FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2025

FAIR VALUE MEASUREMENTS

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


		June 30, 2025
		Level 1			Level 2			Level 3			Total
(in thousands)		Inputs			Inputs			Inputs			Fair Value
Available for sale securities:
Obligations of US Government-sponsored enterprises		$	—		$	1,191		$	—		$	1,191
Mortgage-backed securities:
US Government-sponsored enterprises			—			182,654			—			182,654
US Government agency			—			133,379			—			133,379
Private label			—			18,292			—			18,292
Obligations of states and political subdivisions thereof			—			98,607			—			98,607
Corporate bonds			—			92,164			2,403			94,567
Loans held for sale			—			2,829			—			2,829
Derivative assets			—			12,387			238			12,625
Derivative liabilities			—			(10,831)			(54)			(10,885)


		December 31, 2024
		Level 1			Level 2			Level 3			Total
(in thousands)		Inputs			Inputs			Inputs			Fair Value
Available for sale securities:
Obligations of US Government-sponsored enterprises		$	—		$	1,318		$	—		$	1,318
Mortgage-backed securities:
US Government-sponsored enterprises			—			177,316			—			177,316
US Government agency			—			103,916			—			103,916
Private label			—			39,564			—			39,564
Obligations of states and political subdivisions thereof			—			105,452			—			105,452
Corporate bonds			—			93,452			—			93,452
Loans held for sale			—			1,235			—			1,235
Derivative assets			—			18,759			98			18,857
Derivative liabilities			—			(16,565)			—			(16,565)

Schedule of Changes in Level 3 Assets Measured on a Recurring Basis


		Assets (Liabilities)
		Interest Rate Lock			Forward			Corporate
(in thousands)		Commitments			Commitments			Bond
Three Months Ended June 30, 2025
Balance at beginning of period		$	114		$	(8)		$	—
Transfer into level 3 at the end of the period			—			—			2,403
Realized gain (loss) recognized in non-interest income			124			(46)			—
Balance at end of period		$	238		$	(54)		$	2,403

Three Months Ended June 30, 2024
Balance at beginning of period		$	56		$	(16)		$	—
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			90			31			—
Balance at end of period		$	146		$	15		$	—

Six Months Ended June 30, 2025
Balance at beginning of period		$	85		$	13		$	—
Transfer into level 3 at the end of the period			—			—			2,403
Realized gain (loss) recognized in non-interest income			153			(67)			—
Balance at end of period		$	238		$	(54)		$	2,403

Six Months Ended June 30, 2024
Balance at beginning of period		$	63		$	(20)		$	—
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			83			35			—
Balance at end of period		$	146		$	15		$	—

Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis


		Assets (Liabilities)
		Interest Rate Lock			Forward			Corporate
(in thousands)		Commitments			Commitments			Bond
Three Months Ended June 30, 2025
Balance at beginning of period		$	114		$	(8)		$	—
Transfer into level 3 at the end of the period			—			—			2,403
Realized gain (loss) recognized in non-interest income			124			(46)			—
Balance at end of period		$	238		$	(54)		$	2,403

Three Months Ended June 30, 2024
Balance at beginning of period		$	56		$	(16)		$	—
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			90			31			—
Balance at end of period		$	146		$	15		$	—

Six Months Ended June 30, 2025
Balance at beginning of period		$	85		$	13		$	—
Transfer into level 3 at the end of the period			—			—			2,403
Realized gain (loss) recognized in non-interest income			153			(67)			—
Balance at end of period		$	238		$	(54)		$	2,403

Six Months Ended June 30, 2024
Balance at beginning of period		$	63		$	(20)		$	—
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			83			35			—
Balance at end of period		$	146		$	15		$	—

Schedule of Quantitative Information, Valuation, Recurring


		Fair Value							Significant
		June 30,			Valuation		Unobservable		Unobservable
(in thousands, except ratios)		2025			Techniques		Inputs		Input Value
Assets (Liabilities)
Interest Rate Lock Commitment		$	238		Pull-through Rate Analysis		Closing Ratio			94	%
					Pricing Model		Origination Costs, per loan		$	1.7
					Discount Cash Flows		Mortgage Servicing Asset			1.0	%

Forward Commitments			(54)		Quoted prices for similar loans in active markets		Freddie Mac pricing system			$101.2 to $103.6

Corporate bond			2,403		Discounted Cash Flows		Discount Rate			7.39	%
							Cash Flows			$0 to $2,403
							Loss Severity			57.5	%
Total		$	2,587

