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DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2024

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

14. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third-party valuations that use the best available data (Level 2) and an estimation methodology (Level 3), which the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturity, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements.

The estimated fair values based on US GAAP measurements and recorded carrying values at December 31, 2024 and 2023 for the remaining financial instruments not required to be reported at fair value were as follows:

DECEMBER 31, 2024

CARRYING

VALUE

FAIR VALUE

LEVEL 1

LEVEL 2

LEVEL 3

(IN THOUSANDS)

FINANCIAL ASSETS:

Investment securities – HTM

$

63,837

$

58,471

$

—

$

57,535

$

936

Loans held for sale

460

470

470

—

—

Loans, net of allowance for credit losses and unearned income

1,054,037

990,745

—

—

990,745

FINANCIAL LIABILITIES:

Deposits with stated maturities

336,312

336,167

—

—

336,167

All other borrowings ⁽¹⁾

82,784

81,476

—

—

81,476


		DECEMBER 31, 2023
		CARRYING
		VALUE				FAIR VALUE			LEVEL 1			LEVEL 2			LEVEL 3

			(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM		$	63,979		$	58,621		$	—		$	56,769		$	1,852
Loans held for sale			130			132			132			—			—
Loans, net of allowance for credit losses and unearned income			1,023,218			950,402			—			—			950,402
FINANCIAL LIABILITIES:
Deposits with stated maturities			322,477			321,660			—			—			321,660
All other borrowings ⁽¹⁾			71,247			70,061			—			—			70,061

(1)	All other borrowings include advances from Federal Home Loan Bank and subordinated debt.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.