ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

The fair value estimates presented at June 30, 2026 and December 31, 2025, are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following tables reflect a comparison of carrying amounts and the estimated fair value of the financial instruments as of June 30, 2026 and December 31, 2025:


June 30, 2026	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	91,712	$	91,712	$	91,712	$	—	$	—
Securities available for sale		359,771		359,771		23,776		335,995		—
Securities held to maturity, net		21,880		20,373		—		10,603		9,770
Equity securities		878		878		878		—		—
Loans held for investment, net		686,245		662,501		—		—		662,501
Loans held for sale		7,820		7,820		—		7,820		—
Loan servicing assets		3,647		7,308		—		7,308		—
Mortgage banking derivatives		883		883		—		108		775
Accrued interest receivable		4,353		4,353		—		—		4,353

FINANCIAL LIABILITIES
Deposits	$	1,099,066		1,098,432		—		1,098,432		—
Short-term borrowings		228		228		—		228		—
Long-term borrowings		30,086		27,697		—		—		27,697
Mortgage banking derivatives		26		26		—		26		—
Accrued interest payable		475		475		—		—		475


December 31, 2025	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	73,329	$	73,329	$	73,329	$	—	$	—
Securities available for sale		357,740		357,740		23,997		333,743		—
Securities held to maturity, net		21,947		20,208		—		10,559		9,649
Equity securities		303		303		303		—		—
Loans held for investment, net		683,142		666,337		—		—		666,337
Loans held for sale		9,019		9,019		—		9,019		—
Loan servicing assets		3,702		7,413		—		7,413		—
Mortgage banking derivatives		883		883		—		38		845
Accrued interest receivable		4,428		4,428		—		—		4,428

FINANCIAL LIABILITIES
Deposits	$	1,080,781	$	1,080,610	$	—	$	1,080,610	$	—
Short-term borrowings		25		25		—		25		—
Long-term borrowings		29,048		27,369		—		—		27,369
Mortgage banking derivatives		58		58		—		58		—
Accrued interest payable		453		453		—		—		453

At June 30, 2026, the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 9 ("Commitments and Contingencies") to the Company’s Notes to Consolidated Financial Statements for more information regarding commitments and contingent liabilities.