FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENTS

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


		June 30, 2026
		Level 1			Level 2			Level 3			Total
(in thousands)		Inputs			Inputs			Inputs			Fair Value
Available-for-sale debt securities:
Obligations of US Government-sponsored enterprises		$	—		$	758		$	—		$	758
Mortgage-backed securities:
US Government-sponsored enterprises			—			257,500			—			257,500
US Government agency			—			157,417			—			157,417
Private label			—			9,564			—			9,564
Obligations of states and political subdivisions thereof			—			105,321			—			105,321
Corporate bonds			—			69,883			1,329			71,212
Loans held for sale			—			10,203			—			10,203
Derivative assets			—			12,728			282			13,010
Derivative liabilities			—			(10,091)			(34)			(10,125)


		December 31, 2025
		Level 1			Level 2			Level 3			Total
(in thousands)		Inputs			Inputs			Inputs			Fair Value
Available-for-sale debt securities:
Obligations of US Government-sponsored enterprises		$	—		$	1,102		$	—		$	1,102
Mortgage-backed securities:
US Government-sponsored enterprises			—			249,542			—			249,542
US Government agency			—			153,900			—			153,900
Private label			—			10,999			—			10,999
Obligations of states and political subdivisions thereof			—			104,539			—			104,539
Corporate bonds			—			75,139			2,203			77,342
Loans held for sale			—			5,283			—			5,283
Derivative assets			—			8,708			98			8,806
Derivative liabilities			—			(6,670)			(14)			(6,684)

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, 2026
Balance at beginning of period		$	148		$	28		$	1,329
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			134			(62)			—
Balance at end of period		$	282		$	(34)		$	1,329

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

Six Months Ended June 30, 2026
Balance at beginning of period		$	98		$	(14)		$	2,203
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			184			(20)			(874)
Balance at end of period		$	282		$	(34)		$	1,329

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

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, 2026
Balance at beginning of period		$	148		$	28		$	1,329
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			134			(62)			—
Balance at end of period		$	282		$	(34)		$	1,329

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

Six Months Ended June 30, 2026
Balance at beginning of period		$	98		$	(14)		$	2,203
Transfer into level 3 at the end of the period			—			—			—
Realized gain (loss) recognized in non-interest income			184			(20)			(874)
Balance at end of period		$	282		$	(34)		$	1,329

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

Schedule of Quantitative Information, Valuation, Recurring


		Fair Value							Significant
		June 30,			Valuation		Unobservable		Unobservable
(in thousands, except ratios)		2026			Techniques		Inputs		Input Value
Assets (Liabilities)
Interest Rate Lock Commitment		$	282		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			(34)		Quoted prices for similar loans in active markets		Freddie Mac pricing system			$97.8 to $101.9

Corporate bond			1,329		Discounted Cash Flows		Discount Rate			7.39	%
							Cash Flows			$0 to $1,329
							Loss Severity			83	%
Total		$	1,577

		Fair Value							Significant
		December 31,			Valuation		Unobservable		Unobservable
(in thousands, except ratios)		2025			Techniques		Inputs		Input Value
Assets (Liabilities)
Interest Rate Lock Commitment		$	98		Pull-through Rate Analysis		Closing Ratio			96	%
					Pricing Model		Origination Costs, per loan		$	1.7
					Discount Cash Flows		Mortgage Servicing Asset			1.0	%

Forward Commitments			(14)		Quoted prices for similar loans in active markets		Freddie Mac pricing system			$100.7 to $103.4

Corporate bond			2,203		Discounted Cash Flows		Discount Rate			7.39	%
							Cash Flows			$0 to $2,203
							Loss Severity			65	%
Total		$	2,287

Summary of Applicable Non-Recurring Fair Value Measurements


								Fair Value
								Measurement Date as of
		June 30, 2026			Dec 31, 2025			June 30, 2026
		Level 3			Level 3			Level 3
(in thousands)		Inputs			Inputs			Inputs
Assets
Individually evaluated loans		$	4,145		$	5,091		June 2026
Capitalized servicing rights			7,683			6,832		June 2026
Other real estate owned			8,170			—		June 2026
Premises held for sale			285			—		June 2026
Total		$	20,283		$	11,923

Schedule of Quantitative Information, Valuation, Non-recurring


(in thousands, except ratios)		Fair Value June 30, 2026			Valuation Techniques		Unobservable Inputs		Range (Weighted Average)^(a)
Assets
Individually evaluated loans
Commercial Real Estate Owner Occupied		$	360		Fair value of collateral-appraised value		Loss severity			43% to 60%
							Appraised value			$250 to $975
Commercial Real Estate Non-Owner Occupied			1,956		Fair value of collateral-appraised value		Loss severity			20% to 40%
							Appraised value			$1,700 to $1,775
Commercial and Industrial			1,665		Fair value of collateral-appraised value		Loss severity			15% to 80%
							Appraised value			$212 to $1,057
Residential Real Estate			164		Fair value of collateral-appraised value		Loss severity			25%
							Appraised value			$240

Capitalized servicing rights			7,683		Discounted cash flow		Constant prepayment rate			7.08%
							Discount rate			9.62%

Other real estate owned			8,170		Fair value of collateral less selling costs		Appraised value			8,600

Premises held for sale			285		Fair value of asset less selling costs		Appraised value			$299
							Selling Costs			5%
Total		$	20,283

(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, 2025			Valuation Techniques		Unobservable Inputs		Range (Weighted Average)^(a)
Assets
Individually evaluated loans
Commercial Real Estate Owner Occupied		$	378		Fair value of collateral-appraised value		Loss severity			33% to 60%
							Appraised value			$250 to $975
Commercial Real Estate Non-Owner Occupied			1,985		Fair value of collateral-appraised value		Loss severity			20% to 40%
							Appraised value			$1,700 to $1,775
Commercial and Industrial			2,410		Fair value of collateral-appraised value		Loss severity			5% to 80%
							Appraised value			$212 to $1,112
Residential Real Estate			318		Fair value of collateral-appraised value		Loss severity			20%
							Appraised value			$240

Capitalized servicing rights			6,832		Discounted cash flow		Constant prepayment rate			8.97%
							Discount rate			9.62%
Total		$	11,923

(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, 2026
		Carrying			Fair
(in thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	104,388		$	104,388		$	104,388		$	—		$	—
Available-for-sale debt securities			601,772			601,772			—			600,443			1,329
FHLB stock			13,423			n/a			n/a			n/a			n/a
Loans held for sale			10,203			10,203			—			10,203			—
Net loans			3,581,949			3,525,617			—			—			3,525,617
Accrued interest receivable			16,050			16,050			25			3,603			12,422
Derivative assets			13,010			13,010			—			12,728			282

Financial Liabilities
Non-maturity deposits		$	2,936,255		$	2,742,147		$	—		$	2,742,147		$	—
Time deposits			917,694			913,713			—			913,713			—
Securities sold under agreements to repurchase			3,520			3,520			—			3,520			—
FHLB advances			224,021			224,015			—			224,015			—
Subordinated borrowings			53,620			49,872			—			49,872			—
Accrued interest payable			3,905			3,905			—			3,905			—
Derivative liabilities			10,125			10,125			—			10,091			34


		December 31, 2025
		Carrying			Fair
(in thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	80,837		$	80,837		$	80,837		$	—		$	—
Available-for-sale debt securities			597,424			597,424			—			595,221			2,203
FHLB stock			11,308			n/a			n/a			n/a			n/a
Loans held for sale			5,283			5,283			—			5,283			—
Net loans			3,571,807			3,505,278			—			—			3,505,278
Accrued interest receivable			15,047			15,047			13			3,496			11,538
Derivative assets			8,806			8,806			—			8,708			98

Financial Liabilities
Non-maturity deposits		$	2,908,688		$	2,740,925		$	—		$	2,740,925		$	—
Time deposits			912,594			910,213			—			910,213			—
Securities sold under agreements to repurchase			4,801			4,801			—			4,801			—
FHLB advances			212,016			211,988			—			211,756			232
Subordinated borrowings			52,825			49,746			—			49,746			—
Accrued interest payable			6,256			6,256			—			6,256			—
Derivative liabilities			6,684			6,684			—			6,670			14

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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