The estimated fair values of recognized financial instruments carried at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Fair Value
March 31, 2026
Financial assets
Securities held-to-maturity	$	179,155	$	—	$	156,463	$	—	$	156,463
Loans held for sale		546		555		—		—		555
Net loans		839,771		—		—		808,403		808,403
Mortgage servicing rights		624		—		—		624		624
Financial liabilities
Deposits	$	1,101,821	$	831,935	$	—	$	271,652	$	1,103,587
Other borrowings		892		—		—		810		810

December 31, 2025
Financial assets
Securities held-to-maturity	$	183,145	$	—	$	161,052	$	—	$	161,052
Loans held for sale		213		217		—		—		217
Net loans		817,308		—		—		784,544		784,544
Mortgage servicing rights		625		—		—		625		625
Financial liabilities
Deposits	$	1,127,915	$	865,010	$	—	$	264,502	$	1,129,512
Other borrowings		917		—		—		835		835

Other financial instruments carried at amortized cost include cash and cash equivalents, restricted stock, bank-owned life insurance, accrued interest receivable, short-term borrowings, and accrued interest payable, all of which have a Level I fair value that approximates their carrying value. The Company also has unrecognized financial instruments on March 31, 2026 and December 31, 2025, related to commitments to extend credit and letters of credit. The aggregate contract amount of such financial instruments was approximately $290 million on March 31, 2026 and $289 million on December 31, 2025.

The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. Since no ready market exists for a significant portion of the financial instruments, fair value estimates are largely based on judgments after considering such factors as future expected credit losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.