Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Fair Value of Assets Measured on Recurring Basis

The table below presents the recorded amount of assets measured at fair value on a recurring basis:


(in thousands)	Fair Value		Level 1		Level 2		Level 3
December 31, 2021
Loans HFS	$	4,290	$	—	$	4,290	$	—
Securities AFS:
Mortgage-backed securities	379,526		—		379,526		—
Municipal bonds	229,971		—		229,971		—
U.S. agency securities	8,065		—		8,065		—
U.S. Treasury securities	41,616		—		41,616		—
Equity securities	7,846		7,846		—		—

December 31, 2020
Loans HFS	$	29,116	$	—	$	29,116	$	—
Securities AFS:
Mortgage-backed securities	274,827		—		274,827		—
Municipal bonds	213,281		—		213,281		—
U.S. agency securities	10,098		—		10,098		—
U.S. Treasury securities	—		—		—		—
Equity securities	4,021		4,021		—		—

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses based upon the fair value of the underlying collateral during the reported periods:


	Years Ended December 31,
(in thousands)	2021		2020
Carrying value of impaired loans before allowance for loan losses	$	4,114	$	6,776
Specific allowance for loan losses	(79)		(856)
Fair value of impaired loans	$	4,035	$	5,920

The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods:


	Years Ended December 31,
(in thousands)	2021		2020
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	266	$	85
Charge-offs	—		—
Fair value of foreclosed assets	$	266	$	85

The following table presents foreclosed assets that were remeasured subsequent to initial recognition and reported at fair value during the reported periods:


	Years Ended December 31,
(in thousands)	2021		2020
Foreclosed assets remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	133	$	150
Write-downs	(34)		(17)
Fair value of foreclosed assets	$	99	$	133

Schedule of Inputs Used for the Level 3 Fair Value Measurement

The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows:

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Discount Ranges

Weighted Average Discount

December 31, 2021

Impaired loans

5,923

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

3.67%

Foreclosed assets

660

Discounted appraisals

Collateral discounts and costs to sell

N/A

December 31, 2020

Impaired loans

7,872

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

10.91%

Foreclosed assets

896

Discounted appraisals

Collateral discounts and costs to sell

0% - 13%

1.86%

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments as of December 31, 2021 and 2020, were as follows:


(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2021
Financial assets:
Cash and due from banks	$	23,143	$	23,143	$	23,143	$	—	$	—
Interest-bearing deposits in other banks	761,721		761,721		761,721		—		—
Securities AFS	659,178		659,178		—		659,178		—
Equity securities	7,846		7,846		7,846		—		—
Nonmarketable equity securities	3,450		3,450		—		3,450		—
Loans HFS	4,290		4,290		—		4,290		—
Loans HFI, net of allowance	1,664,656		1,674,900		—		—		1,674,900
Accrued interest receivable	6,245		6,245		—		—		6,245
Financial liabilities:
Deposits	2,910,348		2,911,118		—		2,911,118		—
Accrued interest payable	1,310		1,310		—		1,310		—

December 31, 2020
Financial assets:
Cash and due from banks	$	29,537	$	29,537	$	29,537	$	—	$	—
Interest-bearing deposits in other banks	417,664		417,664		417,664		—		—
Securities AFS	498,206		498,206		—		498,206		—
Equity securities	4,021		4,021		4,021		—		—
Nonmarketable equity securities	3,447		3,447		—		3,447		—
Loans HFS	29,116		29,116		—		29,116		—
Loans HFI, net of allowance	1,570,495		1,578,398		—		—		1,578,398
Accrued interest receivable	6,880		6,880		—		—		6,880
Financial liabilities:
Deposits	2,340,360		2,344,969		—		2,344,969		—
Accrued interest payable	1,774		1,774		—		1,774		—