| Carrying Amount and Estimated Fair Value of Financial Instruments not Recorded at Fair Value |
The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (dollars in thousands) | Carrying
Value | | Estimated
Fair Value | | Level 1 | | Level 2 | | Level 3 | | ASSETS | | | | | | | | | | | Cash and cash equivalents | $ | 41,774 | | | $ | 41,774 | | | $ | 41,774 | | | $ | — | | | $ | — | | | Mortgage loans HFS | 410 | | | 420 | | | — | | | 420 | | | — | | | Loans, net | 1,575,193 | | | 1,549,164 | | | — | | | — | | | 1,549,164 | | FHLB stock (1) | 5,600 | | | N/A | | — | | | — | | | — | | | Accrued interest receivable | 7,618 | | | 7,618 | | | 7,618 | | | — | | | — | | Equity securities without readily determinable fair values (1) | 3,086 | | | N/A | | — | | | — | | | — | | | LIABILITIES | | | | | | | | | | | Deposits without stated maturities | 1,420,512 | | | 1,420,512 | | | 1,420,512 | | | — | | | — | | | Deposits with stated maturities | 389,401 | | | 387,273 | | | — | | | 387,273 | | | — | | | Short-term borrowings | 116,012 | | | 112,804 | | | — | | | 112,804 | | | — | | | FHLB advances | — | | | — | | | — | | | — | | | — | | Subordinated debt, net of unamortized issuance costs | 29,559 | | | 29,203 | | | — | | | 29,203 | | | — | | | Accrued interest payable | 806 | | | 806 | | | 806 | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (dollars in thousands) | Carrying
Value | | Estimated
Fair Value | | Level 1 | | Level 2 | | Level 3 | | ASSETS | | | | | | | | | | | Cash and cash equivalents | $ | 26,041 | | | $ | 26,041 | | | $ | 26,041 | | | $ | — | | | $ | — | | | Mortgage loans HFS | 423 | | | 429 | | | — | | | 429 | | | — | | | Loans, net | 1,522,637 | | | 1,488,282 | | | — | | | — | | | 1,488,282 | | FHLB stock (1) | 5,600 | | | N/A | | — | | | — | | | — | | | Accrued interest receivable | 8,397 | | | 8,397 | | | 8,397 | | | — | | | — | | Equity securities without readily determinable fair values (1) | 3,086 | | | N/A | | — | | | — | | | — | | | LIABILITIES | | | | | | | | | | | Deposits without stated maturities | 1,409,589 | | | 1,409,589 | | | 1,409,589 | | | — | | | — | | | Deposits with stated maturities | 410,065 | | | 409,191 | | | — | | | 409,191 | | | — | | | Short-term borrowings | 68,000 | | | 66,355 | | | — | | | 66,355 | | | — | | | FHLB advances | 45,000 | | | 45,004 | | | — | | | 45,004 | | | — | | Subordinated debt, net of unamortized issuance costs | 29,514 | | | 29,095 | | | — | | | 29,095 | | | — | | | Accrued interest payable | 1,059 | | | 1,059 | | | 1,059 | | | — | | | — | |
(1) Due to the characteristics of FHLB stock and equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment.
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| Assets and Liabilities Measured at Fair Value |
The table below presents the recorded amount of assets and liabilities measured at fair value on the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (dollars in thousands) | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Recurring items | | | | | | | | | | | | | | | | | AFS securities | | | | | | | | | | | | | | | | | U.S. Treasury | $ | 99,160 | | | $ | — | | | $ | 99,160 | | | $ | — | | | $ | 197,534 | | | $ | — | | | $ | 197,534 | | | $ | — | | | States and political subdivisions | 61,156 | | | — | | | 61,156 | | | — | | | 69,205 | | | — | | | 69,205 | | | — | | | Auction rate money market preferred | 2,419 | | | — | | | 2,419 | | | — | | | 2,413 | | | — | | | 2,413 | | | — | | | Agency mortgage-backed securities | 19,527 | | | — | | | 19,527 | | | — | | | 22,252 | | | — | | | 22,252 | | | — | | | Agency collateralized mortgage obligations | 25,801 | | | — | | | 25,801 | | | — | | | 28,794 | | | — | | | 28,794 | | | — | | | Agency commercial mortgage-backed securities | 225,115 | | | — | | | 225,115 | | | — | | | 171,672 | | | — | | | 171,672 | | | — | | | Corporate | 6,111 | | | — | | | 6,111 | | | — | | | 5,921 | | | — | | | 5,921 | | | — | | | Total AFS securities | 439,289 | | | — | | | 439,289 | | | — | | | 497,791 | | | — | | | 497,791 | | | — | | | Nonrecurring items | | | | | | | | | | | | | | | | | Collateral dependent loans (net of ACL) | 7,361 | | | — | | | — | | | 7,361 | | | 4,319 | | | — | | | — | | | 4,319 | | | OMSR | 2,239 | | | — | | | — | | | 2,239 | | | 2,090 | | | — | | | — | | | 2,090 | | | Foreclosed assets | 620 | | | — | | | — | | | 620 | | | 938 | | | — | | | — | | | 938 | | | Total | $ | 449,509 | | | $ | — | | | $ | 439,289 | | | $ | 10,220 | | | $ | 505,138 | | | $ | — | | | $ | 497,791 | | | $ | 7,347 | | | Percent of assets and liabilities measured at fair value | | | 0.00 | % | | 97.73 | % | | 2.27 | % | | | | 0.00 | % | | 98.55 | % | | 1.45 | % |
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