Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value of Financial Instruments [Abstract]

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

			Fair Value Measurements at March 31, 2023 Using
			Quoted
			Prices in	Significant
	Assets		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	03/31/23		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	9,653		$	9,653
Residential mortgage-backed agencies	$	37,281		$	37,281
Commercial mortgage-backed agencies	$	30,494		$	30,494
Collateralized mortgage obligations	$	20,977		$	20,977
Obligations of states and political subdivisions	$	10,629		$	10,629
Corporate bonds	$	830		$	830
Collateralized debt obligations	$	14,114				$	14,114
Financial derivatives	$	880		$	880
Non-recurring:
Equity Investment	$	1,796				$	1,796

			Fair Value Measurements at December 31, 2022 Using
			Quoted
			Prices in	Significant
	Assets/(liabilities)		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	12/31/22		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	9,462		$	9,462
Residential mortgage-backed agencies	$	37,401		$	37,401
Commercial mortgage-backed agencies	$	30,732		$	30,732
Collateralized mortgage obligations	$	21,044		$	21,044
Obligations of states and political subdivisions	$	10,492		$	10,492
Corporate bonds	$	887			887
Collateralized debt obligations	$	15,871				$	15,871
Financial derivatives	$	1,068		$	1,068
Non-recurring:
Impaired loans, net	$	211				$	211
Equity investment	$	1,796				$	1,796
Other real estate owned	$	—				$	—

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

(in thousands)	Fair Value at March 31, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale -CDO	$	14,114	Discounted Cash Flow	Discount Margin	Range of low to mid 500 and low to high 700
Non-recurring:
Individually Evaluated Loans, net	$	-	Market Comparable Properties	Marketability Discount	N/A
Equity Investment	$	2,161	Market Method	Revenue Multiples	2.8x
Other Real Estate Owned	$	-	Market Comparable Properties	Marketability Discount	N/A

(in thousands)	Fair Value at December 31, 2022		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale -CDO	$	15,871	Discounted Cash Flow	Discount Rate	Range of low to mid 300 and low to high 400
Non-recurring:
Impaired Loans, net	$	211	Market Comparable Properties	Marketability Discount	10.0% - 15.0%
Equity Investment	$	1,796	Market Method	Revenue Multiples	2.8x
Other Real Estate Owned	$	-	Market Comparable Properties	Marketability Discount	N/A

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

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, 2023	$	15,871
Total losses realized/unrealized:
Included in other comprehensive loss		(1,757)
Ending balance March 31, 2023	$	14,114

	Fair Value Measurements
	Using Significant Unobservable Inputs
	(Level 3)
	Investment Securities
(in thousands)	Available for Sale
Beginning balance January 1, 2022	$	17,192
Total losses realized/unrealized:
Included in other comprehensive loss		127
Ending balance March 31, 2022	$	17,319

Fair Value by Balance Sheet Grouping

	March 31, 2023				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	$	154,022	$	154,022	$	154,022
Interest bearing deposits in banks		1,873		1,873		1,873
Investment securities - AFS		123,978		123,978			$	109,864	$	14,114
Investment securities - HTM		233,083		205,745				185,484		20,261
Restricted bank stock		4,490		N/A
Loans held for sale		184		184						184
Loans, net		1,271,952		1,184,033						1,184,033
Financial derivatives		880		880				880
Accrued interest receivable		6,519		6,519				1,103		5,416
Financial Liabilities:
Deposits - non-maturity		1,412,743		1,412,743				1,412,743
Deposits - time deposits		178,542		178,399				178,399
Short-term borrowed funds		52,030		52,030				52,030
Long-term borrowed funds		110,929		110,929				110,929
Accrued interest payable		473		473				473

	December 31, 2022				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	$	72,720	$	72,720	$	72,720
Interest bearing deposits in banks		1,595		1,595		1,595
Investment securities - AFS		125,889		125,889			$	110,018	$	15,871
Investment securities - HTM		235,659		203,080				182,380		20,700
Restricted bank stock		1,027		N/A
Loan held for sale		—		—
Loans, net		1,264,684		1,177,702						1,177,702
Financial derivative		1,068		1,068				1,068
Accrued interest receivable		6,051		6,051				6,051
Financial Liabilities:
Deposits - non-maturity		1,450,210		1,450,210				1,450,210
Deposits - time deposits		120,523		120,083				120,083
Financial derivatives		—		—				—
Short-term borrowed funds		64,565		64,565				64,565
Long-term borrowed funds		30,929		30,909				30,909
Accrued interest payable		151		151				151