Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurement [Abstract]

Fair Value Measurements by Level of Valuation Inputs

The following tables summarize financial assets and financial liabilities measured at fair value as of September 30, 2021 and December 31, 2020 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no assets measured at fair value on a non-recurring basis as of September 30, 2021.

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
September 30, 2021	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	40,972	$	—	$	40,972
Obligations of state and political subdivisions		—		9,972		—		9,972
Corporate debt securities		—		30,729		4,520		35,249
Mortgage-backed securities		—		272,116		—		272,116
Total debt securities available for sale	$	—	$	353,789	$	4,520	$	358,309
Equity securities	$	1,111	$	—	$	—	$	1,111
Mortgage servicing rights	$	—	$	—	$	128	$	128
Interest rate swaps	$	—	$	435	$	—	$	435

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
December 31, 2020	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	22,949	$	—	$	22,949
Obligations of state and political subdivisions		—		8,282		—		8,282
Corporate debt securities		—		9,523		2,000		11,523
Mortgage-backed securities		—		243,661		—		243,661
Total debt securities available for sale	$	—	$	284,415	$	2,000	$	286,415
Equity securities	$	1,091	$	—	$	—	$	1,091
Mortgage servicing rights	$	—	$	—	$	158	$	158
Liabilities measured at fair value on a recurring basis:
Interest rate swaps	$	—	$	57	$	—	$	57
Assets measured at fair value on a non-recurring basis:
Impaired loans	$	—	$	—	$	84	$	84

The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2021 and 2020.

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30,				September 30,
	2021		2020		2021		2020
Investment Securities:
Beginning balance	$	4,500	$	—	$	2,000	$	—
Total gains (loss) included in OCI		20		—		20		—
Purchases		—		—		2,500		—
Principal payments and other		—		—		—		—
Sales		—		—		—		—
Balance, end of period	$	4,520	$	—	$	4,520	$	—

Reconciliation of Investment Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2021 and 2020.

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30,				September 30,
	2021		2020		2021		2020
Investment Securities:
Beginning balance	$	4,500	$	—	$	2,000	$	—
Total gains (loss) included in OCI		20		—		20		—
Purchases		—		—		2,500		—
Principal payments and other		—		—		—		—
Sales		—		—		—		—
Balance, end of period	$	4,520	$	—	$	4,520	$	—

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows:

	Financial Instruments
(Dollars in thousands)	September 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	11,995	$	11,995	$	11,868	$	11,868
Interest bearing deposits with banks		703		703		19,753		19,753
Interest bearing time deposits with banks		735		735		735		735
Securities		359,420		359,420		287,506		287,506
Restricted investment in bank stock		2,516		N/A		3,423		N/A
Loans, net of allowance for loan losses		408,039		409,460		418,567		424,791
Interest rate swaps		435		435		—		—
Accrued interest receivable		2,052		2,052		2,105		2,105
Financial liabilities:
Non-interest bearing deposits	$	181,735	$	181,735	$	168,115	$	168,115
Interest bearing deposits		525,847		529,163		454,751		459,224
Securities sold under agreements to repurchase		4,804		N/A		4,750		N/A
Short-term borrowings		—		—		20,000		20,002
FRB advances		—		—		27,955		27,955
Long-term debt		35,000		36,747		35,000		37,365
Interest rate swaps		—		—		57		57
Other interest bearing liabilities		1,538		1,538		1,584		1,585
Accrued interest payable		313		313		448		448
Off-balance sheet financial instruments:
Commitments to extend credit	$	—	$	—	$	—	$	—
Letters of credit		—		—		—		—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of September 30, 2021 and December 31, 2020. The tables exclude financial instruments for which the carrying amount approximates fair value.

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
September 30, 2021
Financial instruments - Assets
Interest bearing time deposits with banks	$	735	$	735	$	—	$	735	$	—
Loans, net of allowance for loan losses		408,039		409,460		—		—		409,460
Financial instruments - Liabilities
Interest bearing deposits	$	525,847	$	529,163	$	—	$	529,163	$	—
Long-term debt		35,000		36,747		—		36,747		—
Other interest bearing liabilities		1,538		1,538		—		1,538		—

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
December 31, 2020
Financial instruments - Assets
Interest bearing time deposits with banks	$	735	$	735	$	—	$	735	$	—
Loans, net of allowance for loan losses		418,567		424,791		—		—		424,791
Financial instruments - Liabilities
Interest bearing deposits	$	454,751	$	459,224	$	—	$	459,224	$	—
Long-term debt		35,000		37,365		—		37,365		—
Other interest bearing liabilities		1,584		1,585		—		1,585		—