PARK NATIONAL CORP /OH/PRK
PARK NATIONAL CORP /OH/ Fair Value Disclosure
Fair Value
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:
•Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.
•Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
•Level 3: Significant unobservable inputs that reflect Park's own assumptions about the assumptions that market participants would use in pricing an asset or liability. This could include the use of internally developed models, financial forecasting and similar inputs.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of individually evaluated collateral dependent loans is typically based on the fair value of the underlying collateral, which is estimated through third-party appraisals in accordance with Park's valuation requirements under its commercial and real estate loan policies.
Assets and Liabilities Measured at Fair Value on a Recurring Basis:
The following tables present assets and liabilities measured at fair value on a recurring basis:
Fair Value Measurements at December 31, 2025 using: | ||||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2025 | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Obligations of states and political subdivisions | $ | — | $ | 211,823 | $ | — | $ | 211,823 | ||||||||||||||||||
| U.S. Government sponsored entities’ asset-backed securities | — | 399,964 | — | 399,964 | ||||||||||||||||||||||
| Collateralized loan obligations | — | 56,143 | — | 56,143 | ||||||||||||||||||||||
| Corporate debt securities | — | 13,322 | 7,416 | 20,738 | ||||||||||||||||||||||
| Equity securities | 16,867 | — | 626 | 17,493 | ||||||||||||||||||||||
| Mortgage loans held for sale | — | 4,004 | — | 4,004 | ||||||||||||||||||||||
| Mortgage IRLCs | — | 115 | — | 115 | ||||||||||||||||||||||
| Loan interest rate swaps | — | 548 | — | 548 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Fair value swap | $ | — | $ | — | $ | 268 | $ | 268 | ||||||||||||||||||
| Loan interest rate swaps | — | 548 | — | 548 | ||||||||||||||||||||||
Fair Value Measurements at December 31, 2024 using: | ||||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2024 | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Obligations of U.S. Government sponsored entities | $ | — | $ | 249 | $ | — | $ | 249 | ||||||||||||||||||
| Obligations of states and political subdivisions | — | 186,883 | — | 186,883 | ||||||||||||||||||||||
| U.S. Government sponsored entities’ asset-backed securities | — | 518,576 | — | 518,576 | ||||||||||||||||||||||
| Collateralized loan obligations | — | 271,833 | — | 271,833 | ||||||||||||||||||||||
| Corporate debt securities | — | 12,419 | 6,664 | 19,083 | ||||||||||||||||||||||
| Equity securities | 10,885 | — | 603 | 11,488 | ||||||||||||||||||||||
| Mortgage loans held for sale | — | 5,550 | — | 5,550 | ||||||||||||||||||||||
| Mortgage IRLCs | — | 85 | — | 85 | ||||||||||||||||||||||
| Loan interest rate swaps | — | 1,009 | — | 1,009 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Fair value swap | $ | — | $ | — | $ | 103 | $ | 103 | ||||||||||||||||||
| Loan interest rate swaps | — | 1,009 | — | 1,009 | ||||||||||||||||||||||
The following methods and assumptions were used by the Company in determining the fair value of the financial assets and financial liabilities discussed above:
Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and is classified as Level 3.
Interest rate swaps: The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2).
Investment securities: Fair values for investment securities are based on quoted market prices, where available (Level 1). If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2). This includes the use of "matrix pricing" to value debt securities absent the exclusive use of quoted prices. For equity securities where quoted prices or market prices of similar securities are not available, fair values are calculated using alternative valuation techniques, based on unobservable inputs (Level 3). For debt securities where quoted prices or market prices of similar securities are not available, fair values are calculated using DCF (Level 3).
Mortgage interest rate lock commitments: Mortgage IRLCs are based on current secondary market pricing and are classified as Level 2.
Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using market prices for similar product types and, therefore, are classified in Level 2.
