Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025 and December 31, 2024 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, 2025	Level I		Level II			Level III		Total
Fair value measurements on a recurring basis:
Assets
Equity securities	$	1,737	$	-		$	-	$	1,737
Available for sale securities:
U.S. Agency securities		-		54,367			-		54,367
U.S. Treasury securities		112,415		-			-		112,415
Obligations of state and political subdivisions		-		94,339			-		94,339
Corporate obligations		-		10,772			-		10,772
Mortgage-backed securities in government sponsored entities		-		158,808			-		158,808
Loans held for sale		-		6,054			-		6,054
Derivative instruments – assets		-		8,648			472		9,120
Derivative instruments - liabilities		-		(5,196	)		-		(5,196	)

December 31, 2024	Level I		Level II			Level III		Total
Fair value measurements on a recurring basis:
Assets
Equity securities	$	1,747	$	-		$	-	$	1,747
Available for sale securities:
U.S. Agency securities		-		53,487			-		53,487
U.S. Treasuries securities		120,502		-			-		120,502
Obligations of state and political subdivisions		-		94,902			-		94,902
Corporate obligations		-		10,438			-		10,438
Mortgage-backed securities in government sponsored entities		-		146,583			-		146,583
Loans held for sale		-		9,607			-		9,607
Derivative instruments – assets		-		10,053			317		10,370
Derivative instruments - liabilities		-		(5,817	)		-		(5,817	)

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, 2025 and 2024 (in thousands):

	IRLC- Asset
Balance: December 31, 2024	$	317
Total unrealized losses:
Included in other comprehensive loss		-
Total gains included in earnings and held at reporting date		155
Purchases, sales and settlements		-
Transfers in and/or out of Level 3		-
Ending Balance: March 31, 2025	$	472
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of March 31, 2025		155
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2024		-

	IRLC- Asset
Balance: December 31, 2023	$	324
Total unrealized losses:
Included in other comprehensive loss		-
Total gains 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 (losses) for the period included in earnings (or changes in net assets) for assets held as of March 31, 2024		242
Change in unrealized loss for the period included other comprehensive loss for assets held as of December 31, 2023		-

Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 are included in the table below (in thousands):

March 31, 2025	Level I		Level II		Level III		Total
Collateral-dependent loans	$	-	$	-	$	2,916	$	2,916
Other real estate owned		-		-		2,544		2,544
December 31, 2024	Level I		Level II		Level III		Total
Collateral-dependent loans	$	-	$	-	$	3,579	$	3,579
Other real estate owned		-		-		2,486		2,486

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, 2025 and December 31, 2024 (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2025	Fair Value		Valuation Technique	Significant Unobservable Input	Range			Weighted Average
Measured at Fair Value on a Recurring Basis:
Net derivative asset and liability:
IRLC	$	472	Discounted cash flows	Pull-through rates		73.00%-95.02	%		85.99	%

	Quantitative Information about Level 3 Fair Value Measurements
December 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	$	317	Discounted cash flows	Pull-through rates		76.35%-100.00	%		89.65	%

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, 2025	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Collateral-dependent loans	$	2,916	Appraised Collateral Values	Discount for time since appraisal		0-100	%		41.94	%
				Selling costs		0%-10	%		6.56	%
				Holding period	0 - 12 months			8.22 months
Other real estate owned		2,544	Appraised Collateral Values	Discount for time since appraisal		20-31.8	%		31.09	%

December 31, 2024	Fair Value		Valuation Technique(s)	Unobservable input	Range			Weighted average
Collateral-dependent loans		3,579	Appraised Collateral Values	Discount for time since appraisal		0-100	%		36.67	%
				Selling costs		4%-12	%		7.05	%
				Holding period	1 - 12 months			11.04 months
Other real estate owned		2,486	Appraised Collateral Values	Discount for time since appraisal		20-32	%		31.32	%

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, 2025	Carrying Amount		Fair Value		Level I		Level II		Level III
Financial assets:
Interest bearing time deposits with other banks	$	3,820	$	3,767	$	-	$	-	$	3,767
Net loans		2,293,582		2,234,211		-		-		2,234,211
Financial liabilities:
Deposits		2,364,854		2,445,827		1,859,656		-		586,171
Borrowed funds		302,027		295,081		-		-		295,081

December 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		2,291,543		2,209,083		-		-		2,209,083
Financial liabilities:
Deposits		2,382,028		2,377,438		1,842,223		-		535,215
Borrowed funds		297,721		284,952		-		-		284,952