		Fair Value							Significant
		December 31,			Valuation		Unobservable		Unobservable
(in thousands, except ratios)		2024			Techniques		Inputs		Input Value
Assets (Liabilities)
Interest Rate Lock Commitment		$	85		Pull-through Rate Analysis		Closing Ratio			93	%
					Pricing Model		Origination Costs, per loan		$	1.7
					Discount Cash Flows		Mortgage Servicing Asset			1.0	%

Forward Commitments			13		Quoted prices for similar loans in active markets		Freddie Mac pricing system			$99 to $102.9
Total		$	98

Summary of Applicable Non-Recurring Fair Value Measurements


														Fair Value
								Three Months Ended			Six Months Ended			Measurement Date as of
		Jun 30, 2025			Dec 31, 2024			June 30, 2025			June 30, 2025			June 30, 2025
		Level 3			Level 3			Total			Total			Level 3
(in thousands)		Inputs			Inputs			Gains (Losses)			Gains (Losses)			Inputs
Assets
Individually evaluated loans		$	3,583		$	3,224		$	147		$	359		June 2025
Capitalized servicing rights			6,729			7,285			(158)			(556)		June 2025
Premises held for sale			405			419			12			(14)		June 2025
Total		$	10,717		$	10,928		$	1		$	(211)

Schedule of Quantitative Information, Valuation, Non-recurring


(in thousands, except ratios)		Fair Value June 30, 2025			Valuation Techniques		Unobservable Inputs		Range (Weighted Average)^(a)
Assets
Individually evaluated loans		$	2,554		Fair value of collateral-appraised value		Loss severity			10% to 65%
							Appraised value			$75 to $1,260

Individually evaluated loans			1,029		Discount cash flow		Discount rate			4.00% to 9.25%
							Cash flows			$295 to $493

Capitalized servicing rights			6,729		Discounted cash flow		Constant prepayment rate			7.19%
							Discount rate			10.06%

Premises held for sale			405		Fair value of asset less selling costs		Appraised value			$425
							Selling Costs			5%
Total		$	10,717

(a)	Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.



(in thousands, except ratios)		Fair Value December 31, 2024			Valuation Techniques		Unobservable Inputs		Range (Weighted Average)^(a)
Assets
Individually evaluated loans		$	2,733		Fair value of collateral-appraised value		Loss severity			10% to 65%
							Appraised value			$257 to $1,260

Individually evaluated loans			491		Discount cash flow		Discount rate			4.00% to 4.99%
							Cash flows			$497 to $501

Capitalized servicing rights			7,285		Discounted cash flow		Constant prepayment rate			6.52%
							Discount rate			10.06%

Premises held for sale			419		Fair value of asset less selling costs		Appraised value			$440
							Selling Costs			5%
Total		$	10,928

(a)	Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.

Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments


		June 30, 2025
		Carrying			Fair
(in thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	87,035		$	87,035		$	87,035		$	—		$	—
Securities available for sale			528,690			528,690			—			526,287			2,403
FHLB stock			12,695			n/a			n/a			n/a			n/a
Loans held for sale			2,829			2,829			—			2,829			—
Net loans			3,123,779			3,023,904			—			—			3,023,904
Accrued interest receivable			15,737			15,737			23			3,540			12,174
Derivative assets			12,625			12,625			—			12,387			238

Financial Liabilities
Non-maturity deposits		$	2,397,216		$	2,259,932		$	—		$	2,259,932		$	—
Time deposits			894,772			891,659			—			891,659			—
Securities sold under agreements to repurchase			4,977			4,977			—			4,977			—
FHLB advances			251,464			251,267			—			251,267			—
Subordinated borrowings			40,620			45,542			—			45,542			—
Accrued interest payable			6,421			6,421			—			6,421			—
Derivative liabilities			10,855			10,885			—			10,831			54


		December 31, 2024
		Carrying			Fair
(in thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	72,162		$	72,162		$	72,162		$	—		$	—
Securities available for sale			521,018			521,018			—			521,018			—
FHLB stock			12,237			12,237			—			12,237			—
Loans held for sale			1,235			1,235			—			1,235			—
Net loans			3,147,096			2,999,290			—			—			2,999,290
Accrued interest receivable			3,974			3,974			—			3,974			—
Cash surrender value of bank-owned life insurance policies			81,858			81,858			—			81,858			—
Derivative assets			18,857			18,857			—			18,759			98

Financial Liabilities
Non-maturity deposits		$	2,437,414		$	2,282,389		$	—		$	2,282,389		$	—
Time deposits			830,274			828,068			—			828,068			—
Securities sold under agreements to repurchase			7,062			7,062			—			7,062			—
FHLB advances			242,919			242,779			—			242,779			—
Subordinated borrowings			40,620			46,070			—			46,070			—
Derivative liabilities			16,565			16,565			—			16,565			—

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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