XML 45 R35.htm IDEA: XBRL DOCUMENT
v3.23.2

Disclosures About Fair Value of Assets and Liabilities (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2023
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2023 and December 31, 2022.
($ in thousands) |  | Fair value at June 30, 2023 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
U.S. Treasury and Government Agencies |  | $ | 7,203 |  |  | $ | - |  |  | $ | 7,203 |  |  | $ | - |
Mortgage-backed securities |  |  | 195,871 |  |  |  | - |  |  |  | 195,871 |  |  |  | - |
State and political subdivisions |  |  | 10,765 |  |  |  | - |  |  |  | 10,765 |  |  |  | - |
Other corporate securities |  |  | 14,157 |  |  |  | - |  |  |  | 14,157 |  |  |  | - |
Interest rate contracts - assets |  |  | 5,167 |  |  |  | - |  |  |  | 5,167 |  |  |  | - |
Interest rate contracts - liabilities |  |  | (5,167 | ) |  |  | - |  |  |  | (5,167 | ) |  |  | - |
Forward contracts |  |  | 48 |  |  |  | 48 |  |  |  | - |  |  |  | - |
IRLCs |  |  | (10 | ) |  |  | - |  |  |  | - |  |  |  | (10 | )
($ in thousands) |  | Fair value at December 31, 2022 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
U.S. Treasury and Government Agencies |  | $ | 6,764 |  |  | $ | - |  |  | $ | 6,764 |  |  | $ | - |
Mortgage-backed securities |  |  | 205,835 |  |  |  | - |  |  |  | 205,835 |  |  |  | - |
State and political subdivisions |  |  | 11,103 |  |  |  | - |  |  |  | 11,103 |  |  |  | - |
Other corporate securities |  |  | 15,078 |  |  |  | - |  |  |  | 15,078 |  |  |  | - |
Interest rate contracts - assets |  |  | 5,538 |  |  |  | - |  |  |  | 5,538 |  |  |  | - |
Interest rate contracts - liabilities |  |  | (5,538 | ) |  |  | - |  |  |  | (5,538 | ) |  |  | - |
Forward contracts |  |  | 26 |  |  |  | 26 |  |  |  | - |  |  |  | - |
IRLCs |  |  | (20 | ) |  |  | - |  |  |  | - |  |  |  | (20 | )
Schedule of Fair Value Measurements Recognized in the Accompanying Consolidated Balance Sheets Using Significant Unobservable (Level 3) Inputs | The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2023 and 2022.
|  | for the Three Months Ended June 30, |  |  | for the Six Months Ended June 30, |
($ in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Interest rate lock commitments |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 45 |  |  | $ | (155 | ) |  | $ | (20 | ) |  | $ | 22 |
Change in fair value |  |  | (55 | ) |  |  | 209 |  |  |  | 10 |  |  |  | 32 |
Balance at end of period |  | $ | (10 | ) |  | $ | 54 |  |  | $ | (10 | ) |  | $ | 54 |
Schedule of Mortgage Servicing Rights are Tested for Impairment on a Quarterly Basis | These mortgage servicing rights are tested for impairment on a quarterly basis.
($ in thousands) |  | Fair value at June 30, 2023 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Collateral-dependent Individually evaluated loans |  | $ | 1,057 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,057 |
Mortgage servicing rights |  |  | 1,273 |  |  |  | - |  |  |  | - |  |  |  | 1,273 |
($ in thousands) |  | Fair value at December 31, 2022 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Collateral-dependent impaired loans |  | $ | 1,028 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,028 |
Mortgage servicing rights |  |  | 1,448 |  |  |  | - |  |  |  | - |  |  |  | 1,448 |
Schedule of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
($ in thousands) |  | Fair value at June 30, 2023 |  |  | Valuation technique |  | Unobservable inputs |  | Range (weighted- average) |
Collateral-dependent individually evaluated loans |  | $ | 1,057 |  |  | Market comparable properties |  | Comparability adjustments (%) |  |  | 1 - 23% (6%) |
Mortgage servicing rights |  |  | 1,273 |  |  | Discounted cash flow |  | Discount rate |  |  | 11.64% |
|  |  |  |  |  |  |  | Constant prepayment rate |  |  | 6.99% |
|  |  |  |  |  |  |  | P&I earnings credit |  |  | 5.13% |
|  |  |  |  |  |  |  | T&I earnings credit |  |  | 5.08% |
|  |  |  |  |  |  |  | Inflation for cost of servicing |  |  | 3.50% |
IRLCs |  |  | (10 | ) |  | Discounted cash flow |  | Loan closing rates |  |  | 48% - 99% |
