v3.25.2
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
 
Balance: March 31, 2024
 
$
566
 
Total unrealized losses:
       
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