DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2025

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

13. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third-party valuations that use the best available data (Level 2) and an estimation methodology (Level 3), which the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturities, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements.

The estimated fair values based on US GAAP measurements and recorded carrying values at December 31, 2025 and 2024 for the remaining financial instruments not required to be reported at fair value were as follows:

	AT DECEMBER 31, 2025
	CARRYING
	VALUE			FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
		(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM	$	72,256	$	68,916	$	—	$	67,936	$	980
Loans held for sale		241		244		244		—		—
Loans, net of allowance for credit losses and unearned income		1,019,599		1,010,336		—		—		1,010,336
FINANCIAL LIABILITIES:
Deposits with stated maturities		377,747		377,938		—		—		377,938
All other borrowings (1)		71,382		71,382		—		—		71,382

	AT DECEMBER 31, 2024
	CARRYING
	VALUE			FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
		(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM	$	63,837	$	58,471	$	—	$	57,535	$	936
Loans held for sale		460		470		470		—		—
Loans, net of allowance for credit losses and unearned income		1,054,037		990,745		—		—		990,745
FINANCIAL LIABILITIES:
Deposits with stated maturities		336,312		336,167		—		—		336,167
All other borrowings (1)		82,784		81,476		—		—		81,476

(1) All other borrowings include advances from Federal Home Loan Bank and subordinated debt.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.