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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value of Financial Instruments

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis



					Fair Value Measurements at September 30, 2025 Using
					Quoted
					Prices in			Significant
		Assets			Active Markets			Other			Significant
		Measured at			for Identical			Observable			Unobservable
		Fair Value			Assets			Inputs			Inputs
(in thousands)		09/30/25			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	1,376					$	1,376
Residential mortgage-backed agencies		$	20,919					$	20,919
Commercial mortgage-backed agencies		$	30,045					$	30,045
Collateralized mortgage obligations		$	28,115					$	28,115
Obligations of states and political subdivisions		$	8,471					$	8,471
Corporate bonds		$	915					$	915
Collateralized debt obligations		$	15,219								$	15,219
Equity investments not held for trading with readily determinable fair values		$	1,020		$	1,020
Financial derivatives		$	167					$	167
Non-recurring:
Individually evaluated loans, net		$	284								$	284
Equity investment		$	4,365								$	4,365



					Fair Value Measurements at December 31, 2024 Using
					Quoted
					Prices in			Significant
		Assets/(liabilities)			Active Markets			Other			Significant
		Measured at			for Identical			Observable			Unobservable
		Fair Value			Assets			Inputs			Inputs
(in thousands)		12/31/24			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies		$	6,115					$	6,115
Residential mortgage-backed agencies		$	20,196					$	20,196
Commercial mortgage-backed agencies		$	28,634					$	28,634
Collateralized mortgage obligations		$	17,726					$	17,726
Obligations of states and political subdivisions		$	6,209					$	6,209
Corporate bonds		$	896					$	896
Collateralized debt obligations		$	14,718								$	14,718
Financial derivatives		$	455					$	455
Non-recurring:
Individually evaluated loans, net		$	647								$	647
Equity investment		$	3,928								$	3,928
Other real estate owned		$	2,698								$	2,698

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques


(in thousands)		Fair Value at September 30, 2025			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment securities – available for sale -CDO		$	15,219		Discounted Cash Flow		Discount Margin		Range of high 200 to high 400

Non-recurring:
Individually evaluated loans, net		$	284		Market Comparable Properties		Marketability Discount		N/A

Equity investment		$	4,365		Market Method		Revenue Multiples		2.8x


(in thousands)		Fair Value at December 31, 2024			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment securities – available for sale -CDO		$	14,718		Discounted Cash Flow		Discount Margin		Range of low to mid 300 and low 500

Non-recurring:
Individually Evaluated Loans		$	647		Market Comparable Properties		Marketability Discount		N/A

Equity investment		$	3,928		Market Method		Revenue Multiples		2.8x

Other real estate owned (1)		$	2,698		Market Comparable Properties		Marketability Discount		5.0% to 15.0% (weighted avg 5.9%)

(1)

Range would include discounts taken since appraisal and estimated values

Reconciliation of Fair Valued Assets Measured on a Recurring Basis


		Fair Value Measurements
		Using Significant Unobservable Inputs
		(Level 3)
		Investment Securities
(in thousands)		Available for Sale
Beginning balance January 1, 2025		$	14,718
Total gains realized/unrealized:
Included in other comprehensive income			501
Ending balance September 30, 2025		$	15,219


		Fair Value Measurements
		Using Significant Unobservable Inputs
		(Level 3)
		Investment Securities
(in thousands)		Available for Sale
Beginning balance January 1, 2024		$	14,709
Total gains realized/unrealized:
Included in other comprehensive income			70
Ending balance September 30, 2024		$	14,779



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance July 1, 2025		$	15,241
Total losses realized/unrealized:
Included in other comprehensive income			(22)
Ending balance September 30, 2025		$	15,219



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance July 1, 2024		$	13,975
Total gains realized/unrealized:
Included in other comprehensive income			804
Ending balance September 30, 2024		$	14,779

Fair Value by Balance Sheet Grouping


		September 30, 2025						Fair Value Measurements
								Quoted
								Prices in			Significant
								Active Markets			Other			Significant
								for Identical			Observable			Unobservable
		Carrying			Fair			Assets			Inputs			Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	92,268		$	92,268		$	92,268
Interest bearing deposits in banks			2,907			2,907			2,907
Investment securities - AFS			105,060			105,060					$	89,841		$	15,219
Investment securities - HTM			172,818			149,130						147,372			1,758
Equity securities not held for trading with readily determinable fair values			1,020			1,020			1,020
Restricted bank stock			4,628			N/A
Loans, net			1,477,200			1,455,425									1,455,425
Financial derivatives			167			167						167
Accrued interest receivable			7,479			7,479						758			6,721
Financial Liabilities:
Deposits - non-maturity			1,476,074			1,476,074						1,476,074
Deposits - time deposits			202,828			201,916						201,916
Short-term borrowed funds			20,207			20,207						20,207
Long-term borrowed funds			95,929			96,086						96,086
Accrued interest payable			661			661						661


		December 31, 2024						Fair Value Measurements
								Quoted
								Prices in			Significant
								Active Markets			Other			Significant
								for Identical			Observable			Unobservable
		Carrying			Fair			Assets			Inputs			Inputs
(in thousands)		Amount			Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and due from banks		$	77,020		$	77,020		$	77,020
Interest bearing deposits in banks			1,307			1,307			1,307
Investment securities - AFS			94,494			94,494					$	79,776		$	14,718
Investment securities - HTM			175,497			144,760						142,954			1,806
Restricted bank stock			5,768			N/A
Loans, net			1,462,181			1,421,600									1,421,600
Financial derivative			455			455						455
Accrued interest receivable			7,473			7,473						827			6,646
Financial Liabilities:
Deposits - non-maturity			1,431,662			1,431,662						1,431,662
Deposits - time deposits			143,167			141,698						141,698
Short-term borrowed funds			65,409			65,409						65,409
Long-term borrowed funds			120,929			119,586						119,586
Accrued interest payable			489			489						489

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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