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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.

		Fair Value Measurements as of March 31, 2023 Using
		Totals At March 31, 2023				Quoted Prices in Active Markets For Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential		$	41,954			$	—			$	41,954			$	—
Commercial			10,982				—				10,982				—
Obligations of U.S. government-sponsored agencies			4,375				—				4,375				—
Obligations of states and political subdivisions			1,574				—				1,574				—
Corporate notes			14,654				—				14,654				—
U.S. Treasury securities			53,468				53,468				—				—

		Fair Value Measurements as of December 31, 2022 Using
		Totals At December 31, 2022				Quoted Prices in Active Markets For Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential		$	43,957			$	—			$	43,957			$	—
Commercial			11,693				—				11,693				—
Obligations of U.S. government-sponsored agencies			4,270				—				4,270
Obligations of states and political subdivisions			2,072				—				2,072				—
Corporate notes			15,921								14,921				1,000
U.S. Treasury securities			52,882				52,882				—				—
Other assets - derivatives			2,306				—				2,306				—

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of March 31, 2023 and December 31, 2022:

		Fair Value Measurements as of March 31, 2023 Using
		Totals At March 31, 2023				Quoted Prices in Active Markets For Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		(Dollars in Thousands)
Collateral dependent loans		$	78			$	—			$	—			$	78
OREO and other assets held-for-sale			617				—				—				617

		Fair Value Measurements as of December 31, 2022 Using
		Totals At December 31, 2022				Quoted Prices in Active Markets For Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		(Dollars in Thousands)
Impaired loans		$	108			$	—			$	—			$	108
OREO and other assets held-for-sale			686				—				—				686

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

Level 3 Significant Unobservable Input Assumptions

Fair Value March 31, 2023

Valuation Technique

Unobservable Input

Quantitative Range of Unobservable Inputs (Weighted Average)

(Dollars in Thousands)

Non-recurring fair value measurements:

Collateral dependent loans

$

78

Multiple data points, including discount to appraised value of collateral based on recent market activity

Appraisal comparability adjustment (discount)

9%-10%

(9.5%)

OREO and other assets held-for-sale

$

617

Discount to appraised value of property based on recent market activity for sales of similar properties

Appraisal comparability adjustment (discount)

9%-10%

(9.5%)

Fair Value, by Balance Sheet Grouping

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 were as follows:

		March 31, 2023
		Carrying Amount				Estimated Fair Value				Level 1				Level 2				Level 3
		(Dollars in Thousands)
Assets:
Cash and cash equivalents		$	68,427			$	68,427			$	68,427			$	—			$	—
Investment securities available-for-sale			127,007				127,007				53,468				73,539				—
Investment securities held-to-maturity			1,682				1,599				—				1,599				—
Federal funds sold			263				263				—				263				—
Federal Home Loan Bank stock			1,590				1,590				—				—				1,590
Loans, net of allowance for credit losses			764,290				733,467				—				—				733,467
Liabilities:
Deposits			897,885				826,524				—				826,524				—
Short-term borrowings			25,000				25,000				—				25,000				—
Long-term borrowings			10,744				9,885				—				9,885				—

		December 31, 2022
		Carrying Amount				Estimated Fair Value				Level 1				Level 2				Level 3
		(Dollars in Thousands)
Assets:
Cash and cash equivalents		$	30,152			$	30,152			$	30,152			$	—			$	—
Investment securities available-for-sale			130,795				130,795				52,882				76,913				1,000
Investment securities held-to-maturity			1,862				1,769				—				1,769				—
Federal funds sold			1,768				1,768				—				1,768				—
Federal Home Loan Bank stock			1,359				1,359				—				—				1,359
Loans, net of allowance for loan and lease losses			764,451				730,961				—				—				730,961
Liabilities:
Deposits			870,025				788,161				—				788,161				—
Short-term borrowings			20,038				20,038				—				20,038				—
Long-term borrowings			10,726				9,702								9,702
Other assets - derivatives			2,306				2,306				—				2,306				—

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

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-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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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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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).

+ References

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-Topic 820
-SubTopic 10
-Section 50
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-Section 50
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