FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

FAIR VALUE MEASUREMENTS

Schedule of securities measured at fair value on a recurring basis

(Dollars in thousands)
September 30, 2024	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,271	$	—	$	—	$	7,271
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		143,346		—		143,346
Other		—		5,576		—		5,576
Other mortgage backed debt securities		—		47,368		—		47,368
Obligations of state and political subdivisions		—		86,746		—		86,746
Asset-backed securities		—		77,178		—		77,178
Corporate debt securities		—		37,596		—		37,596
Total debt securities available-for-sale		7,271		397,810		—		405,081
Marketable equity securities		1,434		—		—		1,434
Total recurring fair value measurements	$	8,705	$	397,810	$	—	$	406,515

(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 September 30, 2024
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,953	$	1,953
Commercial and Industrial		—		—		107		107
Total individually evaluated loans	$	—	$	—	$	2,060	$	2,060

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2023
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,990	$	1,990
Commercial and Industrial		—		—		—		—
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
September 30, 2024	Estimate		Valuation Technique	Unobservable Input	Range	Average
Individually evaluated loans - collateral dependent	$	2,060	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(5%) – (43%)	(7%)
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 September 30, 2024
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	13,937	$	13,937	$	—	$	—	$	13,937
Interest-bearing deposits in other banks		10,087		—		10,087		—		10,087
Restricted investment in bank stocks		10,765		—		10,765		—		10,765
Net loans		926,942		—		—		925,914		925,914
Mortgage servicing rights		231		—		—		231		231
Accrued interest receivable		5,259		—		5,259		—		5,259
Derivative Assets		567		—		567		—		567
FINANCIAL LIABILITIES:
Demand, savings and other deposits		687,610		—		687,610		—		687,610
Time deposits		332,299		—		331,464		—		331,464
Short-term borrowings		167,475		—		167,749		—		167,749
Long-term borrowings		102,000		—		105,927		—		105,927
Subordinated debentures		25,000		—		21,348		—		21,348
Accrued interest payable		2,590		—		2,590		—		2,590
Derivative Liabilities		5,781		—		5,781		—		5,781

(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