FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENTS

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

(Dollars in thousands)

 

June 30, 2026

ASSETS

Level 1

 

Level 2

 

Level 3

 

Total

Debt Securities Available-for-Sale:

U.S. Treasury securities

$

7,548

$

—

$

—

$

7,548

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

Mortgage-backed

—

167,557

—

167,557

Other

—

2,467

—

2,467

Other mortgage backed debt securities

—

31,980

—

31,980

Obligations of state and political subdivisions

—

72,656

—

72,656

Asset-backed securities

—

57,358

—

57,358

Corporate debt securities

—

29,518

—

29,518

Total debt securities available-for-sale

$

7,548

$

361,536

$

—

$

369,084

Marketable equity securities

$

2,358

$

—

$

—

$

2,358

LIABILITIES

Level 1

 

Level 2

 

Level 3

 

Total

Derivatives

$

—

$

(715)

$

—

$

(715)


(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:
Mortgage-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)

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, 2026

Individually evaluated loans:

Real Estate

$

—

$

—

$

12,715

$

12,715

Total individually evaluated loans

$

—

$

—

$

12,715

$

12,715


(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

Schedule of fair value measurement inputs and valuation techniques


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

June 30, 2026		Estimate			Valuation Technique		Unobservable Input		Discount Range		Weighted Average Discount
Individually evaluated loans - collateral dependent		$	12,715		Appraisal of collateral^1,3 Certificate of Inspection^1,3		Appraisal adjustments² Qualitative Adjustments⁴		(5%) – (36%)		(13%)

December 31, 2025
Individually evaluated loans - collateral dependent		$	12,786		Appraisal of collateral^1,3 Certificate of Inspection^1,3		Appraisal adjustments² Qualitative Adjustments⁴		(0%) – (48%)		(18%)

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, 2026

 

Amount

 

Level 1

 

Level 2

 

Level 3

 

Total

FINANCIAL ASSETS:

Cash and due from banks

$

9,004

$

9,004

$

—

$

—

$

9,004

Interest-bearing deposits in other banks

178,957

—

178,957

—

178,957

Restricted investment in bank stocks

8,979

—

8,979

—

8,979

Net loans

941,552

—

—

940,887

940,887

Mortgage servicing rights

177

—

—

177

177

Accrued interest receivable

4,664

—

4,664

—

4,664

FINANCIAL LIABILITIES:

Demand, savings and other deposits

685,458

—

685,458

—

685,458

Time deposits

494,452

—

492,590

—

492,590

Short-term borrowings

135,604

—

135,990

—

135,990

Long-term borrowings

106,000

—

106,424

—

106,424

Subordinated debentures

25,000

—

21,567

—

21,567

Accrued interest payable

2,517

—

2,517

—

2,517


(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