v3.25.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024.

 

 

 

Fair Value Measurements as of June 30, 2025 Using

 

 

 

Totals At
June 30,
2025

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

88,957

 

 

$

—

 

 

$

88,957

 

 

$

—

 

Commercial

 

 

10,374

 

 

 

—

 

 

 

10,374

 

 

 

—

 

Obligations of U.S. government-sponsored agencies

 

 

10,325

 

 

 

—

 

 

 

10,325

 

 

 

—

 

Obligations of states and political subdivisions

 

 

1,296

 

 

 

—

 

 

 

1,296

 

 

 

—

 

Corporate notes

 

 

16,535

 

 

 

—

 

 

 

16,535

 

 

 

—

 

U.S. Treasury securities

 

 

29,089

 

 

 

29,089

 

 

 

—

 

 

 

—

 

Derivative contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets - interest rate floors

 

 

302

 

 

 

—

 

 

 

302

 

 

 

—

 

Other assets - interest rate swaps

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

75

 

 

 

—

 

 

 

75

 

 

 

—

 

 

 

 

Fair Value Measurements as of December 31, 2024 Using

 

 

 

Totals At
December 31,
2024

 

 

Quoted
Prices in
Active
Markets
For Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

85,282

 

 

$

—

 

 

$

85,282

 

 

$

—

 

Commercial

 

 

11,920

 

 

 

—

 

 

 

11,920

 

 

 

—

 

Obligations of U.S. government-sponsored agencies

 

 

10,834

 

 

 

—

 

 

 

10,834

 

 

 

 

Obligations of states and political subdivisions

 

 

1,549

 

 

 

—

 

 

 

1,549

 

 

 

—

 

Corporate notes

 

 

15,944

 

 

 

 

 

 

15,944

 

 

 

—

 

U.S. Treasury securities

 

 

42,359

 

 

 

42,359

 

 

 

—

 

 

 

—

 

Derivative contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets - interest rate swaps

 

 

678

 

 

 

—

 

 

 

678

 

 

 

—

 

Other assets - interest rate floors

 

 

18

 

 

 

—

 

 

 

18

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

54

 

 

 

—

 

 

 

54

 

 

 

—

 
Fair Value Assets Measured on Nonrecurring Basis

The following table presents the balances of collateral dependent loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of June 30, 2025 and December 31, 2024:

 

 

 

Fair Value Measurements as of June 30, 2025 Using

 

 

 

Totals At
June 30,
2025

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Collateral dependent loans

 

$

871

 

 

$

—

 

 

$

—

 

 

$

871

 

OREO and other assets held-for-sale

 

 

1,298

 

 

 

—

 

 

 

—

 

 

 

1,298

 

 

 

 

Fair Value Measurements as of December 31, 2024 Using

 

 

 

Totals At
December 31,
2024

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Collateral dependent loans

 

$

2,026

 

 

$

—

 

 

$

—

 

 

$

2,026

 

OREO and other assets held-for-sale

 

 

1,509

 

 

 

—

 

 

 

—

 

 

 

1,509

 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

 

 

 

Level 3 Significant Unobservable Input Assumptions

 

 

Fair Value
June 30,
2025

 

 

Valuation Technique

 

Unobservable Input

 

Quantitative Range
of Unobservable
Inputs
(Weighted Average)

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Non-recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

871

 

 

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

OREO and other assets held-for-sale

 

$

1,298

 

 

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

Level 3 Significant Unobservable Input Assumptions

 

 

Fair Value
December 31, 2024

 

 

Valuation Technique

 

Unobservable Input

 

Quantitative Range
of Unobservable
Inputs
(Weighted Average)

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Non-recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

2,026

 

 

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

OREO and other assets held-for-sale

 

$

1,509

 

 

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%
Fair Value, by Balance Sheet Grouping

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30, 2025

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,955

 

 

$

53,955

 

 

$

53,955

 

 

$

—

 

 

$

—

 

Investment securities available-for-sale

 

 

156,576

 

 

 

156,576

 

 

 

29,089

 

 

 

127,487

 

 

 

—

 

Investment securities held-to-maturity

 

 

561

 

 

 

535

 

 

 

—

 

 

 

535

 

 

 

—

 

Federal funds sold and securities purchased under reverse repurchase agreements

 

 

4,850

 

 

 

4,850

 

 

 

—

 

 

 

4,850

 

 

 

—

 

Federal Home Loan Bank stock

 

 

1,741

 

 

 

1,741

 

 

 

—

 

 

 

—

 

 

 

1,741

 

Loans, net of allowance for credit losses

 

 

860,043

 

 

 

816,348

 

 

 

—

 

 

 

—

 

 

 

816,348

 

Other assets - interest rate floors

 

 

302

 

 

 

302

 

 

 

—

 

 

 

302

 

 

 

—

 

Other assets - interest rate swaps

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

986,846

 

 

 

930,474

 

 

 

—

 

 

 

930,474

 

 

 

—

 

Short-term borrowings

 

 

35,000

 

 

 

35,000

 

 

 

—

 

 

 

35,000

 

 

 

—

 

Long-term borrowings

 

 

10,909

 

 

 

9,865

 

 

 

—

 

 

 

9,865

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

75

 

 

 

75

 

 

 

—

 

 

 

75

 

 

 

—

 

 

 

 

December 31, 2024

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

47,216

 

 

$

47,216

 

 

$

47,216

 

 

$

—

 

 

$

—

 

Investment securities available-for-sale

 

 

167,888

 

 

 

167,888

 

 

 

42,359

 

 

 

125,529

 

 

 

—

 

Investment securities held-to-maturity

 

 

682

 

 

 

642

 

 

 

—

 

 

 

642

 

 

 

—

 

Federal funds sold

 

 

5,727

 

 

 

5,727

 

 

 

—

 

 

 

5,727

 

 

 

—

 

Federal Home Loan Bank stock

 

 

1,256

 

 

 

1,256

 

 

 

—

 

 

 

—

 

 

 

1,256

 

Loans, net of allowance for credit losses

 

 

812,855

 

 

 

759,870

 

 

 

—

 

 

 

—

 

 

 

759,870

 

Other assets - interest rate swaps

 

 

678

 

 

 

678

 

 

 

—

 

 

 

678

 

 

 

—

 

Other assets - interest rate floors

 

 

18

 

 

 

18

 

 

 

—

 

 

 

18

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

972,557

 

 

 

893,814

 

 

 

—

 

 

 

893,814

 

 

 

—

 

Short-term borrowings

 

 

10,000

 

 

 

10,000

 

 

 

—

 

 

 

10,000

 

 

 

—

 

Long-term borrowings

 

 

10,872

 

 

 

9,590

 

 

 

—

 

 

 

9,590

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

54

 

 

 

54

 

 

 

—

 

 

 

54

 

 

 

—