Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value, Assets Measured on Recurring Basis

The following table presents assets and liabilities measured at net fair value on a recurring basis as of March 31, 2026 and December 31, 2025.


	Fair Value Measurements as of March 31, 2026 Using
	Totals At March 31, 2026		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	118,142	$	—	$	118,142	$	—
Commercial		8,440		—		8,440		—
Obligations of U.S. government-sponsored agencies		16,204		—		16,204		—
Obligations of states and political subdivisions		1,735		—		1,735		—
Corporate notes		17,111		—		17,111		—
U.S. Treasury securities		19,477		19,477		—		—
Derivative contracts:
Other assets - interest rate caps		1,173		—		1,173		—
Other assets - interest rate floors		164		—		164		—
Other assets - customer-related interest rate swaps		58		—		58		—
Other liabilities - customer-related interest rate swaps		58		—		58		—
Other liabilities - credit risk participation agreements		48		—		48		—


	Fair Value Measurements as of December 31, 2025 Using
	Totals At December 31, 2025		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	105,778	$	—	$	105,778	$	—
Commercial		7,583		—		7,583		—
Obligations of U.S. government-sponsored agencies		16,504		—		16,504
Obligations of states and political subdivisions		1,750		—		1,750		—
Corporate notes		17,026				17,026		—
U.S. Treasury securities		19,434		19,434		—		—
Derivative contracts:
Other assets - interest rate caps		795		—		795		—
Other assets - interest rate floors		166		—		166		—
Other assets - customer-related interest rate swaps		106		—		106		—
Other liabilities - customer-related interest rate swaps		106		—		106		—
Other liabilities - credit risk participation agreements		46		—		46		—

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the balances of collateral dependent loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of March 31, 2026 and December 31, 2025:


	Fair Value Measurements as of March 31, 2026 Using
	Totals At March 31, 2026		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Collateral dependent loans	$	161	$	—	$	—	$	161
OREO and other assets held-for-sale		215		—		—		215


	Fair Value Measurements as of December 31, 2025 Using
	Totals At December 31, 2025		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Collateral dependent loans	$	161	$	—	$	—	$	161
OREO and other assets held-for-sale		256		—		—		256

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

          
         Level 3 Significant Unobservable Input Assumptions

          
         Fair Value 
March 31, 
2026

         Valuation Technique

         Unobservable Input

         Quantitative Range
of Unobservable
Inputs
(Weighted Average)

          
         (Dollars in Thousands)

         Non-recurring fair value measurements:

Collateral dependent loans

161

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

Appraisal comparability
adjustment (discount)

9%-10%

9.5%

OREO and other assets held-for-sale

215

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

Appraisal comparability
adjustment (discount)

9%-10%

9.5%

          
         Level 3 Significant Unobservable Input Assumptions

          
         Fair Value
December 31, 2025

         Valuation Technique

         Unobservable Input

         Quantitative Range
of Unobservable
Inputs
(Weighted Average)

          
         (Dollars in Thousands)

         Non-recurring fair value measurements:

Collateral dependent loans

161

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

Appraisal comparability
adjustment (discount)

9%-10%

9.5%

OREO and other assets held-for-sale

256

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

Appraisal comparability adjustment (discount)

9%-10%

9.5%

Fair Value, by Balance Sheet Grouping

The estimated net fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2026 and December 31, 2025 were as follows:


	March 31, 2026
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	66,586	$	66,586	$	66,586	$	—	$	—
Investment securities available-for-sale		181,109		181,109		19,477		161,632		—
Investment securities held-to-maturity		436		419		—		419		—
Federal funds sold and securities purchased under reverse repurchase agreements		18,850		18,850		—		18,850		—
Federal Home Loan Bank stock		829		829		—		—		829
Loans, net of allowance for credit losses		833,161		793,073		—		—		793,073
Other assets - interest rate caps		1,173		1,173		—		1,173		—
Other assets - interest rate floors		164		164		—		164		—
Other assets - customer-related interest rate swaps		58		58		—		58		—
Liabilities:
Deposits		1,038,849		975,904		—		975,904		—
Long-term borrowings		10,963		10,227		—		10,227		—
Other liabilities - customer-related interest rate swaps		58		58		—		58		—
Other liabilities - credit risk participation agreements		48		48		—		48		—


	December 31, 2025
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	73,547	$	73,547	$	73,547	$	—	$	—
Investment securities available-for-sale		168,075		168,075		19,434		148,641		—
Investment securities held-to-maturity		465		449		—		449		—
Federal funds sold		4,850		4,850		—		4,850		—
Federal Home Loan Bank stock		791		791		—		—		791
Loans, net of allowance for credit losses		842,314		817,766		—		—		817,766
Other assets - interest rate caps		795		795		—		795		—
Other assets - interest rate floors		166		166		—		166		—
Other assets - customer-related interest rate swaps		106		106		—		106		—
Liabilities:
Deposits		1,027,962		973,141		—		973,141		—
Long-term borrowings		10,945		10,126				10,126		—
Other liabilities - customer-related interest rate swaps		106		106		—		106		—
Other liabilities - credit risk participation agreements		46		46		—		46		—

FIRST US BANCSHARES, INC. 10-Q