XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.25.2

Fair Value Disclosure | 6 Months Ended
--- | ---
Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Disclosure | Fair Value Disclosure ASC Topic 820 “Fair Value Measurement” defines fair value and provides the framework for measuring fair value and required disclosures about fair value measurements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the transaction date. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in valuation methods to determine fair value. The three levels of fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available. Level 2 – Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs. Level 3 – Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows, and other similar techniques. This hierarchy requires the use of observable market data when available. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The majority of the Company’s securities are included in Level 2 of the fair value hierarchy. Fair values for Level 2 securities were primarily determined by a third-party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The Company uses derivative instruments, including interest rate swaps and risk participation agreements, and the fair value of such instruments are calculated using accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative, considering the contractual terms of each derivative, and uses observable market-based inputs, such as interest rate curves and implied volatilities. Credit valuation adjustments are incorporated to appropriately reflect nonperformance risk and the respective counterparties' nonperformance risk in calculating fair value measurements. These instruments are classified as Level 2. There were no transfers into or out of Level 3 during the six months ended June 30, 2025 or year ended December 31, 2024. The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statements of Financial Condition as of the dates indicated, by level within the fair value hierarchy:
| Fair Value Hierarchy | June 30, 2025 | December 31, 2024
(Dollars in thousands) |  |  |
ASSETS |  |  |
Available-for-Sale Debt Securities |  |  |
U.S. Government Agencies | Level 2 | $ | 4,177 |  | $ | 3,945 |
Obligations of States and Political Subdivisions | Level 2 | 3,452 |  | 3,347 |
Mortgage-Backed Securities - Government-Sponsored Enterprises | Level 2 | 49,691 |  | 50,363 |
Collateralized Mortgage Obligations - Government Sponsored Enterprises | Level 2 | 102,540 |  | 94,957 |
Collateralized Loan Obligations | Level 2 | 96,001 |  | 98,779 |
Corporate Debt | Level 2 | 10,420 |  | 8,123 |
Total Available-for-Sale Debt Securities |  | 266,281 |  | 259,514 |
Equity Securities |  |  |
Mutual Funds | Level 1 | 890 |  | 879 |
Other | Level 1 | — |  | 1,760 |
Total Equity Securities |  | 890 |  | 2,639 |
Total Securities |  | $ | 267,171 |  | $ | 262,153 |
Total Assets |  | $ | 267,171 |  | $ | 262,153 |
LIABILITIES |  |  |
Derivative Financial Liabilities |  |  |
Interest Rate Swaps | Level 2 | $ | 944 |  | $ | 801 |
Risk Participation Agreements | Level 2 | 89 |  | 66 |
Total Liabilities |  | $ | 1,033 |  | $ | 867 |
The following table presents the financial assets on the Consolidated Statements of Financial Condition measured at fair value on a nonrecurring basis as of the dates indicated by level within the fair value hierarchy for only those nonrecurring assets that had a fair value below the carrying amount. The table also presents the significant unobservable inputs used in the fair value measurements.
Financial Asset | Fair Value Hierarchy | June 30, 2025 | Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average
(Dollars in thousands) |  |  |  |  |  |
Individually Evaluated Loans | Level 3 | $ | 5,555 |  | Appraisal of Collateral (1) | Appraisal Adjustments (2) | 25 | % | to | 28 | % | 25.5%
Financial Asset | Fair Value Hierarchy | December 31, 2024 | Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average
(Dollars in thousands) |  |  |  |  |  |
Individually Evaluated Loans | Level 3 | $ | 5,244 |  | Appraisal of Collateral (1) | Appraisal Adjustments (2) | 25 | % | to | 52 | % | 26.2%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include various Level 3 inputs, which are not identifiable. (2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal. Individually evaluated loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing the loans and is classified as Level 3 in the fair value hierarchy. At June 30, 2025, the fair value of these loans consisted of loan balances of $5.6 million less specific valuation allowances of $70,000. At December 31, 2024, the fair value of these loans consisted of loan balances of $5.6 million less specific valuation allowances of $398,000. The fair value of mortgage servicing rights ("MSRs") is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. MSRs are considered impaired if the carrying value exceeds fair value. Since the valuation model includes significant unobservable inputs as listed above, MSRs are classified as Level 3. At June 30, 2025 and December 31, 2024, the Company did not have any MSRs that would be required to be remeasured. Other real estate owned ("OREO") properties are evaluated at the time of acquisition and recorded at fair value, less estimated selling costs. After acquisition, OREO is recorded at the lower of cost or fair value, less estimated selling costs. The fair value of an OREO property is determined from a qualified independent appraisal and is classified as Level 3 in the fair value hierarchy. As of June 30, 2025 and December 31, 2024, the Company did not have any OREO that would be required to be remeasured. Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have significant impact on the resulting estimated fair values. As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company. The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.
|  |  | June 30, 2025 | December 31, 2024
| Fair Value Hierarchy |  | Carrying Value | Fair Value | Carrying Value | Fair Value
(Dollars in thousands) |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |
Cash and Due From Banks: |  |  |  |  |  |
Interest-Earning | Level 1 |  | $ | 50,487 |  | $ | 50,487 |  | $ | 39,332 |  | $ | 39,332 |
Noninterest-Earning | Level 1 |  | 14,019 |  | 14,019 |  | 10,240 |  | 10,240 |
Securities | See Above |  | 267,171 |  | 267,171 |  | 262,153 |  | 262,153 |
Loans Held for Sale | Level 2 |  | 512 |  | 512 |  | 900 |  | 900 |
Loans, Net | Level 3 |  | 1,101,102 |  | 1,077,932 |  | 1,082,821 |  | 1,045,104 |
Restricted Stock | Level 2 |  | 3,007 |  | 3,007 |  | 3,055 |  | 3,055 |
Mortgage Servicing Rights | Level 3 |  | 435 |  | 759 |  | 466 |  | 849 |
Accrued Interest Receivable | Level 2 |  | 5,819 |  | 5,819 |  | 5,586 |  | 5,586 |
Financial Liabilities: |  |  |  |  |  |
Deposits | Level 2 |  | 1,309,432 |  | 1,309,037 |  | 1,283,517 |  | 1,284,494 |
Other Borrowed Funds |  |  |  |  |  |
FHLB Borrowings | Level 2 |  | 20,000 |  | 19,951 |  | 20,000 |  | 20,004 |
Subordinated Debt | Level 2 |  | 14,738 |  | 14,092 |  | 14,718 |  | 14,206 |
Derivative Liabilities | Level 2 |  | 1,033 |  | 1,033 |  | 867 |  | 867 |
Accrued Interest Payable | Level 2 |  | 1,717 |  | 1,717 |  | 2,496 |  | 2,496 |

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 The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration