Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021 are reflected below.

	(In Thousands)
	March 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	139,522	$	139,522	$	139,522	$	-	$	-
Interest-bearing time deposits		8,677		8,690		-		8,690		-
Securities - available-for-sale		413,996		413,996		99,545		310,949		3,502
Other securities		8,568		8,568		-		-		8,568
Loans held for sale		6,060		6,162		-		-		6,162
Loans, net		1,945,449		1,969,643		-		-		1,969,643
Interest receivable		7,961		7,961		-		-		7,961
Financial Liabilities:
Interest bearing deposits	$	1,308,762	$	1,306,633	$	-	$	-	$	1,306,633
Non-interest bearing deposits		497,249		497,249		-		497,249		-
Time deposits		447,586		451,085		-		-		451,085
Total Deposits		2,253,597		2,254,967		-		497,249		1,757,718
Federal funds purchased and securities sold under    agreement to repurchase		31,680		31,680		-		-		31,680
Federal Home Loan Bank advances		22,656		22,448		-		-		22,448
Other borrowings		40,000		40,000		-		40,000		-
Subordinated notes, net of unamortized issuance costs		34,499		35,000		-		35,000		-
Interest payable		823		823		-		-		823

	(In Thousands)
	December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	180,823	$	180,832	$	180,823	$	-	$	-
Interest-bearing time deposits		10,913		10,933		-		10,933		-
Securities - available-for-sale		429,931		429,931		89,177		335,981		4,773
Other securities		8,162		8,162		-		-		8,162
Loans held for sale		7,714		7,844		-		-		7,844
Loans, net		1,841,177		1,864,386		-		-		1,864,386
Interest receivable		7,209		7,209		-		-		7,209
Financial Liabilities:
Interest bearing deposits	$	1,248,294	$	1,248,044	$	-	$	-	$	1,248,044
Non-interest bearing deposits		473,689		473,689		-		473,689		-
Time deposits		471,479		475,810		-		-		475,810
Total Deposits		2,193,462		2,197,543		-		473,689		1,723,854
Federal funds purchased and securities sold under    agreement to repurchase		29,268		29,268		-		-		29,268
Federal Home Loan Bank advances		24,065		24,305		-		-		24,305
Other borrowings		40,000		40,000		-		40,000		-
Subordinated notes, net of unamortized issuance costs		34,471		35,000		-		35,000		-
Interest payable		1,125		1,125		-		-		1,125

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, 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)
March 31, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury	$	99,545	$	-	$	-
U.S. Government agencies		-		143,807		-
Mortgage-backed securities		-		105,060		-
State and local governments		-		62,082		3,502
Total Securities Available-for-Sale	$	99,545	$	310,949	$	3,502

December 31, 2021	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury	$	89,177	$	-	$	-
U.S. Government agencies		-		156,886		-
Mortgage-backed securities		-		117,927		-
State and local governments		-		61,168		4,773
Total Securities Available-for-Sale	$	89,177	$	335,981	$	4,773

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

The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three month periods ended March 31, 2022 and March 31, 2021.  For the three month period ended March 31, 2022, there was one security transfer from Level 3 to Level 2.

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local Governments Tax-Exempt			State and Local Governments Taxable			State and Local Governments Total
Balance at January 1, 2022	$	2,307		$	2,466		$	4,773
Change in Market Value		(39	)		(83	)		(122	)
Payments & Maturities		(160	)		-			(160	)
Reclassification & Adjustments		-			(989	)		(989	)
Balance at March 31, 2022	$	2,108		$	1,394		$	3,502

	(In Thousands)
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	State and Local Governments Tax-Exempt		State and Local Governments Taxable			State and Local Governments Total
Balance at January 1, 2021	$	-	$	1,562		$	1,562
Change in Market Value		-		(23	)		(23	)
Payments & Maturities		-		-			-
Reclassification & Adjustments		-		-			-
Balance at March 31, 2021	$	-	$	1,539		$	1,539

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)				Range
	Fair Value at				(Weighted
	March 31, 2022		Valuation Technique	Unobservable Inputs	Average)
State and local government	$	3,502	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	0.97-2.94% (2.45%)
Collateral dependent    impaired loans		7,099	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	20.00-36.49% (31.27%)
Mortgage servicing rights		3,336	Discounted Cash Flow	Constant prepayment rate and probability of default / Discount rate	4.39-18.42% (11.54%)
Other real estate owned -    residential		-	Appraisals	Discount to reflect current market	— % ( — %)

	(In Thousands)				Range
	Fair Value at				(Weighted
	December 31, 2021		Valuation Technique	Unobservable Inputs	Average)
State and local government	$	4,773	Discounted Cash Flow	Credit strength of underlying project or entity / Discount rate	0.21-1.77% (1.33%)
Collateral dependent    impaired loans		8,527	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	20.00-53.95% (34.78%)
Mortgage servicing rights		3,157	Discounted Cash Flow	Constant prepayment rate and probability of default / Discount rate	1.94-27.70% (18.44%)
Other real estate owned -    residential		99	Appraisals	Discount to reflect current market	32.72% (32.72%)

Impaired Loans

The following table presents impaired loans as recorded at fair value on March 31, 2022 and December 31, 2021:

	Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2022
	(In Thousands)
	Balance at March 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent    impaired loans	$	7,099	$	-	$	-	$	7,099
Mortgage servicing rights		3,336		-		-		3,336
Other real estate    owned - residential		-		-		-		-

	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2021
	(In Thousands)
	Balance at December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent    impaired loans	$	8,527	$	-	$	-	$	8,527
Mortgage servicing rights		3,157		-		-		3,157
Other real estate    owned - residential		99		-		-		99