v3.26.1
Disclosures about Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value of Assets and Liabilities Disclosures about Fair Value of Assets and Liabilities
The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value:
Level 1 – Quoted prices in active markets for identical assets or liabilities
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended June 30, 2026. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.
Available for sale securities
When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, U.S. government agency mortgage-backed securities, corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed–income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features. Level 3 securities use the discounted cash flow model or other market indicators to calculate the fair values.
Equity investments in other assets
The fair value of the Company's equity investments in other assets is estimated by a third party utilizing readily determinable fair values quoted on an active market. These investments include the Company's non-qualified deferred compensation plan (see Note 14 - Non-Qualified Deferred Compensation Plan in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025). The Company informally funded its obligation to plan participants in a rabbi trust, which is consolidated by the Company, and is comprised of investment options similar to those selected by the Participants. The assets held in the rabbi trust were reported at their estimated fair value and were included in cash and other assets in the Company's consolidated balance sheets. The related accrued benefit cost (representing the Company's benefit obligation to participants) is recorded as an offsetting liability in other liabilities in the Company's consolidated balance sheets. These assets are classified within Level 1 of the valuation hierarchy.
Interest rate swap agreements
The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy.
Commitments to originate mortgage loans and mortgage loan contract assets/liabilities
The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable.
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:
June 30, 2026
Fair ValueQuoted Prices in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Available for sale securities
U.S. Treasury and federal agencies$15,714 $— $15,714 $— 
State and municipal327,726 — 327,726 — 
U.S. government agency mortgage-backed securities514,656 — 514,656 — 
Corporate notes39,668 — 35,694 3,974 
Total available for sale securities897,764 — 893,790 3,974 
Equity securities in other assets9,004 9,004 — — 
Held for trading securities3,885 3,885 — — 
Interest rate swap agreements asset15,982 — 15,982 — 
Commitments to originate mortgage loans77 — 77 — 
Liabilities:
Interest rate swap agreements liability(13,895)— (13,895)— 

December 31, 2025
Fair ValueQuoted Prices in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Available for sale securities
U.S. Treasury and federal agencies$16,905 $— $16,905 $— 
State and municipal319,665 — 319,665 — 
U.S. government agency mortgage-backed securities494,174 — 494,174 — 
Corporate notes44,670 — 40,799 3,871 
Total available for sale securities875,414 — 871,543 3,871 
Equity securities in other assets7,871 7,871 — — 
Held for trading securities3,883 — 3,883 — 
Interest rate swap agreements asset13,965 — 13,965 — 
Commitments to originate mortgage loans94 — 94 — 
Liabilities:
Mortgage loan contracts(14)— (14)— 
Interest rate swap agreements liability(13,658)— (13,658)— 
Level 3 recurring fair value measurements:
As of June 30, 2026, the Company has one Level 3 fair value measurement, an available‑for‑sale corporate debt security, which was transferred from Level 2 to Level 3 in 2025 due to increased reliance on significant unobservable inputs used in the discounted cash flow model. These valuation inputs primarily relate to expected cash flow timing, credit assumptions, and the discount rate applied to those cash flows. At the time of transfer, the security had an amortized cost of $5 million and the Company recognized an initial allowance for credit losses $150 thousand and an initial write down of $2.1 million; the fair value at the transfer date is reflected within "Transfers into Level 3". The following table presents the changes in fair value for assets classified within Level 3 of the fair value hierarchy as of June 30, 2026 and December 31, 2025:
Level 3 instruments at fair value June 30, 2026December 31, 2025
Fair value beginning of year $3,871 $— 
Transfers into Level 3 (at fair value on transfer date)— 2,787 
Total gains/(losses) included in earnings (subsequent ACL change - AFS securities)— 30 
Total gains/(losses) included in OCI103 1,054 
Ending balance – June 30, 2026$3,974 $3,871 
Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):
Fair ValueQuoted Prices in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
June 30, 2026
Collateral dependent loans$464 $— $— $464 
December 31, 2025
Collateral dependent loans$7,429 $— $— $7,429 
Collateral Dependent Loans: For loans identified as collateral dependent, the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.
The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
June 30, 2026
Fair
Value		Valuation
Technique		Unobservable
Inputs		Range
(Weighted Average)
Collateral dependent loans$464 Collateral based measurementDiscount to reflect current market conditions and ultimate collectability
20.5%-42.9% (39.4%)
December 31, 2025
Fair
Value		Valuation
Technique		Unobservable
Inputs		Range
(Weighted Average)
Collateral dependent loans$7,429 Collateral based measurementDiscount to reflect current market conditions and ultimate collectability
34.2%-67.4%(30.6%)