| Assets Measured at Fair Value on Recurring Basis |
The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2026 and December 31, 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using: |
|
|
|
Fair Value |
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
|
|
Significant
Other
Observable
Inputs (Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies |
|
$ |
142,367 |
|
|
$ |
— |
|
|
$ |
142,367 |
|
|
$ |
— |
|
Obligations of states and political subdivisions |
|
|
287,012 |
|
|
|
— |
|
|
|
287,012 |
|
|
|
— |
|
Mortgage-backed securities |
|
|
822,821 |
|
|
|
— |
|
|
|
812,843 |
|
|
|
9,978 |
|
Corporate bonded debt |
|
|
27,908 |
|
|
|
— |
|
|
|
25,149 |
|
|
|
2,759 |
|
Total available-for-sale securities |
|
|
1,280,108 |
|
|
|
— |
|
|
|
1,267,371 |
|
|
|
12,737 |
|
Equity securities |
|
|
3,620 |
|
|
|
3,620 |
|
|
|
— |
|
|
|
— |
|
Loans held for sale |
|
|
6,724 |
|
|
|
— |
|
|
|
6,724 |
|
|
|
— |
|
Derivative assets: interest rate swaps |
|
|
1,806 |
|
|
|
— |
|
|
|
1,806 |
|
|
|
— |
|
Total assets |
|
$ |
1,292,258 |
|
|
$ |
3,620 |
|
|
$ |
1,275,901 |
|
|
$ |
12,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities: interest rate swaps |
|
$ |
1,480 |
|
|
$ |
— |
|
|
$ |
1,480 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies |
|
$ |
144,080 |
|
|
$ |
— |
|
|
$ |
144,080 |
|
|
$ |
— |
|
Obligations of states and political subdivisions |
|
|
280,633 |
|
|
|
— |
|
|
|
280,633 |
|
|
|
— |
|
Mortgage-backed securities |
|
|
624,666 |
|
|
|
— |
|
|
|
624,666 |
|
|
|
— |
|
Corporate bonded debt |
|
|
27,504 |
|
|
|
— |
|
|
|
24,745 |
|
|
|
2,759 |
|
Total available-for-sale securities |
|
|
1,076,883 |
|
|
|
— |
|
|
|
1,074,124 |
|
|
|
2,759 |
|
Equity securities |
|
|
4,588 |
|
|
|
4,588 |
|
|
|
— |
|
|
|
— |
|
Loans held for sale |
|
|
5,203 |
|
|
|
— |
|
|
|
5,203 |
|
|
|
— |
|
Derivative assets: interest rate swaps |
|
|
1,728 |
|
|
|
— |
|
|
|
1,728 |
|
|
|
— |
|
Total assets |
|
$ |
1,088,402 |
|
|
$ |
4,588 |
|
|
$ |
1,081,055 |
|
|
$ |
2,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities: interest rate swaps |
|
$ |
1,247 |
|
|
$ |
— |
|
|
$ |
1,247 |
|
|
$ |
— |
|
|
| Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs |
The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the years ended three and six months ended June 30, 2026 and 2025 is summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Beginning balance |
|
$ |
10,234 |
|
|
$ |
5,759 |
|
|
$ |
2,759 |
|
|
$ |
5,759 |
|
Transfers out of Level 3 |
|
|
(7,475 |
) |
|
|
— |
|
|
|
(7,475 |
) |
|
|
— |
|
Purchases, issuances, sales and settlements: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
|
9,978 |
|
|
|
7,029 |
|
|
|
17,453 |
|
|
|
7,029 |
|
Maturities |
|
|
— |
|
|
|
(3,000 |
) |
|
|
— |
|
|
|
(3,000 |
) |
Ending balance |
|
$ |
12,737 |
|
|
$ |
9,788 |
|
|
$ |
12,737 |
|
|
$ |
9,788 |
|
|
| Summary of Estimated Fair Values of Company Financial Instruments |
The following tables present estimated fair values of the Company’s financial instruments at June 30, 2026 and December 31, 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Amount |
|
|
Fair
Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
