v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Platform Operator, Crypto Asset [Line Items]  
Schedule of Balance of Financial Assets Measured at Fair Value on a Recurring Basis Segregated by Level of Valuation Inputs

The table below presents the balance of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as of the dates indicated:

 

 

 

 

 

 

Fair Value Measurements at June 30, 2026 Using:

 

 

 

 

 

 

Quoted Prices In

 

 

Significant Other

 

 

Significant

 

(Dollars in thousands)

 

Carrying
Value at

 

 

Active
Markets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

June 30, 2026

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed U.S. government agencies

 

$

110,694

 

 

$

-

 

 

$

110,694

 

 

$

-

 

Other mortgage-backed securities

 

 

4,324

 

 

 

-

 

 

 

4,324

 

 

 

 

Total

 

$

115,018

 

 

$

-

 

 

$

115,018

 

 

$

-

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

 

 

 

 

Quoted Prices In

 

 

Significant Other

 

 

Significant

 

(Dollars in thousands)

 

Carrying
Value at

 

 

Active
Markets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

December 31, 2025

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed U.S. government agencies

 

$

66,418

 

 

$

-

 

 

$

66,418

 

 

$

-

 

U.S. government agencies

 

 

4,620

 

 

 

-

 

 

 

4,620

 

 

 

-

 

Total

 

$

71,038

 

 

$

-

 

 

$

71,038

 

 

$

-

 
Schedule of Balance of Financial Assets Measured at Fair Value on Nonrecurring Basis Segregated by Level of Valuation Inputs

The table below presents the balance of financial assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of the dates indicated:

 

 

 

 

 

 

Fair Value Measurements at June 30, 2026 Using:

 

 

 

 

 

 

Quoted Prices In

 

 

Significant Other

 

 

Significant

 

(Dollars in thousands)

 

Carrying
Value at

 

 

Active
Markets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

June 30, 2026

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

$

14,521

 

 

$

-

 

 

$

-

 

 

$

14,521

 

Commercial real estate - owner occupied

 

 

6,142

 

 

 

-

 

 

 

-

 

 

 

6,142

 

Commercial and industrial

 

 

2,853

 

 

 

 

 

 

 

 

 

2,853

 

Other real estate owned:

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial real estate - non-owner occupied

 

 

1,800

 

 

 

-

 

 

 

-

 

 

 

1,800

 

Commercial real estate - owner occupied

 

 

3,323

 

 

 

-

 

 

 

-

 

 

 

2,061

 

Commercial and industrial

 

 

540

 

 

 

-

 

 

 

-

 

 

 

540

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

 

 

 

 

Quoted Prices In

 

 

Significant Other

 

 

Significant

 

(Dollars in thousands)

 

Carrying
Value at

 

 

Active
Markets

 

 

Observable
Inputs

 

 

Unobservable
Inputs

 

 

 

December 31, 2025

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

$

12,873

 

 

$

-

 

 

$

-

 

 

$

12,873

 

Commercial real estate - owner occupied

 

 

468

 

 

 

-

 

 

 

-

 

 

 

468

 

Other real estate owned:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

 

1,800

 

 

 

-

 

 

 

-

 

 

 

1,800

 

Commercial real estate - owner occupied

 

 

2,061

 

 

 

-

 

 

 

-

 

 

 

2,061

 

Commercial and industrial

 

 

540

 

 

 

-

 

 

 

-

 

 

 

540

 

 
Schedule of Fair Value Inputs, Quantitative Information

The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine the fair value as of the dates indicated.

 

(Dollars in thousands)

 

Quantitative Information About Level 3 Fair Value Measurements

 

 

Fair Value

 

 

Valuation

 

Unobservable

 

 

 

Weighted

June 30, 2026

 

Estimate

 

 

Technique

 

Input

 

Range

 

Average

Assets:

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

$

14,521

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

5%-36%

 

21%

Commercial real estate - owner occupied

 

 

6,142

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

4%-32%

 

15%

Commercial and industrial

 

 

2,853

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-45%

 

13%

Other real estate owned:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

 

1,800

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

Commercial real estate - owner occupied

 

 

3,323

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

Commercial and industrial

 

 

540

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

 

(Dollars in thousands)

 

Quantitative Information About Level 3 Fair Value Measurements

 

 

Fair Value

 

 

Valuation

 

Unobservable

 

 

 

Weighted

December 31, 2025

 

Estimate

 

 

Technique

 

Input

 

Range

 

Average

Assets:

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

$

12,873

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

15%-29%

 

24%

Commercial real estate - owner occupied

 

 

468

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

39%-39%

 

39%

Other real estate owned:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - non-owner occupied

 

 

1,800

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

Commercial real estate - owner occupied

 

 

2,061

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

Commercial and industrial

 

 

540

 

 

Appraisal (1)

 

Appraisal adjustments (2)

 

10%-10%

 

10%

 

(1)
Fair value is generally determined through independent appraisals which generally include various level 3 inputs that are not identifiable.
(2)
Appraisal amounts may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other adjustments are presented as a percent of the appraisal or financial statement book value.
Schedule of Carrying Amounts and Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments were as follows as of the dates indicated:

 

 

 

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Fair Value
Hierarchy

 

Carrying

 

 

Estimated

 

 

Carrying

 

 

Estimated

 

(Dollars in thousands)

 

Level

 

Amount

 

 

Fair Value

 

 

Amount

 

 

Fair Value

 

Financial instruments - assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

1

 

$

6,726

 

 

$

6,726

 

 

$

5,326

 

 

$

5,326

 

Interest-bearing deposits with other financial institutions

 

1

 

 

134,603

 

 

 

134,603

 

 

 

192,538

 

 

 

192,538

 

Investment securities available for sale

 

2

 

 

115,018

 

 

 

115,018

 

 

 

71,038

 

 

 

71,038

 

Loans held for sale

 

3

 

 

50,848

 

 

 

53,810

 

 

 

46,009

 

 

 

47,676

 

Loans, net

 

3

 

 

1,034,934

 

 

 

1,040,347

 

 

 

949,379

 

 

 

957,194

 

Loan servicing assets

 

3

 

 

12,270

 

 

 

22,215

 

 

 

11,140

 

 

 

20,169

 

Federal Home Loan Bank stock

 

2

 

 

5,797

 

 

 

5,797

 

 

 

5,513

 

 

 

5,513

 

Accrued interest receivable

 

2

 

 

7,606

 

 

 

7,606

 

 

 

7,840

 

 

 

7,840

 

Financial instruments - liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

2

 

 

1,205,731

 

 

 

1,172,894

 

 

 

1,142,695

 

 

 

1,122,810

 

Short-term borrowings

 

2

 

 

-

 

 

 

-

 

 

 

371

 

 

 

371

 

Subordinated debt

 

2

 

 

30,328

 

 

 

29,421

 

 

 

26,163

 

 

 

25,559

 

Accrued interest payable

 

2

 

 

2,361

 

 

 

2,361

 

 

 

3,884

 

 

 

3,884