v3.26.1
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis

The following table presents assets and liabilities measured at net fair value on a recurring basis as of June 30, 2026 and December 31, 2025.

 

 

 

Fair Value Measurements as of June 30, 2026 Using

 

 

 

Totals At
June 30,
2026

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

109,345

 

 

$

—

 

 

$

109,345

 

 

$

—

 

Commercial

 

 

7,549

 

 

 

—

 

 

 

7,549

 

 

 

—

 

Obligations of U.S. government-sponsored agencies

 

 

16,096

 

 

 

—

 

 

 

16,096

 

 

 

—

 

Obligations of states and political subdivisions

 

 

1,450

 

 

 

—

 

 

 

1,450

 

 

 

—

 

Corporate notes

 

 

16,598

 

 

 

—

 

 

 

16,598

 

 

 

—

 

U.S. Treasury securities

 

 

14,540

 

 

 

14,540

 

 

 

—

 

 

 

—

 

Derivative contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets - interest rate caps

 

 

1,481

 

 

 

—

 

 

 

1,481

 

 

 

—

 

Other assets - interest rate floors

 

 

78

 

 

 

—

 

 

 

78

 

 

 

—

 

Other assets - customer-related interest rate swaps

 

 

89

 

 

 

—

 

 

 

89

 

 

 

—

 

Other liabilities - customer-related interest rate swaps

 

 

89

 

 

 

—

 

 

 

89

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

36

 

 

 

—

 

 

 

36

 

 

 

—

 

 

 

 

Fair Value Measurements as of December 31, 2025 Using

 

 

 

Totals At
December 31,
2025

 

 

Quoted
Prices in
Active
Markets
For Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

105,778

 

 

$

—

 

 

$

105,778

 

 

$

—

 

Commercial

 

 

7,583

 

 

 

—

 

 

 

7,583

 

 

 

—

 

Obligations of U.S. government-sponsored agencies

 

 

16,504

 

 

 

—

 

 

 

16,504

 

 

 

—

 

Obligations of states and political subdivisions

 

 

1,750

 

 

 

—

 

 

 

1,750

 

 

 

—

 

Corporate notes

 

 

17,026

 

 

 

—

 

 

 

17,026

 

 

 

—

 

U.S. Treasury securities

 

 

19,434

 

 

 

19,434

 

 

 

—

 

 

 

—

 

Derivative contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets - interest rate caps

 

 

795

 

 

 

—

 

 

 

795

 

 

 

—

 

Other assets - interest rate floors

 

 

166

 

 

 

—

 

 

 

166

 

 

 

—

 

Other assets - customer-related interest rate swaps

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Other liabilities - customer-related interest rate swaps

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

46

 

 

 

—

 

 

 

46

 

 

 

—

 
Fair Value Assets Measured on Nonrecurring Basis

The following table presents the balances of collateral dependent loans and OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of June 30, 2026 and December 31, 2025:

 

 

 

Fair Value Measurements as of June 30, 2026 Using

 

 

 

Totals At
June 30,
2026

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Collateral dependent loans

 

$

161

 

 

$

—

 

 

$

—

 

 

$

161

 

OREO and other assets held-for-sale

 

 

636

 

 

 

—

 

 

 

—

 

 

 

636

 

 

 

 

Fair Value Measurements as of December 31, 2025 Using

 

 

 

Totals At
December 31,
2025

 

 

Quoted
Prices in
Active
Markets For
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(Dollars in Thousands)

 

Collateral dependent loans

 

$

161

 

 

$

—

 

 

$

—

 

 

$

161

 

OREO and other assets held-for-sale

 

 

256

 

 

 

—

 

 

 

—

 

 

 

256

 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

 

 

 

Level 3 Significant Unobservable Input Assumptions

 

 

Fair Value
 June 30, 2026

 

 

Valuation Technique

 

Unobservable Input

 

Quantitative Range
of Unobservable
Inputs
(Weighted Average)

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Non-recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

161

 

 

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

OREO and other assets held-for-sale

 

$

636

 

 

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

Level 3 Significant Unobservable Input Assumptions

 

 

Fair Value
December 31, 2025

 

 

Valuation Technique

 

