XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.24.3

Note 5 - Financial Instruments and Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2024
Notes to Financial Statements |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | NOTE 5 — FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair values of financial instruments — The condensed consolidated financial statements include various estimated fair value information as of September 30, 2024 and December 31, 2023. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions and which are subject to change. We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value: Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. 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. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstance that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. There were no transfers between levels during the three and nine-month periods ended September 30, 2024 and 2023. The estimated fair values of the Company’s financial instruments not measured at fair value as of September 30, 2024 were as follows:
|  |  |  |  |  |  |  |  |  | Hierarchy |
(in thousands) |  | Carrying |  |  | Fair |  |  | Valuation |
|  | Amount |  |  | Value |  |  | Level |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 213,907 |  |  | $ | 213,907 |  |  |  | 1 |
Restricted equity securities |  |  | 6,285 |  |  |  | 6,285 |  |  |  | 2 |
Loans, net |  |  | 1,062,230 |  |  |  | 989,539 |  |  |  | 3 |
Interest receivable |  |  | 8,085 |  |  |  | 8,085 |  |  |  | 2 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | (1,690,301 | ) |  |  | (1,689,844 | ) |  |  | 3 |
Interest payable |  |  | (232 | ) |  |  | (232 | ) |  |  | 2 |
Off-balance-sheet liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Commitments and standby letters of credit |  |  |  |  |  |  | (1,766 | ) |  |  | 3 |
The estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2023 were as follows:
|  |  |  |  |  |  |  |  |  | Hierarchy |
(in thousands) |  | Carrying |  |  | Fair |  |  | Valuation |
|  | Amount |  |  | Value |  |  | Level |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 216,568 |  |  | $ | 216,568 |  |  |  | 1 |
Restricted equity securities |  |  | 5,956 |  |  |  | 5,956 |  |  |  | 2 |
Loans, net |  |  | 1,004,277 |  |  |  | 917,242 |  |  |  | 3 |
Interest receivable |  |  | 8,386 |  |  |  | 8,386 |  |  |  | 2 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | (1,650,534 | ) |  |  | (1,649,808 | ) |  |  | 3 |
Interest payable |  |  | (128 | ) |  |  | (128 | ) |  |  | 2 |
Off-balance-sheet assets (liabilities): |  |  |  |  |  |  |  |  |  |  |  |
Commitments and standby letters of credit |  |  |  |  |  |  | (1,863 | ) |  |  | 3 |
The following tables present the carrying value of recurring and nonrecurring financial instruments that were measured at fair value and that were still held in the condensed consolidated balance sheets at each respective period end, by level within the fair value hierarchy as of September 30, 2024 and December 31, 2023.
|  | Fair Value Measurements as of September 30, 2024 Using |
(in thousands) |  | September 30, 2024 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Assets and liabilities measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies |  | $ | 93,982 |  |  | $ | 0 |  |  | $ | 93,982 |  |  | $ | 0 |
Collateralized mortgage obligations |  |  | 26,098 |  |  |  | 0 |  |  |  | 26,098 |  |  |  | 0 |
Municipalities |  |  | 306,212 |  |  |  | 0 |  |  |  | 306,212 |  |  |  | 0 |
SBA pools |  |  | 940 |  |  |  | 0 |  |  |  | 940 |  |  |  | 0 |
Corporate debt |  |  | 41,033 |  |  |  | 0 |  |  |  | 41,033 |  |  |  | 0 |
Asset-backed securities |  |  | 49,067 |  |  |  | 0 |  |  |  | 49,067 |  |  |  | 0 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual fund |  | $ | 3,274 |  |  | $ | 3,274 |  |  | $ | 0 |  |  | $ | 0 |
Assets and liabilities measured on a non-recurring basis: |  |  | N/A |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Fair Value Measurements at December 31, 2023 Using |
(in thousands) |  | December 31, 2023 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Assets and liabilities measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies |  | $ | 80,259 |  |  | $ | 0 |  |  | $ | 80,259 |  |  | $ | 0 |
Collateralized mortgage obligations |  |  | 8,664 |  |  |  | 0 |  |  |  | 8,664 |  |  |  | 0 |
Municipalities |  |  | 328,908 |  |  |  | 0 |  |  |  | 328,908 |  |  |  | 0 |
SBA pools |  |  | 1,395 |  |  |  | 0 |  |  |  | 1,395 |  |  |  | 0 |
Corporate debt |  |  | 43,517 |  |  |  | 0 |  |  |  | 43,517 |  |  |  | 0 |
Asset backed securities |  |  | 55,335 |  |  |  | 0 |  |  |  | 55,335 |  |  |  | 0 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual fund |  | $ | 3,132 |  |  | $ | 3,132 |  |  | $ | 0 |  |  | $ | 0 |
Assets and liabilities measured on a non-recurring basis: |  |  | N/A |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale and equity securities - Investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions, and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets where significant inputs are unobservable. Loans Evaluated Individually - The Company does not record portfolio loans at fair value on a recurring basis. However, periodically, a loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of unobservable inputs, fair values of individually evaluated collateral dependent loans have been classified as Level 3. There have been no significant changes in the valuation techniques during the three and nine-month periods ended September 30, 2024.

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 of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration