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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of December 31, 2019 and 2018, are reflected below. The aggregate fair values in the table below do not represent the total market value of the Bank’s assets and liabilities.  The table excludes the following: Bank Premises and Equipment, Goodwill, Mortgage Servicing Rights, Other Real Estate Owned, Other Assets, Other Liabilities and Accrued Expenses.

		(In Thousands)
		December 31, 2019																					December 31, 2018
		Carrying				Fair																	Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3					Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	51,296			$	51,296			$	51,296			$	-			$	-				$	38,365			$	38,365			$	38,365			$	-			$	-
Interest-bearing time deposits			4,309				4,331				-				4,331				-					4,019				3,954				-				3,954				-
Securities - available-for-sale			222,293				222,293				10,021				210,782				1,490					168,447				168,447				36,935				130,085				1,427
Other securities			5,810				5,810				-				-				5,810					3,679				3,679				-				-				3,679
Loans held for sale			4,248				4,248				-				-				4,248					495				495				-				-				495
Loans, net			1,211,771				1,188,014				-				-				1,188,014					839,599				823,914				-				-				823,914
Interest receivable			6,769				6,769				-				-				6,769					4,542				4,542				-				-				4,542
Financial Liabilities:
Interest bearing deposits		$	746,628			$	746,628			$	-			$	-			$	746,628				$	525,955			$	525,955			$	-			$	-			$	525,955
Noninterest bearing deposits			265,156				265,156				-				265,156				-					215,422				215,422				-				215,422				-
Time deposits			276,563				277,008				-				-				277,008					187,413				187,545				-				-				187,545
Total Deposits			1,288,347				1,288,792				-				265,156				1,023,636					928,790				928,922				-				215,422				713,500
Fed funds purchased and    securities sold under    agreement to repurchase			48,073				48,073				-				-				48,073					32,181				32,181				-				-				32,181
Federal Home Loan Bank advances			24,806				24,811				-				-				24,811					-				-				-				-				-
Interest payable			754				754				-				-				754					418				418				-				-				418

Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 2019 and December 31, 2018 segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis (in Thousands)
		Quoted Prices in				Significant				Significant
		Active Markets				Observable				Observable
		for Identical				Inputs				Inputs
December 31, 2019		Assets (Level 1)				(Level 2)				(Level 3)
Assets-(Securities Available-for-Sale)
U.S. Treasury		$	10,021			$	-			$	-
U.S. Government agencies							62,445				-
Mortgage-backed securities			-				95,197				-
State and local governments			-				53,140				1,490
Total Securities Available-for-Sale		$	10,021			$	210,782			$	1,490

		Quoted Prices in				Significant				Significant
		Active Markets				Observable				Observable
		for Identical				Inputs				Inputs
December 31, 2018		Assets (Level 1)				(Level 2)				(Level 3)
Assets-(Securities Available-for-Sale)
U.S. Treasury		$	22,830			$	-			$	-
U.S. Government agencies			14,105				55,222				-
Mortgage-backed securities			-				36,262				-
State and local governments			-				38,601				1,427
Total Securities Available-for-Sale		$	36,935			$	130,085			$	1,427

Changes in the Level 3 Fair-Value Category of Which Unobservable Inputs

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local				State and Local				State and Local
		Governments				Governments				Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2019		$	-			$	1,427			$	1,427
Change in Market Value			-				63				63
Purchases			-				-				-
Sales			-				-				-
Payments & Maturities			-				-				-
Balance at December 31, 2019		$	-			$	1,490			$	1,490

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local				State and Local				State and Local
		Governments				Governments				Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2018		$	-			$	1,428			$	1,428
Change in Market Value			-				(1	)			(1	)
Purchases			-				-				-
Sales			-				-				-
Payments & Maturities			-				-				-
Balance at December 31, 2018		$	-			$	1,427			$	1,427

Collateral Dependent Impaired Loans and Other Real Estate

The following table presents collateral dependent impaired loans and other real estate owned as recorded at fair value:

		($ in Thousands)
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2019
						Quoted Prices in
						Markets for				Significant				Significant
		Balance at				Identical				Observable Inputs				Unobservable Inputs
		December 31, 2019				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired     loans		$	444			$	-			$	-			$	444
Other real estate owned -     commercial			164				-				-				164

		($ in Thousands)
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2018
						Quoted Prices in
						Markets for				Significant				Significant
		Balance at				Identical				Observable Inputs				Unobservable Inputs
		December 31, 2018				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired     loans		$	215			$	-			$	-			$	215
Other real estate owned -     commercial			-				-				-				-

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

		(In Thousands)
		Fair Value at December 31, 2019				Valuation Technique		Unobservable Inputs		Range (Weighted Average)
State and local    government		$	1,490			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0-5% (2.52%)
Collateral dependent    impaired loans			444			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0-50% (30.73%)
Other real estate    owned - commercial			164			Appraisals		Discount to reflect current market		0-20 % ( 23.31%)

		(In Thousands)
		Fair Value at December 31, 2018				Valuation Technique		Unobservable Inputs		Range (Weighted Average)
State and local    government		$	1,427			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0-5% (3.51%)
Collateral dependent    impaired loans			215			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0-50% (12.38%)
Other real estate    owned - commercial			-			Appraisals		Discount to reflect current market		— % ( — )

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Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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