FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of carrying amount and estimated fair value of financial instruments


(dollars in thousands)					Fair Value Measurement Using
June 30, 2026	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from financial institutions	$	96,678	$	96,678	$	96,678	$	—	$	—
Interest-bearing deposits in other financial institutions	286,593		286,593		286,593		—		—
Investment securities	1,380,593		1,310,306		60,136		1,243,671		6,499
Loans held for sale	2,364		2,364		—		2,364		—
Loans	5,308,322		5,014,807		—		—		5,014,807
Mortgage servicing rights	8,364		11,467		—		—		11,467


Accrued interest receivable	23,419		23,419		616		4,747		18,056

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,917,502		1,917,502		1,917,502		—		—
Interest-bearing demand and savings and money market	3,784,405		3,784,405		3,784,405		—		—
Time	993,847		987,696		—		—		987,696

Long-term debt	76,547		75,351		—		—		75,351
Accrued interest payable	6,044		6,044		80		—		5,964


(dollars in thousands)							Fair Value Measurement Using
June 30, 2026	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,350,744	$	—	$	1,105	$	—	$	1,105	$	—
Standby letters of credit and financial guarantees written	2,835		—		43		—		43		—

Derivatives:

Forward sale commitments	1,714		(5)		(5)		—		(5)		—
Risk participation agreements	51,986		—		—		—		—		—
Back-to-back swap agreements:
Assets	63,772		2,878		2,878		—		2,878		—
Liabilities	(63,772)		(2,878)		(2,878)		—		(2,878)		—
Interest rate swap agreements	114,580		5,242		5,242		—		5,242		—


(dollars in thousands)					Fair Value Measurement Using
December 31, 2025	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from financial institutions	$	88,200	$	88,200	$	88,200	$	—	$	—
Interest-bearing deposits in other financial institutions	290,453		290,453		290,453		—		—
Investment securities	1,310,603		1,244,057		61,291		1,176,050		6,716
Loans held for sale	1,084		1,084		—		1,084		—
Loans	5,289,096		5,016,971		—		—		5,016,971
Mortgage servicing rights	8,672		11,301		—		—		11,301


Accrued interest receivable	23,559		23,559		651		4,075		18,833

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,891,198		1,891,198		1,891,198		—		—
Interest-bearing demand and savings and money market	3,734,629		3,734,629		3,734,629		—		—
Time	983,937		978,868		—		—		978,868

Long-term debt	76,547		73,579		—		—		73,579
Accrued interest payable	7,068		7,068		102		—		6,966


(dollars in thousands)							Fair Value Measurement Using
December 31, 2025	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,337,099	$	—	$	1,063	$	—	$	1,063	$	—
Standby letters of credit and financial guarantees written	2,624		—		39		—		39		—

Derivatives:

Forward sale commitments	1,095		(4)		(4)		—		(4)		—
Risk participation agreements	52,435		(3)		(3)		—		(3)		—
Back-to-back swap agreements:
Assets	60,660		3,045		3,045		—		3,045		—
Liabilities	(60,660)		(3,045)		(3,045)		—		(3,045)		—
Interest rate swap agreements	114,580		4,163		4,163		—		4,163		—

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following tables present the fair value of financial assets and liabilities measured on a recurring basis as of the dates presented:


(dollars in thousands)			Fair Value at Reporting Date Using
June 30, 2026	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
Debt securities:
States and political subdivisions	$	115,818	$	—	$	109,980	$	5,838
Corporate securities	9,976				9,976		—
U.S. Treasury and other government-sponsored entities and agencies	95,082		60,136		34,946		—
Collateralized loan obligations	103,504		—		103,504		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	429,954		—		429,954		—
Residential - Non-government agencies	14,464		—		13,803		661
Commercial - U.S. government-sponsored entities and agencies	66,580		—		66,580		—


Total available-for-sale investment securities	835,378		60,136		768,743		6,499



Derivatives:

Forward sale commitments	(5)		—		(5)		—

Back-to-back swap agreements:
Assets	2,878		—		2,878		—
Liabilities	(2,878)		—		(2,878)		—
Interest rate swap agreements	5,242		—		5,242		—
Total derivatives	5,237		—		5,237		—
Total	$	840,615	$	60,136	$	773,980	$	6,499


(dollars in thousands)			Fair Value at Reporting Date Using
December 31, 2025	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
Debt securities:
States and political subdivisions	$	117,041	$	—	$	110,993	$	6,048

U.S. Treasury and other government-sponsored entities and agencies	100,025		61,291		38,734		—
Collateralized loan obligations	40,827		—		40,827		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	407,053		—		407,053		—
Residential - Non-government agencies	15,363		—		14,695		668
Commercial - U.S. government-sponsored entities and agencies	67,903		—		67,903		—


Total available-for-sale investment securities	748,212		61,291		680,205		6,716



Derivatives:

Forward sale commitments	(4)		—		(4)		—
Risk participation agreements	(3)		—		(3)		—
Back-to-back swap agreements:							—
Assets	3,045		—		3,045		—
Liabilities	(3,045)		—		(3,045)		—
Interest rate swap agreements	4,163		—		4,163		—
Total derivatives	4,156		—		4,156		—
Total	$	752,368	$	61,291	$	684,361	$	6,716

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the periods presented:


	Available-For-Sale Debt Securities:
(dollars in thousands)	States and Political Subdivisions		Residential - Non-Government Agencies		Total
Balance at December 31, 2025	$	6,048	$	668	$	6,716
Principal payments received	(134)		(12)		(146)
Unrealized net (loss) gain included in other comprehensive income	(76)		5		(71)

Balance at June 30, 2026	$	5,838	$	661	$	6,499

Balance at December 31, 2024	$	6,165	$	682	$	6,847
Principal payments received	(129)		(12)		(141)
Unrealized net gain (loss) included in other comprehensive income	65		1		66

Balance at June 30, 2025	$	6,101	$	671	$	6,772

- 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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