Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value of Financial Instruments

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis


					Fair Value Measurements at
					December 31, 2025 Using
					(in thousands)
		Assets Measured at			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
Description		12/31/25			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	1,404		$			$	1,404		$
Residential mortgage-backed agencies			22,855						22,855
Commercial mortgage-backed agencies			30,068						30,068
Collateralized mortgage obligations			27,390						27,390
Obligations of states and political subdivisions			8,525						8,525
Corporate bonds			907						907
Collateralized debt obligations			15,995									15,995
Equity investments not held for trading with readily determinable fair values			1,029			1,029
Financial derivative			76						76
Non-recurring:
Individually evaluated loans			266									266
Other real estate owned			853									853

					Fair Value Measurements at
					December 31, 2024 Using
					(in thousands)
		Assets Measured at			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
Description		12/31/24			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. treasuries		$	6,115		$			$	6,115		$
U.S. government agencies			20,196						20,196
Residential mortgage-backed agencies			28,634						28,634
Commercial mortgage-backed agencies			17,726						17,726
Collateralized mortgage obligations			6,209						6,209
Obligations of states and political subdivisions			896						896
Collateralized debt obligations			14,718									14,718
Financial derivative			455						455
Non-recurring:
Individually evaluated loans			647									647
Equity investment			3,928									3,928
Other real estate owned			2,698									2,698

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques



(in thousands)		Fair Value at December 31, 2025			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO		$	15,995		Discounted Cash Flow		Discount Rate		Range of upper 200s to upper 400s
Non-recurring:
Individually Evaluated Loans		$	266		Market Comparable Properties		Marketability Discount		N/A
Other Real Estate Owned ⁽¹⁾		$	853		Market Comparable Properties		Marketability Discount		15.0%



(in thousands)		Fair Value at December 31, 2024			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO		$	14,718		Discounted Cash Flow		Discount Rate		Range of low to mid 300 and low 500
Non-recurring:
Individually Evaluated Loans		$	647		Market Comparable Properties		Marketability Discount		N/A
Equity Investment		$	3,928		Market Method		Revenue Multiples		2.8x
Other Real Estate Owned ⁽¹⁾		$	2,698		Market Comparable Properties		Marketability Discount		5.0% to 15.0% (weighted avg 5.9%)

(1)	Range would include discounts taken since appraisal and estimated values.

Reconciliation of Fair Valued Assets Measured on a Recurring Basis

The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured using Level 3 significant unobservable inputs for the years ended December 31, 2025 and 2024:


			Fair Value Measurement Using Unobservable Inputs (Level 3)
(in thousands)			Investment Securities Available for Sale
Beginning balance January 1, 2025		$	14,718
Total gains realized/unrealized:
Included in other comprehensive income			1,277
Ending balance December 31, 2025		$	15,995

			Fair Value Measurement Using Unobservable Inputs (Level 3)
(in thousands)			Investment Securities Available for Sale
Beginning balance January 1, 2024		$	14,709
Total gains realized/unrealized:
Included in other comprehensive income			9
Ending balance December 31, 2024		$	14,718

Fair Value by Balance Sheet Grouping



		December 31, 2025						Fair Value Measurements
		Carrying			Fair			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	129,830		$	129,830		$	129,830
Interest bearing deposits in banks			1,782			1,782			1,782
Investment securities - AFS			107,144			107,144					$	91,149		$	15,995
Investment securities - HTM			171,361			148,889						147,144			1,745
Equity investments not held for trading with readily determinable fair values			1,029			1,029			1,029
Restricted bank stock			4,630			N/A
Loans, net			1,501,758			1,469,463									1,469,463
Financial derivative			76			76						76
Accrued interest receivable			7,904			7,904						895			7,009
Financial Liabilities:
Deposits – non-maturity			1,534,191			1,534,191						1,534,191
Deposits – time deposits			200,958			199,967						199,967
Short-term borrowed funds			17,661			17,661						17,661
Long-term borrowed funds			95,929			95,775						95,775
Accrued interest payable			953			953						953



		December 31, 2024						Fair Value Measurements
		Carrying			Fair			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	77,020		$	77,020		$	77,020
Interest bearing deposits in banks			1,307			1,307			1,307
Investment securities - AFS			94,494			94,494					$	79,776		$	14,718
Investment securities - HTM			175,497			144,760						142,954			1,806
Restricted bank stock			5,768			N/A
Loans, net			1,462,181			1,421,600									1,421,600
Financial derivative			455			455						455
Accrued interest receivable			7,473			7,473						827			6,646
Financial Liabilities:
Deposits – non-maturity			1,431,662			1,431,662						1,431,662
Deposits – time deposits			143,167			141,698						141,698
Short-term borrowed funds			65,409			65,409						65,409
Long-term borrowed funds			120,929			119,586						119,586
Accrued interest payable			489			489						489

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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