FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2025

FAIR VALUE MEASUREMENTS

Schedule of securities measured at fair value on a recurring basis

(Dollars in thousands)
September 30, 2025	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,465	$	—	$	—	$	7,465
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		178,953		—		178,953
Other		—		3,573		—		3,573
Other mortgage backed debt securities		—		38,173		—		38,173
Obligations of state and political subdivisions		—		75,519		—		75,519
Asset-backed securities		—		65,986		—		65,986
Corporate debt securities		—		38,101		—		38,101
Total debt securities available-for-sale		7,465		400,305		—		407,770
Marketable equity securities		1,715		—		—		1,715
Total recurring fair value measurements	$	9,180	$	400,305	$	—	$	409,485

(Dollars in thousands)
December 31, 2024	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,151	$	—	$	—	$	7,151
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		136,708		—		136,708
Other		—		5,122		—		5,122
Other mortgage backed debt securities		—		46,273		—		46,273
Obligations of state and political subdivisions		—		83,485		—		83,485
Asset-backed securities		—		73,867		—		73,867
Corporate debt securities		—		37,682		—		37,682
Total debt securities available-for-sale		7,151		383,137		—		390,288
Marketable equity securities		1,587		—		—		1,587
Total recurring fair value measurements	$	8,738	$	383,137	$	—	$	391,875

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, 2025
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,603	$	1,603
Total individually evaluated loans	$	—	$	—	$	1,603	$	1,603

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2024
Individually evaluated loans:
Real Estate	$	—	$	—	$	1,603	$	1,603
Total individually evaluated loans	$	—	$	—	$	1,603	$	1,603

Schedule of fair value measurement inputs and valuation techniques

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2025	Estimate		Valuation Technique	Unobservable Input	Discount Range	Weighted Average Discount
Individually evaluated loans - collateral dependent	$	1,603	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(15%) – (15%)	(15%)
December 31, 2024
Individually evaluated loans - collateral dependent	$	1,603	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/discounted 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/discounted 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, 2025
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	13,016	$	13,016	$	—	$	—	$	13,016
Interest-bearing deposits in other banks		134,239		—		134,239		—		134,239
Restricted investment in bank stocks		8,944		—		8,944		—		8,944
Net loans		949,733		—		—		955,958		955,958
Mortgage servicing rights		199		—		—		199		199
Accrued interest receivable		5,075		—		5,075		—		5,075
FINANCIAL LIABILITIES:
Demand, savings and other deposits		677,320		—		677,320		—		677,320
Time deposits		515,174		—		514,494		—		514,494
Short-term borrowings		132,856		—		134,139		—		134,139
Long-term borrowings		106,000		—		107,367		—		107,367
Subordinated debentures		25,000		—		21,629		—		21,629
Accrued interest payable		3,175		—		3,175		—		3,175
Derivative liabilities		4,409		—		4,409		—		4,409

(Dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2024
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	9,933	$	9,933	$	—	$	—	$	9,933
Interest-bearing deposits in other banks		7,321		—		7,321		—		7,321
Restricted investment in bank stocks		8,984		—		8,984		—		8,984
Net loans		940,779		—		—		929,302		929,302
Mortgage servicing rights		218		—		—		218		218
Accrued interest receivable		4,993		—		4,993		—		4,993
FINANCIAL LIABILITIES:
Demand, savings and other deposits		677,762		—		677,762		—		677,762
Time deposits		368,118		—		366,772		—		366,772
Short-term borrowings		134,426		—		134,541		—		134,541
Long-term borrowings		106,000		—		107,728		—		107,728
Subordinated debentures		25,000		—		20,618		—		20,618
Accrued interest payable		2,152		—		2,152		—		2,152
Derivative liabilities		1,463		—		1,463		—		1,463