FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 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
June 30, 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	$	—	$	14,224	$	—	$	14,224
Obligations of state and political subdivisions		—		5,888		—		5,888
Corporate debt securities		—		8,097		6,543		14,640
Mortgage-backed securities		—		30,517		—		30,517
Total debt securities available for sale	$	—	$	58,726	$	6,543	$	65,269
Equity securities	$	1,070	$	—	$	—	$	1,070
Mortgage servicing rights	$	—	$	—	$	79	$	79

	(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 and six month periods ended June 30, 2024 and 2023.

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2024		2023		2024		2023
Investment Securities:
Beginning balance	$	6,494	$	6,649	$	6,153	$	7,145
Total gain (loss) included in OCI		49		(741)		390		(1,237)
Purchases		—		—		—		—
Principal payments and other		—		—		—		—
Sales		—		—		—		—
Balance, end of period	$	6,543	$	5,908	$	6,543	$	5,908

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)	June 30, 2024				December 31, 2023
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	5,834	$	5,834	$	17,189	$	17,189
Interest bearing deposits with banks		5,105		5,105		11,741		11,741
Debt securities available for sale		65,269		65,269		67,564		67,564
Debt securities held to maturity		196,311		189,232		200,644		198,147
Loans, net of allowance for credit losses		535,514		515,700		519,717		500,439
Accrued interest receivable		2,574		2,574		2,438		2,438
Financial liabilities:
Time deposits	$	204,580	$	201,239	$	197,387	$	194,219
Securities sold under agreements to repurchase		14,390		N/A		12,810		N/A
Short-term borrowings		47,000		46,393		40,000		39,868
Long-term debt		5,000		5,000		20,000		19,638
Other interest bearing liabilities		892		890		951		947
Accrued interest payable		1,524		1,524		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 June 30, 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
June 30, 2024
Financial instruments – Assets
Debt securities held to maturity	$	196,311	$	189,232	$	—	$	189,232	$	—
Loans, net of allowance for credit losses		535,514		515,700		—		—		515,700
Financial instruments – Liabilities
Time deposits	$	204,580	$	201,239	$	—	$	201,239	$	—
Short-term borrowings		47,000		46,393		—		46,393		—
Long-term debt		5,000		5,000		—		5,000		—
Other interest bearing liabilities		892		890		—		890		—

					(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		—