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Fair Value Disclosure
 9 Months Ended
Sep. 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 nine months ended September 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
September 30, 2025December 31, 2024
(Dollars in thousands)
ASSETS
Available-for-Sale Debt Securities
U.S. Government Agencies
Level 2
$— $3,945 
Obligations of States and Political Subdivisions
Level 2
36,115 3,347 
Mortgage-Backed Securities - Government-Sponsored Enterprises
Level 2
41,723 50,363 
Collateralized Mortgage Obligations - Government Sponsored Enterprises
Level 2
55,923 94,957 
Collateralized Mortgage Obligations - Non-AgencyLevel 211,155 — 
Collateralized Loan ObligationsLevel 2107,016 98,779 
Corporate DebtLevel 219,732 8,123 
Total Available-for-Sale Debt Securities271,664 259,514 
Equity Securities
Mutual Funds
Level 1
895 879 
Other
Level 1
— 1,760 
Total Equity Securities895 2,639 
Total Securities272,559 262,153 
Derivative Financial Assets
Interest Rate Swaps - Commercial LoansLevel 2$141 $— 
Total Assets$272,700 $262,153 
LIABILITIES
Derivative Financial Liabilities
Interest Rate SwapsLevel 2$830 $801 
Interest Rate Swaps - Commercial LoansLevel 2141 — 
Risk Participation AgreementsLevel 282 66 
Total Liabilities$1,053 $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 AssetFair Value HierarchySeptember 30,
2025		Valuation
Techniques		Significant Unobservable InputsRangeWeighted Average
(Dollars in thousands)
Individually Evaluated LoansLevel 3$5,820 
Appraisal of Collateral (1)
Appraisal Adjustments (2)
25%to85%38.0%
Financial AssetFair Value HierarchyDecember 31,
2024		Valuation
Techniques		Significant Unobservable InputsRangeWeighted Average
(Dollars in thousands)
Individually Evaluated LoansLevel 3$5,244 
Appraisal of Collateral (1)
Appraisal Adjustments (2)
25%to52%
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 September 30, 2025, the fair value of these loans consisted of loan balances of $6.0 million less specific valuation allowances of $220,000. 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 September 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 September 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.
September 30, 2025December 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
$42,790 $42,790 $39,332 $39,332 
Noninterest-Earning
Level 1
13,100 13,100 10,240 10,240 
Securities
See Above
272,559 272,559 262,153 262,153 
Loans Held for SaleLevel 2107 107 900 900 
Loans, Net
Level 3
1,133,240 1,120,077 1,082,821 1,045,104 
Restricted Stock
Level 2
3,006 3,006 3,055 3,055 
Mortgage Servicing RightsLevel 3429 723 466 849 
Derivative AssetsLevel 2141 141 — — 
Accrued Interest Receivable
Level 2
6,339 6,339 5,586 5,586 
Financial Liabilities:
Deposits
Level 2
1,334,420 1,333,887 1,283,517 1,284,494 
Other Borrowed Funds
FHLB BorrowingsLevel 220,000 19,833 20,000 20,004 
Subordinated DebtLevel 214,748 14,507 14,718 14,206 
Derivative LiabilitiesLevel 21,053 1,053 867 867 
Accrued Interest Payable
Level 2
1,969 1,969 2,496 2,496