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Fair Values of Financial Instruments
 9 Months Ended
Sep. 30, 2024
Investments, All Other Investments [Abstract]  
Fair Values of Financial Instruments

Note 11 – Fair Values of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented at September 30, 2024 and December 31, 2023 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following tables reflect a comparison of carrying amounts and the estimated fair value of the financial instruments as of September 30, 2024 and December 31, 2023:

 

September 30, 2024

 

Carrying
Value

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(dollars in thousands)

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

123,898

 

 

$

123,898

 

 

$

123,898

 

 

$

—

 

 

$

—

 

Securities available for sale

 

 

332,645

 

 

 

332,645

 

 

 

30,467

 

 

 

302,178

 

 

 

—

 

Securities held to maturity

 

 

26,777

 

 

 

24,888

 

 

 

—

 

 

 

11,092

 

 

 

13,796

 

Equity securities

 

 

355

 

 

 

355

 

 

 

355

 

 

 

—

 

 

 

—

 

Loans held for investment, net

 

 

641,389

 

 

 

614,579

 

 

 

—

 

 

 

—

 

 

 

614,579

 

Loans held for sale

 

 

4,787

 

 

 

4,787

 

 

 

—

 

 

 

4,787

 

 

 

—

 

Restricted stock

 

 

1,729

 

 

 

1,729

 

 

 

1,729

 

 

 

—

 

 

 

—

 

Loan servicing assets

 

 

3,982

 

 

 

7,102

 

 

 

—

 

 

 

7,102

 

 

 

—

 

Mortgage banking derivatives

 

 

1,173

 

 

 

1,173

 

 

 

—

 

 

 

89

 

 

 

1,084

 

Accrued interest receivable

 

 

4,821

 

 

 

4,821

 

 

 

—

 

 

 

—

 

 

 

4,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,077,811

 

 

 

1,077,125

 

 

 

—

 

 

 

1,077,125

 

 

 

—

 

Short-term borrowings

 

 

1,419

 

 

 

1,419

 

 

 

—

 

 

 

1,419

 

 

 

—

 

Long-term borrowings

 

 

29,142

 

 

 

25,349

 

 

 

—

 

 

 

—

 

 

 

25,349

 

Mortgage banking derivatives

 

 

28

 

 

 

28

 

 

 

—

 

 

 

28

 

 

 

—

 

Accrued interest payable

 

 

472

 

 

 

472

 

 

 

—

 

 

 

—

 

 

 

472

 

 

December 31, 2023

 

Carrying
Value

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(dollars in thousands)

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

63,434

 

 

$

63,434

 

 

$

63,434

 

 

$

—

 

 

$

—

 

Securities available for sale

 

 

336,714

 

 

 

336,714

 

 

 

51,505

 

 

 

285,209

 

 

 

—

 

Securities held to maturity

 

 

28,544

 

 

 

25,736

 

 

 

—

 

 

 

12,614

 

 

 

13,122

 

Equity securities

 

 

302

 

 

 

302

 

 

 

302

 

 

 

—

 

 

 

—

 

Loans held for investment, net

 

 

586,510

 

 

 

544,985

 

 

 

—

 

 

 

—

 

 

 

544,985

 

Loans held for sale

 

 

4,695

 

 

 

4,695

 

 

 

—

 

 

 

4,695

 

 

 

—

 

Restricted stock

 

 

1,672

 

 

 

1,672

 

 

 

1,672

 

 

 

—

 

 

 

—

 

Loan servicing assets

 

 

4,287

 

 

 

7,030

 

 

 

—

 

 

 

7,030

 

 

 

—

 

Mortgage banking derivatives

 

 

852

 

 

 

852

 

 

 

—

 

 

 

46

 

 

 

806

 

Accrued interest receivable

 

 

4,393

 

 

 

4,393

 

 

 

—

 

 

 

—

 

 

 

4,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

981,713

 

 

$

980,534

 

 

$

—

 

 

$

980,534

 

 

$

—

 

Short-term borrowings

 

 

1,379

 

 

 

1,379

 

 

 

—

 

 

 

1,379

 

 

 

—

 

Long-term borrowings

 

 

29,104

 

 

 

25,102

 

 

 

—

 

 

 

—

 

 

 

25,102

 

Mortgage banking derivatives

 

 

288

 

 

 

288

 

 

 

—

 

 

 

288

 

 

 

—

 

Accrued interest payable

 

 

414

 

 

 

414

 

 

 

—

 

 

 

—

 

 

 

414

 

 

At September 30, 2024 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 9 (Commitments and Contingencies) to the Company's Notes to Consolidated Financial Statements.