The following tables present a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2025 and 2024, for financial instruments measured on a recurring basis and classified as Level 3:
| Level 3 Fair Value Measurements | ||||||||||||||||||||
| (In thousands) | Corporate debt securities | Equity securities | Fair value swap | |||||||||||||||||
| Balance at January 1, 2025 | $ | 6,664 | $ | 603 | $ | (103) | ||||||||||||||
| Transfers into level 3 | 404 | — | — | |||||||||||||||||
| Total gains / (losses) | ||||||||||||||||||||
| Included in other income / other (expense) | — | 23 | (457) | |||||||||||||||||
| Included in other comprehensive income | 348 | — | — | |||||||||||||||||
| Purchases, sales, issuances and settlements, other, net | — | — | 292 | |||||||||||||||||
| Balance at December 31, 2025 | $ | 7,416 | $ | 626 | $ | (268) | ||||||||||||||
| Balance at January 1, 2024 | $ | 6,349 | $ | 473 | $ | (123) | ||||||||||||||
| Transfers into (out of) level 3, net | — | — | — | |||||||||||||||||
| Total gains / (losses) | ||||||||||||||||||||
| Included in other income / other (expense) | — | 130 | (500) | |||||||||||||||||
| Included in other comprehensive income | 315 | — | — | |||||||||||||||||
| Purchases, sales, issuances and settlements, other, net | — | — | 520 | |||||||||||||||||
| Balance at December 31, 2024 | $ | 6,664 | $ | 603 | $ | (103) | ||||||||||||||
One corporate debt security with a fair value of $404,000 as of December 31, 2025, was transferred out of Level 2 and into Level 3 because of a lack of observable market data for this investment. Level 3 corporate debt securities consisted of two debt securities at December 31, 2025 and a single debt security at December 31, 2024, which were valued using a discounted cash flow calculation. Significant unobservable inputs included a credit spread assumption which ranged from 3.67% and 4.45% at December 31, 2025, and was 3.67% at December 31, 2024.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:
The following methods and assumptions were used by the Company in determining the fair value of assets and liabilities measured at fair value on a nonrecurring basis as described below:
Individually evaluated collateral dependent loans: When a loan is individually evaluated, it is valued at the lower of cost or fair value. Collateral dependent loans which are individually evaluated and carried at fair value have been partially charged off or receive allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the customer and the customer’s business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Additionally, valuations for all collateral dependent loans are updated annually, either through independent valuations by a licensed appraiser or a VOV performed by an internal licensed appraiser, in accordance with Company policy. A VOV can only be used in select circumstances and verifies that the original appraised value has not deteriorated through property inspection, consideration of market conditions, and performance of all valuation methods utilized in a prior valuation.
Loans individually evaluated for impairment include all internally classified commercial nonaccrual loans and accruing collateral dependent loans to borrowers experiencing financial difficulty.
OREO: Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.
Appraisals for both individually evaluated collateral dependent loans and OREO are performed by licensed appraisers. Appraisals are generally obtained to support the fair value of collateral. In general, there are three types of appraisals received by the Company: real estate appraisals, income approach appraisals, and lot development loan appraisals. These are discussed below:
•Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 15% discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This 15% discount is based on historical discounts to appraised values on sold OREO.
•Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).
•Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a 6% discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.
MSRs: MSRs are carried at the lower of cost or fair value. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third-party specialist, determines fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds. The calculated fair value is then compared to market values where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified as Level 2.
The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Individually evaluated, collateral-dependent loans secured by real estate are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. As of December 31, 2025 and 2024, there were no PCD loans carried at fair value. Additionally, there were no accruing, individually evaluated, collateral-dependent loans carried at fair value. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken with respect to the property's value subsequent to the initial measurement. There were no OREO properties recorded at fair value as of December 31, 2025.
