FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025 and December 31, 2024 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, 2025 or December 31, 2024.

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
March 31, 2025	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	$	—	$	14,756	$	—	$	14,756
Obligations of state and political subdivisions		—		6,093		—		6,093
Corporate debt securities		—		8,590		7,125		15,715
Mortgage-backed securities		—		28,208		—		28,208
Total debt securities available for sale	$	—	$	57,647	$	7,125	$	64,772
Equity securities	$	1,114	$	—	$	—	$	1,114
Mortgage servicing rights	$	—	$	—	$	68	$	68
Derivatives	$	—	$	103	$	—	$	103
Liabilities measured at fair value on a recurring basis:
Derivatives	$	—	$	132	$	—	$	132

	(Level 1)		(Level 2)		(Level 3)
	Quoted Prices in		Significant		Significant
(Dollars in thousands)	Active Markets		Other		Other
	for Identical		Observable		Unobservable
December 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	$	—	$	14,576	$	—	$	14,576
Obligations of state and political subdivisions		—		6,033		—		6,033
Corporate debt securities		—		8,403		6,955		15,358
Mortgage-backed securities		—		28,656		—		28,656
Total debt securities available for sale	$	—	$	57,668	$	6,955	$	64,623
Equity securities	$	1,189	$	—	$	—	$	1,189
Mortgage servicing rights	$	—	$	—	$	69	$	69
Derivatives	$	—	$	20	$	—	$	20
Liabilities measured at fair value on a recurring basis:
Derivatives	$	—	$	44	$	—	$	44

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, 2025 and 2024.

	Three Months Ended
(Dollars in thousands)	March 31,
	2025		2024
Investment Securities:
Beginning balance	$	6,955	$	6,153
Total gain (loss) included in OCI		170		341
Purchases		—		—
Principal payments and other		—		—
Sales		—		—
Balance, end of period	$	7,125	$	6,494

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, 2025				December 31, 2024
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and due from banks	$	5,145	$	5,145	$	5,064	$	5,064
Interest bearing deposits with banks		8,364		8,364		5,934		5,934
Debt securities available for sale		64,772		64,772		64,623		64,623
Debt securities held to maturity		189,634		184,898		191,627		182,773
Loans, net of allowance for credit losses		532,693		516,712		527,686		511,826
Derivatives		103		103		20		20
Accrued interest receivable		2,412		2,412		2,251		2,251
Financial liabilities:
Time deposits	$	217,262	$	216,097	$	213,352	$	212,152
Securities sold under agreements to repurchase		16,282		N/A		14,342		N/A
Short-term borrowings		27,800		27,800		27,900		27,900
Long-term debt		5,000		5,001		5,000		5,000
Derivatives		132		132		44		44
Other interest bearing liabilities		769		769		830		829
Accrued interest payable		883		883		876		876
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, 2025 and December 31, 2024. 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, 2025
Financial instruments – Assets
Debt securities held to maturity	$	189,634	$	184,898	$	—	$	184,898	$	—
Loans, net of allowance for credit losses		532,693		516,712		—		—		516,712
Financial instruments – Liabilities
Time deposits	$	217,262	$	216,097	$	—	$	216,097	$	—
Short-term borrowings		27,800		27,800		—		27,800		—
Long-term debt		5,000		5,001		—		5,001		—
Other interest bearing liabilities		769		769		—		769		—

					(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, 2024
Financial instruments – Assets
Debt securities held to maturity	$	191,627	$	182,773	$	—	$	182,773	$	—
Loans, net of allowance for credit losses		527,686		511,826		—		—		511,826
Financial instruments – Liabilities
Time deposits	$	213,352	$	212,152	$	—	$	212,152	$	—
Short-term borrowings		27,900		27,900		—		27,900		—
Long-term debt		5,000		5,000		—		5,000		—
Other interest bearing liabilities		830		829		—		829		—