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Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2025
Fair Value of Financial Instruments  
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

Fair Value Measurements
at September 30, 2025 Using

Quoted

Prices in

Significant

Assets

Active Markets

Other

Significant

Measured at

for Identical

Observable

Unobservable

Fair Value

Assets

Inputs

Inputs

(in thousands)

    

09/30/25

    

(Level 1)

    

(Level 2)

    

(Level 3)

Recurring:

Investment securities available-for-sale:

U.S. government agencies

$

1,376

$

1,376

Residential mortgage-backed agencies

$

20,919

$

20,919

Commercial mortgage-backed agencies

$

30,045

$

30,045

Collateralized mortgage obligations

$

28,115

$

28,115

Obligations of states and political subdivisions

$

8,471

$

8,471

Corporate bonds

$

915

$

915

Collateralized debt obligations

$

15,219

$

15,219

Equity investments not held for trading with readily determinable fair values

$

1,020

$

1,020

Financial derivatives

$

167

$

167

Non-recurring:

Individually evaluated loans, net

$

284

$

284

Equity investment

$

4,365

$

4,365

Fair Value Measurements
at December 31, 2024 Using

Quoted

Prices in

Significant

Assets/(liabilities)

Active Markets

Other

Significant

Measured at

for Identical

Observable

Unobservable

Fair Value

Assets

Inputs

Inputs

(in thousands)

    

12/31/24

    

(Level 1)

    

(Level 2)

    

(Level 3)

Recurring:

Investment securities available-for-sale:

U.S. government agencies

$

6,115

$

6,115

Residential mortgage-backed agencies

$

20,196

$

20,196

Commercial mortgage-backed agencies

$

28,634

$

28,634

Collateralized mortgage obligations

$

17,726

$

17,726

Obligations of states and political subdivisions

$

6,209

$

6,209

Corporate bonds

$

896

$

896

Collateralized debt obligations

$

14,718

$

14,718

Financial derivatives

$

455

$

455

Non-recurring:

Individually evaluated loans, net

$

647

$

647

Equity investment

$

3,928

$

3,928

Other real estate owned

$

2,698

$

2,698

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

(in thousands)

    

Fair Value at
September 30,
2025

    

Valuation
Technique

    

Significant
Unobservable
Inputs

    

Significant
Unobservable
Input Value

Recurring:

Investment securities – available for sale -CDO

$

15,219

Discounted Cash Flow

Discount Margin

Range of high 200 to high 400

Non-recurring:

Individually evaluated loans, net

$

284

Market Comparable Properties

Marketability Discount

N/A

Equity investment

$

4,365

Market Method

Revenue Multiples

2.8x

(in thousands)

    

Fair Value at
December 31,
2024

    

Valuation
Technique

    

Significant
Unobservable
Inputs

    

Significant
Unobservable
Input Value

Recurring:

Investment securities – available for sale -CDO

$

14,718

Discounted Cash Flow

Discount Margin

Range of low to mid 300 and low 500

Non-recurring:

Individually Evaluated Loans

$

647

Market Comparable Properties

Marketability Discount

N/A

Equity investment

$

3,928

Market Method

Revenue Multiples

2.8x

Other real estate owned (1)

$

2,698

Market Comparable Properties

Marketability Discount

5.0% to 15.0%
(weighted avg 5.9%)

(1)Range would include discounts taken since appraisal and estimated values
Reconciliation of Fair Valued Assets Measured on a Recurring Basis

Fair Value Measurements

Using Significant Unobservable Inputs

(Level 3)

Investment Securities

(in thousands)

    

Available for Sale

Beginning balance January 1, 2025

$

14,718

Total gains realized/unrealized:

Included in other comprehensive income

501

Ending balance September 30, 2025

$

15,219

Fair Value Measurements

Using Significant Unobservable Inputs

(Level 3)

Investment Securities

(in thousands)

    

Available for Sale

Beginning balance January 1, 2024

$

14,709

Total gains realized/unrealized:

Included in other comprehensive income

70

Ending balance September 30, 2024

$

14,779

Fair Value Measurements
Using Significant Unobservable Inputs
(Level 3)

(in thousands)

 Investment Securities
Available for Sale

Beginning balance July 1, 2025

$

15,241

Total losses realized/unrealized:

Included in other comprehensive income

(22)

Ending balance September 30, 2025

$

15,219

Fair Value Measurements
Using Significant Unobservable Inputs
(Level 3)

(in thousands)

 Investment Securities
Available for Sale

Beginning balance July 1, 2024

$

13,975

Total gains realized/unrealized:

Included in other comprehensive income

804

Ending balance September 30, 2024

$

14,779

Fair Value by Balance Sheet Grouping

September 30, 2025

Fair Value Measurements

Quoted

Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Carrying

Fair

Assets

Inputs

Inputs

(in thousands)

    

Amount

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial Assets:

Cash and due from banks

$

92,268

$

92,268

$

92,268

Interest bearing deposits in banks

2,907

2,907

2,907

Investment securities - AFS

105,060

105,060

$

89,841

$

15,219

Investment securities - HTM

172,818

149,130

147,372

1,758

Equity securities not held for trading with readily determinable fair values

1,020

1,020

1,020

Restricted bank stock

4,628

N/A

Loans, net

1,477,200

1,455,425

1,455,425

Financial derivatives

167

167

167

Accrued interest receivable

7,479

7,479

758

6,721

Financial Liabilities:

Deposits - non-maturity

1,476,074

1,476,074

1,476,074

Deposits - time deposits

202,828

201,916

201,916

Short-term borrowed funds

20,207

20,207

20,207

Long-term borrowed funds

95,929

96,086

96,086

Accrued interest payable

661

661

661

December 31, 2024

Fair Value Measurements

Quoted

Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Carrying

Fair

Assets

Inputs

Inputs

(in thousands)

    

Amount

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial Assets:

Cash and due from banks

$

77,020

$

77,020

$

77,020

Interest bearing deposits in banks

1,307

1,307

1,307

Investment securities - AFS

94,494

94,494

$

79,776

$

14,718

Investment securities - HTM

175,497

144,760

142,954

1,806

Restricted bank stock

5,768

N/A

Loans, net

1,462,181

1,421,600

1,421,600

Financial derivative

455

455

455

Accrued interest receivable

7,473

7,473

827

6,646

Financial Liabilities:

Deposits - non-maturity

1,431,662

1,431,662

1,431,662

Deposits - time deposits

143,167

141,698

141,698

Short-term borrowed funds

65,409

65,409

65,409

Long-term borrowed funds

120,929

119,586

119,586

Accrued interest payable

489

489

489