FAIR VALUE MEASUREMENT (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| FAIR VALUE MEASUREMENT |
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| Fair Value Measurements by Level of Valuation Inputs |
The following tables summarize financial assets and financial liabilities measured at fair value as of June 30, 2025 and December 31, 2024 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no assets measured at fair value on a non-recurring basis as of June 30, 2025 or December 31, 2024. | | | | | | | | | | | | | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | Quoted Prices in | | Significant | | Significant | | | | (Dollars in thousands) | | Active Markets | | Other | | Other | | | | | | for Identical | | Observable | | Unobservable | | | June 30, 2025 | | Assets | | Inputs | | Inputs | | Total | Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | Debt securities available for sale: | | | | | | | | | | | | | Obligations of U.S. Government agencies and corporations | | $ | — | | $ | 14,876 | | $ | — | | $ | 14,876 | Obligations of state and political subdivisions | | | — | | | 6,186 | | | — | | | 6,186 | Corporate debt securities | | | — | | | 8,439 | | | 7,295 | | | 15,734 | Mortgage-backed securities | | | — | | | 27,435 | | | — | | | 27,435 | Total debt securities available for sale | | $ | — | | $ | 56,936 | | $ | 7,295 | | $ | 64,231 | Equity securities | | $ | 1,154 | | $ | — | | $ | — | | $ | 1,154 | Mortgage servicing rights | | $ | — | | $ | — | | $ | 65 | | $ | 65 | Derivatives | | $ | — | | $ | 173 | | $ | — | | $ | 173 | Liabilities measured at fair value on a recurring basis: | | | | | | | | | | | | | Derivatives | | $ | — | | $ | 203 | | $ | — | | $ | 203 |
| | | | | | | | | | | | | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | Quoted Prices in | | Significant | | Significant | | | | (Dollars in thousands) | | Active Markets | | Other | | Other | | | | | | for Identical | | Observable | | Unobservable | | | December 31, 2024 | | Assets | | Inputs | | Inputs | | Total | Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | Debt securities available for sale: | | | | | | | | | | | | | Obligations of U.S. Government agencies and corporations | | $ | — | | $ | 14,576 | | $ | — | | $ | 14,576 | Obligations of state and political subdivisions | | | — | | | 6,033 | | | — | | | 6,033 | Corporate debt securities | | | — | | | 8,403 | | | 6,955 | | | 15,358 | Mortgage-backed securities | | | — | | | 28,656 | | | — | | | 28,656 | Total debt securities available for sale | | $ | — | | $ | 57,668 | | $ | 6,955 | | $ | 64,623 | Equity securities | | $ | 1,189 | | $ | — | | $ | — | | $ | 1,189 | Mortgage servicing rights | | $ | — | | $ | — | | $ | 69 | | $ | 69 | Derivatives | | $ | — | | $ | 20 | | $ | — | | $ | 20 | Liabilities measured at fair value on a recurring basis: | | | | | | | | | | | | | Derivatives | | $ | — | | $ | 44 | | $ | — | | $ | 44 |
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| Reconciliation of Investment Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs |
The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six month periods ended June 30, 2025 and 2024. | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (Dollars in thousands) | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Investment Securities: | | | | | | | | | | | | | Beginning balance | | $ | 7,125 | | $ | 6,494 | | $ | 6,955 | | $ | 6,153 | Total gain included in OCI | | | 170 | | | 49 | | | 340 | | | 390 | Purchases | | | — | | | — | | | — | | | — | Principal payments and other | | | — | | | — | | | — | | | — | Sales | | | — | | | — | | | — | | | — | Balance, end of period | | $ | 7,295 | | $ | 6,543 | | $ | 7,295 | | $ | 6,543 |
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| Carrying Amounts and Estimated Fair Values of Financial Instruments |
