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Fair Value Measurements (Tables)

9 Months Ended

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 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.

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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).

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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.

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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).

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