Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements [Abstract]

Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

March 31, 2024	Level I		Level II			Level III		Total
Fair value measurements on a recurring basis:
Assets
Equity securities	$	1,658	$	-		$	-	$	1,658
Available for sale securities:
U.S. Agency securities		-		57,401			-		57,401
U.S. Treasury securities		134,113		-			-		134,113
Obligations of state and political subdivisions		-		99,367			-		99,367
Corporate obligations		-		12,303			-		12,303
Mortgage-backed securities in government sponsored entities		-		101,681			-		101,681
Loans held for sale		-		8,346			-		8,346
Other Assets
Derivative instruments		-		14,291			566		14,857
Liabilities
Derivative instruments		-		(8,698	)		-		(8,698	)

December 31, 2023	Level I		Level II			Level III		Total
Fair value measurements on a recurring basis:
Assets:
Equity securities	$	1,938	$	-		$	-	$	1,938
Available for sale securities:
U.S. Agency securities		-		60,771			-		60,771
U.S. Treasuries securities		143,288		-			-		143,288
Obligations of state and political subdivisions		-		101,787			-		101,787
Corporate obligations		-		12,403			-		12,403
Mortgage-backed securities in government sponsored entities		-		99,352			-		99,352
Other Assets
Derivative instruments		-		13,363			324		13,687
Liabilities
Derivative instruments		-		(7,922	)		-		(7,922	)

Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables represent the change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2024 (in thousands):

	IRLC- Asset
Balance: December 31, 2023	$	324
Total unrealized losses:
Included in other comprehensive loss		-
Total losses included in earnings and held at reporting date		242
Purchases, sales and settlements		-
Transfers in and/or out of Level 3		-
Ending Balance: March 31, 2024	$	566
Change in unrealized gains for the period included in earnings for assets held as of March 31, 2024	$	242

Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 are included in the table below (in thousands):

March 31, 2024	Level I		Level II		Level III		Total
Collateral-dependent loans	$	-	$	-	$	1,668	$	1,668
December 31, 2023	Level I		Level II		Level III		Total
Collateral-dependent loans	$	-	$	-	$	3,885	$	3,885
Other real estate owned		-		-		97		97

Significant Unobservable Inputs Used in Fair Value Measurement Process

Significant unobservable inputs for assets measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023 (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2024	Fair Value		Valuation Technique	Significant Unobservable Input	Range			Weighted Average
Measured at Fair Value on a Recurring Basis:
Net derivative asset and liability:
IRLC	$	566	Discounted cash flows	Pull-through rates		73.72%-95.00	%		86.20	%
December 31, 2023
Measured at Fair Value on a Recurring Basis:
Net derivative asset and liability:
IRLC	$	324	Discounted cash flows	Pull-through rates		63.63%-94.24	%		85.43	%

The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level III techniques (dollars in thousands).

Quantitative Information about Level III Fair Value Measurements
March 31, 2024	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Collateral-dependent loans	$	1,668	Appraised Collateral Values	Discount for time since appraisal		0-100	%		44.28	%
				Selling costs		8%-10	%		8.67	%
				Holding period	0 - 12 months			8.95 months

December 31, 2023	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Collateral-dependent loans		3,885	Appraised Collateral Values	Discount for time since appraisal		0-100	%		29.32	%
				Selling costs		8%-12	%		10.20	%
				Holding period	3 - 12 months			6.65 months
Other real estate owned		97	Appraised Collateral Values	Discount for time since appraisal		32	%		32.00	%

Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands):

March 31, 2024	Carrying Amount		Fair Value		Level I		Level II		Level III
Financial assets:
Interest bearing time deposits with other banks	$	3,820	$	3,820	$	-	$	-	$	3,820
Net loans		2,218,061		2,122,243		-		-		2,122,243
Financial liabilities:
Deposits		2,302,881		2,295,953		1,850,572		-		445,381
Borrowed funds		283,565		273,780		-		-		273,780
December 31, 2023	Carrying Amount		Fair Value		Level I		Level II		Level III
Financial assets:
Interest bearing time deposits with other banks	$	4,070	$	4,070	$	-	$	-	$	4,070
Net loans		2,227,683		2,126,237		-		-		2,126,237
Financial liabilities:
Deposits		2,321,481		2,315,374		1,902,007		-		413,367
Borrowed funds		322,036		313,217		-		-		313,217