The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: | | | | | | | | | | | | | | | Financial Instruments | (Dollars in thousands) | | June 30, 2025 | | December 31, 2024 | | | Carrying | | Fair | | Carrying | | Fair | | | Value | | Value | | Value | | Value | Financial assets: | | | | | | | | | | | | | Cash and due from banks | | $ | 4,874 | | $ | 4,874 | | $ | 5,064 | | $ | 5,064 | Interest bearing deposits with banks | | | 7,237 | | | 7,237 | | | 5,934 | | | 5,934 | Debt securities available for sale | | | 64,231 | | | 64,231 | | | 64,623 | | | 64,623 | Debt securities held to maturity | | | 187,174 | | | 182,845 | | | 191,627 | | | 182,773 | Loans, net of allowance for credit losses | | | 549,697 | | | 533,206 | | | 527,686 | | | 511,826 | Derivatives | | | 173 | | | 173 | | | 20 | | | 20 | Accrued interest receivable | | | 2,482 | | | 2,482 | | | 2,251 | | | 2,251 | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | Time deposits | | $ | 220,127 | | $ | 219,018 | | $ | 213,352 | | $ | 212,152 | Securities sold under agreements to repurchase | | | 16,720 | | | N/A | | | 14,342 | | | N/A | Short-term borrowings | | | 33,000 | | | 33,000 | | | 27,900 | | | 27,900 | Long-term debt | | | — | | | — | | | 5,000 | | | 5,000 | Derivatives | | | 203 | | | 203 | | | 44 | | | 44 | Other interest bearing liabilities | | | 776 | | | 776 | | | 830 | | | 829 | Accrued interest payable | | | 888 | | | 888 | | | 876 | | | 876 | | | | | | | | | | | | | | Off-balance sheet financial instruments: | | | | | | | | | | | | | Commitments to extend credit | | $ | — | | $ | — | | $ | — | | $ | — | Letters of credit | | | — | | | — | | | — | | | — |
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| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of June 30, 2025 and December 31, 2024. The tables exclude financial instruments for which the carrying amount approximates fair value. | | | | | | | | | | | | | | | | | | | | | | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | | | Quoted Prices in | | Significant | | Significant | (Dollars in thousands) | | | | | | | | Active Markets | | Other | | Other | | | Carrying | | | | | for Identical | | Observable | | Unobservable | | | Amount | | Fair Value | | Assets or Liabilities | | Inputs | | Inputs | June 30, 2025 | | | | | | | | | | | | | | | | Financial instruments – Assets | | | | | | | | | | | | | | | | Debt securities held to maturity | | $ | 187,174 | | $ | 182,845 | | $ | — | | $ | 182,845 | | $ | — | Loans, net of allowance for credit losses | | | 549,697 | | | 533,206 | | | — | | | — | | | 533,206 | Financial instruments – Liabilities | | | | | | | | | | | | | | | | Time deposits | | $ | 220,127 | | $ | 219,018 | | $ | — | | $ | 219,018 | | $ | — | Short-term borrowings | | | 33,000 | | | 33,000 | | | — | | | 33,000 | | | — | Other interest bearing liabilities | | | 776 | | | 776 | | | — | | | 776 | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | | | Quoted Prices in | | Significant | | Significant | (Dollars in thousands) | | | | | | | | Active Markets | | Other | | Other | | | Carrying | | | | | for Identical | | Observable | | Unobservable | | | Amount | | Fair Value | | Assets or Liabilities | | Inputs | | Inputs | December 31, 2024 | | | | | | | | | | | | | | | | Financial instruments – Assets | | | | | | | | | | | | | | | | Debt securities held to maturity | | $ | 191,627 | | $ | 182,773 | | $ | — | | $ | 182,773 | | $ | — | Loans, net of allowance for credit losses | | | 527,686 | | | 511,826 | | | — | | | — | | | 511,826 | Financial instruments – Liabilities | | | | | | | | | | | | | | | | Time deposits | | $ | 213,352 | | $ | 212,152 | | $ | — | | $ | 212,152 | | $ | — | Short-term borrowings | | | 27,900 | | | 27,900 | | | — | | | 27,900 | | | — | Long-term debt | | | 5,000 | | | 5,000 | | | — | | | 5,000 | | | — | Other interest bearing liabilities | | | 830 | | | 829 | | | — | | | 829 | | | — |
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