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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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)
September 30, 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		$	87,307			$	-			$	-
U.S. Government agencies			20,292				115,591				-
Mortgage-backed securities			5,449				132,174				-
State and local governments			1,484				59,018				1,458
Total Securities Available-for-Sale		$	114,532			$	306,783			$	1,458
Interest rate swap liabilities		$	-			$	(1,725	)		$	-


		(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 and nine months ended September 30, 2025 and September 30, 2024.


		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments
		Tax-Exempt				Taxable				Total
Balance at July 1, 2025		$	184			$	1,270			$	1,454

Change in Fair Value			1				3				4

Payments, Maturities & Calls			-				-				-

Balance at September 30, 2025		$	185			$	1,273			$	1,458


		(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			2				(1	)			1

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

Balance at September 30, 2025		$	185			$	1,273			$	1,458


		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments
		Tax-Exempt				Taxable				Total
Balance at July 1, 2024		$	1,831			$	1,278			$	3,109

Change in Fair Value			-				(25	)			(25	)

Payments, Maturities & Calls			(657	)			-				(657	)

Balance at September 30, 2024		$	1,174			$	1,253			$	2,427


		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2024		$	2,071			$	1,274			$	3,345

Change in Fair Value			5				(21	)			(16	)

Payments, Maturities & Calls			(902	)			-				(902	)

Balance at September 30, 2024		$	1,174			$	1,253			$	2,427

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at September 30, 2025 and December 31, 2024:


		(In Thousands)
		Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2025
		Balance at September 30, 2025				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent loans		$	4,646			$	-			$	-			$	4,646
Loan servicing rights			1,982				-				-				1,982


		(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
		September 30, 2025				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	1,458			Discounted Cash Flow		Credit strength of underlying project or entity / discount rate		3.12-3.91% (3.81%)

Collateral dependent loans			4,646			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		20.00-20.00% (20.00%)

Loan servicing rights			1,982			Discounted Cash Flow		Constant prepayment rate and probability of default / discount rate		15.10-540.99% (18.79%)


		(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 September 30, 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)
		September 30, 2025
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	117,030			$	117,030			$	117,030			$	-			$	-
Interest-bearing time deposits			1,498				1,508				-				1,508				-
Other securities			11,509				11,509				-				-				11,509
Loans held for sale			3,003				3,003				-				-				3,003
Loans, net			2,632,668				2,606,274				-				-				2,606,274
Interest receivable			15,378				15,378				-				-				15,378

Financial Liabilities:
Noninterest-bearing deposits		$	500,742			$	500,742			$	500,742			$	-			$	-
Interest-bearing deposits			1,633,490				1,633,382				-				-				1,633,382
Time deposits			617,679				616,278				-				-				616,278
Total Deposits			2,751,911				2,750,402				500,742				-				2,249,660

Federal funds purchased and securities sold under agreement to repurchase			22,718				22,718				-				-				22,718
Federal Home Loan Bank advances			187,913				188,811				-				-				188,811
Subordinated notes, net of unamortized issuance costs			34,904				33,673				-				33,673				-
Interest payable			5,746				5,746				-				-				5,746


		(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:
Noninterest-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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