Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value of Financial Instruments [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

(in thousands)	Fair Value at September 30, 2021		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale	$	17,092	Discounted Cash Flow	Discount Rate	4.50%
Non-recurring:
Impaired Loans	$	2,002	Market Comparable Properties	Marketability Discount	10.0% - 15.0% (1) (weighted avg 10.5%)
Other Real Estate Owned	$	349	Market Comparable Properties	Marketability Discount	15.0%

(in thousands)	Fair Value at December 31, 2020		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale	$	13,260	Discounted Cash Flow	Discount Rate	5.50%
Non-recurring:
Impaired Loans	$	1,465	Market Comparable Properties	Marketability Discount	10.0% - 15.0% (1) (weighted avg 12.5%)
Other Real Estate Owned	$	913	Market Comparable Properties	Marketability Discount	15.0%

(1) Range would include discounts taken since appraisal and estimated values

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

			Fair Value Measurements at September 30, 2021 Using
			Quoted
			Prices in	Significant
	Assets/(liabilities)		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	09/30/21		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	53,734		$	53,734
Residential mortgage-backed agencies	$	30,354		$	30,354
Commercial mortgage-backed agencies	$	55,509		$	55,509
Collateralized mortgage obligations	$	69,079		$	69,079
Obligations of states and political subdivisions	$	9,796		$	9,796
Collateralized debt obligations	$	17,092				$	17,092
Financial derivatives	$	(727)		$	(727)
Non-recurring:
Impaired loans	$	2,002				$	2,002
Other real estate owned	$	349				$	349

			Fair Value Measurements at December 31, 2020 Using
			Quoted
			Prices in	Significant
	Assets/(liabilities)		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	12/31/20		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	76,433		$	76,433
Residential mortgage-backed agencies	$	22,899		$	22,899
Commercial mortgage-backed agencies	$	33,042		$	33,042
Collateralized mortgage obligations	$	70,637		$	70,637
Obligations of states and political subdivisions	$	10,614		$	10,614
Collateralized debt obligations	$	13,260				$	13,260
Financial derivatives	$	(1,320)		$	(1,320)
Non-recurring:
Impaired loans	$	1,465				$	1,465
Other real estate owned	$	913				$	913

Reconciliation of Fair Valued Assets Measured on a Recurring Basis

	Fair Value Measurements
	Using Significant Unobservable Inputs
	(Level 3)
	Investment Securities
(in thousands)	Available for Sale
Beginning balance January 1, 2021	$	13,260
Total losses realized/unrealized:
Included in other comprehensive income		3,832
Ending balance September 30, 2021	$	17,092

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance July 1, 2021	$	16,230
Total gains realized/unrealized:
Included in other comprehensive income		862
Ending balance September 30, 2021	$	17,092

	Fair Value Measurements
	Using Significant Unobservable Inputs
	(Level 3)
	Investment Securities
(in thousands)	Available for Sale
Beginning balance January 1, 2020	$	14,354
Total losses realized/unrealized:
Included in other comprehensive loss		(1,594)
Ending balance September 30, 2020	$	12,760

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance July 1, 2020	$	11,952
Total losses realized/unrealized:
Included in other comprehensive income		808
Ending balance September 30, 2020	$	12,760

Fair Value by Balance Sheet Grouping

	September 30, 2021				Fair Value Measurements
					Quoted
					Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
(in thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	129,062	$	129,062	$	129,062
Interest bearing deposits in banks		5,876		5,876		5,876
Investment securities - AFS		235,564		235,564			$	218,472	$	17,092
Investment securities - HTM		61,979		71,707				42,633		29,074
Restricted bank stock		1,029		N/A
Loans, net		1,143,791		1,135,878						1,135,878
Accrued interest receivable		5,034		5,034				948		4,086
Financial Liabilities:
Deposits - non-maturity		1,270,342		1,270,342				1,270,342
Deposits - time deposits		174,152		175,298				175,298
Financial derivatives		727		727				727
Short-term borrowed funds		72,396		72,396				72,396
Long-term borrowed funds		30,929		30,980				30,980
Accrued interest payable		142		142				142
Off balance sheet financial instruments		—		—		—

	December 31, 2020				Fair Value Measurements
					Quoted
					Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
(in thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	146,673	$	146,673	$	146,673
Interest bearing deposits in banks		2,759		2,759		2,759
Investment securities - AFS		226,885		226,885			$	213,625	$	13,260
Investment securities - HTM		68,263		77,612				49,442		28,170
Restricted bank stock		4,468		N/A
Loans, net		1,149,596		1,150,186						1,150,186
Accrued interest receivable		6,241		6,241				907		5,334
Financial Liabilities:
Deposits - non-maturity		1,194,140		1,194,140				1,194,140
Deposits - time deposits		228,226		231,241				231,241
Financial derivative		1,320		1,320				1,320
Short-term borrowed funds		49,160		49,160				49,160
Long-term borrowed funds		100,929		104,825				104,825
Accrued interest payable		391		391				391
Off balance sheet financial instruments		—		—		—