XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.26.1

Note 3 - Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2025
Notes to Financial Statements |
Fair Value Disclosures [Text Block] |
3. | FAIR VALUE MEASUREMENTS
The Company measures fair value under the fair value hierarchy described below. Level 1: Quoted prices for identical instruments traded in active exchange markets. Level 2: Quoted prices (unadjusted) for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3: Model based techniques that use one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management's judgment and estimation which may be significant. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls, has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments, at December 31, 2025 are as follows (in dollars):
|  |  |  |  |  | Fair Value Measurements at December 31, 2025 Using: |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total Fair |
|  | Carrying Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net |  |  | 1,495,834,000 |  |  |  | - |  |  |  | - |  |  |  | 1,494,830,000 |  |  |  | 1,494,830,000 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  |  | 210,729,000 |  |  |  | - |  |  |  | 209,147,000 |  |  |  | - |  |  |  | 209,147,000 |
Repurchase agreements |  |  | 97,855,000 |  |  |  | - |  |  |  | 97,855,000 |  |  |  | - |  |  |  | 97,855,000 |
Borrowings |  |  | 21,013,000 |  |  |  | - |  |  |  | 20,599,000 |  |  |  | - |  |  |  | 20,599,000 |
The carrying amounts and estimated fair values of financial instruments, at December 31, 2024 are as follows (in dollars):
|  |  |  |  |  | Fair Value Measurements at December 31, 2024 Using: |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total Fair |
|  | Carrying Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net |  |  | 1,005,375,000 |  |  |  | - |  |  |  | - |  |  |  | 981,114,000 |  |  |  | 981,114,000 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  |  | 94,189,000 |  |  |  | - |  |  |  | 94,161,000 |  |  |  | - |  |  |  | 94,161,000 |
Repurchase agreements |  |  | 22,073,000 |  |  |  | - |  |  |  | 22,073,000 |  |  |  | - |  |  |  | 22,073,000 |
Borrowings |  |  | 15,000,000 |  |  |  | - |  |  |  | 13,967,000 |  |  |  | - |  |  |  | 13,967,000 |
The methods and assumptions used to estimate the fair value of each class of financial instruments not measured at fair value are as follows: Loans - Loans are generally valued by discounting expected cash flows using market inputs with adjustments based on cohort level assumptions for certain loan types as well as internally developed estimates at a business segment level. Due to the significance of the unobservable market inputs and assumptions, as well as the absence of a liquid secondary market for most loans, these loans are classified as Level 3. Nonaccrual loans are written down and reported at their estimated recovery value which approximates their fair value and classified as Level 3. Time deposits - The fair value of time deposits was estimated based on a discounted cash flow technique using Level 2 inputs appropriate to the contractual maturity. Repurchase agreements - The fair value of the repurchase agreement is based on Level 2 inputs. The primary inputs used in the valuation include the market interest rate and the credit quality of the underlying securities. Borrowings - The cash flows were calculated using the contractual features of the borrowing and then discounted using observable market rates using Level 2 inputs appropriate to the contractual maturity. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. Those estimates that are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision are included in Level 3. Changes in assumptions could significantly affect the fair values presented. These estimates do not reflect any premium or discount that could result from offering the Company's entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Assets and liabilities measured at fair value on a recurring basis at December 31, 2025 are summarized below:
|  |  |  |  |  | Fair Value Measurements at |
|  |  |  |  |  | December 31, 2025 Using |
|  |  |  |  |  | Quoted |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Prices in |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Active |  |  | Significant |  |  |  |  |
|  |  |  |  |  | Markets for |  |  | Other |  |  | Significant |
|  |  |  |  |  | Identical |  |  | Observable |  |  | Unobservable |
|  | Total Fair |  |  | Assets |  |  | Inputs |  |  | Inputs |
|  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential |  | $ | 253,165,000 |  |  | $ | - |  |  | $ | 253,165,000 |  |  | $ | - |
U.S. Government agencies collateralized by mortgage obligations-commercial |  |  | 134,764,000 |  |  |  | - |  |  |  | 134,764,000 |  |  |  | - |
Obligations of states and political subdivisions |  |  | 88,666,000 |  |  |  | - |  |  |  | 88,666,000 |  |  |  | - |
|  | $ | 476,595,000 |  |  | $ | - |  |  | $ | 476,595,000 |  |  | $ | - |
Assets and liabilities measured at fair value on a recurring basis at December 31, 2024 are summarized below:
|  |  |  |  |  | Fair Value Measurements at |
|  |  |  |  |  | December 31, 2024 Using |
|  |  |  |  |  | Quoted |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Prices in |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Active |  |  | Significant |  |  |  |  |
|  |  |  |  |  | Markets for |  |  | Other |  |  | Significant |
|  |  |  |  |  | Identical |  |  | Observable |  |  | Unobservable |
|  | Total Fair |  |  | Assets |  |  | Inputs |  |  | Inputs |
|  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential |  | $ | 228,391,000 |  |  | $ | - |  |  | $ | 228,391,000 |  |  | $ | - |
U.S. Government agencies collateralized by mortgage obligations-commercial |  |  | 121,870,000 |  |  |  | - |  |  |  | 121,870,000 |  |  |  | - |
Obligations of states and political subdivisions |  |  | 87,474,000 |  |  |  | - |  |  |  | 87,474,000 |  |  |  | - |
|  | $ | 437,735,000 |  |  | $ | - |  |  | $ | 437,735,000 |  |  | $ | - |
The fair value of securities available-for-sale equals quoted market price, if available. If quoted market prices are not available, fair value is determined using quoted market prices for similar securities or matrix pricing. There were no changes in the valuation techniques used during 2025 or 2024. Transfers between hierarchy measurement levels are recognized by the Company as of the beginning of the reporting period. Changes in fair market value are recorded in other comprehensive income (loss). Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2025, are summarized below:
|  |  |  |  |  | Fair Value Measurements at December 31, 2025 Using: |
|  |  |  |  |  | Quoted |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Prices in |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Active |  |  | Significant |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Markets for |  |  | Other |  |  | Significant |  |  |  |  |
|  |  |  |  |  | Identical |  |  | Observable |  |  | Unobservable |  |  |  |  |
|  | Total |  |  | Assets |  |  | Inputs |  |  | Inputs |  |  | Total |
|  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Losses |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collateral-dependent loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 84 |  |  | $ | - |  |  | $ | - |  |  | $ | 84 |  |  | $ | 39 |
Agricultural |  |  | 1,904 |  |  |  | - |  |  |  | - |  |  |  | 1,904 |  |  |  | 1,448 |
Total |  | $ | 1,988 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,988 |  |  | $ | 1,487 |
Other Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RE – Residential |  | $ | 91 |  |  | $ | - |  |  | $ | - |  |  | $ | 91 |  |  | $ | - |
Equity lines of credit |  |  | 135 |  |  |  |  |  |  |  |  |  |  |  | 135 |  |  | $ | - |
Total |  | $ | 226 |  |  | $ | - |  |  | $ | - |  |  | $ | 226 |  |  | $ | - |
Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2024, are summarized below:
|  |  |  |  |  | Fair Value Measurements at December 31, 2024 Using: |
|  |  |  |  |  | Quoted |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Prices in |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Active |  |  | Significant |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Markets for |  |  | Other |  |  | Significant |  |  |  |  |
|  |  |  |  |  | Identical |  |  | Observable |  |  | Unobservable |  |  |  |  |
|  | Total |  |  | Assets |  |  | Inputs |  |  | Inputs |  |  | Total |
|  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Losses |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collateral-dependent loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 24 |  |  | $ | - |  |  | $ | - |  |  | $ | 24 |  |  | $ | 1 |
Other Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RE – Residential |  | $ | 91 |  |  | $ | - |  |  | $ | - |  |  | $ | 91 |  |  | $ | 50 |
The Company has no liabilities which are reported at fair value. The following methods were used to estimate fair value. Collateral-Dependent Loans: The Bank does not record loans at fair value on a recurring basis. However, from time to time, fair value adjustments are recorded on these loans to reflect partial write-downs, through charge-offs or specific reserve allowances, that are based on fair value estimates of the underlying collateral. The fair value estimates for collateral-dependent loans are generally based on recent real estate appraisals or broker opinions, obtained from independent third parties, which are frequently adjusted by management to reflect current conditions and estimated selling costs (Level 3). Impairment charges of $1,487,000 were recognized during the twelve months ended December 31, 2025, related to collateral dependent loans. Impairment charges of $1,000 were recognized during the twelve months ended December 31, 2024, related to collateral dependent loans. The collateral-dependent loans at December 31, 2025 and December 31, 2024 consist solely of loans which had been allocated a specific credit reserve. Other Real Estate: Nonrecurring adjustments to certain real estate properties classified as other real estate owned are measured at the lower of carrying amount or fair value, less costs to sell. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Fair values are generally based on third party appraisals of the property which are commonly adjusted by management to reflect current conditions and selling costs (Level 3). Appraisals for both collateral-dependent loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Loan Administration Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On a quarterly basis, the Company compares the actual selling price of similar collateral that has been liquidated to the most recent appraised value for unsold properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2025 and 2024 (dollars in thousands):
|  |  |  |  |  |  |  |  |  |  |  | Range |  |  | Range |
|  | Fair Value |  |  | Fair Value |  | Valuation |  |  | (Weighted Average) |  |  | (Weighted Average) |
Description |  | 12/31/2025 |  |  | 12/31/2024 |  | Technique | Significant Unobservable Input |  | 12/31/2025 |  |  | 12/31/2024 |
Collateral-dependent loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 84 |  |  | $ | 24 |  | Third Party appraisals | Management Adjustments to Reflect Current Conditions and Selling Costs |  |  | 14% - 100% (45%) |  |  |  | 45 | %
Agricultural |  |  | 1,904 |  |  |  | - |  | Third Party appraisals | Management Adjustments to Reflect Current Conditions and Selling Costs |  |  | 2% - 100% (43%) |  |  |  |  |
Total |  | $ | 1,988 |  |  | $ | 24 |  |  |  |  |  |  |  |  |  |  |
Other Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RE – Residential |  | $ | 91 |  |  | $ | 91 |  | Third Party appraisals | Management Adjustments to Reflect Current Conditions and Selling Costs |  |  | 60 | % |  |  | 60 | %
Equity lines of credit |  |  | 135 |  |  |  | - |  | Third Party appraisals | Management Adjustments to Reflect Current Conditions and Selling Costs |  |  | 10 | % |  |  |  |
Total |  | $ | 226 |  |  | $ | 91 |  |  |  |  |  |  |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration