Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2020

Assets and liabilities measured on recurring basis measured at fair value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2020 and 2019.


	At December 31, 2020
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	22,730,000	$	—	$	22,730,000
Mortgage-backed securities	—		243,406,000		—		243,406,000
State and political subdivisions	—		39,474,000		—		39,474,000
Asset-backed securities	—		7,766,000		—		7,766,000


Total securities available for sale	—		313,376,000		—		313,376,000

Customer loan interest swap agreements	—		2,640,000		—		2,640,000
Total interest rate swap agreements	—		2,640,000		—		2,640,000
Total assets	$	—	$	316,016,000	$	—	$	316,016,000


	At December 31, 2020
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	6,242,000	$	—	$	6,242,000
Customer loan interest swap agreements	—		2,640,000		—		2,640,000
Total liabilities	$	—	$	8,882,000	$	—	$	8,882,000


	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	7,398,000	$	—	$	7,398,000
Mortgage-backed securities	—		326,617,000		—		326,617,000
State and political subdivisions	—		26,505,000		—		26,505,000


Total securities available for sale	—		360,520,000		—		360,520,000
Interest rate swap agreements	—		562,000		—		562,000
Customer loan interest swap agreements	—		1,205,000		—		1,205,000
Total interest rate swap agreements	—		1,767,000		—		1,767,000
Total assets	$	—	$	362,287,000	$	—	$	362,287,000


	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	439,000	$	—	$	439,000
Customer loan interest swap agreements	—		1,205,000		—		1,205,000
Total liabilities	$	—	$	1,644,000	$	—	$	1,644,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following tables present assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Mortgage servicing rights are presented net of an impairment reserve of $358,000 at December 31, 2020 and $0 at December 31, 2019. Other real estate owned is presented net of an allowance for losses of $45,000 at December 31, 2020 and $0 at December 31, 2019. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $304,000 and $1,916,000 at December 31, 2020 and 2019, respectively.


	At December 31, 2020
	Level 1		Level 2		Level 3		Total
Mortgage servicing rights	$	—	$	1,985,000	$	—	$	1,985,000

Other real estate owned	—		908,000		—		908,000
Impaired loans	—		794,000		—		794,000
Total assets	$	—	$	3,687,000	$	—	$	3,687,000


	At December 31, 2019
	Level 1		Level 2		Level 3		Total
Mortgage servicing rights	$	—	$	2,089,000	$	—	$	2,089,000

Other real estate owned	$	—	$	279,000	$	—	$	279,000
Impaired loans	—		6,579,000		—		6,579,000
Total assets	$	—	$	8,947,000	$	—	$	8,947,000

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2020 were as follows:


	Carrying	Estimated
As of December 31, 2020	value	fair value	Level 1		Level 2	Level 3
Financial assets



Securities to be held to maturity	$365,613,000	$377,134,000	$	—	$377,134,000	$	—


Loans (net of allowance for loan losses)
Commercial
Real estate	436,161,000	440,735,000	—		347,000	440,388,000
Construction	55,803,000	56,388,000	—		—	56,388,000
Other	281,057,000	279,501,000	—		5,000	279,496,000
Municipal	43,586,000	44,440,000	—		—	44,440,000
Residential
Term	519,101,000	533,059,000	—		442,000	532,617,000
Construction	21,483,000	21,890,000	—		—	21,890,000
Home equity line of credit	78,356,000	77,177,000	—		—	77,177,000
Consumer	24,961,000	23,502,000	—		—	23,502,000
Total loans	1,460,508,000	1,476,692,000	—		794,000	1,475,898,000
Mortgage servicing rights	1,956,000	1,985,000	—		1,985,000	—


Financial liabilities




Local certificates of deposit	$250,264,000	$253,892,000	—		$253,892,000	—
National certificates of deposit	355,321,000	359,899,000	—		359,899,000	—
Total certificates of deposit	605,585,000	613,791,000	—		613,791,000	—
Repurchase agreements	69,340,000	69,497,000	—		69,497,000	—
Other borrowed funds	192,698,000	194,469,000	—		194,469,000	—
Total borrowed funds	262,038,000	263,966,000	—		263,966,000	—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2019 were as follows:


	Carrying	Estimated
As of December 31, 2019	value	fair value	Level 1		Level 2	Level 3
Financial assets



Securities to be held to maturity	$281,606,000	$287,045,000	$	—	$287,045,000	$	—


Loans (net of allowance for loan losses)
Commercial
Real estate	368,645,000	364,626,000	—		2,000	364,624,000
Construction	37,678,000	37,366,000	—		—	37,366,000
Other	215,068,000	212,548,000	—		5,046,000	207,502,000
Municipal	41,258,000	40,552,000	—		—	40,552,000
Residential
Term	491,315,000	491,359,000	—		577,000	490,782,000
Construction	14,785,000	14,786,000	—		—	14,786,000
Home equity line of credit	91,149,000	90,959,000	—		954,000	90,005,000
Consumer	25,538,000	23,489,000	—		—	23,489,000
Total loans	1,285,436,000	1,275,685,000	—		6,579,000	1,269,106,000
Mortgage servicing rights	1,546,000	2,089,000	—		2,089,000	—


Financial liabilities




Local certificates of deposit	$285,602,000	$281,480,000	$	—	$281,480,000	$	—
National certificates of deposit	404,377,000	412,337,000	—		412,337,000	—
Total certificates of deposit	689,979,000	693,817,000	—		693,817,000	—
Repurchase agreements	37,450,000	37,450,000	—		37,450,000	—
Other borrowed funds	147,505,000	140,063,000	—		140,063,000	—
Total borrowed funds	184,955,000	177,513,000	—		177,513,000	—