v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

Using

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets for
Identical Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

March 31, 2026

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of U.S. government corporations and agencies

 

$

7,204

 

 

$

—

 

 

$

7,204

 

 

$

—

 

U.S. Treasury securities

 

 

9,872

 

 

 

—

 

 

 

9,872

 

 

 

—

 

Mortgage-backed securities

 

 

72,256

 

 

 

—

 

 

 

72,256

 

 

 

—

 

Collateralized mortgage obligations

 

 

22,069

 

 

 

 

 

 

22,069

 

 

 

 

Subordinated debt

 

 

3,969

 

 

 

—

 

 

 

3,469

 

 

 

500

 

Derivative:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps on loans

 

 

807

 

 

 

—

 

 

 

807

 

 

 

—

 

Total assets at fair value

 

$

116,177

 

 

$

—

 

 

$

115,677

 

 

$

500

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps on loans

 

$

807

 

 

$

—

 

 

$

807

 

 

$

—

 

Fair value swap

 

 

26

 

 

 

—

 

 

 

26

 

 

 

—

 

Total liabilities at fair value

 

$

833

 

 

$

—

 

 

$

833

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

Using

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets for
Identical Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

December 31, 2025

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of U.S. government corporations and agencies

 

$

7,444

 

 

$

—

 

 

$

7,444

 

 

$

—

 

U.S. treasury notes

 

 

10,001

 

 

 

—

 

 

 

10,001

 

 

 

—

 

Mortgage-backed securities

 

 

75,129

 

 

 

—

 

 

 

75,129

 

 

 

—

 

Collateralized mortgage obligations

 

 

22,495

 

 

 

—

 

 

 

22,495

 

 

 

—

 

Subordinated debt

 

 

4,474

 

 

 

—

 

 

 

3,974

 

 

 

500

 

Derivative:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps on loans

 

 

1,030

 

 

 

—

 

 

 

1,030

 

 

 

—

 

Total assets at fair value

 

$

120,573

 

 

$

—

 

 

$

120,073

 

 

$

500

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps on loans

 

$

1,030

 

 

$

—

 

 

$

1,030

 

 

$

—

 

Fair value swap

 

 

75

 

 

 

—

 

 

 

75

 

 

 

—

 

Total liabilities at fair value

 

$

1,105

 

 

$

—

 

 

$

1,105

 

 

$

—

 
Schedule of all assets measured at fair value on a recurring basis classified as Level 3

The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis classified as Level 3 for the periods indicated. Level 3 securities consist of one corporate subordinated debt security for which no pricing information was available and therefore priced at book value.

 

 

 

Level 3 Recurring Fair Value Measurements As Of and For The

 

 

Three Months Ended March 31,

 

 

2026

 

2025

 

 

(in thousands)

 

Beginning balance

$

500

 

$

—

 

Purchases

 

—

 

 

—

 

Sales

 

—

 

 

—

 

Issuances

 

—

 

 

—

 

Settlements

 

—

 

 

—

 

Total Gains (Losses) included in Net Income

 

—

 

 

—

 

Total Gains (Losses) included in OCI

 

—

 

 

—

 

Transfer into Level 3

 

—

 

 

—

 

Transfer out of Level 3

 

—

 

 

—

 

Total assets at fair value

$

500

 

$

—

 
Quantitative Information About Level 3 Fair Value Measurements For Certain Financial Assets

The following table displays quantitative information about Level 3 Fair Value Measurements for certain financial and nonfinancial assets measured at fair value on a nonrecurring basis for March 31, 2026 and December 31, 2025.

 

 

 

Quantitative information about Level 3 Fair Value Measurements

 

 

March 31, 2026

 

 

Valuation Technique(s)

 

Unobservable Input

 

Range

 

Weighted Average (1)

Assets:

 

 

 

 

 

 

 

 

Collateral dependent individually evaluated loans

 

Discounted value

 

Selling cost and appraisal discount

 

6% - 39%

 

23 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quantitative information about Level 3 Fair Value Measurements

 

 

December 31, 2025

 

 

Valuation Technique(s)

 

Unobservable Input

 

Range

 

Weighted Average (1)

Assets:

 

 

 

 

 

 

 

 

Collateral dependent individually evaluated loans

 

Discounted value

 

Selling cost and appraisal discount

 

6% - 40%

 

9 %

Repossessed assets

 

Discounted appraised value

 

Selling cost

 

10 %

 

10 %

(1) Weighted based on the relative fair value of the specific items measured at fair value.
Financial And Nonfinancial Assets Measured At Fair Value On A Nonrecurring Basis

The following table summarizes the Company's financial and nonfinancial assets that were measured at fair value on a nonrecurring basis at March 31, 2026 and December 31, 2025.

