FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENTS

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

(Dollars in thousands)
June 30, 2026
ASSETS		Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,548	$	—	$	—	$	7,548
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgage-backed		—		167,557		—		167,557
Other		—		2,467		—		2,467
Other mortgage backed debt securities		—		31,980		—		31,980
Obligations of state and political subdivisions		—		72,656		—		72,656
Asset-backed securities		—		57,358		—		57,358
Corporate debt securities		—		29,518		—		29,518
Total debt securities available-for-sale	$	7,548	$	361,536	$	—	$	369,084
Marketable equity securities	$	2,358	$	—	$	—	$	2,358
LIABILITIES		Level 1		Level 2		Level 3		Total
Derivatives	$	—	$	(715)	$	—	$	(715)

(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:
Mortgage-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)

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, 2026
Individually evaluated loans:
Real Estate	$	—	$	—	$	12,715	$	12,715
Total individually evaluated loans	$	—	$	—	$	12,715	$	12,715

(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

Schedule of fair value measurement inputs and valuation techniques

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2026	Estimate		Valuation Technique	Unobservable Input	Discount Range	Weighted Average Discount
Individually evaluated loans - collateral dependent	$	12,715	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(5%) – (36%)	(13%)
December 31, 2025
Individually evaluated loans - collateral dependent	$	12,786	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(0%) – (48%)	(18%)

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 June 30, 2026
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	9,004	$	9,004	$	—	$	—	$	9,004
Interest-bearing deposits in other banks		178,957		—		178,957		—		178,957
Restricted investment in bank stocks		8,979		—		8,979		—		8,979
Net loans		941,552		—		—		940,887		940,887
Mortgage servicing rights		177		—		—		177		177
Accrued interest receivable		4,664		—		4,664		—		4,664
FINANCIAL LIABILITIES:
Demand, savings and other deposits		685,458		—		685,458		—		685,458
Time deposits		494,452		—		492,590		—		492,590
Short-term borrowings		135,604		—		135,990		—		135,990
Long-term borrowings		106,000		—		106,424		—		106,424
Subordinated debentures		25,000		—		21,567		—		21,567
Accrued interest payable		2,517		—		2,517		—		2,517

(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