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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured on Recurring Basis Measured at Fair Value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2022, December 31, 2021 and March 31, 2021.

			At March 31, 2022
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	22,658,000					$	—					$	22,658,000
Mortgage-backed securities			—						252,184,000						—						252,184,000
State and political subdivisions			—						33,833,000						—						33,833,000
Asset-backed securities			—						4,340,000						—						4,340,000
Total securities available for sale			—						313,015,000						—						313,015,000
Customer loan interest swap agreements			—						2,665,000						—						2,665,000
Total assets			$	—					$	315,680,000					$	—					$	315,680,000

			At March 31, 2022
			Level 1						Level 2						Level 3						Total
Customer loan interest swap agreements			$	—					$	2,665,000					$	—					$	2,665,000
Total liabilities			$	—					$	2,665,000					$	—					$	2,665,000

			At December 31, 2021
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	21,899,000					$	—					$	21,899,000
Mortgage-backed securities			—						254,900,000						—						254,900,000
State and political subdivisions			—						39,122,000						—						39,122,000
Asset-backed securities			—						4,645,000						—						4,645,000
Total securities available for sale			—						320,566,000						—						320,566,000
Customer loan interest swap agreements			—						2,591,000						—						2,591,000
Total assets			$	—					$	323,157,000					$	—					$	323,157,000

			At December 31, 2021
			Level 1						Level 2						Level 3						Total
Customer loan interest swap agreements			$	—					$	2,591,000					$	—					$	2,591,000
Total liabilities			$	—					$	2,591,000					$	—					$	2,591,000

			At March 31, 2021
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	21,485,000					$	—					$	21,485,000
Mortgage-backed securities			—						227,914,000						—						227,914,000
State and political subdivisions			—						37,558,000						—						37,558,000
Asset-backed securities			—						7,580,000						—						7,580,000
Total securities available for sale			—						294,537,000						—						294,537,000
Interest rate swap agreements			—						1,071,000						—						1,071,000
Customer loan interest swap agreements			—						2,606,000						—						2,606,000
Total interest swap agreements			—						3,677,000						—						3,677,000
Total assets			$	—					$	298,214,000					$	—					$	298,214,000

			At March 31, 2021
			Level 1						Level 2						Level 3						Total
Interest rate swap agreements			$	—					$	2,923,000					$	—					$	2,923,000
Customer loan interest swap agreements			—						2,606,000						—						2,606,000
Total liabilities			$	—					$	5,529,000					$	—					$	5,529,000

Schedule of Assets Measured on Nonrecurring Basis Measured at Fair Value

The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Mortgage servicing rights are presented net of an impairment reserve of $8,000 at March 31, 2022, $26,000 at December 31, 2021 and $92,000 at March 31, 2021. Other real estate owned is presented net of an allowance of 45,000 at March 31, 2021. The Company had no other real estate owned or related allowance at March 31, 2022 and December 31, 2021. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures.

Impaired loans below are presented net of specific allowances of $417,000, $441,000 and $641,000 at March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

			At March 31, 2022
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	3,435,000					$	—					$	3,435,000
Impaired loans			—						200,000						—						200,000
Total assets			$	—					$	3,635,000					$	—					$	3,635,000

			At December 31, 2021
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	3,041,000					$	—					$	3,041,000
Impaired loans			—						224,000						—						224,000
Total assets			$	—					$	3,265,000					$	—					$	3,265,000

			At March 31, 2021
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	2,608,000					$	—					$	2,608,000
Other real estate owned			—						401,000						—						401,000
Impaired loans			—						234,000						—						234,000
Total assets			$	—					$	3,243,000					$	—					$	3,243,000