Unobservable Input

 

Quantitative Range
of Unobservable
Inputs
(Weighted Average)

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Non-recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

161

 

 

Multiple data points,
including discount to
appraised value of
collateral based on
recent market activity

 

Appraisal comparability
adjustment (discount)

 

9%-10%

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

OREO and other assets held-for-sale

 

$

256

 

 

Discount to appraised
value of property
based on recent
market activity for
sales of similar
properties

 

Appraisal comparability adjustment (discount)

 

9%-10%

 

9.5%
Fair Value, by Balance Sheet Grouping

The estimated net fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of June 30, 2026 and December 31, 2025 were as follows:

 

 

 

June 30, 2026

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

58,937

 

 

$

58,937

 

 

$

58,937

 

 

$

—

 

 

$

—

 

Investment securities available-for-sale

 

 

165,578

 

 

 

165,578

 

 

 

14,540

 

 

 

151,038

 

 

 

—

 

Investment securities held-to-maturity

 

 

381

 

 

 

364

 

 

 

—

 

 

 

364

 

 

 

—

 

Federal funds sold and securities purchased under reverse repurchase agreements

 

 

4,850

 

 

 

4,850

 

 

 

—

 

 

 

4,850

 

 

 

—

 

Federal Home Loan Bank stock

 

 

1,779

 

 

 

1,779

 

 

 

—

 

 

 

—

 

 

 

1,779

 

Loans, net of allowance for credit losses

 

 

849,753

 

 

 

805,669

 

 

 

—

 

 

 

—

 

 

 

805,669

 

Other assets - interest rate caps

 

 

1,481

 

 

 

1,481

 

 

 

—

 

 

 

1,481

 

 

 

—

 

Other assets - interest rate floors

 

 

78

 

 

 

78

 

 

 

—

 

 

 

78

 

 

 

—

 

Other assets - customer-related interest rate swaps

 

 

89

 

 

 

89

 

 

 

—

 

 

 

89

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

997,956

 

 

 

929,361

 

 

 

—

 

 

 

929,361

 

 

 

—

 

Short-term borrowings

 

 

25,000

 

 

 

25,000

 

 

 

—

 

 

 

25,000

 

 

 

—

 

Long-term borrowings

 

 

10,982

 

 

 

10,432

 

 

 

—

 

 

 

10,432

 

 

 

—

 

Other liabilities - customer-related interest rate swaps

 

 

89

 

 

 

89

 

 

 

—

 

 

 

89

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

36

 

 

 

36

 

 

 

—

 

 

 

36

 

 

 

—

 

 

 

 

December 31, 2025

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

73,547

 

 

$

73,547

 

 

$

73,547

 

 

$

—

 

 

$

—

 

Investment securities available-for-sale

 

 

168,075

 

 

 

168,075

 

 

 

19,434

 

 

 

148,641

 

 

 

—

 

Investment securities held-to-maturity

 

 

465

 

 

 

449

 

 

 

—

 

 

 

449

 

 

 

—

 

Federal funds sold

 

 

4,850

 

 

 

4,850

 

 

 

—

 

 

 

4,850

 

 

 

—

 

Federal Home Loan Bank stock

 

 

791

 

 

 

791

 

 

 

—

 

 

 

—

 

 

 

791

 

Loans, net of allowance for credit losses

 

 

842,314

 

 

 

817,766

 

 

 

—

 

 

 

—

 

 

 

817,766

 

Other assets - interest rate caps

 

 

795

 

 

 

795

 

 

 

—

 

 

 

795

 

 

 

—

 

Other assets - interest rate floors

 

 

166

 

 

 

166

 

 

 

—

 

 

 

166

 

 

 

—

 

Other assets - customer-related interest rate swaps

 

 

106

 

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,027,962

 

 

 

973,141

 

 

 

—

 

 

 

973,141

 

 

 

—

 

Long-term borrowings

 

 

10,945

 

 

 

10,126

 

 

 

 

 

 

10,126

 

 

 

—

 

Other liabilities - customer-related interest rate swaps

 

 

106

 

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Other liabilities - credit risk participation agreements

 

 

46

 

 

 

46

 

 

 

—

 

 

 

46

 

 

 

—