XML 37 R30.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

 

 

(In Thousands)

 

September 30, 2024

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets - (Securities Available-for-Sale)

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

105,133

 

 

$

-

 

 

$

-

 

U.S. Government agencies

 

 

20,263

 

 

 

116,097

 

 

 

-

 

Mortgage-backed securities

 

 

-

 

 

 

96,693

 

 

 

-

 

State and local governments

 

 

-

 

 

 

65,049

 

 

 

1,646

 

Total Securities Available-for-Sale

 

$

125,396

 

 

$

277,839

 

 

$

1,646

 

Interest rate swap liabilities

 

$

-

 

 

$

(2,943

)

 

$

-

 

 

 

 

(In Thousands)

 

December 31, 2023

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets - (Securities Available-for-Sale)

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

80,270

 

 

$

-

 

 

$

-

 

U.S. Government agencies

 

 

19,630

 

 

 

108,592

 

 

 

-

 

Mortgage-backed securities

 

 

-

 

 

 

82,132

 

 

 

-

 

State and local governments

 

 

-

 

 

 

65,394

 

 

 

2,460

 

Total Securities Available-for-Sale

 

$

99,900

 

 

$

256,118

 

 

$

2,460

 

Interest rate swaps liabilities

 

$

-

 

 

$

(2,679

)

 

$

-

 
Changes in the Level 3 Fair-Value Category of Unobservable Inputs

The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three and nine month periods ended September 30, 2024 and September 30, 2023.

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at July 1, 2024

 

$

520

 

 

$

1,266

 

 

$

1,786

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

4

 

 

 

26

 

 

 

30

 

 

 

 

 

 

 

 

 

 

Payments, Maturities & Calls

 

 

(170

)

 

 

-

 

 

 

(170

)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2024

 

$

354

 

 

$

1,292

 

 

$

1,646

 

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at January 1, 2024

 

$

1,188

 

 

$

1,272

 

 

$

2,460

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

1

 

 

 

20

 

 

 

21

 

 

 

 

 

 

 

 

 

 

Payments, Maturities & Calls

 

 

(835

)

 

 

-

 

 

 

(835

)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2024

 

$

354

 

 

$

1,292

 

 

$

1,646

 

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at July 1, 2023

 

$

1,831

 

 

$

1,278

 

 

$

3,109

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

-

 

 

 

(25

)

 

 

(25

)

 

 

 

 

 

 

 

 

 

Payments, Maturities & Calls

 

 

(657

)

 

 

-

 

 

 

(657

)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2023

 

$

1,174

 

 

$

1,253

 

 

$

2,427

 

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at January 1, 2023

 

$

2,071

 

 

$

1,274

 

 

$

3,345

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

5

 

 

 

(21

)

 

 

(16

)

 

 

 

 

 

 

 

 

 

Payments, Maturities & Calls

 

 

(902

)

 

 

-

 

 

 

(902

)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2023

 

$

1,174

 

 

$

1,253

 

 

$

2,427

 
Assets Measured at Fair Value on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at September 30, 2024 and December 31, 2023:

 

 

 

(In Thousands)

 

 

 

Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2024

 

 

 

Balance at
September 30, 2024

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Significant
Unobservable Inputs
(Level 3)

 

Collateral dependent
   loans

 

$

2,766

 

 

$

-

 

 

$

-

 

 

$

2,766

 

Loan servicing rights

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

 

 

(In Thousands)

 

 

 

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2023

 

 

 

Balance at
December 31, 2023

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Significant
Unobservable Inputs
(Level 3)

 

Collateral dependent
   loans

 

$

22,676

 

 

$

-

 

 

$

-

 

 

$

22,676

 

Loan servicing rights

 

 

58

 

 

 

-

 

 

 

-

 

 

 

58

 

 
Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

 

 

 

(In Thousands)

 

 

 

 

 

 

Range

 

 

Fair Value at

 

 

 

 

 

 

(Weighted

 

September 30, 2024

 

 

Valuation Technique

 

Unobservable Inputs

 

Average)

State and local government

 

$

1,646

 

 

Discounted Cash Flow

 

Credit strength of underlying project
or entity / discount rate

 

3.14-3.95%
(3.83%)

 

 

 

 

 

 

 

 

 

Collateral dependent
   loans

 

 

2,766

 

 

Collateral based
measurements

 

Discount to reflect current market
conditions and ultimate collectability

 

0.00-22.46%
(4.46%)

 

 

 

 

 

 

 

 

 

Loan servicing rights

 

 

(2

)

 

Discounted Cash Flow

 

Constant prepayment rate and
probability of default / discount rate

 

9.75-425.44%
(104.97%)

 

 

 

 

(In Thousands)

 

 

 

 

 

 

Range

 

 

Fair Value at

 

 

 

 

 

 

(Weighted

 

 

December 31, 2023

 

 

Valuation Technique

 

Unobservable Inputs

 

Average)

State and local government

 

$

2,460

 

 

Discounted Cash Flow

 

Credit strength of underlying project
or entity / discount rate

 

-0.17-4.92%
(3.49%)

 

 

 

 

 

 

 

 

 

Collateral dependent
   loans

 

 

22,676

 

 

Collateral based
measurements

 

Discount to reflect current market
conditions and ultimate collectability

 

0.00-50.00%
(0.41%)

 

 

 

 

 

 

 

 

 

Loan servicing rights

 

 

58

 

 

Discounted Cash Flow

 

Constant prepayment rate and
probability of default / discount rate

 

5.11-22.80%
(10.87%)

 
Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of September 30, 2024 and December 31, 2023 are reflected below.

