Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022, segregated by fair value hierarchy level, are summarized below:


	Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2023:	(Dollars in thousands)
Debt securities AFS:
U.S. Government-sponsored enterprises	$	37,938	$	2,543	$	35,395	$	—
Agency mortgage-backed	146,133		—		146,133		—
State and political subdivisions	58,819		—		58,819		—
Corporate	6,107		—		6,107		—
Total debt securities	$	248,997	$	2,543	$	246,454	$	—


Other investments:
Mutual funds	$	1,340	$	1,340	$	—	$	—


December 31, 2022:
Debt securities AFS:
U.S. Government-sponsored enterprises	$	39,245	$	2,551	$	36,694	$	—
Agency mortgage-backed	164,432		—		164,432		—
State and political subdivisions	40,466		—		40,466		—
Corporate	6,124		—		6,124		—
Total debt securities	$	250,267	$	2,551	$	247,716	$	—


Other investments:
Mutual funds	$	1,264	$	1,264	$	—	$	—

Schedule of Fair Values and Carrying Amounts, Significant Financial Instruments

As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows:


	September 30, 2023
	Fair Value Measurements
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets
Cash and cash equivalents	$	21,330	$	21,330	$	21,330	$	—	$	—
Interest bearing deposits in banks	14,436		14,436		—		14,436		—
Investment securities	250,337		250,337		3,883		246,454		—
Loans held for sale	6,452		6,519		—		6,519		—
Loans, net
Residential real estate	398,200		353,150		—		—		353,150
Construction real estate	100,795		97,556		—		—		97,556
Commercial real estate	393,462		366,811		—		—		366,811
Commercial	40,970		37,913		—		—		37,913
Consumer	2,287		2,243		—		—		2,243
Municipal	80,674		77,726		—		—		77,726
Accrued interest receivable	4,321		4,321		—		1,146		3,175
Nonmarketable equity securities	4,637		N/A		N/A		N/A		N/A
Financial liabilities
Deposits
Noninterest bearing	$	229,101	$	229,101	$	229,101	$	—	$	—
Interest bearing	707,872		707,872		707,872		—		—
Time	285,315		282,162		—		282,162		—


Long-term borrowed funds	90,696		90,282		—		90,282		—
Subordinated notes	16,230		13,455		—		13,455		—
Accrued interest payable	1,518		1,518		—		1,518		—


	December 31, 2022
	Fair Value Measurements
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets
Cash and cash equivalents	$	37,885	$	37,885	$	37,885	$	—	$	—
Interest bearing deposits in banks	16,428		16,428		—		16,428		—
Investment securities	251,531		251,531		3,815		247,716		—
Loans held for sale	1,178		1,202		—		1,202		—
Loans, net
Residential real estate	350,507		319,066		—		—		319,066
Construction real estate	95,723		94,231		—		—		94,231
Commercial real estate	373,990		358,897		—		—		358,897
Commercial	40,729		38,588		—		—		38,588
Consumer	2,197		2,161		—		—		2,161
Municipal	88,008		86,306		—		—		86,306
Accrued interest receivable	4,163		4,163		—		1,014		3,149
Nonmarketable equity securities	2,816		N/A		N/A		N/A		N/A
Financial liabilities
Deposits
Noninterest bearing	$	286,145	$	286,145	$	286,145	$	—	$	—
Interest bearing	762,722		762,722		762,722		—		—
Time	153,045		149,166		—		149,166		—

Short-term borrowed funds	50,000		49,997		—		49,997		—

Subordinated notes	16,205		14,037		—		14,037		—
Accrued interest payable	354		354		—		354		—