FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of carrying amount and estimated fair value of financial instruments


(dollars in thousands)					Fair Value Measurement Using
March 31, 2026	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)
Financial assets:
Cash and due from financial institutions	$	88,880	$	88,880	$	88,880	$	—	$	—
Interest-bearing deposits in other financial institutions	317,716		317,716		317,716		—		—
Investment securities	1,333,704		1,265,173		60,700		1,197,881		6,592
Loans held for sale	2,536		2,536		—		2,536		—
Loans	5,320,349		5,050,521		—		—		5,050,521
Mortgage servicing rights	8,520		11,642		—		—		11,642


Accrued interest receivable	24,320		24,320		1,187		4,436		18,697

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,897,593		1,897,593		1,897,593		—		—
Interest-bearing demand and savings and money market	3,807,157		3,807,157		3,807,157		—		—
Time	994,604		989,159		—		—		989,159

Long-term debt	76,547		74,607		—		—		74,607
Accrued interest payable	6,433		6,433		96		—		6,337


(dollars in thousands)							Fair Value Measurement Using
March 31, 2026	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)
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,356,240	$	—	$	1,196	$	—	$	1,196	$	—
Standby letters of credit and financial guarantees written	2,665		—		40		—		40		—

Derivatives:

Forward sale commitments	2,239		25		25		—		25		—
Risk participation agreements	52,212		(4)		(4)		—		(4)		—
Back-to-back swap agreements:
Assets	64,222		2,951		2,951		—		2,951		—
Liabilities	(64,222)		(2,951)		(2,951)		—		(2,951)		—
Interest rate swap agreements	114,580		4,536		4,536		—		4,536		—


(dollars in thousands)					Fair Value Measurement Using
December 31, 2025	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)
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


(dollars in thousands)							Fair Value Measurement Using
December 31, 2025	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)
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		—

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

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


(dollars in thousands)			Fair Value at Reporting Date Using
March 31, 2026	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
Debt securities:
States and political subdivisions	$	115,853	$	—	$	109,925	$	5,928
Corporate securities	5,003		—		5,003		—
U.S. Treasury and other government-sponsored entities and agencies	98,111		60,700		37,411		—
Collateralized loan obligations	74,238		—		74,238		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	403,647		—		403,647		—
Residential - Non-government agencies	15,038		—		14,374		664
Commercial - U.S. government-sponsored entities and agencies	67,266		—		67,266		—


Total available-for-sale investment securities	779,156		60,700		711,864		6,592



Derivatives:

Forward sale commitments	25		—		25		—
Risk participation agreements	(4)		—		(4)		—
Back-to-back swap agreements:
Assets	2,951		—		2,951		—
Liabilities	(2,951)		—		(2,951)		—
Interest rate swap agreements	4,536		—		4,536		—
Total derivatives	4,557		—		4,557		—
Total	$	783,713	$	60,700	$	716,421	$	6,592


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

U.S. Treasury and other government-sponsored entities and 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 available-for-sale investment securities	748,212		61,291		680,205		6,716



Derivatives:

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

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 at December 31, 2025	$	6,048	$	668	$	6,716
Principal payments received	(82)		(6)		(88)
Unrealized net gain (loss) included in other comprehensive income	(38)		2		(36)

Balance at March 31, 2026	$	5,928	$	664	$	6,592

Balance at December 31, 2024	$	6,165	$	682	$	6,847
Principal payments received	(51)		(6)		(57)
Unrealized net gain (loss) included in other comprehensive income	48		6		54

Balance at March 31, 2025	$	6,162	$	682	$	6,844

- 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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