v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying value and estimated fair values of the Company's financial instruments as of March 31, 2026 are as follows:
 March 31, 2026
 Carrying
Amount		Estimated Fair
Value		Readily
Available
Market
Prices (1)		Observable
Market
Prices (2)		Unobservable
Market
Prices (3)
 (Amounts In Thousands)
Financial instrument assets:
Cash and cash equivalents$56,079 $56,079 $56,079 $— $— 
Investment securities958,384 958,384 264,428 693,956 — 
Loans held for sale5,215 5,215 — 5,215 — 
Loans, net
Agricultural122,376 122,613 — — 122,613 
Commercial and financial283,147 283,407 — — 283,407 
Real estate:
Construction, 1 to 4 family residential100,807 101,216 — — 101,216 
Construction, land development and commercial255,521 258,234 — — 258,234 
Mortgage, farmland271,555 266,430 — — 266,430 
Mortgage, 1 to 4 family first liens1,235,134 1,191,868 — — 1,191,868 
Mortgage, 1 to 4 family junior liens134,337 133,767 — — 133,767 
Mortgage, multi-family493,034 480,460 — — 480,460 
Mortgage, commercial558,021 550,103 — — 550,103 
Loans to individuals26,344 25,654 — — 25,654 
Obligations of state and political subdivisions41,842 41,747 — — 41,747 
Accrued interest receivable25,727 25,727 — 25,727 — 
Total financial instrument assets$4,567,523 $4,500,904 $320,507 $724,898 $3,455,499 
Financial instrument liabilities:     
Deposits     
Noninterest-bearing deposits$615,648 $615,648 $— $615,648 $— 
Interest-bearing deposits2,983,970 2,753,204 — 2,753,204 — 
Other short-term borrowings380,187 379,575 — 379,575 — 
Federal Home Loan Bank borrowings64,083 64,253 — 64,253 — 
Accrued interest payable3,250 3,250 — 3,250 — 
Total financial instrument liabilities$4,047,138 $3,815,930 $— $3,815,930 $— 
 Face Amount    
Financial instrument with off-balance sheet risk:     
Loan commitments$665,689 
Letters of credit11,052 
Total financial instrument liabilities with off-balance-sheet risk$676,741 

(1)Considered Level 1 under Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”).
(2)Considered Level 2 under ASC 820.
(3)Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
The carrying value and estimated fair values of the Company's financial instruments as of December 31, 2025 are as follows:
 December 31, 2025
 Carrying
Amount		Estimated Fair
Value		Readily
Available
Market
Prices (1)		Observable
Market
Prices (2)		Unobservable
Market
Prices (3)
 (Amounts In Thousands)
Financial instrument assets:
Cash and cash equivalents$42,114 $42,114 $42,114 $— $— 
Investment securities955,584 955,584 255,527 700,057 — 
Loans held for sale8,047 8,047 — 8,047 — 
Loans     
Agricultural118,506 118,737 — — 118,737 
Commercial and financial283,728 284,244 — — 284,244 
Real estate:     
Construction, 1 to 4 family residential89,190 89,558 — — 89,558 
Construction, land development and commercial245,127 246,410 — — 246,410 
Mortgage, farmland274,312 268,568 — — 268,568 
Mortgage, 1 to 4 family first liens1,241,209 1,193,847 — — 1,193,847 
Mortgage, 1 to 4 family junior liens137,678 136,911 — — 136,911 
Mortgage, multi-family491,937 477,170 — — 477,170 
Mortgage, commercial555,322 549,177 — — 549,177 
Loans to individuals27,937 27,613 — — 27,613 
Obligations of state and political subdivisions41,873 41,393 — — 41,393 
Accrued interest receivable23,404 23,404 — 23,404 — 
Total financial instrument assets$4,535,968 $4,462,777 $297,641 $731,508 $3,433,628 
Financial instrument liabilities:     
Deposits     
Noninterest-bearing deposits$596,230 $596,230 $— $596,230 $— 
Interest-bearing deposits2,771,605 2,563,767 — 2,563,767 — 
Other short-term borrowings586,882 585,948 — 585,948 — 
Federal Home Loan Bank borrowings64,333 64,754 — 64,754 — 
Accrued interest payable3,453 3,453 — 3,453 — 
Total financial instrument liabilities$4,022,503 $3,814,152 $— $3,814,152 $— 
 Face Amount    
Financial instrument with off-balance sheet risk:     
Loan commitments$675,284 
Letters of credit11,152 
Total financial instrument liabilities with off-balance-sheet risk$686,436 

