Fair Value Measurements (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
Fair Value Measurements [Abstract] |
|
Assets Measured at Fair Value on a Recurring Basis |
The following tables present the assets and liabilities reported on the Consolidated
Balance Sheet at their fair value on a recurring basis as of June 30, 2025 and December 31, 2024 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of
input that is significant to the fair value measurement.
June 30, 2025
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
Fair value measurements on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$
|
1,768
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,768
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency securities
|
|
|
-
|
|
|
|
54,659
|
|
|
|
-
|
|
|
|
54,659
|
|
U.S. Treasury securities
|
|
|
101,739
|
|
|
|
-
|
|
|
|
-
|
|
|
|
101,739
|
|
Obligations of state and political subdivisions
|
|
|
-
|
|
|
|
93,693
|
|
|
|
-
|
|
|
|
93,693
|
|
Corporate obligations
|
|
|
-
|
|
|
|
10,908
|
|
|
|
-
|
|
|
|
10,908
|
|
Mortgage-backed securities in government sponsored entities
|
|
|
-
|
|
|
|
170,650
|
|
|
|
-
|
|
|
|
170,650
|
|
Loans held for sale
|
|
|
- |
|
|
|
15,529 |
|
|
|
- |
|
|
|
15,529 |
|
Derivative instruments – assets
|
|
|
-
|
|
|
|
7,724
|
|
|
|
548
|
|
|
|
8,272
|
|
Derivative instruments - liabilities
|
|
|
-
|
|
|
|
(4,701
|
)
|
|
|
-
|
|
|
|
(4,701
|
)
|
December 31, 2024
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
Fair value measurements on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$
|
1,747
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,747
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency securities
|
|
|
-
|
|
|
|
53,487
|
|
|
|
-
|
|
|
|
53,487
|
|
U.S. Treasuries securities
|
|
|
120,502
|
|
|
|
-
|
|
|
|
-
|
|
|
|
120,502
|
|
Obligations of state and political subdivisions
|
|
|
-
|
|
|
|
94,902
|
|
|
|
-
|
|
|
|
94,902
|
|
Corporate obligations
|
|
|
-
|
|
|
|
10,438
|
|
|
|
-
|
|
|
|
10,438
|
|
Mortgage-backed securities in government sponsored entities
|
|
|
-
|
|
|
|
146,583
|
|
|
|
-
|
|
|
|
146,583
|
|
Loans held for sale
|
|
|
- |
|
|
|
9,607 |
|
|
|
- |
|
|
|
9,607 |
|
Derivative instruments – assets
|
|
|
-
|
|
|
|
10,053
|
|
|
|
317
|
|
|
|
10,370
|
|
Derivative instruments - liabilities
|
|
|
-
|
|
|
|
(5,817
|
)
|
|
|
-
|
|
|
|
(5,817
|
)
|
|
Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) |
The following tables represent the change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
for the three and six months ended June 30, 2025 and 2024 (in thousands):
For the three months ended June 30, 2025
|
|
|
|
|
|
IRLC-
Asset
|
|
Balance: March 31, 2025
|
|
$
|
472
|
|
Total unrealized losses:
|
|
|
|
|
Included in other comprehensive loss
|
|
|
-
|
|
Total gains included in earnings and held at reporting date
|
|
|
76
|
|
Purchases, sales and settlements |
|
|
- |
|
Transfers in and/or out of Level 3
|
|
|
-
|
|
Ending Balance: June 30, 2025
|
|
$
|
548
|
|
Change in unrealized gains for the period included in earnings for assets held as of June 30, 2025
|
|
|
76
|
|
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2024
|
|
|
- |
|
For the six months ended June 30, 2025
|
|
|
|
|
|
IRLC-
Asset
|
|
Balance: December 31, 2024
|
|
$
|
317
|
|
Total unrealized losses:
|
|
|
|
|
Included in other comprehensive loss
|
|
|
-
|
|
Total gains included in earnings and held at reporting date
|
|
|
231
|
|
Purchases, sales and settlements |
|
|
- |
|
Transfers in and/or out of Level 3
|
|
|
-
|
|
Ending Balance: June 30, 2025
|
|
$
|
548
|
|
Change in unrealized gains for the period included in earnings for assets held as of June 30, 2025
|
|
|
231
|
|
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2024
|
|
|
- |
|
For the three months ended June 30, 2024
|
|
|
|
|
|
IRLC-
Asset
|
|
|
|
$
|
566
|
|
|
|
|
|
|
Included in other comprehensive loss
|
|
|
-
|
|
Total losses included in earnings and held at reporting date
|
|
|
(72
|
)
|
Purchases, sales and settlements
|
|
|
-
|
|
Transfers in and/or out of Level 3
|
|
|
-
|
|
Ending Balance: June 30, 2024
|
|
$ |
494 |
|
Change in unrealized (losses) for the period included in earnings for assets held as of June 30, 2024
|
|
|
(72
|
)
|
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2023
|
|
|
- |
|
For the six months ended June 30, 2024
|
|
|
|
|
|
IRLC-
Asset
|
|
Balance: December 31, 2023
|
|
$
|
324
|
|
Total unrealized losses:
|
|
|
|
|
Included in other comprehensive loss
|
|
|
-
|
|
