FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Assets Measured at Fair Value on a Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2024 or 2023.


	Level 1		Level 2		Level 3		Total Fair Value Measurements
December 31, 2024
Financial Assets
Investment securities:
U.S. Treasury securities	$	18,063	$	—	$	—	$	18,063
U.S. government agencies	—		3,053		—		3,053

States and political subdivisions	—		193,756		6,272		200,028
GSE residential MBSs	—		151,548		—		151,548
GSE commercial MBSs	—		8,792		—		8,792
GSE residential CMOs	—		324,692		—		324,692
Non-agency CMOs	—		22,636		10,648		33,284



Asset-backed	—		88,103		—		88,103
Corporate bonds	—		1,954		—		1,954
Other	194		—		—		194
Loans held for sale	—		6,614		—		6,614
Derivatives	—		13,431		20		13,451


Totals	$	18,257	$	814,579	$	16,940	$	849,776
Financial Liabilities
Derivatives	$	—	$	12,575	$	—	$	12,575


December 31, 2023
Financial Assets
Investment securities:
U.S. Treasury securities	$	17,840	$	—	$	—	$	17,840
U.S. government agencies	—		4,151		—		4,151

States and political subdivisions	—		197,060		6,062		203,122
GSE residential MBSs	—		57,632		—		57,632
GSE commercial mortgage-backed securities	—		4,743		—		4,743
GSE residential CMOs	—		73,102		—		73,102
Non-agency CMOs	—		22,878		21,791		44,669



Asset-backed	—		108,134		—		108,134

Other	126		—		—		126
Loans held for sale	—		5,816		—		5,816
Derivatives	—		11,328		55		11,383


Totals	$	17,966	$	484,844	$	27,908	$	530,718
Financial Liabilities
Derivatives	$	—	$	13,464	$	—	$	13,464

Level 3 Fair Value, Assets Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the years ended December 31, 2024 or 2023:


Investment securities:
	2024		2023
Balance, beginning of year	$	27,853	$	27,193


Unrealized gains included in OCI	79		358
Purchases	—		871
Net discount accretion	82		62
Principal payments and other	(987)		(631)

Calls	(10,107)		—


Balance, end of year	$	16,920	$	27,853

There were no transfers into or out of Level 3 at December 31, 2024 and 2023.


Interest rate lock commitments on residential mortgages:
	2024		2023
Balance, beginning of year	$	55	$	35
Total (losses) gains included in earnings	(35)		20


Balance, end of year	$	20	$	55

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis at December 31, 2024 and 2023:


	Level 1		Level 2		Level 3		Total Fair Value Measurements
December 31, 2024
Individually evaluated loans
Commercial real estate:
Owner-occupied	$	—	$	—	$	997	$	997


Non-owner occupied residential	—		—		43		43
Acquisition and development:

Commercial and land development	—		—		932		932

Commercial and industrial	—		—		3,995		3,995
Residential mortgage:
First lien	—		—		213		213
Home equity - term	—		—		44		44
Home equity - lines of credit	—		—		25		25
Installment and other loans	—		—		3		3
Total individually evaluated loans	$	—	$	—	$	6,252	$	6,252








December 31, 2023
Individually evaluated loans
Commercial real estate:
Owner-occupied	$	—	$	—	$	75	$	75







Commercial and industrial	—		—		164		164
Residential mortgage:
First lien	—		—		219		219

Home equity - lines of credit	—		—		56		56

Total individually evaluated loans	$	—	$	—	$	514	$	514

Schedule of Additional Qualitative Information

The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

Fair Value

Estimate

Valuation Techniques

Unobservable Input

Range

December 31, 2024

Individually evaluated loans

6,252

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 84% discount

- Management adjustments for liquidation expenses

5.81% - 16.07% discount

December 31, 2023

Individually evaluated loans

514

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 70% discount

- Management adjustments for liquidation expenses

3.3% - 12.3% discount

Schedule of Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities at December 31, 2024, and 2023:


	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2024
Financial Assets
Cash and due from banks	$	51,026	$	51,026	$	51,026	$	—	$	—
Interest-bearing deposits with banks	197,848		197,848		197,848		—		—

Restricted investments in bank stock	20,232		n/a		n/a		n/a		n/a
Investment securities	829,711		829,711		18,257		794,534		16,920
Loans held for sale	6,614		6,614		—		6,614		—
Loans, net of allowance for credit losses	3,882,525		3,783,097		—		—		3,783,097

Derivatives	13,451		13,451		—		13,431		20
Accrued interest receivable	21,058		21,058		—		5,361		15,697

Financial Liabilities
Deposits	4,623,096		4,621,081		—		4,621,081		—

Securities sold under agreements to repurchase and federal funds purchased	25,863		25,863		—		25,863		—
FHLB advances and other borrowings	115,364		114,851		—		114,851		—
Subordinated notes and trust preferred debt	68,680		67,597		—		67,597		—

Derivatives	12,575		12,575		—		12,575		—
Accrued interest payable	2,924		2,924		—		2,924		—
Off-balance sheet instruments	—		—		—		—		—
December 31, 2023
Financial Assets
Cash and due from banks	$	32,586	$	32,586	$	32,586	$	—	$	—
Interest-bearing deposits with banks	32,575		32,575		32,575		—		—

Restricted investments in bank stock	11,992		n/a		n/a		n/a		n/a
Investment securities	513,519		513,519		17,966		467,700		27,853
Loans held for sale	5,816		5,816		—		5,816		—
Loans, net of allowance for credit losses	2,269,611		2,159,745		—		—		2,159,745

Derivatives	11,383		11,383		—		11,328		55
Accrued interest receivable	13,630		13,630		—		4,987		8,643

Financial Liabilities
Deposits	2,558,814		2,555,904		—		2,555,904		—

Securities sold under agreements to repurchase and federal funds purchased	9,785		9,785		—		9,785		—
FHLB advances and other borrowings	137,500		137,500		—		137,500		—
Subordinated notes	32,093		29,887		—		29,887		—

Derivatives	13,464		13,464		—		13,464		—
Accrued interest payable	2,560		2,560		—		2,560		—
Off-balance sheet instruments	—		—		—		—		—

- Definition

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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