XML 68 R52.htm IDEA: XBRL DOCUMENT
v3.24.0.1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the assets reported on the consolidated balance sheet at their fair value on a recurring basis as of December 31, 2023 and 2022 (in thousands) by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
2023 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Fair value measurements on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 1,938 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,938 |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  |  | - |  |  |  | 60,771 |  |  |  | - |  |  |  | 60,771 |
U.S. Treasuries securities |  |  | 143,288 |  |  |  | - |  |  |  | - |  |  |  | 143,288 |
Obligations of state and political subdivisions |  |  | - |  |  |  | 101,787 |  |  |  | - |  |  |  | 101,787 |
Corporate obligations |  |  | - |  |  |  | 12,403 |  |  |  | - |  |  |  | 12,403 |
Mortgage-backed securities in government sponsored entities |  |  | - |  |  |  | 99,352 |  |  |  | - |  |  |  | 99,352 |
Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | 13,363 |  |  |  | 324 |  |  |  | 13,687 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | (7,922 | ) |  |  | - |  |  |  | (7,922 | )
2022 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Fair value measurements on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 2,208 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,208 |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  |  | - |  |  |  | 70,677 |  |  |  | - |  |  |  | 70,677 |
U.S. Treasuries securities |  |  | 148,570 |  |  |  | - |  |  |  | - |  |  |  | 148,570 |
Obligations of state and political subdivisions |  |  | - |  |  |  | 110,300 |  |  |  | - |  |  |  | 110,300 |
Corporate obligations |  |  | - |  |  |  | 9,383 |  |  |  | - |  |  |  | 9,383 |
Mortgage-backed securities in government sponsored entities |  |  | - |  |  |  | 100,576 |  |  |  | - |  |  |  | 100,576 |
Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | 16,599 |  |  |  | - |  |  |  | 16,599 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | (9,726 | ) |  |  | - |  |  |  | (9,726 | )
Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables represent assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 31, 2023:
|  | Level 3 |
|  | IRLC - Asset |  |  | IRLC - Liability |
Beginning Balance: June 16, 2023 |  | $ | 657 |  |  | $ | - |
Total gains (losses) (unrealized): |  |  |  |  |  |  |  |
Included in other comprehensive loss |  |  | - |  |  |  | - |
Total (loss) gains included in earnings and held at reporting date |  |  | (333 | ) |  |  | - |
Purchases, sales and settlements |  |  | - |  |  |  | - |
Transfers out of Level 3 |  |  | - |  |  |  | - |
Ending Balance December 31, 2023 |  | $ | 324 |  |  | $ | - |
Change in unrealized (losses) gains for the period included in earnings (or changes in net assets) for assets held as of December 31, 2023 |  | $ | (333 | ) |  |  | - |
Change in unrealized losses for the period included other comprehensive loss for assets held as of December 31, 2023 |  | $ | - |  |  |  | - |
Assets Measured at Fair Value on Non-recurring Basis | Assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 (in thousands) are included in the table below:
2023 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Collateral-dependent loans |  | $ | - |  |  | $ | - |  |  | $ | 3,885 |  |  | $ | 3,885 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 97 |  |  |  | 97 |
2022 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Impaired loans |  | $ | - |  |  | $ | - |  |  | $ | 496 |  |  | $ | 496 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 297 |  |  |  | 297 |
Significant Unobservable Inputs Used in Fair Value Measurement Process | Significant unobservable inputs for assets and liabilities measured at fair value on a recurring basis at December 31, 2023:
Quantitative Information about Level 3 Fair Value Measurements |
2023 | Fair Value |  | Valuation Technique(s) | Unobservable input | Range |  | Weighted average |
Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |  |
Net derivative asset and liability: |  |  |  |  |  |  |  |
IRLC | 324 |  | Discounted cashflows | Pull-though rates | 63.63%-94.24 | % | 85.43 | %
The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands).
2023 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average
Collateral-dependent loans | 3,885 | Appraised Collateral Values | Discount for time since appraisal | 0-100% | 29.32%
|  |  | Selling costs | 8%-12% | 10.20%
|  |  | Holding period | 3 - 12 months | 6.65 months
Other real estate owned | 97 | Appraised Collateral Values | Discount for time since appraisal | 32% | 32.00%
2022 | Fair Value | Valuation Technique(s) | Unobservable input | Range | Weighted average
Impaired loans | 496 | Appraised Collateral Values | Discount for time since appraisal | 0-100% | 25.16%
|  |  | Selling costs | 8%-10% | 8.41%
|  |  | Holding period | 6 - 12 months | 11.51 months
Other real estate owned | 297 | Appraised Collateral Values | Discount for time since appraisal | 20-84% | 39.84%
Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands):
December 31, 2023 |  | Carrying Amount |  |  | Fair Value |  |  | Level I |  |  | Level II |  |  | Level III |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing time deposits with other banks |  | $ | 4,070 |  |  | $ | 4,070 |  |  | $ | - |  |  | $ | - |  |  | $ | 4,070 |
Loans held for sale |  |  | 9,379 |  |  |  | 9,379 |  |  |  | - |  |  |  | - |  |  |  | 9,379 |
Net loans |  |  | 2,227,683 |  |  |  | 2,126,237 |  |  |  | - |  |  |  | - |  |  |  | 2,126,237 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 2,321,481 |  |  |  | 2,315,374 |  |  |  | 1,902,007 |  |  |  | - |  |  |  | 413,367 |
Borrowed funds |  |  | 322,036 |  |  |  | 313,217 |  |  |  | - |  |  |  | - |  |  |  | 313,217 |
December 31, 2022 |  | Carrying Amount |  |  | Fair Value |  |  | Level I |  |  | Level II |  |  | Level III |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing time deposits with other banks |  | $ | 6,055 |  |  | $ | 6,055 |  |  | $ | - |  |  | $ | - |  |  | $ | 6,055 |
Loans held for sale |  |  | 725 |  |  |  | 725 |  |  |  | - |  |  |  | - |  |  |  | 725 |
Net loans |  |  | 1,706,447 |  |  |  | 1,662,514 |  |  |  | - |  |  |  | - |  |  |  | 1,662,514 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 1,844,208 |  |  |  | 1,832,037 |  |  |  | 1,566,517 |  |  |  | - |  |  |  | 265,520 |
Borrowed funds |  |  | 257,278 |  |  |  | 246,288 |  |  |  | - |  |  |  | - |  |  |  | 246,288 |

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
Name: | us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration