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Fair Value of Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount, Estimated Fair Values, and Placement in Fair Value Hierarchy

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2024 and December 31, 2023 are as follows:

			Fair Value Measurements
(dollars in thousands)			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
September 30, 2024
Assets
Cash and short-term investments			$	144,853					$	144,853					$	144,853					$	—					$	—
Investment securities available-for-sale			370,008						370,008						—						360,897						9,111
Investment securities held-to-maturity			440,706						406,182						—						406,182						—
Other investments			17,712						17,712						—						17,712						—
Loans held for sale			27,760						27,760						—						27,760						—
Loans, net			1,866,374						1,737,819						—						—						1,737,819
Liabilities
Deposits			2,524,970						2,522,344						—						2,522,344						—
Federal Home Loan Bank advances			185,000						183,569						—						183,569						—
Other borrowings			63,016						51,799						—						51,799						—
Derivative instruments			1,054						1,054						—						1,054						—

			Fair Value Measurements
(dollars in thousands)			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
December 31, 2023
Assets
Cash and short-term investments			$	83,322					$	83,322					$	83,322					$	—					$	—
Investment securities available-for-sale			407,382						407,382						—						396,568						10,814
Investment securities held-to-maturity			449,031						405,576						—						405,576						—
Other investments			16,868						16,868						—						16,868						—
Loans held for sale			27,958						27,958						—						27,958						—
Loans, net			1,865,099						1,699,870						—						—						1,699,870
Liabilities
Deposits			2,544,790						2,538,477						—						2,538,477						—
Federal Home Loan Bank advances			175,000						176,022						—						176,022						—
Other borrowings			63,445						51,056						—						51,056						—
Derivative instruments			438						438						—						438						—

Schedule of Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis

The following tables present the recorded amount of the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent impaired loans and other real estate properties at September 30, 2024 and December 31, 2023. Those collateral dependent impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.

									Fair Value Measurements at Reporting Date Using
(dollars in thousands)			Total Fair Value						(Level 1)						(Level 2)						(Level 3)
September 30, 2024
Recurring
Investment securities available-for-sale
U.S. treasury securities			$	1,883					$	—					$	1,883					$	—
U.S. agency securities			3,915						—						3,915						—
Asset backed securities			19,673						—						19,673						—
State, county & municipal securities			98,646						—						98,646						—
Corporate debt securities			47,701						—						41,164						6,537
Mortgage-backed securities			198,190						—						195,616						2,574
Total investment securities available-for-sale			370,008						—						360,897						9,111
Loans held for sale			27,760						—						27,760						—
Total recurring assets			$	397,768					$	—					$	388,657					$	9,111
Derivative instruments			$	1,054					$	—					$	1,054					$	—
Total recurring liabilities			$	1,054					$	—					$	1,054					$	—
Nonrecurring
Collateral dependent loans			$	2,181					$	—					$	—					$	2,181
Other real estate owned			227						—						—						227
Total nonrecurring assets			$	2,408					$	—					$	—					$	2,408

									Fair Value Measurements at Reporting Date Using
(dollars in thousands)			Total Fair Value						(Level 1)						(Level 2)						(Level 3)
December 31, 2023
Recurring
Investment securities available-for-sale
U.S. treasury securities			$	498					$	—					$	498					$	—
U.S. agency securities			4,139						—						4,139						—
Asset backed securities			24,630						—						24,630						—
State, county & municipal securities			109,036						—						109,036						—
Corporate debt securities			47,390						—						40,465						6,925
Mortgage-backed securities			221,689						—						217,800						3,889
Total investment securities available-for-sale			407,382						—						396,568						10,814
Loans held for sale			27,958						—						27,958						—
Total recurring assets			$	435,340					$	—					$	424,526					$	10,814
Derivative instruments			$	438					$	—					$	438					$	—
Total recurring liabilities			$	438					$	—					$	438					$	—
Nonrecurring
Collateral dependent loans			$	1,410					$	—					$	—					$	1,410
Other real estate owned			448						—						—						448
Total nonrecurring assets			$	1,858					$	—					$	—					$	1,858

Schedule of Quantitative Information About Fair Value Measurements for Assets in Level 3

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at September 30, 2024 and December 31, 2023. This table is comprised of collateral dependent impaired loans and other real estate owned:

(dollars in thousands)

September 30, 2024

Valuation Techniques

Unobservable Inputs

Discount rate

Collateral dependent loans

$

2,181

Appraised Value

Discounts to reflect estimated costs to sell

10

%

Other real estate owned

227

Appraised Value/Comparable Sales

Discounts to reflect current market conditions and estimated costs to sell

10

%

(dollars in thousands)

December 31, 2023

Valuation Techniques

Unobservable Inputs

Discount rate

Collateral dependent loans

$

1,410

Appraised Value

Discounts to reflect estimated costs to sell

10

%

Other real estate owned

448

Appraised Value/Comparable Sales

Discounts to reflect current market conditions and estimated costs to sell

10

%

The following table presents quantitative information about recurring level 3 fair value measurements as of September 30, 2024 and December 31, 2023.

As of September 30, 2024

(dollars in thousands)

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Avg)

Available-for-sale securities

$

9,111

Discounted Cash Flow

Discount Rate or Yield

N/A*

As of December 31, 2023

(dollars in thousands)

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Avg)

Available-for-sale securities

$

10,814

Discounted Cash Flow

Discount Rate or Yield

N/A*

* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.

Schedule of Reconciliation and Statement of Income for Assets Measured at Fair Value on Recurring Basis

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three and nine months ended September 30, 2024.

			Three Months Ended									Nine Months Ended
			September 30, 2024									September 30, 2024
(dollars in thousands)			Available-for-sale securities												Available-for-sale securities
Balance, Beginning			$	9,373											$	10,814
Additions			—												2,588
Redemptions/Payments			(303)												(3,554)
Fair value adjustments			41												1,688
Transfers between levels			—												(2,425)
Balance, Ending			$	9,111											$	9,111

X

- Definition

Tabular disclosure of financial instrument measured at fair value on recurring or nonrecurring basis. Includes, but is not limited to, instrument classified in shareholders' equity.

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