Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Share Name	Share Symbol	Market	Type
Auburn National Bancorporation Inc	NASDAQ:AUBN	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	22.00	18.00	34.98				0	09:09:47

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

20549

FORM

10-Q

(Mark One)

☒

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended

June 30, 2024

☐

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period __________ to __________

Commission File Number:

0-26486

Auburn National Bancorporation, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

63-0885779

(I.R.S. Employer

Identification No.)

100 N. Gay Street

Auburn

Alabama

36830

(

334

)

821-9200

(Address and telephone number of principal executive offices)

(Former Name, Former Address and Former Fiscal

Year,

if Changed Since Last Report)

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01

AUBN

NASDAQ

Global Market

Indicate

check

mark

whether

the

registrant

(1) has

filed

all

reports

required

filed

Section 13

15(d)

the

Securities

Exchange Act

of 1934

during the

preceding 12 months

(or for

such shorter

period that

the registrant

was required

to file

such reports),

and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and

posted pursuant to Rule 405 of Regulation S-T

(§232.405 of this chapter)

during the preceding 12 months (or for such shorter period

that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check

mark whether the

registrant is a

large accelerated filer,

an accelerated filer,

a non-accelerated filer,

a smaller reporting

company

emerging

growth

company.

See

the

definitions

“large

accelerated

filer,”

“accelerated

filer,”

“smaller

reporting

company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

emerging

growth

company,

indicate

check

mark

the

registrant

has

elected

not

use

the

extended

transition

period

for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes

☐

☒

Securities registered pursuant to Section 12(b) of the Act:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class

Outstanding at August 1, 2024

Common Stock, $0.01 par value per share

3,493,699

Table of Contents

AUBURN NATIONAL BANCORPORATION, INC. AND

SUBSIDIARIES

INDEX

PART I. FINANCIAL INFORMATION

PAGE

Item 1

Financial Statement

Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023

Consolidated Statements of Earnings (Unaudited) for the quarter and six months ended June 30, 2024

and 2023

Consolidated Statements of Comprehensive Income (Unaudited) for the quarter and six months ended

June 30, 2024 and 2023

Consolidated Statements of Stockholders’ Equity (Unaudited) for the quarter and six months ended

June 30, 2024 and 2023

Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2024 and 2023

Notes to Consolidated Financial Statements (Unaudited

)

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Table 1 – Explanation of Non-GAAP Financial Measures

Table 2 – Selected Quarterly Financial Data

Table 3 – Selected Financial Data

Table 4 – Average Balances and Net Interest Income Analysis – for the quarter ended June 30, 2024

and 2023

Table 5 – Average Balances and Net Interest Income Analysis – for the six months ended June 30, 2024

and 2023

Item 3

Quantitative and Qualitative Disclosures About Market Risk

Item 4

Controls and Procedures

PART II. OTHER INFORMATION

Item 1

Legal Proceedings

Item 1A

Risk Factors

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3

Defaults Upon Senior Securities

Item 4

Mine Safety Disclosures

Item 5

Other Information

Item 6

Exhibits

Table of Contents

PART

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

June 30,

December 31,

(Dollars in thousands, except share data)

2024

2023

Assets:

Cash and due from banks

26,334

27,127

Federal funds sold

11,778

31,412

Interest-bearing bank deposits

76,387

12,830

Cash and cash equivalents

114,499

71,369

Securities available-for-sale

254,359

270,910

Loans held for sale

—

Loans

578,068

557,294

Allowance for credit losses

(7,142)

(6,863)

Loans, net

570,926

550,431

Premises and equipment, net

46,618

45,535

Bank-owned life insurance

17,311

17,110

Other assets

21,311

19,900

Total assets

1,025,054

975,255

Liabilities:

Deposits:

Noninterest-bearing

263,105

270,723

Interest-bearing

683,300

625,520

Total deposits

946,405

896,243

Federal funds purchased and securities sold under agreements to repurchase

—

1,486

Accrued expenses and other liabilities

3,440

1,019

Total liabilities

949,845

898,748

Stockholders' equity:

Preferred stock of $

.01

par value; authorized

200,000

shares;

no shares issued

—

Common stock of $

.01

par value; authorized

8,500,000

shares;

issued

3,957,135

Additional paid-in capital

3,802

3,801

Retained earnings

114,353

113,398

Accumulated other comprehensive loss, net

(31,284)

(29,029)

Less treasury stock, at cost -

463,436

shares and

463,521

at June 30, 2024

and December 31, 2023, respectively

(11,701)

(11,702)

Total stockholders’ equity

75,209

76,507

Total liabilities and stockholders’

equity

1,025,054

975,255

See accompanying notes to consolidated financial statements

Table of Contents

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(Unaudited)

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands, except share and per share data)

2024

2023

2024

2023

Interest income:

Loans, including fees

7,451

6,019

14,441

11,773

Securities:

Taxable

1,371

1,826

2,782

3,691

Tax-exempt

404

148

807

Federal funds sold and interest-bearing bank deposits

688

144

1,442

357

Total interest income

9,584

8,393

18,813

16,628

Interest expense:

Deposits

2,874

1,482

5,444

2,600

Short-term borrowings

Total interest expense

2,875

1,505

5,447

2,631

Net interest income

6,709

6,888

13,366

13,997

Provision for (reversal of) credit losses

(123)

(362)

211

(296)

Net interest income after provision for credit

losses

6,832

7,250

13,155

14,293

Noninterest income:

Service charges on deposit accounts

153

154

309

308

Mortgage lending

180

142

330

235

Bank-owned life insurance

201

224

Other

464

427

943

816

Total noninterest income

896

791

1,783

1,583

Noninterest expense:

Salaries and benefits

3,140

3,038

6,211

5,965

Net occupancy and equipment

603

787

1,366

1,586

Professional fees

314

299

640

637

Other

1,462

1,701

2,977

3,241

Total noninterest expense

5,519

5,825

11,194

11,429

Earnings before income taxes

2,209

2,216

3,744

4,447

Income tax expense

475

288

639

555

Net earnings

1,734

1,928

3,105

3,892

Net earnings per share:

Basic and diluted

0.50

0.55

0.89

1.11

Weighted average shares

outstanding:

Basic and diluted

3,493,699

3,500,064

3,493,681

3,501,098

See accompanying notes to consolidated financial statements

Table of Contents

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

Net earnings

1,734

1,928

3,105

3,892

Other comprehensive (loss) gain:

Unrealized (loss) gain on securities

(94)

(4,830)

(3,012)

2,467

Related tax benefit (expense)

1,215

757

(619)

Other comprehensive (loss) gain, net of tax

(71)

(3,615)

(2,255)

1,848

Comprehensive income (loss)

1,663

(1,687)

850

5,740

See accompanying notes to consolidated financial statements

Table of Contents

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders' Equity

(Unaudited)

Accumulated

Common

Additional

other

Common

paid-in

Retained

comprehensive

Treasury

(Dollars in thousands, except share data)

Outstanding

Stock

capital

earnings

(loss) income

stock

Total

Quarter ended June 30, 2024

Balance, March 31, 2024

3,493,699

3,802

113,563

(31,213)

(11,702)

74,489

Net earnings

—

1,734

—

1,734

Other comprehensive loss

—

(71)

—

(71)

Cash dividends paid ($

.27

per share)

—

(944)

—

(944)

Sale of treasury stock

—

Balance, June 30, 2024

3,493,699

3,802

114,353

(31,284)

(11,701)

75,209

Quarter ended June 30, 2023

Balance, March 31, 2023

3,500,879

3,798

116,798

(35,457)

(11,538)

73,640

Net earnings

—

1,928

—

1,928

Other comprehensive loss

—

(3,615)

—

(3,615)

Cash dividends paid ($

.27

per share)

—

(945)

—

(945)

Stock repurchases

(1,577)

—

(35)

Sale of treasury stock

110

—

Balance, June 30, 2023

3,499,412

3,800

117,781

(39,072)

(11,572)

70,976

Six months ended June 30, 2024

Balance, December 31, 2023

3,493,614

3,801

113,398

(29,029)

(11,702)

76,507

Cumulative effect of change in accounting

standard

—

(263)

—

(263)

Net earnings

—

3,105

—

3,105

Other comprehensive loss

—

(2,255)

—

(2,255)

Cash dividends paid ($

.54

per share)

—

(1,887)

—

(1,887)

Sale of treasury stock

—

Balance, June 30, 2024

3,493,699

3,802

114,353

(31,284)

(11,701)

75,209

Six months ended June 30, 2023

Balance, December 31, 2022

3,503,452

3,797

116,600

(40,920)

(11,475)

68,041

Cumulative effect of change in accounting

standard

—

(821)

—

(821)

Net earnings

—

3,892

—

3,892

Other comprehensive income

—

1,848

—

1,848

Cash dividends paid ($

.54

per share)

—

(1,890)

—

(1,890)

Stock repurchases

(4,225)

—

(99)

Sale of treasury stock

185

—

Balance, June 30, 2023

3,499,412

3,800

117,781

(39,072)

(11,572)

70,976

See accompanying notes to consolidated financial statements

Table of Contents

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

Six months ended June 30,

(Dollars in thousands)

2024

2023

Cash flows from operating activities:

Net earnings

3,105

3,892

Adjustments to reconcile net earnings to net cash provided by

operating activities:

Provision for (reversal of) credit losses

221

(291)

Depreciation and amortization

902

858

Premium amortization and discount accretion, net

770

1,223

Net gain on sale of loans held for sale

(142)

(61)

Loans originated for sale

(5,826)

(1,219)

Proceeds from sale of loans

5,911

1,271

Increase in cash surrender value of bank-owned life insurance

(201)

(172)

Income recognized from death benefit on bank-owned life insurance

—

(52)

Net (increase) decrease in other assets

(1,026)

3,332

Net increase (decrease) in accrued expenses and other liabilities

2,412

(1,406)

Net cash provided by operating activities

6,126

7,375

Cash flows from investing activities:

Proceeds from prepayments and maturities of securities available-for-sale

12,769

12,470

Increase in loans, net

(20,706)

(15,812)

Net purchases of premises and equipment

(1,880)

(40)

Proceeds from bank-owned life insurance death benefit

—

216

Decrease in FHLB stock

Net cash used in investing activities

(9,785)

(3,125)

Cash flows from financing activities:

Net decrease in noninterest-bearing deposits

(7,618)

(12,892)

Net increase in interest-bearing deposits

57,780

13,297

Net decrease in federal funds purchased and securities sold

under agreements to repurchase

(1,486)

(384)

Stock repurchases

—

(99)

Dividends paid

(1,887)

(1,890)

Net cash provided by (used in) financing activities

46,789

(1,968)

Net change in cash and cash equivalents

43,130

2,282

Cash and cash equivalents at beginning of period

71,369

27,254

Cash and cash equivalents at end of period

114,499

29,536

Supplemental disclosures of cash flow information:

Cash paid during the period for:

Interest

5,383

2,191

Income taxes

460

800

See accompanying notes to consolidated financial statements

Table of Contents

AUBURN NATIONAL

BANCORPORATION,

INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General

Auburn National Bancorporation, Inc. (the “Company”) provides a full range of banking services

to individuals and

commercial customers in Lee County,

Alabama and surrounding areas through its wholly owned subsidiary,

AuburnBank

(the “Bank”). The Company does not have any segments other than banking that are considered

material.

Basis of Presentation and Use of Estimates

The unaudited consolidated financial statements in this report have been prepared

in accordance with U.S. generally

accepted accounting principles (“GAAP”) for interim financial information.

Accordingly, these financial statements

do not

include all of the information and footnotes required by U.S. GAAP for complete financial

statements.

The unaudited

consolidated financial statements include, in the opinion of management, all adjustments

necessary to present a fair

statement of the financial position and the results of operations for all periods

presented. All such adjustments are of a

normal recurring nature. The results of operations in the interim statements are not necessarily

indicative of the results of

operations that the Company and its subsidiaries may achieve for future interim periods

or the entire year. For further

information, refer to the consolidated financial statements and footnotes included in the Company's

Annual Report on Form

10-K for the year ended December 31, 2023.

The unaudited consolidated financial statements include the accounts of the

Company and its wholly-owned subsidiaries.

Significant intercompany transactions and accounts are eliminated in consolidation.

The preparation of financial statements in conformity with U.S. GAAP requires

management to make estimates and

assumptions that affect the reported amounts of assets and liabilities and disclosures

of contingent assets and liabilities as of

the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

Actual results could

differ from those estimates.

Material estimates that are particularly susceptible to significant change in the near term

include the determination of allowance for credit losses on loans and investment securities,

fair value of financial

instruments, and the valuation of deferred tax assets and other real estate owned (“OREO”).

Revenue Recognition

The Company’s sources of income that

fall within the scope of ASC 606 include service charges on deposits,

ATM

and

interchange fees and gains and losses on sales of other real estate, all of which are presented

as components of noninterest

income. The following is a summary of the revenue streams that fall within the scope

of ASC 606:

●

Service charges on deposits, investment services, ATM

and interchange fees – Fees from these services are either

(i) transaction-based, for which the performance obligations are satisfied

when the individual transaction is

processed, or (ii) set periodic service charges, for which the performance

obligations are satisfied over the period

the service is provided. Transaction-based

fees are recognized at the time the transaction is processed, and periodic

service charges are recognized over the service period.

●

Gains on sales of OREO

–

A gain on sale should be recognized when a contract for sale exists and control of the

asset has been transferred to the buyer.

ASC 606 lists several criteria required to conclude that a contract for sale

exists, including a determination that the institution will collect substantially all of the consideration

to which it is

entitled.

In addition to the loan-to-value ratio, where the seller provides

the purchaser with financing, the analysis

is based on various other factors,

including the credit quality of the purchaser,

the structure of the loan, and any

other factors that we believe may affect collectability.

Subsequent Events

The Company has evaluated the effects of events and transactions through

the date of this filing that have occurred

subsequent to June 30, 2024.

The Company does not believe there were any material subsequent events during this

period

that would have required further recognition or disclosure in the unaudited

consolidated financial statements included in

this report.

Table of Contents

Correction of Error

The disclosure of loans by vintage in Note 5 – Loans and Allowance for Credit

Losses in the Company’s Annual Report on

Form 10-K for year ended December 31, 2023 contained incorrect information as it pertains

to loans originated by vintage

and revolving loans.

All current period gross charge-off data, total loans by segment and total loans by credit

quality

indicator were correctly reported.

The loans originated by vintage and revolving loans as of December 31, 2023

have been

corrected in the comparative presentation in Note 5 – Loans and Allowance for Credit Losses

in the Notes herein.

Reclassifications

Certain amounts reported in prior periods have been reclassified to conform to the current

-period presentation. These

reclassifications had no effect on the Company’s

previously reported net earnings or total stockholders’ equity.

Accounting Standards Adopted in 2024

On January 1, 2024, the Company adopted ASU 2023-02,

Investments – Equity Method and Joint Ventures

(Topic 323):

Accounting for Investments in Tax

Credit Structures Using

the Proportional Amortization Method

ASU 2023-02 now

permits reporting entities to elect to account for their equity investments made primarily to

receive income tax credits and

other income tax benefits,

regardless of the program from which the income tax credits or benefits are received,

using the

proportional amortization method if certain conditions are met. The

new standard is effective for fiscal years, and interim

periods within those fiscal years, beginning after December 15,

2023.

The Company adopted ASU 2023-02 effective

January 1, 2024 and recorded a cumulative effect of change in accounting

standard adjustment which reduced beginning

retained earnings by $0.3 million.

The Company, beginning

January 1, 2024, accounts

for its investments in New Markets

Tax Credits (“NMTCs”)

using the proportional amortization method through charges to the

provision for income taxes. See

Note 3, Variable

Interest Entities.

NOTE 2: BASIC AND DILUTED NET EARNINGS PER SHARE

Basic net earnings per share is computed by dividing net earnings by the weighted average

common shares outstanding for

the respective period.

Diluted net earnings per share reflect the potential dilution that could occur

upon exercise of

securities or other rights for, or convertible into, shares of the

Company’s common stock.

At June 30, 2024 and 2023,

respectively, the Company

had no such securities or rights issued or outstanding, and therefore, no dilutive

effect to

consider for the diluted net earnings per share calculation.

The basic and diluted net earnings per share computations for the respective periods are

presented below

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands, except share and per share data)

2024

2023

2024

2023

Basic and diluted:

Net earnings

1,734

1,928

3,105

3,892

Weighted average common

shares outstanding

3,493,699

3,500,064

3,493,681

3,501,098

Net earnings per share

0.50

0.55

0.89

1.11

NOTE 3: VARIABLE

INTEREST ENTITIES

Generally, a variable interest entity (“VIE”)

is a corporation, partnership, trust or other legal structure that does not have

equity investors with substantive or proportional voting rights or has equity investors

that do not provide sufficient financial

resources for the entity to support its activities.

Table of Contents

At June 30, 2024, the Company did not have any consolidated VIEs but did have one nonconsolidated

VIE, discussed

below.

New Markets Tax

Credit Investment

The

NMTC

program

provides

federal

tax

incentives

investors

make

investments

distressed

communities

and

promotes

economic

improvement

through

the

development

successful

businesses

these

communities.

NMTCs

are

available to investors

over seven

years and are

subject to recapture

if certain events

occur during

such period.

At June 30,

2024

and

December

31,

2023,

respectively,

the

Company

had

one

such

investment

$1.1

million

and

$1.7

million,

respectively,

which

was

included

other

assets

the

Company’s

consolidated

balance

sheets

VIE.

While

the

Company’s

investment exceeds

50% of

the outstanding

equity interest

in this

VIE, the

Company does

not consolidate

the

VIE because

the Company

lacks the

power to

direct the

activities of

the VIE,

and therefore

is not a

primary beneficiary

the VIE.

On March 29, 2023, the FASB

issued ASU 2023-02, which was effective beginning in 2024 for

public business entities.

have

adopted

ASU

2023-02

January

2024

with

respect

accounting

for

our

NMTC

investment.

The

proportional amortization

method results in

the tax

credit investment

being amortized

in proportion

to the

allocation of

tax

credits and other tax

benefits in each

period and a

net presentation within

the income tax

line item.

The cumulative effects

of the

change

accounting

standard

resulted

in a

$0.4

million pre-tax

decrease

the

Company’s

NMTC

investment

January 1, 2024.

See Note 1:

Summary of Significant Accounting Policies – Accounting

Standards Adopted in 2024.

(Dollars in thousands)

Maximum

Loss Exposure

Asset Recognized

Classification

Type:

New Markets Tax Credit investment

1,082

Other assets

NOTE 4: SECURITIES

At June 30, 2024 and December 31, 2023, respectively,

all securities within the scope of ASC 320,

Investments – Debt and

Equity Securities,

were classified as available-for-sale.

The fair value and amortized cost for securities available-for-sale

by contractual maturity at June 30, 2024 and December 31, 2023, respectively,

are presented below.

1 year

1 to 5

5 to 10

After 10

Fair

Gross Unrealized

Amortized

(Dollars in thousands)

or less

years

Value

Gains

Losses

Cost

June 30, 2024

Agency obligations (a)

—

17,309

35,407

—

52,716

—

8,501

61,217

Agency MBS (a)

19,849

14,808

149,225

183,941

—

30,314

214,255

State and political subdivisions

—

568

9,037

8,097

17,702

2,961

20,662

Total available-for-sale

37,726

59,252

157,322

254,359

41,776

296,134

December 31, 2023

Agency obligations (a)

331

10,339

43,209

—

53,879

—

8,195

62,074

Agency MBS (a)

15,109

22,090

161,058

198,289

—

27,838

226,127

State and political subdivisions

—

9,691

9,051

18,742

2,731

21,472

Total available-for-sale

363

25,448

74,990

170,109

270,910

38,764

309,673

(a) Includes securities issued by U.S. government agencies or government-sponsored

entities.

Expected lives of these

securities may differ from contractual maturities because (i)

issuers may have the right to call or repay such securities

obligations with or without prepayment penalties and (ii) loans incuded in Agency MBS

generally have the right to

prepay such loan in whole or in part at any time.

Securities with aggregate fair values of $

202.5

million and $

211.8

at June 30, 2024 and December 31, 2023, respectively,

were pledged to secure public deposits, securities sold under agreements to repurchase,

Federal Home Loan Bank of

Atlanta (“FHLB of Atlanta”) advances, and for other purposes required or

permitted by law.

Table of Contents

Included in other assets on the accompanying consolidated balance sheets include non-marketable

equity investments.

The

carrying amounts of non-marketable equity investments were $

1.4

million at June 30, 2024 and December 31, 2023,

respectively.

Non-marketable equity investments include FHLB of Atlanta stock,

Federal Reserve Bank of Atlanta

(“FRB”) stock, and stock in a privately held financial institution.

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at June 30, 2024

and December 31, 2023, respectively, segregated

by those securities that have been in an unrealized loss position for less than 12

months and 12 months or longer, are

presented below.

Less than 12 Months

12 Months or Longer

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in thousands)

Value

Losses

Value

Losses

Value

Losses

June 30, 2024:

Agency obligations

—

52,716

8,501

52,716

8,501

Agency MBS

—

183,931

30,314

183,941

30,314

State and political subdivisions

1,817

14,163

2,923

15,980

2,961

Total

1,827

250,810

41,738

252,637

41,776

December 31, 2023:

Agency obligations

—

53,879

8,195

53,879

8,195

Agency MBS

198,223

27,837

198,289

27,838

State and political subdivisions

793

14,408

2,729

15,201

2,731

Total

859

266,510

38,761

267,369

38,764

For the securities in the previous table, the Company considers the severity of the unrealized

loss as well as the Company’s

intent to hold the securities to maturity or the recovery of the cost basis.

Unrealized losses have not been recognized into

income as the decline in fair value is largely due to changes in interest rates and other

market conditions.

For the securities

held as of June 30, 2024 in the table immediately above, management does not intend to sell

and it is likely that

management will not be required to sell the securities prior to their recovery.

Agency Obligations

Investments in agency obligations are guaranteed as to full and timely payment of principal

and interest by the issuing

agency.

Based on management's analysis and judgement, there

were no credit losses attributable to the Company’s

investments in agency obligations at June 30, 2024.

Agency MBS

Investments in agency mortgage-backed securities (“MBS”) are MBS

issued by Ginnie Mae, Fannie Mae, and Freddie

Mac.

Each of these agencies provide a guarantee of full and timely payments of principal and interest

on their respective

MBS by the issuing agency.

Based on management's analysis and judgement, there were no credit

losses attributable to the

Company’s investments in agency MBS at June

30, 2024.

State and Political Subdivisions

Investments in state and political subdivisions are securities issued by various

municipalities in the United States.

The

majority of these securities were rated AA or higher,

with no securities rated below investment grade at June 30, 2024.

Based on management's analysis and judgement, there were no credit losses attributable

to the Company’s investments

state and political subdivisions at June 30, 2024.

Realized Gains and Losses

The Company had no realized gains or losses on sale of securities during the quarters and six

months ended June 30, 2024

and 2023, respectively.

Table of Contents

NOTE 5: LOANS AND ALLOWANCE

FOR CREDIT LOSSES

June 30,

December 31,

(Dollars in thousands)

2024

2023

Commercial and industrial

77,627

73,374

Construction and land development

73,688

68,329

Commercial real estate:

Owner occupied

63,384

66,783

Hotel/motel

38,542

39,131

Multi-family

44,135

45,841

Other

151,171

135,552

Total commercial real estate

297,232

287,307

Residential real estate:

Consumer mortgage

60,957

60,545

Investment property

58,470

56,912

Total residential real estate

119,427

117,457

Consumer installment

10,094

10,827

Total Loans

578,068

557,294

Loans secured by real estate were approximately 84.8% of the Company’s

total loan portfolio at June 30, 2024.

At June 30,

2024, the Company’s geographic

loan distribution was concentrated primarily in Lee County,

Alabama, and surrounding

areas.

The loan portfolio segment is defined as the level at which an entity develops and documents a

systematic method for

determining its allowance for credit losses. As part of the Company’s

quarterly assessment of the allowance, the loan

portfolio included the following portfolio segments: commercial and industrial,

construction and land development,

commercial real estate, residential real estate, and consumer installment. Where appropriate,

the Company’s loan portfolio

segments are further disaggregated into classes. A class is generally determined based

on the initial measurement attribute,

risk characteristics of the loan, and an entity’s

method for monitoring and determining credit risk.

The following describes

the risk characteristics relevant to each of the portfolio segments

and classes.

Commercial and industrial (“C&I”) —

includes loans to finance business operations, equipment purchases, or

other needs

for small and medium-sized commercial customers. Also included

in this category are loans to finance agricultural

production.

Generally,

the primary source of repayment is the cash flow from business operations and activities

of the

borrower.

Construction and land development (“C&D”) —

includes both loans and credit lines for the purpose of purchasing,

carrying,

and developing land into commercial developments or residential subdivisions.

Also included are loans and credit

lines for construction of residential, multi-family,

and commercial buildings. Generally,

the primary source of repayment is

dependent upon the sale or refinance of the real estate collateral.

Commercial real estate

(“CRE”) —

includes loans in these classes:

●

Owner occupied

– includes loans secured by business facilities to finance business operations, equipment and

owner-occupied facilities primarily for small and medium-sized

commercial customers.

Generally,

the primary

source of repayment is the cash flow from business operations and activities of the borrower,

who owns the

property.

●

Hotel/motel

– includes loans for hotels and motels.

Generally, the primary source of repayment

is dependent upon

income generated from the hotel/motel securing the loan.

The underwriting of these loans takes into consideration

the occupancy and rental rates, as well as the financial health of the borrower.

Table of Contents

●

Multi-family

– primarily includes loans to finance income-producing multi-family properties

These include loans

for 5 or more unit residential properties and apartments leased to residents. Generally

the primary source of

repayment is dependent upon income generated from the real estate collateral.

The underwriting of these loans

takes into consideration the occupancy and rental rates,

as well as the financial health of the respective borrowers.

●

Other

– primarily includes loans to finance income-producing commercial properties

other than hotels/motels and

multi-family properties, and which

are not owner occupied.

Loans in this class include loans for neighborhood

retail centers, medical and professional offices, single retail stores,

industrial buildings, and warehouses leased to

local and other businesses.

Generally,

the primary source of repayment is dependent upon income generated

from

the real estate collateral. The underwriting of these loans takes into consideration

the occupancy and rental rates,

as well as the financial health of the borrower.

Residential real estate (“RRE”) —

includes loans in these two classes:

●

Consumer mortgage

– primarily includes first or second lien mortgages and home equity lines of credit

consumers that are secured by a primary residence or second home. These loans are underwritten in

accordance

with the Bank’s general loan policies and

procedures which require, among other things, proper documentation of

each borrower’s financial condition, satisfactory credit history

and property value.

●

Investment property

– primarily includes loans to finance income-producing 1-4 family residential properties.

Generally,

the primary source of repayment is dependent upon income generated

from leasing the property

securing the loan. The underwriting of these loans takes into consideration the rental rates and

property values, as

well as the financial health of the borrowers.

Consumer installment —

includes loans to individuals,

which may be secured by personal property or are unsecured.

Loans

include personal lines of credit, automobile loans, and other retail loans.

These loans are underwritten in accordance with

the Bank’s general loan policies and procedures

which require, among other things, proper documentation of each

borrower’s financial condition, satisfactory credit history,

and, if applicable, property values.

Table of Contents

The following is a summary of current, accruing past due, and nonaccrual loans by portfolio

segment and class as of June

30, 2024 and December 31, 2023.

Accruing

Total

30-89 Days

Greater than

Accruing

Non-

Total

(Dollars in thousands)

Current

Past Due

90 days

Loans

Accrual

Loans

June 30, 2024:

Commercial and industrial

77,625

—

77,627

—

77,627

Construction and land development

73,284

404

—

73,688

—

73,688

Commercial real estate:

Owner occupied

62,631

—

62,631

753

63,384

Hotel/motel

38,542

—

38,542

—

38,542

Multi-family

44,135

—

44,135

—

44,135

Other

151,171

—

151,171

—

151,171

Total commercial real estate

296,479

—

296,479

753

297,232

Residential real estate:

Consumer mortgage

60,805

111

—

60,916

60,957

Investment property

58,372

—

58,470

—

58,470

Total residential real estate

119,177

209

—

119,386

119,427

Consumer installment

10,071

—

10,094

—

10,094

Total

576,636

638

—

577,274

794

578,068

December 31, 2023:

Commercial and industrial

73,108

266

—

73,374

—

73,374

Construction and land development

68,329

—

68,329

—

68,329

Commercial real estate:

Owner occupied

66,000

—

66,000

783

66,783

Hotel/motel

39,131

—

39,131

—

39,131

Multi-family

45,841

—

45,841

—

45,841

Other

135,552

—

135,552

—

135,552

Total commercial real estate

286,524

—

286,524

783

287,307

Residential real estate:

Consumer mortgage

60,442

—

60,442

103

60,545

Investment property

56,597

290

—

56,887

56,912

Total residential real estate

117,039

290

—

117,329

128

117,457

Consumer installment

10,781

—

10,827

—

10,827

Total

555,781

602

—

556,383

911

557,294

Table of Contents

Credit Quality Indicators

The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories

similar to the

standard asset classification system used by the federal banking agencies.

These categories are utilized to develop the

associated allowance for credit losses using historical losses adjusted

for qualitative and environmental factors and are

defined as follows:

●

Pass – loans which are well protected by the current net worth and paying capacity

of the obligor (or guarantors, if

any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

●

Special Mention – loans with potential weakness that may,

if not reversed or corrected, weaken the credit or

inadequately protect the Company’s position

at some future date. These loans are not adversely classified and do

not expose an institution to sufficient risk to warrant an adverse classification.

●

Substandard Accruing – loans that exhibit a well-defined weakness which presently

jeopardizes debt repayment,

even though they are currently performing. These loans are characterized by the distinct possibility

that the

Company may incur a loss in the future if these weaknesses are not corrected

●

Nonaccrual – includes loans where management has determined that

full payment of principal and interest is not

expected.

Substandard accrual and nonaccrual loans are often collectively referred to as “classified.”

Table of Contents

The following tables presents credit quality indicators for the loan portfolio segments and

classes by year of origination as

of June 30, 2024 and December 31, 2023.

The December 31, 2023 table has been revised to correct revolving loans and

properly allocate loans by year of origination.

See Note 1: Summary of Significant Accounting Policies – Correction of

Error.

Year of Origination

2024

2023

2022

2021

2020

Prior to

2020

Revolving

Loans

Total

Loans

(Dollars in thousands)

June 30, 2024:

Commercial and industrial

Pass

5,671

13,080

19,641

13,026

5,350

17,043

3,485

77,296

Special mention

—

Substandard

187

—

257

Nonaccrual

—

Total commercial and industrial

5,725

13,160

19,828

13,036

5,350

17,043

3,485

77,627

Current period gross charge-offs

—

Construction and land development

Pass

17,898

27,794

23,510

1,544

1,823

144

—

72,713

Special mention

332

404

—

736

Substandard

239

—

239

Nonaccrual

—

Total construction and land development

18,469

28,198

23,510

1,544

1,823

144

—

73,688

Current period gross charge-offs

—

Commercial real estate:

Owner occupied

Pass

509

12,454

7,030

17,282

9,469

9,711

4,991

61,446

Special mention

931

254

—

1,185

Substandard

—

Nonaccrual

—

753

—

753

Total owner occupied

1,440

12,708

7,030

17,282

9,469

10,464

4,991

63,384

Current period gross charge-offs

—

Hotel/motel

Pass

245

8,822

9,677

3,142

1,397

14,993

266

38,542

Special mention

—

Substandard

—

Nonaccrual

—

Total hotel/motel

245

8,822

9,677

3,142

1,397

14,993

266

38,542

Current period gross charge-offs

—

Table of Contents

Year of Origination

2024

2023

2022

2021

2020

Prior to

2020

Revolving

Loans

Total

Loans

(Dollars in thousands)

June 30, 2024:

Multi-family

Pass

192

11,710

17,279

1,916

5,967

6,505

566

44,135

Special mention

—

Substandard

—

Nonaccrual

—

Total multi-family

192

11,710

17,279

1,916

5,967

6,505

566

44,135

Current period gross charge-offs

—

Other

Pass

26,641

21,591

26,844

25,885

13,606

18,612

16,961

150,140

Special mention

905

—

905

Substandard

—

126

—

126

Nonaccrual

—

Total other

27,546

21,591

26,844

25,885

13,732

18,612

16,961

151,171

Current period gross charge-offs

—

Residential real estate:

Consumer mortgage

Pass

3,621

18,043

18,685

2,614

2,612

12,084

2,272

59,931

Special mention

—

490

—

490

Substandard

—

495

—

495

Nonaccrual

—

Total consumer mortgage

3,621

18,043

18,685

2,614

2,612

13,110

2,272

60,957

Current period gross charge-offs

—

Investment property

Pass

7,691

12,004

11,111

8,908

12,301

5,773

281

58,069

Special mention

—

Substandard

—

224

—

401

Nonaccrual

—

Total investment property

7,691

12,086

11,206

8,908

12,525

5,773

281

58,470

Current period gross charge-offs

—

Consumer installment

Pass

3,216

3,443

2,098

359

123

191

582

10,012

Special mention

—

Substandard

—

Nonaccrual

—

Total consumer installment

3,226

3,473

2,130

369

123

191

582

10,094

Current period gross charge-offs

—

Total loans

Pass

65,684

128,941

135,875

74,676

52,648

85,056

29,404

572,284

Special mention

2,168

741

—

490

—

3,436

Substandard

303

109

287

350

495

—

1,554

Nonaccrual

—

794

—

794

Total loans

68,155

129,791

136,189

74,696

52,998

86,835

29,404

578,068

Total current period gross charge-offs

—

Table of Contents

Year of Origination

2023

2022

2021

2020

2019

Prior to

2019

Revolving

Loans

Total

Loans

(Dollars in thousands)

December 31, 2023:

Commercial and industrial

Pass

11,571

18,074

13,746

5,602

7,298

7,819

9,003

73,113

Special mention

—

Substandard

203

—

261

Nonaccrual

—

Total commercial and industrial

11,626

18,277

13,746

5,602

7,301

7,819

9,003

73,374

Current period gross charge-offs

—

151

—

164

Construction and land development

Pass

38,646

25,382

1,716

1,526

120

157

782

68,329

Special mention

—

Substandard

—

Nonaccrual

—

Total construction and land development

38,646

25,382

1,716

1,526

120

157

782

68,329

Current period gross charge-offs

—

Commercial real estate:

Owner occupied

Pass

12,966

7,337

18,548

10,458

3,948

9,786

2,647

65,690

Special mention

260

—

260

Substandard

—

Nonaccrual

—

783

—

783

Total owner occupied

13,226

7,337

18,548

10,458

4,781

9,786

2,647

66,783

Current period gross charge-offs

—

Hotel/motel

Pass

9,025

9,873

3,205

1,493

3,881

11,654

—

39,131

Special mention

—

Substandard

—

Nonaccrual

—

Total hotel/motel

9,025

9,873

3,205

1,493

3,881

11,654

—

39,131

Current period gross charge-offs

—

Table of Contents

Year of Origination

2023

2022

2021

2020

2019

Prior to

2019

Revolving

Loans

Total

Loans

(Dollars in thousands)

December 31, 2023:

Multi-family

Pass

12,379

17,955

1,953

6,112

3,790

3,043

609

45,841

Special mention

—

Substandard

—

Nonaccrual

—

Total multi-family

12,379

17,955

1,953

6,112

3,790

3,043

609

45,841

Current period gross charge-offs

—

Other

Pass

25,810

36,076

31,687

14,597

10,736

15,440

1,052

135,398

Special mention

—

Substandard

—

154

—

154

Nonaccrual

—

Total other

25,810

36,076

31,687

14,751

10,736

15,440

1,052

135,552

Current period gross charge-offs

—

Residential real estate:

Consumer mortgage

Pass

20,147

20,177

2,683

2,665

1,281

12,217

249

59,419

Special mention

—

190

305

—

495

Substandard

—

528

—

528

Nonaccrual

—

103

—

103

Total consumer mortgage

20,147

20,177

2,683

2,665

1,471

13,153

249

60,545

Current period gross charge-offs

—

Investment property

Pass

13,398

12,490

9,397

12,209

5,485

1,865

1,478

56,322

Special mention

—

Substandard

248

—

233

—

524

Nonaccrual

—

Total investment property

13,482

12,738

9,397

12,442

5,485

1,890

1,478

56,912

Current period gross charge-offs

—

Consumer installment

Pass

5,688

3,837

740

206

106

141

—

10,718

Special mention

—

Substandard

—

Nonaccrual

—

Total consumer installment

5,734

3,873

754

219

106

141

—

10,827

Current period gross charge-offs

—

105

Total loans

Pass

149,630

151,201

83,675

54,868

36,645

62,122

15,820

553,961

Special mention

310

190

305

—

841

Substandard

135

462

398

528

—

1,581

Nonaccrual

—

783

128

—

911

Total loans

150,075

151,688

83,689

55,268

37,671

63,083

15,820

557,294

Total current period gross charge-offs

151

—

269

Table of Contents

Allowance for Credit Losses

The Company adopted ASC 326 on January 1, 2023, which introduced

the CECL methodology for estimating all expected

losses over the life of a financial asset. Under the CECL methodology,

the allowance for credit losses is measured on a

collective basis for pools of loans with similar risk characteristics, and for loans that do

not share similar risk characteristics

with the collectively evaluated pools, evaluations are performed on an individual

basis.

The composition of the provision for (reversal of) credit losses for the respective periods

is presented below.

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

Provision for credit losses:

Loans

(64)

(331)

221

(291)

Reserve for unfunded commitments

(59)

(31)

(10)

(5)

Total provision for (reversal of)

credit losses

(123)

(362)

211

(296)

The following table details the changes in the allowance for credit losses for loans, by portfolio

segment, for the respective

periods.

(Dollars in thousands)

Commercial and

industrial

Construction

and land

development

Commercial

real estate

Residential

real estate

Consumer

installment

Total

Quarter ended:

June 30, 2024

Beginning balance

1,415

840

4,202

613

145

7,215

Charge-offs

(9)

—

(19)

(28)

Recoveries

—

Net (charge-offs) recoveries

(1)

—

(10)

(9)

Provision for (reversal of) credit losses

(48)

102

(111)

(12)

(64)

Ending balance

1,366

942

4,091

603

140

7,142

Six months ended:

June 30, 2024

Beginning balance

1,288

960

3,921

546

148

6,863

Charge-offs

(9)

—

(43)

(52)

Recoveries

—

110

Net recoveries (charge-offs)

—

(12)

Provision for (reversal of) credit losses

(18)

170

221

Ending balance

1,366

942

4,091

603

140

7,142

Table of Contents

(Dollars in thousands)

Commercial and

industrial

Construction

and land

development

Commercial

real estate

Residential

real estate

Consumer

installment

Total

Quarter ended:

June 30, 2023

Beginning balance

1,232

1,021

3,966

497

105

6,821

Charge-offs

—

(56)

Recoveries

194

—

200

Net recoveries (charge-offs)

194

—

(55)

144

Provision for (reversal of) credit losses

(228)

(16)

(178)

(331)

Ending balance

1,198

1,005

3,788

529

114

6,634

Six months ended:

June 30, 2023

Beginning balance

747

949

3,109

828

132

5,765

Impact of adopting ASC 326

532

(17)

873

(347)

(22)

1,019

Charge-offs

—

(67)

Recoveries

196

—

208

Net recoveries (charge-offs)

196

—

(65)

141

Provision for (reversal of) credit losses

(277)

(194)

(291)

Ending balance

1,198

1,005

3,788

529

114

6,634

The following table presents the amortized cost basis of collateral dependent loans, which

are individually evaluated to

determine expected credit losses as of March 31, 2024 and December 31, 2023:

(Dollars in thousands)

Real Estate

Total Loans

June 30, 2024:

Commercial real estate

753

Total

753

December 31, 2023:

Commercial real estate

783

Total

783

The following table is a summary of the Company’s

nonaccrual loans by major categories as of March 31, 2024 and

December 31, 2023.

CECL

Nonaccrual loans

Total

(Dollars in thousands)

with no Allowance

with an Allowance

Nonaccrual Loans

June 30, 2024

Commercial real estate

753

—

753

Residential real estate

—

Total

753

794

December 31, 2023

Commercial real estate

783

—

783

Residential real estate

—

128

Total

783

128

911

Table of Contents

NOTE 6: MORTGAGE SERVICING

RIGHTS, NET

Mortgage servicing rights (“MSRs”) are recognized based on the fair value of the

servicing rights on the date the

corresponding mortgage loans are sold.

An estimate of the fair value of the Company’s MSRs is

determined using

assumptions that market participants would use in estimating future net servicing

income, including estimates of

prepayment speeds, discount rates, default rates, costs to service, escrow account earnings,

contractual servicing fee

income, ancillary income, and late fees.

Subsequent to the date of transfer, the Company

has elected to measure its MSRs

under the amortization method.

Under the amortization method, MSRs are amortized in proportion to, and over

the period

of, estimated net servicing income.

The Company generally sells, without recourse, conforming, fixed-rate, closed-end, residential

mortgages to Fannie Mae,

where the Company services the mortgages sold and records MSRs.

MSRs are included in other assets on the

accompanying consolidated balance sheets.

The Company evaluates MSRs for impairment on a quarterly basis.

Impairment is determined by stratifying MSRs into

groupings based on predominant risk characteristics, such as interest rate and loan type.

If, by individual stratum, the

carrying amount of the MSRs exceeds fair value, a valuation allowance is established.

The valuation allowance is adjusted

as the fair value changes.

Changes in the valuation allowance are recognized in earnings as a component

of mortgage

lending income.

The following table details the changes in amortized MSRs and the related valuation allowance for

the respective periods.

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

MSRs, net:

Beginning balance

965

1,096

992

1,151

Additions, net

Amortization expense

(38)

(55)

(77)

(110)

Ending balance

942

1,050

942

1,050

Valuation

allowance included in MSRs, net:

Beginning of period

—

End of period

—

Fair value of amortized MSRs:

Beginning of period

2,378

2,419

2,382

2,369

End of period

2,346

2,312

2,346

2,312

NOTE 7: FAIR VALUE

Fair Value

Hierarchy

“Fair value” is defined by ASC 820,

Fair Value

Measurements and Disclosures

, and focuses on the exit price, i.e., the price

that would be received to sell an asset or paid to transfer a liability in an orderly transaction

occurring in the principal

market (or most advantageous market in the absence of a principal

market) for an asset or liability at the measurement date.

GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority

to quoted prices in active

markets for identical assets or liabilities and the lowest priority to unobservable inputs.

The fair value hierarchy is as

follows:

Level 1—inputs to the valuation methodology are quoted prices, unadjusted, for identical

assets or liabilities in active

markets.

Level 2—inputs to the valuation methodology include quoted prices for similar assets and

liabilities in active markets,

quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that

are observable for the

asset or liability, either directly or

indirectly.

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Level 3—inputs to the valuation methodology are unobservable and reflect the

Company’s own assumptions about the

inputs market participants would use in pricing the asset or liability.

Level changes in fair value measurements

Transfers between levels of the fair value hierarchy are generally

recognized at the end of each reporting period.

The

Company monitors the valuation techniques utilized for each category of

financial assets and liabilities to ascertain when

transfers between levels have been affected.

The nature of the Company’s financial assets

and liabilities generally is such

that transfers in and out of any level are expected to be infrequent. For the six months

ended June 30, 2024, there were no

transfers between levels and no changes in valuation techniques for the Company’s

financial assets and liabilities.

Assets and liabilities measured at fair value on a recurring

basis

Securities available-for-sale

Fair values of securities available for sale were primarily measured using

Level 2 inputs.

For these securities, the Company

obtains pricing data from third party pricing services.

These third party pricing services consider observable data that

may

include broker/dealer quotes, market spreads, cash flows, benchmark yields, reported

trades for similar securities, market

consensus prepayment speeds, credit information, and the securities’ terms and

conditions.

On a quarterly basis,

management reviews the pricing data received from the third party pricing services

for reasonableness given current market

conditions.

As part of its review, management

may obtain non-binding third party broker/dealer quotes to validate the fair

value measurements.

In addition, management will periodically submit pricing information

provided by the third party

pricing services to another independent valuation firm on a sample basis.

This independent valuation firm will compare the

prices

provided by the third party pricing service with its own prices

and will review the significant assumptions and

valuation methodologies used with management.

The following table presents the balances of the assets and liabilities measured at fair value

on a recurring basis as of June

30, 2024 and December 31, 2023, respectively,

by caption, on the accompanying consolidated balance sheets by ASC 820

valuation hierarchy (as described above).

Quoted Prices in

Significant

Active Markets

Other

Significant

for

Observable

Unobservable

Identical Assets

Inputs

(Dollars in thousands)

Amount

(Level 1)

(Level 2)

(Level 3)

June 30, 2024:

Securities available-for-sale:

Agency obligations

52,716

—

52,716

—

Agency MBS

183,941

—

183,941

—

State and political subdivisions

17,702

—

17,702

—

Total securities available-for-sale

254,359

—

254,359

—

Total

assets at fair value

254,359

—

254,359

—

December 31, 2023:

Securities available-for-sale:

Agency obligations

53,879

—

53,879

—

Agency MBS

198,289

—

198,289

—

State and political subdivisions

18,742

—

18,742

—

Total securities available-for-sale

270,910

—

270,910

—

Total

assets at fair value

270,910

—

270,910

—

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Assets and liabilities measured at fair value on a nonrecurring

basis

Collateral Dependent Loans

Collateral dependent loans are measured at the fair value of the collateral securing the loan

less estimated selling costs. The

fair value of real estate collateral is determined based on real estate appraisals

which are generally based on recent sales of

comparable properties which are then adjusted for property specific factors.

Non-real estate collateral is valued based on

various sources, including third party asset valuations and internally determined

values based on cost adjusted for

depreciation and other judgmentally determined discount factors. Collateral

dependent loans are classified within Level 3 of

the hierarchy due to the unobservable inputs used in determining their fair value such as collateral

values and the borrower's

underlying financial condition.

Mortgage servicing rights, net

MSRs, net, included in other assets on the accompanying consolidated balance sheets,

are carried at the lower of cost or

estimated fair value.

MSRs do not trade in an active market with readily observable prices.

To determine the fair

value of

MSRs, the Company engages an independent third party.

The independent third party’s

valuation model calculates the

present value of estimated future net servicing income using assumptions that

market participants would use in estimating

future net servicing income, including estimates of mortgage prepayment speeds,

discount rates, default rates, costs to

service, escrow account earnings, contractual servicing fee income, ancillary

income, and late fees.

Periodically, the

Company will review broker surveys and other market research to validate

significant assumptions used in the model.

The

significant unobservable inputs include mortgage prepayment speeds or

the constant prepayment rate (“CPR”) and the

weighted average discount rate.

Because the valuation of MSRs requires the use of significant unobservable inputs, all of

the Company’s MSRs are classified

within Level 3 of the valuation hierarchy.

The following table presents the balances of the assets and liabilities measured at fair value

on a nonrecurring basis as of

June 30, 2024 and December 31, 2023, respectively,

by caption, on the accompanying consolidated balance sheets and by

FASB ASC 820 valuation

hierarchy (as described above):

Quoted Prices in

Active Markets

Other

Significant

for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(Dollars in thousands)

Amount

(Level 1)

(Level 2)

(Level 3)

June 30, 2024:

Loans held for sale

—

Loans, net

(1)

753

—

753

Other assets

(2)

942

—

942

Total assets at fair value

1,725

—

1,695

December 31, 2023:

Loans, net

(1)

783

—

783

Other assets

(2)

992

—

992

Total assets at fair value

1,775

—

1,775

(1)

Loans considered collateral dependent under ASC 326.

(2)

Represents MSRs, net, carried at lower of cost or

estimated fair value.

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Quantitative Disclosures for Level 3 Fair Value

Measurements

At June 30, 2024 and December 31, 2023, the Company had no Level 3 assets measured

at fair value on a recurring basis.

For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2024

and December 31, 2023, the significant

unobservable inputs used in the fair value measurements and the range of such inputs

with respect to such assets are

presented below.

Range of

Weighted

Carrying

Significant

Unobservable

Average

(Dollars in thousands)

Amount

Valuation Technique

Unobservable Input

Inputs

of Input

June 30, 2024:

Collateral dependent loans

753

Appraisal

Appraisal discounts

10.0

Mortgage servicing rights, net

942

Discounted cash flow

Prepayment speed or CPR

6.4

11.5

6.7

Discount rate

10.0

12.0

10.0

December 31, 2023:

Collateral dependent loans

783

Appraisal

Appraisal discounts

10.0

Mortgage servicing rights, net

992

Discounted cash flow

Prepayment speed or CPR

5.9

10.6

6.0

Discount rate

10.5

12.5

10.5

Fair Value

of Financial Instruments

ASC 825,

Financial Instruments

, requires disclosure of fair value information about financial instruments,

whether or not

recognized on the face of the balance sheet, where it is practicable to

estimate that value. The assumptions used in the

estimation of the fair value of the Company’s

financial instruments are explained below.

Where quoted market prices are

not available, fair values are based on estimates using discounted cash flow analyses.

Discounted cash flows can be

significantly affected by the assumptions used, including the discount rate

and estimates of future cash flows. The

following fair value estimates cannot be substantiated by comparison to independent

markets and should not be considered

representative of the liquidation value of the Company’s

financial instruments, but rather are good-faith estimates

of the fair

value of financial instruments held by the Company.

ASC 825 excludes certain financial instruments and all nonfinancial

instruments from its disclosure requirements.

The following methods and assumptions were used by the Company in estimating the fair

value of its financial instruments:

Loans, net

Fair values for loans were calculated using discounted cash flows. The discount rates reflected

current rates at which similar

loans would be made for the same remaining maturities. Expected future cash

flows were projected based on contractual

cash flows, adjusted for estimated prepayments.

The fair value of loans was measured using an exit price notion.

Loans held for sale

Fair values of loans held for sale are determined using quoted secondary market

prices for similar loans.

Time Deposits

Fair values for time deposits were estimated using discounted cash flows. The

discount rates were based on rates currently

offered for deposits with similar remaining maturities.

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The carrying value,

related estimated fair value, and placement in the fair value hierarchy of the Company’s

financial

instruments at June 30, 2024 and December 31, 2023 are presented below.

This table excludes financial instruments for

which the carrying amount approximates fair value.

Financial

assets for which fair value approximates carrying value

included cash and cash equivalents.

Financial liabilities for which fair value approximates carrying value included

noninterest-bearing demand deposits,

interest-bearing demand deposits, and savings deposits.

Fair value approximates

carrying value in these financial liabilities due to these products having no stated

maturity.

Additionally, financial

liabilities for which fair value approximates carrying value included overnight

borrowings such as federal funds purchased

and securities sold under agreements to repurchase.

The following table summarizes our fair value estimates:

Fair Value Hierarchy

Carrying

Estimated

Level 1

Level 2

Level 3

(Dollars in thousands)

amount

fair value

inputs

Inputs

June 30, 2024:

Financial Assets:

Loans, net (1)

570,926

536,965

—

536,965

Loans held for sale

—

Financial Liabilities:

Time Deposits

196,292

193,940

—

193,940

—

December 31, 2023:

Financial Assets:

Loans, net (1)

550,431

526,372

—

526,372

Financial Liabilities:

Time Deposits

198,215

195,171

—

195,171

—

(1) Represents loans, net of allowance for credit losses.

The fair value of loans was measured using an

exit price notion.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS

OPERATIONS

General

Auburn National Bancorporation, Inc. (the “Company”) is a bank holding company registered

with the Board of Governors

of the Federal Reserve System (the “Federal Reserve”) under the Bank Holding

Company Act of 1956, as amended (the

“BHC Act”). The Company was incorporated in Delaware in 1990, and in 1994

it succeeded its Alabama predecessor as the

bank holding company controlling AuburnBank, an Alabama state

member bank with its principal office in Auburn,

Alabama (the “Bank”). The Company and its predecessor have controlled the Bank since 1984.

As a bank holding

company, the Company

may diversify into a broader range of financial services and other business activities than currently

are permitted to the Bank under applicable laws and regulations.

The holding company structure also provides greater

financial and operating flexibility than is presently permitted to the Bank.

The Bank has operated continuously since 1907 and currently conducts its business primarily

in East Alabama, including

Lee County and surrounding areas.

The Bank has been a member of the Federal Reserve System since April 1995.

The

Bank’s primary regulators are the Federal

Reserve and the Alabama Superintendent of Banks (the “Alabama

Superintendent”).

The Bank has been a member of the FHLB of Atlanta since 1991. Certain of the statements

made in this

discussion and analysis and elsewhere, including information incorporated

herein by reference to other documents, are

“forward-looking statements” as more fully described under “Special

Cautionary Notice Regarding Forward-Looking

Statements” below.

The following discussion and analysis is intended to provide a better understanding of

various factors related to the results

of operations and financial condition of the Company and the Bank.

This discussion is intended to supplement and

highlight information contained in the accompanying unaudited condensed consolidated

financial statements and related

notes for the quarters and six months ended June 30, 2024 and 2023, as well as the information

contained in our Annual

Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Reports on

Form 10-Q.

Special Cautionary Notice Regarding Forward-Looking Statements

Various

of the statements made herein under the captions “Management’s

Discussion and Analysis of Financial Condition

and Results of Operations”, “Quantitative and Qualitative Disclosures about Market

Risk”, “Risk Factors” “Description of

Property” and elsewhere, are “forward-looking statements” within the

meaning and protections of Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,

as amended (the “Exchange Act”).

Forward-looking statements include statements with respect to our beliefs, plans, objectives,

goals, expectations,

anticipations, assumptions, estimates, intentions and future performance, and involve

known and unknown risks,

uncertainties and other factors, which may be beyond our control, and

which may cause the actual results, performance,

achievements or financial condition of the Company to be materially different

from future results, performance,

achievements or financial condition expressed or implied by such forward-looking

statements.

You

should not expect us to

update any forward-looking statements.

