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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]  
Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets reported on the consolidated balance sheet at their fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands) by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

2024
  
Level I
    
Level II
    
Level III
    
Total
  
Fair value measurements on a recurring basis:
                        
Assets
                        
Equity securities
  
$
1,747
    
$
-
    
$
-
    
$
1,747
  
Available for sale securities:
                                
U.S. Agency securities
    
-
      
53,487
       -
      
53,487
  
U.S. Treasuries securities
    
120,502
      
-
       -      
120,502
  
Obligations of state and political subdivisions
    
-
      
94,902
      
-
      
94,902
  
Corporate obligations
    
-
      
10,438
       -
      
10,438
  
Mortgage-backed securities in government sponsored entities
    
-
      
146,583
      
-
      
146,583
  
Other Assets
                                
Derivative instruments
   
-
      
10,053
      
317
      
10,370
  
Liabilities
                                
Derivative instruments
    
-
      
(5,817
)
    
-
      
(5,817
)

2023
  
Level I
    
Level II
    
Level III
    
Total
  
Fair value measurements on a recurring basis:
                        
Assets
                        
Equity securities
  
$
1,938
    
$
-
    
$
-
    
$
1,938
  
Available for sale securities:
                                
U.S. Agency securities
    
-
      
60,771
       -
      
60,771
  
U.S. Treasuries securities
    
143,288
      
-
      
-
      
143,288
  
Obligations of state and political subdivisions
    
-
      
101,787
      
-
      
101,787
  
Corporate obligations
     -
      
12,403
       -
      
12,403
  
Mortgage-backed securities in government sponsored entities
    
-
      
99,352
      
-
      
99,352
  
Other Assets
                               
Derivative instruments
     -       13,363       324       13,687  
Liabilities
                               
Derivative instruments
     -       (7,922 )     -       (7,922 )
Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables represent assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 31, 2024 and 2023:



 
  
Level 3
  
 
  
IRLC -
Asset
    
IRLC -
Liability
  
Beginning Balance: December 31, 2023
  
$
324
    
$
-
  
Total  gains (losses) (unrealized):
                
    Included in other comprehensive loss
    
-
      
-
  
Total (loss) gains included in earnings and held at reporting date
    
(7
)
    
-
  
Purchases, sales and settlements
    
-
      
-
  
Transfers out of Level 3
    
-
      
-
  
Ending Balance December 31, 2023
  
$
317
    
$
-
  
Change in unrealized (losses) gains for the period included in earnings (or changes in net assets) for assets held as of December 31, 2024
  
$
(7
)
    
-
  
Change in unrealized losses for the period included in other comprehensive loss for assets held as of December 31, 2024
  
$
-
      
-
  


   
Level 3
  
   
IRLC -
Asset
    
IRLC -
Liability
  
Beginning Balance: June 16, 2023
  
$
657
    
$
-
  
Total gains (losses) (unrealized):
                
    Included in other comprehensive loss
    
-
      
-
  
Total (loss) gains included in earnings and held at reporting date
    
(333
)
    
-
  
Purchases, sales and settlements
    
-
      
-
  
Transfers out of Level 3
    
-
      
-
  
Ending Balance December 31, 2023
  
$
324
    
$
-
  
Change in unrealized (losses) gains for the period included in earnings (or changes in net assets) for assets held as of December 31, 2023
  
$
(333
)
    
-
  
Change in unrealized losses for the period included in other comprehensive loss for assets held as of December 31, 2023
  
$
-
      
-
  
Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a nonrecurring basis as of December 31, 2024 and 2023 (in thousands) are included in the table below:

2024
  
Level I
    
Level II
    
Level III
    
Total
  
Collateral dependent loans
  
$
-
    
$
-
    
$
 3,579
    
$
3,579
  
Other real estate owned
    
-
      
-
      
2,486
      
2,486
  

2023
  
Level I
    
Level II
    
Level III
    
Total
  
Collateral dependent loans
  
$
-
    
$
-
    
$
3,885
    
$
3,885
  
Other real estate owned
    
-
      
-
      
97
      
97
  
Significant Unobservable Inputs Used in Fair Value Measurement Process

Significant unobservable inputs for assets and liabilities measured at fair value on a recurring basis at December 31, 2024 and 2023:



Quantitative Information about Level 3 Fair Value Measurements
  
2024
Fair Value
  
Valuation Technique(s)
Unobservable input
Range
  
Weighted average
  
Measured at Fair Value on a Recurring Basis:
    
 
 
        
Net derivative asset and liability:
    
 
 
        
    IRLC
317
  
Discounted cashflows
Pull-though rates
76.35%-100.00
%
89.65
%
 
    
 
 
        
2023
Fair Value
  
Valuation Technique(s)
Unobservable input
Range
  
Weighted average
  
Measured at Fair Value on a Recurring Basis:
    
 
 
        
Net derivative asset and liability:
    
 
 
        
    IRLC
324
  
Discounted cashflows
Pull-though rates
63.63%-94.24
%
85.43
%

The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands).


Quantitative Information about Level 3 Fair Value Measurements
2024
Fair Value
Valuation Technique(s)
Unobservable input
Range
Weighted average
Collateral dependent loans
3,579
Appraised Collateral Values
Discount for time since appraisal
0%-100%
36.67%
     
Selling costs
4%-12%
7.05%
     
Holding period
1 - 12 months
11.04 months
           
Other real estate owned
2,486
Appraised Collateral Values
Discount for time since appraisal
20%-32%
31.32%

2023
Fair Value
Valuation Technique(s)
Unobservable input
Range
Weighted average
Collateral dependent loans
3,885
Appraised Collateral Values
Discount for time since appraisal
0-100%
29.32%
     
Selling costs
8%-12%
10.20%
     
Holding period
3 - 12 months
6.65 months
           
Other real estate owned
97
Appraised Collateral Values
Discount for time since appraisal
32%
32.00%
Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands):

December 31, 2024
  
Carrying
Amount
   
Fair Value
    
Level I
    
Level II
    
Level III
  
Financial assets:
                              
Interest bearing time deposits with other banks
  
$
3,820
    
$
3,820
    
$
-
    
$
-
    
$
3,820
  
Loans held for sale
    
9,607
      
9,607
      
-
      
-
      
9,607
  
Net loans
    
2,291,543
      
2,209,083
      
-
      
-
      
2,209,083
  
                                         
Financial liabilities:
                                        
Deposits
    
2,382,028
      
2,377,438
      
1,842,223
      
-
      
535,215
  
Borrowed funds
    
297,721
      
284,952
      
-
      
-
      
284,952
  

December 31, 2023
  
Carrying
Amount
   
Fair Value
    
Level I
    
Level II
    
Level III
  
Financial assets:
                              
Interest bearing time deposits with other banks
  
$
4,070
    
$
4,070
    
$
-
    
$
-
    
$
4,070
  
Loans held for sale
    
9,379
      
9,379
      
-
      
-
      
9,379
  
Net loans
    
2,227,683
      
2,126,237
      
-
      
-
      
2,126,237
  
                                         
Financial liabilities:
                                        
Deposits
    
2,321,481
      
2,315,374
      
1,902,007
      
-
      
413,367
  
Borrowed funds
    
322,036
      
313,217
      
-
      
-
      
313,217