FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2026

Summary of Assets Measured at Fair Value on Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025:


	Level 1		Level 2		Level 3		Total Fair Value Measurements
March 31, 2026
Financial Assets
Investment securities:
U.S. Treasury securities	$	14,197	$	—	$	—	$	14,197
U.S. Government Agencies	—		1,659		—		1,659

States and political subdivisions	—		194,728		5,620		200,348
GSE residential MBSs	—		237,001		—		237,001
GSE commercial MBSs	—		5,753		—		5,753
GSE residential CMOs	—		346,076		—		346,076

Non-agency CMOs	—		56,790		7,243		64,033


Asset-backed	—		71,481		4,247		75,728
Corporate debt	—		1,983		—		1,983
Other	240		—		—		240
Loans held for sale	—		3,366		—		3,366
Derivatives	—		13,051		63		13,114


Totals	$	14,437	$	931,888	$	17,173	$	963,498
Financial Liabilities
Derivatives	$	—	$	12,652	$	—	$	12,652


December 31, 2025
Financial Assets
Investment securities:
U.S. Treasury securities	$	14,211	$	—	$	—	$	14,211
U.S. Government Agencies	—		1,796		—		1,796

States and political subdivisions	—		196,482		5,666		202,148
GSE residential MBSs	—		234,103		—		234,103
GSE commercial MBSs	—		6,171		—		6,171
GSE residential CMOs	—		354,003		—		354,003
Non-agency CMOs	—		50,161		9,662		59,823



Asset-backed	—		78,250		—		78,250
Corporate debt	—		1,992		—		1,992
Other	243		—		—		243
Loans held for sale	—		6,090		—		6,090
Derivatives	—		14,638		38		14,676


Totals	$	14,454	$	943,686	$	15,366	$	973,506
Financial Liabilities
Derivatives	$	—	$	15,138	$	—	$	15,138

Summary of Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the periods ended March 31, 2026 and 2025:

Investment securities:


	Three Months Ended March 31,
		2026		2025
Balance, beginning of period		$	15,328	$	16,920


Unrealized losses included in OCI		(182)		(539)
Purchases		4,860		—
Net discount accretion		52		13
Principal payments and other		(1,707)		(129)


Transfers into level 3		7,182		—
Transfers out of level 3		(8,423)		—
Balance, end of period		$	17,110	$	16,265

Interest rate lock commitments on residential mortgages:


	Three Months Ended March 31,
		2026		2025
Balance, beginning of period		$	38	$	20

Total gains included in earnings		25		93


Balance, end of period		$	63	$	113

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2026 and December 31, 2025:


	Level 1		Level 2		Level 3		Total Fair Value Measurements
March 31, 2026
Individually Evaluated Loans
Commercial real estate:
Owner occupied	$	—	$	—	$	807	$	807


Non-owner occupied residential	—		—		106		106
Acquisition and development:

Commercial and land development	—		—		748		748

Commercial and industrial	—		—		2,547		2,547
Residential mortgage:
First lien	—		—		812		812

Home equity - lines of credit	—		—		6		6

Total individually evaluated loans	$	—	$	—	$	5,026	$	5,026








December 31, 2025
Individually Evaluated Loans
Commercial real estate:
Owner occupied	$	—	$	—	$	1,664	$	1,664


Non-owner occupied residential	—		—		31		31
Acquisition and development:

Commercial and land development	—		—		832		832

Commercial and industrial	—		—		2,494		2,494
Residential mortgage:
First lien	—		—		834		834

Home equity - lines of credit	—		—		9		9

Total individually evaluated loans	$	—	$	—	$	5,864	$	5,864






Mortgage servicing rights	$	—	$	—	$	536	$	536

Summary of Additional Qualitative Information

The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

Fair Value
Estimate

Valuation
Techniques

Unobservable Input (1)

Range

March 31, 2026

Individually evaluated loans

5,026

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10.00% - 84.00% discount

- Management adjustments for liquidation expenses

8.76% - 42.45% discount

December 31, 2025

Individually evaluated loans

5,864

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10.00% - 84.00% discount

- Management adjustments for liquidation expenses

8.28% - 65.04% discount

Mortgage servicing rights

536

Income approach - DCF

Weighted average CPR

6.86%

- Weighted average discount rate

9.02%

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at March 31, 2026 and December 31, 2025:


	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2026
Financial Assets
Cash and due from banks	$	49,014	$	49,014	$	49,014	$	—	$	—
Interest-bearing deposits with banks	112,122		112,122		112,122		—		—

Restricted investments in bank stock	23,984		n/a		n/a		n/a		n/a
Investment securities	947,018		947,018		14,437		915,471		17,110
Loans held for sale	3,366		3,366		—		3,366		—
Loans, net of allowance for credit losses	4,013,856		3,940,737		—		—		3,940,737

Derivatives	13,114		13,114		—		13,051		63
Accrued interest receivable	21,176		21,176		—		4,558		16,618

Financial Liabilities
Deposits	4,627,424		4,626,352		—		4,626,352		—

Securities sold under agreements to repurchase and federal funds purchased	19,264		19,264		—		19,264		—
FHLB advances and other borrowings	206,694		206,663		—		206,663		—
Subordinated notes and trust preferred debt	37,274		38,894		—		38,894		—

Derivatives	12,652		12,652		—		12,652		—
Accrued interest payable	3,140		3,140		—		3,140		—
Off-balance sheet instruments	—		—		—		—		—

December 31, 2025
Financial Assets
Cash and due from banks	$	42,083	$	42,083	$	42,083	$	—	$	—
Interest-bearing deposits with banks	107,691		107,691		107,691		—		—

Restricted investments in bank stock	26,717		n/a		n/a		n/a		n/a
Investment securities	952,740		952,740		14,454		922,958		15,328
Loans held for sale	6,090		6,090		—		6,090		—
Loans, net of allowance for loan losses	3,973,012		3,934,248		—		—		3,934,248

Derivatives	14,676		14,676		—		14,638		38
Accrued interest receivable	21,473		21,473		—		5,026		16,447

Financial Liabilities
Deposits	4,528,774		4,527,619		—		4,527,619		—

Securities sold under agreements to repurchase	24,542		24,542		—		24,542		—
FHLB advances and other borrowings	274,701		274,765		—		274,765		—
Subordinated notes and trust preferred debt	37,122		38,861		—		38,861		—

Derivatives	15,138		15,138		—		15,138		—
Accrued interest payable	3,497		3,497		—		3,497		—
Off-balance sheet instruments	—		—		—		—		—

- 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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