FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2026

Summary of Assets Measured at Fair Value on Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:


	Level 1		Level 2		Level 3		Total Fair Value Measurements
June 30, 2026
Financial Assets
Investment securities:
U.S. Treasury securities	$	14,206	$	—	$	—	$	14,206
U.S. Government Agencies	—		1,485		—		1,485

States and political subdivisions	—		204,128		—		204,128
GSE residential MBSs	—		231,363		—		231,363
GSE commercial MBSs	—		10,999		—		10,999
GSE residential CMOs	—		341,580		—		341,580

Non-agency CMOs	—		70,468		2,254		72,722


Asset-backed	—		67,763		3,762		71,525
Corporate debt	—		975		—		975
Other	298		—		—		298
Loans held for sale	—		3,639		—		3,639
Derivatives	—		9,872		68		9,940


Totals	$	14,504	$	942,272	$	6,084	$	962,860
Financial Liabilities
Derivatives	$	—	$	10,274	$	—	$	10,274


December 31, 2025
Financial Assets
Investment securities:
U.S. Treasury securities	$	14,211	$	—	$	—	$	14,211
U.S. Government Agencies	—		1,796		—		1,796

States and political subdivisions	—		196,482		5,666		202,148
GSE residential MBSs	—		234,103		—		234,103
GSE commercial MBSs	—		6,171		—		6,171
GSE residential CMOs	—		354,003		—		354,003
Non-agency CMOs	—		50,161		9,662		59,823



Asset-backed	—		78,250		—		78,250
Corporate debt	—		1,992		—		1,992
Other	243		—		—		243
Loans held for sale	—		6,090		—		6,090
Derivatives	—		14,638		38		14,676


Totals	$	14,454	$	943,686	$	15,366	$	973,506
Financial Liabilities
Derivatives	$	—	$	15,138	$	—	$	15,138

Summary of Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the periods ended June 30, 2026 and 2025:

Investment securities:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Balance, beginning of period	$	17,110	$	16,265	$	15,328	$	16,920


Unrealized gains (losses) included in OCI	1,294		(13)		1,112		(552)
Purchases	—		—		4,860		—
Net discount accretion	41		19		93		32
Principal payments and other	(2,161)		(131)		(3,868)		(260)


Transfers into level 3	—		—		7,182		—
Transfers out of level 3	(10,268)		—		(18,691)		—
Balance, end of period	$	6,016	$	16,140	$	6,016	$	16,140

Interest rate lock commitments on residential mortgages:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Balance, beginning of period	$	63	$	113	$	38	$	20

Total gains (losses) included in earnings	5		(58)		30		35


Balance, end of period	$	68	$	55	$	68	$	55

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis at June 30, 2026 and December 31, 2025:


	Level 1		Level 2		Level 3		Total Fair Value Measurements
June 30, 2026
Individually Evaluated Loans
Commercial real estate:
Owner occupied	$	—	$	—	$	782	$	782


Non-owner occupied residential	—		—		26		26
Acquisition and development:

Commercial and land development	—		—		79		79

Commercial and industrial	—		—		2,071		2,071
Residential mortgage:
First lien	—		—		1,039		1,039

Home equity - lines of credit	—		—		1		1

Total individually evaluated loans	$	—	$	—	$	3,998	$	3,998








December 31, 2025
Individually Evaluated Loans
Commercial real estate:
Owner occupied	$	—	$	—	$	1,664	$	1,664


Non-owner occupied residential	—		—		31		31
Acquisition and development:

Commercial and land development	—		—		832		832

Commercial and industrial	—		—		2,494		2,494
Residential mortgage:
First lien	—		—		834		834

Home equity - lines of credit	—		—		9		9

Total individually evaluated loans	$	—	$	—	$	5,864	$	5,864






Mortgage servicing rights	$	—	$	—	$	536	$	536

Summary of Additional Qualitative Information

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

Fair Value
Estimate

Valuation
Techniques

Unobservable Input (1)

Range

June 30, 2026

Individually evaluated loans

3,998

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10.00% - 84.00% discount

- Management adjustments for liquidation expenses

8.76% - 30.00% discount

December 31, 2025

Individually evaluated loans

5,864

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10.00% - 84.00% discount

- Management adjustments for liquidation expenses

8.28% - 65.04% discount

Mortgage servicing rights

536

Income approach - DCF

Weighted average CPR

6.86%

- Weighted average discount rate

9.02%

(1) Discount rates can vary due to factors such as costs that may be assumed by the Bank to liquidate the property in addition to adjustments to the appraised value of the collateral securing the loan. Adjustments may be applied to valuations deemed deficient to ensure the fair value is reasonable.

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at June 30, 2026 and December 31, 2025:


	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2026
Financial Assets
Cash and due from banks	$	58,319	$	58,319	$	58,319	$	—	$	—
Interest-bearing deposits with banks	86,522		86,522		86,522		—		—

Restricted investments in bank stock	27,429		n/a		n/a		n/a		n/a
Investment securities	949,281		949,281		14,504		928,761		6,016
Loans held for sale	3,639		3,639		—		3,639		—
Loans, net of allowance for credit losses	4,066,399		4,008,204		—		—		4,008,204

Derivatives	9,940		9,940		—		9,872		68
Accrued interest receivable	19,789		19,789		—		4,826		14,963

Financial Liabilities
Deposits	4,620,023		4,618,704		—		4,618,704		—

Securities sold under agreements to repurchase and federal funds purchased	7,594		7,594		—		7,594		—
FHLB advances and other borrowings	274,768		274,475		—		274,475		—
Subordinated notes and trust preferred debt	8,049		8,618		—		8,618		—

Derivatives	10,274		10,274		—		10,274		—
Accrued interest payable	2,489		2,489		—		2,489		—
Off-balance sheet instruments	—		—		—		—		—

December 31, 2025
Financial Assets
Cash and due from banks	$	42,083	$	42,083	$	42,083	$	—	$	—
Interest-bearing deposits with banks	107,691		107,691		107,691		—		—

Restricted investments in bank stock	26,717		n/a		n/a		n/a		n/a
Investment securities	952,740		952,740		14,454		922,958		15,328
Loans held for sale	6,090		6,090		—		6,090		—
Loans, net of allowance for loan losses	3,973,012		3,934,248		—		—		3,934,248

Derivatives	14,676		14,676		—		14,638		38
Accrued interest receivable	21,473		21,473		—		5,026		16,447

Financial Liabilities
Deposits	4,528,774		4,527,619		—		4,527,619		—

Securities sold under agreements to repurchase	24,542		24,542		—		24,542		—
FHLB advances and other borrowings	274,701		274,765		—		274,765		—
Subordinated notes and trust preferred debt	37,122		38,861		—		38,861		—

Derivatives	15,138		15,138		—		15,138		—
Accrued interest payable	3,497		3,497		—		3,497		—
Off-balance sheet instruments	—		—		—		—		—

- 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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