Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value of Financial Instruments [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	Fair Value Measurements at
	September 30, 2023 Using:
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)
U.S. government sponsored enterprises	$	121,474	$	-	$	121,474	$	-
State and political subdivisions		34		-		34		-
Mortgage backed securities and collateralized mortgage obligations - residential		233,719		-		233,719		-
Corporate bonds		76,935		-		76,935		-
Small Business Administration- guaranteed participation securities		17,316		-		17,316		-
Other securities		657		-		657		-
Total securities available for sale	$	450,135	$	-	$	450,135	$	-

	Fair Value Measurements at
	December 31, 2022 Using:
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)
Securities available for sale:
U.S. government sponsored enterprises	$	118,187	$	-	$	118,187	$	-
State and political subdivisions		34		-		34		-
Mortgage backed securities and collateralized mortgage obligations - residential		260,316		-		260,316		-
Corporate bonds		81,346		-		81,346		-
Small Business Administration- guaranteed participation securities		20,977		-		20,977		-
Other securities		653		-		653		-
Total securities available for sale	$	481,513	$	-	$	481,513	$	-

Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

Fair Value Measurements at

September 30, 2023 Using:

Significant

Quoted Prices in

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

Inputs

(dollars in thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Valuation technique

Unobservable inputs

Range (Weighted Average)

Other real estate owned

$

1,185

$

-

$

-

$

1,185

Sales comparison approach

Adjustments for differences between comparable sales

0% - 77% (29

%)

Loans individually evaluated

-

-

-

-

Sales comparison

Adjustments for differences between comparable sales

N/A

Fair Value Measurements at

December 31, 2022 Using:

Significant

Quoted Prices in

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

Inputs

(dollars in thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Valuation technique

Unobservable inputs

Range (Weighted Average)

Other real estate owned

$

2,061

$

-

$

-

$

2,061

Sales comparison approach

Adjustments for differences between comparable sales

2% - 47% (18

%)

Impaired loans:

Real estate mortgage -1 to 4 family

-

-

-

-

Sales comparison

Adjustments for differences between comparable sales

N/A

Carrying Amounts and Estimated Fair Values of Financial Instruments

In accordance with FASB Topic 825, Financial Instruments (“ASC 825”), the carrying amounts and estimated fair values of financial instruments, at September 30, 2023 and December 31, 2022 are as follows:

(dollars in thousands)			Fair Value Measurements at
	Carrying		September 30, 2023 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	507,261		507,261		-		-		507,261
Securities available for sale		450,135		22		450,113		-		450,135
Held to maturity securities		6,724		-		6,444		-		6,444
Federal Home Loan Bank stock		6,203		N/A		N/A		N/A		N/A
Net loans		4,913,055		-		-		4,366,535		4,366,535
Accrued interest receivable		13,429		590		1,873		10,966		13,429
Financial liabilities:
Demand deposits		773,293		773,293		-		-		773,293
Interest bearing deposits		4,461,072		2,879,568		1,556,686		-		4,436,254
Short-term borrowings		103,110		-		103,110		-		103,110
Accrued interest payable		2,480		237		2,243		-		2,480

(dollars in thousands)			Fair Value Measurements at
	Carrying		December 31, 2022 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	650,599		650,599		-		-		650,599
Securities available for sale		481,513		-		481,513		-		481,513
Held to maturity securities		7,707		-		7,580		-		7,580
Federal Reserve Bank and Federal
Home Loan Bank stock		5,797		N/A		N/A		N/A		N/A
Net loans		4,687,169		-		-		4,328,508		4,328,508
Accrued interest receivable		11,492		189		1,866		9,437		11,492
Financial liabilities:
Demand deposits		838,147		838,147		-		-		838,147
Interest bearing deposits		4,354,663		3,325,900		1,012,528		-		4,338,428
Short-term borrowings		122,700		-		122,700		-		122,700
Accrued interest payable		602		60		542		-		602