All statements other than statements of historical fact are statements that could be forward-looking

statements. You

can

identify these forward-looking statements through our use of words such as

“may,” “will,” “anticipate,”

“assume,”

“should,” “indicate,” “would,” “believe,” “contemplate,” “expect,”

“estimate,” “continue,” “designed”, “plan,” “point to,”

“project,” “could,” “intend,” “target” and other similar words and expressions

of the future. These forward-looking

statements may not be realized due to a variety of factors, including, without limitation:

●

the effects of future economic, business and market conditions and

changes, foreign, domestic and locally,

including inflation, seasonality,

natural disasters or climate change, such as rising sea and water levels,

hurricanes

and tornados, COVID-19 or other health crises, epidemics or pandemics including supply

chain disruptions,

inventory volatility, and changes

in consumer behaviors;

●

the effects of war or other conflicts, acts of terrorism, trade restrictions (including

tariffs), sanctions or other events

that may affect general economic conditions;

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●

governmental monetary and fiscal policies, including the amount and costs of borrowing

by the federal

government and its agencies, the continuing effects of COVID-19

fiscal and monetary stimuli, and subsequent

changes in monetary policies in response to inflation, including increases in the Federal

Reserve’s target federal

funds rate and reductions in the Federal Reserve’s

holdings of securities through quantitative tightening; and the

duration that the Federal Reserve will keep its targeted federal funds rates at or

above current rates to meet its long

term inflation target of 2%;

●

legislative and regulatory changes, including changes in banking, securities and tax laws,

regulations and rules and

their application by our regulators, including capital and liquidity requirements, and

changes in the scope and cost

of FDIC insurance;

●

changes in accounting pronouncements and interpretations, including the required

use, beginning January 1,

2023,of Financial Accounting Standards Board’s

(“FASB”) Accounting

Standards Update (ASU) 2016-13,

“Financial Instruments – Credit Losses (Topic

326): Measurement of Credit Losses on Financial Instruments,” as

well as the updates issued since June 2016 (collectively,

FASB

ASC Topic 326) on Current Expected

Credit

Losses (“CECL”), and ASU 2022-02, Troubled

Debt Restructurings and Vintage Disclosures,

which eliminates

troubled debt restructurings (“TDRs”) and related guidance;

●

the failure of assumptions and estimates, including those used in the Company’s

CECL models to establish our

allowance for credit losses and estimate asset impairments, as well as differences

in, and changes to, economic,

market and credit conditions, including unemployment rates, changes in borrowers’ credit

risks and payment

behaviors from those used in our CECL models and loan portfolio reviews;

●

the risks of changes in market interest rates and the shape of the yield curve on customer

behaviors; the levels,

composition and costs of deposits, loan demand and mortgage loan originations; the

values and liquidity of loan

collateral, our securities portfolio and interest-sensitive assets and liabilities;

and the risks and uncertainty of the

amounts realizable on collateral;

●

the risks of increases in market interest rates or the continuation of restrictive monetary policies

creating

unrealized losses on our securities available for sale, which adversely affect

our stockholders’ equity for financial

reporting purposes and our tangible equity;

●

changes in borrower liquidity and credit risks, and savings, deposit and payment behaviors;

●

changes in the availability and cost of credit and capital in the financial markets, and the types

of instruments that

may be included as capital for regulatory purposes;

●

changes in the prices, values and sales volumes of residential and commercial real estate;

●

the effects of competition from a wide variety of local, regional,

national and other providers of financial,

investment and insurance services, including the disruptive effects of

financial technology and other competitors

who are not subject to the same regulation, including capital, and supervision and examination,

as the Company

and the Bank and credit unions, which are not subject to federal income taxation;

●

the timing and amount of rental income from third parties following the June 2022

opening of our new

headquarters;

●

the risks of mergers, acquisitions and divestitures, including,

without limitation, the related time and costs of

implementing such transactions, integrating operations as part of these transactions and

possible failures to achieve

expected gains, revenue growth and/or expense savings from such transactions;

●

changes in technology or products that may be more difficult, costly,

or less effective than anticipated;

●

cyber-attacks and data breaches that may compromise our systems, our

vendors’ systems or customers’

information;

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●

the risks that our deferred tax assets (“DTAs”)

included in “other assets” on our consolidated balance sheets, if

any, could be reduced if estimates of future

taxable income from our operations and tax planning strategies are less

than currently estimated, and sales of our capital stock could trigger a reduction in the amount of

net operating loss

carry-forwards that we may be able to utilize for income tax purposes;

●

the risks that our dividends, share repurchases and discretionary bonuses are

limited by regulation to the

maintenance of a capital conservation buffer of 2.5% and our future earnings

and “eligible retained earnings” over

rolling four calendar quarter periods;

●

other factors and risks described under “Risk Factors” herein, in our Annual Report

on Form 10-K as of and for

the year ended December 31, 2023 filed with the United States Securities and Exchange

Commission (the

“Commission” or “SEC”), and in any of our subsequent reports that we make with the SEC

under the Exchange

Act.

All written or oral forward-looking statements that are we make or are

attributable to us are expressly qualified in their

entirety by this cautionary notice.

We have no obligation and

do not undertake to update, revise or correct any of the

forward-looking statements after the date of this report, or after the respective dates on which such

statements otherwise are

made.

Summary of Results of Operations

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands, except per share amounts)

2024

2023

2024

2023

Net interest income (a)

6,728

6,994

13,405

14,211

Less: tax-equivalent adjustment

106

214

Net interest income (GAAP)

6,709

6,888

13,366

13,997

Noninterest income

896

791

1,783

1,583

Total revenue

7,605

7,679

15,149

15,580

Provision for (reversal of) credit losses

(123)

(362)

211

(296)

Noninterest expense

5,519

5,825

11,194

11,429

Income tax expense

475

288

639

555

Net earnings

1,734

1,928

3,105

3,892

Basic and diluted earnings per share

0.50

0.55

0.89

1.11

(a) Tax-equivalent.

See "Table 1 - Explanation of Non-GAAP Financial Measures."

Financial Summary

The Company’s net earnings were $3.1

million for the first six months of 2024,

compared to $3.9 million for the first six

months of 2023.

Basic and diluted earnings per share were $0.89 per share for the first six months of 2024,

compared to

$1.11 per share for the first six months of 2023.

Net interest income (tax-equivalent) was $13.4

million for the first six months of 2024, a 6% decrease compared to $14.2

million for the first six months of 2023.

This decrease was primarily due to a smaller balance sheet and a decrease

in the

Company’s net interest margin.

The Company’s net interest

margin (tax-equivalent) was 3.05% for the first six months of

2024 compared to 3.10% for the first six months of 2023.

This decrease was primarily due to increased cost of interest

bearing deposits,

which was partially offset by a more favorable asset mix and higher yields

on interest earning assets.

Average loans for the first six

months of 2024 were $567.4 million, a 12% increase from the first six months of 2023

Average total securities for the

first six months of 2024 were $262.9 million compared to $402.8

million for the first six

months of 2023.

The decrease was primarily the result of the Company’s

balance sheet repositioning strategy in the fourth

quarter of 2024.

See “Results of Operations – Average

Balance Sheet and Interest Rates” and “Net Interest Income and

Margin” below.

At June 30, 2024, the Company’s allowance

for credit losses was $7.1 million, or 1.24% of total loans, compared to $6.9

million, or 1.23% of total loans, at December 31, 2023, and $6.6

million, or 1.27% of total loans, at June 30, 2023.

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The Company recorded a provision for credit losses during the first six months of 2024

of $0.2 million, compared to a

negative provision of $0.3

million during the first six months of 2023.

The provision for credit losses under CECL reflects

the Company’s evaluation of its credit risk profile

and its future economic outlook and forecasts.

Our CECL model is

largely influenced by economic factors including, most notably,

the anticipated unemployment rate.

The increase in the

provision for credit losses during the first six months of 2024,

as compared to the first six months of 2023, was related to

changes in the composition of, and increases in, loans as well as changes in the economic

forecasts used in our CECL

model.

Noninterest income was $1.8 million in the first six months of 2024,

compared to $1.6 million in the first six months of

2023.

The increase was primarily related to an increase in mortgage lending income and other

noninterest income.

Noninterest expense was $11.2 million in the first six

months of 2024,

compared to $11.4 million for the first six months of

2023.

The decrease was primarily related to decreases in net occupancy and equipment expense

and other noninterest

expense.

These decreases were partially offset by an increase

in salaries and benefits expense.

Income tax expense was $0.6 million for both the first six months of 2024

and 2023.

The Company's effective tax rate for

the first six months of 2024 was 17.07%, compared to 12.48% in the first six months of 2023.

The Company’s effective

income tax rate is affected principally by tax-exempt earnings

from the Company’s investment in

municipal securities,

bank-owned life insurance (“BOLI”), and New Markets Tax

Credits (“NMTCs”).

The effective tax rate increased primarily

due to a decrease in the Company’s investment in

municipal securities following the balance sheet restructuring in the

fourth quarter of 2023, and the adoption of FASB

ASU 2023-02 Investments – Equity Method and Joint Ventures

(Topic

323) which allows the proportional amortization method for our NMTC

investments, on January 1, 2024.

With the

adoption of this ASU, amortization of NMTCs are now included in income tax expense

rather than noninterest expense.

The Company paid cash dividends of $0.27 per share in the first six months of 2024

and 2023.

At June 30, 2024, the

Bank’s regulatory capital ratios

were well above the minimum amounts required to be “well capitalized” under current

regulatory standards with a total risk-based capital ratio of 15.49%,

a tier 1 leverage ratio of 10.39% and a common equity

tier 1 (“CET1”) ratio of 14.47% at June 30, 2024.

For the second quarter of 2024, net earnings were $1.7 million, or $0.50

per share, compared to $1.9 million, or $0.55 per

share, for the second quarter of 2023.

Net interest income (tax-equivalent) was $6.7 million for the second quarter of 2024

compared to $7.0 million for the second quarter of 2023.

This decrease was primarily due to increases in the cost of

interest bearing deposits.

The Company’s net interest

margin (tax-equivalent) was 3.06% in the second quarter of 2024

compared to 3.03% in the second quarter of 2023.

The increase was primarily due a more favorable asset mix and higher

yields on interest earning assets.

The Company recorded a negative provision for credit losses during the second quarter

2024 of $0.1

million, compared to a negative provision of $0.4

million for the second quarter of 2023.

Noninterest income

was $0.9 million for the second quarter of 2024 compared to $0.8 million for the second

quarter of 2023.

Noninterest

expense was $5.5 million in the second quarter of 2024 compared to $5.8 million for

the second quarter of 2023.

Income

tax expense was $0.5

million for the second quarter of 2024,

compared to $0.3 million for the second quarter of 2023.

This

increase was primarily due to an increase in the Company’s

effective tax rate, which increased to 21.50% in the second

quarter of 2024 from 13.00% in the second quarter of 2023.

This increase was related to a decrease in the Company’s

investment in municipal securities, and the adoption of ASU 2023-02, as described

above.

CRITICAL ACCOUNTING POLICIES

The accounting principles we follow and our methods of applying these principles

conform with U.S. GAAP and with

general practices within the banking industry.

There have been no significant changes to our Critical Accounting Estimates

as described in our Form 10-K.

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RESULTS

OF OPERATIONS

Average Balance

Sheet and Interest Rates

Six months ended June 30,

2024

2023

Average

Yield/

Average

Yield/

(Dollars in thousands)

Balance

Rate

Balance

Rate

Loans and loans held for sale

567,434

5.12%

507,176

4.68%

Securities - taxable

252,623

2.21%

348,066

2.14%

Securities - tax-exempt

10,294

3.65%

54,741

3.76%

Total securities

262,917

2.27%

402,807

2.36%

Federal funds sold

17,669

5.50%

5,619

4.77%

Interest bearing bank deposits

36,171

5.33%

9,805

4.61%

Total interest-earning assets

884,191

4.29%

925,407

3.67%

Deposits:

NOW

193,755

1.37%

188,491

0.57%

Savings and money market

248,227

0.71%

296,425

0.48%

Time deposits

195,863

3.34%

160,102

1.71%

Total interest-bearing deposits

637,845

1.72%

645,018

0.81%

Short-term borrowings

1,262

0.48%

3,443

1.82%

Total interest-bearing liabilities

639,107

1.71%

648,461

0.82%

Net interest income and margin (tax-equivalent)

13,405

3.05%

14,211

3.10%

Net Interest Income and Margin

Net interest income (tax-equivalent) was $13.4 million for the first six months of

2024, a 6% decrease compared to $14.2

million for the first six months of 2023.

This decrease was primarily due to a decline in the Company’s

net interest margin

(tax-equivalent).

The Company’s net interest

margin (tax-equivalent) was 3.05% in the first six months of 2024

compared

to 3.10% in the first six months of 2023.

This decrease was primarily due to higher market interest rates, which increased

our cost of funds, generally, and

changes in our deposit mix to higher cost interest bearing deposits, which

was partially

offset by a more favorable asset mix and higher yields on interest-earning

assets.

The cost of interest-bearing liabilities

increased to 171 basis points in the first six months ended months of 2024,

compared to 82 basis points in the first six

months ended months of 2023.

Average interest bearing deposits

were $637.5 million during the six months ended June

30, 2024, a 1% decrease compared to $7.2 million during the first six months of 2023.

As of June 30, 2024, interest

bearing deposits were 72% of total deposits compared to 70% on June 30, 2023.

Since March 2022,

the Federal Reserve

increased the target federal funds range from 0 – 0.25% to 5.25

– 5.50%.

The tax-equivalent yield on total interest-earning assets increased by 62 basis points

to 4.29% in the first six months of

2024 compared to 3.67% in the first six months of 2023.

This increase was primarily due to the Company’s

balance sheet

repositioning strategy in the fourth quarter of 2023, which improved our asset

mix, and higher market interest rates on

interest earning assets.

The cost of total interest-bearing liabilities increased by 89 basis points to

1.71% in the first six months of 2024 compared

to 0.82% in the first six months of 2023.

Our deposit costs may continue to increase as the Federal Reserve maintains or

increases its target federal funds rate, market interest rates increase,

and as customer behaviors change as a result of

inflation and higher market interest rates, and we compete for deposits against other banks,

money market mutual funds,

Treasury securities and other interest bearing alternative investments.

The Company continues to deploy various asset liability management strategies

to manage its risks from interest rate

fluctuations. Deposit and loan pricing remain competitive in our

markets.

We believe this challenging

rate environment

will continue throughout 2024.

Our ability to compete and manage our deposit costs until our interest-earning

assets

reprice and we generate new loans with current market interest rates will be important

to our net interest margin during

2024.

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Provision for Credit Losses

On January 1, 2023, we adopted ASC 326 and its CECL methodology,

which requires us to estimate all expected credit

losses over the remaining life of our loans. Accordingly,

the provision for credit losses represents a charge to earnings

necessary to establish an allowance for credit losses that, in management's evaluation,

is adequate to provide coverage for

all expected credit losses. The Company recorded a provision for credit losses during the

first six months of 2024 of $0.2

million, compared to a negative provision for credit losses of $0.3 million during the

first six months of 2023.

Provision

expense is affected by organic loan growth in our loan portfolio,

our internal assessment of the credit quality of the loan

portfolio, our expectations about future economic conditions and net charge-offs.

Our CECL model is largely influenced

by economic factors including, most notably,

the anticipated

unemployment rate, which may be affected by monetary

policy.

The increase in the provision for credit losses in the first quarter of 2024,

as compared to the first quarter of 2023,

was related to changes in the composition of, and increases in, loans as well as changes in the economic

forecasts used in

our CECL model.

Our allowance for credit losses reflects an amount we believe appropriate

based on our allowance assessment

methodology, to adequately cover

all expected credit losses as of the date the allowance is determined.

At June 30, 2024,

the Company’s allowance for credit

losses was $7.1 million, or 1.24% of total loans, compared to $6.9 million, or 1.23% of

total loans, at December 31, 2023, and $6.6 million, or 1.27% of total loans, at June 30, 2023.

Noninterest Income

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

Service charges on deposit accounts

153

154

309

308

Mortgage lending income

180

142

330

235

Bank-owned life insurance

201

224

Other

464

427

943

816

Total noninterest income

896

791

1,783

1,583

The Company’s income from mortgage lending

is primarily attributable to the (1) origination and sale of mortgage loans

and (2) servicing of mortgage loans. Origination income, net, is comprised of gains or losses

from the sale of the mortgage

loans originated, origination fees, underwriting fees, and other fees associated

with the origination of loans, which are

netted against the commission expense associated with these originations. The

Company’s normal practice is to originate

mortgage loans for sale in the secondary market and to either sell or retain the associated

MSRs when the loan is sold.

MSRs are recognized based on the fair value of the servicing right on the date the corresponding

mortgage loan is sold.

Subsequent to the date of transfer, the Company

has elected to measure its MSRs under the amortization method.

Servicing

fee income is reported net of any related amortization expense.

The Company evaluates MSRs for impairment on a quarterly basis.

Impairment is determined by grouping MSRs by

common predominant characteristics, such as interest rate and loan type.

If the aggregate carrying amount of a particular

group of MSRs exceeds the group’s aggregate fair

value, a valuation allowance for that group is established.

The valuation

allowance is adjusted as the fair value changes.

An increase in mortgage interest rates typically results in an increase in the

fair value of the MSRs while a decrease in mortgage interest rates typically results in a decrease

in the fair value of MSRs.

The following table presents a breakdown of the Company’s

mortgage lending income.

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

Origination income

142

Servicing fees, net

188

174

Total mortgage lending income

180

142

330

235

The Company’s income from mortgage lending

typically fluctuates as mortgage interest rates change and is primarily

attributable to the origination and sale of mortgage loans.

The increase in mortgage lending income was primarily related

to the Company increasing the number of mortgage loans held for sale during 2024

relative to the number of mortgage

loans held for investment during 2023.

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Income from bank-owned life insurance was $201 thousand and $224

thousand for the first six months of 2024,

and 2023

respectively.

Excluding a $52 thousand non-taxable death benefit received during the first

quarter of 2023, income from

bank-owned life insurance would have been $172 thousand for

the first six months of 2023.

Other noninterest income was $943 thousand for the first six months of 2024,

compared to $816 thousand for the first six

months of 2023.

The increase in other noninterest income was primarily due to increased fee income on one-way

sell

reciprocal deposits sold through the Intrafi network.

Noninterest Expense

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2024

2023

2024

2023

Salaries and benefits

3,140

3,038

6,211

5,965

Net occupancy and equipment

603

787

1,366

1,586

Professional fees

314

299

640

637

Other

1,462

1,701

2,977

3,241

Total noninterest expense

5,519

5,825

11,194

11,429

The increase in salaries and benefits was primarily due to routine annual increases in

salaries and wages.

The decrease in net occupancy and equipment expense was primarily due to an increase

in leasing income.

The decrease in other noninterest expense was primarily due to the Company’s

adoption of ASU 2023-02 which allows the

proportional amortization method for our NMTC investments, on January 1, 2024

With the adoption of this ASU,

amortization of NMTCs are now included in income tax expense.

During the first six months of 2023, other noninterest

expense included $204 thousand related to our equity method investment in NMTCs.

Income Tax

Expense

Income tax expense was $0.6 million for both the first six months of both 2024

and 2023.

The Company's effective tax rate

for the first six months of 2024 was 17.07%, compared to 12.48% in the first six

months of 2023.

The Company’s effective

income tax rate is affected principally by tax-exempt earnings

from the Company’s investment in

municipal securities,

BOLI, and NMTCs.

The effective tax rate increased primarily due to a decrease in the Company’s

investment in municipal

securities following the balance sheet restructuring in the fourth quarter of 2023,

and the adoption of FASB

ASU 2023-02

Investments – Equity Method and Joint Ventures

(Topic 323)

which allows the proportional amortization method for our

NMTC investments, on January 1, 2024.

With the adoption of this ASU, amortization of NMTCs

are now included in

income tax expense rather than noninterest expense.

BALANCE SHEET ANALYSIS

Securities

Securities available-for-sale were $254.4

million at June 30, 2024,

compared to $270.9 million at December 31, 2023.

This

decrease reflects a $13.5 million decrease in the amortized cost basis of securities available

-for-sale and a decrease in the

fair value of securities available-for-sale of $3.0 million.

The average annualized tax-equivalent yields earned on total

securities were 2.27%

in the first six months of 2024 and 2.36% in the first six months of 2023.

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Loans

2024

2023

Second

First

Fourth

Third

Second

(In thousands)

Quarter

Commercial and industrial

77,627

78,920

73,374

66,014

61,880

Construction and land development

73,688

58,909

68,329

70,129

63,874

Commercial real estate

297,232

300,484

287,307

281,964

275,801

Residential real estate

119,427

118,240

117,457

117,150

109,834

Consumer installment

10,094

10,967

10,827

10,353

9,022

Total loans

578,068

567,520

557,294

545,610

520,411

Total loans

were $578.1 million at June 30, 2024, a 4% increase compared to $557.3 million at December 31,

2023.

Four

loan categories represented the majority of the loan portfolio at June 30, 2024:

commercial real estate (51%), residential

real estate (21%), commercial and industrial (13%) and construction and land development

(13%).

Approximately 21% of

the Company’s commercial real

estate loans were classified as owner-occupied at June 30,

2024.

Within the residential real estate portfolio segment, the Company

had junior lien mortgages of approximately $10.1 million,

or 2% of total loans, and $8.7 million, or 2%, of total loans at June 30, 2024 and December

31, 2023, respectively.

For

residential real estate mortgage loans with a consumer purpose, the Company had no loans

that required interest only

payments at June 30, 2024 and December 31, 2023. The Company’s

residential real estate mortgage portfolio does not

include any option or hybrid ARM loans, subprime loans, or any material amount

of other consumer mortgage products

which are generally viewed as high risk.

The average yield earned on loans and loans held for sale was 5.12% in the first six

months of 2024 and 4.68% in the first

six months of 2023.

The specific economic and credit risks associated with our loan portfolio include, but are

not limited to, the effects of

current economic conditions, including inflation and the continuing increases in

market interest rates, remaining COVID-19

pandemic effects including supply chain disruptions, reduced

commercial office occupancy levels, housing supply

shortages and inflation on our borrowers’ cash flows, real estate market sales

volumes and liquidity,

valuations used in

making loans and evaluating collateral, reduced credit availability

(especially for commercial real estate) generally and

higher costs of financing properties, which reduce the transaction and dollar

volumes of commercial real estate property

sales.

Other risks we face include, among other things, real estate industry concentrations,

competitive pressures from a

wide range of other lenders, deterioration in certain credits, interest rate fluctuations, reduced

collateral values or non-

existent collateral, title defects, inaccurate appraisals, financial deterioration

of borrowers, fraud, and any violation of

applicable laws and regulations. Various

projects financed earlier that were based on lower interest rate assumptions than

currently in effect may not be as profitable or successful at the higher

interest rates currently in effect and currently

expected in the future.

The Company attempts to reduce these economic and credit risks through its loan-to-value

guidelines for collateralized

loans, investigating the creditworthiness of borrowers and monitoring borrowers’ financial

position. Also, we have

established and periodically review,

lending policies and procedures. Banking regulations limit a bank’s

credit exposure by

prohibiting unsecured loan relationships that exceed 10% of its capital; or

20% of capital, if loans in excess of 10% of

capital are fully secured. Under these regulations, we are prohibited from having secured

loan relationships in excess of

approximately $22.4 million.

Furthermore, we have an internal limit for aggregate credit exposure (loans outstanding

plus

unfunded commitments) to a single borrower of $20.2 million. Our loan policy requires that

the Loan Committee of the

Board of Directors approve any loan relationships that exceed this internal limit.

At June 30, 2024, the Bank had one loan

relationship exceeding our internal limit.

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We periodically analyze

our commercial and industrial and commercial real estate loan portfolios to determine if

concentration of credit risk exists in any one or more industries. We

use classification systems broadly accepted by the

financial services industry in order to categorize our commercial borrowers.

Loan concentrations to borrowers in the

following classes exceeded 25% of the Bank’s total risk

-based capital at June 30, 2024 and December 31, 2023.

June 30,

December 31,

(Dollars in thousands)

2024

2023

Lessors of 1-4 family residential properties

58,470

56,912

Multi-family residential properties

44,135

45,841

Hotel/motel

38,542

39,131

Office Buildings

30,554

30,871

Allowance for Credit Losses

On January 1, 2023, we adopted ASC 326,

which introduced the current expected loss (“CECL”) methodology,

which

requires us to estimate all expected credit losses over the remaining life of our loan portfolio.

Accordingly, beginning in

2023, the allowance for credit losses represents an amount that, in management's evaluation,

is adequate to provide

coverage for all expected future credit losses on outstanding loans. As of June 30,

2024 and December 31, 2023, our

allowance for credit losses was approximately $7.1 million and $6.9

million, respectively, which our

management believes

to be adequate at each of the respective dates. Our allowance for credit losses as a percentage of total

loans was

1.24% at

June 30, 2024, compared to 1.23% at December 31, 2023.

Our CECL models rely largely on projections of macroeconomic

conditions to estimate future credit losses.

Macroeconomic factors used in the model include the Alabama unemployment

rate, the Alabama home price index, the

national commercial real estate price index and the Alabama gross state product.

Projections of these macroeconomic

factors, obtained from an independent third party,

are utilized to predict quarterly rates of default.

Under the CECL methodology the allowance for credit losses is measured

on a collective basis for pools of loans with

similar risk characteristics, and for loans that do not share similar risk characteristics

with the collectively evaluated pools,

evaluations are performed on an individual basis. Losses are predicted over

a period of time determined to be reasonable

and supportable, and at the end of the reasonable and supportable period

losses are reverted to long term historical averages.

At June 30, 2024, reasonable and supportable periods of 4 quarters were utilized

followed by an 8 quarter straight line

reversion period to long term averages.

A summary of the changes in the allowance for credit losses and certain asset quality

ratios for the second quarter of 2024

and the previous four quarters is presented below.

2024

2023

Second

First

Fourth

Third

Second

(Dollars in thousands)

Quarter

Balance at beginning of period

7,215

6,863

6,778

6,634

6,821

Charge-offs:

Commercial and industrial

(9)

—

(164)

—

Consumer installment

(19)

(24)

(20)

(18)

(56)

Total charge

-offs

(28)

(24)

(184)

(18)

(56)

Recoveries

200

Net recoveries (charge-offs)

(9)

(173)

(14)

144

Provision for (reversal of) credit losses

(64)

285

258

158

(331)

Ending balance

7,142

7,215

6,863

6,778

6,634

as a % of loans

1.24

1.27

1.23

1.24

1.27

as a % of nonperforming loans

900

822

753

559

577

Net (recoveries) charge-offs as % of average loans (a)

0.01

(0.05)

0.13

0.01

(0.11)

(a) Net (recoveries) charge-offs are annualized.

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Nonperforming Assets

At June 30, 2024 and December 31, 2023, the Company had $0.8 million and $0.9

million, respectively, in nonperforming

assets.

The table below provides information concerning total nonperforming assets

and certain asset quality ratios for the second

quarter of 2024 and the previous four quarters.

2024

2023

Second

First

Fourth

Third

Second

(Dollars in thousands)

Quarter

Nonperforming assets:

Nonaccrual loans

794

878

911

1,213

1,149

Total nonperforming assets

794

878

911

1,213

1,149

as a % of loans and other real estate owned

0.14

0.15

0.16

0.22

as a % of total assets

0.08

0.09

0.12

0.11

Nonperforming loans as a % of total loans

0.14

0.15

0.16

0.22

The table below provides information concerning the composition of nonaccrual

loans for the second quarter of 2024 and

the previous four quarters.

2024

2023

Second

First

Fourth

Third

Second

(In thousands)

Quarter

Nonaccrual loans:

Commercial and industrial

—

162

178

Commercial real estate

753

765

783

801

819

Residential real estate

128

250

152

Consumer installment

—

Total nonaccrual loans

794

878

911

1,213

1,149

The Company discontinues the accrual of interest income when (1) there is a significant

deterioration in the financial

condition of the borrower and full repayment of principal and interest is not expected or

(2) the principal or interest is

90 days or more past due, unless the loan is both well-secured and in the process of collection

The Company had no loans 90 days or more past due and still accruing at June 30, 2024

and December 31, 2023,

respectively.

The Company had no OREO at June 30, 2024 or December 31, 2023.

Deposits

June 30,

December 31,

(In thousands)

2024

2023

Noninterest bearing demand

263,105

270,723

NOW

195,259

190,724

Money market

205,652

148,040

Savings

86,097

88,541

Certificates of deposit under $250,000

100,209

100,572

Certificates of deposit and other time deposits of $250,000 or more

96,083

97,643

Total deposits

946,405

896,243

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Total deposits

were $946.4 million at June 30, 2024, compared to $896.2 million at December 31, 2023.

