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Junior Subordinated Debt/Trust Preferred Securities
 12 Months Ended
Dec. 31, 2024
Junior Subordinated Debt/Trust Preferred Securities [Abstract]  
Junior Subordinated Debt/Trust Preferred Securities Junior Subordinated Debt/Trust Preferred Securities
The contractual principal balance of the Company’s debentures relating to its trust preferred securities is $12.0 million as of December 31, 2024 and 2023. The Company may redeem the junior subordinated debentures (TRUPs) at any time at par.

The Company accounts for its TRUPs issued under USB Capital Trust II at fair value. The Company believes the election of fair value accounting for the TRUPs better reflects the true economic value of the debt instrument on the consolidated balance sheet. As of December 31, 2024, the rate paid on TRUPS issued under USB Capital Trust II is 3-month SOFR plus 129 basis points, and is adjusted quarterly.

At December 31, 2024, the Company performed a fair value measurement analysis on TRUPS using a cash flow model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month SOFR curve to estimate future quarterly interest payments due over remaining life of the debt instrument. These cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with TRUPs. The 6.40% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At December 31, 2024, and December 31, 2023, the total cumulative gain recorded on the debt was $1.1 million and $1.5 million, respectively.
(In thousands)December 31, 2024December 31, 2023
Net fair value calculation loss$(368)$(270)
Other comprehensive income gain (loss) 245 (544)
Recognized (loss) gain on fair value(614)274 
Cumulative gain recorded1,093 1,461 
Discount rate6.40 %6.14 %

The net fair value calculation performed as of December 31, 2024 resulted in a pretax loss adjustment of $368,000 for the year ended December 31, 2024, compared to a pretax loss adjustment of $270,000 for the year ended December 31, 2023.

For the year ended December 31, 2024, the $368,000 fair value loss adjustment was separately presented as a $614,000 loss recognized on the consolidated statements of income, and a $245,000 gain associated with the instrument-specific credit risk recognized in other comprehensive income. For the year ended December 31, 2023, the $270,000 fair value loss adjustment was separately presented as a $274,000 gain recognized on the consolidated statements of income, and a $544,000 loss associated with the instrument-specific credit risk recognized in other comprehensive income. The Company calculated the change in the discounted cash flows based on updated market credit spreads for the periods ended.