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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value of Financial Instruments [Abstract]

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



					Fair Value Measurements at September 30, 2024 Using
					Quoted
					Prices in			Significant
		Assets			Active Markets			Other			Significant
		Measured at			for Identical			Observable			Unobservable
		Fair Value			Assets			Inputs			Inputs
(in thousands)		09/30/24			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	6,239					$	6,239
Residential mortgage-backed agencies		$	19,643					$	19,643
Commercial mortgage-backed agencies		$	28,353					$	28,353
Collateralized mortgage obligations		$	15,680					$	15,680
Obligations of states and political subdivisions		$	7,726					$	7,726
Corporate bonds		$	740					$	740
Collateralized debt obligations		$	14,779								$	14,779
Financial derivatives		$	438					$	438
Non-recurring:
Individually evaluated loans, net		$	1,111								$	1,111
Equity investment		$	3,569								$	3,569
Other real estate owned		$	2,698								$	2,698



					Fair Value Measurements at December 31, 2023 Using
					Quoted
					Prices in			Significant
		Assets/(liabilities)			Active Markets			Other			Significant
		Measured at			for Identical			Observable			Unobservable
		Fair Value			Assets			Inputs			Inputs
(in thousands)		12/31/23			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	6,034					$	6,034
Residential mortgage-backed agencies		$	20,563					$	20,563
Commercial mortgage-backed agencies		$	28,417					$	28,417
Collateralized mortgage obligations		$	16,356					$	16,356
Obligations of states and political subdivisions		$	10,312					$	10,312
Corporate bonds		$	778						778
Collateralized debt obligations		$	14,709								$	14,709
Financial derivatives		$	756					$	756
Non-recurring:
Individually evaluated loans, net		$	—								$	—
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 September 30, 2024			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment securities – available for sale -CDO		$	14,779		Discounted Cash Flow		Discount Margin		Range of high 300 to low 500

Non-recurring:
Individually evaluated loans, net		$	1,111		Market Comparable Properties		Marketability Discount		N/A

Equity investment		$	3,569		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 Margin		Range of low to mid 500 and low to mid 600

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


		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 income			70
Ending balance September 30, 2024		$	14,779


		Fair Value Measurements
		Using Significant Unobservable Inputs
		(Level 3)
		Investment Securities
(in thousands)		Available for Sale
Beginning balance January 1, 2023		$	15,871
Total losses realized/unrealized:
Included in other comprehensive loss			(1,087)
Ending balance September 30, 2023		$	14,784



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance July 1, 2024		$	13,975
Total gains realized/unrealized:
Included in other comprehensive income			804
Ending balance September 30, 2024		$	14,779



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance July 1, 2023		$	14,105
Total gains realized/unrealized:
Included in other comprehensive loss			679
Ending balance September 30, 2023		$	14,784

Fair Value by Balance Sheet Grouping


		September 30, 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		$	61,140		$	61,140		$	61,140
Interest bearing deposits in banks			1,252			1,252			1,252
Investment securities - AFS			93,160			93,160					$	78,381		$	14,779
Investment securities - HTM			174,054			149,348						147,501			1,847
Restricted bank stock			5,765			N/A
Loans, net			1,429,540			1,370,031									1,370,031
Financial derivatives			438			438						438
Accrued interest receivable			7,054			7,054						710			6,344
Financial Liabilities:
Deposits - non-maturity			1,398,567			1,398,567						1,398,567
Deposits - time deposits			141,828			140,400						140,400
Short-term borrowed funds			50,206			50,206						50,206
Long-term borrowed funds			120,929			120,915						120,915
Accrued interest payable			1,854			1,854						1,854


		December 31, 2023						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		$	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			778			778						778
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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