FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2024

FAIR VALUE MEASUREMENT

Fair Value Measurements by Level of Valuation Inputs

The following tables summarize financial assets and financial liabilities measured at fair value as of March 31, 2024 and December 31, 2023 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no assets measured at fair value on a non-recurring basis as of March 31, 2024 or December 31, 2023.

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
March 31, 2024	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	14,127	$	—	$	14,127
Obligations of state and political subdivisions		—		6,462		—		6,462
Corporate debt securities		—		7,922		6,494		14,416
Mortgage-backed securities		—		31,634		—		31,634
Total debt securities available for sale	$	—	$	60,145	$	6,494	$	66,639
Equity securities	$	1,060	$	—	$	—	$	1,060
Mortgage servicing rights	$	—	$	—	$	81	$	81

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
December 31, 2023	Assets		Inputs		Inputs		Total
Assets measured at fair value on a recurring basis:
Debt securities available for sale:
Obligations of U.S. Government agencies and corporations	$	—	$	14,173	$	—	$	14,173
Obligations of state and political subdivisions		—		6,508		—		6,508
Corporate debt securities		—		7,675		6,153		13,828
Mortgage-backed securities		—		33,055		—		33,055
Total debt securities available for sale	$	—	$	61,411	$	6,153	$	67,564
Equity securities	$	1,073	$	—	$	—	$	1,073
Mortgage servicing rights	$	—	$	—	$	83	$	83

Reconciliation of Investment Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2024 and 2023.

	Three Months Ended
(Dollars in thousands)	March 31,
	2024		2023
Investment Securities:
Beginning balance	$	6,153	$	7,145
Total gain (loss) included in OCI		341		(496)
Purchases		—		—
Principal payments and other		—		—
Sales		—		—
Balance, end of period	$	6,494	$	6,649

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows:

	Financial Instruments
(Dollars in thousands)	March 31, 2024				December 31, 2023
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	5,085	$	5,085	$	17,189	$	17,189
Interest bearing deposits with banks		8,352		8,352		11,741		11,741
Debt securities available for sale		66,639		66,639		67,564		67,564
Debt securities held to maturity		198,680		193,182		200,644		198,147
Loans, net of allowance for credit losses		530,924		511,280		519,717		500,439
Accrued interest receivable		2,621		2,621		2,438		2,438
Financial liabilities:
Time deposits	$	198,177	$	194,800	$	197,387	$	194,219
Securities sold under agreements to repurchase		17,214		N/A		12,810		N/A
Short-term borrowings		40,000		39,853		40,000		39,868
Long-term debt		20,000		19,748		20,000		19,638
Other interest bearing liabilities		884		880		951		947
Accrued interest payable		1,809		1,809		1,397		1,397
Off-balance sheet financial instruments:
Commitments to extend credit	$	—	$	—	$	—	$	—
Letters of credit		—		—		—		—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of March 31, 2024 and December 31, 2023. The tables exclude financial instruments for which the carrying amount approximates fair value.

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
March 31, 2024
Financial instruments – Assets
Debt securities held to maturity	$	198,680	$	193,182	$	—	$	193,182	$	—
Loans, net of allowance for credit losses		530,924		511,280		—		—		511,280
Financial instruments – Liabilities
Time deposits	$	198,177	$	194,800	$	—	$	194,800	$	—
Short-term borrowings		40,000		39,853		—		39,853		—
Long-term debt		20,000		19,748		—		19,748		—
Other interest bearing liabilities		884		880		—		880		—

					(Level 1)		(Level 2)		(Level 3)
					Quoted Prices in		Significant		Significant
(Dollars in thousands)					Active Markets		Other		Other
	Carrying				for Identical		Observable		Unobservable
	Amount		Fair Value		Assets or Liabilities		Inputs		Inputs
December 31, 2023
Financial instruments – Assets
Debt securities held to maturity	$	200,644	$	198,147	$	—	$	198,147	$	—
Loans, net of allowance for credit losses		519,717		500,439		—		—		500,439
Financial instruments – Liabilities
Time deposits	$	197,387	$	194,219	$	—	$	194,219	$	—
Short-term borrowings		40,000		39,868		—		39,868		—
Long-term debt		20,000		19,638		—		19,638		—
Other interest bearing liabilities		951		947		—		947		—