| FAIR VALUE OF FINANCIAL INSTRUMENTS |
NOTE 8. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheets at June 30, 2025 and December 31, 2024 (in thousands): | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | Carrying Value | | Estimated Fair Value | | Carrying Value | | Estimated Fair Value | Cash and Cash Equivalents - Level 1 | | $ | 8,551 | | $ | 8,551 | | $ | 9,017 | | $ | 9,017 | Restricted Cash - Level 1 | | $ | 10,291 | | $ | 10,291 | | $ | 8,344 | | $ | 8,344 | Commercial Loans and Investments - Level 2 | | $ | 106,128 | | $ | 109,697 | | $ | 105,043 | | $ | 110,665 | Long-Term Debt - Level 2 | | $ | 605,351 | | $ | 596,879 | | $ | 518,993 | | $ | 508,309 |
To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following table presents the fair value of assets (liabilities) measured on a recurring basis by level as of June 30, 2025 and December 31, 2024 (in thousands). See Note 16, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. | | | | | | | | | | | | | | | | | | Fair Value at Reporting Date Using | | | Fair Value | | Quoted Prices in Active Markets for Identical Assets
(Level 1) | | Significant Other Observable Inputs
(Level 2) | | Significant Unobservable Inputs
(Level 3) | June 30, 2025 | | | | | | | | | | | | | Cash Flow Hedge - 2026 Term Loan Interest Rate Swaps | | $ | 366 | | $ | — | | $ | 366 | | $ | — | Cash Flow Hedge - 2027 Term Loan Interest Rate Swaps | | $ | 2,536 | | $ | — | | $ | 2,536 | | $ | — | Cash Flow Hedge - 2028 Term Loan Interest Rate Swaps | | $ | (1,545) | | $ | — | | $ | (1,545) | | $ | — | Cash Flow Hedge - 2029 Term Loan Interest Rate Swaps | | $ | 335 | | $ | — | | $ | 335 | | $ | — | Cash Flow Hedge - Credit Facility Interest Rate Swaps | | $ | (371) | | $ | — | | $ | (371) | | $ | — | Investment Securities | | $ | 34,752 | | $ | 34,752 | | $ | — | | $ | — | December 31, 2024 | | | | | | | | | | | | | Cash Flow Hedge - 2026 Term Loan Interest Rate Swaps | | $ | 2,372 | | $ | — | | $ | 2,372 | | $ | — | Cash Flow Hedge - 2027 Term Loan Interest Rate Swaps | | $ | 5,854 | | $ | — | | $ | 5,854 | | $ | — | Cash Flow Hedge - 2028 Term Loan Interest Rate Swaps | | $ | 1,001 | | $ | — | | $ | 1,001 | | $ | — | Cash Flow Hedge - 2029 Term Loan Interest Rate Swaps | | $ | 3,099 | | $ | — | | $ | 3,099 | | $ | — | Cash Flow Hedge - Credit Facility Interest Rate Swaps | | $ | 191 | | $ | — | | $ | 191 | | $ | — | Investment Securities | | $ | 39,666 | | $ | 39,666 | | $ | — | | $ | — |
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