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FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of carrying amount and estimated fair value of financial instruments


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Financial assets:
Cash and due from financial institutions	$	88,200	$	88,200	$	88,200	$	—	$	—
Interest-bearing deposits in other financial institutions	290,453		290,453		290,453		—		—
Investment securities	1,310,603		1,244,057		61,291		1,176,050		6,716
Loans held for sale	1,084		1,084		—		1,084		—
Loans	5,289,096		5,016,971		—		—		5,016,971
Mortgage servicing rights	8,672		11,301		—		—		11,301

Accrued interest receivable	23,559		23,559		651		4,075		18,833

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,891,198		1,891,198		1,891,198		—		—
Interest-bearing demand and savings and money market	3,734,629		3,734,629		3,734,629		—		—
Time	983,937		978,868		—		—		978,868

Long-term debt	76,547		73,579		—		—		73,579
Accrued interest payable	7,068		7,068		102		—		6,966


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,337,099	$	—	$	1,063	$	—	$	1,063	$	—
Standby letters of credit and financial guarantees written	2,624		—		39		—		39		—

Derivatives:

Forward sale commitments	1,095		(4)		(4)		—		(4)		—
Risk participation agreements	52,435		(3)		(3)		—		(3)		—
Back-to-back swap agreements:
Assets	60,660		3,045		3,045		—		3,045		—
Liabilities	(60,660)		(3,045)		(3,045)		—		(3,045)		—
Interest rate swap agreements	114,580		4,163		4,163		—		4,163		—


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Financial assets:
Cash and due from financial institutions	$	77,774	$	77,774	$	77,774	$	—	$	—
Interest-bearing deposits in other financial institutions	303,167		303,167		303,167		—		—
Investment securities	1,334,588		1,244,339		59,498		1,177,994		6,847
Loans held for sale	5,662		5,662		—		5,662		—
Loans	5,332,852		4,916,765		—		—		4,916,765
Mortgage servicing rights	8,473		12,387		—		—		12,387

Accrued interest receivable	23,378		23,378		462		4,607		18,309

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,888,937		1,888,937		1,888,937		—		—
Interest-bearing demand and savings and money market	3,667,889		3,667,889		3,667,889		—		—
Time	1,087,185		1,079,275		—		—		1,079,275

Long-term debt	156,345		153,760		—		—		153,760
Accrued interest payable	10,051		10,051		113		—		9,938


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,219,537	$	—	$	1,167	$	—	$	1,167	$	—
Standby letters of credit and financial guarantees written	2,702		—		41		—		41		—

Derivatives:
Interest rate lock commitments	469		(4)		(4)		—		(4)		—
Forward sale commitments	4,909		46		46		—		46		—
Risk participation agreements	35,183		—		—		—		—		—
Back-to-back swap agreements:
Assets	50,202		3,840		3,840		—		—		3,840
Liabilities	(50,202)		(3,840)		(3,840)		—		—		(3,840)
Interest rate swap agreements	115,545		8,382		8,382		—		8,382		—

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following tables present the fair value of assets and liabilities measured on a recurring basis as of the dates presented:


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Available-for-sale investment securities:
Debt securities:
States and political subdivisions	$	117,041	$	—	$	110,993	$	6,048

U.S. Treasury obligations and direct obligations of U.S Government agencies	100,025		61,291		38,734		—
Collateralized loan obligations	40,827				40,827		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	407,053		—		407,053		—
Residential - Non-government agencies	15,363		—		14,695		668
Commercial - U.S. government-sponsored entities and agencies	67,903		—		67,903		—


Total investment securities	748,212		61,291		680,205		6,716

Derivatives:

Forward sale commitments	(4)		—		(4)		—
Interest rate swap agreements	4,163		—		4,163		—
Risk participation agreements	(3)		—		(3)		—
Back-to-back swap agreements:
Assets	3,045		—		3,045		—
Liabilities	(3,045)		—		(3,045)		—
Total derivatives	4,156		—		4,156		—
Total	$	752,368	$	61,291	$	684,361	$	6,716


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Available-for-sale investment securities:
Debt securities:
States and political subdivisions	$	116,833	$	—	$	110,668	$	6,165

U.S. Treasury obligations and direct obligations of U.S Government agencies	81,200		59,498		21,702		—
Collateralized loan obligations	31,140				31,140		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	414,471		—		414,471		—
Residential - Non-government agencies	16,926		—		16,244		682
Commercial - U.S. government-sponsored entities and agencies	67,161		—		67,161		—
Commercial - Non-government agencies	9,927		—		9,927		—

Total investment securities	737,658		59,498		671,313		6,847

Derivatives:
Interest rate lock commitments	(4)		—		(4)		—
Forward sale commitments	46		—		46		—
Interest rate swap agreements	8,382		—		8,382		—

Back-to-back swap agreements:
Assets	3,840		—		—		3,840
Liabilities	(3,840)		—		—		(3,840)
Total derivatives	8,424		—		8,424		—
Total	$	746,082	$	59,498	$	679,737	$	6,847

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the

periods presented:


	Available-For-Sale Debt Securities:
(Dollars in thousands)	States and Political Subdivisions		Residential - Non-Government Agencies		Total
Balance as of December 31, 2023	$	6,436	$	714	$	7,150
Principal payments received	(241)		(24)		(265)

Unrealized net loss included in other comprehensive loss	(30)		(8)		(38)
Balance as of December 31, 2024	6,165		682		6,847
Principal payments received	(248)		(25)		(273)

Unrealized net (loss) gain included in other comprehensive income	131		11		142
Balance as of December 31, 2025	$	6,048	$	668	$	6,716

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2025 and 2024:


(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Weighted Average
December 31, 2025
States and Political Subdivisions	$	6,048	Discounted cash flow	Discount rate	5.92	%
Residential - Non-Government Agencies	668		Discounted cash flow	Discount rate	5.92	%
December 31, 2024
States and Political Subdivisions	6,165		Discounted cash flow	Discount rate	6.22	%
Residential - Non-Government Agencies	682		Discounted cash flow	Discount rate	6.22	%

- Definition

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

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