Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Measurements |
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| Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis |
| | | | | | | | | | | | | | | June 30, 2026 | | | Level 1 | | Level 2 | | Level 3 | | Total | Assets: | | | | | | | | | | | | | Securities available-for-sale | | | | | | | | | | | | | U.S. Treasury | | $ | 144,387 | | $ | - | | $ | - | | $ | 144,387 | U.S. government agencies | | | - | | | 68,404 | | | - | | | 68,404 | U.S. government agencies mortgage-backed | | | - | | | 81,236 | | | - | | | 81,236 | States and political subdivisions | | | - | | | 191,000 | | | 6,945 | | | 197,945 | Collateralized mortgage obligations | | | - | | | 343,061 | | | - | | | 343,061 | Asset-backed securities | | | - | | | 34,187 | | | 4,938 | | | 39,125 | Collateralized loan obligations | | | - | | | 165,856 | | | - | | | 165,856 | Equity securities | | | - | | | 746 | | | - | | | 746 | Loans held-for-sale | | | - | | | 2,349 | | | - | | | 2,349 | Mortgage servicing rights | | | - | | | - | | | 9,825 | | | 9,825 | Interest rate derivatives 1 | | | - | | | 3,856 | | | - | | | 3,856 | Total | | $ | 144,387 | | $ | 890,695 | | $ | 21,708 | | $ | 1,056,790 | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swap agreements, including risk participation agreements | | $ | - | | $ | 475 | | $ | - | | $ | 475 | Mortgage banking derivatives | | | - | | | 12 | | | - | | | 12 | Total | | $ | - | | $ | 487 | | $ | - | | $ | 487 | | | | | | | | | | | | | |
1 Interest rate derivatives include interest rate swaps, a rate cap and risk participation agreements. | | | | | | | | | | | | | | | December 31, 2025 | | | Level 1 | | Level 2 | | Level 3 | | Total | Assets: | | | | | | | | | | | | | Securities available-for-sale | | | | | | | | | | | | | U.S. Treasury | | $ | 165,860 | | $ | - | | $ | - | | $ | 165,860 | U.S. government agencies | | | - | | | 29,176 | | | - | | | 29,176 | U.S. government agencies mortgage-backed | | | - | | | 88,780 | | | - | | | 88,780 | States and political subdivisions | | | - | | | 199,428 | | | 6,947 | | | 206,375 | Collateralized mortgage obligations | | | - | | | 359,305 | | | - | | | 359,305 | Asset-backed securities | | | - | | | 40,966 | | | 4,850 | | | 45,816 | Collateralized loan obligations | | | - | | | 194,464 | | | - | | | 194,464 | Equity securities | | | - | | | 747 | | | - | | | 747 | Loans held-for-sale | | | - | | | 3,645 | | | - | | | 3,645 | Mortgage servicing rights | | | - | | | - | | | 9,459 | | | 9,459 | Interest rate derivatives 1 | | | - | | | 4,321 | | | - | | | 4,321 | Mortgage banking derivatives | | | - | | | 31 | | | - | | | 31 | Total | | $ | 165,860 | | $ | 920,863 | | $ | 21,256 | | $ | 1,107,979 | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swap agreements, including risk participation agreements | | $ | - | | $ | 1,157 | | $ | - | | $ | 1,157 | Total | | $ | - | | $ | 1,157 | | $ | - | | $ | 1,157 |
