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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Instruments

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis


					Fair Value Measurements at
					December 31, 2024 Using
					(in thousands)
		Assets & Liabilities Measured at			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
Description		12/31/24			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	6,115					$	6,115
Residential mortgage-backed agencies		$	20,196					$	20,196
Commercial mortgage-backed agencies		$	28,634					$	28,634
Collateralized mortgage obligations		$	17,726					$	17,726
Obligations of states and political subdivisions		$	6,209					$	6,209
Corporate bonds		$	896					$	896
Collateralized debt obligations		$	14,718								$	14,718
Financial derivative		$	455					$	455
Non-recurring:
Individually evaluated loans		$	647								$	647
Equity investments		$	3,928								$	3,928
Other real estate owned		$	2,698								$	2,698

					Fair Value Measurements at
					December 31, 2023 Using
					(in thousands)
		Assets & Liabilities Measured at			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
Description		12/31/23			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. treasuries		$	6,034					$	6,034
U.S. government agencies		$	20,563					$	20,563
Residential mortgage-backed agencies		$	28,417					$	28,417
Commercial mortgage-backed agencies		$	16,356					$	16,356
Collateralized mortgage obligations		$	10,312					$	10,312
Obligations of states and political subdivisions		$	778					$	778
Collateralized debt obligations		$	14,709								$	14,709
Financial derivative		$	756					$	756
Non-recurring:
Equity investment		$	3,087								$	3,087
Other real estate owned		$	4,443								$	4,443

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques



(in thousands)		Fair Value at December 31, 2024			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO		$	14,718		Discounted Cash Flow		Discount Rate		Range of low to mid 300 and low 500
Non-recurring:
Individually Evaluated Loans		$	647		Market Comparable Properties		Marketability Discount		N/A
Equity Investments		$	3,928		Market Method		Revenue Multiples		2.8x
Other Real Estate Owned		$	2,698		Market Comparable Properties		Marketability Discount		5.0% to 15.0% (weighted avg 5.9%)



(in thousands)		Fair Value at December 31, 2023			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO		$	14,709		Discounted Cash Flow		Discount Rate		Range of low to mid 300 and low to high 400
Non-recurring:
Equity Investment		$	3,087		Market Method		Revenue Multiples		2.8x
Other Real Estate Owned		$	4,443		Market Comparable Properties		Marketability Discount		5.0% to 15.0% (weighted avg 5.9%)

(1)	Range would include discounts taken since appraisal and estimated values.

Reconciliation of Fair Valued Assets Measured on a Recurring Basis

The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured using Level 3 significant unobservable inputs for the years ended December 31, 2024 and 2023:


			Fair Value Measurement Using Unobservable Inputs (Level 3)
(in thousands)			Investment Securities Available for Sale
Beginning balance January 1, 2024		$	14,709
Total gains realized/unrealized:
Included in other comprehensive income			9
Ending balance December 31, 2024		$	14,718

			Fair Value Measurement Using Unobservable Inputs (Level 3)
(in thousands)			Investment Securities Available for Sale
Beginning balance January 1, 2023		$	15,871
Total losses realized/unrealized:
Included in other comprehensive income			(1,162)
Ending balance December 31, 2023		$	14,709

Fair Value by Balance Sheet Grouping



		December 31, 2024						Fair Value Measurements
		Carrying			Fair			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	77,020		$	77,020		$	77,020
Interest bearing deposits in banks			1,307			1,307			1,307
Investment securities - AFS			94,494			94,494					$	79,776		$	14,718
Investment securities - HTM			175,497			144,760						142,954			1,806
Restricted bank stock			5,768			N/A
Loans, net			1,462,181			1,421,600									1,421,600
Financial derivative			455			455						455
Accrued interest receivable			7,473			7,473						827			6,646
Financial Liabilities:
Deposits – non-maturity			1,431,662			1,431,662						1,431,662
Deposits – time deposits			143,167			141,698						141,698
Short-term borrowed funds			65,409			65,409						65,409
Long-term borrowed funds			120,929			119,586						119,586
Accrued interest payable			489			489						489



		December 31, 2023						Fair Value Measurements
		Carrying			Fair			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	48,343		$	48,343		$	48,343
Interest bearing deposits in banks			1,410			1,410			1,410
Investment securities - AFS			97,169			97,169					$	82,460		$	14,709
Investment securities - HTM			214,297			184,415						182,510			1,905
Restricted bank stock			5,250			N/A
Loans, net			1,388,847			1,319,456									1,319,456
Financial derivative			756			756						756
Accrued interest receivable			7,487			7,487						828			6,659
Financial Liabilities:
Deposits – non-maturity			1,355,444			1,355,444						1,355,444
Deposits – time deposits			195,533			193,337						193,337
Short-term borrowed funds			45,418			45,418						45,418
Long-term borrowed funds			110,929			110,809						110,809
Accrued interest payable			612			612						612

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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