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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of September 30, 2023 and December 31, 2022 are as follows: 

Fair Value, by Balance Sheet Grouping

		September 30, 2023
		Carrying				Fair Value
(Dollars in thousands)		Amount				Total				Level 1				Level 2				Level 3
Financial assets:
Cash and short term investments		$	97,456			$	97,456			$	97,456			$	—			$	—
Available-for-sale securities			280,549				280,549				—				280,549				—
Held-to-maturity securities			219,871				198,408				—				198,408				—
Other investments, at cost			6,305				6,305				—				—				6,305
Loans held for sale			5,509				5,509				—				5,509				—
Derivative financial instruments			3,909				3,909				—				3,909				—
Net loans receivable			1,079,827				1,027,838				—				—				1,027,838
Accrued interest receivable			5,390				5,390				5,390				—				—
Financial liabilities:
Non-interest bearing demand		$	450,737			$	450,737			$	—			$	450,737			$	—
Interest bearing demand deposits and money market accounts			688,252				688,252				—				688,252				—
Savings			123,523				123,523				—				123,523				—
Time deposits			229,514				227,770				—				227,770				—
Total deposits			1,492,026				1,490,282				—				1,490,282				—
Federal Home Loan Bank Advances			80,000				80,000				—				80,000				—
Short term borrowings			67,173				67,173				—				67,173				—
Junior subordinated debentures			14,964				13,258				—				13,258				—
Accrued interest payable			2,390				2,390				2,390				—				—
		December 31, 2022
		Carrying				Fair Value
(Dollars in thousands)		Amount				Total				Level 1				Level 2				Level 3
Financial Assets:
Cash and short term investments		$	37,401			$	37,401			$	37,401			$	—			$	—
Available-for-sale securities			331,862				331,862				—				331,862				—
Held-to-maturity securities			228,701				213,613				—				213,613				—
Other investments, at cost			4,191				4,191				—				—				4,191
Loans held for sale			1,779				1,779				—				1,779				—
Net loans receivable			969,521				943,498				—				—				943,498
Accrued interest receivable			5,217				5,217				5,217				—				—
Financial liabilities:
Non-interest bearing demand		$	461,010			$	461,010			$	—			$	461,010			$	—
Interest bearing demand deposits and money market accounts			629,763				629,763				—				629,763				—
Savings			161,770				161,770				—				161,770				—
Time deposits			132,839				132,825				—				132,825				—
Total deposits			1,385,382				1,385,368				—				1,385,368				—
Federal Home Loan Bank Advances			50,000				50,000				—				50,000				—
Short term borrowings			90,743				90,743				—				90,743				—
Junior subordinated debentures			14,964				13,402				—				13,402				—
Accrued interest payable			520				520				520				—				—

Fair Value, Assets Measured on Recurring Basis

The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2023 and December 31, 2022 that are measured on a recurring basis. There were no liabilities carried at fair value as of September 30, 2023 or December 31, 2022 that are measured on a recurring basis.

Fair Value, Assets Measured on Recurring Basis

(Dollars in thousands)		September 30, 2023
Description		Total				Level 1				Level 2				Level 3
Available- for-sale securities
US Treasury Securities		$	17,550			$	—			$	17,550			$	—
Government Sponsored Enterprises			2,008				—				2,008				—
Mortgage-backed securities			236,590				—				236,590				—
Small Business Administration pools			16,621				—				16,621				—
Corporate and other securities			7,780				—				7,780				—
Total Available-for-sale securities			280,549				—				280,549				—
Derivative financial instruments			3,909								3,909
Loans held for sale			5,509				—				5,509				—
Total		$	289,967			$	—			$	289,967			$	—
(Dollars in thousands)		December 31, 2022
Description		Total				Level 1				Level 2				Level 3
Available- for-sale securities
US Treasury Securities		$	55,983			$	—			$	55,983			$	—
Government Sponsored Enterprises			2,074				—				2,074				—
Mortgage-backed securities			244,600				—				244,600				—
Small Business Administration pools			21,087				—				21,087				—
Corporate and other securities			8,118				—				8,118				—
Total Available-for-sale securities			331,862				—				331,862				—
Loans held for sale			1,779				—				1,779				—
Total		$	333,641			$	—			$	333,641			$	—

Fair Value, Assets Measured on Non-Recurring Basis

The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2023 and December 31, 2022 that are measured on a non-recurring basis. There were no Level 3 financial instruments for the three months ended September 30, 2023 and 2022 measured on a recurring basis.

Fair Value, Assets Measured on Non-Recurring Basis

(Dollars in thousands)		September 30, 2023
Description		Total				Level 1				Level 2				Level 3
Other real estate owned:
Construction			145				—				—				145
Mortgage-commercial			521				—				—				521
Total other real estate owned			666				—				—				666
Total		$	666			$	—			$	—			$	666
(Dollars in thousands)		December 31, 2022
Description		Total				Level 1				Level 2				Level 3
Impaired loans:
Real estate:
Mortgage-residential		$	34			$	—			$	—			$	34
Mortgage-commercial			4,752				—				—				4,752
Consumer:
Home equity			168				—				—				168
Total impaired loans			4,954				—				—				4,954
Other real estate owned:
Construction			412				—				—				412
Mortgage-commercial			522				—				—				522
Total other real estate owned			934				—				—				934
Total		$	5,888			$	—			$	—			$	5,888

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:  

Fair Value Measurement Inputs and Valuation Techniques

(Dollars in thousands)		Fair Value as of September 30, 2023				Valuation Technique		Significant Observable Inputs		Significant Unobservable Inputs
OREO		$	666			Appraisal Value/Comparison Sales/Other estimates		Appraisals and or sales of comparable properties		Appraisals discounted 6% to 16% for sales commissions and other holding cost
(Dollars in thousands)		Fair Value as of December 31, 2022				Valuation Technique		Significant Observable Inputs		Significant Unobservable Inputs
OREO		$	934			Appraisal Value/Comparison Sales/Other estimates		Appraisals and or sales of comparable properties		Appraisals discounted 6% to 16% for sales commissions and other holding cost
Impaired loans		$	4,954			Appraisal Value		Appraisals and or sales of comparable properties		Appraisals discounted 6% to 16% for sales commissions and other holding cost

X

- 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.

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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).

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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).

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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.

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