v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 5 – FAIR VALUE MEASUREMENTS

The Company provides disclosures about assets and liabilities carried at fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. The three broad levels of the fair value hierarchy are described below:

 

Level I:

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level II:

Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by corroborated or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III:

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

NOTE 5 – FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets reported on the Consolidated Balance Sheets at their fair value on a recurring basis as of March 31, 2026 and December 31, 2025 by level within the fair value hierarchy. No liabilities are carried at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities with readily determinable values and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities or identical securities are traded. Obligations of U.S. government agencies, mortgage-backed securities, asset-backed securities, obligations of states and political subdivisions and corporate bonds are valued at observable market data for similar assets. Equity securities without readily determinable values are carried at amortized cost adjusted for impairment and observable price changes and are not included in the table below.

 

(Dollars in thousands)

 

Level I

 

 

Level II

 

 

Level III

 

 

Total

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

2,005

 

 

$

4,005

 

 

$

—

 

 

$

6,010

 

U.S. Government agencies

 

 

—

 

 

 

2,924

 

 

 

—

 

 

 

2,924

 

Mortgage-backed securities of government agencies

 

 

1,937

 

 

 

92,645

 

 

 

—

 

 

 

94,582

 

Asset-backed securities of government agencies

 

 

—

 

 

 

334

 

 

 

—

 

 

 

334

 

State and political subdivisions

 

 

—

 

 

 

11,161

 

 

 

—

 

 

 

11,161

 

Corporate bonds

 

 

—

 

 

 

13,820

 

 

 

—

 

 

 

13,820

 

Total available-for-sale securities

 

$

3,942

 

 

$

124,889

 

 

$

—

 

 

$

128,831

 

Equity securities

 

$

256

 

 

$

—

 

 

$

—

 

 

$

256

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

—

 

 

$

5,020

 

 

$

—

 

 

$

5,020

 

U.S. Government agencies

 

 

—

 

 

 

2,908

 

 

 

—

 

 

 

2,908

 

Mortgage-backed securities of government agencies

 

 

14,940

 

 

 

83,969

 

 

 

—

 

 

 

98,909

 

Asset-backed securities of government agencies

 

 

—

 

 

 

347

 

 

 

—

 

 

 

347

 

State and political subdivisions

 

 

—

 

 

 

11,227

 

 

 

—

 

 

 

11,227

 

Corporate bonds

 

 

—

 

 

 

13,806

 

 

 

—

 

 

 

13,806

 

Total available-for-sale securities

 

$

14,940

 

 

$

117,277

 

 

$

—

 

 

$

132,217

 

Equity securities

 

$

233

 

 

$

—

 

 

$

—

 

 

$

233

 

 

The following methods and assumptions were used by the Company in determining the fair value of assets measured at fair value on a nonrecurring basis as described below:

Individually evaluated collateral dependent loans: Loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral securing these loans include: quoted market prices for identical assets classified as Level I inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included unobservable inputs and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

NOTE 5 – FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheet at their fair value as of March 31, 2026 and December 31, 2025, by level within the fair value hierarchy.

 

(Dollars in thousands)

 

Level I

 

 

Level II

 

 

Level III

 

 

Total

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated collateral dependent loans recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

—

 

 

$

7,408

 

 

$

7,408

 

Commercial real estate

 

 

—

 

 

 

—

 

 

 

20,440

 

 

 

20,440

 

Total individually evaluated collateral dependent loans recorded at fair value:

 

$

—

 

 

$

—

 

 

$

27,848

 

 

$

27,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated collateral dependent loans recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

—

 

 

$

7,489

 

 

$

7,489

 

Commercial real estate

 

 

—

 

 

 

—

 

 

 

20,446

 

 

 

20,446

 

Total individually evaluated collateral dependent loans recorded at fair value:

 

$

—

 

 

$

—

 

 

$

27,935

 

 

$

27,935