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Disclosures about Fair Value Measurements and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Disclosures about Fair Value Measurements and Financial Instruments

Schedule of assets and liabilities measured and recorded at fair value on a recurring basis

The following table presents the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of September 30, 2022 and December 31, 2021, by level within the fair value hierarchy (in thousands).

Fair Value Measurements at September 30, 2022

TOTAL

(LEVEL 1)

(LEVEL 2)

(LEVEL 3)

Equity securities (1)

$

491

$

491

$

—

$

—

Available for sale securities:

U.S. Agency

10,037

—

10,037

—

U.S. Agency mortgage-backed securities

88,026

—

88,026

—

Municipal

19,639

—

19,639

—

Corporate bonds

56,598

—

56,598

—

Interest rate swap asset (1)

7,518

—

7,518

—

Interest rate swap liability (2)

(7,367)

—

(7,367)

—

Risk participation agreement (2)

—

—

—

—


		Fair Value Measurements at December 31, 2021
		TOTAL			(LEVEL 1)			(LEVEL 2)			(LEVEL 3)
Equity securities (1)		$	526		$	526		$	—		$	—
Available for sale securities:
U.S. Agency			7,387			—			7,387			—
U.S. Agency mortgage-backed securities			80,167			—			80,167			—
Municipal			20,892			—			20,892			—
Corporate bonds			54,725			—			54,725			—
Interest rate swap asset (1)			1,226			—			1,226			—
Interest rate swap liability (2)			(1,226)			—			(1,226)			—
Risk participation agreement (2)			—			—			—			—

(1)	Included within other assets on the Consolidated Balance Sheets.

(2)	Included within other liabilities on the Consolidated Balance Sheets.

Schedule of assets measured and recorded at fair value on a non-recurring basis

Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data):


		Fair Value Measurements
September 30, 2022		TOTAL			(LEVEL 1)			(LEVEL 2)			(LEVEL 3)
Impaired loans		$	1,620		$	—		$	—		$	1,620
Other real estate owned and repossessed assets			39			—			—			39

Fair Value Measurements

December 31, 2021

TOTAL

(LEVEL 1)

(LEVEL 2)

(LEVEL 3)

Impaired loans

$

—

$

—

$

—

$

—


		Quantitative Information About Level 3 Fair Value Measurements
					Valuation		Unobservable
September 30, 2022		Fair Value			Techniques		Input		Range (Wgtd Avg)
Impaired loans		$	1,620		Appraisal of		Appraisal		0% to 100% (0%)
					collateral (1)		adjustments (2)
Other real estate owned and repossessed assets			39		Appraisal of		Appraisal		52% (52%)
					collateral (1)		adjustments (2)
							Liquidation		10% to 39% (11%)
							expenses


		Quantitative Information About Level 3 Fair Value Measurements
					Valuation		Unobservable
December 31, 2021		Fair Value			Techniques		Input		Range (Wgtd Avg)
Impaired loans		$	—		Appraisal of		Appraisal		100% (100%)
					collateral (1)		adjustments (2)

(1)	Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses.

(2)	Appraisals may be adjusted by management for qualitative factors such as economic conditions.

Schedule of estimated fair value and recorded carrying value

September 30, 2022

Carrying

Value

Fair Value

(Level 1)

(Level 2)

(Level 3)

(IN THOUSANDS)

FINANCIAL ASSETS:

Investment securities – HTM

$

62,567

$

55,788

$

—

$

52,936

$

2,852

Loans, net of allowance for loan loss and unearned income

968,778

910,169

—

—

910,169

FINANCIAL LIABILITIES:

Deposits with stated maturities

283,640

279,204

—

—

279,204

All other borrowings ⁽¹⁾

55,156

52,845

—

—

52,845


		December 31, 2021
		Carrying
		Value				Fair Value			(Level 1)			(Level 2)			(Level 3)

			(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM		$	53,751		$	55,516		$	—		$	52,523		$	2,993
Loans held for sale			983			1,022			1,022			—			—
Loans, net of allowance for loan loss and unearned income			972,656			969,681			—			—			969,681
FINANCIAL LIABILITIES:
Deposits with stated maturities			292,325			294,280			—			—			294,280
All other borrowings⁽¹⁾			69,256			69,506			—			—			69,506

(1)	All other borrowings include advances from Federal Home Loan Bank and subordinated debt.