($ in thousands) |  | Fair value at December 31, 2022 |  |  | Valuation technique |  | Unobservable inputs |  | Range (weighted- average) |
Collateral-dependent impaired loans |  | $ | 1,028 |  |  | Market comparable properties |  | Comparability adjustments (%) |  |  | 8 - 21% (12%) |
Mortgage servicing rights |  |  | 1,448 |  |  | Discounted cash flow |  | Discount rate |  |  | 11.39% |
|  |  |  |  |  |  |  | Constant prepayment rate |  |  | 7.52% |
|  |  |  |  |  |  |  | P&I earnings credit |  |  | 4.35% |
|  |  |  |  |  |  |  | T&I earnings credit |  |  | 4.58% |
|  |  |  |  |  |  |  | Inflation for cost of servicing |  |  | 3.50% |
IRLCs |  |  | (20 | ) |  | Discounted cash flow |  | Loan closing rates |  |  | 41% - 99% |
Schedule of Estimated Fair Values Financial Instruments | the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate
($ in thousands) |  | Carrying |  |  | Fair |  |  | Fair value measurements using |
June 30, 2023 |  | amount |  |  | value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 20,993 |  |  | $ | 20,993 |  |  | $ | 20,993 |  |  | $ | - |  |  | $ | - |
Interest bearing time deposits |  |  | 1,180 |  |  |  | 1,180 |  |  |  | - |  |  |  | 1,180 |  |  |  | - |
Loans held for sale |  |  | 5,684 |  |  |  | 5,720 |  |  |  | - |  |  |  | 5,720 |  |  |  | - |
Loans, net of allowance for loan losses |  |  | 969,029 |  |  |  | 934,906 |  |  |  | - |  |  |  | - |  |  |  | 934,906 |
Federal Reserve and FHLB Bank stock, at cost |  |  | 7,634 |  |  |  | 7,634 |  |  |  | - |  |  |  | 7,634 |  |  |  | - |
Interest receivable |  |  | 4,079 |  |  |  | 4,079 |  |  |  | - |  |  |  | 4,079 |  |  |  | - |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,071,156 |  |  | $ | 1,075,816 |  |  | $ | 831,439 |  |  | $ | 244,377 |  |  | $ | - |
Short-term borrowings |  |  | 21,118 |  |  |  | 21,118 |  |  |  | - |  |  |  | 21,118 |  |  |  | - |
FHLB advances |  |  | 81,300 |  |  |  | 80,789 |  |  |  | - |  |  |  | 80,789 |  |  |  | - |
Trust preferred securities |  |  | 10,310 |  |  |  | 9,609 |  |  |  | - |  |  |  | 9,609 |  |  |  | - |
Subordinated debt, net of issuance costs |  |  | 19,618 |  |  |  | 19,018 |  |  |  | - |  |  |  | 19,018 |  |  |  | - |
Interest payable |  |  | 1,866 |  |  |  | 1,866 |  |  |  | - |  |  |  | 1,866 |  |  |  | - |
($ in thousands) |  | Carrying |  |  | Fair |  |  | Fair value measurements using |
December 31, 2022 |  | amount |  |  | value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 27,817 |  |  | $ | 27,817 |  |  | $ | 27,817 |  |  | $ | - |  |  | $ | - |
Interest bearing time deposits |  |  | 2,131 |  |  |  | 2,131 |  |  |  | - |  |  |  | 2,131 |  |  |  | - |
Loans held for sale |  |  | 2,073 |  |  |  | 2,100 |  |  |  | - |  |  |  | 2,100 |  |  |  | - |
Loans, net of allowance for loan losses |  |  | 948,257 |  |  |  | 945,699 |  |  |  | - |  |  |  | - |  |  |  | 945,699 |
Federal Reserve and FHLB Bank stock, at cost |  |  | 6,326 |  |  |  | 6,326 |  |  |  | - |  |  |  | 6,326 |  |  |  | - |
Interest receivable |  |  | 4,091 |  |  |  | 4,091 |  |  |  | - |  |  |  | 4,091 |  |  |  | - |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,086,665 |  |  | $ | 1,090,718 |  |  | $ | 895,785 |  |  | $ | 194,933 |  |  | $ | - |
Short-term borrowings |  |  | 14,923 |  |  |  | 14,923 |  |  |  | - |  |  |  | 14,923 |  |  |  | - |
FHLB advances |  |  | 60,000 |  |  |  | 59,886 |  |  |  | - |  |  |  | 59,886 |  |  |  | - |
Trust preferred securities |  |  | 10,310 |  |  |  | 9,674 |  |  |  | - |  |  |  | 9,674 |  |  |  | - |
Subordinated debt, net of issuance costs |  |  | 19,594 |  |  |  | 18,959 |  |  |  | - |  |  |  | 18,959 |  |  |  | - |
Interest payable |  |  | 769 |  |  |  | 769 |  |  |  | - |  |  |  | 769 |  |  |  | - |

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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 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). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
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 -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482907/825-10-50-11 + 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 the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration