Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Note 18 – Fair Value of Financial Instruments

The carrying values and estimated fair values of financial instruments are summarized as follows:

Fair Value Measurements at:


(Dollars in thousands)		Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)
December 31, 2023
Financial Assets:
Cash and cash equivalents		$	398,229	$	398,229	$	398,229	$	—	$	—

Securities available-for-sale		345,275		345,275		—		319,530		25,745
Equity securities		41,086		41,086		3,590		—		37,496
Loans held-for-sale		629		629		—		629		—
Loans receivable, net		2,295,470		2,230,279		—		—		2,230,279
Servicing assets	0	1,768		1,799		—		—		1,799
Interest rate swaps		6,249		6,249		—		6,249		—

Accrued interest receivable		15,267		15,267		—		2,836		12,431
FHLB Stock		2,094		2,094		—		2,094		—
Bank-owned life insurance		44,287		44,287		—		44,287		—
Embedded derivative		648		648		—		—		648

Financial Liabilities:
Deposits		$	2,901,476	$	2,587,246	$	—	$	2,587,246	$	—
Repurchase Agreements		4,821		4,821		—		4,821		—
Interest rate swaps		6,249		6,249		—		6,249		—
Fair value hedge		6,111		6,111		—		6,111		—
Accrued interest payable		2,385		2,385		—		2,385		—

Senior term loan		6,786		6,786		—		6,786		—
Subordinated debt		73,540		57,234		—		57,234		—

December 31, 2022
Financial assets:
Cash and cash equivalents		$	40,280	$	40,280	$	40,280	$	—	$	—
Securities available-for-sale		379,814		379,814		—		344,471		35,343
Equity securities		38,744		38,744		5,382		—		33,362
Loans held-for-sale		23,126		24,898		—		24,898		—
Loans receivable, net		2,348,808		2,285,427		—		—		2,285,427
Servicing rights		1,616		1,634		—		—		1,634
Interest rate swaps		8,427		8,427		—		8,427		—
Accrued interest receivable		12,617		12,617		—		2,778		9,839
Bank-owned life insurance		43,239		43,239		—		43,239		—
Embedded derivative		787		787		—		—		787

Financial liabilities:
Deposits		$	2,570,482	$	2,226,037	$	—	$	2,226,037	$	—
Repurchase agreements		10,037		10,037		—		10,037		—
FHLB and other borrowings		102,333		102,006		—		102,006		—
Fair value hedges		572		572		—		572
Interest rate swaps		8,427		8,427		—		8,427		—
Accrued interest payable		2,558		2,558		—		2,558		—
Senior term loan		9,765		9,765		—		9,765		—
Subordinated debt		73,286		64,330		—		64,330		—