XML 46 R36.htm IDEA: XBRL DOCUMENT v3.22.2

Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2022, December 31, 2021 and June 30, 2021.

			At June 30, 2022
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	21,067,000					$	—					$	21,067,000
Mortgage-backed securities			—						244,682,000						—						244,682,000
State and political subdivisions			—						31,950,000						—						31,950,000
Asset-backed securities			—						4,038,000						—						4,038,000
Total securities available for sale			—						301,737,000						—						301,737,000
Interest rate swap agreements			—						185,000						—						185,000
Customer loan interest swap agreements			—						3,440,000						—						3,440,000
Total interest rate swap agreements			—						3,625,000						—						3,625,000
Total assets			$	—					$	305,362,000					$	—					$	305,362,000

			At June 30, 2022
			Level 1						Level 2						Level 3						Total
Customer loan interest swap agreements			$	—					$	3,440,000					$	—					$	3,440,000
Total liabilities			$	—					$	3,440,000					$	—					$	3,440,000

			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 June 30, 2021
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	22,197,000					$	—					$	22,197,000
Mortgage-backed securities			—						246,290,000						—						246,290,000
State and political subdivisions			—						32,688,000						—						32,688,000
Asset-backed securities			—						5,072,000						—						5,072,000
Total securities available for sale			—						306,247,000						—						306,247,000
Interest rate swap agreements			—						482,000						—						482,000
Customer loan interest swap agreements			—						2,827,000						—						2,827,000
Total interest swap agreements			—						3,309,000						—						3,309,000
Total assets			$	—					$	309,556,000					$	—					$	309,556,000

			At June 30, 2021
			Level 1						Level 2						Level 3						Total
Interest rate swap agreements			$	—					$	3,119,000					$	—					$	3,119,000
Customer loan interest swap agreements			—						2,827,000						—						2,827,000
Total liabilities			$	—					$	5,946,000					$	—					$	5,946,000

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 $26,000 at December 31, 2021 and $93,000 at June 30, 2021. There was no impairment reserve as of June 30, 2022. Other real estate owned is presented net of an allowance of $0 at June 30, 2022 and 2021. The Company had no other real estate owned or related allowance at 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 $335,000, $441,000 and $473,000 at June 30, 2022, December 31, 2021, and June 30, 2021, respectively.

			At June 30, 2022
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	3,751,000					$	—					$	3,751,000
Other real estate owned			—						51,000						—						51,000
Impaired loans			—						5,000						—						5,000
Total assets			$	—					$	3,807,000					$	—					$	3,807,000

			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 June 30, 2021
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	2,777,000					$	—					$	2,777,000
Other real estate owned			—						224,000						—						224,000
Impaired loans			—						189,000						—						189,000
Total assets			$	—					$	3,190,000					$	—					$	3,190,000

Schedule of Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair values for financial instruments as of June 30, 2022 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	379,693,000					$	335,950,000					$	—					$	335,950,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			611,302,000						610,394,000						—						—						610,394,000
Construction			127,628,000						127,438,000						—						—						127,438,000
Other			272,386,000						272,521,000						—						5,000						272,516,000
Municipal			46,658,000						47,414,000						—						—						47,414,000
Residential
Term			580,076,000						548,022,000						—						—						548,022,000
Construction			43,795,000						40,690,000						—						—						40,690,000
Home equity line of credit			70,620,000						73,594,000						—						—						73,594,000
Consumer			20,378,000						19,026,000						—						—						19,026,000
Total loans			1,772,843,000						1,739,099,000						—						5,000						1,739,094,000
Mortgage servicing rights			2,644,000						3,751,000						—						3,751,000						—
Financial liabilities
Local certificates of deposit			$	254,717,000					$	246,032,000					$	—					$	246,032,000					$	—
National certificates of deposit			449,693,000						441,369,000						—						441,369,000						—
Total certificates of deposits			704,410,000						687,401,000						—						687,401,000						—
Repurchase agreements			71,501,000						71,448,000						—						71,448,000						—
Federal Home Loan Bank advances			55,087,000						55,072,000						—						55,072,000						—
Total borrowed funds			126,588,000						126,520,000						—						126,520,000						—

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 June 30, 2021 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	376,181,000					$	383,454,000					$	—					$	383,454,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			520,803,000						515,609,000						—						—						515,609,000
Construction			64,980,000						64,332,000						—						—						64,332,000
Other			294,669,000						294,902,000						—						5,000						294,897,000
Municipal			40,876,000						40,625,000						—						—						40,625,000
Residential
Term			521,347,000						525,325,000						—						184,000						525,141,000
Construction			29,644,000						30,013,000						—						—						30,013,000
Home equity line of credit			76,668,000						74,713,000						—						—						74,713,000
Consumer			23,390,000						21,562,000						—						—						21,562,000
Total loans			1,572,377,000						1,567,081,000						—						189,000						1,566,892,000
Mortgage servicing rights			2,548,000						2,777,000						—						2,777,000						—
Financial liabilities
Local certificates of deposit			$	243,447,000					$	244,558,000					$	—					$	244,558,000					$	—
National certificates of deposit			352,755,000						356,258,000						—						356,258,000						—
Total certificates of deposits			596,202,000						600,816,000						—						600,816,000						—
Repurchase agreements			83,554,000						82,220,000						—						82,220,000						—
Federal Home Loan Bank advances			145,094,000						146,637,000						—						146,637,000						—
Total borrowed funds			228,648,000						228,857,000						—						228,857,000						—

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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration