FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE

Schedule of fair values of assets and liabilities measured on recurring and non-recurring basis


		June 30, 2026
														Total Gains
(Dollars in thousands)		Total			Level 1			Level 2			Level 3			(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies		$	2,502		$	—		$	—		$	2,502
States and political subdivisions			6,642			—			6,642			—
Mortgage-backed GSE residential			17,039			—			17,039			—
Total securities available for sale			26,183			—			23,681			2,502

Equity securities			18,481			18,481			—			—
SBA and USDA servicing asset			11,180			—			—			11,180
Interest rate derivatives			4,791			—			4,791			—
		$	60,635		$	18,481		$	28,472		$	13,682
Nonrecurring fair value measurements:
Collateral-dependent loans		$	7,601		$	—		$	—		$	7,601		$	79

Liabilities
Recurring fair value measurements:
Interest rate derivatives		$	430		$	—		$	430		$	—


		December 31, 2025
														Total Gains
(Dollars in thousands)		Total			Level 1			Level 2			Level 3			(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies		$	12,542		$	—		$	9,947		$	2,595
States and political subdivisions			10,144			—			10,144			—
Mortgage-backed GSE residential			24,493			—			24,493			—
Total securities available for sale			47,179			—			44,584			2,595

Equity securities			18,646			18,646			—			—
SBA and USDA servicing asset			10,601			—			—			10,601
Interest rate derivatives			6,343			—			6,343			—
		$	82,769		$	18,646		$	50,927		$	13,196
Nonrecurring fair value measurements:
Collateral-dependent loans		$	1,658			—			—			1,658		$	231

Liabilities
Recurring fair value measurements:
Interest rate swaps		$	451		$	—		$	451		$	—

Schedule of reconciliation of fair values of assets and liabilities measured on recurring basis using unobservable inputs


		Obligations of
(Dollars in thousands)		U.S. Government
Three Months Ended:		Entities and Agencies
Fair value, April 1, 2026		$	2,532
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(30)
Transfers in and/or out of Level 3			—
Fair value, June 30, 2026		$	2,502

Fair value, April 1, 2025		$	2,563
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(29)
Transfers in and/or out of Level 3			—
Fair value, June 30, 2025		$	2,534

Six Months Ended:
Fair value, January 1, 2026		$	2,595
Total losses included in income			—
Settlements			—
Prepayments/paydowns			(93)
Transfers in and/or out of Level 3			—
Fair value, June 30, 2026		$	2,502

Fair value, January 1, 2025		$	4,467
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(1,933)
Transfers in and/or out of Level 3			—
Fair value, June 30, 2025		$	2,534

Schedule of quantitative information about recurring Level 3 fair value measures


		Valuation		Unobservable		General
		Technique		Input		Range
June 30, 2026:
Recurring:
Obligations of U.S. Government entities and agencies		Discounted cash flows		Discount rate		3%-5%
SBA and USDA servicing asset		Discounted cash flows		Prepayment speed		6.82%-20.53%
				Discount rate		4.93%-9.88%
Nonrecurring:
Collateral-dependent loans		Appraised value less estimated selling costs		Estimated selling costs		6%

December 31, 2025:
Recurring:
Obligations of U.S. Government entities and agencies		Discounted cash flows		Discount rate		3%-5%
SBA and USDA servicing asset		Discounted cash flows		Prepayment speed		6.42%-21.78%
				Discount rate		5.75%-11.09%
Nonrecurring:
Collateral-dependent loans		Appraised value less estimated selling costs		Estimated selling costs		6%

Schedule of carrying amounts and estimated fair values of company's financial instruments


		Carrying				Estimated Fair Value at June 30, 2026
(Dollars in thousands)		Amount			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash, due from banks, and federal funds sold		$	266,690		$	—		$	266,690		$	—		$	266,690
Investment securities			44,664			18,481			23,681			2,502			44,664
Loans held for sale			1,350			—			1,350			—			1,350
Loans, net			3,930,501			—			—			3,916,351			3,916,351
Accrued interest receivable			20,115			—			167			19,948			20,115
SBA and USDA servicing asset			11,180			—			—			11,180			11,180
Mortgage servicing asset			1,308			—			—			5,623			5,623
Interest rate derivatives			4,791			—			4,791			—			4,791
Financial Liabilities:
Deposits			3,489,357			—			3,482,727			—			3,482,727
Federal Home Loan Bank advances			375,000			—			375,488			—			375,488
Accrued interest payable			7,537			—			7,537			—			7,537
Interest rate derivatives			430			—			430			—			430


		Carrying			Estimated Fair Value at December 31, 2025
(Dollars in thousands)		Amount			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash, due from banks, and federal funds sold		$	383,676		$	—		$	383,676		$	—		$	383,676
Investment securities			65,825			18,646			44,584			2,595			65,825
Loans held for sale			9,741			—			9,741			—			9,741
Loans, net			4,023,554			—			—			3,964,005			3,964,005
Accrued interest receivable			20,298			—			344			19,954			20,298
SBA and USDA servicing assets			10,601			—			—			10,601			10,601
Mortgage servicing assets			1,660			—			—			5,659			5,659
Interest rate derivatives			6,343			—			6,343			—			6,343
Financial Liabilities:
Deposits			3,646,001			—			3,645,272			—			3,645,272
Federal Home Loan Bank advances			510,000			—			513,060			—			513,060
Accrued interest payable			10,731			—			10,731			—			10,731
Interest rate derivatives			451						451						451