Fair Value Disclosures |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Disclosures Text Block | NOTE 5: FAIR VALUE Fair Value “Fair value” is defined by ASC 820, Fair Value , and focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction market (or most advantageous market in the absence of a principal market) GAAP establishes a fair value hierarchy for valuation inputs that gives the highest markets for identical assets or liabilities and the lowest priority to unobservable inputs. follows: Level 1—inputs to the valuation methodology are quoted prices, unadjusted, markets. Level 2—inputs to the valuation methodology include quoted prices for similar quoted prices for identical or similar assets or liabilities in markets that are not asset or liability, either directly Level 3—inputs to the valuation methodology are unobservable and inputs market participants would use in pricing the asset or liability. Level changes in fair value measurements Transfers between levels of the fair value hierarchy Company monitors the valuation techniques utilized for each category transfers between levels have been affected. that transfers in and out of any level are expected to be infrequent. For the six transfers between levels and no changes in valuation techniques for the Assets and liabilities measured at fair value on a recurring Securities available-for-sale Fair values of securities available for sale were primarily measured obtains pricing data from third-party pricing services. include broker/dealer quotes, market spreads, cash flows, benchmark yields, consensus prepayment speeds, credit information, and the securities’ terms management reviews the pricing data received from the third-party pricing conditions. value measurements. pricing services to another independent valuation firm on a sample basis. prices valuation methodologies used with management. The following table presents the balances of the assets and liabilities measured at fair 30, 2025 and December 31, 2024, respectively, valuation hierarchy (as described above). Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2025: Securities available-for-sale: Agency obligations $ 53,546 — 53,546 — Agency MBS 169,119 — 169,119 — State and political subdivisions 17,016 — 17,016 — Total securities available 239,681 — 239,681 — Total $ 239,681 — 239,681 — December 31, 2024: Securities available-for-sale: Agency obligations $ 52,411 — 52,411 — Agency MBS 173,676 — 173,676 — State and political subdivisions 16,925 — 16,925 — Total securities available 243,012 — 243,012 — Total $ 243,012 — 243,012 — Assets and liabilities measured at fair value on a nonrecurring Loans held for sale Loans held for sale are carried at the lower of cost or fair value. Fair values of loans quoted secondary market prices for similar loans. hierarchy. Collateral dependent loans Collateral dependent loans are measured at the fair value of the collateral securing fair value of real estate collateral is determined based on real estate appraisals which comparable properties which are then adjusted for property specific factors. various sources, including third party asset valuations and internally determined depreciation and other judgmentally determined discount factors. Collateral dependent the hierarchy due to the unobservable inputs used in determining their fair underlying financial condition. Mortgage servicing rights, net MSRs, net, included in other assets on the accompanying consolidated balance estimated fair value. MSRs, the Company engages an independent third party. present value of estimated future net servicing income using assumptions that future net servicing income, including estimates of mortgage prepayment service, escrow account earnings, contractual servicing fee income, Company will review broker surveys and other market research significant unobservable inputs include mortgage prepayment speeds weighted average discount rate. the Company’s MSRs are classified within The following table presents the balances of the assets and liabilities measured at fair June 30, 2025 and December 31, 2024, respectively, FASB ASC 820 valuation Quoted Prices in Active Markets Other Significant for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2025: Loans held for sale $ 186 — 186 — Other assets (2) 827 — — 827 Total assets at fair value $ 1,013 — 186 827 December 31, 2024: Loans, net (1) $ 503 — — 503 Other assets (2) 892 — — 892 Total assets at fair value $ 1,395 — — 1,395 (1) Loans considered collateral dependent under ASC 326. (2) Represents MSRs, net, carried at lower of cost or estimated Quantitative Disclosures for Level 3 Fair Value At June 30, 2025 and December 31, 2024, the Company had no Level 3 For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2025 unobservable inputs used in the fair value measurements and the range presented below. Range of Weighted Carrying Significant Unobservable Average (Dollars in thousands) Amount Valuation Technique Unobservable Input Inputs of Input June 30, 2025: Mortgage servicing rights, net $ 827 Discounted cash flow Prepayment speed or CPR 6.4 - 10.7 % 6.7 % Discount rate 10.0 - 12.0 10.0 December 31, 2024: Collateral dependent loans $ 503 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 892 Discounted cash flow Prepayment speed or CPR 6.7 - 11.2 7.3 Discount rate 10.0 - 12.0 10.0 Fair Value ASC 825, Financial Instruments , requires disclosure of fair value information about financial instruments, recognized on the face of the balance sheet, where it is practicable to estimation of the fair value of the Company’s not available, fair values are based on estimates using discounted cash flow significantly affected by the assumptions used, including following fair value estimates cannot be substantiated by comparison to representative of the liquidation value of the Company’s value of financial instruments held by the Company. instruments from its disclosure requirements. The following methods and assumptions were used by the Company in estimating Loans, net Fair values for loans were calculated using discounted cash flows. The discount loans would be made for the same remaining maturities. Expected cash flows, adjusted for estimated prepayments. Loans held for sale Fair values of loans held for sale are determined using quoted secondary Time Deposits Fair values for time deposits were estimated using discounted cash offered for deposits with similar remaining maturities. The carrying value, related estimated fair value, instruments at June 30, 2025 and December 31, 2024 are presented below. which the carrying amount approximates fair value. included cash and cash equivalents. noninterest-bearing demand deposits, interest-bearing demand deposits, and carrying value in these financial liabilities due to these products having liabilities for which fair value approximates carrying value included overnight and securities sold under agreements to repurchase. The following table summarizes our fair value estimates: Fair Value Hierarchy Carrying Estimated Level 1 Level 2 Level 3 (Dollars in thousands) amount fair value inputs inputs Inputs June 30, 2025: Financial Assets: Loans, net (1) $ 555,749 $ 535,700 — — $ 535,700 Loans held for sale 186 190 — 190 — Financial Liabilities: Time Deposits $ 181,718 $ 180,389 — 180,389 $ — December 31, 2024: Financial Assets: Loans, net (1) $ 557,146 $ 532,344 — — $ 532,344 Financial Liabilities: Time Deposits $ 191,247 $ 190,636 — 190,636 $ — (1) Represents loans, net of allowance for credit losses. |