Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2022
Fair Value Measurements [Abstract]
Fair Value Measurements	7. FAIR VALUE MEASUREMENTS Determination of Fair Value The Company uses fair value measurements to record fair-value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the fair value measurements accounting guidance, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Items Measured at Fair Value on a Recurring Basis AFS investment securities: When instruments are traded in secondary markets and quoted market prices do not exist for such securities, management generally relies on prices obtained from independent vendors or third-party broker-dealers. Management reviews pricing methodologies provided by the vendors and third-party broker-dealers in order to determine if observable market information is being utilized. Securities measured with pricing provided by independent vendors or third- party broker-dealers are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow analyses utilizing inputs observable in the market where available. Derivatives: The fair value of derivatives are measured with pricing provided by third-party participants and are classified within Level 2 of the hierarchy. The following table represents the Company's assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021 for each of the fair value hierarchy levels (in thousands): Items Measured at Fair Value on a Non-recurring Basis Impaired Loans: At June 30, 2022 and December 31, 2021, in accordance with provisions of the loan impairment guidance, individual loans with a carrying amount of approximately $ 4.0 million and $ 4.4 million, respectively, were written down to their fair value of approximately $ 3.7 million and $ 4.0 million, respectively, resulting in an impairment charge of $ 319 thousand and $ 360 thousand, respectively, which was included in the allowance for credit losses at June 30, 2022 and December 31, 2021, respectively. Loans applicable to write-downs, or impaired loans, are estimated using the present value of expected cash flows or the appraised value of the underlying collateral discounted as necessary due to management's estimates of changes in economic conditions are considered a Level 3 valuation. Other Real Estate: Other real estate owned is valued at the lesser of the third-party appraisals less management's estimate of the costs to sell or the carrying cost of the other real estate owned. Appraisals generally use the market approach valuation technique and use market observable data to formulate an opinion of the fair value of the properties. However, the appraiser uses professional judgment in determining the fair value of the property and the Company may also adjust the value for changes in market conditions subsequent to the valuation date when current appraisals are not available. As a consequence of the carrying cost or the third-party appraisal and adjustments therein, the fair values of the properties are considered a Level 3 valuation. The following table represents the Company’s assets measured at fair value on a non-recurring basis at June 30, 2022 and December 31, 2021 for each of the fair value hierarchy levels (in thousands): The following table presents quantified information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis at June 30, 2022 and December 31, 2021 (in thousands): There were no financial liabilities measured at fair value on a non-recurring basis at June 30, 2022 and December 31, 2021. Items Not Measured at Fair Value The following table presents the carrying amounts and estimated fair values of financial instruments not carried at fair value as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. Government Agency $ - $ 25,850 $ - $ 25,850 $ - $ 10,520 $ - $ 10,520 U.S. Treasury 2,437 - - 2,437 - - - - Collateralized mortgage obligations - 133,820 - 133,820 - 156,829 - 156,829 Mortgage-backed securities - residential - 95,982 - 95,982 - 118,842 - 118,842 Mortgage-backed securities - commercial - 40,121 - 40,121 - 50,117 - 50,117 Municipal Securities - 19,602 - 19,602 - 24,276 - 24,276 Bank subordinated debt securities - 15,972 - 15,972 - 28,408 - 28,408 Corporate bonds - 5,680 - 5,680 - 12,550 - 12,550 Total 2,437 337,027 - 339,464 - 401,542 - 401,542 Derivative assets - 3,831 - 3,831 - 1,434 - 1,434 Total assets at fair value $ 2,437 $ 340,858 $ - $ 343,295 $ - $ 402,976 $ - $ 402,976 Derivative liabilities $ - $ 3,831 $ - $ 3,831 $ - $ 1,434 $ - $ 1,434 Total liabilities at fair value $ - $ 3,831 $ - $ 3,831 $ - $ 1,434 $ - $ 1,434 Level 1 Level 2 Level 3 Total June 30, 2022: Impaired loans $ - $ - $ 3,700 $ 3,700 December 31, 2021: Impaired loans $ - $ - $ 3,990 $ 3,990 Fair Value Valuation Technique(s) Unobservable Input(s) June 30, 2022: Residential real estate $ 3,546 Sales comparison approach Adj. for differences between comparable sales Commercial and industrial 48 Discounted cash flow Adj. for differences in net operating income expectations Consumer and other loans 106 Discounted cash flow Adj. for differences in net operating income expectations Total impaired loans $ 3,700 December 31, 2021: Residential real estate $ 3,807 Sales comparison approach Adj. for differences between comparable sales Commercial and industrial 70 Discounted cash flow Adj. for differences in net operating income expectations Consumer and other loans 113 Discounted cash flow Adj. for differences in net operating income expectations Total impaired loans $ 3,990 Fair Value Hierarchy Carrying Amount Level 1 Level 2 Level 3 Fair Value Amount June 30, 2022: Financial Assets: Cash and due from banks $ 7,448 $ 7,448 $ - $ - $ 7,448 Interest-bearing deposits in banks $ 75,824 $ 75,824 $ - $ - $ 75,824 Investment securities held to maturity $ 116,671 $ - $ 101,067 $ - $ 101,067 Loans held for investment, net $ 1,356,947 $ - $ - $ 1,339,283 $ 1,339,283 Accrued interest receivable $ 5,991 $ - $ 1,246 $ 4,745 $ 5,991 Financial Liabilities: Demand deposits $ 653,708 $ 653,708 $ - $ - $ 653,708 Money market and savings accounts $ 802,841 $ 802,841 $ - $ - $ 802,841 Interest-bearing checking accounts $ 63,416 $ 63,416 $ - $ - $ 63,416 Time deposits $ 218,755 $ - $ - $ 214,737 $ 214,737 FHLB advances $ 66,000 $ - $ 64,985 $ - $ 64,985 Accrued interest payable $ 99 $ - $ 50 $ 49 $ 99 December 31, 2021: Financial Assets: Cash and due from banks $ 6,477 $ 6,477 $ - $ - $ 6,477 Interest-bearing deposits in banks $ 39,751 $ 39,751 $ - $ - $ 39,751 Investment securities held to maturity $ 122,658 $ - $ 120,157 $ - $ 120,157 Loans held for investment, net $ 1,175,024 $ - $ - $ 1,189,191 $ 1,189,191 Accrued interest receivable $ 5,975 $ - $ 1,222 $ 4,753 $ 5,975 Financial Liabilities: Demand deposits $ 605,425 $ 605,425 $ - $ - $ 605,425 Money market and savings accounts $ 703,856 $ 703,856 $ - $ - $ 703,856 Interest-bearing checking accounts $ 55,878 $ 55,878 $ - $ - $ 55,878 Time deposits $ 225,200 $ - $ - $ 224,688 $ 224,688 FHLB advances $ 36,000 $ - $ 36,479 $ - $ 36,479 Accrued interest payable $ 96 $ - $ 50 $ 46 $ 96

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.