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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value of Financial Instruments

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



					Fair Value Measurements at June 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)		06/30/25			(Level 1)			(Level 2)			(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. treasuries		$	4,014					$	4,014
U.S. government agencies		$	6,229					$	6,229
Residential mortgage-backed agencies		$	21,265					$	21,265
Commercial mortgage-backed agencies		$	30,151					$	30,151
Collateralized mortgage obligations		$	17,468					$	17,468
Obligations of states and political subdivisions		$	8,303					$	8,303
Corporate bonds		$	911					$	911
Collateralized debt obligations		$	15,241								$	15,241
Equity investments not held for trading with readily determinable fair values		$	1,008		$	1,008
Financial derivatives		$	266					$	266
Non-recurring:
Equity investment		$	4,088								$	4,088
Other real estate owned		$	176								$	176



					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 June 30, 2025			Valuation Technique		Significant Unobservable Inputs		Significant Unobservable Input Value
Recurring:
Investment securities – available for sale -CDO		$	15,241		Discounted Cash Flow		Discount Margin		Range of low 300 to high 400

Non-recurring:
Equity investment		$	4,088		Market Method		Revenue Multiples		2.8x

Other real estate owned (1)		$	176		Market Comparable Properties		Marketability Discount		10.00%

(1)

Range would include discounts taken since appraisal and estimated values


(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			523
Ending balance June 30, 2025		$	15,241


		Fair Value Measurements
		Using Significant Unobservable Inputs
		(Level 3)
		Investment Securities
(in thousands)		Available for Sale
Beginning balance January 1, 2024		$	14,709
Total losses realized/unrealized:
Included in other comprehensive loss			(734)
Ending balance June 30, 2024		$	13,975



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance April 1, 2025		$	14,697
Total gains realized/unrealized:
Included in other comprehensive income			544
Ending balance June 30, 2025		$	15,241



		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)		Investment Securities Available for Sale
Beginning balance April 1, 2024		$	14,886
Total losses realized/unrealized:
Included in other comprehensive loss			(911)
Ending balance June 30, 2024		$	13,975

Fair Value by Balance Sheet Grouping


		June 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		$	77,313		$	77,313		$	77,313
Interest bearing deposits in banks			1,800			1,800			1,800
Investment securities - AFS			103,582			103,582					$	88,341		$	15,241
Investment securities - HTM			174,951			148,496						146,784			1,712
Equity securities not held for trading with readily determinable fair values			1,008			1,008			1,008
Restricted bank stock			5,815			N/A
Loans, net			1,482,904			1,432,772									1,432,772
Financial derivatives			266			266						266
Accrued interest receivable			7,160			7,160						890			6,270
Financial Liabilities:
Deposits - non-maturity			1,417,096			1,417,096						1,417,096
Deposits - time deposits			197,111			195,746						195,746
Short-term borrowed funds			50,954			50,954						50,954
Long-term borrowed funds			120,929			120,240						120,240
Accrued interest payable			935			935						935


		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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