FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Carrying Amount, Estimated Fair Values, and Placement in Fair Value Hierarchy

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments are as follows:


	Carrying		Estimated		Level
(dollars in thousands)	Amount		Fair Value		1		2		3
December 31, 2025
Assets
Cash and short-term investments	$	257,640	$	257,640	$	257,640	$	—	$	—
Investment securities available for sale	383,817		383,817		—		377,302		6,515
Investment securities held to maturity	386,618		354,290		—		354,290		—
Other investments	19,176		19,176		—		19,176		—
Loans held for sale	78,990		78,990		—		78,990		—
Loans, net	2,358,210		2,274,712		—		—		2,274,712
Derivative assets	—		—		—		—		—

Liabilities
Deposits	3,067,521		3,065,312		—		3,065,312		—
Federal Home Loan Bank advances	194,972		193,998		—		193,998		—
Other borrowed money	63,132		55,692		—		55,692		—
Derivative liabilities	636		636		—		636		—

December 31, 2024
Assets
Cash and short-term investments	$	231,034	$	231,034	$	231,034	$	—	$	—
Investment securities available for sale	366,049		366,049		—		357,128		8,921
Investment securities held to maturity	430,077		383,020				383,020		—
Other investments	17,694		17,694		—		17,694		—
Loans held for sale	39,786		39,786		—		39,786		—
Loans, net	1,824,000		1,703,487		—		—		1,703,487
Derivative assets	784		784		—		784		—

Liabilities
Deposits	2,567,943		2,564,143		—		2,564,143		—
Federal Home Loan Bank advances	185,000		186,468		—		186,468		—

Other borrowed money	63,039		52,057		—		52,057		—
Derivative liabilities	47		47		—		47		—

Schedule of Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis

The following tables present the recorded amount of the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of December 31, 2025 and 2024, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent loans and other real estate properties at December 31, 2025 and 2024. Those collateral dependent loans and other real estate properties are shown net of the related specific reserves and valuation allowances.


			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2025
Recurring
Investment securities available-for-sale
U.S. treasury securities	$	5,582	$	—	$	5,582	$	—
U.S. agency securities	3,196		—		3,196		—
Asset backed securities	14,483		—		14,483		—
State, county & municipal securities	107,230		—		107,230		—
Corporate debt securities	48,807		—		42,292		6,515
Mortgage-backed securities	204,519		—		204,519		—
Total investment securities available-for-sale	383,817		—		377,302		6,515
Loans held for sale	78,990		—		78,990		—
Derivative assets	—		—		—		—
Total recurring assets	$	462,807	$	—	$	456,292	$	6,515

Derivative liabilities	$	636	$	—	$	636	$	—
Total recurring liabilities	$	636	$	—	$	636	$	—

Nonrecurring
Collateral dependent loans	$	7,194	$	—	$	—	$	7,194
Other real estate owned	1,048		—		—		1,048
Total nonrecurring assets	$	8,242	$	—	$	—	$	8,242


			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2024
Recurring
Investment securities available-for-sale
U.S. treasury securities	$	3,173	$	—	$	3,173	$	—
U.S. agency securities	2,755		—		2,755		—
Asset backed securities	17,824		—		17,824		—
State, county & municipal securities	95,637		—		95,637		—
Corporate debt securities	47,782		—		41,234		6,548
Mortgage-backed securities	198,878		—		196,505		2,373
Total investment securities available-for-sale	366,049		—		357,128		8,921
Loans held for sale	39,786		—		39,786		—
Derivative assets	784		—		784		—
Total recurring assets	$	406,619	$	—	$	397,698	$	8,921

Derivative liabilities	$	47	$	—	$	47	$	—
Total recurring liabilities	$	47	$	—	$	47	$	—

Nonrecurring
Collateral dependent loans	$	3,075	$	—	$	—	$	3,075
Other real estate owned	202		—		—		202
Total nonrecurring assets	$	3,277	$	—	$	—	$	3,277

Schedule of Quantitative Information About Fair Value Measurements for Assets in Level 3

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at December 31, 2025 and 2024. These tables are comprised primarily of collateral dependent impaired loans and other real estate owned:


(dollars in thousands)	December 31, 2025		Valuation Techniques	Unobservable Inputs	Discount rate

Collateral dependent loans	$	7,194	Appraised Value	Discounts to reflect estimated costs to sell	10	%

Other Real Estate	$	1,048	Appraised Value/ Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	10	%


(dollars in thousands)	December 31, 2024		Valuation Techniques	Unobservable Inputs	Discount rate

Collateral dependent loans	$	3,075	Appraised Value	Discounts to reflect estimated costs to sell	10	%

Other Real Estate	$	202	Appraised Value/ Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	10	%

The following tables present quantitative information about recurring level 3 fair value measurements as of December 31, 2025 and 2024.

December 31, 2025

(dollars in thousands)

Fair Value

Valuation
Techniques

Unobservable
Inputs

Range
(Weighted Avg)

Available for sale securities

6,515

Discounted Cash Flow

Discount Rate or Yield

N/A

December 31, 2024

(dollars in thousands)

Fair Value

Valuation
Techniques

Unobservable
Inputs

Range
(Weighted Avg)

Available for sale securities

8,921

Discounted Cash Flow

Discount Rate or Yield

N/A

Schedule of Reconciliation and Statement of Income Classification of Gains and Losses for Assets Measured at Fair Value on Recurring Basis

The following table presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2025 and 2024:


	Available for sale securities
(dollars in thousands)	2025		2024

Beginning balance	$	8,921	$	10,814
Additions	20		2,588
Redemptions	(2,380)		(3,831)
Total unrealized/realized gains (losses) included in earnings	(46)		1,701

Transfers between levels	—		(2,351)
Ending balance	$	6,515	$	8,921

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details