FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS

Schedule of securities measured at fair value on a recurring basis

(Dollars in thousands)
June 30, 2024	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,003	$	—	$	—	$	7,003
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		142,375		—		142,375
Other		—		6,003		—		6,003
Other mortgage backed debt securities		—		48,628		—		48,628
Obligations of state and political subdivisions		—		84,641		—		84,641
Asset-backed securities		—		85,071		—		85,071
Corporate debt securities		—		29,868		—		29,868
Total debt securities available-for-sale		7,003		396,586		—		403,589
Marketable equity securities		1,288		—		—		1,288
Total recurring fair value measurements	$	8,291	$	396,586	$	—	$	404,877

(Dollars in thousands)
December 31, 2023	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,041	$	—	$	—	$	7,041
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		137,992		—		137,992
Other		—		7,632		—		7,632
Other mortgage backed debt securities		—		34,050		—		34,050
Obligations of state and political subdivisions		—		87,703		—		87,703
Asset-backed securities		—		82,162		—		82,162
Corporate debt securities		—		36,388		—		36,388
Total debt securities available-for-sale		7,041		385,927		—		392,968
Marketable equity securities		1,482		—		—		1,482
Total recurring fair value measurements	$	8,523	$	385,927	$	—	$	394,450

Schedule of individually evaluated loans measured at fair value on a nonrecurring basis

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at June 30, 2024
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,953	$	1,953
Total individually evaluated loans	$	—	$	—	$	1,953	$	1,953

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2023
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,990	$	1,990
Total individually evaluated loans	$	—	$	—	$	1,990	$	1,990

Schedule of fair value measurement inputs and valuation techniques

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2024	Estimate		Valuation Technique	Unobservable Input	Range	Average
Individually evaluated loans - collateral dependent	$	1,953	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(5%) – (5%)	(5%)
December 31, 2023
Individually evaluated loans - collateral dependent	$	1,990	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(5%) – (5%)	(5%)

1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators.

2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

3. Includes qualitative adjustments by management and estimated liquidation expenses.

4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses.

Schedule of fair value of financial instruments, including financial assets and financial liabilities

(Dollars in thousands)	Carrying		Fair Value Measurements at June 30, 2024
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	14,292	$	14,292	$	—	$	—	$	14,292
Interest-bearing deposits in other banks		1,979		—		1,979		—		1,979
Restricted investment in bank stocks		11,493		—		11,493		—		11,493
Net loans		914,807		—		—		891,098		891,098
Mortgage servicing rights		241		—		—		241		241
Accrued interest receivable		5,328		—		5,328		—		5,328
FINANCIAL LIABILITIES:
Demand, savings and other deposits		671,430		—		671,430		—		671,430
Time deposits		312,779		—		310,426		—		310,426
Short-term borrowings		175,311		—		175,555		—		175,555
Long-term borrowings		122,000		—		123,244		—		123,244
Subordinated debentures		25,000		—		20,378		—		20,378
Accrued interest payable		3,698		—		3,698		—		3,698
Derivative Liabilities		741		—		741		—		741

(Dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2023
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	9,462	$	9,462	$	—	$	—	$	9,462
Interest-bearing deposits in other banks		7,551		—		7,551		—		7,551
Restricted investment in bank stocks		10,885		—		10,885		—		10,885
Net loans		904,153		—		—		885,840		885,840
Mortgage servicing rights		265		—		—		265		265
Accrued interest receivable		5,201		—		5,201		—		5,201
FINANCIAL LIABILITIES:
Demand, savings and other deposits		686,321		—		686,321		—		686,321
Time deposits		294,118		—		292,073		—		292,073
Short-term borrowings		153,468		—		153,509		—		153,509
Long-term borrowings		122,000		—		125,343		—		125,343
Subordinated debentures		25,000		—		22,762		—		22,762
Accrued interest payable		2,823		—		2,823		—		2,823
Derivative Liabilities		4,501		—		4,501		—		4,501