FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

Note 17 – Fair Value of Financial Instruments

The carrying values and estimated fair values of financial instruments are summarized as follows:

Fair Value Measurements at:


(Dollars in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)
December 31, 2021
Financial assets:
Cash and cash equivalents	$	307,437	$	307,437	$	307,437	$	—	$	—
Certificates of deposit with banks	2,719		2,738		—		2,738		—
Securities available-for-sale	421,466		421,466		—		379,703		41,763
Equity securities	32,402		32,402		247		—		32,155

Loans	1,851,572		1,865,013		—		—		1,865,013
Servicing rights	2,812		2,831		—		—		2,831

Interest rate swap	6,702		6,702		—		6,702		—
Accrued interest receivable	7,860		7,860		—		2,402		5,458
Fair value hedge	1,552		1,552		—		1,552		—
Bank-owned life insurance	42,257		42,257		—		42,257		—

Financial liabilities:
Deposits	$	2,377,605	$	2,338,868	$	—	$	2,338,868	$	—
Repurchase agreements	11,385		11,385		—		11,385		—


Fair value hedge	807		807		—		807		—
Interest rate swap	6,702		6,702		—		6,702		—
Accrued interest payable	690		690		—		690		—
Subordinated debt	73,030		74,774		—		74,774		—

December 31, 2020
Financial assets:
Cash and cash equivalents	$	263,893	$	263,893	$	263,893	$	—	$	—
Certificates of deposits with banks	11,803		11,986		—		11,986		—
Securities available-for-sale	410,624		410,624		—		366,945		43,679
Equity securities	27,585		27,585		472		—		27,113
Loans held-for-sale	1,062		1,062		—		1,062		—
Loans	1,427,900		1,434,275		—		—		1,434,275
Mortgage servicing rights	2,942		2,942		—		—		2,942

Interest rate swap	13,822		13,822		—		13,822		—

Fair value hedge	2,215		2,215		—		2,215		—
Accrued interest receivable	7,793		7,793		—		2,770		5,023
Bank-owned life insurance	41,262		41,262		—		41,262		—

Financial liabilities:
Deposits	$	1,982,389	$	1,964,860	$	—	$	1,964,860	$	—
Repurchase agreements	10,266		10,266		—		10,266		—


Fair value hedge	2,141		2,141		—		2,141
Interest rate swap	13,822		13,822		—		13,822		—
Accrued interest payable	572		572		—		572		—
Subordinated debt	43,407		45,536		—		45,536		—