Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis

The following tables present the financial instruments carried at fair value as of June 30, 2025 and December 31, 2024, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above):


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	(In Thousands)
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Models with Significant Unobservable Market Parameters (Level 3)
June 30, 2025
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agencies	$	4,675	$	4,675	$	—	$	—
U.S. Government sponsored enterprises		160,417		—		160,417		—
Mortgage-backed securities		526,066		—		526,066		—
Asset-backed securities		48,908		—		48,908		—
State and municipal securities		153,627		—		153,627		—
Total investment securities available-for-sale		893,693		4,675		889,018		—
Mortgage loans held for sale		5,094		—		5,094		—
Derivative instruments		97		—		97		—
Other investments		2,209		—		—		2,209
Total assets	$	901,093	$	4,675	$	894,209	$	2,209

Derivative instruments		35		—		35		—
Total liabilities	$	35	$	—	$	35	$	—


December 31, 2024
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agencies	$	4,538	$	4,538	$	—	$	—
U.S. Government sponsored enterprises		161,973		—		161,973		—
Mortgage-backed securities		454,196		—		454,196		—
Asset-backed securities		50,817		—		50,817		—
Corporate bonds		2,396		—		2,396		—
State and municipal securities		153,973		—		153,973		—
Total investment securities available-for-sale		827,893		4,538		823,355		—
Mortgage loans held for sale		2,529		—		2,529		—
Derivative instruments		61		—		61		—
Other investments		2,191		—	—			2,191
Total assets	$	832,674	$	4,538	$	825,945	$	2,191

Derivative instruments		—		—		—		—
Total liabilities	$	—	$	—	$	—	$	—

Schedule of Fair Value of Financial Instruments Measured on a Non-recurring Basis


	Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
	(In Thousands)
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Models with Significant Unobservable Market Parameters (Level 3)
June 30, 2025
Other real estate owned	$	—	$	—	$	—	$	—
Collateral dependent loans (¹)		4,275		—		—		4,275
Total	$	4,275	$	—	$	—	$	4,275
December 31, 2024
Other real estate owned	$	—	$	—	$	—	$	—
Collateral dependent loans (¹)		37,045		—		—		37,045
Total	$	37,045	$	—	$	—	$	37,045

(1)

The carrying value of collateral dependent loans at June 30, 2025 and December 31, 2024 is net of a valuation allowance of $418,000 and $408,000, respectively.

Schedule of Fair Value Assets Measured At Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2025 and December 31, 2024:


	Valuation Techniques (1)	Significant Unobservable Inputs	Weighted Average
Collateral dependent loans	Appraisal	Estimated costs to sell	10%
Other real estate owned	Appraisal	Estimated costs to sell	10%

(1)

The fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

Summary of Changes in Fair Value Due to Observable Factors

The tables below includes a rollforward of the balance sheet amounts for the three and six months ended June 30, 2025 and 2024 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis.


	For the Three Months Ended June 30,
	2025				2024
	Other Assets		Other Liabilities		Other Assets		Other Liabilities
Fair value, April 1	$	2,207		—	$	2,080		—
Total realized gains included in income		2		—		21		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30		—		—		—		—
Purchases, issuances and settlements, net		—		—		—		—
Transfers out of Level 3		—		—		—		—
Fair value, June 30	$	2,209		—	$	2,101		—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30	$	2		—	$	21		—


	For the Six Months Ended June 30,
	2025				2024
	Other Assets		Other Liabilities		Other Assets		Other Liabilities
Fair value, January 1	$	2,191		—	$	2,045		—
Total realized gains included in income		18		—		56		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30		—		—		—		—
Purchases, issuances and settlements, net		—		—		—		—
Transfers out of Level 3		—		—		—		—
Fair value, June 30	$	2,209		—	$	2,101		—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30	$	18		—	$	56		—

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments

The following table presents the carrying amounts, estimated fair value and placement in the fair valuation hierarchy of the Company’s financial instruments at June 30, 2025 and December 31, 2024.


	Carrying/ Notional		Estimated		Quoted Market Prices in an Active Market		Models with Significant Observable Market Parameters		Models with Significant Unobservable Market Parameters
(in Thousands)	Amount		Fair Value(¹)		(Level 1)		(Level 2)		(Level 3)
June 30, 2025
Financial assets:
Cash and cash equivalents	$	245,313		245,313		245,313		—		—
Loans, net		4,234,091		4,166,792		—		—		4,166,792
Mortgage servicing rights		1,255		1,722		—		1,722		—
Financial liabilities:
Deposits		5,039,737		4,481,579		—		—		4,481,579

December 31, 2024
Financial assets:
Cash and cash equivalents	$	247,589		247,589		247,589		—		—
Loans, net		4,042,392		3,986,187		—		—		3,986,187
Mortgage servicing rights		1,139		1,654		—		1,654		—
Financial liabilities:
Deposits		4,830,034		4,253,072		—		—		4,253,072

(1)

Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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