NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2. FAIR VALUE OF FINANCIAL INSTRUMENTS Mortgage Servicing Rights: Fair value is based on market prices for comparable mortgage servicing contracts, wnehtesneravviaciilnagblien,coormalet.ernatively, is based on a valuation model that calculates the present value of estimated future Deposit Liabilities: The fair value of demand deposits, savings accounts, and certain money market deposits is tehs et i ma ma toeudnut spi na gy at bhlee roant eds ecmu rarnedn tal yt tohf fee rree dp of or tri ndge pdoastiet.s oTfhsei mf aiilra rv ar el umeaoi nf ifni xgemd -amt uart iut ri ei tsy. c e r t i f i c a t e s o f d e p o s i t i s Short Ǧ term Debt: The fair value of debt due on demand or with a maturity of three months or less is the amount payable on demand at the reporting date. Long Ǧ term Debt: Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Accrued Interest: The carrying amounts of accrued interest approximate fair value. Commitment to Extend Credit, Standby Letters of Credit, and Financial Guarantees Written: The fair value oa nf ds t ao nt hdebry l il en tetse rosf oc fo cmr emdiittm, uennut ss eadr ec obma sme de rocni a tl hl ien Ce oc mo mp amniyt m’ s epnr ti ms , er ervaot lev, i wn gh ihcohmi se tehqeusi tayml ien reas t, ec ruesdeidt cwa hr de nl i nt he es aforementioned off-balance sheet items become recognized. Assets measured at fair value on a recurring basis and non-recurring basis are summarized below: Quoted Prices Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) December 31, 2025: Recurring basis: Securities available-for-sale: U.S. Government agencies $ 59,076,555 $ Ǧ $ 59,076,555 $ Ǧ State and political subdivisions Ǧ Ǧ Ǧ Ǧ Mortgage-backed securities 3,658,934 Ǧ 3,658,934 Ǧ Other debt securities 66,295 Ǧ 66,295 Ǧ Loans held for sale 12,897,984 Ǧ 12,897,984 Ǧ Mortgage servicing rights 6,873,589 Ǧ Ǧ 6,873,589 Non-recurring basis: Impaired loans, with allowance 6,093,093 Ǧ Ǧ 6,093,093 Foreclosed assets Ǧ Ǧ Ǧ Ǧ $ 88,666,450 $ Ǧ $ 75,699,768 $ 12,966,682
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