Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Investments, All Other Investments [Abstract]

Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments

The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of December 31, 2023 and December 31, 2022:

	Carrying		Estimated
December 31, 2023	Value		Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	63,434	$	63,434	$	63,434	$	—	$	—
Securities available for sale		336,714		336,714		51,505		285,209		—
Securities held to maturity		28,600		28,544		—		15,422		13,122
Equity securities		302		302		302		—		—
Loans held for investment, net		586,510		544,985		—		—		544,985
Loans held for sale		4,695		4,695		—		4,695		—
Restricted stock		1,672		1,672		1,672		—		—
Loan servicing assets		4,287		7,030		—		7,030		—
Mortgage banking derivatives		852		852		—		46		806
Accrued interest receivable		4,393		4,393		—		—		4,393
FINANCIAL LIABILITIES
Deposits	$	981,713	$	980,534	$	—	$	980,534	$	—
Short-term borrowings		1,379		1,379		—		1,379		—
Long-term debt		29,104		25,102		—		—		25,102
Mortgage banking derivatives		288		288		—		288		—
Accrued interest payable		414		414		—		—		414

Note 16 - Fair Values of Financial Instruments (Continued)

	Carrying		Estimated
December 31, 2022	Value		Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	114,581	$	114,581	$	114,581	$	—	$	—
Securities available for sale		324,683		324,683		50,630		270,054		3,999
Securities held to maturity		30,306		27,178		—		13,526		13,652
Equity securities		292		292		292		—		—
Loans held for investment, net		495,599		458,479		—		—		458,479
Loans held for sale		2,774		2,774		—		2,774		—
Restricted stock		1,428		1,428		1,428		—		—
Loan servicing assets		4,931		6,972		—		6,972		—
Accrued interest receivable		3,633		3,633		—		—		3,633
FINANCIAL LIABILITIES
Deposits	$	939,856	$	938,114	$	—	$	938,114	$	—
Short-term borrowings		1,044		1,044		—		1,044		—
Long-term debt		29,607		25,869		—		—		25,869
Mortgage banking derivatives		175		175		—		80		95
Accrued interest payable		108		108		—		—		108

Fair Value Information for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:

	December 31, 2023
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	51,505	$	51,505	$	—	$	—
U.S. Government agencies		43,018		—		43,018		—
GSE - Mortgage-backed securities and CMOs		123,787		—		123,787		—
Asset-backed securities		31,513		—		31,513		—
State and political subdivisions		81,400		—		81,400		—
Corporate bonds		5,491		—		5,491		—
Equity securities		302		302		—		—
Mortgage banking derivatives		852		—		46		806
Total assets at fair value	$	337,868	$	51,807	$	285,255	$	806
Mortgage banking derivatives	$	288	$	—	$	288	$	—
Total liabilities at fair value	$	288	$	—	$	288	$	—

Note 16 - Fair Values of Financial Instruments (Continued)

	December 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	50,630	$	50,630	$	—	$	—
U.S. Government agencies		33,762		—		33,762		—
GSE - Mortgage-backed securities and CMOs		115,995		—		111,996		3,999
Asset-backed securities		36,686		—		36,686		—
State and political subdivisions		82,266		—		82,266		—
Corporate bonds		5,344		—		5,344		—
Equity securities		292		292		—		—
Mortgage banking derivatives		—		—		—		—
Total assets at fair value	$	324,975	$	50,922	$	270,054	$	3,999
Mortgage banking derivatives	$	175	$	—	$	80	$	95
Total liabilities at fair value	$	175	$	—	$	80	$	95

Schedule of Reconciliation for Recurring Level 3 Fair Value Measurements

The following table provides a reconciliation for recurring Level 3 fair value measurements:

	December 31, 2023
	Mortgage banking derivatives: Interest rate lock commitments			Securities available for sale: GSE mortgage-backed securities and CMOs			Total
	(dollars in thousands)
Balance at December 31, 2021	$	1,016		$	—		$	1,016
Change in fair value:
Included in income from mortgage banking		(1,111	)		—			(1,111	)
Included in accumulated other comprehensive income (loss)		—			(3	)		(3	)
Change in observability of significant inputs:
Included in accumulated other comprehensive income (loss)		—			4,002			4,002
Balance at December 31, 2022	$	(95	)	$	3,999		$	3,904
Change in fair value:
Included in income from mortgage banking		901			—			901
Included in accumulated other comprehensive income (loss)		—			4			4
Change in observability of significant inputs:
Included in accumulated other comprehensive income (loss)		—			(4,003	)		(4,003	)
Balance at December 31, 2023	$	806		$	—		$	806

Assets Measured at Fair Value on Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2023 and December 31, 2022:

	December 31, 2023
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Individually evaluated loans	$	187	$	—	$	—	$	187
Total assets at fair value on a nonrecurring basis	$	187	$	—	$	—	$	187
Total liabilities at fair value on a nonrecurring basis	$	—	$	—	$	—	$	—

	December 31, 2022
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	2,116	$	—	$	—	$	2,116
Total assets at fair value on a nonrecurring basis	$	2,116	$	—	$	—	$	2,116
Total liabilities at fair value on a nonrecurring basis	$	—	$	—	$	—	$	—

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements:

			General
December 31, 2023	Valuation Technique	Unobservable Input	Range
Nonrecurring measurements:
Individually evaluated loans	Discounted appraisals	Collateral discounts and estimated costs to sell	0 - 25%

			General
December 31, 2022	Valuation Technique	Unobservable Input	Range
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 25%
	Discounted cash flows	Discount rates	4%-8.75%