Total gains included in earnings and held at reporting date
|
|
|
170
|
|
Purchases, sales and settlements
|
|
|
-
|
|
Transfers in and/or out of Level 3
|
|
|
-
|
|
Ending Balance: June 30, 2024
|
|
$
|
494
|
|
Change in unrealized gains for the period included in earnings for assets held as of June 30, 2024
|
|
|
170
|
|
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2023
|
|
|
-
|
|
|
Assets Measured at Fair Value on Non-recurring Basis |
Assets measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31,
2024 are included in the table below (in thousands):
June 30,
2025
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
Collateral-dependent loans
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2,155
|
|
|
$
|
2,155
|
|
Other real estate owned |
|
|
- |
|
|
|
- |
|
|
|
2,434 |
|
|
|
2,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
Collateral-dependent loans
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,579
|
|
|
$
|
3,579
|
|
Other real estate owned
|
|
|
-
|
|
|
|
-
|
|
|
|
2,486
|
|
|
|
2,486
|
|
|
Significant Unobservable Inputs Used in Fair Value Measurement Process |
Significant unobservable inputs for assets measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 (dollars in thousands):
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
|
June 30, 2025 |
|
Fair
Value
|
|
Valuation
Technique
|
Significant
Unobservable
Input
|
|
Range
|
|
|
Weighted
Average
|
|
Measured at Fair Value on a Recurring Basis:
|
|
|
|
|
|
|
|
|
|
|
|
Net derivative asset and liability:
|
|
|
|
|
|
|
|
|
|
|
|
IRLC
|
|
$
|
548
|
|
Discounted cash flows
|
Pull-through rates
|
|
|
71.98%-96.29
|
%
|
|
|
83.88
|
%
|
|
|
Quantitative Information about Level 3 Fair Value Measurements |
|
December 31, 2024 |
|
Fair
Value
|
|
Valuation
Technique |
Significant
Unobservable
Input
|
|
Range |
|
|
Weighted
Average
|
|
Measured
at Fair Value on a Recurring Basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
derivative asset and liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRLC |
|
$ |
317 |
|
Discounted cash flows
|
Pull-through rates |
|
|
76.35%-100.00
|
%
|
|
|
89.65 |
% |
The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level
III techniques (dollars in thousands).
Quantitative Information about Level III Fair Value Measurements |
|
June 30,
2025
|
|
Fair
Value
|
|
Valuation Technique(s)
|
|
Unobservable input
|
|
Range
|
|
|
Weighted
average
|
|
Collateral-dependent loans
|
|
$
|
2,155
|
|
Appraised Collateral Values
|
|
Discount for time since appraisal
|
|
|
0-100
|
%
|
|
|
31.52
|
%
|
|
|
|
|
|
|
|
Selling costs
|
|
|
0%-10
|
%
|
|
|
8.67
|
%
|
|
|
|
|
|
|
|
Holding period
|
|
0 - 12 months
|
|
|
10.88 months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
|
2,434 |
|
Appraised Collateral Values |
|
Discount for time since appraisal |
|
|
20-31.8 |
% |
|
|
31.52 |
% |
December 31, 2024
|
|
Fair
Value
|
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
|
Weighted
average
|
|
Collateral-dependent loans
|
|
|
3,579
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
0-100
|
%
|
|
|
36.67
|
%
|
|
|
|
|
|
|
Selling costs
|
|
|
4%-12
|
%
|
|
|
7.05
|
%
|
|
|
|
|
|
|
Holding period
|
1 - 12 months
|
|
11.04 months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
|
2,486
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
20-32 |
% |
|
|
31.32
|
%
|
|
Carrying Amount and Fair Value of Financial Instruments |
The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring
basis are as follows (in thousands):
June 30, 2025
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing time deposits with other banks
|
|
$
|
3,820
|
|
|
$
|
3,774
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,774
|
|
Net loans
|
|
|
2,219,646
|
|
|
|
2,163,927
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,163,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,292,662
|
|
|
|
2,289,738
|
|
|
|
1,828,008
|
|
|
|
-
|
|
|
|
461,730
|
|
Borrowed funds
|
|
|
313,219
|
|
|
|
307,441
|
|
|
|
-
|
|
|
|
-
|
|
|
|
295,081
|
|
December 31, 2024
|
|
Carrying
Amount
|
|
|
Fair Value |
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing time deposits with other banks
|
|
$
|
3,820
|
|
|
$
|
3,820
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,820
|
|
Net loans
|
|
|
2,291,543
|
|
|
|
2,209,083
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,209,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,382,028
|
|
|
|
2,377,438
|
|
|
|
1,842,223
|
|
|
|
-
|
|
|
|
535,215
|
|
Borrowed funds
|
|
|
297,721
|
|
|
|
284,952
|
|
|
|
-
|
|
|
|
-
|
|
|
|
284,952
|
|
|