(1)Considered Level 1 under Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”).
(2)Considered Level 2 under ASC 820.
(3)Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
Fair value of financial instruments:  FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) provides a single definition for fair value, a framework for measuring fair value and expanded disclosures concerning fair value.  Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company determines the fair market value of its financial instruments based on the fair value hierarchy established in ASC 820.  There are three levels of inputs that may be used to measure fair value as follows:
Level 1Quoted prices in active markets for identical assets or liabilities.
Level 2Observable inputs other than quoted prices included within Level 1.  Observable inputs include the quoted prices for similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability.
Level 3Unobservable inputs supported by little or no market activity for financial instruments.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.  The Company is required to use observable inputs, to the extent available, in the fair value estimation process unless that data results from forced liquidations or distressed sales. 

The following is a description of valuation methodologies used for assets and liabilities recorded at fair value.

Investment securities available for sale: Investment securities available for sale are recorded at fair value on a recurring basis.  Fair value measurement is based upon quoted prices, if available.  If a quoted price is not available, the fair value is obtained from benchmarking the security against similar securities. U.S. Treasury securities are considered Level 1 with the remaining securities considered Level 2.

The pricing for investment securities is obtained from an independent source.  There are no Level 3 investment securities owned by the Company.  The Company obtains an understanding of the independent source’s valuation methodologies used to determine fair value by level of security. The Company validates assigned fair values on a sample basis using an additional third-party provider pricing service to determine if the fair value measurement is reasonable. Due to the nature of our investment portfolio, we do not expect significant and unusual fluctuations as fair value changes primarily relate to interest rate changes.   No unusual fluctuations were identified during the three months ended March 31, 2026. If a fluctuation requiring investigation was identified, the Company would research the change with the independent source or other available information.

Individually analyzed loans under ASC 326 CECL: See Note 1 for further discussion of individually analyzed loans under CECL.

A loan is considered to be non-performing when it is probable that all of the principal and interest due may not be collected according to its contractual terms. Generally, when a loan is considered non-performing, the amount of reserve is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material loans deemed non-performing using the fair value of the collateral for collateral dependent loans or based on the present value of the estimated future cash flows of interest and principal discounted at the loans effective interest rate or the fair value of the loan if determinable. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. All appraised values are adjusted for market-related trends based on the Company's experience in sales and other appraisals of similar property types as well as estimated selling costs. These loans are considered Level 3 as the instruments used to determine fair market value require significant management judgment and estimation.
Foreclosed assets: The Company does not record foreclosed assets at fair value on a recurring basis. Foreclosed assets consist mainly of other real estate owned but may include other types of assets repossessed by the Company. Foreclosed assets are adjusted to the lower of carrying value or fair value less the cost of disposal. Fair value is generally based upon independent market prices or appraised values of the collateral and may include a marketability discount as deemed necessary by management based on its experience with similar types of real estate. The value of foreclosed assets is evaluated periodically as a nonrecurring fair value adjustment.  Foreclosed assets are classified as Level 3.

Off-balance sheet instruments: Fair values for outstanding letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of the outstanding letters of credit and unfunded loan commitments are not significant.

Interest rate swap agreements: The fair value is estimated using forward-looking interest rate curves and is calculated using discounted cash flows that are observable or that can be corroborated by observable market data (Level 2).