 

 

 

 

 

 

Carrying value at

 

 

 

 

 

 

March 31, 2026

 

 

 

Balance as of

 

 

Identical
Assets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

March 31, 2026

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent individually evaluated loans

 

$

4,268

 

 

$

—

 

 

$

—

 

 

$

4,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value at

 

 

 

 

 

 

December 31, 2025

 

 

 

Balance as of

 

 

Quoted Prices
in Active
Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

 

December 31, 2025

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent individually evaluated loans

 

$

2,256

 

 

$

—

 

 

$

—

 

 

$

2,256

 

Nonfinancial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Repossessed assets

 

 

135

 

 

 

—

 

 

 

—

 

 

 

135

 

 
Company's Financial Instruments

The carrying value and fair value of the Company’s financial instruments at March 31, 2026 and December 31, 2025 were as follows:

 

 

 

Fair Value Measurements at

 

 

 

March 31, 2026

 

 

 

Using

 

 

 

Carrying
Value
as of

 

 

Quoted Prices
in Active
Markets for
Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

Fair Value
as of

 

 

 

March 31, 2026

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

March 31, 2026

 

 

 

(in thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

189,767

 

 

$

189,767

 

 

$

—

 

 

$

—

 

 

$

189,767

 

Securities

 

 

115,370

 

 

 

—

 

 

 

114,870

 

 

 

500

 

 

 

115,370

 

Restricted investments

 

 

1,875

 

 

 

—

 

 

 

1,875

 

 

 

—

 

 

 

1,875

 

Loans held for sale

 

 

5,214

 

 

 

 

 

 

5,214

 

 

 

—

 

 

 

5,214

 

Loans, net

 

 

1,441,533

 

 

 

—

 

 

 

—

 

 

 

1,380,699

 

 

 

1,380,699

 

Bank owned life insurance

 

 

32,004

 

 

 

—

 

 

 

32,004

 

 

 

—

 

 

 

32,004

 

Accrued interest receivable

 

 

4,936

 

 

 

—

 

 

 

4,936

 

 

 

—

 

 

 

4,936

 

Derivative assets

 

 

807

 

 

 

—

 

 

 

807

 

 

 

—

 

 

 

807

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,598,219

 

 

$

—

 

 

$

1,598,773

 

 

$

—

 

 

$

1,598,773

 

Subordinated debt, net of unamortized issuance costs

 

 

29,596

 

 

 

—

 

 

 

27,122

 

 

 

—

 

 

 

27,122

 

Accrued interest payable

 

 

797

 

 

 

—

 

 

 

797

 

 

 

—

 

 

 

797

 

Derivative liabilities

 

 

833

 

 

 

—

 

 

 

833

 

 

 

—

 

 

 

833

 

 

 

 

 

Fair Value Measurements at

 

 

 

December 31, 2025

 

 

 

Using

 

 

 

Carrying Value
as of

 

 

Quoted Prices
in Active
Markets for
Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

 

Fair Value
as of

 

 

 

December 31, 2025

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

December 31, 2025

 

 

 

(in thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

217,194

 

 

$

217,194

 

 

$

—

 

 

$

—

 

 

$

217,194

 

Securities

 

 

119,543

 

 

 

—

 

 

 

119,043

 

 

 

500

 

 

 

119,543

 

Restricted Investments

 

 

3,786

 

 

 

—

 

 

 

3,786

 

 

 

—

 

 

 

3,786

 

Loans held for sale

 

 

4,786

 

 

 

—

 

 

 

4,786

 

 

 

—

 

 

 

4,786

 

Loans, net

 

 

1,457,757

 

 

 

—

 

 

 

—

 

 

 

1,390,948

 

 

 

1,390,948

 

Bank owned life insurance

 

 

31,720

 

 

 

—

 

 

 

31,720

 

 

 

—

 

 

 

31,720

 

Accrued interest receivable

 

 

5,287

 

 

 

—

 

 

 

5,287

 

 

 

—

 

 

 

5,287

 

Derivative assets

 

 

1,030

 

 

 

—

 

 

 

1,030

 

 

 

—

 

 

 

1,030

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,607,360

 

 

$

—

 

 

$

1,607,995

 

 

$

—

 

 

$

1,607,995

 

Federal Home Loan Bank advances, long-term

 

 

40,000

 

 

 

—

 

 

 

40,080

 

 

 

—

 

 

 

40,080

 

Subordinated debt, net of unamortized issuance costs

 

 

29,579

 

 

 

—

 

 

 

27,106

 

 

 

—

 

 

 

27,106

 

Accrued interest payable

 

 

1,339

 

 

 

—

 

 

 

1,339

 

 

 

—

 

 

 

1,339

 

Derivative liabilities

 

 

1,105

 

 

 

—

 

 

 

1,105

 

 

 

—

 

 

 

1,105