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Note 20 - Fair Value Measurement

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE 20 Fair Value Measurement

ASC 820, Fair Value Measurements, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system consisting of three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access.

Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

The following table summarizes the assets of the Company for which fair values are determined on a recurring basis as of December 31, 2021 and 2020.

		Carrying Value at December 31, 2021
*(Dollars in thousands)*		Total				Level 1				Level 2				Level 3
Securities available for sale		$	285,765				0				285,765				0
Equity securities			248				0				248				0
Mortgage loan commitments			26				0				26				0
Total		$	286,039				0				286,039				0

		Carrying Value at December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale		$	148,090				0				148,090				0
Equity securities			149				0				149				0
Mortgage loan commitments			261				0				261				0
Total		$	148,500				0				148,500				0

The Company may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of the lower-of-cost-or-market accounting or write downs of individual assets. For assets measured at fair value on a nonrecurring basis in 2021 and 2020 that were still held at December 31, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at December 31, 2021 and 2020.

		Carrying Value at December 31, 2021
*(Dollars in thousands)*		Total				Level 1				Level 2				Level 3				Year Ended December 31, 2021 Total Losses
Loans held for sale		$	5,575				0				5,575				0				(56	)
Mortgage servicing rights, net			3,280				0				3,280				0				0
Impaired loans			4,244				0				4,244				0				(218	)
Real estate, net			290				0				290				0				0
Total		$	13,389				0				13,389				0				(274	)

		Carrying Value at December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3				Year Ended December 31, 2020 Total Gains (Losses)
Loans held for sale		$	6,186				0				6,186				0				28
Mortgage servicing rights, net			3,043				0				3,043				0				0
Impaired loans			2,888				0				2,888				0				(76	)
Real estate, net			636				0				636				0				0
Total		$	12,753				0				12,753				0				(48	)

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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