Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value of Financial Instruments

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

			Fair Value Measurements at March 31, 2025 Using
			Quoted
			Prices in		Significant
	Assets		Active Markets		Other		Significant
	Measured at		for Identical		Observable		Unobservable
	Fair Value		Assets		Inputs		Inputs
(in thousands)	03/31/25		(Level 1)		(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. treasuries	$	4,013			$	4,013
U.S. government agencies	$	6,219			$	6,219
Residential mortgage-backed agencies	$	20,217			$	20,217
Commercial mortgage-backed agencies	$	28,925			$	28,925
Collateralized mortgage obligations	$	17,763			$	17,763
Obligations of states and political subdivisions	$	7,258			$	7,258
Corporate bonds	$	906			$	906
Collateralized debt obligations	$	14,697					$	14,697
Equity investments not held for trading with readily determinable fair values	$	1,001	$	1,001
Financial derivatives	$	347			$	347
Non-recurring:
Equity investment	$	4,034					$	4,034

			Fair Value Measurements at December 31, 2024 Using
			Quoted
			Prices in	Significant
	Assets/(liabilities)		Active Markets	Other		Significant
	Measured at		for Identical	Observable		Unobservable
	Fair Value		Assets	Inputs		Inputs
(in thousands)	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 derivatives	$	455		$	455
Non-recurring:
Individually evaluated loans, net	$	647				$	647
Equity investment	$	3,928				$	3,928
Other real estate owned	$	2,698				$	2,698

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

(in thousands)	Fair Value at March 31, 2025		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment securities – available for sale -CDO	$	14,697	Discounted Cash Flow	Discount Margin	Range of low 300 to high 400
Non-recurring:
Equity investment	$	4,034	Market Method	Revenue Multiples	2.8x

(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 Margin	Range of low to mid 300 and low 500
Non-recurring:
Individually Evaluated Loans	$	647	Market Comparable Properties	Marketability Discount	N/A
Equity investment	$	3,928	Market Method	Revenue Multiples	2.8x
Other real estate owned (1)	$	2,698	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

	Fair Value Measurements
	Using Significant Unobservable Inputs
	(Level 3)
	Investment Securities
(in thousands)	Available for Sale
Beginning balance January 1, 2025	$	14,718
Total losses realized/unrealized:
Included in other comprehensive income		(21)
Ending balance March 31, 2025	$	14,697

	Fair Value Measurements
	Using Significant Unobservable Inputs
	(Level 3)
	Investment Securities
(in thousands)	Available for Sale
Beginning balance January 1, 2024	$	14,709
Total gains realized/unrealized:
Included in other comprehensive loss		177
Ending balance March 31, 2024	$	14,886

Fair Value by Balance Sheet Grouping

	March 31, 2025				Fair Value Measurements
					Quoted
					Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
(in thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	82,813	$	82,813	$	82,813
Interest bearing deposits in banks		1,618		1,618		1,618
Investment securities - AFS		99,998		99,998			$	85,301	$	14,697
Investment securities - HTM		174,144		146,771				144,924		1,847
Equity securities not held for trading with readily determinable fair values		1,001		1,001		1,001
Restricted bank stock		5,815		N/A
Loans, net		1,460,945		1,408,335						1,408,335
Financial derivatives		347		347				347
Accrued interest receivable		6,975		6,975				796		6,179
Financial Liabilities:
Deposits - non-maturity		1,428,220		1,428,220				1,428,220
Deposits - time deposits		195,354		193,981				193,981
Short-term borrowed funds		20,342		20,342				20,342
Long-term borrowed funds		120,929		119,442				119,442
Accrued interest payable		693		693				693

	December 31, 2024				Fair Value Measurements
					Quoted
					Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		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