of entering into commitments to sell mortgage backed securities when the interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated as hedge instruments. There were $5.5 million of forward sales of mortgage backed securities at March 31, 2023 and $4.3 million of forward sales of mortgage backed securities at December 31, 2022. There were $390 thousand of forward commitments for the future delivery of residential mortgages at March 31, 2023 and no forward commitments for the future delivery of residential mortgage loans at December 31, 2022. The net gains and losses on derivative instruments not designated as hedging instruments are included in mortgage banking income. For the quarters ended March 31, 2023 and March 31, 2022, gains of $109 thousand and losses of $286 thousand, respectively, were included in mortgage banking income for the interest rate lock commitments. Losses of $87 thousand were included in mortgage banking income for the three months ended March 31, 2023 for the forward sales of mortgage backed securities. The Company did not enter into the forward sales of mortgage backed securities in the three months ended March 31, 2022.

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments:

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $80.0 million and fair value of $4.5 million in other assets and $4.5 million in other liabilities at March 31, 2023. At December 31, 2022, the Company had interest rate swaps associated with commercial loans with and a notional value of $71.9 million and fair value of $5.5 million in other assets and $5.5 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820.

There were no net gains or losses for interest rate swaps for the three month period ended March 31, 2023 and 2022.

Mortgage Banking Derivatives

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. The Company had $8.8 million of interest rate lock commitments at March 31, 2023 and $4.9 million of interest rate lock commitments at December 31, 2022. Effective May 2022, the Company began the practice of entering into commitments to sell mortgage backed securities when the interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated as hedge instruments. There were $5.5 million of forward sales of mortgage backed securities at March 31, 2023 and $4.3 million of forward sales of mortgage backed securities at December 31, 2022. There were $390 thousand of forward commitments for the future delivery of residential mortgages at March 31, 2023 and no forward commitments for the future delivery of residential mortgage loans at December 31, 2022.

The net gains and losses on derivative instruments not designated as hedging instruments are included in mortgage banking income. For the quarters ended March 31, 2023 and March 31, 2022, gains of $109 thousand and losses of $286 thousand, respectively, were included in mortgage banking income for the interest rate lock commitments. Losses of $87 thousand were included in mortgage banking income for the three months ended March 31, 2023 for the forward sales of mortgage backed securities. The Company did not enter into the forward sales of mortgage backed securities in the three months ended March 31, 2022.