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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, segregated by level within the fair value hierarchy utilized to measure fair value:


Assets and Liabilities Measured at Fair Value on a Recurring Basis
		(In Thousands)
March 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	106,883			$	-			$	-
U.S. Government agencies			30,703				107,002				-
Mortgage-backed securities			152				130,726				-
State and local governments			-				61,642				1,460
Total Securities Available-for-Sale		$	137,738			$	299,370			$	1,460
Interest rate swap liabilities		$	-			$	(1,605	)		$	-


		(In Thousands)
December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	105,999			$	-			$	-
U.S. Government agencies			20,035				115,131				-
Mortgage-backed securities			-				120,631				-
State and local governments			-				63,133				1,627
Total Securities Available-for-Sale		$	126,034			$	298,895			$	1,627
Interest rate swaps liabilities		$	-			$	(976	)		$	-

Changes in the Level 3 Fair-Value Category of Unobservable Inputs

The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three month periods ended March 31, 2025 and March 31, 2024.


		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2025		$	353			$	1,274			$	1,627

Change in Fair Value			1				2				3

Payments, Maturities & Calls			(170	)			-				(170	)

Balance at March 31, 2025		$	184			$	1,276			$	1,460


		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2024		$	1,188			$	1,272			$	2,460

Change in Fair Value			(2	)			2				-

Payments, Maturities & Calls			(665	)			-				(665	)

Balance at March 31, 2024		$	521			$	1,274			$	1,795

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at March 31, 2025 and December 31, 2024:


		(In Thousands)
		Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2025
		Balance at March 31, 2025				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent loans		$	4,113			$	-			$	-			$	4,113
Loan servicing rights			(6	)			-				-				(6	)


		(In Thousands)
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2024
		Balance at December 31, 2024				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent loans		$	2,988			$	-			$	-			$	2,988
Loan servicing rights			(4	)			-				-				(4	)

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:


		(In Thousands)								Range
		Fair Value at								(Weighted
		March 31, 2025				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	1,460			Discounted Cash Flow		Credit strength of underlying project or entity / discount rate		3.42-4.26% (4.15%)

Collateral dependent loans			4,113			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		20.00-30.00% (26.64%)

Loan servicing rights			(6	)		Discounted Cash Flow		Constant prepayment rate and probability of default / discount rate		9.80-550.0% (114.89%)


		(In Thousands)								Range
		Fair Value at								(Weighted
		December 31, 2024				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	1,627			Discounted Cash Flow		Credit strength of underlying project or entity / discount rate		-3.61-4.52% (4.33%)

Collateral dependent loans			2,988			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		20.00-30.00% (20.78%)

Loan servicing rights			(4	)		Discounted Cash Flow		Constant prepayment rate and probability of default / discount rate		9.36-618.70% (107.90%)

Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of March 31, 2025 and December 31, 2024 are reflected below. The aggregate fair values in the table below do not represent the total fair value of the Bank’s assets and liabilities. The table excludes the following: available-for-sale securities, premises and equipment, derivatives (which are included in other assets or other liabilities), goodwill, loan servicing rights, bank owned life insurance, other assets, dividends payable, accrued expenses and other liabilities.


		(In Thousands)
		March 31, 2025
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	173,037			$	173,037			$	173,037			$	-			$	-
Interest-bearing time deposits			1,992				2,000				-				2,000				-
Other securities			14,062				14,062				-				-				14,062
Loans held for sale			2,331				2,331				-				-				2,331
Loans, net			2,555,552				2,512,106				-				-				2,512,106
Interest receivable			13,002				13,002				-				-				13,002

Financial Liabilities:
Non-interest bearing deposits		$	502,318			$	502,318			$	502,318			$	-			$	-
Interest bearing deposits			1,571,516				1,571,919				-				-				1,571,919
Time deposits			626,450				624,340				-				-				624,340
Total Deposits			2,700,284				2,698,577				502,318				-				2,196,259

Federal funds purchased and securities sold under agreement to repurchase			27,258				27,258				-				-				27,258
Federal Home Loan Bank advances			245,474				245,352				-				-				245,352
Subordinated notes, net of unamortized issuance costs			34,846				32,693				-				32,693				-
Interest payable			6,142				6,142				-				-				6,142


		(In Thousands)
		December 31, 2024
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	176,351			$	176,351			$	176,351			$	-			$	-
Interest-bearing time deposits			2,482				2,472				-				2,472				-
Other securities			14,400				14,400				-				-				14,400
Loans held for sale			2,996				2,996				-				-				2,996
Loans, net			2,536,043				2,485,297				-				-				2,485,297
Interest receivable			12,657				12,657				-				-				12,657

Financial Liabilities:
Non-interest bearing deposits		$	516,904			$	516,904			$	516,904			$	-			$	-
Interest bearing deposits			1,522,280				1,521,097				-				-				1,521,097
Time deposits			647,581				644,849				-				-				644,849
Total Deposits			2,686,765				2,682,850				516,904				-				2,165,946

Federal funds purchased and securities sold under agreement to repurchase			27,218				27,218				-				-				27,218
Federal Home Loan Bank advances			246,056				245,373				-				-				245,373
Subordinated notes, net of unamortized issuance costs			34,818				31,983				-				31,983				-
Interest payable			6,618				6,618				-				-				6,618

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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