XML 112 R20.htm IDEA: XBRL DOCUMENT v3.20.1

Fair value of financial instruments

12 Months Ended

Dec. 31, 2019

Fair value of financial instruments

Fair value of financial instruments

13. Fair value of financial instruments:

Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and 2018 are summarized as follows:

		Fair Value Measurement Using
					Quoted Prices in			Significant			Significant
					Active Markets for			Other Observable			Unobservable
					Identical Assets			Inputs			Inputs
December 31, 2019		Amount			(Level 1)			(Level 2)			(Level 3)
U.S. Treasury securities		$	24,128		$	24,128					$
U.S. government-sponsored enterprises			87,110					$	87,110
State and municipals:
Taxable			34,898						34,898
Tax-exempt			60,163						60,163
Mortgage-backed securities:
U.S. government agencies			8,470						8,470
U.S. government-sponsored enterprises			115,709						115,709
Common equity securities			423			423
Interest rate floor-other assets			944						944
Interest rate swap-other assets			4,728						4,728
Interest rate swap-other liabilities			(4,680)						(4,680)
Total		$	331,893		$	24,551		$	307,342		$

		Fair Value Measurement Using
					Quoted Prices in			Significant			Significant
					Active Markets for			Other Observable			Unobservable
					Identical Assets			Inputs			Inputs
December 31, 2018		Amount			(Level 1)			(Level 2)			(Level 3)
U.S. Treasury securities		$	25,592		$	25,592					$
U.S. government-sponsored enterprises			92,818					$	92,818
State and municipals:
Taxable			13,853						13,853
Tax-exempt			85,954						85,954
Mortgage-backed securities:
U.S. government agencies			12,629						12,629
U.S. government-sponsored enterprises			38,836						38,836
Common equity securities			291			291
Interest rate floor-other assets			553						553
Interest rate swap-other assets			108						108
Interest rate swap-other liabilities			(138)						(138)
Total		$	270,496		$	25,883		$	244,613		$

Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2019 and 2018 are summarized as follows:

Fair Value Measurement Using

Quoted Prices in

Significant

Significant

Active Markets for

Other Observable

Unobservable

Identical Assets

Inputs

Inputs

December 31, 2019

Amount

(Level 1)

(Level 2)

(Level 3)

Impaired loans

$

1,808

$

1,808

Other real estate owned

$

283

$

283

Fair Value Measurement Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable

Unobservable

Identical Assets

Inputs

Inputs

December 31, 2018

Amount

(Level 1)

(Level 2)

(Level 3)

Impaired loans

$

2,809

$

2,809

Other real estate owned

$

234

$

234

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value							Range
December 31, 2019		Estimate			Valuation Techniques		Unobservable Input		(Weighted Average)
Impaired loans		$	1,808		Appraisal of collateral		Appraisal adjustments		8.6% to 97.0%   (54.4)%
							Liquidation expenses		3.0% to 6.0% (5.2)%
Other real estate owned		$	283		Appraisal of collateral		Appraisal adjustments		20.0% to 63.6%   (43.7)%
							Liquidation expenses		3.0% to 6.0% (5.0)%

		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value							Range
December 31, 2018		Estimate			Valuation Techniques		Unobservable Input		(Weighted Average)
Impaired loans		$	2,809		Appraisal of collateral		Appraisal adjustments		7.1% to 97.0%   (61.8)%
							Liquidation expenses		3.0% to 6.0% (4.4)%
Other real estate owned		$	234		Appraisal of collateral		Appraisal adjustments		26.0% to 73.3%   (38.9)%
							Liquidation expenses		3.0% to 6.0% (5.0)%

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 Inputs which are not identifiable.

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

The carrying and fair values of the Company’s financial instruments at December 31, 2019 and 2018 and their placement within the fair value hierarchy are as follows:

								Fair Value Hierarchy
								Quoted
								Prices in
								Active			Significant
								Markets for			Other			Significant
								Identical			Observable			Unobservable
		Carrying			Fair			Assets			Inputs			Inputs
December 31, 2019		Value			Value			(level 1)			(level 2)			(Level 3)
Financial assets:
Cash and cash equivalents		$	31,153		$	31,153		$	31,153
Investment securities:
Available-for-sale			330,478			330,478			24,128		$	306,350
Common equity securities			423			423			423
Held-to-maturity			7,656			7,889						7,889
Loans held for sale			986			986						986
Net loans			1,915,563			1,881,658								$	1,881,658
Accrued interest receivable			6,981			6,981						6,981
Mortgage servicing rights			738			1,444						1,444
Restricted equity securities (FHLB and other)			10,201			10,201						10,201
Interest rate floor			944			944						944
Interest rate swaps			4,728			4,728						4,728
Total		$	2,309,851		$	2,276,885
Financial liabilities:
Deposits		$	1,971,489		$	1,972,084					$	1,972,084
Long-term debt			32,733			33,075						33,075
Accrued interest payable			1,277			1,277						1,277
Interest rate swaps			4,680			4,680						4,680
Total		$	2,010,179		$	2,011,116

								Fair Value Hierarchy
								Quoted
								Prices in
								Active			Significant
								Markets for			Other			Significant
								Identical			Observable			Unobservable
		Carrying			Fair			Assets			Inputs			Inputs
December 31, 2018		Value			Value			(level 1)			(level 2)			(Level 3)
Financial assets:
Cash and cash equivalents		$	32,616		$	32,616		$	32,616
Investment securities:
Available-for-sale			269,682			269,682			25,952		$	244,090
Common equity securities			291			291			291
Held-to-maturity			8,361			8,380						8,380
Loans held for sale			749			749						749
Net loans			1,801,887			1,762,449								$	1,762,449
Accrued interest receivable			7,115			7,115						7,115
Mortgage servicing rights			718			1,710						1,710
Restricted equity securities (FHLB and other)			7,462			7,462						7,462
Interest rate floor			553			553						553
Interest rate swaps			108			108						108
Total		$	2,129,542		$	2,091,115
Financial liabilities:
Deposits		$	1,875,022		$	1,874,520					$	1,874,520
Short-term borrowings			86,500			86,500						86,500
Long-term debt			37,906			38,071						38,071
Accrued interest payable			1,195			1,195						1,195
Interest rate swaps			138			138						138
Total		$	2,000,761		$	2,000,424

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration