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Disclosures about Fair Value of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2024
Disclosures about Fair Value of Assets and Liabilities [Abstract]  
Schedule of Fair Value Measurements of Assets Measured on Recurring Basis The following tables present 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, 2024, and December 31, 2023.
($ in thousands)  Fair value at
June 30,
2024
   (Level 1)   (Level 2)   (Level 3) 
U.S. Treasury and Government Agencies  $6,142   $
-
   $6,142   $
-
 
Mortgage-backed securities   177,615    
-
    177,615    
-
 
State and political subdivisions   9,663    
-
    9,663    
-
 
Other corporate securities   14,436    
-
    14,436    
-
 
Interest rate contracts - assets   4,537    
-
    4,537    
-
 
Interest rate contracts - liabilities   (4,537)   
-
    (4,537)   
-
 
Forward contracts   40    40    
-
    
-
 
IRLCs   15    
-
    
-
    15 
($ in thousands)  Fair value at
December 31,
2023
   (Level 1)   (Level 2)   (Level 3) 
U.S. Treasury and Government Agencies  $6,517   $
-
   $6,517   $
-
 
Mortgage-backed securities   188,867    
-
    188,867    
-
 
State and political subdivisions   9,898    
-
    9,898    
-
 
Other corporate securities   14,426    
-
    14,426    
-
 
Interest rate contracts - assets   3,638    
-
    3,638    
-
 
Interest rate contracts - liabilities   (3,638)   
-
    (3,638)   
-
 
Forward contracts   (37)   (37)   
-
    
-
 
IRLCs   45    
-
    
-
    45 
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, 2024, and 2023.
   for the Three Months Ended
June 30,
   for the Six Months Ended
June 30,
 
($ in thousands)  2024   2023   2024   2023 
Interest rate lock commitments                
Balance at beginning of period  $54   $45   $45   $(20)
Total realized gains (losses)                    
Change in fair value   (39)   (55)   (30)   10 
Balance at end of period  $15   $(10)  $15   $(10)

 

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,
2024
   (Level 1)   (Level 2)   (Level 3) 
Collateral-dependent Individually evaluated loans  $1,559   $
          -
   $
            -
   $1,559 
Mortgage servicing rights   59    
-
    
-
    59 
($ in thousands)  Fair value at
December 31,
2023
   (Level 1)   (Level 2)   (Level 3) 
Collateral-dependent impaired loans  $864   $
         -
   $
-
   $864 
Mortgage servicing rights   1,896    
-
    
         -
    1,896 
Schedule of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
($ in thousands)  Fair value at
June 30,
2024
   Valuation
technique
  Unobservable inputs  Range (weighted-
average)
              
Collateral-dependent individually evaluated loans  $1,559   Market comparable properties  Comparability adjustments (%)  10 - 100% (29%)
               
Mortgage servicing rights   59   Discounted cash flow  Discount rate  11.13%
           Constant prepayment rate  6.19%
           P&I earnings credit  5.33%
           T&I earnings credit  5.14%
           Inflation for cost of servicing  3.50%
               
IRLCs   15   Discounted cash flow  Loan closing rates  52% - 99%
($ in thousands)  Fair value at
December 31,
2023
   Valuation
technique
  Unobservable inputs  Range (weighted-
average)
              
Collateral-dependent impaired loans  $864   Market comparable properties  Comparability adjustments (%)  2 - 100% (25%)
               
Mortgage servicing rights   1,896   Discounted cash flow  Discount rate  11.01%
           Constant prepayment rate  7.16%
           P&I earnings credit  5.33%
           T&I earnings credit  5.13%
           Inflation for cost of servicing  3.50%
               
IRLCs   45   Discounted cash flow  Loan closing rates  27% - 91%
Schedule of 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, 2024  amount   value   (Level 1)   (Level 2)   (Level 3) 
Financial assets                    
Cash and due from banks  $21,983   $21,983   $21,983   $
-
   $
-
 
Interest bearing time deposits   2,417    2,417    
-
    2,417    
-
 
Loans held for sale   7,864    7,962    
-
    7,962    
-
 
Loans, net of allowance for credit losses   989,778    986,331    
-
    
-
    986,331 
Federal Reserve and FHLB Bank stock, at cost   5,204    5,204    
-
    5,204    
-
 
Interest receivable   4,818    4,818    
-
    4,818    
-
 
                          
Financial liabilities                         
Deposits  $1,115,188   $1,117,880   $856,606   $261,274   $
-
 
Short-term borrowings   15,178    15,178    
-
    15,178    
-
 
FHLB advances   35,000    34,366    
-
    34,366    
-
 
Trust preferred securities   10,310    9,702    
-
    9,702    
-
 
Subordinated debt, net of issuance costs   19,666    19,996    
-
    19,996    
-
 
Interest payable   2,944    2,944    
-
    2,944    
-
 
($ in thousands)  Carrying   Fair   Fair value measurements using 
December 31, 2023  amount   value   (Level 1)   (Level 2)   (Level 3) 
Financial assets                    
Cash and due from banks  $22,965   $22,965   $22,965   $
-
   $
-
 
Interest bearing time deposits   1,535    1,535    
-
    1,535    
-
 
Loans held for sale   2,525    2,565    
-
    2,565    
-
 
Loans, net of allowance for credit losses   984,426    964,216    
-
    
-
    964,216 
Federal Reserve and FHLB Bank stock, at cost   7,279    7,279    
-
    7,279    
-
 
Interest receivable   4,657    4,657    
-
    4,657    
-
 
                          
Financial liabilities                         
Deposits  $1,070,205   $1,078,028   $814,696   $263,332   $
-
 
Short-term borrowings   13,387    13,387    
-
    13,387    
-
 
FHLB advances   83,600    83,368    
-
    83,368    
-
 
Trust preferred securities   10,310    9,759    
-
    9,759    
-
 
Subordinated debt, net of issuance costs   19,642    19,435    
-
    19,435    
-
 
Interest payable   2,443    2,443    
-
    2,443    
-