Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value of Mortgage Loans Held for Sale

The following table presents a summary of mortgage loans held for sale accounted for under the fair value option:

(Dollars in thousands)	September 30, 2025	December 31, 2024
Aggregate fair value	$31,318	$21,708
Aggregate principal balance	30,689	21,420
Difference between fair value and principal balance	$629	$288

Items Recorded at Fair Value on a Recurring Basis

The following tables present the balances of assets and liabilities reported at fair value on a recurring basis:

(Dollars in thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
September 30, 2025
Assets:
Available for sale debt securities:
Obligations of U.S. government agencies and U.S government sponsored enterprises	$40,104	$—	$40,104	$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	902,923	—	902,923	—
Obligations of states and political subdivisions	654	—	654	—
Individual name issuer trust preferred debt securities	6,090	—	6,090	—
Corporate bonds	12,695	—	12,695	—
Mortgage loans held for sale	31,318	—	31,318	—
Derivative assets	30,813	—	30,813	—
Total assets at fair value on a recurring basis	$1,024,597	$—	$1,024,597	$—
Liabilities:
Derivative liabilities	$30,875	$—	$30,875	$—
Total liabilities at fair value on a recurring basis	$30,875	$—	$30,875	$—

(Dollars in thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2024
Assets:
Available for sale debt securities:
Obligations of U.S. government agencies and U.S government sponsored enterprises	$38,612	$—	$38,612	$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	855,147	—	855,147	—
Obligations of states and political subdivisions	655	—	655	—
Individual name issuer trust preferred debt securities	9,221	—	9,221	—
Corporate bonds	12,670	—	12,670	—
Mortgage loans held for sale	21,708	—	21,708	—
Derivative assets	54,302	—	54,302	—
Total assets at fair value on a recurring basis	$992,315	$—	$992,315	$—
Liabilities:
Derivative liabilities	$51,663	$—	$51,663	$—
Total liabilities at fair value on a recurring basis	$51,663	$—	$51,663	$—

Items Recorded at Fair Value on a Nonrecurring Basis

The following table presents the carrying value of assets held at September 30, 2025, which were written down to fair value during the nine months ended September 30, 2025:

(Dollars in thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral dependent individually analyzed loans	$1,010	$—	$—	$1,010
Total assets at fair value on a nonrecurring basis	$1,010	$—	$—	$1,010

The above table includes the carrying value of a collateral dependent C&I relationship that was written down to fair value. In the second quarter of 2025, the borrower declared bankruptcy due to cash flow problems. As of June 30, 2025, this C&I relationship had a carrying value of $9.3 million and a specific reserve of $2.3 million. Based on ensuing developments in the bankruptcy proceedings during the third quarter of 2025, which resulted in updated recovery estimates, the Corporation revised its estimate of expected credit losses on this relationship and recognized a charge-off of $8.3 million in the third quarter of 2025. The remaining carrying value of $1.0 million was collected in October 2025. In addition, see Note 4 for disclosure regarding a CRE loan with a carrying value of $4.3 million at June 30, 2025 that was written down to fair value in the third quarter of 2025 because the Corporation changed its exit strategy and decided to sell this loan.

The following table presents the carrying value of assets held at December 31, 2024, which were written down to fair value during the year ended December 31, 2024.

(Dollars in thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral dependent individually analyzed loans	$9,057	$—	$—	$9,057
Mortgage loans held for sale, at lower of cost or market	281,706	—	281,706	—
Total assets at fair value on a nonrecurring basis	$290,763	$—	$281,706	$9,057

Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis

The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring

basis for which the Corporation has utilized Level 3 inputs to determine fair value:

(Dollars in thousands)	Fair Value	Valuation Technique	Unobservable Input	Range of Inputs Utilized (Weighted Average)
September 30, 2025
Collateral dependent individually analyzed loans	$1,010	Appraisals of collateral	Discount for costs to sell	0%
			Appraisal adjustments	0%

(Dollars in thousands)	Fair Value	Valuation Technique	Unobservable Input	Inputs Utilized (Weighted Average)
December 31, 2024
Collateral dependent individually analyzed loans	$9,057	Appraisals of collateral	Discount for costs to sell	14% - 49% (16%)
			Appraisal adjustments	0% - 10% (7%)

Carrying Amounts and Estimated Fair Values of Financial Instruments

The estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented in the tables below:

(Dollars in thousands)
September 30, 2025	Carrying Amount	Total 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 cash equivalents	$192,331	$192,331	$192,331	$—	$—
Loans, net of allowance for credit losses on loans (1)	5,086,006	4,957,966	—	—	4,957,966
FHLB stock	36,331	36,331	—	36,331	—
Investment in BOLI	114,240	114,240	—	114,240	—
Financial Liabilities:
Non-maturity deposits	$3,988,838	$3,988,838	$—	$3,988,838	$—
Time deposits	1,233,998	1,231,117	—	1,231,117	—
FHLB advances	791,000	794,316	—	794,316	—
Junior subordinated debentures	22,681	19,916	—	19,916	—

(1)The estimated fair value excludes a $255 thousand negative basis adjustment associated with fair value hedges. See Note 8 for additional disclosure.

(Dollars in thousands)
December 31, 2024	Carrying Amount	Total 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 cash equivalents	$113,889	$113,889	$113,889	$—	$—
Loans, net of allowance for credit losses on loans (1)	5,095,878	4,952,110	—	—	4,952,110
FHLB stock	49,817	49,817	—	49,817	—
Investment in BOLI	106,777	106,777	—	106,777	—
Financial Liabilities:
Non-maturity deposits	$3,626,152	$3,626,152	$—	$3,626,152	$—
Time deposits	1,489,648	1,479,267	—	1,479,267	—
FHLB advances	1,125,000	1,125,819	—	1,125,819	—
Junior subordinated debentures	22,681	19,602	—	19,602	—

(1)The estimated fair value excludes a $1.5 million negative basis adjustment associated with fair value hedges. See Note 8 for additional disclosure.