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Note 17 - Financial Instruments

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

Note 17 – Financial Instruments

Financial instruments as of the dates indicated were as follows:

										Quoted Prices
										In Active				Significant
										Markets for				Other				Significant
										Identical				Observable				Unobservable
(Dollars in thousands)		Carrying				Estimated				Assets				Inputs				Inputs
		Amount				Fair Value				(Level 1)				(Level 2)				(Level 3)
December 31, 2020
Assets
Cash and cash equivalents		$	79,519			$	79,519			$	79,519			$	-			$	-
Equity securities at fair value			2,896				2,896				1,411				-				1,485
Securities available for sale			574,787				574,787				-				563,364				11,423
Federal Home Loan Bank and Federal Reserve Bank stock			8,004				8,004				-				8,004				-
Loans held for sale			12,921				13,350				-				13,350				-
Loans to other financial institutions			35,209				35,209				-				35,209				-
Loans, net			1,062,075				1,057,786				-				-				1,057,786
Accrued interest receivable			6,521				6,521				-				6,521				-
Interest rate lock commitments			842				842				-				842				-

Liabilities
Noninterest-bearing deposits			477,654				477,654				-				477,654				-
Interest-bearing deposits			1,196,924				1,197,964				-				1,197,964				-
Borrowings			9,327				9,143				-				9,143				-
Subordinated debentures			3,089				3,089				-				3,089				-
Accrued interest payable			183				183				-				183				-

December 31, 2019
Assets
Cash and due from banks		$	59,558			$	59,558			$	59,558			$	-			$	-
Equity securities at fair value			2,851				2,851				1,379				-				1,472
Securities available for sale			339,579				339,579				-				327,212				12,367
Federal Home Loan Bank and Federal Reserve Bank stock			6,458				6,458				-				6,458				-
Loans held for sale			3,095				3,134				-				3,134				-
Loans to other financial institutions			51,048				51,048				-				51,048				-
Loans, net			797,991				793,270				-				-				793,270
Accrued interest receivable			3,965				3,965				-				3,965				-
Interest rate lock commitments			68				68				-				68				-

Liabilities
Noninterest-bearing deposits			287,460				287,460				-				287,460				-
Interest-bearing deposits			867,142				867,154				-				867,154				-
Borrowings			33,198				33,243				-				33,243				-
Accrued interest payable			411				411				-				411				-

The estimated fair values approximate the carrying amounts for all financial instruments except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 18. The estimated fair value for loans follows the guidance in ASU 2016-01 which prescribes an “exit price” approach, which incorporates discounts for credit, liquidity, and marketability. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair value of loans also included the mark to market adjustments related to the Company’s merger with County.

The estimated fair value of deposits is based on comparing the average rate paid on deposits compared to the three month LIBOR rate which is assumed to be the replacement value of these deposits. The estimated fair values for time deposits and FHLB advances are based on the rates paid at December 31 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal.