FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

FAIR VALUE MEASUREMENTS

Schedule of securities and derivatives measured at fair value on a recurring basis

At December 31, 2025 and 2024, securities and derivatives measured at fair value on a recurring basis and the valuation methods used are as follows:

(Dollars in thousands)
December 31, 2025
ASSETS		Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,536	$	—	$	—	$	7,536
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		176,251		—		176,251
Other		—		3,294		—		3,294
Other mortgage backed debt securities		—		36,431		—		36,431
Obligations of state and political subdivisions		—		74,925		—		74,925
Asset-backed securities		—		63,493		—		63,493
Corporate debt securities		—		32,296		—		32,296
Total debt securities available-for-sale	$	7,536	$	386,690	$	—	$	394,226
Marketable equity securities	$	1,810	$	—	$	—	$	1,810
LIABILITIES		Level 1		Level 2		Level 3		Total
Derivatives	$	—	$	(3,859)	$	—	$	(3,859)

(Dollars in thousands)
December 31, 2024
ASSETS	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
LIABILITIES		Level 1		Level 2		Level 3		Total
Derivatives	$	—	$	(1,463)	$	—	$	(1,463)

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 December 31, 2025
Individually evaluated loans:
Real Estate	$	—	$	—	$	12,776	$	12,776
Commercial and Industrial		—		—		10		10
Total individually evaluated loans	$	—	$	—	$	12,786	$	12,786

(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
December 31, 2025	Estimate		Valuation Technique	Unobservable Input	Discount Range	Weighted Average Discount
Individually evaluated loans - collateral dependent	$	12,786	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(0%) – (48%)	(18%)
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 December 31, 2025
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	8,755	$	8,755	$	—	$	—	$	8,755
Interest-bearing deposits in other banks		112,494		—		112,494		—		112,494
Restricted investment in bank stocks		8,944		—		8,944		—		8,944
Net loans		939,013		—		—		945,462		945,462
Mortgage servicing rights		196		—		—		196		196
Accrued interest receivable		4,997		—		4,997		—		4,997
FINANCIAL LIABILITIES:
Demand, savings and other deposits		633,448		—		633,448		—		633,448
Time deposits		503,988		—		503,245		—		503,245
Short-term borrowings		136,845		—		137,887		—		137,887
Long-term borrowings		106,000		—		107,124		—		107,124
Subordinated debentures		25,000		—		21,706		—		21,706
Accrued interest payable		2,735		—		2,735		—		2,735

(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