FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2025

FAIR VALUE MEASUREMENTS

Schedule of securities measured at fair value on a recurring basis

(Dollars in thousands)

June 30, 2025

Level 1

Level 2

Level 3

Total

Debt Securities Available-for-Sale:

U.S. Treasury securities

$

7,395

$

—

$

—

$

7,395

Obligations of U.S. Government Agencies and Sponsored Agencies:

Mortgaged-backed

—

132,548

—

132,548

Other

—

3,980

—

3,980

Other mortgage backed debt securities

—

40,193

—

40,193

Obligations of state and political subdivisions

—

78,288

—

78,288

Asset-backed securities

—

68,483

—

68,483

Corporate debt securities

—

37,454

—

37,454

Total debt securities available-for-sale

7,395

360,946

—

368,341

Marketable equity securities

1,606

—

—

1,606

Total recurring fair value measurements

$

9,001

$

360,946

$

—

$

369,947


(Dollars in thousands)

December 31, 2024		Level 1			Level 2			Level 3			Total
Debt Securities Available-for-Sale:
U.S. Treasury securities		$	7,151		$	—		$	—		$	7,151
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed			—			136,708			—			136,708
Other			—			5,122			—			5,122
Other mortgage backed debt securities			—			46,273			—			46,273
Obligations of state and political subdivisions			—			83,485			—			83,485
Asset-backed securities			—			73,867			—			73,867
Corporate debt securities			—			37,682			—			37,682
Total debt securities available-for-sale			7,151			383,137			—			390,288
Marketable equity securities			1,587			—			—			1,587
Total recurring fair value measurements		$	8,738		$	383,137		$	—		$	391,875

Schedule of individually evaluated loans measured at fair value on a nonrecurring basis


(Dollars in thousands)		Level 1			Level 2			Level 3			Total
Assets at June 30, 2025
Individually evaluated loans:
Real Estate		$	—		$	—		$	1,603		$	1,603
Commercial and Industrial			—			—			28			28
Total individually evaluated loans		$	—		$	—		$	1,631		$	1,631


(Dollars in thousands)		Level 1			Level 2			Level 3			Total
Assets at December 31, 2024
Individually evaluated loans:
Real Estate		$	—		$	—		$	1,603		$	1,603
Total individually evaluated loans		$	—		$	—		$	1,603		$	1,603

Schedule of fair value measurement inputs and valuation techniques


(Dollars in thousands)		Quantitative Information about Level 3 Fair Value Measurements

June 30, 2025		Estimate			Valuation Technique		Unobservable Input		Discount Range		Weighted Average Discount
Individually evaluated loans - collateral dependent		$	1,631		Appraisal of collateral^1,3 Certificate of Inspection^1,3		Appraisal adjustments² Qualitative Adjustments⁴		(0%) – (15%)		(15%)

December 31, 2024
Individually evaluated loans - collateral dependent		$	1,603		Appraisal of collateral^1,3 Certificate of Inspection^1,3		Appraisal adjustments² Qualitative Adjustments⁴		(5%) – (5%)		(5%)

1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators.

2. Appraisals may be adjusted downward/discounted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

3. Includes qualitative adjustments by management and estimated liquidation expenses.

4. Collateral values may be adjusted downward/discounted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

Schedule of fair value of financial instruments, including financial assets and financial liabilities

(Dollars in thousands)

Carrying

Fair Value Measurements at June 30, 2025

Amount

Level 1

Level 2

Level 3

Total

FINANCIAL ASSETS:

Cash and due from banks

$

10,813

$

10,813

$

—

$

—

$

10,813

Interest-bearing deposits in other banks

28,240

—

28,240

—

28,240

Restricted investment in bank stocks

8,944

—

8,944

—

8,944

Net loans

952,008

—

—

953,159

953,159

Mortgage servicing rights

201

—

—

201

201

Accrued interest receivable

4,954

—

4,954

—

4,954

FINANCIAL LIABILITIES:

Demand, savings and other deposits

622,853

—

622,853

—

622,853

Time deposits

434,425

—

433,346

—

433,346

Short-term borrowings

129,551

—

130,896

—

130,896

Long-term borrowings

106,000

—

107,442

—

107,442

Subordinated debentures

25,000

—

21,470

—

21,470

Accrued interest payable

2,319

—

2,319

—

2,319

Derivative liabilities

3,617

—

3,617

—

3,617


(Dollars in thousands)		Carrying			Fair Value Measurements at December 31, 2024
		Amount			Level 1			Level 2			Level 3			Total
FINANCIAL ASSETS:
Cash and due from banks		$	9,933		$	9,933		$	—		$	—		$	9,933
Interest-bearing deposits in other banks			7,321			—			7,321			—			7,321
Restricted investment in bank stocks			8,984			—			8,984			—			8,984
Net loans			940,779			—			—			929,302			929,302
Mortgage servicing rights			218			—			—			218			218
Accrued interest receivable			4,993			—			4,993			—			4,993

FINANCIAL LIABILITIES:
Demand, savings and other deposits			677,762			—			677,762			—			677,762
Time deposits			368,118			—			366,772			—			366,772
Short-term borrowings			134,426			—			134,541			—			134,541
Long-term borrowings			106,000			—			107,728			—			107,728
Subordinated debentures			25,000			—			20,618			—			20,618
Accrued interest payable			2,152			—			2,152			—			2,152
Derivative liabilities			1,463			—			1,463			—			1,463