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FAIR VALUES OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS

The Corporation uses fair value measurements to adjust certain assets and liabilities and to provide fair value disclosures. ASC 820 defines fair value, establishes a framework for measuring it and expands related disclosure requirements.  It applies only when other accounting guidance requires or permits fair value measurement and does not expand its use to new circumstances.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. The Corporation values its assets and liabilities in the principal market where it sells the asset or transfers the liability with the greatest volume and level of activity. If no principal market exists, valuation is based on the most advantageous market — one that maximizes the asset’s sale price or minimizes the liability’s transfer cost.

Valuation inputs reflect assumptions that market participants would use to price an asset or liability. These inputs are categorized as either observable or unobservable. Observable inputs are based on market data from independent sources and reflect assumptions market participants would use. Unobservable inputs are derived from the Corporation’s own estimates, reflecting assumptions market participants might use when market data is not available. These rely on the best available information at the measurement date.

Inputs are ranked within a three-level fair value hierarchy. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are based on one or more of the following: quoted prices for similar assets, observable inputs such as interest rates or yield curves, or inputs corroborated by market data. Level 3 inputs are unobservable and reflect minimal market activity.

An input is considered significant if it contributes 10 percent or more to the total fair value of the asset or liability.

RECURRING AND NONRECURRING FAIR VALUE MEASUREMENTS

Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly — such as daily, weekly, monthly, or quarterly. Recurring valuation occurs at least on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement is not performed regularly and does not necessarily result in a change to the recorded balance sheet amount. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment and recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the
accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. As of June 30, 2026, and December 31, 2025 the Corporation did not hold any Level 1 securities. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. Government-sponsored agency and mortgage-backed securities, state and municipal securities, foreign investment and corporate obligations. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal securities and corporate obligations. Fair values for Level 3 securities were determined using discounted cash flow models that incorporated market estimates of interest rates and volatility in markets that have not been active.

Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3.

Loans Held for Sale

Loans held for sale are carried at the lower of amortized cost basis or fair value, determined at the individual loan level, and are intended for sale in the secondary market. Certain loans classified as held for sale continue to be carried at amortized cost as their cost basis does not exceed fair value and, accordingly, are not included in the fair value measurement disclosures below.

Loans held for sale that are written down to fair value, including loans reclassified from held for investment when management commits to a plan to sell, are measured at fair value on a recurring basis and are included within Level 2 of the fair value hierarchy. Fair value is determined using observable market‑based inputs, including pricing obtained from third‑party investors for similar residential mortgage loans, adjusted for loan‑specific characteristics such as coupon, term, credit quality, and expected execution costs. Quoted prices for identical instruments in active markets are generally not available for these loans.
Loans held for sale that are carried at amortized cost are not subject to recurring fair value measurement and are therefore excluded from the tables presenting assets and liabilities measured at fair value.

Derivative Financial Agreements

See information regarding the Corporation’s derivative financial agreements in NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements.

The following tables present the fair value measurements of assets and liabilities measured at fair value in the accompanying balance sheets on a recurring basis, along with their classification within the fair value hierarchy as of June 30, 2026, and December 31, 2025.

Fair Value Measurements Using:
June 30, 2026Fair ValueQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities$71,739 $— $71,739 $— 
State and municipal893,132 — 890,711 2,421 
U.S. Government-sponsored mortgage-backed securities410,219 — 410,219 — 
Foreign investment1,500 — 1,500 — 
Corporate obligations7,802 — 7,771 31 
Derivative assets49,556 — 49,556 — 
Derivative liabilities48,756 — 48,756 — 

Fair Value Measurements Using:
December 31, 2025Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities$76,099 $— $76,099 $— 
State and municipal902,294 — 900,339 1,955 
U.S. Government-sponsored mortgage-backed securities419,510 — 419,510 — 
Foreign investment1,500 — 1,500 — 
Corporate obligations7,699 — 7,668 31 
Derivative assets48,468 — 48,468 — 
Derivative liabilities47,980 — 47,980 — 

Level 3 Reconciliation

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying
balance sheets using significant unobservable Level 3 inputs for the three and six months ended June 30, 2026 and 2025.

Available for Sale Securities
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Balance, beginning of period$2,419 $2,182 $1,986 $2,416 
Assets acquired in a business combination— — 660 — 
Included in other comprehensive income (loss)35 16 44 9 
Principal payments(2)(2)(238)(229)
Balance, end of period$2,452 $2,196 $2,452 $2,196 

There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or
liabilities held at June 30, 2026 or December 31, 2025.