The increase in

deposits compared to December 31, 2023 was primarily related to a decrease

in reciprocal customer deposits in the one-way

sell program through the Intrafi network.

At June 30, 2024 the Company had no reciprocal deposits sold, compared to

$59.0 million at December 31, 2023.

The Company had no brokered deposits at June 30, 2024 or December 31,

2023

compared to $16.0 million one year earlier.

Noninterest-bearing deposits were $263.1

million, or 28% of total deposits, at

June 30, 2024, compared to $270.7 million, or 30% of total deposits at December 31,

2023.

The average rate paid on total interest-bearing deposits was 1.72% in the first six

months of 2024,

compared to 0.81% in

first six months of 2023.

At June 30, 2024, estimated uninsured deposits totaled $364.9 million, or 39%

of total deposits, compared to $356.3

million, or 40% of total deposits at December 31, 2023.

During 2023, the Bank began participating in the Certificates of

Deposit Account Registry Service (the “CDARS”) and the Insured Cash Sweep

product (“ICS”), which provide for

reciprocal (“two-way”) transactions among banks facilitated by IntraFi for the purpose

of improving the FDIC insurance

coverage for our depositors.

The total of reciprocal deposits at June 30, 2024 was $55.6

million, compared to none at

December 31, 2023.

Uninsured amounts are estimated based on the portion of account balances in excess of FDIC

insurance limits.

The Bank’s uninsured deposits at

June 30, 2024 and December 31, 2023 include approximately $222.1

million and $206.2 million, respectively,

of deposits of state, county and local governments that are collateralized by

securities having an equal fair value to such deposits.

The estimated uninsured time deposits by maturity as of June 30,

2024 is presented below.

(Dollars in thousands)

June 30, 2024

Maturity of:

3 months or less

25,659

Over 3 months through 6 months

36,405

Over 6 months through 12 months

4,667

Over 12 months

2,102

Total estimated uninsured

time deposits

68,833

The FDIC issued a special assessment of 3.36 basis points for a projected eight quarters on large

banks with more than $5

billion of uninsured deposits as a result of the systemic risk determination to insure all depositors

in connection with the

March 2023 failures of Silicon Valley

Bank and Signature Bank.

These special assessments do not apply to the Bank.

Other Borrowings and Available

Credit

The Company had no long-term debt at June 30, 2024 and December 31, 2023.

The Bank utilizes short and long-term non-

deposit borrowings from time to time. Short-term borrowings generally consist

of federal funds purchased and securities

sold under agreements to repurchase with an original maturity of one year or less.

The Bank had available federal funds

lines totaling $61.0 million with no federal funds borrowings outstanding at June

30, 2024, and December 31, 2023,

respectively. The Company had

no securities sold under agreements to repurchase, which were entered

into on behalf of

certain customers at June 30, 2024 compared to $1.5 million at December 31, 2023.

At June 30, 2024 and December 31,

2023,

the Bank had no borrowings from the Federal Reserve discount window and never had

any borrowings under the

Federal Reserve’s Bank Term

Facility Program (“BTFP”).

The BTFP ceased making new loans on March 11,

2024.

The Bank is a member of the FHLB of Atlanta and has borrowed, and may in the

future borrow from time to time under the

FHLB of Atlanta’s advance program to

obtain funding for its growth.

FHLB advances include both fixed and variable

terms and are taken out with varying maturities, and are generally secured by eligible assets.

The Bank had no borrowings

under FHLB of Atlanta’s advance program at

June 30, 2024 and December 31, 2023, respectively.

At those dates, the

Bank had $293.7

million and $309.1 million, respectively,

of available lines of credit at the FHLB of Atlanta.

Advances

include both fixed and variable interest rates and varying maturities

may be used.

The Bank also has access to the FRB

discount window.

The average rate paid on the Bank’s short-term

borrowings was 0.48% in the first six months of 2024

compared to 1.82%

in the first six months of 2023.

The Bank had average short term borrowings of $1.3 million in the first six months of

2024, a 62% decrease compared to $2.1 million during the first six months of 2023.

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CAPITAL ADEQUACY

The Company’s consolidated

stockholders’ equity was $75.2 million and $76.5 million as of June 30, 2024

and December

31, 2023, respectively. The decrease

from December 31, 2023 was primarily driven by an other comprehensive loss due

the change in unrealized gains/losses on securities available-for-sale,

net of tax of $2.2 million, cash dividends of $1.9

million, and the cumulative effect of adopting NMTC accounting

standard of $0.3

million, partially offset by net earnings

of $3.1 million.

Total unrealized losses, net of tax,

on available-for-sale securities increased

from $29.0 million on

December 31, 2023 to $31.2 million June 30, 2024.

These unrealized losses do not affect the Bank’s

capital for regulatory

capital purposes.

The Company paid cash dividends of $0.54 per share for both the first six months

of 2024 and first six months of 2023.

On January 1, 2015, the Company and Bank became subject to the rules of the Basel III regulatory

capital framework and

related Dodd-Frank Wall

Street Reform and Consumer Protection Act changes.

The rules included the implementation of a

capital conservation buffer that is added to the minimum requirements

for capital adequacy purposes.

The capital

conservation buffer was subject to a three-year phase-in period that began on January 1,

2016 and was fully phased-in on

January 1, 2019 at 2.5%.

A banking organization with a conservation buffer of less than the

required amount will be

subject to limitations on capital distributions, including dividend payments and certain discretionary

bonus payments to

executive officers.

At June 30, 2024, the Bank’s ratio

was sufficient to meet the fully phased-in conservation buffer,

and

did not limit capital distributions or discretionary bonuses.

On August 26, 2020, the Federal Reserve and the other federal banking regulators adopted

a final rule that amended the

capital conservation buffer.

The new rule revises the definition of “eligible retained income”

for purposes of the maximum

payout ratio to allow banking organizations to more freely use their capital buffers

to promote lending and other financial

intermediation activities, by making the limitations on capital distributions

more gradual.

The eligible retained income is

now the greater of (i) net income for the four preceding quarters, net of distributions and associated

tax effects not reflected

in net income; and (ii) the average of all net income over the preceding four quarters.

This rule only affects the capital

buffers, and banking organizations were encouraged

to make prudent capital distribution decisions.

The Federal Reserve has treated us as a “small bank holding company’ under the Federal

Reserve’s Small Bank Holding

Company Policy.

Accordingly, our capital adequacy is evaluated

at the Bank level, and not for the Company and its

consolidated subsidiaries.

The Bank’s tier 1 leverage ratio

was 10.39%, CET1 risk-based capital ratio was 14.47%, tier 1

risk-based capital ratio was 14.47%, and total risk-based capital ratio

was 15.49% at June 30, 2024. These ratios exceed the

minimum regulatory capital percentages of 5.0% for tier 1 leverage ratio, 6.5%

for CET1 risk-based capital ratio, 8.0% for

tier 1 risk-based capital ratio, and 10.0% for total risk-based capital ratio

to be considered “well capitalized.”

The Bank’s

capital conservation buffer was 7.49% at June 30, 2024.

On July 27, 2023, the Federal Reserve, the Comptroller of the Currency and the FDIC issued

a joint notice of proposed

rulemaking to implement the Basel III endgame components.

The proposal which is subject to public comment and change

only applies to banks and holding companies with $100 billion or more of assets.

The proposal includes provisions dealing

with:

●

Credit risk, which arises from the risk that an obligor fails to perform on an obligation;

●

Market risk, which results from changes in the value of trading positions;

●

Operational risk, which is the risk of losses resulting from inadequate or

failed internal process, people, and

systems, or from external events; and

●

Credit valuation adjustment risk, which results from the risk of losses on certain derivative

contracts.

The Basel III endgame regulatory proposals are not applicable to the Company or the Bank

The Federal Reserve has

indicated that it is revising and expects to re-propose these rules applicable to larger

organizations than the Company.

MARKET AND LIQUIDITY RISK MANAGEMENT

Management’s objective is to manage assets and

liabilities to provide a satisfactory,

consistent level of profitability within

the framework of established liquidity,

loan, investment, borrowing, and capital policies. The Bank’s

Asset Liability

Management Committee (“ALCO”) is charged with the responsibility

of monitoring these policies, which are designed to

ensure an acceptable asset/liability composition. Two

critical areas of focus for ALCO are interest rate risk and liquidity

risk management.

Table of Contents

Interest Rate Risk Management

In the normal course of business, the Company is exposed to market risk arising from fluctuations

in interest rates. ALCO

measures and evaluates interest rate risk so that the Bank can meet customer demands for

various types of loans and

deposits. Measurements used to help manage interest rate sensitivity include an earnings simulation

model and an economic

value of equity (“EVE”) model.

Earnings simulation

. Management believes that interest rate risk is best estimated by our earnings simulation

modeling.

Forecasted levels of earning assets, interest-bearing liabilities, and off

-balance sheet financial instruments are combined

with ALCO forecasts of market interest rates for the next 12 months and other

factors in order to produce various earnings

simulations and estimates. To

help limit interest rate risk, we have guidelines for earnings at risk which seek to limit the

variance of net interest income from gradual changes in interest rates.

For changes up or down in rates from management’s

flat interest rate forecast over the next 12 months, policy limits for net interest income variances

are as follows:

●

+/- 20% for a gradual change of 400 basis points

●

+/- 15% for a gradual change of 300 basis points

●

+/- 10% for a gradual change of 200 basis points

●

+/- 5% for a gradual change of 100 basis points

While a gradual change in interest rates was used in the above analysis to provide an estimate

of exposure under these

scenarios, our modeling under both a gradual and instantaneous change in interest rates indicates

our balance sheet is

liability sensitive over the forecast period

of 12 months.

At June 30, 2024, our earnings simulation model indicated that we were in compliance

with the policy guidelines noted

above.

Economic Value

of Equity

. EVE measures the extent that the estimated economic values of our assets, liabilities, and off-

balance sheet items will change as a result of interest rate changes. Economic values are

estimated by discounting expected

cash flows from assets, liabilities, and off-balance sheet items,

which establishes a base case EVE. In contrast with our

earnings simulation model, which evaluates interest rate risk over a 12-month timeframe,

EVE uses a terminal horizon

which allows for the re-pricing of all assets, liabilities, and off-balance sheet items.

Further, EVE is measured using values

as of a point in time and does not reflect any actions that ALCO might take in responding to

or anticipating changes in

interest rates, or market and competitive conditions.

To help limit interest rate risk,

we have stated policy guidelines for an

instantaneous basis point change in interest rates, such that our EVE should not decrease from our

base case by more than

the following:

●

35% for an instantaneous change of +/- 400 basis points

●

30% for an instantaneous change of +/- 300 basis points

●

25% for an instantaneous change of +/- 200 basis points

●

15% for an instantaneous change of +/- 100 basis points

At June 30, 2024, our EVE model indicated that we were in compliance

with our policy guidelines.

Each of the above analyses may not, on its own, be an accurate indicator of how our net interest

income will be affected by

changes in interest rates. Income associated with interest-earning assets and costs associated

with interest-bearing liabilities

may not be affected uniformly by changes in interest rates. In addition,

the magnitude and duration of changes in interest

rates may have a significant impact on net interest income. For example, although certain

assets and liabilities may have

similar maturities or periods of repricing, they may react in different

degrees to changes in market interest rates, and other

economic and market factors, including market perceptions.

Interest rates on certain types of assets and liabilities fluctuate

in advance of changes in general market rates, while interest rates on other types of assets

and liabilities may lag behind

changes in general market rates. In addition, certain assets, such as adjustable rate

mortgage loans, have features (generally

referred to as “interest rate caps and floors”) which limit changes in interest rates.

Prepayments

and early withdrawal levels

also could deviate significantly from those assumed in calculating the maturity of certain instruments.

The ability of many

borrowers to service their debts also may decrease during periods of rising interest rates or economic

stress, which may

differ across industries and economic sectors. ALCO reviews each of the

above interest rate sensitivity analyses along with

several different interest rate scenarios in seeking satisfactory,

consistent levels of profitability within the framework of the

Company’s established liquidity,

loan, investment, borrowing, and capital policies.

Table of Contents

The Company may also use derivative financial instruments to improve the balance between

interest-sensitive assets and

interest-sensitive liabilities, and as a tool to manage interest rate sensitivity

while continuing to meet the credit and deposit

needs of our customers. From time to time, the Company also may enter into back-to-back

interest rate swaps to facilitate

customer transactions and meet their financing needs. These interest rate swaps qualify

as derivatives, but are not

designated as hedging instruments. At June 30, 2024 and December 31, 2023,

the Company had no derivative contracts

designated as part of a hedging relationship to assist in managing its interest rate sensitivity.

Liquidity Risk Management

Liquidity is the Company’s ability to convert

assets into cash equivalents in order to meet daily cash flow requirements,

primarily for deposit withdrawals, loan demand and maturing obligations.

The Company seeks to manage its liquidity to

manage or reduce its costs of funds by maintaining liquidity believed adequate

to meet its anticipated funding needs, while

balancing against excessive liquidity that likely would reduce earnings due to the

cost of foregoing alternative higher-

yielding assets.

Liquidity is managed at two levels. The first is the liquidity of the Company.

The second is the liquidity of the Bank. The

management of liquidity at both levels is essential, because the Company and the Bank are

separate and distinct legal

entities with different funding needs and sources, and each are

subject to regulatory guidelines and requirements.

The

Company depends upon dividends from the Bank for liquidity to pay its operating expenses,

debt obligations and

dividends.

The Bank’s payment of dividends depends

on its earnings, liquidity,

capital and the absence of regulatory

restrictions on such dividends.

The primary source of funding and liquidity for the Company has been dividends received

from the Bank.

If needed, the

Company could also borrow money,

or issue common stock or other securities.

Primary uses of funds by the Company

include payment of Company expenses, dividends paid to stockholders

and Company stock repurchases.

Primary sources of funding for the Bank include customer deposits, other borrowings,

interest payments on earning assets,

repayment and maturity of securities and loans, sales of securities, and the

sale of loans, particularly residential mortgage

loans. The Bank has access to federal funds lines from various banks and borrowings

from the Federal Reserve discount

window. In addition to these sources,

the Bank is eligible to participate in the FHLB of Atlanta’s

advance program to obtain

funding for growth and liquidity.

Advances include both fixed and variable terms and may be taken out with varying

maturities. At June 30, 2024, the Bank had no FHLB of Atlanta advances outstanding

and available credit from the FHLB

of $293.7

million. At June 30, 2024, the Bank also had $61.0 million of available federal funds lines

with no borrowings

outstanding. Primary uses of funds include repayment of maturing obligations and

growing the loan portfolio.

The

Company also has access to the FRB discount window.

Management believes that the Company and the Bank have adequate sources of liquidity to

meet all their respective known

contractual obligations and unfunded commitments, including loan commitments

and reasonably

expected borrower,

depositor, and creditor requirements over the next twelve

months.

Off-Balance Sheet Arrangements, Commitments, Contingencies and Contractual

Obligations

At June 30, 2024, the Bank had outstanding standby letters of credit of $0.5 million and

unfunded loan commitments

outstanding of $63.8 million.

Because these commitments generally have fixed expiration dates and

many will expire

without being drawn upon, the total commitment level does not necessarily represent future

cash requirements. If needed, to

fund these outstanding commitments, the Bank could use its cash and cash equivalents

deposits with other banks, liquidate

federal funds sold or a portion of our securities available-for-sale, or draw on its

available credit facilities or raise deposits.

Mortgage lending activities

We generally sell residential

mortgage loans in the secondary market to Fannie Mae while retaining the servicing of these

loans. The sale agreements for these residential mortgage loans with Fannie Mae and other

investors include various

customary representations and warranties regarding the origination and characteristics

of the residential mortgage loans.

Although the representations and warranties vary among investors, they typically

cover ownership of the loan, validity of

the lien securing the loan, the absence of delinquent taxes or liens against the property securing the

loan, compliance with

loan criteria set forth in the applicable agreement, compliance with applicable federal,

state, and local laws, among other

matters.

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As of June 30, 2024,

the aggregate unpaid principal balance of residential mortgage loans, which we have originated

and

sold, but retained the servicing rights, was $212.1 million.

Although these loans are generally sold on a non-recourse basis,

we may be obligated to repurchase residential mortgage loans or reimburse investors

for losses incurred (make whole

requests) if a loan review reveals a potential breach of seller representations and

warranties.

Upon receipt of a repurchase

or make whole request, we work with investors to arrive at a mutually agreeable

resolution. Repurchase and make whole

requests are typically reviewed on an individual loan by loan basis to validate the claims

made by the investor and to

determine if a contractually required repurchase or make whole event has occurred.

We seek to reduce and

manage the risks

of potential repurchases, make whole requests, or other claims by mortgage loan investors

through our underwriting and

quality assurance practices

and by servicing mortgage loans to meet investor and secondary market standards.

The Company was not required to repurchase any loans during the first six months of

2024 as a result of representation and

warranty provisions contained in the Company’s

sale agreements with Fannie Mae, and had no pending repurchase or

make-whole requests at June 30, 2024.

We service all residential

mortgage loans originated and sold by us to Fannie Mae.

As servicer, our primary duties are to:

(1) collect payments due from borrowers;

(2) advance certain delinquent payments of principal and interest;

(3) maintain

and administer any hazard, title, or primary mortgage insurance policies relating to

the mortgage loans;

(4) maintain any

required escrow accounts for payment of taxes and insurance and administer escrow payments;

and (5) foreclose on

defaulted mortgage loans or take other actions to mitigate the potential losses to investors

consistent with the agreements

governing our rights and duties as servicer.

The agreements under which we act as servicer generally specifies standard

of responsibility for actions taken by us in

such capacity and provides protection against expenses and liabilities incurred by us

when acting in compliance with the

respective servicing agreements.

However, if we commit a material breach of our obligations

as servicer, we may be

subject to termination if the breach is not cured within a specified period following notice.

The standards governing

servicing and the possible remedies for violations of such standards are determined

by our agreements with Fannie Mae and

Fannie Mae’s mortgage servicing

guides.

Remedies could include repurchase of an affected loan.

Although repurchase and make whole requests related to representation and

warranty provisions and servicing activities

have been limited to date, it is possible that requests to repurchase mortgage loans or reimburse

investors for losses incurred

(make whole requests) may increase in frequency if investors more aggressively

pursue all means of recovering losses on

their purchased loans.

As of June 30, 2024, we do not believe that this exposure is material due to the historical level of

repurchase requests and loss trends, in addition to the fact that 99% of our residential

mortgage loans serviced for Fannie

Mae were current as of such date.

We maintain ongoing communications

with our investors and will continue to evaluate

this exposure by monitoring the level and number of repurchase requests as well as the delinquency

rates in our investor

portfolios.

The Bank sells mortgage loans to Fannie Mae and services these on an actual/actual basis.

As a result, the Bank is not

obligated to make any advances to Fannie Mae on principal and interest on such

mortgage loans where the borrower is

entitled to forbearance.

Table of Contents

Effects of Inflation and Changing Prices

The consolidated financial statements and related consolidated financial data presented

herein have been prepared in

accordance with GAAP and practices within the banking industry

which require the measurement of financial position and

operating results in terms of historical dollars without considering the changes in

the relative purchasing power of money

over time due to inflation. Unlike most industrial companies, virtually all the assets and liabilities

of a financial institution

are monetary in nature. As a result, interest rates have a more significant impact on a

financial institution’s performance

than the effects of general levels of inflation.

Inflation can affect our noninterest expenses. It also can affect

our customers’ behaviors, and can affect the interest rates we

have to pay on our deposits and other borrowings, and the interest rates we earn on our earning

assets.

The difference

between our interest expense and interest income is also affected by the shape

of the yield curve and the speeds at which

our assets and liabilities,

respectively, reprice

in response to interest rate changes.

The yield curve continued to be inverted

on June 30, 2024, which means shorter term interest rates are higher than longer term interest

rates.

This results in a lower

spread between our costs of funds and our interest income.

In addition, net interest income could be affected by

asymmetrical changes in the different interest rate indexes, given that

not all of our assets or liabilities are priced with the

same index. Higher market interest rates and reductions in the securities held by the Federal

Reserve to reduce inflation

generally reduce economic activity and may reduce loan demand and growth, and

may adversely affect unemployment

rates.

Inflation and related changes in market interest rates, as the Federal Reserve acts to

meet its long term inflation goal

of 2%, also can adversely affect the values and liquidity of our loans and securities

the value of collateral for our loans, and

the success of our borrowers and such borrowers’ available cash to pay interest on and principal

of our loans to them.

Inflation has been running at levels unseen in decades and, while it has declined

beginning in the latter part of 2023, it has

been persistent through June 30, 2024 and remains above the Federal Reserve’s

long term inflation goal of 2.0% annually.

Beginning in March 2022, the Federal Reserve has been raising target federal

funds interest rates and reducing its securities

holdings in an effort to reduce inflation.

During 2022, the Federal Reserve increased the target federal funds

range from 0 –

0.25% to 4.25 – 4.50%.

The target federal funds rate was increased another 25 basis points on each of January 31,

March 7,

May 3 and July 26, 2023 to 5.25-5.50%, and further increases in the target

federal funds rate may be made if inflation

remains elevated.

The Federal Reserve has indicated it will maintain higher target rates and

restrictive monetary policy to

meet its goals of (i) 2% target inflation rate over the longer term and (ii) maximum employment

goals.

Following its May

1, 2024 meeting, the Federal Reserve’s Open Market

Committee (“FOMC”) reaffirmed its commitment to the 2% inflation

objective and announced that it “does not expect it will be appropriate to reduce the target

range until it has gained greater

confidence that inflation is moving substantially toward 2%.”

Further, the FOMC reduced its monthly reduction of

Treasury securities from $60 billion to $25 billion,

and was maintaining the monthly reduction on agency debt and agency

mortgage-backed securities at $35 billion.

Our deposit costs may increase as the Federal Reserve increases its target

federal funds rate, market interest rates increase,

and as customer savings behaviors change as a result of inflation and customers seeking higher

market interest rates on

deposits and other alternative investments.

Monetary efforts to control inflation may also affect

unemployment which is an

important component in our CECL model used to estimate our allowance

for credit losses.

CURRENT ACCOUNTING DEVELOPMENTS

The following ASU has been issued by the FASB

but is not yet effective.

●

ASU 2023-09,

Income Taxes

(Topic 740):

Improvements to Income Tax

disclosures

ASU 2023-09 seeks to enhance the transparency and decision usefulness of income tax disclosures.

For public business

entities, the new standard is effective for annual periods beginning after

December 15, 2024.

The Company does not

expect the new standard to have a material impact on the Company’s

consolidated financial statements.

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Table 1

– Explanation of Non-GAAP Financial Measures

In addition to results presented in accordance with U.S. generally accepted accounting principles

(GAAP), this quarterly

report on Form 10-Q includes certain designated net interest income amounts

presented on a tax-equivalent basis, a non-

GAAP financial measure, including the presentation and calculation of the efficiency

ratio.

The Company believes the presentation of net interest income on a tax-equivalent

basis provides comparability of net

interest income from both taxable and tax-exempt sources and facilitates comparability

within the industry. Although the

Company believes these non-GAAP financial measures enhance investors’

understanding of its business and performance,

these non-GAAP financial measures should not be considered an alternative to

GAAP.

The reconciliations

of these non-

GAAP financial measures to their most directly comparable GAAP financial

measures are presented below.

2024

2023

Second

First

Fourth

Third

Second

(In thousands)

Quarter

Net interest income (GAAP)

6,709

6,657

6,059

6,272

6,888

Tax-equivalent adjustment

108

106

Net interest income (Tax

-equivalent)

6,728

6,677

6,154

6,380

6,994

Six months ended June 30,

(In thousands)

2024

2023

Net interest income (GAAP)

13,366

13,997

Tax-equivalent adjustment

214

Net interest income (Tax

-equivalent)

13,405

14,211

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Table 2

- Selected Quarterly Financial Data

2024

2023

Second

First

Fourth

Third

Second

(Dollars in thousands, except per share amounts)

Quarter

Results of Operations

Net interest income (a)

6,728

6,677

6,154

6,380

6,994

Less: tax-equivalent adjustment

108

106

Net interest income (GAAP)

6,709

6,657

6,059

6,272

6,888

Noninterest income

896

887

(5,429)

865

791

Total revenue

7,605

7,544

630

7,137

7,679

Provision for (reversal of) credit losses

(123)

334

326

105

(362)

Noninterest expense

5,519

5,675

5,803

5,362

5,825

Income tax expense

475

164

(1,514)

182

288

Net earnings

1,734

1,371

(3,985)

1,488

1,928

Per share data:

Basic and diluted net earnings

0.50

0.39

(1.14)

0.43

0.55

Cash dividends declared

0.27

Weighted average shares outstanding:

Basic and diluted

3,493,699

3,493,663

3,493,614

3,496,411

3,500,064

Shares outstanding

3,493,699

3,493,614

3,499,412

Book value

21.53

21.32

21.90

17.59

20.28

Common stock price

High

19.25

21.55

21.99

22.80

24.32

Low

16.63

18.82

19.72

20.85

18.80

Period end

18.29

19.27

21.28

21.50

21.26

To earnings ratio (b)

101.61

83.78

53.20

7.65

7.21

To book value

122

105

Performance ratios:

Return on average equity

9.63

7.13

(26.40)

8.59

10.37

Return on average assets

0.71

0.56

(1.56)

0.58

0.75

Dividend payout ratio

54.00

69.23

(23.68)

62.79

49.09

Asset Quality:

Allowance for credit losses as a % of:

Loans

1.24

1.27

1.23

1.24

1.27

Nonperforming loans

900

822

753

559

577

Nonperforming assets as a % of:

Loans and other real estate owned

0.14

0.15

0.16

0.22

Total assets

0.08

0.09

0.12

0.11

Nonperforming loans as a % of total loans

0.14

0.15

0.16

0.22

Annualized net (recoveries) charge-offs as a % of average loans

0.01

(0.05)

0.13

0.01

(0.11)

Capital Adequacy: (c)

CET 1 risk-based capital ratio

14.47

14.62

14.52

15.01

15.33

Tier 1 risk-based capital ratio

14.47

14.62

14.52

15.01

15.33

Total risk-based capital ratio

15.49

15.69

15.52

15.98

16.31

Tier 1 leverage ratio

10.39

10.34

9.72

10.26

10.23

Other financial data:

Net interest margin (a)

3.06

3.04

2.65

2.73

3.03

Effective income tax rate

21.50

10.68

(27.53)

10.90

13.00

Efficiency ratio (d)

72.39

75.03

800.41

74.01

74.82

Selected average balances:

Securities

258,228

267,606

354,065

390,772

402,929

Loans, net of unearned income

573,443

560,757

550,938

529,382

512,066

Total assets

978,107

976,930

1,020,476

1,020,980

1,022,874

Total deposits

900,673

897,051

953,674

942,533

942,552

Total stockholders’ equity

72,059

76,948

60,372

69,269

74,404

Selected period end balances:

Securities

254,359

260,770

270,910

373,286

394,079

Loans, net of unearned income

578,068

567,520

557,294

545,610

520,411

Allowance for credit losses

7,142

7,215

6,863

6,778

6,634

Total assets

1,025,054

979,039

975,255

1,030,724

1,026,130

Total deposits

946,405

899,673

896,243

964,602

950,742

Total stockholders’ equity

75,209

74,489

76,507

61,451

70,976

(a) Tax-equivalent. See "Table 1 - Explanation of Non-GAAP Financial Measures."

(b) Calculated by dividing period end share price by

earnings per share for the previous four quarters.

wholly-owned subsidiary, AuburnBank.

(d) Efficiency ratio is the result of noninterest expense divided

by the sum of noninterest income and tax-equivalent net interest

income.

