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Disclosures about Fair Value of Assets and Liabilities (Tables) | 9 Months Ended
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Sep. 30, 2024
Disclosures about Fair Value of Assets and Liabilities [Abstract] |
Schedule of Fair Value Measurements of Assets Measured at Fair Value on a 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 September 30, 2024, and at December 31, 2023.
($ in thousands) |  | Fair value at September 30, 2024 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
U.S. Treasury and Government Agencies |  | $ | 6,096 |  |  | $ | - |  |  | $ | 6,096 |  |  | $ | - |
Mortgage-backed securities |  |  | 180,472 |  |  |  | - |  |  |  | 180,472 |  |  |  | - |
State and political subdivisions |  |  | 10,068 |  |  |  | - |  |  |  | 10,068 |  |  |  | - |
Other corporate securities |  |  | 14,875 |  |  |  | - |  |  |  | 14,875 |  |  |  | - |
Interest rate contracts - assets |  |  | 2,602 |  |  |  | - |  |  |  | 2,602 |  |  |  | - |
Interest rate contracts - liabilities |  |  | (2,602 | ) |  |  | - |  |  |  | (2,602 | ) |  |  | - |
Forward contracts |  |  | 65 |  |  |  | 65 |  |  |  | - |  |  |  | - |
IRLCs |  |  | (23 | ) |  |  | - |  |  |  | - |  |  |  | (23 | )
($ 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 nine months ended September 30, 2024, and 2023.
|  | for the Three Months Ended September 30, |  |  | for the Nine Months Ended September 30, |
($ in thousands) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Interest rate lock commitments |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 15 |  |  | $ | (10 | ) |  | $ | 45 |  |  | $ | (20 | )
Total realized gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value |  |  | (38 | ) |  |  | (14 | ) |  |  | (68 | ) |  |  | (4 | )
Balance at end of period |  | $ | (23 | ) |  | $ | (24 | ) |  | $ | (23 | ) |  | $ | (24 | )
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 September 30, 2024 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Collateral-dependent Individually evaluated loans |  | $ | 2,047 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,047 |
Mortgage servicing rights |  |  | 3,142 |  |  |  | - |  |  |  | - |  |  |  | 3,142 |
($ 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.
|  | Fair value at September 30, 2024 |  |  | Valuation technique |  | Unobservable inputs |  | Range (weighted-average) |
($ in thousands) |  |  |  |  |  |  |  |  |  |
Collateral-dependent individually evaluated loans |  | $ | 2,047 |  |  | Market comparable properties |  | Comparability adjustments (%) |  |  | 1 - 100% (21%) |
Mortgage servicing rights |  |  | 3,142 |  |  | Discounted cash flow |  | Discount rate |  |  | 10.26% |
|  |  |  |  |  |  |  | Constant prepayment rate |  |  | 7.91% |
|  |  |  |  |  |  |  | P&I earnings credit |  |  | 5.03% |
|  |  |  |  |  |  |  | T&I earnings credit |  |  | 4.94% |
|  |  |  |  |  |  |  | Inflation for cost of servicing |  |  | 3.50 |
IRLCs |  |  | (23 | ) |  | Discounted cash flow |  | Loan closing rates |  |  | 55% - 99% |
|  | Fair value at December 31, 2023 |  |  | Valuation technique |  | Unobservable inputs |  | Range (weighted-average) |
($ in thousands) |  |  |  |  |  |  |  |  |  |
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 |
September 30, 2024 |  | amount |  |  | value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 49,348 |  |  | $ | 49,348 |  |  | $ | 49,348 |  |  | $ | - |  |  | $ | - |
Interest bearing time deposits |  |  | 1,706 |  |  |  | 1,706 |  |  |  | - |  |  |  | 1,706 |  |  |  | - |
Loans held for sale |  |  | 8,927 |  |  |  | 9,033 |  |  |  | - |  |  |  | 9,033 |  |  |  | - |
Loans, net of allowance for credit losses |  |  | 1,014,677 |  |  |  | 1,013,713 |  |  |  | - |  |  |  | - |  |  |  | 1,013,713 |
Federal Reserve and FHLB Bank stock, at cost |  |  | 5,223 |  |  |  | 5,223 |  |  |  | - |  |  |  | 5,223 |  |  |  | - |
Interest receivable |  |  | 4,842 |  |  |  | 4,842 |  |  |  | - |  |  |  | 4,842 |  |  |  | - |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,159,533 |  |  | $ | 1,162,216 |  |  | $ | 894,465 |  |  | $ | 267,751 |  |  | $ | - |
Short-term borrowings |  |  | 15,240 |  |  |  | 15,240 |  |  |  | - |  |  |  | 15,240 |  |  |  | - |
FHLB advances |  |  | 35,000 |  |  |  | 35,347 |  |  |  | - |  |  |  | 35,347 |  |  |  | - |
Trust preferred securities |  |  | 10,310 |  |  |  | 9,917 |  |  |  | - |  |  |  | 9,917 |  |  |  | - |
Subordinated debt, net of issuance costs |  |  | 19,678 |  |  |  | 19,580 |  |  |  | - |  |  |  | 19,580 |  |  |  | - |
Interest payable |  |  | 3,374 |  |  |  | 3,374 |  |  |  | - |  |  |  | 3,374 |  |  |  | - |
($ 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 |  |  |  | - |

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- 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://www.xbrl.org/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- 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://www.xbrl.org/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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