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Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities, securities held in a deferred compensation plan and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other financial instruments at fair value on a nonrecurring basis, such as loans held for sale, loans individually evaluated, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability which are developed based on market data that we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability which are developed based on the best information available in the circumstances.
The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows.
Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets.
Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data.
Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
There have been no changes in our valuation methodologies during the three months ended March 31, 2026. Refer to Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2025 Form 10-K for more information on the valuation methodologies that we use for financial instruments recorded at fair value on a recurring or nonrecurring basis.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented:
March 31, 2026
(dollars in thousands)Level 1Level 2Level 3Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities$84,161 $— $— $84,161 
Collateralized mortgage obligations of U.S. government corporations and agencies(1)
— 626,502 — 626,502 
Residential mortgage-backed securities of U.S. government corporations and agencies(1)
— 33,094 — 33,094 
Commercial mortgage-backed securities of U.S. government corporations— 259,505 — 259,505 
Obligations of states and political subdivisions— 4,878 — 4,878 
Total Available-for-Sale Debt Securities84,161 923,979 — 1,008,140 
Equity securities1,378 — — 1,378 
Total Securities Available for Sale85,539 923,979 — 1,009,518 
Securities held in a deferred compensation plan9,453 — — 9,453 
Derivative financial assets:
Interest rate swap contracts - commercial loans— 32,943 — 32,943 
Interest rate lock commitments - mortgage loans— — 34 34 
Total Assets$94,992 $956,922 $34 $1,051,948 
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans$— $33,200 $— $33,200 
Interest rate swap contracts - cash flow hedge— 1,868 — 1,868 
Total Liabilities$— $35,068 $— $35,068 
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

December 31, 2025
(dollars in thousands)Level 1Level 2Level 3Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities$84,507 $— $— $84,507 
Collateralized mortgage obligations of U.S. government corporations and agencies(1)
— 624,263 — 624,263 
Residential mortgage-backed securities of U.S. government corporations and agencies(1)
— 31,336 — 31,336 
Commercial mortgage-backed securities of U.S. government corporations— 241,262 — 241,262 
Obligations of states and political subdivisions— 4,909 — 4,909 
Total Available-for-Sale Debt Securities84,507 901,770 — 986,277 
Equity securities1,382 — — 1,382 
Total Securities Available for Sale85,889 901,770 — 987,659 
Securities held in a deferred compensation plan14,212 — — 14,212 
Derivative financial assets:
Interest rate swap contracts - commercial loans— 33,669 — 33,669 
Interest rate lock commitments - mortgage loans— — 81 81 
Total Assets$100,101 $935,439 $81 $1,035,621 
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans$— $33,990 $— $33,990 
Interest rate swap contracts - cash flow hedge— 2,024 — 2,024 
Total Liabilities$— $36,014 $— $36,014 
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
Assets Recorded at Fair Value on a Nonrecurring Basis
We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities are recorded at the lower of cost or fair value in our consolidated financial statements and are remeasured only when events or circumstances indicate impairment. At March 31, 2026, individually evaluated loans of $1.7 million were measured at fair value on a nonrecurring basis and classified as Level 3 and individually evaluated loans of $1.2 million were measured at fair value and classified as Level 2. At December 31, 2025 individually evaluated loans of $10.6 million were classified as Level 3 and $5.3 million were classified as Level 2. There were no liabilities measured at fair value on a nonrecurring basis as of both March 31, 2026 and December 31, 2025.
Significant unobservable inputs used in the fair value measurements of Level 3 assets on a nonrecurring basis at March 31, 2026 and December 31, 2025 were as follows:
(dollars in thousands)March 31, 2026Valuation Technique
Significant Unobservable Inputs(1)
Collateral Adjustment(2)
Loans individually evaluated$1,689Collateral based valuationCollateral adjustments74%
(1)Represents discount adjustments to collateral values related to anticipated collection rates of accounts receivable based on management judgment.
(2)Represents the collateral adjustment of one loan.
(dollars in thousands)December 31, 2025Valuation Technique
Significant Unobservable Inputs(1)
Collateral Adjustment(2)
Loans individually evaluated$10,641Collateral based valuationCollateral adjustments10%
(1)Represents discount adjustments to collateral values related to anticipated collection rates of accounts receivable based on management judgment.
(2)Represents the collateral adjustment of one loan.
Fair Value of Financial Instruments
The following tables present the carrying values and fair values of our financial instruments at the dates presented:
Carrying
Value(1)
Fair Value Measurements at March 31, 2026
(dollars in thousands)TotalLevel 1Level 2Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits$339,059 $339,059 $339,059 $— $— 
Securities available for sale1,009,518 1,009,518 85,539 923,979 — 
Loans held for sale694 694 — 694 — 
Portfolio loans, net7,866,111 7,687,285 — — 7,687,285 
Securities held in a deferred compensation plan9,453 9,453 9,453 — — 
Mortgage servicing rights4,958 8,033 — — 8,033 
Interest rate swap contracts - commercial loans32,943 32,943 — 32,943 — 
Interest rate lock commitments - mortgage loans34 34 — — 34 
LIABILITIES
Deposits$8,185,219 $8,180,325 $6,205,727 $1,974,598 $— 
Collateral payable31,087 31,087 31,087 — — 
Short-term borrowings50,000 50,000 — 50,000 — 
Long-term borrowings50,794 50,793 — 50,793 — 
Junior subordinated debt securities49,493 49,493 — 49,493 — 
Interest rate swap contracts - commercial loans33,200 33,200 — 33,200 — 
Interest rate swap contracts - cash flow hedge1,868 1,868 — 1,868 — 
(1) As reported in the Consolidated Balance Sheets
Carrying
Value(1)
Fair Value Measurements at December 31, 2025
(dollars in thousands)TotalLevel 1Level 2Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits$163,436 $163,436 $163,436 $— $— 
Securities available for sale987,659 987,659 85,889 901,770 — 
Loans held for sale1,010 1,010 — 1,010 
Portfolio loans, net7,978,779 7,807,824 — — 7,807,824 
Collateral receivable2 2 2 — — 
Securities held in a deferred compensation plan14,212 14,212 14,212 — — 
Mortgage servicing rights5,034 8,034 — — 8,034 
Interest rate swaps - commercial loans33,669 33,669 — 33,669 — 
Interest rate lock commitments81 81 — — 81 
LIABILITIES
Deposits$7,958,831 $7,956,632 $6,010,039 $1,946,593 $— 
Collateral payable26,964 26,964 26,964 — — 
Short-term borrowings165,000 165,000 — 165,000 — 
Long-term borrowings50,815 50,856 — 50,856 — 
Junior subordinated debt securities49,478 49,478 — 49,478 — 
Interest rate swaps - commercial loans33,990 33,990 — 33,990 — 
Interest rate swaps - cash flow hedge2,024 2,024 — 2,024 — 
(1) As reported in the Consolidated Balance Sheets