FAIR VALUE MEASUREMENTS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | NOTE 9 – FAIR VALUE The fair value of an asset or liability is the price that would be received to sell that asset or paid transaction occurring in the principal market (or most advantageous market in liability. approach and/or the cost approach. assumptions that market participants would use in pricing an asset or liability. establishes a fair value hierarchy for valuation inputs that gives the highest priority assets or liabilities and the lowest priority to unobservable inputs. ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting ability to access at the measurement date . ● Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, or indirectly. These might or similar assets or liabilities in markets that are not active, inputs other liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) corroborated, by market data by correlation or other means . ● Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect assumptions about the assumptions that market participants would Assets and Liabilities Measured at Fair Value Securities Available for Sale. U.S. Treasury securities are reported at fair value available for sale are reported at fair value utilizing Level 2 inputs. from an independent pricing service. spreads, cash flows, the U.S. Treasury yield curve, and conditions, among other things. In general, the Company does not purchase securities that have a complicated structure. traditional investments, nearly all of which are U.S. Treasury general obligation or revenue-based municipal bonds. will validate prices supplied by the independent pricing service by compari source. Equity Securities. through net income as an adjustment to the investment balance. These securities are not as a Level 3 input within the fair value hierarchy. Loans Held for Sale . using either quoted secondary-market prices or investor commitments. using quoted prices for a similar asset or assets, adjusted for the specific attributes of participants. Mortgage Banking Derivative Instruments. The fair values of interest rate lock commitments (“IRLCs”) are derived by valuation models incorporating market pricing for instruments with similar characteristics, investor commitment prices for best effort IRLCs which have servicing rights expected to be recorded upon sale of the loans, net estimated costs to originate and are therefore classified as Level 3 within the fair value hierarchy. observable market pricing for similar instruments and are therefore Interest Rate Swap. The Company’s derivative positions models generally accepted in the financial services industry and external market data providers. Fair Value . valuation represents the amount due and payable to the counterparty based upon period. The Company’s observable market input values from external market data providers. no amounts payable. A summary of fair values for assets and liabilities recorded at fair Level 1 Level 2 Level 3 Total (Dollars in Thousands) Inputs Inputs Inputs Value June 30, 2025 ASSETS: Securities Available for U.S. Government Treasury $ 222,321 $ - $ - $ 222,321 U.S. Government Agency - 163,068 - 163,068 States and Political Subdivisions - 37,873 - 37,873 Mortgage-Backed Securities - 53,628 - 53,628 Corporate Debt Securities - 48,470 - 48,470 Equity Securities - - 3,242 3,242 Loans Held for Sale - 19,181 - 19,181 Residential Mortgage Loan Commitments ("IRLCs") - - 652 652 Interest Rate Swap Derivative - 4,130 - 4,130 LIABILITIES: Forward Sales Contracts - 189 - 189 December 31, 2024 ASSETS: Securities Available for U.S. Government Treasury $ 105,801 $ - $ - $ 105,801 U.S. Government Agency - 143,127 - 143,127 States and Political Subdivisions - 39,382 - 39,382 Mortgage-Backed Securities - 55,477 - 55,477 Corporate Debt Securities - 51,462 - 51,462 Equity Securities - - 2,399 2,399 Loans Held for Sale - 28,672 - 28,672 Interest Rate Swap Derivative - 5,319 - 5,319 Forward Sales Contracts - 96 - 96 Residential Mortgage Loan Commitments ("IRLCs") - - 248 248 Mortgage Banking Activities . 4.3 and $ 8.4 4.1 7.1 months ended June 30, 2024. of the IRLC to the Consolidated Statement of Financial Condition date, transferred out of Level 3 represent IRLCs that were funded and moved Assets Measured at Fair Value Certain assets are measured at fair value on a non-recurring basis (i.e., the but are subject to fair value adjustments in certain circumstances). The following is a description of valuation methodologies used for assets measured Collateral Dependent Loans . costs. regulations. estimation involved in the real estate appraisal process. basis for additional impairment and adjusted accordingly. periods. 7.3 no value of $ 3.6 0.1 Other Real Estate Owned . reported at fair value through a charge-off estimated cost to sell. conformance with banking regulations. adjustments as necessary. involved in the real estate valuation process. Mortgage Servicing Rights . upon the fair value of the rights as compared to the carrying amount. estimated prepayment speeds of the underlying mortgage loans serviced and underlying loans (predominantly loan type and note interest rate). discount rate, weighted average prepayment speed, and the cost of loan provided in Note 4 – Mortgage Banking Activities. no allowance for loan servicing rights. Assets and Liabilities Disclosed at Fair Value The Company is required to disclose the estimated fair value of financial instruments, practical to estimate fair value and the following is a description of valuation Cash and Short-Term The carrying amount of cash and short-term investments is used to approximate the short time frame to maturity and as such assets do not present unanticipated Securities Held to Maturity . caption “Assets and Liabilities Measured at Fair Value Other Equity Securities. securities are not readily marketable securities and are reflected in Other Loans. techniques based upon projected cash flows and estimated discount discount to meet the objective of “exit price” valuation. Deposits. amounts payable on demand at the reporting date. The fair value of fixed maturity value techniques and rates currently offered for deposits of Subordinated Notes Payable. flows and estimated discount rates as well as rates being offered Short-Term projected cash flows and estimated discount rates as well as rates being offered A summary of estimated fair values of significant financial instruments not June 30, 2025 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 78,485 $ 78,485 $ - $ - Fed Funds Sold and Interest Bearing Deposits 394,917 394,917 - - Investment Securities, Held to Maturity 462,599 232,751 216,160 - Other Equity Securities (1) 3,242 - 3,242 - Mortgage Servicing Rights 889 - - 1,465 Loans, Net of Allowance for Credit Losses 2,601,628 - - 2,468,513 LIABILITIES: Deposits $ 3,704,853 $ - $ 3,077,764 $ - Short-Term 34,541 - 34,092 - Subordinated Notes Payable 42,582 - 39,537 - Long-Term Borrowings 680 - 680 - December 31, 2024 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 70,543 $ 70,543 $ - $ - Fed Funds Sold and Interest Bearing Deposits 321,311 321,311 - - Investment Securities, Held to Maturity 567,155 361,529 182,931 - Other Equity Securities (1) 2,848 - 2,848 - Mortgage Servicing Rights 933 - - 1,616 Loans, Net of Allowance for Credit Losses 2,622,299 - - 2,457,883 LIABILITIES: Deposits $ 3,671,977 $ - $ 3,046,926 $ - Short-Term 28,304 - 28,304 - Subordinated Notes Payable 52,887 - 42,530 - Long-Term Borrowings 794 - 794 - (1) Accounted for under the equity method – not readily All non-financial instruments are excluded from the above table. aggregate fair value amounts presented do not represent the underlying |