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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is the exchange price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions.

Fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. 
Level 2 - Quoted prices for similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. 
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). 
An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The following tables present assets measured at fair value and the basis of measurement used at the periods presented:
September 30, 2024
(In thousands)BasisLevel 1Level 2Level 3Total
Equity securities with readily determinable fair valuesRecurring$947 $— $— $947 
AFS Investment Securities:
U.S. Government and agencies — 152,209 — 152,209 
Collateralized mortgage obligations— 38,067 — 38,067 
Residential mortgage-backed securities— 149,068 — 149,068 
Commercial mortgage-backed securities — 62,897 — 62,897 
Corporate bonds — 15,838 — 15,838 
Total AFS Investment SecuritiesRecurring$— $418,079 $— $418,079 
Loans held for saleRecurring— 1,080 — 1,080 
Individually evaluated loansNon-recurring— — 262 262 
Foreclosed assets held for resaleNon-recurring— — 406 406 
December 31, 2023
(In thousands)BasisLevel 1Level 2Level 3Total
Equity securities with readily determinable fair valuesRecurring$928 $— $— $928 
AFS Investment Securities:
U.S. Government and agencies — 156,795 — 156,795 
Collateralized mortgage obligations— 41,084 — 41,084 
Residential mortgage-backed securities— 158,830 — 158,830 
Commercial mortgage-backed securities — 65,290 — 65,290 
Corporate bonds — 29,694 — 29,694 
Total AFS Investment SecuritiesRecurring$— $451,693 $— $451,693 
Loans held for saleRecurring— 280 — 280
Individually evaluated loansNon-recurring— — 242 242 
Foreclosed assets held for resaleNon-recurring— — 467 467 
The valuation techniques used to measure fair value for the items in the preceding tables are as follows:
Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Statements of Condition, with realized and unrealized gains and losses reported in noninterest income on the Consolidated Statements of Income.

Available for sale investment securities – Included in this asset category are debt securities. Level 2 investment securities are valued by a third-party pricing service. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings and matrix pricing. Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used, or some of the standard market inputs may not be applicable.
•     U.S. Government and agencies – These debt securities are classified as Level 2. Fair values are determined by a third-party pricing service, as detailed above.
•     Collateralized mortgage obligations and Mortgage-backed securities – These debt securities are classified as Level 2. Fair values are determined by a third-party pricing service, as detailed above.
•     Corporate bonds – This category consists of subordinated and senior debt issued by financial institutions and are classified as Level 2 investments. The fair values for these corporate debt securities are determined by a third-party pricing service, as detailed above.
Loans held for sale – This category includes mortgage loans held for sale that are measured at fair value utilizing Level 2 measurements. Fair values as of September 30, 2024 and December 31, 2023, were measured as the price that secondary market investors were offering for loans with similar characteristics. Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income.

Individually evaluated loans – This category consists of loans that were individually evaluated for impairment and have a specific reserve. They are classified as Level 3 assets.

Foreclosed assets held for resale – This category consists of foreclosed assets that are held for resale and classified as Level 3 assets, for which the fair values were based on estimated selling prices less estimated selling costs for similar assets in active markets.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value:
(Dollars in thousands)Fair Value Estimate
Valuation Technique 1
Unobservable Input 2
RangeWeighted Average
September 30, 2024
Individually evaluated loans$262 Appraisal of collateral Appraisal adjustments
(17) – (100)%
(81)%
Foreclosed assets held for resale406 Appraisal of collateralAppraisal adjustments(53)(53)
December 31, 2023
Individually evaluated loans$242 Appraisal of collateralAppraisal adjustments
(33) – (100)%
(94)%
Foreclosed assets held for resale467 Appraisal of collateralAppraisal adjustments(56)(56)
_______________________________
1 Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable.
2 Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal.

The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these Consolidated Financial Statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. 
The following tables present the carrying amount and the estimated fair value of the Corporation’s financial instruments:
September 30, 2024
Carrying AmountEstimated Fair Value
(In thousands)TotalLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$24,636 $24,636 $24,636 $— $— 
Interest-bearing deposits with banks33,456 33,456 33,456 — — 
Equity securities with readily determinable fair values947 947 947 — — 
Investment securities AFS418,079 418,079 — 418,079 — 
Investment securities HTM64,578 59,038 — 59,038 — 
Loans held for sale1,080 1,080 — 1,080 — 
Loans, net1,659,898 1,641,479 — — 1,641,479 
Accrued interest receivable7,987 7,987 — 7,987 — 
Restricted investment in bank stocks10,853 10,853— 10,853— 
Financial liabilities:
Demand deposits, savings, and money markets$1,534,586 $1,333,125 $— $1,333,125 $— 
Time deposits256,731 250,936 — 250,936 — 
Securities sold under repurchase agreements37,769 40,649 — 40,649 — 
FHLB Advances235,000 240,277 — 240,277 — 
Trust preferred and subordinated debt20,322 18,372 — 18,372 — 
Accrued interest payable1,531 1,531 — 1,531 — 

December 31, 2023
Carrying AmountEstimated Fair Value
(In thousands)TotalLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$21,442 $21,442 $7,063 $14,379 $— 
Interest-bearing deposits with banks44,516 44,516 44,516 — — 
Equity securities with readily determinable fair values928 928 928 — — 
Investment securities AFS451,693 451,693 — 451,693 — 
Investment securities HTM64,600 59,057 — 59,057 — 
Loans held for sale280 280 — 280 — 
Loans, net1,608,019 1,562,703 — — 1,562,703 
Accrued interest receivable8,080 8,080 — 8,080 — 
Restricted investment in bank stocks9,677 9,677 — 9,677 — 
Financial liabilities:
Demand deposits, savings, and money markets$1,629,662 $1,391,709 $— $1,391,709 $— 
Time deposits232,151 221,770 — 221,770 — 
Securities sold under repurchase agreements26,882 23,666 — 23,666 — 
FHLB Advances205,000 206,950 — 206,950 — 
Trust preferred and subordinated debt20,292 16,992 — 16,992 — 
Accrued interest payable794 794 — 794 —