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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and December 31, 2020 are reflected below.

		(In Thousands)
		September 30, 2021
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	158,078			$	158,078			$	158,078			$	-			$	-
Interest-bearing time deposits			14,622				14,651				-				14,651				-
Securities - available-for-sale			426,717				426,717				73,804				349,146				3,767
Other securities			4,905				4,905				-				-				4,905
Loans held for sale			3,735				3,735				-				-				3,735
Loans, net			1,479,864				1,434,960				-				-				1,434,960
Interest receivable			7,401				7,401				-				-				7,401
Financial Liabilities:
Interest bearing deposits		$	1,175,769			$	1,175,816			$	-			$	-			$	1,175,816
Non-interest bearing deposits			438,076				438,076				-				438,076				-
Time deposits			252,383				248,399				-				-				248,399
Total Deposits			1,866,228				1,862,291				-				438,076				1,424,215
Federal funds purchased and securities sold under    agreement to repurchase			29,601				29,601				-				-				29,601
Federal Home Loan Bank advances			17,868				17,869				-				-				17,869
Subordinated notes, net of unamortized issuance costs			34,441				35,000				-				35,000				-
Interest payable			588				588				-				-				588

		(In Thousands)
		December 31, 2020
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	175,706			$	175,706			$	175,706			$	-			$	-
Interest-bearing time deposits			4,653				4,677				-				4,677				-
Securities - available-for-sale			307,812				307,812				-				306,250				1,562
Other securities			5,939				5,939				-				-				5,939
Loans held for sale			7,740				7,740				-				-				7,740
Loans, net			1,289,318				1,261,440				-				-				1,261,440
Interest receivable			6,188				6,188				-				-				6,188
Financial Liabilities:
Interest bearing deposits		$	997,462			$	1,004,608			$	-			$	-			$	1,004,608
Non-interest bearing deposits			351,147				351,147				-				351,147				-
Time deposits			247,553				250,135				-				-				250,135
Total Deposits			1,596,162				1,605,890				-				351,147				1,254,743
Federal funds purchased and securities sold under    agreement to repurchase			30,239				30,239				-				-				30,239
Federal Home Loan Bank advances			17,861				17,872				-				-				17,872
Subordinated notes, net of unamortized issuance costs			-				-				-				-				-
Interest payable			338				338				-				-				338

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, 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)
September 30, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	73,804			$	-			$	-
U.S. Government agencies			-				163,196				-
Mortgage-backed securities			-				125,099				-
State and local governments			-				60,851				3,767
Total Securities Available-for-Sale		$	73,804			$	349,146			$	3,767

December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	-			$	-			$	-
U.S. Government agencies			-				124,241				-
Mortgage-backed securities			-				113,056				-
State and local governments			-				68,953				1,562
Total Securities Available-for-Sale		$	-			$	306,250			$	1,562

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

The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three and nine month periods ended September 30, 2021 and September 30, 2020.

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at July 1, 2021		$	2,410			$	1,538			$	3,948
Change in Market Value			(9	)			(17	)			(26	)
Purchases			-				-				-
Payments & Maturities			(155	)			-				(155	)
Balance at September 30, 2021		$	2,246			$	1,521			$	3,767

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at July 1, 2020		$	-			$	1,550			$	1,550
Change in Market Value			-				35				35
Payments & Maturities			-				-				-
Balance at September 30, 2020		$	-			$	1,585			$	1,585

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at January 1, 2021		$	-			$	1,562			$	1,562
Change in Market Value			(17	)			(41	)			(58	)
										.
Purchases			2,418				-				2,418
Payments & Maturities			(155	)			-				(155	)
Balance at September 30, 2021		$	2,246			$	1,521			$	3,767

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at January 1, 2020		$	-			$	1,490			$	1,490
Change in Market Value			-				95				95
Payments & Maturities			-				-				-
Balance at September 30, 2020		$	-			$	1,585			$	1,585

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)								Range
		Fair Value at								(Weighted
		September 30, 2021				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	3,767			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0.34- 1.34% (0.86%)
Collateral dependent    impaired loans			6,925			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		34.54-81.41% (32.44%)
Other real estate owned -    residential			30			Appraisals		Discount to reflect current market		0.0- 7.32% (50.99%)

		(In Thousands)								Range
		Fair Value at								(Weighted
		December 31, 2020				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	1,562			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		1.19-1.19% (1.19%)
Collateral dependent    impaired loans			7,703			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0.71-100% (17.71%)
Other real estate owned -    residential			-			Appraisals		Discount to reflect current market		— % ( — )

Impaired Loans

The following table presents impaired loans as recorded at fair value on September 30, 2021 and December 31, 2020:

		Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2021
		(In Thousands)
		Balance at September 30, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent    impaired loans		$	6,925			$	-			$	-			$	6,925
Other real estate    owned - residential			30				-				-				30

		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2020
		(In Thousands)
		Balance at December 31, 2020				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent    impaired loans		$	7,703			$	-			$	-			$	7,703
Other real estate    owned - residential			-				-				-				-

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- Definition

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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