Transfers Between Levels

There were no transfers in or out of Level 3 during the three and six months ended June 30, 2026 and 2025.
Nonrecurring Measurements

Following is a description of valuation methodologies used for instruments measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy at June 30, 2026, and December 31, 2025.
Fair Value Measurements Using
June 30, 2026Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant Unobservable
Inputs
(Level 3)
Collateral dependent loans$55,408 $— $— $55,408 


Fair Value Measurements Using
December 31, 2025Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
 Inputs
(Level 2)		Significant Unobservable
Inputs
(Level 3)
Collateral dependent loans$65,302 $— $— $65,302 

Collateral Dependent Loans

Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at June 30, 2026 and December 31, 2025.

June 30, 2026Fair ValueValuation TechniqueUnobservable InputsRange (Weighted-Average)
State and municipal securities$2,421 Discounted cash flowMaturity/Call date
1 month to 5 years
US Muni BQ curve
BBB
Discount rate
3.2% - 5.1%
Weighted-average coupon
3.8%
Corporate obligations $31 Discounted cash flowRisk free rate
3 month CME Term SOFR plus 26bps
plus premium for illiquidity (basis points)
plus 200bps
Weighted-average coupon
0%
Collateral dependent loans$55,408 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability
0% - 90%
Weighted-average discount by loan balance
24.2%
December 31, 2025Fair ValueValuation TechniqueUnobservable InputsRange (Weighted-Average)
State and municipal securities$1,955 Discounted cash flowMaturity/Call date
1 month to 5 years
US Muni BQ curve
BBB
Discount rate
3.6% - 5.7%
Weighted-average coupon
3.6%
Corporate obligations and U.S. Government-sponsored mortgage-backed securities$31 Discounted cash flowRisk free rate
3 month CME Term
SOFR plus 26bps
plus premium for illiquidity (basis points)
plus 200bps
Weighted-average coupon
0%
Collateral dependent loans$65,302 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability
1% - 16%
Weighted-average discount by loan balance
1.5%

The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement.

State and Municipal Securities and Corporate Obligations

The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities and corporate obligations are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input.

Collateral Dependent Loans

The Corporation's loans that are deemed collateral dependent are valued using the fair value of the underlying collateral. Collateral values are generally based on current appraisals, broker price opinions, or internally developed valuations and may be adjusted to reflect management's assumptions regarding market conditions, disposition costs, and the estimated realizable value of the collateral.

Fair Value of Financial Instruments

The following tables present estimated fair values of the Corporation’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026 and December 31, 2025.

June 30, 2026
Quoted Prices in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant Unobservable
Inputs
Carrying Amount(Level 1)(Level 2)(Level 3)Total Fair Value
Assets:
Cash and due from banks$86,665 $86,665 $— $— $86,665 
Interest-bearing deposits529,432 529,432 — — 529,432 
Investment securities held to maturity, net of allowance for credit losses1,907,684 — 1,650,805 3,138 1,653,943 
Loans held for sale77,880 — 77,880 — 77,880 
Net loans15,289,122 — — 15,352,936 15,352,936 
Federal Home Loan Bank stock70,818 — 70,818 — 70,818 
Interest receivable101,927 — 101,927 — 101,927 
Liabilities:
Deposits$16,753,381 $14,614,077 $2,131,657 $— $16,745,734 
Borrowings:
Securities sold under repurchase agreements103,340 — 103,333 — 103,333 
Federal Home Loan Bank advances1,414,059 — 1,411,741 — 1,411,741 
Subordinated debentures and other borrowings86,350 — 79,438 — 79,438 
Interest payable17,491 — 17,491 — 17,491 
December 31, 2025
Quoted Prices in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant Unobservable
Inputs
Carrying Amount(Level 1)(Level 2)(Level 3)Total Fair Value
Assets:
Cash and due from banks$84,158 $84,158 $— $— $84,158 
Interest-bearing deposits196,300 196,300 — — 196,300 
Investment securities held to maturity, net of allowance for credit losses1,971,539 — 1,713,872 4,415 1,718,287 
Loans held for sale20,079 — 20,079 — 20,079 
Net loans13,596,110 — — 13,498,304 13,498,304 
Federal Home Loan Bank stock47,245 — 47,245 — 47,245 
Interest receivable93,374 — 93,374 — 93,374 
Liabilities:
Deposits$15,294,855 $13,252,258 $2,042,782 $— $15,295,040 
Borrowings:
Federal funds purchased40,000 — 40,000 — 40,000 
Securities sold under repurchase agreements103,755 — 103,747 — 103,747 
Federal Home Loan Bank advances798,549 — 803,396 — 803,396 
Subordinated debentures and other borrowings57,630 — 53,982 — 53,982 
Interest payable18,235 — 18,235 — 18,235