Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of December 31, 2023 and 2022, are reflected below. The aggregate fair values in the table below do not represent the total market value of the Bank’s assets and liabilities. The table excludes the following: Bank Premises and Equipment, Goodwill, Loan Servicing Rights, Other Real Estate Owned, Other Assets, Other Liabilities and Accrued Expenses.

	(In Thousands)
	December 31, 2023										December 31, 2022
	Carrying		Fair								Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3		Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	142,201	$	142,201	$	142,201	$	-	$	-	$	84,409	$	84,409	$	84,409	$	-	$	-
Interest-bearing time deposits		2,740		2,725		-		2,725		-		4,442		4,440		-		4,440		-
Securities - available-for-sale		358,478		358,478		99,900		256,118		2,460		390,789		390,789		94,678		292,766		3,345
Other securities		17,138		17,138		-		-		17,138		9,799		9,799		-		-		9,799
Loans held for sale		1,576		1,552		-		-		1,552		827		815		-		-		815
Loans, net		2,556,167		2,396,540		-		-		2,396,540		2,336,074		2,171,152		-		-		2,171,152
Interest receivable		11,774		11,774		-		-		11,774		10,440		10,440		-		-		10,440
Financial Liabilities:
Interest bearing deposits	$	1,415,981	$	1,416,007	$	-	$	-	$	1,416,007	$	1,378,090	$	1,377,944	$	-	$	-	$	1,377,944
Noninterest bearing deposits		528,465		528,465		528,465		-		-		532,794		532,794		532,794		-		-
Time deposits		663,017		656,141		-		-		656,141		557,980		543,737		-		-		543,737
Total Deposits		2,607,463		2,600,613		528,465		-		2,072,148		2,468,864		2,454,475		532,794		-		1,921,681
Fed funds purchased and    securities sold under    agreement to repurchase		28,218		28,218		-		-		28,218		54,206		54,206		-		-		54,206
Federal Home Loan Bank  advances		265,750		260,400		-		-		260,400		127,485		125,761		-		-		125,761
Other borrowings		-		-		-		-		-		10,000		10,000		-		10,000		-
Subordinated notes		34,702		30,676		-		30,676		-		34,586		30,993		-		30,993		-
Interest payable		5,441		5,441		-		-		5,441		1,739		1,739		-		-		1,739

Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022 segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis (in Thousands)
	Quoted Prices in		Significant			Significant
	Active Markets		Observable			Observable
	for Identical		Inputs			Inputs
December 31, 2023	Assets (Level 1)		(Level 2)			(Level 3)
Assets-(Securities Available-for-Sale)
U.S. Treasury	$	80,270	$	-		$	-
U.S. Government agencies		19,630		108,592			-
Mortgage-backed securities		-		82,132			-
State and local governments		-		65,394			2,460
Total Securities Available-for-Sale	$	99,900	$	256,118		$	2,460
Interest rate swaps liabilities	$	-	$	(2,679	)	$	-

	Quoted Prices in		Significant		Significant
	Active Markets		Observable		Observable
	for Identical		Inputs		Inputs
December 31, 2022	Assets (Level 1)		(Level 2)		(Level 3)
Assets-(Securities Available-for-Sale)
U.S. Treasury	$	94,678	$	-	$	-
U.S. Government agencies		-		139,767		-
Mortgage-backed securities		-		86,927		-
State and local governments		-		66,072		3,345
Total Securities Available-for-Sale	$	94,678	$	292,766	$	3,345

Changes in the Level 3 Fair-Value Category of Unobservable Inputs

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local			State and Local			State and Local
	Governments			Governments			Governments
	Tax-Exempt			Taxable			Total
Balance at January 1, 2023	$	2,071		$	1,274		$	3,345
Change in Fair Value		38			(2	)		36
Purchases		-			-			-
Sales		-			-			-
Payments & Maturities		(921	)		-			(921	)
Reclassification and Adjustments		-			-			-
Balance at December 31, 2023	$	1,188		$	1,272		$	2,460

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local			State and Local			State and Local
	Governments			Governments			Governments
	Tax-Exempt			Taxable			Total
Balance at January 1, 2022	$	2,307		$	2,466		$	4,773
Change in Fair Value		(76	)		(203	)		(279	)
Purchases		-			-			-
Sales		-			-			-
Payments & Maturities		(160	)		-			(160	)
Reclassification and Adjustments		-			(989	)		(989	)
Balance at December 31, 2022	$	2,071		$	1,274		$	3,345

Assets Measured at Fair Value on Nonrecurring Basis

The following tables present assets measured at fair value on a nonrecurring basis:

	($ in Thousands)
	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2023
			Quoted Prices in
			Markets for		Significant		Significant
	Balance at		Identical		Observable Inputs		Unobservable Inputs
	December 31, 2023		Assets (Level 1)		(Level 2)		(Level 3)
Collateral dependent     loans	$	22,676	$	-	$	-	$	22,676
Loan servicing     rights		58		-		-		58

	($ in Thousands)
	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2022
			Quoted Prices in
			Markets for		Significant		Significant
	Balance at		Identical		Observable Inputs		Unobservable Inputs
	December 31, 2022		Assets (Level 1)		(Level 2)		(Level 3)
Collateral dependent     impaired loans	$	2,667	$	-	$	-	$	2,667
Loan servicing     rights		-		-		-		-

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

	(In Thousands)
	Fair Value at December 31, 2023		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
State and local    government	$	2,460	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	-0.17-4.92% (3.49%)
Collateral dependent    loans		22,676	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0.00-50.00% (0.41%)
Loan servicing     rights		58	Discounted Cash Flow	Constant prepayment rate and probability of default / Discount rate	5.11-22.80% (10.87%)

	(In Thousands)
	Fair Value at December 31, 2022		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
State and local    government	$	3,345	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	2.08-5.01% (4.38%)
Collateral dependent    impaired loans		2,667	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	20.00-29.01% (24.13%)
Loan servicing     rights		-	Discounted Cash Flow	Constant prepayment rate and probability of default / Discount rate	— % ( — )