303,777 |
|
|
$ |
303,777 |
|
|
$ |
303,777 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal funds sold |
|
|
76 |
|
|
|
76 |
|
|
|
76 |
|
|
|
— |
|
|
|
— |
|
Certificates of deposit |
|
|
4,570 |
|
|
|
4,570 |
|
|
|
— |
|
|
|
4,570 |
|
|
|
— |
|
Available-for-sale investment securities |
|
|
1,280,108 |
|
|
|
1,280,108 |
|
|
|
— |
|
|
|
1,267,371 |
|
|
|
12,737 |
|
Held-to-maturity investment securities |
|
|
2,265 |
|
|
|
2,265 |
|
|
|
2,265 |
|
|
|
— |
|
|
|
— |
|
Equity investment securities |
|
|
3,620 |
|
|
|
3,620 |
|
|
|
3,620 |
|
|
|
— |
|
|
|
— |
|
Loans held for sale |
|
|
6,724 |
|
|
|
6,724 |
|
|
|
— |
|
|
|
6,724 |
|
|
|
— |
|
Loans net of allowance for credit losses |
|
|
6,840,629 |
|
|
|
6,835,735 |
|
|
|
— |
|
|
|
— |
|
|
|
6,835,735 |
|
Interest receivable |
|
|
43,276 |
|
|
|
43,276 |
|
|
|
— |
|
|
|
43,276 |
|
|
|
— |
|
Federal Reserve Bank stock |
|
|
22,980 |
|
|
|
22,980 |
|
|
|
— |
|
|
|
22,980 |
|
|
|
— |
|
Federal Home Loan Bank stock |
|
|
9,729 |
|
|
|
9,729 |
|
|
|
— |
|
|
|
9,729 |
|
|
|
— |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
7,571,544 |
|
|
$ |
7,500,937 |
|
|
$ |
— |
|
|
$ |
6,007,774 |
|
|
$ |
1,493,163 |
|
Repurchase agreements with customers |
|
|
196,991 |
|
|
|
196,991 |
|
|
|
— |
|
|
|
196,991 |
|
|
|
— |
|
Other borrowings |
|
|
209,567 |
|
|
|
207,997 |
|
|
|
— |
|
|
|
207,997 |
|
|
|
— |
|
Subordinated debt, net |
|
|
32,705 |
|
|
|
33,458 |
|
|
|
— |
|
|
|
33,458 |
|
|
|
— |
|
Junior subordinated debt, net |
|
|
34,077 |
|
|
|
32,480 |
|
|
|
— |
|
|
|
32,480 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
254,844 |
|
|
$ |
254,844 |
|
|
$ |
254,844 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal funds sold |
|
|
76 |
|
|
|
76 |
|
|
|
76 |
|
|
|
— |
|
|
|
— |
|
Certificates of deposit |
|
|
1,740 |
|
|
|
1,740 |
|
|
|
— |
|
|
|
1,740 |
|
|
|
— |
|
Available-for-sale investment securities |
|
|
1,076,883 |
|
|
|
1,076,883 |
|
|
|
— |
|
|
|
1,074,124 |
|
|
|
2,759 |
|
Held-to-maturity investment securities |
|
|
2,288 |
|
|
|
2,288 |
|
|
|
2,288 |
|
|
|
— |
|
|
|
— |
|
Equity investment securities |
|
|
4,588 |
|
|
|
4,588 |
|
|
|
4,588 |
|
|
|
— |
|
|
|
— |
|
Loans held for sale |
|
|
5,203 |
|
|
|
5,203 |
|
|
|
— |
|
|
|
5,203 |
|
|
|
— |
|
Loans net of allowance for credit losses |
|
|
5,931,296 |
|
|
|
5,761,258 |
|
|
|
— |
|
|
|
— |
|
|
|
5,761,258 |
|
Interest receivable |
|
|
39,949 |
|
|
|
39,949 |
|
|
|
— |
|
|
|
39,949 |
|
|
|
— |
|
Federal Reserve Bank stock |
|
|
19,855 |
|
|
|
19,855 |
|
|
|
— |
|
|
|
19,855 |
|
|
|
— |
|
Federal Home Loan Bank stock |
|
|
11,351 |
|
|
|
11,351 |
|
|
|
— |
|
|
|
11,351 |
|
|
|
— |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
6,395,273 |
|
|
$ |
6,322,439 |
|
|
$ |
— |
|
|
$ |
5,265,780 |
|
|
$ |
1,056,659 |
|
Repurchase agreements with customers |
|
|
196,716 |
|
|
|
196,716 |
|
|
|
— |
|
|
|
196,716 |
|
|
|
— |
|
Other borrowings |
|
|
270,000 |
|
|
|
270,338 |
|
|
|
— |
|
|
|
270,338 |
|
|
|
— |
|
Subordinated debt, net |
|
|
60,008 |
|
|
|
60,800 |
|
|
|
— |
|
|
|
60,800 |
|
|
|
— |
|
Junior subordinated debt, net |
|
|
24,454 |
|
|
|
22,083 |
|
|
|
— |
|
|
|
22,083 |
|
|
|
— |
|
|