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Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
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, 2023 and December 31, 2022, 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, 2023 |  | 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 |  | $ | 81,978 |  |  | $ | - |  |  | $ | - |
U.S. Government agencies |  |  | - |  |  |  | 123,762 |  |  |  | - |
Mortgage-backed securities |  |  | - |  |  |  | 76,480 |  |  |  | - |
State and local governments |  |  | - |  |  |  | 63,608 |  |  |  | 2,427 |
Total Securities Available-for-Sale |  | $ | 81,978 |  |  | $ | 263,850 |  |  | $ | 2,427 |
|  | (In Thousands) |
December 31, 2022 |  | 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 |  | $ | 94,678 |  |  | $ | - |  |  | $ | - |
U.S. Government agencies |  |  | - |  |  |  | 139,767 |  |  |  | - |
Mortgage-backed securities |  |  | - |  |  |  | 86,927 |  |  |  | - |
State and local governments |  |  | - |  |  |  | 66,072 |  |  |  | 3,345 |
Total Securities Available-for-Sale |  | $ | 94,678 |  |  | $ | 292,766 |  |  | $ | 3,345 |
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, 2023 and September 30, 2022. During the three month period ended March 31, 2022, there was one security transferred from Level 3 to Level 2.
|  | (In Thousands) |
|  | Fair Value Measurements Using Significant |
|  | Unobservable Inputs (Level 3) |
|  | State and Local Governments |
|  | Tax-Exempt |  |  | Taxable |  |  | Total |
Balance at July 1, 2023 |  | $ | 1,831 |  |  | $ | 1,278 |  |  | $ | 3,109 |
Change in Fair Value |  |  | - |  |  |  | (25 | ) |  |  | (25 | )
Payments, Maturities & Calls |  |  | (657 | ) |  |  | - |  |  |  | (657 | )
Reclassification & Adjustments |  |  | - |  |  |  | - |  |  |  | - |
Balance at September 30, 2023 |  | $ | 1,174 |  |  | $ | 1,253 |  |  | $ | 2,427 |
|  | (In Thousands) |
|  | Fair Value Measurements Using Significant |
|  | Unobservable Inputs (Level 3) |
|  | State and Local Governments |
|  | Tax-Exempt |  |  | Taxable |  |  | Total |
Balance at July 1, 2022 |  | $ | 2,089 |  |  | $ | 1,325 |  |  | $ | 3,414 |
Change in Fair Value |  |  | (19 | ) |  |  | (29 | ) |  |  | (48 | )
Payments, Maturities & Calls |  |  | - |  |  |  | - |  |  |  | - |
Reclassification & Adjustments |  |  | - |  |  |  | - |  |  |  | - |
Balance at September 30, 2022 |  | $ | 2,070 |  |  | $ | 1,296 |  |  | $ | 3,366 |
|  | (In Thousands) |
|  | Fair Value Measurements Using Significant |
|  | Unobservable Inputs (Level 3) |
|  | State and Local Governments |
|  | Tax-Exempt |  |  | Taxable |  |  | Total |
Balance at January 1, 2023 |  | $ | 2,071 |  |  | $ | 1,274 |  |  | $ | 3,345 |
Change in Fair Value |  |  | 5 |  |  |  | (21 | ) |  |  | (16 | )
Payments, Maturities & Calls |  |  | (902 | ) |  |  | - |  |  |  | (902 | )
Reclassification & Adjustments |  |  | - |  |  |  | - |  |  |  | - |
Balance at September 30, 2023 |  | $ | 1,174 |  |  | $ | 1,253 |  |  | $ | 2,427 |
|  | (In Thousands) |
|  | Fair Value Measurements Using Significant |
|  | Unobservable Inputs (Level 3) |
|  | State and Local Governments |
|  | Tax-Exempt |  |  | Taxable |  |  | Total |
Balance at January 1, 2022 |  | $ | 2,307 |  |  | $ | 2,466 |  |  | $ | 4,773 |
Change in Fair Value |  |  | (77 | ) |  |  | (181 | ) |  |  | (258 | )
Payments, Maturities & Calls |  |  | (160 | ) |  |  | - |  |  |  | (160 | )
Reclassification & Adjustments |  |  | - |  |  |  | (989 | ) |  |  | (989 | )
Balance at September 30, 2022 |  | $ | 2,070 |  |  | $ | 1,296 |  |  | $ | 3,366 |
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, 2023 |  |  | Valuation Technique |  | Unobservable Inputs |  | Average)
State and local government |  | $ | 2,427 |  |  | Discounted Cash Flow |  | Credit strength of underlying project or entity / Discount rate |  | 3.96- 5.78% (5.18%)
Collateral dependent loans |  |  | 312 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 25.00-50.00% (26.37%)
Real estate servicing rights |  |  | 35 |  |  | Discounted Cash Flow |  | Constant prepayment rate and probability of default / Discount rate |  | 5.71- 7.33% (7.29%)
|  | (In Thousands) |  |  |  |  |  |  | Range
|  | Fair Value at |  |  |  |  |  |  | (Weighted
|  | December 31, 2022 |  |  | Valuation Technique |  | Unobservable Inputs |  | Average)
State and local government |  | $ | 3,345 |  |  | Discounted Cash Flow |  | Credit strength of underlying project or entity / Discount rate |  | 2.08-5.01% (4.38%)
Collateral dependent impaired loans |  |  | 2,667 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 20.00-29.01% (24.13%)
Real estate servicing rights |  |  | - |  |  | Discounted Cash Flow |  | Constant prepayment rate and probability of default / Discount rate |  | — % ( — )
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022:
|  | (In Thousands) |
|  | Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2023 |
|  | Balance at September 30, 2023 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Collateral dependent loans |  | $ | 312 |  |  | $ | - |  |  | $ | - |  |  | $ | 312 |
Real estate servicing rights |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | 35 |
|  | (In Thousands) |
|  | Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2022 |
|  | Balance at December 31, 2022 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Collateral dependent impaired loans |  | $ | 2,667 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,667 |
Real estate servicing rights |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
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, 2023 and December 31, 2022 are reflected below.