See Table 1 - Explanation of Non-GAAP Measures.

Table of Contents

Table 3

- Selected Financial Data

Six months ended June 30,

(Dollars in thousands, except per share amounts)

2024

2023

Results of Operations

Net interest income (a)

13,405

14,211

Less: tax-equivalent adjustment

214

Net interest income (GAAP)

13,366

13,997

Noninterest income

1,783

1,583

Total revenue

15,149

15,580

Provision for (reversal of) credit losses

211

(296)

Noninterest expense

11,194

11,429

Income tax expense

639

555

Net earnings

3,105

3,892

Per share data:

Basic and diluted net earnings

0.89

1.11

Cash dividends declared

0.54

Weighted average shares outstanding:

Basic and diluted

3,493,681

3,501,098

Shares outstanding, at period end

3,493,699

3,499,412

Book value

21.53

20.28

Common stock price:

High

21.55

24.50

Low

16.63

18.80

Period end

18.29

21.26

To earnings ratio (b)

101.61

7.21

To book value

105

Performance ratios:

Annualized return on average equity

8.34

10.91

Annualized return on average assets

0.64

0.76

Dividend payout ratio

60.67

48.65

Asset Quality:

Allowance for credit losses as a % of:

Loans

1.24

1.27

Nonperforming loans

900

577

Nonperforming assets as a % of:

Loans and other real estate owned

0.14

0.22

Total assets

0.08

0.11

Nonperforming loans as a % of total loans

0.14

0.22

Annualized net recoveries as a % of average loans

(0.02)

(0.06)

Capital Adequacy: (c)

CET 1 risk-based capital ratio

14.47

15.33

Tier 1 risk-based capital ratio

14.47

15.33

Total risk-based capital ratio

15.49

16.31

Tier 1 leverage ratio

10.39

10.23

Other financial data:

Net interest margin (a)

3.05

3.10

Effective income tax rate

17.07

12.48

Efficiency ratio (d)

73.70

72.36

Selected average balances:

Securities

262,917

402,807

Loans, net of unearned income

567,100

507,139

Total assets

977,518

1,022,906

Total deposits

898,862

945,456

Total stockholders’ equity

74,503

71,365

Selected period end balances:

Securities

254,359

394,079

Loans, net of unearned income

578,068

520,411

Allowance for credit losses

7,142

6,634

Total assets

1,025,054

1,026,130

Total deposits

946,405

950,742

Total stockholders’ equity

75,209

70,976

(a) Tax-equivalent. See "Table 1 - Explanation of Non-GAAP Financial Measures."

(b) Calculated by dividing period end share price by

earnings per share for the previous four quarters.

wholly-owned subsidiary, AuburnBank.

(d) Efficiency ratio is the result of noninterest expense divided by

the sum of noninterest income and tax-equivalent net interest

income.

See Table 1 - Explanation of Non-GAAP Measures.

Table of Contents

Table 4

- Average Balances

and Net Interest Income Analysis

Quarter ended June 30,

2024

2023

Interest

Average

Income/

Yield/

Average

Income/

Yield/

(Dollars in thousands)

Balance

Expense

Rate

Balance

Expense

Rate

Interest-earning assets:

Loans and loans held for sale (1)

573,926

7,451

5.22%

512,139

6,019

4.71%

Securities - taxable (2)

248,018

1,371

2.22%

347,714

1,826

2.11%

Securities - tax-exempt (2)(3)

10,210

3.66%

55,215

510

3.70%

Total securities

258,228

1,464

2.28%

402,929

2,336

2.33%

Federal funds sold

17,357

234

5.42%

3,943

4.88%

Interest bearing bank deposits

34,553

454

5.28%

8,023

4.80%

Total interest-earning assets

884,064

9,603

4.37%

927,034

8,499

3.68%

Cash and due from banks

18,072

15,621

Other assets

75,971

80,219

Total assets

978,107

1,022,874

Interest-bearing liabilities:

Deposits:

NOW

190,861

676

1.42%

189,406

287

0.61%

Savings and money market

254,663

532

0.84%

292,238

414

0.57%

Time deposits

192,164

1,666

3.49%

164,479

781

1.90%

Total interest-bearing deposits

637,688

2,874

1.81%

646,123

1,482

0.92%

Short-term borrowings

931

0.43%

3,835

2.41%

Total interest-bearing liabilities

638,619

2,875

1.81%

649,958

1,505

0.93%

Noninterest-bearing deposits

262,985

296,428

Other liabilities

4,444

2,084

Stockholders' equity

72,059

74,404

Total liabilities and stockholders'

equity

978,107

1,022,874

Net interest income and margin (tax-equivalent)

6,728

3.06%

6,994

3.03%

(1) Average loan balances are

shown net of unearned income and loans on nonaccrual status have been included

in the computation of average balances.

(2) Includes average net unrealized gains (losses) on investment securities available

for sale

(3) Yields on tax-exempt securities have been

computed on a tax-equivalent basis using a federal income

tax rate of 21%.

Table of Contents

Table 5

- Average Balances

and Net Interest Income Analysis

Six months ended June 30,

2024

2023

Interest

Average

Income/

Yield/

Average

Income/

Yield/

(Dollars in thousands)

Balance

Expense

Rate

Balance

Expense

Rate

Interest-earning assets:

Loans and loans held for sale (1)

567,434

14,441

5.12%

507,176

11,773

4.68%

Securities - taxable (2)

252,623

2,782

2.21%

348,066

3,691

2.14%

Securities - tax-exempt (2)(3)

10,294

187

3.65%

54,741

1,021

3.76%

Total securities

262,917

2,969

2.27%

402,807

4,712

2.36%

Federal funds sold

17,669

483

5.50%

5,619

133

4.77%

Interest bearing bank deposits

36,171

959

5.33%

9,805

224

4.61%

Total interest-earning assets

884,191

18,852

4.29%

925,407

16,842

3.67%

Cash and due from banks

17,922

15,574

Other assets

75,405

81,925

Total assets

977,518

1,022,906

Interest-bearing liabilities:

Deposits:

NOW

193,755

1,316

1.37%

188,491

536

0.57%

Savings and money market

248,227

872

0.71%

296,425

703

0.48%

Time deposits

195,863

3,256

3.34%

160,102

1,361

1.71%

Total interest-bearing deposits

637,845

5,444

1.72%

645,018

2,600

0.81%

Short-term borrowings

1,262

0.48%

3,443

1.82%

Total interest-bearing liabilities

639,107

5,447

1.71%

648,461

2,631

0.82%

Noninterest-bearing deposits

261,017

300,439

Other liabilities

2,891

2,642

Stockholders' equity

74,503

71,364

Total liabilities and stockholders'

equity

977,518

1,022,906

Net interest income and margin (tax-equivalent)

13,405

3.05%

14,211

3.10%

(1) Average loan balances are

shown net of unearned income and loans on nonaccrual status have been included

in the computation of average balances.

(2) Includes average net unrealized gains (losses) on

investment securities available for sale

(3) Yields on tax-exempt securities have been

computed on a tax-equivalent basis using a federal income

tax rate of 21%.

Table of Contents

ITEM 3.

QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The information called for by ITEM 3 is set forth in ITEM 2 under the caption

“MARKET AND LIQUIDITY RISK

MANAGEMENT” and is incorporated herein by reference.

ITEM 4. CONTROLS AND PROCEDURES

The Company, with the participation

of its management, including its Chief Executive Officer and

Chief Financial Officer,

carried out an evaluation of the effectiveness of the design and operation

of its disclosure controls and procedures (as

defined in Rules 13a-15(e)

and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the

period covered by this report. Based upon that evaluation and as of the end of the period covered by this report,

the

Company’s Chief Executive Officer

and Chief Financial Officer concluded that the Company’s

disclosure controls and

procedures were effective to allow timely decisions regarding disclosure

in its reports that the Company files or submits to

the Securities and Exchange Commission under the Securities Exchange Act of 1934,

as amended. There have been no

changes in the Company’s internal control

over financial reporting that occurred during the period covered by this report

that have materially affected, or are reasonably likely to

materially affect, the Company’s

internal control over financial

reporting.

PART

II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the normal course of its business, the Company and the Bank are, from time to

time, involved in legal proceedings. The

Company’s and Bank’s

management believe there are no pending or threatened legal, governmental, or regulatory

proceedings that, upon resolution, are expected to have a material adverse effect

upon the Company’s or

the Bank’s

financial condition or results of operations. See also, Part I, Item 3 of the Company’s

Annual Report on Form 10-K for the

year ended December 31, 2023.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the

factors discussed in Part I,

Item 1A. “RISK FACTORS”

in the Company’s Annual Report

on Form 10-K for the year ended December 31, 2023,

which could materially affect our business, financial condition

or future results. The risks described in our annual report on

Form 10-K are not the only the risks facing our Company.

The persistence of inflation above the Federal Reserve’s

long

term targets, and the maintenance of or further increases in, tightened Federal

Reserve monetary policy by increased target

interest rates and reductions in the Federal Reserve’s

securities portfolio, have and are expected to continue to affect the

levels of interest rates, mortgage originations and income, the market values of our securities

portfolio and loans and have

resulted in unrealized losses that have adversely affected our stockholders’

equity.

These have affected and are expected to

continue to affect our deposit costs and mixes, and consumer savings and payment

behaviors.

These may also affect our

borrower’s operating costs, expected returns and cash flows

available to service our loans.

Additional risks and

uncertainties not currently known to us or that we currently deem to be immaterial also

may materially adversely affect our

business, financial condition, and/or operating results in the future.

Table of Contents

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company did not sell any common stock or other equity securities during the second

quarter of 2024.

ITEM 3.

DEFAULTS

UPON SENIOR SECURITIES

Not applicable.

ITEM 4.

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.

OTHER INFORMATION

Not applicable.

Table of Contents

ITEM 6.

EXHIBITS

Exhibit

Number

Description

3.1

Certificate of Incorporation of Auburn National Bancorporation, Inc. and all amendments thereto.*

3.2

Amended and Restated Bylaws of Auburn National Bancorporation, Inc., adopted as of November 13, 2007. **

31.1

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section

302 of the Sarbanes-Oxley Act of 2002, by David A. Hedges, President and Chief Executive Officer.

31.2

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section

302 of the Sarbanes-Oxley Act of 2002, by W. James Walker, IV, Senior Vice President and Chief Financial

Officer.

32.1

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley

Act of 2002, by David A. Hedges, President and Chief Executive Officer.***

32.2

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley

Act of 2002, by W. James Walker, IV, Senior Vice President and Chief Financial Officer.***

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension

Schema Document

101.CAL

XBRL Taxonomy Extension

Calculation Linkbase Document

101.LAB

XBRL Taxonomy Extension

Label Linkbase Document

101.PRE

XBRL Taxonomy Extension

Presentation Linkbase Document

101.DEF

XBRL Taxonomy Extension

Definition Linkbase Document

104

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

Incorporated by reference from Registrant’s

Form 10-Q dated June 30, 2002.

Incorporated by reference from Registrant’s

Form 10-K dated March 31, 2008.

***

The certifications attached as exhibits 32.1 and 32.2 to this quarterly report on Form 10-Q

are “furnished” to the

Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley

Act of 2002 and shall not be

deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange

Act of 1934, as amended.

Table of Contents

SIGNATURES

Pursuant to

the requirements

of the

Securities Exchange

Act of

1934, the

registrant has

duly caused

this report

be signed on its behalf by the undersigned thereunto duly authorized.

AUBURN NATIONAL

BANCORPORATION,

INC.

(Registrant)

Date:

August 2, 2024

By:

/s/ David A. Hedges

David A. Hedges

President and CEO

Date:

August 2, 2024

By:

/s/

James Walker,

Senior Vice President and Chief Financial

Officer

AUBURN NATIONAL

BANCORPORATION,

INC AND SUBSIDIARIES

EXHIBIT 31.1

CERTIFICATION

PURSUANT TO

RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, David A. Hedges,

certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Auburn National Bancorporation,

Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material

fact or omit to state a material

fact necessary to make the statements made, in light of the circumstances under

which such statements were made, not

misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information

included in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the

registrant as of, and for, the periods

presented in this report;

4. The registrant’s other certifying officer

and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and

internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be

designed under our supervision, to ensure that material information relating to the registrant,

including its

consolidated subsidiaries, is made known to us by others within those entities, particularly

during the period in

which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal

control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting

and the preparation of financial statements for external purposes in accordance

with generally accepted

accounting principles;

Evaluated the effectiveness of the registrant’s

disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures,

as of the end of the period covered

by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s

internal control over financial reporting that occurred

during the registrant’s most recent fiscal quarter

(the registrant’s fourth fiscal quarter

in the case of an annual

report) that has materially affected, or is reasonably likely to materially affect,

the registrant’s internal control

over financial reporting; and

5. The registrant’s other certifying officer

and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors

and the audit committee of the registrant’s

board of directors (or persons

performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation

of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s

ability to record, process, summarize and

report financial information; and

Any fraud, whether or not material, that involves management or other

employees who have a significant role in

the registrant’s internal control over

financial reporting.

Date: August 2, 2024

/s/ David A. Hedges

President and Chief Executive Officer

AUBURN NATIONAL

BANCORPORATION,

INC AND SUBSIDIARIES

EXHIBIT 31.2

CERTIFICATION

PURSUANT TO

RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, W.

James Walker,

IV,

certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Auburn National Bancorporation,

Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material

fact or omit to state a material

fact necessary to make the statements made, in light of the circumstances under

which such statements were made, not

misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included

in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the

registrant as of, and for, the periods

presented in this report;

4. The registrant’s other certifying officer

and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))

and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be

designed under our supervision, to ensure that material information relating to the registrant,

including its

consolidated subsidiaries, is made known to us by others within those entities, particularly

during the period in

which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal

control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting

and the preparation of financial statements for external purposes in accordance

with generally accepted

accounting principles;

Evaluated the effectiveness of the registrant’s

disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures,

as of the end of the period covered

by this report based on such evaluation;

and

Disclosed in this report any change in the registrant’s

internal control over financial reporting that occurred

during the registrant’s most recent fiscal quarter

(the registrant’s fourth fiscal quarter

in the case of an annual

report) that has materially affected, or is reasonably likely to materially affect,

the registrant’s internal control

over financial reporting; and

5. The registrant’s other certifying officer

and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors

and the audit committee of the registrant’s

board of directors (or persons

performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation

of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s

ability to record, process, summarize and

report financial information; and

Any fraud, whether or not material, that involves management or other

employees who have a significant role in

the registrant’s internal control over

financial reporting.

Date: August 2, 2024

/s/ W.

James Walker,

Senior Vice President and Chief Financial

Officer

AUBURN NATIONAL

BANCORPORATION,

INC AND SUBSIDIARIES

EXHIBIT 32.1

CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Auburn National Bancorporation,

Inc. (the “Company”) on Form 10-Q for the

period ending June 30, 2024, as filed with the Securities and Exchange Commission as

of the date hereof (the “Report”), I,

David A. Hedges, President and Chief Executive Officer of

the Company, certify,

pursuant to 18 U.S.C. § 1350, as adopted

pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a)

or 15(d) of the Securities Exchange Act

of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial

condition and

results of operations of the Company.

Date: August 2, 2024

/s/ David A. Hedges

David A. Hedges

President and Chief Executive Officer

AUBURN NATIONAL

BANCORPORATION,

INC AND SUBSIDIARIES

EXHIBIT 32.2

CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Auburn National Bancorporation,

Inc. (the “Company”) on Form 10-Q for the

period ending June 30, 2024, as filed with the Securities and Exchange Commission as

of the date hereof (the “Report”), I,

James Walker,

IV,

Senior Vice President and

Chief Financial Officer of the Company,

certify, pursuant to 18 U.S.C. §

1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002,

that:

(1)

The Report fully complies with the requirements of Section

13(a) or 15(d) of the Securities Exchange Act

of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial

condition and

results of operations of the Company.

Date:

August 2, 2024

/s/ W.

James Walker,

Senior Vice President and Chief Financial

Officer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transistion Report	false
Entity File Number	0-26486
Entity Registrant Name	Auburn National Bancorporation, Inc.
Entity Incorporation State	DE
Entity Tax Identification Number	63-0885779
Entity Address Address Line 1	100 N. Gay Street
Entity Address City	Auburn
Entity Address State	AL
Entity Address Postal Zip	36830
City Area Code	334
Local Phone Number	821-9200
Entity current reporting status	Yes
Entity filer category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth	false
Entity Shell Company	false
Entity common stock shares outstanding		3,493,699
Entity central index key	0000750574
Current fiscal year end date	--12-31
Document Fiscal Year Focus	2024
Document Period Focus	Q2
Amendment flag	false
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	AUBN
Security Exchange Name	NASDAQ

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Cash And Due From Banks	$ 26,334	$ 27,127
Federal funds sold	11,778	31,412
Interest bearing bank deposits	76,387	12,830
Cash and cash equivalents	114,499	71,369
Available For Sale Securities Debt Securities	254,359	270,910
Loans held for sale	30	0
Total loans	578,068	557,294
Allowance for credit losses	(7,142)	(6,863)
Loans, net	570,926	550,431
Premises and equipment, net	46,618	45,535
Bank-owned life insurance	17,311	17,110
Other assets	21,311	19,900
Total assets	1,025,054	975,255
Deposits:
Noninterest-bearing	263,105	270,723
Interest-bearing	683,300	625,520
Total deposits	946,405	896,243
Federal funds purchased and securities sold under agreements to repurchase	0	1,486
Accrued expenses and other liabilities	3,440	1,019
Total liabilities	949,845	898,748
Stockholders' equity:
Preferred stock	0	0
Common stock	39	39
Additional paid-in capital	3,802	3,801
Retained earnings	114,353	113,398
Accumulated other comprehensive loss, net	(31,284)	(29,029)
Less treasury stock, at cost	(11,701)	(11,702)
Total stockholders' equity	75,209	76,507
Total liabilities and stockholders' equity	$ 1,025,054	$ 975,255

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.01	$ 0.01
Authorized shares, preferred	200,000	200,000
Issued shares, preferred	0	0
Common stock par value	$ 0.01	$ 0.01
Authorized shares, common	8,500,000	8,500,000
Issued shares, common	3,957,135	3,957,135
Treasury stock, shares held	463,436	463,521

Consolidated Statements of Earnings - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest income:
Loans, including fees	$ 7,451	$ 6,019	$ 14,441	$ 11,773
Securities - Taxable	1,371	1,826	2,782	3,691
Securities - Tax-exempt	74	404	148	807
Federal funds sold and interest bearing bank deposits	688	144	1,442	357
Total interest income	9,584	8,393	18,813	16,628
Interest expense:
Deposits	2,874	1,482	5,444	2,600
Short-term borrowings	1	23	3	31
Total interest expense	2,875	1,505	5,447	2,631
Net interest income	6,709	6,888	13,366	13,997
Provision for credit losses	(123)	(362)	211	(296)
Net interest income after provision for loan losses	6,832	7,250	13,155	14,293
Noninterest income:
Service charge on deposit accounts	153	154	309	308
Mortgage lending	180	142	330	235
Bank-owned life insurance income	99	68	201	224
Other noninterest income	464	427	943	816
Total noninterest income	896	791	1,783	1,583
Noninterest expense:
Salaries and benefits	3,140	3,038	6,211	5,965
Net occupancy and equipment	603	787	1,366	1,586
Professional fees	314	299	640	637
Other noninterest expense	1,462	1,701	2,977	3,241
Total noninterest expense	5,519	5,825	11,194	11,429
Earnings before income taxes	2,209	2,216	3,744	4,447
Income tax expense	475	288	639	555
Net earnings	$ 1,734	$ 1,928	$ 3,105	$ 3,892
Net earnings per share:
Basic earnings per share	$ 0.50	$ 0.55	$ 0.89	$ 1.11
Weighted average shares outstanding:
Basic weighted average shares outstanding	3,493,699	3,500,064	3,493,681	3,501,098

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statements of Comprehensive Income [Abstract]
Net earnings	$ 1,734	$ 1,928	$ 3,105	$ 3,892
Other comprehensive income, net of tax:
Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax	(94)	(4,830)	(3,012)	2,467
Other Comprehensive Income Loss Available For Sale Securities Tax	(23)	(1,215)	(757)	619
Other comprehensive income	(71)	(3,615)	(2,255)	1,848
Comprehensive income	$ 1,663	$ (1,687)	$ 850	$ 5,740

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Member	Additional Paid In Capital Member	Retained Earnings Member	Accumulated Other Comprehensive Income Member	Treasury Stock Member
Balance, shares at Dec. 31, 2022		3,503,452
Balance, Beg at Dec. 31, 2022	$ 68,041	$ 39	$ 3,797	$ 116,600	$ (40,920)	$ (11,475)
Cumulative Effect Of Accounting Standard	(821)			(821)
Net earnings	3,892			3,892
Other Comprehensive Income (Loss), Net Of Tax	1,848				1,848
Cash Dividends Paid	1,890			1,890
Treasury Stock, acquired	(99)					(99)
Treasury Stock, acquired shares		(4,225)
Sale of treasury stock	5		3			2
Treasury shares sold		185
Balance, End at Jun. 30, 2023	70,976	$ 39	3,800	117,781	(39,072)	(11,572)
Balance, shares at Jun. 30, 2023		3,499,412
Balance, shares at Mar. 31, 2023		3,500,879
Balance, Beg at Mar. 31, 2023	73,640	$ 39	3,798	116,798	(35,457)	(11,538)
Net earnings	1,928			1,928
Other Comprehensive Income (Loss), Net Of Tax	(3,615)				(3,615)
Cash Dividends Paid	945			945
Treasury Stock, acquired	(35)					(35)
Treasury Stock, acquired shares		(1,577)
Sale of treasury stock	3		2			1
Treasury shares sold		110
Balance, End at Jun. 30, 2023	70,976	$ 39	3,800	117,781	(39,072)	(11,572)
Balance, shares at Jun. 30, 2023		3,499,412
Balance, shares at Dec. 31, 2023		3,493,614
Balance, Beg at Dec. 31, 2023	76,507	$ 39	3,801	113,398	(29,029)	(11,702)
Cumulative Effect Of Accounting Standard	(263)			(263)
Net earnings	3,105			3,105
Other Comprehensive Income (Loss), Net Of Tax	(2,255)				(2,255)
Cash Dividends Paid	1,887			1,887
Sale of treasury stock	2		1			1
Treasury shares sold		85
Balance, End at Jun. 30, 2024	75,209	$ 39	3,802	114,353	(31,284)	(11,701)
Balance, shares at Jun. 30, 2024		3,493,699
Balance, shares at Mar. 31, 2024		3,493,699
Balance, Beg at Mar. 31, 2024	74,489	$ 39	3,802	113,563	(31,213)	(11,702)
Net earnings	1,734			1,734
Other Comprehensive Income (Loss), Net Of Tax	(71)				(71)
Cash Dividends Paid	944			944
Sale of treasury stock	1					1
Balance, End at Jun. 30, 2024	$ 75,209	$ 39	$ 3,802	$ 114,353	$ (31,284)	$ (11,701)
Balance, shares at Jun. 30, 2024		3,493,699

Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity (Parentheticals)
Cash dividends paid per share	$ 0.27	$ 0.27	$ 0.54	$ 0.54

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net earnings	$ 3,105	$ 3,892
Adjustments to reconcile net earnings to net cash provided by operating activties:
Provision for credit losses related to loans and leases	221	(291)
Depreciation and amortization	902	858
Premium amortization and discount accretion, net	770	1,223
Net gain on sale of loans held for sale	(142)	(61)
Loans originated for sale	(5,826)	(1,219)
Proceeds from sale of loans	5,911	1,271
Increase in cash surrender value of bank owned life insurance	(201)	(172)
Income recognized on death benefit of life insurance		(52)
Net (increase) decrease in other assets	(1,026)	3,332
Net (decrease) increase in accrued expenses and other liabilities	2,412	(1,406)
Net cash provided by operating activities	6,126	7,375
Cash flows from investing activities:
Proceeds from prepayments and maturities of securities available-for-sale	12,769	12,470
Decrease in loans, net	(20,706)	(15,812)
Net purchases of premises and equipment	(1,880)	(40)
Proceeds from bank-owned life insurance death benefit		(216)
(Increase) decrease in FHLB stock	32	41
Net cash (used in) provided by investing activities	(9,785)	(3,125)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	(7,618)	(12,892)
Net increase in interest-bearing deposits	57,780	13,297
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase	(1,486)	(384)
Stock repurchases	0	(99)
Dividends paid	(1,887)	(1,890)
Net cash provided by financing activities	46,789	(1,968)
Net change in cash and cash equivalents	43,130	2,282
Cash and cash equivalents at beginning of period	71,369	27,254
Cash and cash equivalents at end of period	114,499	29,536
Cash paid during the period for:
Interest	5,383	2,191
Income taxes	$ 460	$ 800

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Summary of Signficant Accounting Policies
Summary of Significant Accounting Policies Text Block	AUBURN NATIONAL BANCORPORATION, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Auburn National Bancorporation, Inc. (the “Company”) provides a full range of banking services to individuals and commercial customers in Lee County, Alabama and surrounding areas through its wholly owned subsidiary, AuburnBank (the “Bank”). The Company does not have any segments other than banking that are considered material. Basis of Presentation and Use of Estimates The unaudited consolidated financial statements in this report have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited consolidated financial statements include, in the opinion of management, all adjustments necessary to present a fair statement of the financial position and the results of operations for all periods presented. All such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results of operations that the Company and its subsidiaries may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany transactions and accounts are eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of allowance for credit losses on loans and investment securities, fair value of financial instruments, and the valuation of deferred tax assets and other real estate owned (“OREO”). Revenue Recognition The Company’s sources of income that fall within the scope of ASC 606 include service charges on deposits, ATM and interchange fees and gains and losses on sales of other real estate, all of which are presented as components of noninterest income. The following is a summary of the revenue streams that fall within the scope of ASC 606: ● Service charges on deposits, investment services, ATM and interchange fees – Fees from these services are either (i) transaction-based, for which the performance obligations are satisfied when the individual transaction is processed, or (ii) set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction-based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. ● Gains on sales of OREO – A gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. ASC 606 lists several criteria required to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. In addition to the loan-to-value ratio, where the seller provides the purchaser with financing, the analysis is based on various other factors, including the credit quality of the purchaser, the structure of the loan, and any other factors that we believe may affect collectability. Subsequent Events The Company has evaluated the effects of events and transactions through the date of this filing that have occurred subsequent to June 30, 2024. The Company does not believe there were any material subsequent events during this period that would have required further recognition or disclosure in the unaudited consolidated financial statements included in this report. Correction of Error The disclosure of loans by vintage in Note 5 – Loans and Allowance for Credit Losses in the Company’s Annual Report on Form 10-K for year ended December 31, 2023 contained incorrect information as it pertains to loans originated by vintage and revolving loans. All current period gross charge-off data, total loans by segment and total loans by credit quality indicator were correctly reported. The loans originated by vintage and revolving loans as of December 31, 2023 have been corrected in the comparative presentation in Note 5 – Loans and Allowance for Credit Losses in the Notes herein. Reclassifications Certain amounts reported in prior periods have been reclassified to conform to the current -period presentation. These reclassifications had no effect on the Company’s previously reported net earnings or total stockholders’ equity. Accounting Standards Adopted in 2024 On January 1, 2024, the Company adopted ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . ASU 2023-02 now permits reporting entities to elect to account for their equity investments made primarily to receive income tax credits and other income tax benefits, regardless of the program from which the income tax credits or benefits are received, using the proportional amortization method if certain conditions are met. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company adopted ASU 2023-02 effective January 1, 2024 and recorded a cumulative effect of change in accounting standard adjustment which reduced beginning retained earnings by $0.3 million. The Company, beginning January 1, 2024, accounts for its investments in New Markets Tax Credits (“NMTCs”) using the proportional amortization method through charges to the provision for income taxes. See Note 3, Variable Interest Entities.

