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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
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:
June 30, 2025
(In thousands)BasisLevel 1Level 2Level 3Total
Assets
Equity securities with readily determinable fair valuesRecurring$936 $— $— $936 
AFS Investment Securities:
U.S. Government and agencies — 140,617 — 140,617 
Collateralized mortgage obligations— 54,078 — 54,078 
Residential mortgage-backed securities— 150,571 — 150,571 
Commercial mortgage-backed securities — 80,799 — 80,799 
Corporate bonds — 29,252 — 29,252 
Total AFS Investment SecuritiesRecurring$— $455,317 $— $455,317 
Loans held for saleRecurring— 16,455 — 16,455 
Derivative assetsRecurring— 5,945 — 5,945 
Individually evaluated loansNon-recurring— — 1,731 1,731 
Foreclosed assets held for resaleNon-recurring— — 32 32 
Liabilities
Derivative liabilitiesRecurring$— $4,352 $— $4,352 
December 31, 2024
(In thousands)BasisLevel 1Level 2Level 3Total
Equity securities with readily determinable fair valuesRecurring$919 $— $— $919 
AFS Investment Securities:
U.S. Government and agencies — 143,193 — 143,193 
Collateralized mortgage obligations— 35,654 — 35,654 
Residential mortgage-backed securities— 138,540 — 138,540 
Commercial mortgage-backed securities — 60,785 — 60,785 
Corporate bonds — 15,803 — 15,803 
Total AFS Investment SecuritiesRecurring$— $393,975 $— $393,975 
Loans held for saleRecurring— 426 — 426 
Individually evaluated loansNon-recurring— — 1,690 1,690 
Foreclosed assets held for resaleNon-recurring— — 438 438 
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. They are classified as Level 1 assets.
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 are measured as the price that secondary market investors were offering for loans with similar characteristics.
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 are based on estimated selling prices less estimated selling costs for similar assets in active markets.
Derivative Financial Instruments — Derivative financial instruments include interest rate lock commitments, forward commitments and interest rate swaps. The fair value of interest rate lock commitments is derived from the value of the underlying loans, adjusted for changes in market interest rates relative to the committed rate. The fair value of forward sales commitments is based on quoted prices for mortgage-backed securities with similar characteristics. The fair value of interest rate swaps is based upon broker quotes. They are classified as Level 2 assets.
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
June 30, 2025
Individually evaluated loans$1,731 Appraisal of collateral Appraisal adjustments
16% – 100%
49%
Foreclosed assets held for resale32 Appraisal of collateralAppraisal adjustments
17%
17%
December 31, 2024
Individually evaluated loans$1,690 Appraisal of collateralAppraisal adjustments
16% – 100%
47%
Foreclosed assets held for resale438 Appraisal of collateralAppraisal adjustments
17% – 53%
50%
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1Fair 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.
2Appraisals 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:
June 30, 2025
Carrying AmountEstimated Fair Value
(In thousands)TotalLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$32,834 $32,834 $32,834 $— $— 
Interest-bearing deposits with banks70,275 70,275 70,275 — — 
Equity securities with readily determinable fair values936 936 936 — — 
Investment securities AFS455,317 455,317 — 455,317 — 
Investment securities HTM64,505 56,420 — 56,420 — 
Loans held for sale16,455 16,455 — 16,455 — 
Loans, net2,317,463 2,336,043 — — 2,336,043 
Accrued interest receivable11,177 11,177 — 11,177 — 
Restricted investment in bank stocks13,533 N/A— N/A— 
Derivative assets5,945 5,945 — 5,945 — 
Financial liabilities:
Demand deposits, savings, and money markets$2,044,072 $1,752,549 $— $1,752,549 $— 
Time deposits480,469 473,752 — 473,752 — 
Securities sold under repurchase agreements13,669 14,653 — 14,653 — 
Federal funds purchased4,372 4,479 — 4,479 — 
FHLB Advances260,000 263,112 — 263,112 — 
Trust preferred and subordinated debt20,354 18,929 — 18,929 — 
Accrued interest payable2,053 2,053 — 2,053 — 
Derivative liabilities4,352 4,352 — 4,352 — 
December 31, 2024
Carrying AmountEstimated Fair Value
(In thousands)TotalLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$16,352 $16,352 $16,352 $— $— 
Interest-bearing deposits with banks30,910 30,910 30,910 — — 
Equity securities with readily determinable fair values919 919 919 — — 
Investment securities AFS393,975 393,975 — 393,975 — 
Investment securities HTM64,578 56,924 — 56,924 — 
Loans held for sale426 426 — 426 — 
Loans, net1,665,630 1,635,351 — — 1,635,351 
Accrued interest receivable8,189 8,189 — 8,189 — 
Restricted investment in bank stocks10,853 N/A— N/A— 
Financial liabilities:
Demand deposits, savings, and money markets$1,519,473 $1,269,889 $— $1,269,889 $— 
Time deposits273,028 267,336 — 267,336 — 
Securities sold under repurchase agreements15,826 16,435 — 16,435 — 
FHLB Advances235,000 235,290 — 235,290 — 
Trust preferred and subordinated debt20,333 18,420 — 18,420 — 
Accrued interest payable1,551 1,551 — 1,551 —