Fair Value Measurements at December 31, 2025 Using: | ||||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2025 | ||||||||||||||||||||||
| Nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value: | ||||||||||||||||||||||||||
Commercial, financial and agricultural (1) | $ | — | $ | — | $ | 3,674 | $ | 3,674 | ||||||||||||||||||
| Commercial real estate | — | — | 370 | 370 | ||||||||||||||||||||||
| Residential real estate | — | — | 17 | 17 | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value | $ | — | $ | — | $ | 4,061 | $ | 4,061 | ||||||||||||||||||
| MSRs | $ | — | $ | 35 | $ | — | $ | 35 | ||||||||||||||||||
(1) Includes commercial, financial and agricultural loans in which real estate collateral was obtained subsequent to loan origination.
Fair Value Measurements at December 31, 2024 Using: | ||||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2024 | ||||||||||||||||||||||
| Nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value: | ||||||||||||||||||||||||||
| Commercial real estate | $ | — | $ | — | $ | 1,022 | $ | 1,022 | ||||||||||||||||||
| Residential real estate | — | — | 1,924 | 1,924 | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value | $ | — | $ | — | $ | 2,946 | $ | 2,946 | ||||||||||||||||||
| MSRs | $ | — | $ | 371 | $ | — | $ | 371 | ||||||||||||||||||
| OREO recorded at fair value: | ||||||||||||||||||||||||||
| Commercial real estate | $ | — | $ | — | $ | 938 | $ | 938 | ||||||||||||||||||
| Total OREO recorded at fair value | $ | — | $ | — | $ | 938 | $ | 938 | ||||||||||||||||||
The tables below provide additional detail on those nonaccrual individually evaluated loans which are recorded at fair value as well as the remaining nonaccrual individually evaluated loan portfolio not included above. The remaining nonaccrual individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.
| December 31, 2025 | ||||||||||||||||||||||||||
| (In thousands) | Loan Balance | Prior Charge-Offs | Specific Valuation Allowance | Carrying Balance | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value | $ | 4,081 | $ | 4,640 | $ | 20 | $ | 4,061 | ||||||||||||||||||
| Remaining nonaccrual, individually evaluated loans | 42,843 | 100 | 719 | 42,124 | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated loans | $ | 46,924 | $ | 4,740 | $ | 739 | $ | 46,185 | ||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| (In thousands) | Recorded Investment | Prior Charge-Offs | Specific Valuation Allowance | Carrying Balance | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value | $ | 2,986 | $ | 488 | $ | 40 | $ | 2,946 | ||||||||||||||||||
| Remaining nonaccrual, individually evaluated loans | 50,163 | 4,521 | 1,259 | 48,904 | ||||||||||||||||||||||
| Total nonaccrual, individually evaluated loans | $ | 53,149 | $ | 5,009 | $ | 1,299 | $ | 51,850 | ||||||||||||||||||
The expense from credit adjustments related to nonaccrual individually evaluated loans carried at fair value for the years ended December 31, 2025, 2024 and 2023 was $1.6 million, $0.2 million, and $1.0 million, respectively.
MSRs totaled $13.7 million at December 31, 2025. Of this $13.7 million MSR carrying balance, $35,000 was recorded at fair value and included a valuation allowance of $3,000. The remaining $13.7 million was recorded at cost, as the fair value exceeded cost at December 31, 2025. At December 31, 2024, MSRs totaled $13.9 million. Of this $13.9 million MSR carrying balance, $0.4 million was recorded at fair value and included a valuation allowance of $19,000. The remaining $13.5 million was recorded at cost, as the fair value exceeded cost at December 31, 2024. The income related to MSRs carried at fair value for the years ended December 31, 2025, 2024 and 2023 was $16,000, $75,000 and $88,000, respectively.
Total OREO held by Park at December 31, 2025 and 2024 was $0.7 million and $0.9 million, respectively. At December 31, 2025, there was no OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement. At December 31, 2024, there was $938,000 of OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement. The expense related to OREO fair value adjustments was $60,000 and $493,000 for the years ended December 31, 2025 and 2023, respectively. There was no expense related to OREO carried at fair value during the year ended December 31, 2024.
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2025 and December 31, 2024:
| December 31, 2025 | ||||||||||||||||||||||||||
| (In thousands) | Fair Value | Valuation Technique | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||||
| Nonaccrual, individually evaluated, collateral-dependent loans: | ||||||||||||||||||||||||||
| Commercial, financial and agricultural | $ | 3,674 | Sales comparison approach | Adj to comparables | 5.0% - 46.0% (25.5%) | |||||||||||||||||||||
| Commercial real estate | $ | 370 | Sales comparison approach | Adj to comparables | 0.0% - 10.0% (3.8%) | |||||||||||||||||||||
| Income approach | Capitalization rate | 10.0% (10.0%) | ||||||||||||||||||||||||
| Residential real estate | $ | 17 | Sales comparison approach | Adj to comparables | 11.9% - 38.9% (25.4%) | |||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| (In thousands) | Fair Value | Valuation Technique | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||||
| Nonaccrual, individually evaluated, collateral-dependent loans: | ||||||||||||||||||||||||||
| Commercial real estate | $ | 1,022 | Sales comparison approach | Adj to comparables | 0.0% - 30.0% (15.2%) | |||||||||||||||||||||
| Income approach | Capitalization rate | 9.5% - 10.0% (9.6%) | ||||||||||||||||||||||||
| Residential real estate | $ | 1,924 | Sales comparison approach | Adj to comparables | 4.7% - 45.5% (21.6%) | |||||||||||||||||||||
| Income approach | Capitalization rate | 6.3% (6.3%) | ||||||||||||||||||||||||
| Other real estate owned: | ||||||||||||||||||||||||||
| Commercial real estate | $ | 938 | Sales comparison approach | Adj to comparables | 5.0% - 10.0% (7.5%) | |||||||||||||||||||||
| Cost approach | Entrepreneurial profit | 5.0% (5.0%) | ||||||||||||||||||||||||
| Cost approach | Accumulated depreciation | 50.0% (50.0%) | ||||||||||||||||||||||||
Assets Measured at Net Asset Value:
Park's portfolio of Partnership Investments are valued using the NAV practical expedient in accordance with ASC 820.
At December 31, 2025 and December 31, 2024, Park had Partnership Investments with a NAV of $39.3 million and $32.6 million, respectively. At December 31, 2025 and December 31, 2024, Park had $12.6 million and $17.6 million in unfunded commitments related to these Partnership Investments. For the years ended December 31, 2025, 2024 and 2023, Park recognized income of $1.2 million, $0.5 million and $0.4 million, respectively, related to these Partnership Investments.
The fair value of certain financial instruments at December 31, 2025 and December 31, 2024 was as follows:
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| Fair Value Measurements | ||||||||||||||||||||||||||||||||
| (In thousands) | Carrying value | Level 1 | Level 2 | Level 3 | Total fair value | |||||||||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||||||||||
| Cash and money market instruments | $ | 233,513 | $ | 233,513 | $ | — | $ | — | $ | 233,513 | ||||||||||||||||||||||
Investment securities (1) | 688,668 | — | 681,252 | 7,416 | 688,668 | |||||||||||||||||||||||||||
Other investment securities (2) | 17,493 | 16,867 | — | 626 | 17,493 | |||||||||||||||||||||||||||
| Mortgage loans held for sale | 4,004 | — | 4,004 | — | 4,004 | |||||||||||||||||||||||||||
| Mortgage IRLCs | 115 | — | 115 | — | 115 | |||||||||||||||||||||||||||
| Individually evaluated loans carried at fair value | 4,061 | — | — | 4,061 | 4,061 | |||||||||||||||||||||||||||