Schedule of Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair values for financial instruments as of March 31, 2022 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	377,183,000					$	353,191,000					$	—					$	353,191,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			582,270,000						580,407,000						—						—						580,407,000
Construction			101,927,000						101,601,000						—						—						101,601,000
Other			264,345,000						263,502,000						—						5,000						263,497,000
Municipal			50,692,000						51,015,000						—						—						51,015,000
Residential
Term			563,745,000						547,611,000						—						102,000						547,509,000
Construction			36,091,000						34,873,000						—						—						34,873,000
Home equity line of credit			71,808,000						70,029,000						—						93,000						69,936,000
Consumer			21,104,000						19,493,000						—						—						19,493,000
Total loans			1,691,982,000						1,668,531,000						—						200,000						1,668,331,000
Mortgage servicing rights			2,676,000						3,435,000						—						3,435,000						—
Financial liabilities
Local certificates of deposit			$	229,055,000					$	223,383,000					$	—					$	223,383,000					$	—
National certificates of deposit			380,892,000						377,302,000						—						377,302,000						—
Total certificates of deposits			609,947,000						600,685,000						—						600,685,000						—
Repurchase agreements			78,623,000						72,990,000						—						72,990,000						—
Federal Home Loan Bank advances			55,089,000						55,399,000						—						55,399,000						—
Total borrowed funds			133,712,000						128,389,000						—						128,389,000						—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2021 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	370,040,000					$	375,327,000					$	—					$	375,327,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			570,134,000						570,187,000						—						—						570,187,000
Construction			78,522,000						78,529,000						—						—						78,529,000
Other			261,373,000						261,759,000						—						5,000						261,754,000
Municipal			48,185,000						48,634,000						—						—						48,634,000
Residential
Term			548,530,000						553,098,000						—						219,000						552,879,000
Construction			31,596,000						31,966,000						—						—						31,966,000
Home equity line of credit			72,587,000						72,381,000						—						—						72,381,000
Consumer			22,035,000						20,591,000						—						—						20,591,000
Total loans			1,632,962,000						1,637,145,000						—						224,000						1,636,921,000
Mortgage servicing rights			2,671,000						3,041,000						—						3,041,000						—
Financial liabilities
Local certificates of deposit			$	232,724,000					$	231,265,000					$	—					$	231,265,000					$	—
National certificates of deposit			333,481,000						337,025,000						—						337,025,000						—
Total deposits			566,205,000						568,290,000						—						568,290,000						—
Repurchase agreements			81,251,000						79,065,000						—						79,065,000						—
Federal Home Loan Bank advances			55,091,000						55,998,000						—						55,998,000						—
Total borrowed funds			136,342,000						135,063,000						—						135,063,000						—

The carrying amount and estimated fair values for financial instruments as of March 31, 2021 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	385,352,000					$	388,836,000					$	—					$	388,836,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			463,854,000						459,158,000						—						—						459,158,000
Construction			52,702,000						52,168,000						—						—						52,168,000
Other			293,139,000						289,541,000						—						50,000						289,491,000
Municipal			49,279,000						48,698,000						—						—						48,698,000
Residential
Term			520,682,000						526,134,000						—						184,000						525,950,000
Construction			24,656,000						25,028,000						—						—						25,028,000
Home equity line of credit			76,201,000						74,813,000						—						—						74,813,000
Consumer			23,187,000						21,304,000						—						—						21,304,000
Total loans			1,503,700,000						1,496,844,000						—						234,000						1,496,610,000
Mortgage servicing rights			2,399,000						2,608,000						—						2,608,000						—
Financial liabilities
Local certificates of deposit			$	246,976,000					$	249,458,000					$	—					$	249,458,000					$	—
National certificates of deposit			387,354,000						359,899,000						—						359,899,000						—
Total certificates of deposits			634,330,000						609,357,000						—						609,357,000						—
Repurchase agreements			71,952,000						70,105,000						—						70,105,000						—
Federal Home Loan Bank advances			157,696,000						159,184,000						—						159,184,000						—
Total borrowed funds			229,648,000						229,289,000						—						229,289,000						—

X

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, 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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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