Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value of Financial Instruments [Abstract]

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

			Fair Value Measurements at June 30, 2023 Using
			Quoted
			Prices in	Significant
	Assets		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	06/30/23		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	9,541		$	9,541
Residential mortgage-backed agencies	$	35,867		$	35,867
Commercial mortgage-backed agencies	$	29,134		$	29,134
Collateralized mortgage obligations	$	20,125		$	20,125
Obligations of states and political subdivisions	$	10,566		$	10,566
Corporate bonds	$	747		$	747
Collateralized debt obligations	$	14,105				$	14,105
Financial derivatives	$	1,084		$	1,084
Non-recurring:
Equity Investment	$	2,545				$	2,545
Other real estate owned	$	—				$	—

			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 June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale -CDO	$	14,105	Discounted Cash Flow	Discount Margin	Range of high 500 to low to mid 600
Non-recurring:
Individually Evaluated Loans, net	$	-	Market Comparable Properties	Marketability Discount	N/A
Equity Investment	$	2,545	Market Method	Revenue Multiples	2.8x

(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

(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		(1,766)
Ending balance June 30, 2023	$	14,105

	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		(934)
Ending balance June 30, 2022	$	16,258

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance April 1, 2023	$	14,114
Total gains realized/unrealized:
Included in other comprehensive income		(9)
Ending balance June 30, 2023	$	14,105

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Investment Securities Available for Sale
Beginning balance April 1, 2022	$	17,319
Total losses realized/unrealized:
Included in other comprehensive income		(1,061)
Ending balance June 30, 2022	$	16,258

Fair Value by Balance Sheet Grouping

	June 30, 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	$	86,901	$	86,901	$	86,901
Interest bearing deposits in banks		1,650		1,650		1,650
Investment securities - AFS		120,085		120,085			$	105,980	$	14,105
Investment securities - HTM		230,759		199,071				179,270		19,801
Restricted bank stock		4,490		N/A
Loans held for sale		500		500						500
Loans, net		1,332,806		1,255,997						1,255,997
Financial derivatives		1,084		1,084				1,084
Accrued interest receivable		6,956		6,956				851		6,105
Financial Liabilities:
Deposits - non-maturity		1,372,823		1,372,823				1,372,823
Deposits - time deposits		207,136		207,774				207,774
Short-term borrowed funds		50,078		50,078				50,078
Long-term borrowed funds		110,929		110,666				110,666
Accrued interest payable		517		517				517

	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
Loans 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				933		5,118
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