1 Interest rate derivatives include interest rate swaps, a rate cap and risk participation agreements.
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| Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis |
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | Securities available-for-sale | | | | | | | | States and | | Mortgage | | | Asset-backed | | Political | | Servicing | | | Securities | | Subdivisions | | Rights | Beginning balance January 1, 2026 | | $ | 4,850 | | $ | 6,947 | | $ | 9,459 | Transfers out of Level 3 | | | - | | | - | | | - | Total gains or losses | | | | | | | | | | Included in earnings | | | - | | | - | | | 52 | Included in other comprehensive income | | | (10) | | | 5 | | | - | Purchases, issuances, sales, and settlements | | | | | | | | | | Purchases | | | 474 | | | - | | | - | Issuances | | | - | | | - | | | 670 | Settlements | | | (376) | | | (7) | | | (356) | Ending balance June 30, 2026 | | $ | 4,938 | | $ | 6,945 | | $ | 9,825 | | | | | | | | | | |
| | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | Securities available-for-sale | | | | | | | | | States and | | Mortgage | | | | Asset-backed | | Political | | Servicing | | | | Securities | | Subdivisions | | Rights | | Beginning balance January 1, 2025 | | $ | 3,254 | | $ | 11,896 | | $ | 10,374 | | Transfers out of Level 3 | | | - | | | - | | | - | | Total gains or losses | | | | | | | | | | | Included in earnings | | | - | | | - | | | (883) | | Included in other comprehensive income | | | (11) | | | (705) | | | - | | Purchases, issuances, sales, and settlements | | | | | | | | | | | Purchases | | | 461 | | | - | | | - | | Issuances | | | - | | | - | | | 407 | | Settlements | | | (269) | | | (85) | | | (218) | | Ending balance June 30, 2025 | | $ | 3,435 | | $ | 11,106 | | $ | 9,680 | |
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| Schedule of quantitative information about level 3 fair value measurements |
The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as of June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | Weighted | Measured at fair value | | | | | | | Significant Unobservable | | | | Average | on a recurring basis: | | Fair Value | | Valuation Methodology | | Inputs | | Range of Input | | of Inputs | | | | | | | | | | | | | | States and political subdivisions | | $ | 6,945 | | Discounted Cash Flow | | Discount Rate | | 3.6 - 3.6% | | 3.6 | % | | | | | | | | Liquidity Premium | | 0.5 - 0.5% | | 0.5 | % | | | | | | | | | | | | | | Asset-backed securities | | $ | 4,938 | | Discounted Cash Flow | | Discount Rate | | 5.3 - 5.3% | | 5.3 | % | | | | | | | | | | | | | | Mortgage servicing rights | | $ | 9,825 | | Discounted Cash Flow | | Discount Rate | | 9.0 - 9.0% | | 9.0 | % | | | | | | | | Prepayment Speed | | 4.4 - 31.2% | | 7.9 | % | | | | | | | | | | | | | |
The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | Weighted | Measured at fair value | | | | | | | Significant Unobservable | | | | Average | on a recurring basis: | | Fair Value | | Valuation Methodology | | Inputs | | Range of Input | | of Inputs | | | | | | | | | | | | | | States and political subdivisions | | $ | 6,947 | | Discounted Cash Flow | | Discount Rate | | 3.5 - 3.6% | | 3.5 | % | | | | | | | | Liquidity Premium | | 0.5 - 0.5% | | 0.5 | % | | | | | | | | | | | | | | Asset-backed securities | | $ | 4,850 | | Discounted Cash Flow | | Discount Rate | | 4.9 - 4.9% | | 4.9 | % | | | | | | | | | | | | | | Mortgage servicing rights | | $ | 9,459 | | Discounted Cash Flow | | Discount Rate | | 9.0 - 9.0% | | 9.0 | % | | | | | | | | Prepayment Speed | | 0.0 - 33.2% | | 8.2 | % |
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| Schedule of assets measured at fair value on a nonrecurring basis |
| | | | | | | | | | | | | | | June 30, 2026 | | | Level 1 | | Level 2 | | Level 3 | | Total | Individually evaluated loans1 | | $ | - | | $ | - | | $ | 32,239 | | $ | 32,239 | Other real estate owned, net2 | | | - | | | - | | | 622 | | | 622 | Total | | $ | - | | $ | - | | $ | 32,861 | | $ | 32,861 |
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral or another form of third-party valuation for collateral-dependent loans, which had a carrying amount of $43.5 million and a valuation allowance of $11.3 million, resulting in an increase of specific allocations within the allowance for credit losses on loans of $4.8 million for the six months ended June 30, 2026. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $622,000 at June 30, 2026, which is made up of the outstanding balance of $632,000, net of a valuation allowance of $10,000. | | | | | | | | | | | | | | | December 31, 2025 | | | Level 1 | | Level 2 | | Level 3 | | Total | Individually evaluated loans1 | | $ | - | | $ | - | | $ | 34,430 | | $ | 34,430 | Other real estate owned, net2 | | | - | | | - | | | 1,427 | | | 1,427 | Total | | $ | - | | $ | - | | $ | 35,857 | | $ | 35,857 |
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of Collateral for collateral-dependent loans and to a lesser extent the discounted cash flow, which had a carrying amount of $40.9 million and a valuation allowance of $6.4 million, resulting in a decrease of specific allocations within the allowance for credit losses on loans of $747,000 for the year December 31, 2025. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $1.4 million at December 31, 2025, which is made up of the outstanding balance of $2.1 million, net of a valuation allowance of $632,000.
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