Basic and Diluted Earnings Per Share	6 Months Ended
Basic and Diluted Earnings Per Share	Jun. 30, 2024
Basic and Diluted Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share Text Block	NOTE 2: BASIC AND DILUTED NET EARNINGS PER SHARE Basic net earnings per share is computed by dividing net earnings by the weighted average common shares outstanding for the respective period. Diluted net earnings per share reflect the potential dilution that could occur upon exercise of securities or other rights for, or convertible into, shares of the Company’s common stock. At June 30, 2024 and 2023, respectively, the Company had no such securities or rights issued or outstanding, and therefore, no dilutive effect to consider for the diluted net earnings per share calculation. The basic and diluted net earnings per share computations for the respective periods are presented below Quarter ended June 30, Six months ended June 30, (Dollars in thousands, except share and per share data) 2024 2023 2024 2023 Basic and diluted: Net earnings $ 1,734 $ 1,928 $ 3,105 $ 3,892 Weighted average common shares outstanding 3,493,699 3,500,064 3,493,681 3,501,098 Net earnings per share $ 0.50 $ 0.55 $ 0.89 $ 1.11

Variable Interest Entities	6 Months Ended
Variable Interest Entities	Jun. 30, 2024
Variable Interest Entity [Abstract]
Variable Interest Entity (Text Block Disclosure]	NOTE 3: VARIABLE INTEREST ENTITIES Generally, a variable interest entity (“VIE”) is a corporation, partnership, trust or other legal structure that does not have equity investors with substantive or proportional voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. At June 30, 2024, the Company did not have any consolidated VIEs but did have one nonconsolidated VIE, discussed below. New Markets Tax Credit Investment The NMTC program provides federal tax incentives to investors to make investments in distressed communities and promotes economic improvement through the development of successful businesses in these communities. NMTCs are available to investors over seven years and are subject to recapture if certain events occur during such period. At June 30, 2024 and December 31, 2023, respectively, the Company had one such investment of $1.1 million and $1.7 million, respectively, which was included in other assets in the Company’s consolidated balance sheets as a VIE. While the Company’s investment exceeds 50% of the outstanding equity interest in this VIE, the Company does not consolidate the VIE because the Company lacks the power to direct the activities of the VIE, and therefore is not a primary beneficiary of the VIE. On March 29, 2023, the FASB issued ASU 2023-02, which was effective beginning in 2024 for public business entities. We have adopted ASU 2023-02 as of January 1, 2024 with respect to accounting for our NMTC investment. The proportional amortization method results in the tax credit investment being amortized in proportion to the allocation of tax credits and other tax benefits in each period and a net presentation within the income tax line item. The cumulative effects of the change in accounting standard resulted in a $0.4 million pre-tax decrease in the Company’s NMTC investment at January 1, 2024. See Note 1: Summary of Significant Accounting Policies – Accounting Standards Adopted in 2024. (Dollars in thousands) Maximum Loss Exposure Asset Recognized Classification Type: New Markets Tax Credit investment $ 1,082 $ 1,082 Other assets

Securities	6 Months Ended
Securities	Jun. 30, 2024
Investments debt and equity securities [Abstract]
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block	NOTE 4: SECURITIES At June 30, 2024 and December 31, 2023, respectively, all securities within the scope of ASC 320, Investments – Debt and Equity Securities, were classified as available-for-sale. The fair value and amortized cost for securities available-for-sale by contractual maturity at June 30, 2024 and December 31, 2023, respectively, are presented below. 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost June 30, 2024 Agency obligations (a) $ — 17,309 35,407 — 52,716 — 8,501 $ 61,217 Agency MBS (a) 59 19,849 14,808 149,225 183,941 — 30,314 214,255 State and political subdivisions — 568 9,037 8,097 17,702 1 2,961 20,662 Total available-for-sale $ 59 37,726 59,252 157,322 254,359 1 41,776 $ 296,134 December 31, 2023 Agency obligations (a) $ 331 10,339 43,209 — 53,879 — 8,195 $ 62,074 Agency MBS (a) 32 15,109 22,090 161,058 198,289 — 27,838 226,127 State and political subdivisions — — 9,691 9,051 18,742 1 2,731 21,472 Total available-for-sale $ 363 25,448 74,990 170,109 270,910 1 38,764 $ 309,673 (a) Includes securities issued by U.S. government agencies or government-sponsored entities. Expected lives of these securities may differ from contractual maturities because (i) issuers may have the right to call or repay such securities obligations with or without prepayment penalties and (ii) loans incuded in Agency MBS generally have the right to prepay such loan in whole or in part at any time. Securities with aggregate fair values of $ 202.5 million and $ 211.8 at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan Bank of Atlanta (“FHLB of Atlanta”) advances, and for other purposes required or permitted by law. Included in other assets on the accompanying consolidated balance sheets include non-marketable equity investments. The carrying amounts of non-marketable equity investments were $ 1.4 million at June 30, 2024 and December 31, 2023, respectively. Non-marketable equity investments include FHLB of Atlanta stock, Federal Reserve Bank of Atlanta (“FRB”) stock, and stock in a privately held financial institution. Gross Unrealized Losses and Fair Value The fair values and gross unrealized losses on securities at June 30, 2024 and December 31, 2023, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or longer, are presented below. Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2024: Agency obligations $ — — 52,716 8,501 $ 52,716 8,501 Agency MBS 10 — 183,931 30,314 183,941 30,314 State and political subdivisions 1,817 38 14,163 2,923 15,980 2,961 Total $ 1,827 38 250,810 41,738 $ 252,637 41,776 December 31, 2023: Agency obligations $ — — 53,879 8,195 $ 53,879 8,195 Agency MBS 66 1 198,223 27,837 198,289 27,838 State and political subdivisions 793 2 14,408 2,729 15,201 2,731 Total $ 859 3 266,510 38,761 $ 267,369 38,764 For the securities in the previous table, the Company considers the severity of the unrealized loss as well as the Company’s intent to hold the securities to maturity or the recovery of the cost basis. Unrealized losses have not been recognized into income as the decline in fair value is largely due to changes in interest rates and other market conditions. For the securities held as of June 30, 2024 in the table immediately above, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their recovery. Agency Obligations Investments in agency obligations are guaranteed as to full and timely payment of principal and interest by the issuing agency. Based on management's analysis and judgement, there were no credit losses attributable to the Company’s investments in agency obligations at June 30, 2024. Agency MBS Investments in agency mortgage-backed securities (“MBS”) are MBS issued by Ginnie Mae, Fannie Mae, and Freddie Mac. Each of these agencies provide a guarantee of full and timely payments of principal and interest on their respective MBS by the issuing agency. Based on management's analysis and judgement, there were no credit losses attributable to the Company’s investments in agency MBS at June 30, 2024. State and Political Subdivisions Investments in state and political subdivisions are securities issued by various municipalities in the United States. The majority of these securities were rated AA or higher, with no securities rated below investment grade at June 30, 2024. Based on management's analysis and judgement, there were no credit losses attributable to the Company’s investments in state and political subdivisions at June 30, 2024. Realized Gains and Losses The Company had no realized gains or losses on sale of securities during the quarters and six months ended June 30, 2024 and 2023, respectively.

Loan and Allowance for Credit Losses	6 Months Ended
Loan and Allowance for Credit Losses	Jun. 30, 2024
Loans And Leases Receivable Disclosure [Abstract]
Loans and leases receivable disclosure [Text Block]	NOTE 5: LOANS AND ALLOWANCE FOR CREDIT LOSSES June 30, December 31, (Dollars in thousands) 2024 2023 Commercial and industrial $ 77,627 $ 73,374 Construction and land development 73,688 68,329 Commercial real estate: Owner occupied 63,384 66,783 Hotel/motel 38,542 39,131 Multi-family 44,135 45,841 Other 151,171 135,552 Total commercial real estate 297,232 287,307 Residential real estate: Consumer mortgage 60,957 60,545 Investment property 58,470 56,912 Total residential real estate 119,427 117,457 Consumer installment 10,094 10,827 Total Loans $ 578,068 $ 557,294 Loans secured by real estate were approximately 84.8% of the Company’s total loan portfolio at June 30, 2024. At June 30, 2024, the Company’s geographic loan distribution was concentrated primarily in Lee County, Alabama, and surrounding areas. The loan portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. As part of the Company’s quarterly assessment of the allowance, the loan portfolio included the following portfolio segments: commercial and industrial, construction and land development, commercial real estate, residential real estate, and consumer installment. Where appropriate, the Company’s loan portfolio segments are further disaggregated into classes. A class is generally determined based on the initial measurement attribute, risk characteristics of the loan, and an entity’s method for monitoring and determining credit risk. The following describes the risk characteristics relevant to each of the portfolio segments and classes. Commercial and industrial (“C&I”) — includes loans to finance business operations, equipment purchases, or other needs for small and medium-sized commercial customers. Also included in this category are loans to finance agricultural production. Generally, the primary source of repayment is the cash flow from business operations and activities of the borrower. Construction and land development (“C&D”) — includes both loans and credit lines for the purpose of purchasing, carrying, and developing land into commercial developments or residential subdivisions. Also included are loans and credit lines for construction of residential, multi-family, and commercial buildings. Generally, the primary source of repayment is dependent upon the sale or refinance of the real estate collateral. Commercial real estate (“CRE”) — includes loans in these classes: ● Owner occupied – includes loans secured by business facilities to finance business operations, equipment and owner-occupied facilities primarily for small and medium-sized commercial customers. Generally, the primary source of repayment is the cash flow from business operations and activities of the borrower, who owns the property. ● Hotel/motel – includes loans for hotels and motels. Generally, the primary source of repayment is dependent upon income generated from the hotel/motel securing the loan. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. ● Multi-family – primarily includes loans to finance income-producing multi-family properties . These include loans for 5 or more unit residential properties and apartments leased to residents. Generally , the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the respective borrowers. ● Other – primarily includes loans to finance income-producing commercial properties other than hotels/motels and multi-family properties, and which are not owner occupied. Loans in this class include loans for neighborhood retail centers, medical and professional offices, single retail stores, industrial buildings, and warehouses leased to local and other businesses. Generally, the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. Residential real estate (“RRE”) — includes loans in these two classes: ● Consumer mortgage – primarily includes first or second lien mortgages and home equity lines of credit to consumers that are secured by a primary residence or second home. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history , and property value. ● Investment property – primarily includes loans to finance income-producing 1-4 family residential properties. Generally, the primary source of repayment is dependent upon income generated from leasing the property securing the loan. The underwriting of these loans takes into consideration the rental rates and property values, as well as the financial health of the borrowers. Consumer installment — includes loans to individuals, which may be secured by personal property or are unsecured. Loans include personal lines of credit, automobile loans, and other retail loans. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history, and, if applicable, property values. The following is a summary of current, accruing past due, and nonaccrual loans by portfolio segment and class as of June 30, 2024 and December 31, 2023. Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (Dollars in thousands) Current Past Due 90 days Loans Accrual Loans June 30, 2024: Commercial and industrial $ 77,625 2 — 77,627 — $ 77,627 Construction and land development 73,284 404 — 73,688 — 73,688 Commercial real estate: Owner occupied 62,631 — — 62,631 753 63,384 Hotel/motel 38,542 — — 38,542 — 38,542 Multi-family 44,135 — — 44,135 — 44,135 Other 151,171 — — 151,171 — 151,171 Total commercial real estate 296,479 — — 296,479 753 297,232 Residential real estate: Consumer mortgage 60,805 111 — 60,916 41 60,957 Investment property 58,372 98 — 58,470 — 58,470 Total residential real estate 119,177 209 — 119,386 41 119,427 Consumer installment 10,071 23 — 10,094 — 10,094 Total $ 576,636 638 — 577,274 794 $ 578,068 December 31, 2023: Commercial and industrial $ 73,108 266 — 73,374 — $ 73,374 Construction and land development 68,329 — — 68,329 — 68,329 Commercial real estate: Owner occupied 66,000 — — 66,000 783 66,783 Hotel/motel 39,131 — — 39,131 — 39,131 Multi-family 45,841 — — 45,841 — 45,841 Other 135,552 — — 135,552 — 135,552 Total commercial real estate 286,524 — — 286,524 783 287,307 Residential real estate: Consumer mortgage 60,442 — — 60,442 103 60,545 Investment property 56,597 290 — 56,887 25 56,912 Total residential real estate 117,039 290 — 117,329 128 117,457 Consumer installment 10,781 46 — 10,827 — 10,827 Total $ 555,781 602 — 556,383 911 $ 557,294 Credit Quality Indicators The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for qualitative and environmental factors and are defined as follows: ● Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral. ● Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. ● Substandard Accruing – loans that exhibit a well-defined weakness which presently jeopardizes debt repayment, even though they are currently performing. These loans are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected . ● Nonaccrual – includes loans where management has determined that full payment of principal and interest is not expected. Substandard accrual and nonaccrual loans are often collectively referred to as “classified.” The following tables presents credit quality indicators for the loan portfolio segments and classes by year of origination as of June 30, 2024 and December 31, 2023. The December 31, 2023 table has been revised to correct revolving loans and properly allocate loans by year of origination. See Note 1: Summary of Significant Accounting Policies – Correction of Error. Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) June 30, 2024: Commercial and industrial Pass $ 5,671 13,080 19,641 13,026 5,350 17,043 3,485 $ 77,296 Special mention — 74 — — — — — 74 Substandard 54 6 187 10 — — — 257 Nonaccrual — — — — — — — — Total commercial and industrial 5,725 13,160 19,828 13,036 5,350 17,043 3,485 77,627 Current period gross charge-offs — — 9 — — — — 9 Construction and land development Pass 17,898 27,794 23,510 1,544 1,823 144 — 72,713 Special mention 332 404 — — — — — 736 Substandard 239 — — — — — — 239 Nonaccrual — — — — — — — — Total construction and land development 18,469 28,198 23,510 1,544 1,823 144 — 73,688 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 509 12,454 7,030 17,282 9,469 9,711 4,991 61,446 Special mention 931 254 — — — — — 1,185 Substandard — — — — — — — — Nonaccrual — — — — — 753 — 753 Total owner occupied 1,440 12,708 7,030 17,282 9,469 10,464 4,991 63,384 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 245 8,822 9,677 3,142 1,397 14,993 266 38,542 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 245 8,822 9,677 3,142 1,397 14,993 266 38,542 Current period gross charge-offs — — — — — — — — Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) June 30, 2024: Multi-family Pass 192 11,710 17,279 1,916 5,967 6,505 566 44,135 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 192 11,710 17,279 1,916 5,967 6,505 566 44,135 Current period gross charge-offs — — — — — — — — Other Pass 26,641 21,591 26,844 25,885 13,606 18,612 16,961 150,140 Special mention 905 — — — — — — 905 Substandard — — — — 126 — — 126 Nonaccrual — — — — — — — — Total other 27,546 21,591 26,844 25,885 13,732 18,612 16,961 151,171 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 3,621 18,043 18,685 2,614 2,612 12,084 2,272 59,931 Special mention — — — — — 490 — 490 Substandard — — — — — 495 — 495 Nonaccrual — — — — — 41 — 41 Total consumer mortgage 3,621 18,043 18,685 2,614 2,612 13,110 2,272 60,957 Current period gross charge-offs — — — — — — — — Investment property Pass 7,691 12,004 11,111 8,908 12,301 5,773 281 58,069 Special mention — — — — — — — — Substandard — 82 95 — 224 — — 401 Nonaccrual — — — — — — — — Total investment property 7,691 12,086 11,206 8,908 12,525 5,773 281 58,470 Current period gross charge-offs — — — — — — — — Consumer installment Pass 3,216 3,443 2,098 359 123 191 582 10,012 Special mention — 9 27 10 — — — 46 Substandard 10 21 5 — — — — 36 Nonaccrual — — — — — — — — Total consumer installment 3,226 3,473 2,130 369 123 191 582 10,094 Current period gross charge-offs — 18 24 1 — — — 43 Total loans Pass 65,684 128,941 135,875 74,676 52,648 85,056 29,404 572,284 Special mention 2,168 741 27 10 — 490 — 3,436 Substandard 303 109 287 10 350 495 — 1,554 Nonaccrual — — — — — 794 — 794 Total loans $ 68,155 129,791 136,189 74,696 52,998 86,835 29,404 $ 578,068 Total current period gross charge-offs $ — 18 33 1 — — — 52 Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Commercial and industrial Pass $ 11,571 18,074 13,746 5,602 7,298 7,819 9,003 $ 73,113 Special mention — — — — — — — — Substandard 55 203 — — 3 — — 261 Nonaccrual — — — — — — — — Total commercial and industrial 11,626 18,277 13,746 5,602 7,301 7,819 9,003 73,374 Current period gross charge-offs — — 13 — 151 — — 164 Construction and land development Pass 38,646 25,382 1,716 1,526 120 157 782 68,329 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total construction and land development 38,646 25,382 1,716 1,526 120 157 782 68,329 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 12,966 7,337 18,548 10,458 3,948 9,786 2,647 65,690 Special mention 260 — — — — — — 260 Substandard — — — — 50 — — 50 Nonaccrual — — — — 783 — — 783 Total owner occupied 13,226 7,337 18,548 10,458 4,781 9,786 2,647 66,783 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Current period gross charge-offs — — — — — — — — Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Multi-family Pass 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Current period gross charge-offs — — — — — — — — Other Pass 25,810 36,076 31,687 14,597 10,736 15,440 1,052 135,398 Special mention — — — — — — — — Substandard — — — 154 — — — 154 Nonaccrual — — — — — — — — Total other 25,810 36,076 31,687 14,751 10,736 15,440 1,052 135,552 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 20,147 20,177 2,683 2,665 1,281 12,217 249 59,419 Special mention — — — — 190 305 — 495 Substandard — — — — — 528 — 528 Nonaccrual — — — — — 103 — 103 Total consumer mortgage 20,147 20,177 2,683 2,665 1,471 13,153 249 60,545 Current period gross charge-offs — — — — — — — — Investment property Pass 13,398 12,490 9,397 12,209 5,485 1,865 1,478 56,322 Special mention 41 — — — — — — 41 Substandard 43 248 — 233 — — — 524 Nonaccrual — — — — — 25 — 25 Total investment property 13,482 12,738 9,397 12,442 5,485 1,890 1,478 56,912 Current period gross charge-offs — — — — — — — — Consumer installment Pass 5,688 3,837 740 206 106 141 — 10,718 Special mention 9 25 9 2 — — — 45 Substandard 37 11 5 11 — — — 64 Nonaccrual — — — — — — — — Total consumer installment 5,734 3,873 754 219 106 141 — 10,827 Current period gross charge-offs 34 57 13 1 — — — 105 Total loans Pass 149,630 151,201 83,675 54,868 36,645 62,122 15,820 553,961 Special mention 310 25 9 2 190 305 — 841 Substandard 135 462 5 398 53 528 — 1,581 Nonaccrual — — — — 783 128 — 911 Total loans $ 150,075 151,688 83,689 55,268 37,671 63,083 15,820 $ 557,294 Total current period gross charge-offs $ 34 57 26 1 151 — — 269 Allowance for Credit Losses The Company adopted ASC 326 on January 1, 2023, which introduced the CECL methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology, the allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics, and for loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. The composition of the provision for (reversal of) credit losses for the respective periods is presented below. Quarter ended June 30, Six months ended June 30, (Dollars in thousands) 2024 2023 2024 2023 Provision for credit losses: Loans $ (64) $ (331) $ 221 $ (291) Reserve for unfunded commitments (59) (31) (10) (5) Total provision for (reversal of) credit losses $ (123) $ (362) $ 211 $ (296) The following table details the changes in the allowance for credit losses for loans, by portfolio segment, for the respective periods. (Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended: June 30, 2024 Beginning balance $ 1,415 840 4,202 613 145 $ 7,215 Charge-offs (9) — — — (19) (28) Recoveries 8 — — 2 9 19 Net (charge-offs) recoveries (1) — — 2 (10) (9) Provision for (reversal of) credit losses (48) 102 (111) (12) 5 (64) Ending balance $ 1,366 942 4,091 603 140 $ 7,142 Six months ended: June 30, 2024 Beginning balance $ 1,288 960 3,921 546 148 $ 6,863 Charge-offs (9) — — — (43) (52) Recoveries 74 — — 5 31 110 Net recoveries (charge-offs) 65 — — 5 (12) 58 Provision for (reversal of) credit losses 13 (18) 170 52 4 221 Ending balance $ 1,366 942 4,091 603 140 $ 7,142 (Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended: June 30, 2023 Beginning balance $ 1,232 1,021 3,966 497 105 $ 6,821 Charge-offs — — — — (56) (56) Recoveries 194 — — 5 1 200 Net recoveries (charge-offs) 194 — — 5 (55) 144 Provision for (reversal of) credit losses (228) (16) (178) 27 64 (331) Ending balance $ 1,198 1,005 3,788 529 114 $ 6,634 Six months ended: June 30, 2023 Beginning balance $ 747 949 3,109 828 132 $ 5,765 Impact of adopting ASC 326 532 (17) 873 (347) (22) 1,019 Charge-offs — — — — (67) (67) Recoveries 196 — — 10 2 208 Net recoveries (charge-offs) 196 — — 10 (65) 141 Provision for (reversal of) credit losses (277) 73 (194) 38 69 (291) Ending balance $ 1,198 1,005 3,788 529 114 $ 6,634 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of March 31, 2024 and December 31, 2023: (Dollars in thousands) Real Estate Total Loans June 30, 2024: Commercial real estate $ 753 $ 753 Total $ 753 $ 753 December 31, 2023: Commercial real estate $ 783 $ 783 Total $ 783 $ 783 The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2024 and December 31, 2023. CECL Nonaccrual loans Nonaccrual loans Total (Dollars in thousands) with no Allowance with an Allowance Nonaccrual Loans June 30, 2024 Commercial real estate $ 753 — 753 Residential real estate — 41 41 Total $ 753 41 794 December 31, 2023 Commercial real estate $ 783 — 783 Residential real estate — 128 128 Total $ 783 128 911

Mortgage Servicing Rights, Net	6 Months Ended
Mortgage Servicing Rights, Net	Jun. 30, 2024
Mortgage Servicing [Abstract]
Transfers and Servicing of Financial Assets [Text Block]	NOTE 6: MORTGAGE SERVICING RIGHTS, NET Mortgage servicing rights (“MSRs”) are recognized based on the fair value of the servicing rights on the date the corresponding mortgage loans are sold. An estimate of the fair value of the Company’s MSRs is determined using assumptions that market participants would use in estimating future net servicing income, including estimates of prepayment speeds, discount rates, default rates, costs to service, escrow account earnings, contractual servicing fee income, ancillary income, and late fees. Subsequent to the date of transfer, the Company has elected to measure its MSRs under the amortization method. Under the amortization method, MSRs are amortized in proportion to, and over the period of, estimated net servicing income. The Company generally sells, without recourse, conforming, fixed-rate, closed-end, residential mortgages to Fannie Mae, where the Company services the mortgages sold and records MSRs. MSRs are included in other assets on the accompanying consolidated balance sheets. The Company evaluates MSRs for impairment on a quarterly basis. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate and loan type. If, by individual stratum, the carrying amount of the MSRs exceeds fair value, a valuation allowance is established. The valuation allowance is adjusted as the fair value changes. Changes in the valuation allowance are recognized in earnings as a component of mortgage lending income. The following table details the changes in amortized MSRs and the related valuation allowance for the respective periods. Quarter ended June 30, Six months ended June 30, (Dollars in thousands) 2024 2023 2024 2023 MSRs, net: Beginning balance $ 965 $ 1,096 $ 992 $ 1,151 Additions, net 15 9 27 9 Amortization expense (38) (55) (77) (110) Ending balance $ 942 $ 1,050 $ 942 $ 1,050 Valuation allowance included in MSRs, net: Beginning of period $ — $ — $ — $ — End of period — — — — Fair value of amortized MSRs: Beginning of period $ 2,378 $ 2,419 $ 2,382 $ 2,369 End of period 2,346 2,312 2,346 2,312

Fair Value Disclosures	6 Months Ended
Fair Value Disclosures	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Disclosures Text Block	NOTE 7: FAIR VALUE Fair Value Hierarchy “Fair value” is defined by ASC 820, Fair Value Measurements and Disclosures , and focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for an asset or liability at the measurement date. GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1—inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. Level 2—inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable for the asset or liability, either directly or indirectly. Level 3—inputs to the valuation methodology are unobservable and reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset or liability. Level changes in fair value measurements Transfers between levels of the fair value hierarchy are generally recognized at the end of each reporting period. The Company monitors the valuation techniques utilized for each category of financial assets and liabilities to ascertain when transfers between levels have been affected. The nature of the Company’s financial assets and liabilities generally is such that transfers in and out of any level are expected to be infrequent. For the six months ended June 30, 2024, there were no transfers between levels and no changes in valuation techniques for the Company’s financial assets and liabilities. Assets and liabilities measured at fair value on a recurring basis Securities available-for-sale Fair values of securities available for sale were primarily measured using Level 2 inputs. For these securities, the Company obtains pricing data from third party pricing services. These third party pricing services consider observable data that may include broker/dealer quotes, market spreads, cash flows, benchmark yields, reported trades for similar securities, market consensus prepayment speeds, credit information, and the securities’ terms and conditions. On a quarterly basis, management reviews the pricing data received from the third party pricing services for reasonableness given current market conditions. As part of its review, management may obtain non-binding third party broker/dealer quotes to validate the fair value measurements. In addition, management will periodically submit pricing information provided by the third party pricing services to another independent valuation firm on a sample basis. This independent valuation firm will compare the prices provided by the third party pricing service with its own prices and will review the significant assumptions and valuation methodologies used with management. The following table presents the balances of the assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, respectively, by caption, on the accompanying consolidated balance sheets by ASC 820 valuation hierarchy (as described above). Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2024: Securities available-for-sale: Agency obligations $ 52,716 — 52,716 — Agency MBS 183,941 — 183,941 — State and political subdivisions 17,702 — 17,702 — Total securities available-for-sale 254,359 — 254,359 — Total assets at fair value $ 254,359 — 254,359 — December 31, 2023: Securities available-for-sale: Agency obligations $ 53,879 — 53,879 — Agency MBS 198,289 — 198,289 — State and political subdivisions 18,742 — 18,742 — Total securities available-for-sale 270,910 — 270,910 — Total assets at fair value $ 270,910 — 270,910 — Assets and liabilities measured at fair value on a nonrecurring basis Collateral Dependent Loans Collateral dependent loans are measured at the fair value of the collateral securing the loan less estimated selling costs. The fair value of real estate collateral is determined based on real estate appraisals which are generally based on recent sales of comparable properties which are then adjusted for property specific factors. Non-real estate collateral is valued based on various sources, including third party asset valuations and internally determined values based on cost adjusted for depreciation and other judgmentally determined discount factors. Collateral dependent loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower's underlying financial condition. Mortgage servicing rights, net MSRs, net, included in other assets on the accompanying consolidated balance sheets, are carried at the lower of cost or estimated fair value. MSRs do not trade in an active market with readily observable prices. To determine the fair value of MSRs, the Company engages an independent third party. The independent third party’s valuation model calculates the present value of estimated future net servicing income using assumptions that market participants would use in estimating future net servicing income, including estimates of mortgage prepayment speeds, discount rates, default rates, costs to service, escrow account earnings, contractual servicing fee income, ancillary income, and late fees. Periodically, the Company will review broker surveys and other market research to validate significant assumptions used in the model. The significant unobservable inputs include mortgage prepayment speeds or the constant prepayment rate (“CPR”) and the weighted average discount rate. Because the valuation of MSRs requires the use of significant unobservable inputs, all of the Company’s MSRs are classified within Level 3 of the valuation hierarchy. The following table presents the balances of the assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31, 2023, respectively, by caption, on the accompanying consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above): Quoted Prices in Active Markets Other Significant for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2024: Loans held for sale $ 30 — 30 — Loans, net (1) 753 — — 753 Other assets (2) 942 — — 942 Total assets at fair value $ 1,725 — 30 1,695 December 31, 2023: Loans, net (1) $ 783 — — 783 Other assets (2) 992 — — 992 Total assets at fair value $ 1,775 — — 1,775 (1) Loans considered collateral dependent under ASC 326. (2) Represents MSRs, net, carried at lower of cost or estimated fair value. Quantitative Disclosures for Level 3 Fair Value Measurements At June 30, 2024 and December 31, 2023, the Company had no Level 3 assets measured at fair value on a recurring basis. For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2024 and December 31, 2023, the significant unobservable inputs used in the fair value measurements and the range of such inputs with respect to such assets are presented below. Range of Weighted Carrying Significant Unobservable Average (Dollars in thousands) Amount Valuation Technique Unobservable Input Inputs of Input June 30, 2024: Collateral dependent loans $ 753 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 942 Discounted cash flow Prepayment speed or CPR 6.4 - 11.5 6.7 Discount rate 10.0 - 12.0 10.0 December 31, 2023: Collateral dependent loans $ 783 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 992 Discounted cash flow Prepayment speed or CPR 5.9 - 10.6 6.0 Discount rate 10.5 - 12.5 10.5 Fair Value of Financial Instruments ASC 825, Financial Instruments , requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, where it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are explained below. Where quoted market prices are not available, fair values are based on estimates using discounted cash flow analyses. Discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following fair value estimates cannot be substantiated by comparison to independent markets and should not be considered representative of the liquidation value of the Company’s financial instruments, but rather are good-faith estimates of the fair value of financial instruments held by the Company. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Loans, net Fair values for loans were calculated using discounted cash flows. The discount rates reflected current rates at which similar loans would be made for the same remaining maturities. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. The fair value of loans was measured using an exit price notion. Loans held for sale Fair values of loans held for sale are determined using quoted secondary market prices for similar loans. Time Deposits Fair values for time deposits were estimated using discounted cash flows. The discount rates were based on rates currently offered for deposits with similar remaining maturities. The carrying value, related estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments at June 30, 2024 and December 31, 2023 are presented below. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which fair value approximates carrying value included cash and cash equivalents. Financial liabilities for which fair value approximates carrying value included noninterest-bearing demand deposits, interest-bearing demand deposits, and savings deposits. Fair value approximates carrying value in these financial liabilities due to these products having no stated maturity. Additionally, financial liabilities for which fair value approximates carrying value included overnight borrowings such as federal funds purchased and securities sold under agreements to repurchase. The following table summarizes our fair value estimates: Fair Value Hierarchy Carrying Estimated Level 1 Level 2 Level 3 (Dollars in thousands) amount fair value inputs inputs Inputs June 30, 2024: Financial Assets: Loans, net (1) $ 570,926 $ 536,965 $ — $ — $ 536,965 Loans held for sale 30 30 — 30 — Financial Liabilities: Time Deposits $ 196,292 $ 193,940 $ — $ 193,940 $ — December 31, 2023: Financial Assets: Loans, net (1) $ 550,431 $ 526,372 $ — $ — $ 526,372 Financial Liabilities: Time Deposits $ 198,215 $ 195,171 $ — $ 195,171 $ — (1) Represents loans, net of allowance for credit losses. The fair value of loans was measured using an exit price notion.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Summary of Signficant Accounting Policies
Nature of Business Policy	General Auburn National Bancorporation, Inc. (the “Company”) provides a full range of banking services to individuals and commercial customers in Lee County, Alabama and surrounding areas through its wholly owned subsidiary, AuburnBank (the “Bank”). The Company does not have any segments other than banking that are considered material.
Basis of Presentation Policy	Basis of Presentation and Use of Estimates The unaudited consolidated financial statements in this report have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited consolidated financial statements include, in the opinion of management, all adjustments necessary to present a fair statement of the financial position and the results of operations for all periods presented. All such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results of operations that the Company and its subsidiaries may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
Consolidation Policy	The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany transactions and accounts are eliminated in consolidation.
Use of Estimates Policy	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of allowance for credit losses on loans and investment securities, fair value of financial instruments, and the valuation of deferred tax assets and other real estate owned (“OREO”).
Revenue Recognition Policy	Revenue Recognition The Company’s sources of income that fall within the scope of ASC 606 include service charges on deposits, ATM and interchange fees and gains and losses on sales of other real estate, all of which are presented as components of noninterest income. The following is a summary of the revenue streams that fall within the scope of ASC 606: ● Service charges on deposits, investment services, ATM and interchange fees – Fees from these services are either (i) transaction-based, for which the performance obligations are satisfied when the individual transaction is processed, or (ii) set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction-based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. ● Gains on sales of OREO – A gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. ASC 606 lists several criteria required to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. In addition to the loan-to-value ratio, where the seller provides the purchaser with financing, the analysis is based on various other factors, including the credit quality of the purchaser, the structure of the loan, and any other factors that we believe may affect collectability.
Subsequent Events Policy	Subsequent Events The Company has evaluated the effects of events and transactions through the date of this filing that have occurred subsequent to June 30, 2024. The Company does not believe there were any material subsequent events during this period that would have required further recognition or disclosure in the unaudited consolidated financial statements included in this report.
Error Correction	Correction of Error The disclosure of loans by vintage in Note 5 – Loans and Allowance for Credit Losses in the Company’s Annual Report on Form 10-K for year ended December 31, 2023 contained incorrect information as it pertains to loans originated by vintage and revolving loans. All current period gross charge-off data, total loans by segment and total loans by credit quality indicator were correctly reported. The loans originated by vintage and revolving loans as of December 31, 2023 have been corrected in the comparative presentation in Note 5 – Loans and Allowance for Credit Losses in the Notes herein.
Reclassification Policy	Reclassifications Certain amounts reported in prior periods have been reclassified to conform to the current -period presentation. These reclassifications had no effect on the Company’s previously reported net earnings or total stockholders’ equity.
Accounting Developments	Accounting Standards Adopted in 2024 On January 1, 2024, the Company adopted ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . ASU 2023-02 now permits reporting entities to elect to account for their equity investments made primarily to receive income tax credits and other income tax benefits, regardless of the program from which the income tax credits or benefits are received, using the proportional amortization method if certain conditions are met. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company adopted ASU 2023-02 effective January 1, 2024 and recorded a cumulative effect of change in accounting standard adjustment which reduced beginning retained earnings by $0.3 million. The Company, beginning January 1, 2024, accounts for its investments in New Markets Tax Credits (“NMTCs”) using the proportional amortization method through charges to the provision for income taxes. See Note 3, Variable Interest Entities.

Basic and Diluted Earnings Per Share (Tables)	6 Months Ended
Basic and Diluted Earnings Per Share (Tables)	Jun. 30, 2024
Basic and Diluted Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Quarter ended June 30, Six months ended June 30, (Dollars in thousands, except share and per share data) 2024 2023 2024 2023 Basic and diluted: Net earnings $ 1,734 $ 1,928 $ 3,105 $ 3,892 Weighted average common shares outstanding 3,493,699 3,500,064 3,493,681 3,501,098 Net earnings per share $ 0.50 $ 0.55 $ 0.89 $ 1.11

Variable Interest Entity (Tables)	6 Months Ended
Variable Interest Entity (Tables)	Jun. 30, 2024
Variable Interest Entity [Abstract]
Variable Interest Entity [Table Text Block]	(Dollars in thousands) Maximum Loss Exposure Asset Recognized Classification Type: New Markets Tax Credit investment $ 1,082 $ 1,082 Other assets

Securities (Tables)	6 Months Ended
Securities (Tables)	Jun. 30, 2024
Investments debt and equity securities [Abstract]
Available-for-sale Securities [Table Text Block]	1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost June 30, 2024 Agency obligations (a) $ — 17,309 35,407 — 52,716 — 8,501 $ 61,217 Agency MBS (a) 59 19,849 14,808 149,225 183,941 — 30,314 214,255 State and political subdivisions — 568 9,037 8,097 17,702 1 2,961 20,662 Total available-for-sale $ 59 37,726 59,252 157,322 254,359 1 41,776 $ 296,134 December 31, 2023 Agency obligations (a) $ 331 10,339 43,209 — 53,879 — 8,195 $ 62,074 Agency MBS (a) 32 15,109 22,090 161,058 198,289 — 27,838 226,127 State and political subdivisions — — 9,691 9,051 18,742 1 2,731 21,472 Total available-for-sale $ 363 25,448 74,990 170,109 270,910 1 38,764 $ 309,673 (a) Includes securities issued by U.S. government agencies or government-sponsored entities. Expected lives of these securities may differ from contractual maturities because (i) issuers may have the right to call or repay such securities obligations with or without prepayment penalties and (ii) loans incuded in Agency MBS generally have the right to prepay such loan in whole or in part at any time.
Available-for-sale Securities, Continuous Unrealized Loss Position [Table Text Block]	Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2024: Agency obligations $ — — 52,716 8,501 $ 52,716 8,501 Agency MBS 10 — 183,931 30,314 183,941 30,314 State and political subdivisions 1,817 38 14,163 2,923 15,980 2,961 Total $ 1,827 38 250,810 41,738 $ 252,637 41,776 December 31, 2023: Agency obligations $ — — 53,879 8,195 $ 53,879 8,195 Agency MBS 66 1 198,223 27,837 198,289 27,838 State and political subdivisions 793 2 14,408 2,729 15,201 2,731 Total $ 859 3 266,510 38,761 $ 267,369 38,764

Loan and Allowance for Credit Losses (Tables)	6 Months Ended
Loan and Allowance for Credit Losses (Tables)	Jun. 30, 2024
Loans And Leases Receivable Disclosure [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	June 30, December 31, (Dollars in thousands) 2024 2023 Commercial and industrial $ 77,627 $ 73,374 Construction and land development 73,688 68,329 Commercial real estate: Owner occupied 63,384 66,783 Hotel/motel 38,542 39,131 Multi-family 44,135 45,841 Other 151,171 135,552 Total commercial real estate 297,232 287,307 Residential real estate: Consumer mortgage 60,957 60,545 Investment property 58,470 56,912 Total residential real estate 119,427 117,457 Consumer installment 10,094 10,827 Total Loans $ 578,068 $ 557,294
Past Due Financing Receivables [Table Text Block]	Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (Dollars in thousands) Current Past Due 90 days Loans Accrual Loans June 30, 2024: Commercial and industrial $ 77,625 2 — 77,627 — $ 77,627 Construction and land development 73,284 404 — 73,688 — 73,688 Commercial real estate: Owner occupied 62,631 — — 62,631 753 63,384 Hotel/motel 38,542 — — 38,542 — 38,542 Multi-family 44,135 — — 44,135 — 44,135 Other 151,171 — — 151,171 — 151,171 Total commercial real estate 296,479 — — 296,479 753 297,232 Residential real estate: Consumer mortgage 60,805 111 — 60,916 41 60,957 Investment property 58,372 98 — 58,470 — 58,470 Total residential real estate 119,177 209 — 119,386 41 119,427 Consumer installment 10,071 23 — 10,094 — 10,094 Total $ 576,636 638 — 577,274 794 $ 578,068 December 31, 2023: Commercial and industrial $ 73,108 266 — 73,374 — $ 73,374 Construction and land development 68,329 — — 68,329 — 68,329 Commercial real estate: Owner occupied 66,000 — — 66,000 783 66,783 Hotel/motel 39,131 — — 39,131 — 39,131 Multi-family 45,841 — — 45,841 — 45,841 Other 135,552 — — 135,552 — 135,552 Total commercial real estate 286,524 — — 286,524 783 287,307 Residential real estate: Consumer mortgage 60,442 — — 60,442 103 60,545 Investment property 56,597 290 — 56,887 25 56,912 Total residential real estate 117,039 290 — 117,329 128 117,457 Consumer installment 10,781 46 — 10,827 — 10,827 Total $ 555,781 602 — 556,383 911 $ 557,294
Financing Receivable Credit Quality Indicators [Table Text Block]	Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) June 30, 2024: Commercial and industrial Pass $ 5,671 13,080 19,641 13,026 5,350 17,043 3,485 $ 77,296 Special mention — 74 — — — — — 74 Substandard 54 6 187 10 — — — 257 Nonaccrual — — — — — — — — Total commercial and industrial 5,725 13,160 19,828 13,036 5,350 17,043 3,485 77,627 Current period gross charge-offs — — 9 — — — — 9 Construction and land development Pass 17,898 27,794 23,510 1,544 1,823 144 — 72,713 Special mention 332 404 — — — — — 736 Substandard 239 — — — — — — 239 Nonaccrual — — — — — — — — Total construction and land development 18,469 28,198 23,510 1,544 1,823 144 — 73,688 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 509 12,454 7,030 17,282 9,469 9,711 4,991 61,446 Special mention 931 254 — — — — — 1,185 Substandard — — — — — — — — Nonaccrual — — — — — 753 — 753 Total owner occupied 1,440 12,708 7,030 17,282 9,469 10,464 4,991 63,384 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 245 8,822 9,677 3,142 1,397 14,993 266 38,542 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 245 8,822 9,677 3,142 1,397 14,993 266 38,542 Current period gross charge-offs — — — — — — — — Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) June 30, 2024: Multi-family Pass 192 11,710 17,279 1,916 5,967 6,505 566 44,135 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 192 11,710 17,279 1,916 5,967 6,505 566 44,135 Current period gross charge-offs — — — — — — — — Other Pass 26,641 21,591 26,844 25,885 13,606 18,612 16,961 150,140 Special mention 905 — — — — — — 905 Substandard — — — — 126 — — 126 Nonaccrual — — — — — — — — Total other 27,546 21,591 26,844 25,885 13,732 18,612 16,961 151,171 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 3,621 18,043 18,685 2,614 2,612 12,084 2,272 59,931 Special mention — — — — — 490 — 490 Substandard — — — — — 495 — 495 Nonaccrual — — — — — 41 — 41 Total consumer mortgage 3,621 18,043 18,685 2,614 2,612 13,110 2,272 60,957 Current period gross charge-offs — — — — — — — — Investment property Pass 7,691 12,004 11,111 8,908 12,301 5,773 281 58,069 Special mention — — — — — — — — Substandard — 82 95 — 224 — — 401 Nonaccrual — — — — — — — — Total investment property 7,691 12,086 11,206 8,908 12,525 5,773 281 58,470 Current period gross charge-offs — — — — — — — — Consumer installment Pass 3,216 3,443 2,098 359 123 191 582 10,012 Special mention — 9 27 10 — — — 46 Substandard 10 21 5 — — — — 36 Nonaccrual — — — — — — — — Total consumer installment 3,226 3,473 2,130 369 123 191 582 10,094 Current period gross charge-offs — 18 24 1 — — — 43 Total loans Pass 65,684 128,941 135,875 74,676 52,648 85,056 29,404 572,284 Special mention 2,168 741 27 10 — 490 — 3,436 Substandard 303 109 287 10 350 495 — 1,554 Nonaccrual — — — — — 794 — 794 Total loans $ 68,155 129,791 136,189 74,696 52,998 86,835 29,404 $ 578,068 Total current period gross charge-offs $ — 18 33 1 — — — 52 Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Commercial and industrial Pass $ 11,571 18,074 13,746 5,602 7,298 7,819 9,003 $ 73,113 Special mention — — — — — — — — Substandard 55 203 — — 3 — — 261 Nonaccrual — — — — — — — — Total commercial and industrial 11,626 18,277 13,746 5,602 7,301 7,819 9,003 73,374 Current period gross charge-offs — — 13 — 151 — — 164 Construction and land development Pass 38,646 25,382 1,716 1,526 120 157 782 68,329 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total construction and land development 38,646 25,382 1,716 1,526 120 157 782 68,329 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 12,966 7,337 18,548 10,458 3,948 9,786 2,647 65,690 Special mention 260 — — — — — — 260 Substandard — — — — 50 — — 50 Nonaccrual — — — — 783 — — 783 Total owner occupied 13,226 7,337 18,548 10,458 4,781 9,786 2,647 66,783 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Current period gross charge-offs — — — — — — — — Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Multi-family Pass 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Current period gross charge-offs — — — — — — — — Other Pass 25,810 36,076 31,687 14,597 10,736 15,440 1,052 135,398 Special mention — — — — — — — — Substandard — — — 154 — — — 154 Nonaccrual — — — — — — — — Total other 25,810 36,076 31,687 14,751 10,736 15,440 1,052 135,552 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 20,147 20,177 2,683 2,665 1,281 12,217 249 59,419 Special mention — — — — 190 305 — 495 Substandard — — — — — 528 — 528 Nonaccrual — — — — — 103 — 103 Total consumer mortgage 20,147 20,177 2,683 2,665 1,471 13,153 249 60,545 Current period gross charge-offs — — — — — — — — Investment property Pass 13,398 12,490 9,397 12,209 5,485 1,865 1,478 56,322 Special mention 41 — — — — — — 41 Substandard 43 248 — 233 — — — 524 Nonaccrual — — — — — 25 — 25 Total investment property 13,482 12,738 9,397 12,442 5,485 1,890 1,478 56,912 Current period gross charge-offs — — — — — — — — Consumer installment Pass 5,688 3,837 740 206 106 141 — 10,718 Special mention 9 25 9 2 — — — 45 Substandard 37 11 5 11 — — — 64 Nonaccrual — — — — — — — — Total consumer installment 5,734 3,873 754 219 106 141 — 10,827 Current period gross charge-offs 34 57 13 1 — — — 105 Total loans Pass 149,630 151,201 83,675 54,868 36,645 62,122 15,820 553,961 Special mention 310 25 9 2 190 305 — 841 Substandard 135 462 5 398 53 528 — 1,581 Nonaccrual — — — — 783 128 — 911 Total loans $ 150,075 151,688 83,689 55,268 37,671 63,083 15,820 $ 557,294 Total current period gross charge-offs $ 34 57 26 1 151 — — 269
Schedule Of Composition Of Provision For Credit Losses [Table Text Block]]	Quarter ended June 30, Six months ended June 30, (Dollars in thousands) 2024 2023 2024 2023 Provision for credit losses: Loans $ (64) $ (331) $ 221 $ (291) Reserve for unfunded commitments (59) (31) (10) (5) Total provision for (reversal of) credit losses $ (123) $ (362) $ 211 $ (296)
Allowance for Credit Losses on Financing Receivables [Table Text Block]	(Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended: June 30, 2024 Beginning balance $ 1,415 840 4,202 613 145 $ 7,215 Charge-offs (9) — — — (19) (28) Recoveries 8 — — 2 9 19 Net (charge-offs) recoveries (1) — — 2 (10) (9) Provision for (reversal of) credit losses (48) 102 (111) (12) 5 (64) Ending balance $ 1,366 942 4,091 603 140 $ 7,142 Six months ended: June 30, 2024 Beginning balance $ 1,288 960 3,921 546 148 $ 6,863 Charge-offs (9) — — — (43) (52) Recoveries 74 — — 5 31 110 Net recoveries (charge-offs) 65 — — 5 (12) 58 Provision for (reversal of) credit losses 13 (18) 170 52 4 221 Ending balance $ 1,366 942 4,091 603 140 $ 7,142 (Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended: June 30, 2023 Beginning balance $ 1,232 1,021 3,966 497 105 $ 6,821 Charge-offs — — — — (56) (56) Recoveries 194 — — 5 1 200 Net recoveries (charge-offs) 194 — — 5 (55) 144 Provision for (reversal of) credit losses (228) (16) (178) 27 64 (331) Ending balance $ 1,198 1,005 3,788 529 114 $ 6,634 Six months ended: June 30, 2023 Beginning balance $ 747 949 3,109 828 132 $ 5,765 Impact of adopting ASC 326 532 (17) 873 (347) (22) 1,019 Charge-offs — — — — (67) (67) Recoveries 196 — — 10 2 208 Net recoveries (charge-offs) 196 — — 10 (65) 141 Provision for (reversal of) credit losses (277) 73 (194) 38 69 (291) Ending balance $ 1,198 1,005 3,788 529 114 $ 6,634
Schedule Of Financing Receivables NonAccrual Status [Table Text Block]	CECL Nonaccrual loans Nonaccrual loans Total (Dollars in thousands) with no Allowance with an Allowance Nonaccrual Loans June 30, 2024 Commercial real estate $ 753 — 753 Residential real estate — 41 41 Total $ 753 41 794 December 31, 2023 Commercial real estate $ 783 — 783 Residential real estate — 128 128 Total $ 783 128 911
Schedule Of Collateral Dependent Loans Individually Evaluated For ACL [Table Text Block]	(Dollars in thousands) Real Estate Total Loans June 30, 2024: Commercial real estate $ 753 $ 753 Total $ 753 $ 753 December 31, 2023: Commercial real estate $ 783 $ 783 Total $ 783 $ 783

Mortgage Servicing Rights, Net (Tables)	6 Months Ended
Mortgage Servicing Rights, Net (Tables)	Jun. 30, 2024
Mortgage Servicing [Abstract]
Schedule Of Servicing Assets At Fair Value [Table Text Block]	Quarter ended June 30, Six months ended June 30, (Dollars in thousands) 2024 2023 2024 2023 MSRs, net: Beginning balance $ 965 $ 1,096 $ 992 $ 1,151 Additions, net 15 9 27 9 Amortization expense (38) (55) (77) (110) Ending balance $ 942 $ 1,050 $ 942 $ 1,050 Valuation allowance included in MSRs, net: Beginning of period $ — $ — $ — $ — End of period — — — — Fair value of amortized MSRs: Beginning of period $ 2,378 $ 2,419 $ 2,382 $ 2,369 End of period 2,346 2,312 2,346 2,312

Fair Value (Tables)	6 Months Ended
Fair Value (Tables)	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2024: Securities available-for-sale: Agency obligations $ 52,716 — 52,716 — Agency MBS 183,941 — 183,941 — State and political subdivisions 17,702 — 17,702 — Total securities available-for-sale 254,359 — 254,359 — Total assets at fair value $ 254,359 — 254,359 — December 31, 2023: Securities available-for-sale: Agency obligations $ 53,879 — 53,879 — Agency MBS 198,289 — 198,289 — State and political subdivisions 18,742 — 18,742 — Total securities available-for-sale 270,910 — 270,910 — Total assets at fair value $ 270,910 — 270,910 —
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]	Quoted Prices in Active Markets Other Significant for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) June 30, 2024: Loans held for sale $ 30 — 30 — Loans, net (1) 753 — — 753 Other assets (2) 942 — — 942 Total assets at fair value $ 1,725 — 30 1,695 December 31, 2023: Loans, net (1) $ 783 — — 783 Other assets (2) 992 — — 992 Total assets at fair value $ 1,775 — — 1,775 (1) Loans considered collateral dependent under ASC 326. (2) Represents MSRs, net, carried at lower of cost or estimated fair value.
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]	Range of Weighted Carrying Significant Unobservable Average (Dollars in thousands) Amount Valuation Technique Unobservable Input Inputs of Input June 30, 2024: Collateral dependent loans $ 753 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 942 Discounted cash flow Prepayment speed or CPR 6.4 - 11.5 6.7 Discount rate 10.0 - 12.0 10.0 December 31, 2023: Collateral dependent loans $ 783 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 992 Discounted cash flow Prepayment speed or CPR 5.9 - 10.6 6.0 Discount rate 10.5 - 12.5 10.5
Financial Instruments [Table Text Block]	Fair Value Hierarchy Carrying Estimated Level 1 Level 2 Level 3 (Dollars in thousands) amount fair value inputs inputs Inputs June 30, 2024: Financial Assets: Loans, net (1) $ 570,926 $ 536,965 $ — $ — $ 536,965 Loans held for sale 30 30 — 30 — Financial Liabilities: Time Deposits $ 196,292 $ 193,940 $ — $ 193,940 $ — December 31, 2023: Financial Assets: Loans, net (1) $ 550,431 $ 526,372 $ — $ — $ 526,372 Financial Liabilities: Time Deposits $ 198,215 $ 195,171 $ — $ 195,171 $ — (1) Represents loans, net of allowance for credit losses. The fair value of loans was measured using an exit price notion.

Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic and Diluted Earnings Per Share [Abstract]
Net earnings	$ 1,734	$ 1,928	$ 3,105	$ 3,892
Basic weighted average shares outstanding	3,493,699	3,500,064	3,493,681	3,501,098
Basic earnings per share	$ 0.50	$ 0.55	$ 0.89	$ 1.11

Variable Interest Entities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Maxium Loss Exposure [Member]
Variable Interest Entities [Line Items]
New Markets Tax Credit Investment	$ 1,082
Asset Recognized [Member]
Variable Interest Entities [Line Items]
New Markets Tax Credit Investment	$ 1,082

Security Types (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Available For Sale Securities Debt Maturities Fair Value [Line Items]
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	$ 59	$ 363
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	37,726	25,448
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value	59,252	74,990
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	157,322	170,109
Available-for-sale Securities, Fair Value, Total	254,359	270,910
Available For Sale Securities, Gross Unrealized Gains	1	1
Available For Sale Securities, Gross Unrealized Losses	41,776	38,764
Available-for-sale Securities, Amortized Cost Basis	296,134	309,673
US Government and Government Agencies and Authorities [Member]
Available For Sale Securities Debt Maturities Fair Value [Line Items]
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	0	331
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	17,309	10,339
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value	35,407	43,209
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	0	0
Available-for-sale Securities, Fair Value, Total	52,716	53,879
Available For Sale Securities, Gross Unrealized Gains	0	0
Available For Sale Securities, Gross Unrealized Losses	8,501	8,195
Available-for-sale Securities, Amortized Cost Basis	61,217	62,074
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available For Sale Securities Debt Maturities Fair Value [Line Items]
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	59	32
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	19,849	15,109
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value	14,808	22,090
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	149,225	161,058
Available-for-sale Securities, Fair Value, Total	183,941	198,289
Available For Sale Securities, Gross Unrealized Gains	0	0
Available For Sale Securities, Gross Unrealized Losses	30,314	27,838
Available-for-sale Securities, Amortized Cost Basis	214,255	226,127
US States and Political Subdivisions Debt Securities [Member]
Available For Sale Securities Debt Maturities Fair Value [Line Items]
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	0	0
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	568	0
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value	9,037	9,691
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	8,097	9,051
Available-for-sale Securities, Fair Value, Total	17,702	18,742
Available For Sale Securities, Gross Unrealized Gains	1	1
Available For Sale Securities, Gross Unrealized Losses	2,961	2,731
Available-for-sale Securities, Amortized Cost Basis	$ 20,662	$ 21,472

Securities Continuous Unrealized Loss (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 1,827	$ 859
Available-for-sale Securities Continuous Unrealized Loss Position Less than 12 Months Aggregate Losses	38	3
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	250,810	266,510
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses	41,738	38,761
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	252,637	267,369
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses	41,776	38,764
US Government and Government Agencies and Authorities [Member]
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities Continuous Unrealized Loss Position Less than 12 Months Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	52,716	53,879
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses	8,501	8,195
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	52,716	53,879
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses	8,501	8,195
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	10	66
Available-for-sale Securities Continuous Unrealized Loss Position Less than 12 Months Aggregate Losses	0	1
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	183,931	198,223
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses	30,314	27,837
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	183,941	198,289
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses	30,314	27,838
US States and Political Subdivisions Debt Securities [Member]
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,817	793
Available-for-sale Securities Continuous Unrealized Loss Position Less than 12 Months Aggregate Losses	38	2
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	14,163	14,408
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses	2,923	2,729
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	15,980	15,201
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses	$ 2,961	$ 2,731

Securities Textuals (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Securities (Textuals) [Abstract]
Available-for-sale Securities Pledged as Collateral	$ 202.5	$ 211.8
Cost-method Investments, Aggregate Carrying Amount	$ 1.4

Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 578,068	$ 557,294
Commercial and Industrial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	77,627	73,374
Construction And Land Development Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	73,688	68,329
Commercial Real Estate Owner Occupied Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	63,384	66,783
Commercial Real Estate Hotel Motel [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	38,542	39,131
Commercial Real Estate Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	44,135	45,841
Commercial Real Estate Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	151,171	135,552
Commercial Real Estate Loans, Total [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	297,232	287,307
Residential Real Estate Consumer Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	60,957	60,545
Residential Real Estate Investment Property Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	58,470	56,912
Residential Real Estate Loans, Total [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	119,427	117,457
Consumer Installment and Revolving Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 10,094	$ 10,827

Loans Past Due Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	$ 577,274	$ 556,383
Non Accrual	794	911
Loans and Leases Receivable, Gross, Carrying Amount	578,068	557,294
Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	576,636	555,781
Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	638	602
Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	77,627	73,374
Loans and Leases Receivable, Gross, Carrying Amount	77,627	73,374
Commercial and Industrial Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	77,625	73,108
Commercial and Industrial Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	2	266
Commercial and Industrial Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Construction And Land Development Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	73,688	68,329
Loans and Leases Receivable, Gross, Carrying Amount	73,688	68,329
Construction And Land Development Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	73,284	68,329
Construction And Land Development Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	404	0
Construction And Land Development Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	62,631	66,000
Non Accrual	753	783
Loans and Leases Receivable, Gross, Carrying Amount	63,384	66,783
Commercial Real Estate Owner Occupied Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	62,631	66,000
Commercial Real Estate Owner Occupied Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Owner Occupied Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Hotel Motel [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	38,542	39,131
Non Accrual	0
Loans and Leases Receivable, Gross, Carrying Amount	38,542	39,131
Commercial Real Estate Hotel Motel [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	38,542	39,131
Commercial Real Estate Hotel Motel [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Hotel Motel [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	44,135	45,841
Non Accrual	0	0
Loans and Leases Receivable, Gross, Carrying Amount	44,135	45,841
Commercial Real Estate Multifamily [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	44,135	45,841
Commercial Real Estate Multifamily [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Multifamily [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	151,171	135,552
Non Accrual	0	0
Loans and Leases Receivable, Gross, Carrying Amount	151,171	135,552
Commercial Real Estate Other Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	151,171	135,552
Commercial Real Estate Other Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Other Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Loans, Total [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	296,479	286,524
Non Accrual	753	783
Loans and Leases Receivable, Gross, Carrying Amount	297,232	287,307
Commercial Real Estate Loans, Total [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	296,479	286,524
Commercial Real Estate Loans, Total [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Commercial Real Estate Loans, Total [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Residential Real Estate Consumer Mortgage Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	60,916	60,442
Non Accrual	41	103
Loans and Leases Receivable, Gross, Carrying Amount	60,957	60,545
Residential Real Estate Consumer Mortgage Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	60,805	60,442
Residential Real Estate Consumer Mortgage Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	111	0
Residential Real Estate Consumer Mortgage Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Residential Real Estate Investment Property Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	58,470	56,887
Non Accrual	0	25
Loans and Leases Receivable, Gross, Carrying Amount	58,470	56,912
Residential Real Estate Investment Property Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	58,372	56,597
Residential Real Estate Investment Property Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	98	290
Residential Real Estate Investment Property Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Residential Real Estate Loans, Total [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	119,386	117,329
Non Accrual	41	128
Loans and Leases Receivable, Gross, Carrying Amount	119,427	117,457
Residential Real Estate Loans, Total [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	119,177	117,039
Residential Real Estate Loans, Total [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	209	290
Residential Real Estate Loans, Total [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	0	0
Consumer Installment and Revolving Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	10,094	10,827
Loans and Leases Receivable, Gross, Carrying Amount	10,094	10,827
Consumer Installment and Revolving Loans [Member] \| Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	10,071	10,781
Consumer Installment and Revolving Loans [Member] \| Accruing 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	23	46
Consumer Installment and Revolving Loans [Member] \| Accruing Greater Than 90 days {Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Accruing Loans	$ 0	$ 0

Loan Credit Quality Analysis (Details) - USD ($)	6 Months Ended	12 Months Ended
Loan Credit Quality Analysis (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 794,000	$ 911,000
Current Year	68,155,000	150,075,000
1 Year Prior	129,791,000	151,688,000
2 year prior	136,189,000	83,689,000
3 year prior	74,696,000	55,268,000
4 year pior	52,998,000	37,671,000
Prior	86,835,000	63,083,000
Revolving Loans	29,404,000	15,820,000
Total loans	578,068,000	557,294,000
Financing Receivable Excluding Accrued Interest Year One Originated Current Fiscal Year Writeoff	0	34,000
Financing Receivable Excluding Accrued Interest Year Two Originated Current Fiscal Year Writeoff	18,000	57,000
Financing Receivable Excluding Accrued Interest Year Three Originated Current Fiscal Year Writeoff	33,000	26,000
Financing Receivable Excluding Accrued Interest Year Four Originated Current Fiscal Year Writeoff	1,000	1,000
Financing Receivable Excluding Accrued Interest Year Five Originated Current Fiscal Year Writeoff		151,000
Financing Receivable Excluding Accrued Interest Year Originated More Than Five Years Before Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Writeoff	52,000	269,000
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	65,684,000	149,630,000
1 Year Prior	128,941,000	151,201,000
2 year prior	135,875,000	83,675,000
3 year prior	74,676,000	54,868,000
4 year pior	52,648,000	36,645,000
Prior	85,056,000	62,122,000
Revolving Loans	29,404,000	15,820,000
Total loans	572,284,000	553,961,000
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	2,168,000	310,000
1 Year Prior	741,000	25,000
2 year prior	27,000	9,000
3 year prior	10,000	2,000
4 year pior	0	190,000
Prior	490,000	305,000
Revolving Loans	0	0
Total loans	3,436,000	841,000
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	303,000	135,000
1 Year Prior	109,000	462,000
2 year prior	287,000	5,000
3 year prior	10,000	398,000
4 year pior	350,000	53,000
Prior	495,000	528,000
Revolving Loans	0	0
Total loans	1,554,000	1,581,000
NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	783,000
Prior	794,000	128,000
Revolving Loans	0	0
Total loans	794,000	911,000
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	5,725,000	11,626,000
1 Year Prior	13,160,000	18,277,000
2 year prior	19,828,000	13,746,000
3 year prior	13,036,000	5,602,000
4 year pior	5,350,000	7,301,000
Prior	17,043,000	7,819,000
Revolving Loans	3,485,000	9,003,000
Total loans	77,627,000	73,374,000
Financing Receivable Excluding Accrued Interest Year One Originated Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Year Two Originated Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Year Three Originated Current Fiscal Year Writeoff	9,000	13,000
Financing Receivable Excluding Accrued Interest Year Four Originated Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Year Five Originated Current Fiscal Year Writeoff		151,000
Financing Receivable Excluding Accrued Interest Year Originated More Than Five Years Before Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Writeoff	9,000	164,000
Commercial and Industrial Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	5,671,000	11,571,000
1 Year Prior	13,080,000	18,074,000
2 year prior	19,641,000	13,746,000
3 year prior	13,026,000	5,602,000
4 year pior	5,350,000	7,298,000
Prior	17,043,000	7,819,000
Revolving Loans	3,485,000	9,003,000
Total loans	77,296,000	73,113,000
Commercial and Industrial Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	74,000	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	74,000	0
Commercial and Industrial Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	54,000	55,000
1 Year Prior	6,000	203,000
2 year prior	187,000	0
3 year prior	10,000	0
4 year pior	0	3,000
Prior	0	0
Revolving Loans	0	0
Total loans	257,000	261,000
Commercial and Industrial Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Construction And Land Development Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	18,469,000	38,646,000
1 Year Prior	28,198,000	25,382,000
2 year prior	23,510,000	1,716,000
3 year prior	1,544,000	1,526,000
4 year pior	1,823,000	120,000
Prior	144,000	157,000
Revolving Loans	0	782,000
Total loans	73,688,000	68,329,000
Construction And Land Development Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	17,898,000	38,646,000
1 Year Prior	27,794,000	25,382,000
2 year prior	23,510,000	1,716,000
3 year prior	1,544,000	1,526,000
4 year pior	1,823,000	120,000
Prior	144,000	157,000
Revolving Loans	0	782,000
Total loans	72,713,000	68,329,000
Construction And Land Development Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	332,000	0
1 Year Prior	404,000	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	736,000	0
Construction And Land Development Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	239,000	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	239,000	0
Construction And Land Development Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	753,000	783,000
Current Year	1,440,000	13,226,000
1 Year Prior	12,708,000	7,337,000
2 year prior	7,030,000	18,548,000
3 year prior	17,282,000	10,458,000
4 year pior	9,469,000	4,781,000
Prior	10,464,000	9,786,000
Revolving Loans	4,991,000	2,647,000
Total loans	63,384,000	66,783,000
Commercial Real Estate Owner Occupied Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	509,000	12,966,000
1 Year Prior	12,454,000	7,337,000
2 year prior	7,030,000	18,548,000
3 year prior	17,282,000	10,458,000
4 year pior	9,469,000	3,948,000
Prior	9,711,000	9,786,000
Revolving Loans	4,991,000	2,647,000
Total loans	61,446,000	65,690,000
Commercial Real Estate Owner Occupied Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	931,000	260,000
1 Year Prior	254,000	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	1,185,000	260,000
Commercial Real Estate Owner Occupied Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	50,000
Prior	0	0
Revolving Loans	0	0
Total loans	0	50,000
Commercial Real Estate Owner Occupied Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	783,000
Prior	753,000	0
Revolving Loans	0	0
Total loans	753,000	783,000
Commercial Real Estate Hotel Motel [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0
Current Year	245,000	9,025,000
1 Year Prior	8,822,000	9,873,000
2 year prior	9,677,000	3,205,000
3 year prior	3,142,000	1,493,000
4 year pior	1,397,000	3,881,000
Prior	14,993,000	11,654,000
Revolving Loans	266,000	0
Total loans	38,542,000	39,131,000
Commercial Real Estate Hotel Motel [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	245,000	9,025,000
1 Year Prior	8,822,000	9,873,000
2 year prior	9,677,000	3,205,000
3 year prior	3,142,000	1,493,000
4 year pior	1,397,000	3,881,000
Prior	14,993,000	11,654,000
Revolving Loans	266,000	0
Total loans	38,542,000	39,131,000
Commercial Real Estate Hotel Motel [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Hotel Motel [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Hotel Motel [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Current Year	192,000	12,379,000
1 Year Prior	11,710,000	17,955,000
2 year prior	17,279,000	1,953,000
3 year prior	1,916,000	6,112,000
4 year pior	5,967,000	3,790,000
Prior	6,505,000	3,043,000
Revolving Loans	566,000	609,000
Total loans	44,135,000	45,841,000
Commercial Real Estate Multifamily [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	192,000	12,379,000
1 Year Prior	11,710,000	17,955,000
2 year prior	17,279,000	1,953,000
3 year prior	1,916,000	6,112,000
4 year pior	5,967,000	3,790,000
Prior	6,505,000	3,043,000
Revolving Loans	566,000	609,000
Total loans	44,135,000	45,841,000
Commercial Real Estate Multifamily [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Multifamily [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Multifamily [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Current Year	27,546,000	25,810,000
1 Year Prior	21,591,000	36,076,000
2 year prior	26,844,000	31,687,000
3 year prior	25,885,000	14,751,000
4 year pior	13,732,000	10,736,000
Prior	18,612,000	15,440,000
Revolving Loans	16,961,000	1,052,000
Total loans	151,171,000	135,552,000
Commercial Real Estate Other Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	26,641,000	25,810,000
1 Year Prior	21,591,000	36,076,000
2 year prior	26,844,000	31,687,000
3 year prior	25,885,000	14,597,000
4 year pior	13,606,000	10,736,000
Prior	18,612,000	15,440,000
Revolving Loans	16,961,000	1,052,000
Total loans	150,140,000	135,398,000
Commercial Real Estate Other Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	905,000	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	905,000	0
Commercial Real Estate Other Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	154,000
4 year pior	126,000	0
Prior	0	0
Revolving Loans	0	0
Total loans	126,000	154,000
Commercial Real Estate Other Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	0
Commercial Real Estate Loans, Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	753,000	783,000
Total loans	297,232,000	287,307,000
Residential Real Estate Consumer Mortgage Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	41,000	103,000
Current Year	3,621,000	20,147,000
1 Year Prior	18,043,000	20,177,000
2 year prior	18,685,000	2,683,000
3 year prior	2,614,000	2,665,000
4 year pior	2,612,000	1,471,000
Prior	13,110,000	13,153,000
Revolving Loans	2,272,000	249,000
Total loans	60,957,000	60,545,000
Residential Real Estate Consumer Mortgage Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	3,621,000	20,147,000
1 Year Prior	18,043,000	20,177,000
2 year prior	18,685,000	2,683,000
3 year prior	2,614,000	2,665,000
4 year pior	2,612,000	1,281,000
Prior	12,084,000	12,217,000
Revolving Loans	2,272,000	249,000
Total loans	59,931,000	59,419,000
Residential Real Estate Consumer Mortgage Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	190,000
Prior	490,000	305,000
Revolving Loans	0	0
Total loans	490,000	495,000
Residential Real Estate Consumer Mortgage Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	495,000	528,000
Revolving Loans	0	0
Total loans	495,000	528,000
Residential Real Estate Consumer Mortgage Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	41,000	103,000
Revolving Loans	0	0
Total loans	41,000	103,000
Residential Real Estate Investment Property Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	25,000
Current Year	7,691,000	13,482,000
1 Year Prior	12,086,000	12,738,000
2 year prior	11,206,000	9,397,000
3 year prior	8,908,000	12,442,000
4 year pior	12,525,000	5,485,000
Prior	5,773,000	1,890,000
Revolving Loans	281,000	1,478,000
Total loans	58,470,000	56,912,000
Residential Real Estate Investment Property Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	7,691,000	13,398,000
1 Year Prior	12,004,000	12,490,000
2 year prior	11,111,000	9,397,000
3 year prior	8,908,000	12,209,000
4 year pior	12,301,000	5,485,000
Prior	5,773,000	1,865,000
Revolving Loans	281,000	1,478,000
Total loans	58,069,000	56,322,000
Residential Real Estate Investment Property Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	41,000
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	0	41,000
Residential Real Estate Investment Property Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	43,000
1 Year Prior	82,000	248,000
2 year prior	95,000	0
3 year prior	0	233,000
4 year pior	224,000	0
Prior	0	0
Revolving Loans	0	0
Total loans	401,000	524,000
Residential Real Estate Investment Property Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	25,000
Revolving Loans	0	0
Total loans	0	25,000
Residential Real Estate Loans, Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	41,000	128,000
Total loans	119,427,000	117,457,000
Consumer Installment and Revolving Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	3,226,000	5,734,000
1 Year Prior	3,473,000	3,873,000
2 year prior	2,130,000	754,000
3 year prior	369,000	219,000
4 year pior	123,000	106,000
Prior	191,000	141,000
Revolving Loans	582,000	0
Total loans	10,094,000	10,827,000
Financing Receivable Excluding Accrued Interest Year One Originated Current Fiscal Year Writeoff	0	34,000
Financing Receivable Excluding Accrued Interest Year Two Originated Current Fiscal Year Writeoff	18,000	57,000
Financing Receivable Excluding Accrued Interest Year Three Originated Current Fiscal Year Writeoff	24,000	13,000
Financing Receivable Excluding Accrued Interest Year Four Originated Current Fiscal Year Writeoff	1,000	1,000
Financing Receivable Excluding Accrued Interest Year Five Originated Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Year Originated More Than Five Years Before Current Fiscal Year Writeoff		0
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Writeoff	43,000	105,000
Consumer Installment and Revolving Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	3,216,000	5,688,000
1 Year Prior	3,443,000	3,837,000
2 year prior	2,098,000	740,000
3 year prior	359,000	206,000
4 year pior	123,000	106,000
Prior	191,000	141,000
Revolving Loans	582,000	0
Total loans	10,012,000	10,718,000
Consumer Installment and Revolving Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	9,000
1 Year Prior	9,000	25,000
2 year prior	27,000	9,000
3 year prior	10,000	2,000
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	46,000	45,000
Consumer Installment and Revolving Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	10,000	37,000
1 Year Prior	21,000	11,000
2 year prior	5,000	5,000
3 year prior	0	11,000
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	36,000	64,000
Consumer Installment and Revolving Loans [Member] \| NonAccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Current Year	0	0
1 Year Prior	0	0
2 year prior	0	0
3 year prior	0	0
4 year pior	0	0
Prior	0	0
Revolving Loans	0	0
Total loans	$ 0	$ 0

Composition of Provision for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Summary Of Provision For Credit Losses [Abstract]
Provision for credit losses related to loans and leases	$ (64)	$ (331)	$ 221	$ (291)
Provision For Credit Losses In Reserve For Unfunded Commitments	(59)	(31)	(10)	(5)
Total Provision for credit losses	$ (123)	$ (362)	$ 211	$ (296)

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	$ 7,215	$ 6,821	$ 6,863	$ 5,765
Impact of Adoption of ASC 326				1,019
Financing Receivable, Allowance for Credit Losses, Charge-offs	(28)	(56)	(52)	(67)
Financing Receivable, Allowance for Credit Losses, Recoveries	19	200	110	208
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	(9)	144	58	141
Provision for credit losses	(64)	(331)	221	(291)
Financing Receivable, Allowance for Credit Losses	7,142	6,634	7,142	6,634
Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	1,415	1,232	1,288	747
Impact of Adoption of ASC 326				532
Financing Receivable, Allowance for Credit Losses, Charge-offs	(9)	0	(9)	0
Financing Receivable, Allowance for Credit Losses, Recoveries	8	194	74	196
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	(1)	194	65	196
Provision for credit losses	(48)	(228)	13	(277)
Financing Receivable, Allowance for Credit Losses	1,366	1,198	1,366	1,198
Construction And Land Development Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	840	1,021	960	949
Impact of Adoption of ASC 326				(17)
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	0	0	0	0
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	0	0	0	0
Provision for credit losses	102	(16)	(18)	73
Financing Receivable, Allowance for Credit Losses	942	1,005	942	1,005
Commercial Real Estate Loans, Total [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	4,202	3,966	3,921	3,109
Impact of Adoption of ASC 326				873
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	0	0	0	0
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	0	0	0	0
Provision for credit losses	(111)	(178)	170	(194)
Financing Receivable, Allowance for Credit Losses	4,091	3,788	4,091	3,788
Residential Real Estate Loans, Total [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	613	497	546	828
Impact of Adoption of ASC 326				(347)
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	2	5	5	10
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	2	5	5	10
Provision for credit losses	(12)	27	52	38
Financing Receivable, Allowance for Credit Losses	603	529	603	529
Consumer Installment and Revolving Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Financing Receivable, Allowance for Credit Losses	145	105	148	132
Impact of Adoption of ASC 326				(22)
Financing Receivable, Allowance for Credit Losses, Charge-offs	(19)	(56)	(43)	(67)
Financing Receivable, Allowance for Credit Losses, Recoveries	9	1	31	2
Financing Receivable Allowance For Credit Losses Net Chargeoffs Recoveries	(10)	(55)	(12)	(65)
Provision for credit losses	5	64	4	69
Financing Receivable, Allowance for Credit Losses	$ 140	$ 114	$ 140	$ 114

Nonaccural Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable Nonaccrual Status [Line Items]
Financing Receivable Nonaccrual No Allowance	$ 753	$ 783
Financing Receivable Nonaccrual With Allowance	41	128
Financing Receivable, Recorded Investment, Nonaccrual Status	794	911
Commercial Real Estate Loans, Total [Member]
Financing Receivable Nonaccrual Status [Line Items]
Financing Receivable Nonaccrual No Allowance	753	783
Financing Receivable, Recorded Investment, Nonaccrual Status	753	783
Residential Real Estate Loans, Total [Member]
Financing Receivable Nonaccrual Status [Line Items]
Financing Receivable Nonaccrual With Allowance	41	128
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 41	$ 128

Collateral Dependent Loans Individually Evaluated (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Collateral Dependent Loans [Line Items]
Financing Receivable, Individually Evaluated Collateral Depedent Loans	$ 753	$ 783
Commercial Real Estate Collateral [Member]
Collateral Dependent Loans [Line Items]
Financing Receivable, Individually Evaluated Collateral Depedent Loans	753	783
Commercial Real Estate Loans, Total [Member]
Collateral Dependent Loans [Line Items]
Financing Receivable, Individually Evaluated Collateral Depedent Loans	753	783
Commercial Real Estate Loans, Total [Member] \| Commercial Real Estate Collateral [Member]
Collateral Dependent Loans [Line Items]
Financing Receivable, Individually Evaluated Collateral Depedent Loans	$ 753	$ 783

Loans Textuals (Details)	Jun. 30, 2024
Loan and Lease Disclosure (Textuals) [Abstract]
Percentage Of Loans Secured By Real Estate	84.80%

Mortgage Servicing Rights, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Servicing Asset at Amortized Value, Balance [Roll Forward]
Servicing Asset at Amortized Cost, Beginning	$ 965	$ 1,096	$ 992	$ 1,151
Servicing Asset at Amortized Value, Additions	15	9	27	9
Servicing Asset at Amortized Value, Amortization	38	55	77	110
Servicing Asset at Amortized Cost, Ending	942	1,050	942	1,050
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance [Abstract]
Valuation Allowance for Impairment of Recognized Servicing Assets, Beginning Balance	0	0	0	0
Valuation Allowance for Impairment of Recognized Servicing Assets, Ending Balance	0	0	0	0
Servicing Asset at Amortized Value, Fair Value [Abstract]
Servicing Asset at Amortized Value, Fair Value, Beginning	2,378	2,419	2,382	2,369
Servicing Asset at Amortized Value, Fair Value, Ending	$ 2,346	$ 2,312	$ 2,346	$ 2,312

Fair Value Recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Measurements, Recurring [Member]
Fair Value Disclosure, Securities Available-for-Sale [Abstract]
Fair Value Disclosure, Agency Obligations	$ 52,716	$ 53,879
Fair Value Disclosure, Agency RMBS	183,941	198,289
Fair Value Disclosure, State and Political Subdivisions	17,702	18,742
Fair Value Disclosure, Securities Available-for-Sale, Total	254,359	270,910
Other Assets, Fair Value Disclosure	254,359	270,910
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value Disclosure, Securities Available-for-Sale [Abstract]
Fair Value Disclosure, Agency Obligations	0	0
Fair Value Disclosure, Agency RMBS	0	0
Fair Value Disclosure, State and Political Subdivisions	0	0
Fair Value Disclosure, Securities Available-for-Sale, Total	0	0
Other Assets, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value Disclosure, Securities Available-for-Sale [Abstract]
Fair Value Disclosure, Agency Obligations	52,716	53,879
Fair Value Disclosure, Agency RMBS	183,941	198,289
Fair Value Disclosure, State and Political Subdivisions	17,702	18,742
Fair Value Disclosure, Securities Available-for-Sale, Total	254,359	270,910
Other Assets, Fair Value Disclosure	254,359	270,910
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value Disclosure, Securities Available-for-Sale [Abstract]
Fair Value Disclosure, Agency Obligations	0	0
Fair Value Disclosure, Agency RMBS	0	0
Fair Value Disclosure, State and Political Subdivisions	0	0
Fair Value Disclosure, Securities Available-for-Sale, Total	0	0
Other Assets, Fair Value Disclosure	0	0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Loans Held-for-sale, Fair Value Disclosure	30
Impaired Loans, Fair Value Disclosure	753	783
Other Assets Fair Value Nonrecurring	942	992
Assets, Fair Value Disclosure, Nonrecurring	1,725	1,775
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Loans Held-for-sale, Fair Value Disclosure	0
Impaired Loans, Fair Value Disclosure	0	0
Other Assets Fair Value Nonrecurring	0	0
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Loans Held-for-sale, Fair Value Disclosure	30
Impaired Loans, Fair Value Disclosure	0	0
Other Assets Fair Value Nonrecurring	0	0
Assets, Fair Value Disclosure, Nonrecurring	30	0
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Loans Held-for-sale, Fair Value Disclosure	0
Impaired Loans, Fair Value Disclosure	753	783
Other Assets Fair Value Nonrecurring	942	992
Assets, Fair Value Disclosure, Nonrecurring	$ 1,695	$ 1,775

Fair Value Unobservable Inputs (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Impaired Loans [Member]
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Assets, Fair Value Disclosure	$ 753	$ 783
Impaired Loans [Member] \| Appraisal, Appraisal Discount [Member] \| Minimum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	10.00%	10.00%
Impaired Loans [Member] \| Appraisal, Appraisal Discount [Member] \| Maximum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	10.00%	10.00%
Impaired Loans [Member] \| Appraisal, Appraisal Discount [Member] \| Weighted Average
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	10.00%	10.00%
Mortgage Servicing Rights [Member]
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Assets, Fair Value Disclosure	$ 942	$ 992
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Prepayment Speed [Member] \| Minimum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	6.40%	5.90%
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Prepayment Speed [Member] \| Maximum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	11.50%	10.60%
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Prepayment Speed [Member] \| Weighted Average
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	6.70%	6.00%
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Discount Rate [Member] \| Minimum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	10.00%	10.50%
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Discount Rate [Member] \| Maximum
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	12.00%	12.50%
Mortgage Servicing Rights [Member] \| Discounted Cash Flow, Discount Rate [Member] \| Weighted Average
Schedule Of Fair Value Significant Unobservable Inputs Used [Line Items]
Unobservable Input, Input Percent	10.00%	10.50%

Fair Value Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Financial Assets: [Abstract]
Fair Value, Financial Instruments, Loans, Net	$ 570,926	$ 550,431
Fair Value, Financial Instruments, Loans Held For Sale	30
Fair Value, Financial Liabilities: [Abstract]
Fair Value, Financial Instruments, Time Deposits	196,292	198,215
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Financial Assets: [Abstract]
Fair Value, Financial Instruments, Loans, Net	536,965	526,372
Fair Value, Financial Instruments, Loans Held For Sale	30
Fair Value, Financial Liabilities: [Abstract]
Fair Value, Financial Instruments, Time Deposits	193,940	195,171
Estimate of Fair Value, Fair Value Disclosure [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Financial Assets: [Abstract]
Fair Value, Financial Instruments, Loans, Net	0	0
Fair Value, Financial Instruments, Loans Held For Sale	0
Fair Value, Financial Liabilities: [Abstract]
Fair Value, Financial Instruments, Time Deposits	0	0
Estimate of Fair Value, Fair Value Disclosure [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Financial Assets: [Abstract]
Fair Value, Financial Instruments, Loans, Net	0	0
Fair Value, Financial Instruments, Loans Held For Sale	30
Fair Value, Financial Liabilities: [Abstract]
Fair Value, Financial Instruments, Time Deposits	193,940	195,171
Estimate of Fair Value, Fair Value Disclosure [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Financial Assets: [Abstract]
Fair Value, Financial Instruments, Loans, Net	536,965	526,372
Fair Value, Financial Instruments, Loans Held For Sale	0
Fair Value, Financial Liabilities: [Abstract]
Fair Value, Financial Instruments, Time Deposits	$ 0	$ 0

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AUBN Auburn National Bancorporation Inc