| Other loans, net | 7,950,089 | — | — | 7,848,810 | 7,848,810 | |||||||||||||||||||||||||||
| Loans receivable, net | $ | 7,958,269 | $ | — | $ | 4,119 | $ | 7,852,871 | $ | 7,856,990 | ||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||||||||||
| Time deposits | $ | 772,952 | $ | — | $ | 774,487 | $ | — | $ | 774,487 | ||||||||||||||||||||||
| Brokered deposits and Bid Ohio CDs | 17,000 | — | 17,000 | — | 17,000 | |||||||||||||||||||||||||||
| Other | 1,216 | 1,216 | — | — | 1,216 | |||||||||||||||||||||||||||
| Deposits (excluding demand deposits) | $ | 791,168 | $ | 1,216 | $ | 791,487 | $ | — | $ | 792,703 | ||||||||||||||||||||||
| Short-term borrowings | $ | 81,711 | $ | — | $ | 81,711 | $ | — | $ | 81,711 | ||||||||||||||||||||||
| Derivative financial instruments - assets: | ||||||||||||||||||||||||||||||||
| Loan interest rate swaps | $ | 548 | $ | — | $ | 548 | $ | — | $ | 548 | ||||||||||||||||||||||
| Derivative financial instruments - liabilities: | ||||||||||||||||||||||||||||||||
| Fair value swap | $ | 268 | $ | — | $ | — | $ | 268 | $ | 268 | ||||||||||||||||||||||
| Loan interest rate swaps | 548 | — | 548 | — | 548 | |||||||||||||||||||||||||||
(1) Includes debt securities AFS.
(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Fair Value Measurements | ||||||||||||||||||||||||||||||||
| (In thousands) | Carrying value | Level 1 | Level 2 | Level 3 | Total fair value | |||||||||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||||||||||
| Cash and money market instruments | $ | 160,566 | $ | 160,566 | $ | — | $ | — | $ | 160,566 | ||||||||||||||||||||||
Investment securities (1) | 996,624 | — | 989,960 | 6,664 | 996,624 | |||||||||||||||||||||||||||
Other investment securities (2) | 11,488 | 10,885 | — | 603 | 11,488 | |||||||||||||||||||||||||||
| Mortgage loans held for sale | 5,550 | — | 5,550 | — | 5,550 | |||||||||||||||||||||||||||
| Mortgage IRLCs | 85 | — | 85 | — | 85 | |||||||||||||||||||||||||||
| Individually evaluated loans carried at fair value | 2,946 | — | — | 2,946 | 2,946 | |||||||||||||||||||||||||||
| Other loans, net | 7,720,581 | — | — | 7,586,111 | 7,586,111 | |||||||||||||||||||||||||||
| Loans receivable, net | $ | 7,729,162 | $ | — | $ | 5,635 | $ | 7,589,057 | $ | 7,594,692 | ||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||||||||||
| Time deposits | $ | 735,297 | $ | — | $ | 736,188 | $ | — | $ | 736,188 | ||||||||||||||||||||||
| Brokered deposits and Bid Ohio CDs | 176,486 | — | 176,522 | — | 176,522 | |||||||||||||||||||||||||||
| Other | 1,265 | 1,265 | — | — | 1,265 | |||||||||||||||||||||||||||
| Deposits (excluding demand deposits) | $ | 913,048 | $ | 1,265 | $ | 912,710 | $ | — | $ | 913,975 | ||||||||||||||||||||||
| Short-term borrowings | $ | 90,432 | $ | — | $ | 90,432 | $ | — | $ | 90,432 | ||||||||||||||||||||||
| Subordinated notes | 189,651 | — | 185,599 | — | 185,599 | |||||||||||||||||||||||||||
| Derivative financial instruments - assets: | ||||||||||||||||||||||||||||||||
| Loan interest rate swaps | $ | 1,009 | $ | — | $ | 1,009 | $ | — | $ | 1,009 | ||||||||||||||||||||||
| Derivative financial instruments - liabilities: | ||||||||||||||||||||||||||||||||
| Fair value swap | $ | 103 | $ | — | $ | — | $ | 103 | $ | 103 | ||||||||||||||||||||||
| Loan interest rate swaps | 1,009 | — | 1,009 | — | 1,009 | |||||||||||||||||||||||||||
(1) Includes debt securities AFS.
(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 18, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.