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Fair Value (Tables)

9 Months Ended

Sep. 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 September 30, 2022, December 31, 2021 and September 30, 2021.

			At September 30, 2022
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	19,144,000					$	—					$	19,144,000
Mortgage-backed securities			—						229,178,000						—						229,178,000
State and political subdivisions			—						31,106,000						—						31,106,000
Asset-backed securities			—						3,840,000						—						3,840,000
Total securities available for sale			—						283,268,000						—						283,268,000
Interest rate swap agreements			—						633,000						—						633,000
Customer loan interest swap agreements			—						5,364,000						—						5,364,000
Total interest rate swap agreements			—						5,997,000						—						5,997,000
Total assets			$	—					$	289,265,000					$	—					$	289,265,000

			At September 30, 2022
			Level 1						Level 2						Level 3						Total
Customer loan interest swap agreements			$	—					$	5,364,000					$	—					$	5,364,000
Total liabilities			$	—					$	5,364,000					$	—					$	5,364,000

			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 September 30, 2021
			Level 1						Level 2						Level 3						Total
Securities available for sale
U.S. Government-sponsored agencies			$	—					$	21,939,000					$	—					$	21,939,000
Mortgage-backed securities			—						247,253,000						—						247,253,000
State and political subdivisions			—						35,179,000						—						35,179,000
Asset-backed securities			—						4,853,000						—						4,853,000
Total securities available for sale			—						309,224,000						—						309,224,000
Interest rate swap agreements			—						644,000						—						644,000
Customer loan interest swap agreements			—						2,663,000						—						2,663,000
Total interest swap agreements			—						3,307,000						—						3,307,000
Total assets			$	—					$	312,531,000					$	—					$	312,531,000

			At September 30, 2021
			Level 1						Level 2						Level 3						Total
Interest rate swap agreements			$	—					$	2,589,000					$	—					$	2,589,000
Customer loan interest swap agreements			—						2,663,000						—						2,663,000
Total liabilities			$	—					$	5,252,000					$	—					$	5,252,000

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 $91,000 at September 30, 2021. There was no impairment reserve as of September 30, 2022. The Company had no other real estate owned or related allowance at September 30, 2022, 2021 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 $151,000, $441,000 and $457,000 at September 30, 2022, December 31, 2021, and September 30, 2021, respectively.

			At September 30, 2022
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	3,789,000					$	—					$	3,789,000
Impaired loans			—						5,000						—						5,000
Total assets			$	—					$	3,794,000					$	—					$	3,794,000

			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 September 30, 2021
			Level 1						Level 2						Level 3						Total
Mortgage servicing rights			$	—					$	2,757,000					$	—					$	2,757,000
Impaired loans			—						224,000						—						224,000
Total assets			$	—					$	2,981,000					$	—					$	2,981,000

Schedule of Estimated Fair Value of Financial Instruments

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

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	381,906,000					$	313,796,000					$	—					$	313,796,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			632,385,000						615,560,000						—						—						615,560,000
Construction			127,765,000						124,366,000						—						—						124,366,000
Other			306,692,000						304,024,000						—						5,000						304,019,000
Municipal			48,521,000						46,475,000						—						—						46,475,000
Residential
Term			592,143,000						543,378,000						—						—						543,378,000
Construction			41,440,000						37,263,000						—						—						37,263,000
Home equity line of credit			72,812,000						76,287,000						—						—						76,287,000
Consumer			19,830,000						18,172,000						—						—						18,172,000
Total loans			1,841,588,000						1,765,525,000						—						5,000						1,765,520,000
Mortgage servicing rights			2,594,000						3,789,000						—						3,789,000						—
Financial liabilities
Local certificates of deposit			$	252,211,000					$	239,377,000					$	—					$	239,377,000					$	—
National certificates of deposit			533,965,000						525,169,000						—						525,169,000						—
Total certificates of deposits			786,176,000						764,546,000						—						764,546,000						—
Repurchase agreements			68,258,000						59,208,000						—						59,208,000						—
Federal Home Loan Bank advances			50,085,000						50,071,000						—						50,071,000						—
Total borrowed funds			118,343,000						109,279,000						—						109,279,000						—

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 September 30, 2021 were as follows:

			Carrying value						Estimated fair value						Level 1						Level 2						Level 3
Financial assets
Securities to be held to maturity			$	375,699,000					$	379,797,000					$	—					$	379,797,000					$	—
Loans (net of allowance for loan losses)
Commercial
Real estate			542,975,000						537,937,000						—						—						537,937,000
Construction			72,341,000						71,670,000						—						—						71,670,000
Other			284,048,000						283,585,000						—						5,000						283,580,000
Municipal			40,409,000						40,133,000						—						—						40,133,000
Residential
Term			536,231,000						540,586,000						—						219,000						540,367,000
Construction			29,203,000						29,593,000						—						—						29,593,000
Home equity line of credit			73,549,000						71,591,000						—						—						71,591,000
Consumer			22,386,000						20,578,000						—						—						20,578,000
Total loans			1,601,142,000						1,595,673,000						—						224,000						1,595,449,000
Mortgage servicing rights			2,597,000						2,757,000						—						2,757,000						—
Financial liabilities
Local certificates of deposit			$	238,170,000					$	239,239,000					$	—					$	239,239,000					$	—
National certificates of deposit			276,397,000						279,653,000						—						279,653,000						—
Total certificates of deposits			514,567,000						518,892,000						—						518,892,000						—
Repurchase agreements			88,109,000						86,114,000						—						86,114,000						—
Federal Home Loan Bank advances			145,092,000						146,411,000						—						146,411,000						—
Total borrowed funds			233,201,000						232,525,000						—						232,525,000						—

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

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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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
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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
-Subparagraph (b)
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