|  | (In Thousands) |
|  | September 30, 2023 |
|  | Carrying |  |  | Fair |  |  |  |  |  |  |  |  |  |
|  | Amount |  |  | Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 153,182 |  |  | $ | 153,182 |  |  | $ | 153,182 |  |  | $ | - |  |  | $ | - |
Interest-bearing time deposits |  |  | 2,989 |  |  |  | 2,977 |  |  |  | - |  |  |  | 2,977 |  |  |  | - |
Securities - available-for-sale |  |  | 348,255 |  |  |  | 348,255 |  |  |  | 81,978 |  |  |  | 263,850 |  |  |  | 2,427 |
Other securities |  |  | 16,995 |  |  |  | 16,995 |  |  |  | - |  |  |  | - |  |  |  | 16,995 |
Loans held for sale |  |  | 1,039 |  |  |  | 1,023 |  |  |  | - |  |  |  | - |  |  |  | 1,023 |
Loans, net |  |  | 2,504,329 |  |  |  | 2,336,246 |  |  |  | - |  |  |  | - |  |  |  | 2,336,246 |
Interest receivable |  |  | 12,902 |  |  |  | 12,902 |  |  |  | - |  |  |  | - |  |  |  | 12,902 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits |  | $ | 1,369,477 |  |  | $ | 1,369,406 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,369,406 |
Non-interest bearing deposits |  |  | 505,358 |  |  |  | 505,358 |  |  |  | 505,358 |  |  |  | - |  |  |  | - |
Time deposits |  |  | 700,445 |  |  |  | 691,341 |  |  |  | - |  |  |  | - |  |  |  | 691,341 |
Total Deposits |  |  | 2,575,280 |  |  |  | 2,566,105 |  |  |  | 505,358 |  |  |  | - |  |  |  | 2,060,747 |
Federal funds purchased and securities sold under agreement to repurchase |  |  | 30,527 |  |  |  | 30,527 |  |  |  | - |  |  |  | - |  |  |  | 30,527 |
Federal Home Loan Bank advances |  |  | 266,286 |  |  |  | 260,871 |  |  |  | - |  |  |  | - |  |  |  | 260,871 |
Other borrowings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Subordinated notes, net of unamortized issuance costs |  |  | 34,673 |  |  |  | 30,642 |  |  |  | - |  |  |  | 30,642 |  |  |  | - |
Interest payable |  |  | 4,760 |  |  |  | 4,760 |  |  |  | - |  |  |  | - |  |  |  | 4,760 |
|  | (In Thousands) |
|  | December 31, 2022 |
|  | Carrying |  |  | Fair |  |  |  |  |  |  |  |  |  |
|  | Amount |  |  | Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 84,409 |  |  | $ | 84,409 |  |  | $ | 84,409 |  |  | $ | - |  |  | $ | - |
Interest-bearing time deposits |  |  | 4,442 |  |  |  | 4,440 |  |  |  | - |  |  |  | 4,440 |  |  |  | - |
Securities - available-for-sale |  |  | 390,789 |  |  |  | 390,789 |  |  |  | 94,678 |  |  |  | 292,766 |  |  |  | 3,345 |
Other securities |  |  | 9,799 |  |  |  | 9,799 |  |  |  | - |  |  |  | - |  |  |  | 9,799 |
Loans held for sale |  |  | 827 |  |  |  | 815 |  |  |  | - |  |  |  | - |  |  |  | 815 |
Loans, net |  |  | 2,336,074 |  |  |  | 2,171,152 |  |  |  | - |  |  |  | - |  |  |  | 2,171,152 |
Interest receivable |  |  | 10,440 |  |  |  | 10,440 |  |  |  | - |  |  |  | - |  |  |  | 10,440 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits |  | $ | 1,378,090 |  |  | $ | 1,377,944 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,377,944 |
Non-interest bearing deposits |  |  | 532,794 |  |  |  | 532,794 |  |  |  | 532,794 |  |  |  | - |  |  |  | - |
Time deposits |  |  | 557,980 |  |  |  | 543,737 |  |  |  | - |  |  |  | - |  |  |  | 543,737 |
Total Deposits |  |  | 2,468,864 |  |  |  | 2,454,475 |  |  |  | 532,794 |  |  |  | - |  |  |  | 1,921,681 |
Federal funds purchased and securities sold under agreement to repurchase |  |  | 54,206 |  |  |  | 54,206 |  |  |  | - |  |  |  | - |  |  |  | 54,206 |
Federal Home Loan Bank advances |  |  | 127,485 |  |  |  | 125,761 |  |  |  | - |  |  |  | - |  |  |  | 125,761 |
Other borrowings |  |  | 10,000 |  |  |  | 10,000 |  |  |  | - |  |  |  | 10,000 |  |  |  | - |
Subordinated notes, net of unamortized issuance costs |  |  | 34,586 |  |  |  | 30,993 |  |  |  | - |  |  |  | 30,993 |  |  |  | - |
Interest payable |  |  | 1,739 |  |  |  | 1,739 |  |  |  | - |  |  |  | - |  |  |  | 1,739 |

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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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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