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The table below represents the balances of assets and liabilities measured at fair value on a recurring basis:
 March 31, 2026
AssetsReadily
Available
Market
Prices (1)		Observable
Market Prices (2)		Company
Determined
Market
Prices (3)		Total at Fair
Value
Securities available for sale(Amounts In Thousands)
U.S. Treasury$264,428 $— $— $264,428 
State and political subdivisions— 372,028 — 372,028 
Mortgage-backed securities and collateralized mortgage obligations— 317,336 — 317,336 
U.S. Government Agency and GSE securities— 4,592 — 4,592 
Total$264,428 $693,956 $— $958,384 
 December 31, 2025
AssetsReadily
Available
Market
Prices (1)		Observable
Market Prices (2)		Company
Determined
Market
Prices (3)		Total at Fair
Value
Securities available for sale(Amounts In Thousands)
U.S. Treasury$255,527 $— $— $255,527 
State and political subdivisions— 382,645 — 382,645 
Mortgage-backed securities and collateralized mortgage obligations— 312,754 — 312,754 
U.S. Government Agency and GSE securities— 4,658 — 4,658 
Total$255,527 $700,057 $— $955,584 

(1)Considered Level 1 under ASC 820.
(2)Considered Level 2 under ASC 820.
(3)Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.

There were no transfers between Levels 1, 2 or 3 during the three months ended March 31, 2026 and the year ended December 31, 2025.
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The Company is required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP.  These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets.  The valuation methodologies used to measure these fair value adjustments are described above. For assets measured at fair value on a nonrecurring basis that were still held on the balance sheet at March 31, 2026 and December 31, 2025, the following tables provide the level of valuation assumptions used to determine the adjustment and the carrying value of the related individual assets at year end.
 March 31, 2026
 Readily
Available
Market
Prices (1)		Observable
Market
Prices (2)		Company
Determined
Market
Prices (3)		Total at
Fair
Value
 (Amounts in Thousands)
Loans (4)
Agricultural$— $— $— $— 
Commercial and financial— — 138 138 
Real Estate:
Construction, 1 to 4 family residential— — — — 
Construction, land development and commercial— — 51 51 
Mortgage, farmland— — 596 596 
Mortgage, 1 to 4 family first liens— — 1,418 1,418 
Mortgage, 1 to 4 family junior liens— — — — 
Mortgage, multi-family— — — — 
Mortgage, commercial— — 419 419 
Loans to individuals— — — — 
Foreclosed assets (5)— — — — 
Total$— $— $2,622 $2,622 

(1)Considered Level 1 under ASC 820.
(2)Considered Level 2 under ASC 820.
(3)Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
(4)Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully charged-off is zero.
(5)Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets.
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (continued)
 December 31, 2025
 Readily
Available
Market
Prices (1)		Observable
Market
Prices (2)		Company
Determined
Market
Prices (3)		Total at Fair
Value
 (Amounts in Thousands)
Loans (4)
Agricultural$— $— $— $— 
Commercial and financial— — 932 932 
Real Estate:
Construction, 1 to 4 family residential— — — — 
Construction, land development and commercial— — 194 194 
Mortgage, farmland— — — — 
Mortgage, 1 to 4 family first liens— — 2,020 2,020 
Mortgage, 1 to 4 family junior liens— — 9 9 
Mortgage, multi-family— — 136 136 
Mortgage, commercial— — 444 444 
Loans to individuals— — — — 
Foreclosed assets (5)— — — — 
Total$— $— $3,735 $3,735 

(1)Considered Level 1 under ASC 820.
(2)Considered Level 2 under ASC 820.
(3)Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
(4)Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully charged-off is zero.
(5)Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets.

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

March 31, 2026
Fair ValueValuation Technique(s)Unobservable Input(s)Range
(Weighted Average)
(Amounts in Thousands)
Individually assessed loans2,622Appraised ValueAppraisal Discount
25.00%
December 31, 2025
Fair ValueValuation Technique(s)Unobservable Input(s)Range
(Weighted Average)
(Amounts in Thousands)
Individually assessed loans3,735Appraised ValueAppraisal Discount
25.00%