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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2024
Fair Value Measurements [Abstract] |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
September 30, 2024 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Fair value measurements on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 1,730 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,730 |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  |  | - |  |  |  | 55,614 |  |  |  | - |  |  |  | 55,614 |
U.S. Treasury securities |  |  | 123,304 |  |  |  | - |  |  |  | - |  |  |  | 123,304 |
Obligations of state and political subdivisions |  |  | - |  |  |  | 97,442 |  |  |  | - |  |  |  | 97,442 |
Corporate obligations |  |  | - |  |  |  | 12,641 |  |  |  | - |  |  |  | 12,641 |
Mortgage-backed securities in government sponsored entities |  |  | - |  |  |  | 130,189 |  |  |  | - |  |  |  | 130,189 |
Loans held for sale |  |  | - |  |  |  | 13,520 |  |  |  | - |  |  |  | 13,520 |
Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | 8,591 |  |  |  | 402 |  |  |  | 8,993 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | (4,763 | ) |  |  | - |  |  |  | (4,763 | )
December 31, 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 |
Loans held for sale |  |  | - |  |  |  | 9,379 |  |  |  | - |  |  |  | 9,379 |
Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | 13,363 |  |  |  | 324 |  |  |  | 13,687 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  |  | - |  |  |  | (7,922 | ) |  |  | - |  |  |  | (7,922 | )
Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables represent the change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and for the three and nine months ended September 30, 2023 (in thousands):
|  | IRLC- Asset |
Balance: December 31, 2023 |  | $ | 324 |
Total unrealized losses: |  |  |  |
Included in other comprehensive loss |  |  | - |
Total losses included in earnings and held at reporting date |  |  | 78 |
Transfers in and/or out of Level 3 |  |  | - |
Ending Balance: September 30, 2024 |  | $ | 402 |
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of September 30, 2024 |  | $ | 78 |
Beginning Balance: June 30, 2024 |  | $ | 494 |
Total unrealized losses: |  |  |  |
Included in other comprehensive loss |  |  | - |
Total losses included in earnings and held at reporting date |  |  | (92 | )
Transfers in and/or out of Level 3 |  |  | - |
Ending Balance: September 30, 2024 |  | $ | 402 |
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of September 30, 2024 |  | $ | (92 | )
|  | IRLC- Asset |
Balance: June 30, 2023 |  | $ | 529 |
Total unrealized losses: |  |  |  |
Included in other comprehensive loss |  |  | - |
Total losses included in earnings and held at reporting date |  |  | (92 | )
Purchases, sales and settlements |  |  | - |
Transfers in and/or out of Level 3 |  |  | - |
Ending Balance: September 30, 2023 |  | $ | 437 |
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of September 30, 2023 |  | $ | (92 | )
Beginning Balance: June 16, 2023 |  | $ | 657 |
Total unrealized losses: |  |  |  |
Included in other comprehensive loss |  |  | - |
Total losses included in earnings and held at reporting date |  |  | (220 | )
Purchases, sales and settlements |  |  | - |
Transfers in and/or out of Level 3 |  |  | - |
Ending Balance: September 30, 2023 |  | $ | 437 |
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of September 30, 2023 |  | $ | (220 | )
Assets Measured at Fair Value on Non-recurring Basis | Assets measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023 are included in the table below (in thousands):
September 30, 2024 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Collateral-dependent loans |  | $ | - |  |  | $ | - |  |  | $ | 2,825 |  |  | $ | 2,825 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 2,486 |  |  |  | 2,486 |
December 31, 2023 |  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Collateral-dependent loans |  | $ | - |  |  | $ | - |  |  | $ | 3,885 |  |  | $ | 3,885 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 97 |  |  |  | 97 |
Significant Unobservable Inputs Used in Fair Value Measurement Process | Significant unobservable inputs for assets measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023 (dollars in thousands):
|  | Quantitative Information about Level 3 Fair Value Measurements |
September 30, 2024 |  | Fair Value |  | Valuation Technique | Significant Unobservable Input |  | Range |  |  | Weighted Average |
Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |  |  |  |  |
Net derivative asset and liability: |  |  |  |  |  |  |  |  |  |  |
IRLC |  | $ | 402 |  | Discounted cash flows | Pull-through rates |  |  | 73.50%-95.88 | % |  |  | 88.11 | %
|  | Quantitative Information about Level 3 Fair Value Measurements |
December 31, 2023 |  | Fair Value |  | Valuation Technique | Significant Unobservable Input |  | Range |  |  | Weighted Average |
Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net derivative asset and liability: |  |  |  |  |  |  |  |  |  |  |  |  |  |
IRLC |  | $ | 324 |  | Discounted cash flows | Pull-through 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).
Quantitative Information about Level III Fair Value Measurements |
September 30, 2024 |  | Fair Value |  | Valuation Technique(s) |  | Unobservable input |  | Range |  |  | Weighted average |
Collateral-dependent loans |  | $ | 2,825 |  | Appraised Collateral Values |  | Discount for time since appraisal |  |  | 0-100 | % |  |  | 36.46 | %
|  |  |  |  |  |  | Selling costs |  |  | 4%-10 | % |  |  | 7.31 | %
|  |  |  |  |  |  | Holding period |  | 0 - 12 months |  |  | 5.88 months |
Other real estate owned |  |  | 2,486 |  | Appraised Collateral Values |  | Discount for time since appraisal |  |  | 20-31.8 | % |  |  | 31.51 | %
December 31, 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 | %
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):
September 30, 2024 |  | Carrying Amount |  |  | Fair Value |  |  | Level I |  |  | Level II |  |  | Level III |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing time deposits with other banks |  | $ | 3,820 |  |  | $ | 3,820 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,820 |
Net loans |  |  | 2,309,307 |  |  |  | 2,240,903 |  |  |  | - |  |  |  | - |  |  |  | 2,240,903 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 2,450,149 |  |  |  | 2,448,108 |  |  |  | 1,863,812 |  |  |  | - |  |  |  | 584,296 |
Borrowed funds |  |  | 231,732 |  |  |  | 221,607 |  |  |  | - |  |  |  | - |  |  |  | 221,607 |
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 |
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 |

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- 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://www.xbrl.org/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -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 + Details
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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- 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/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -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 + Details
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