FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

FAIR VALUE MEASUREMENTS

Schedule of securities and derivatives measured at fair value on a recurring basis

At December 31, 2025 and 2024, securities and derivatives measured at fair value on a recurring basis and the valuation methods used are as follows:

(Dollars in thousands)

 

December 31, 2025

ASSETS

Level 1

 

Level 2

 

Level 3

 

Total

Debt Securities Available-for-Sale:

U.S. Treasury securities

$

7,536

$

—

$

—

$

7,536

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

Mortgaged-backed

—

176,251

—

176,251

Other

—

3,294

—

3,294

Other mortgage backed debt securities

—

36,431

—

36,431

Obligations of state and political subdivisions

—

74,925

—

74,925

Asset-backed securities

—

63,493

—

63,493

Corporate debt securities

—

32,296

—

32,296

Total debt securities available-for-sale

$

7,536

$

386,690

$

—

$

394,226

Marketable equity securities

$

1,810

$

—

$

—

$

1,810

LIABILITIES

Level 1

 

Level 2

 

Level 3

 

Total

Derivatives

$

—

$

(3,859)

$

—

$

(3,859)


(Dollars in thousands)

December 31, 2024

ASSETS		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

LIABILITIES			Level 1			Level 2			Level 3			Total
Derivatives		$	—		$	(1,463)		$	—		$	(1,463)

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 December 31, 2025
Individually evaluated loans:
Real Estate		$	—		$	—		$	12,776		$	12,776
Commercial and Industrial			—			—			10			10
Total individually evaluated loans		$	—		$	—		$	12,786		$	12,786


(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

December 31, 2025		Estimate			Valuation Technique		Unobservable Input		Discount Range		Weighted Average Discount
Individually evaluated loans - collateral dependent		$	12,786		Appraisal of collateral^1,3 Certificate of Inspection^1,3		Appraisal adjustments² Qualitative Adjustments⁴		(0%) – (48%)		(18%)

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 December 31, 2025

 

Amount

 

Level 1

 

Level 2

 

Level 3

 

Total

FINANCIAL ASSETS:

Cash and due from banks

$

8,755

$

8,755

$

—

$

—

$

8,755

Interest-bearing deposits in other banks

112,494

—

112,494

—

112,494

Restricted investment in bank stocks

8,944

—

8,944

—

8,944

Net loans

939,013

—

—

945,462

945,462

Mortgage servicing rights

196

—

—

196

196

Accrued interest receivable

4,997

—

4,997

—

4,997

FINANCIAL LIABILITIES:

Demand, savings and other deposits

633,448

—

633,448

—

633,448

Time deposits

503,988

—

503,245

—

503,245

Short-term borrowings

136,845

—

137,887

—

137,887

Long-term borrowings

106,000

—

107,124

—

107,124

Subordinated debentures

25,000

—

21,706

—

21,706

Accrued interest payable

2,735

—

2,735

—

2,735


(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