 

 

 

(In Thousands)

 

 

 

September 30, 2024

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

245,504

 

 

$

245,504

 

 

$

245,504

 

 

$

-

 

 

$

-

 

Interest-bearing time deposits

 

 

2,727

 

 

 

2,742

 

 

 

-

 

 

 

2,742

 

 

 

-

 

Securities - available-for-sale

 

 

404,881

 

 

 

404,881

 

 

 

125,396

 

 

 

277,839

 

 

 

1,646

 

Other securities

 

 

15,028

 

 

 

15,028

 

 

 

-

 

 

 

-

 

 

 

15,028

 

Loans held for sale

 

 

1,706

 

 

 

1,706

 

 

 

-

 

 

 

-

 

 

 

1,706

 

Loans, net

 

 

2,512,852

 

 

 

2,454,546

 

 

 

-

 

 

 

-

 

 

 

2,454,546

 

Interest receivable

 

 

14,316

 

 

 

14,316

 

 

 

-

 

 

 

-

 

 

 

14,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,527,182

 

 

$

1,526,588

 

 

$

-

 

 

$

-

 

 

$

1,526,588

 

Non-interest bearing deposits

 

 

481,444

 

 

 

481,444

 

 

 

481,444

 

 

 

-

 

 

 

-

 

Time deposits

 

 

676,187

 

 

 

676,172

 

 

 

-

 

 

 

-

 

 

 

676,172

 

Total Deposits

 

 

2,684,813

 

 

 

2,684,204

 

 

 

481,444

 

 

 

-

 

 

 

2,202,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under
   agreement to repurchase

 

 

27,292

 

 

 

27,292

 

 

 

-

 

 

 

-

 

 

 

27,292

 

Federal Home Loan Bank advances

 

 

263,081

 

 

 

249,109

 

 

 

-

 

 

 

-

 

 

 

249,109

 

Subordinated notes, net of unamortized issuance costs

 

 

34,789

 

 

 

30,642

 

 

 

-

 

 

 

30,642

 

 

 

-

 

Interest payable

 

 

6,527

 

 

 

6,527

 

 

 

-

 

 

 

-

 

 

 

6,527

 

 

 

 

(In Thousands)

 

 

 

December 31, 2023

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

142,201

 

 

$

142,201

 

 

$

142,201

 

 

$

-

 

 

$

-

 

Interest-bearing time deposits

 

 

2,740

 

 

 

2,725

 

 

 

-

 

 

 

2,725

 

 

 

-

 

Securities - available-for-sale

 

 

358,478

 

 

 

358,478

 

 

 

99,900

 

 

 

256,118

 

 

 

2,460

 

Other securities

 

 

17,138

 

 

 

17,138

 

 

 

-

 

 

 

-

 

 

 

17,138

 

Loans held for sale

 

 

1,576

 

 

 

1,552

 

 

 

-

 

 

 

-

 

 

 

1,552

 

Loans, net

 

 

2,556,167

 

 

 

2,396,540

 

 

 

-

 

 

 

-

 

 

 

2,396,540

 

Interest receivable

 

 

11,774

 

 

 

11,774

 

 

 

-

 

 

 

-

 

 

 

11,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,415,981

 

 

$

1,416,007

 

 

$

-

 

 

$

-

 

 

$

1,416,007

 

Non-interest bearing deposits

 

 

528,465

 

 

 

528,465

 

 

 

528,465

 

 

 

-

 

 

 

-

 

Time deposits

 

 

663,017

 

 

 

656,141

 

 

 

-

 

 

 

-

 

 

 

656,141

 

Total Deposits

 

 

2,607,463

 

 

 

2,600,613

 

 

 

528,465

 

 

 

-

 

 

 

2,072,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under
   agreement to repurchase

 

 

28,218

 

 

 

28,218

 

 

 

-

 

 

 

-

 

 

 

28,218

 

Federal Home Loan Bank advances

 

 

265,750

 

 

 

260,400

 

 

 

-

 

 

 

-

 

 

 

260,400

 

Subordinated notes, net of unamortized issuance costs

 

 

34,702

 

 

 

30,676

 

 

 

-

 

 

 

30,676

 

 

 

-

 

Interest payable

 

 

5,441

 

 

 

5,441

 

 

 

-

 

 

 

-

 

 

 

5,441