FAIR VALUE

Assets Measured at Fair Value on a Non-Recurring Basis


		Fair Value Measurements at
		June 30, 2026 Using:
		Quoted Prices in			Significant
		Active Markets			Other			Significant
		for Identical			Observable			Unobservable			Total
		Assets			Inputs			Inputs			Fair
(in thousands)		(Level 1)			(Level 2)			(Level 3)			Value

Collateral-dependent loans:
Residential real estate:
Owner-occupied		$	—		$	—		$	743		$	743
Commercial real estate:
Multi-Family			—			—			5,783			5,783
Total collateral-dependent loans		$	—		$	—		$	6,526		$	6,526

Other real estate owned:
Commercial real estate:
Nonowner-occupied		$	—		$	—		$	843		$	843
Total other real estate owned		$	—		$	—		$	843		$	843


		Fair Value Measurements at
		December 31, 2025 Using:
		Quoted Prices in			Significant
		Active Markets			Other			Significant
		for Identical			Observable			Unobservable			Total
		Assets			Inputs			Inputs			Fair
(in thousands)		(Level 1)			(Level 2)			(Level 3)			Value

Collateral-dependent loans:
Residential real estate:
Owner-occupied		$	—		$	—		$	412		$	412
Nonowner-occupied			—			—			306			306
Commercial real estate:
Owner-occupied			—			—			1,260			1,260
Total collateral-dependent loans		$	—		$	—		$	1,978		$	1,978

Other real estate owned:
Residential real estate
Owner-occupied		$	—		$	—		$	328		$	328
Commercial real estate:
Nonowner-occupied			—			—			949		$	949
Total other real estate owned		$	—		$	—		$	1,277		$	1,277

Carrying amount and estimated fair values of financial instruments


					Fair Value Measurements at
					June 30, 2026:
														Total
		Carrying												Fair
(in thousands)		Value			Level 1			Level 2			Level 3			Value

Assets:
Cash and cash equivalents		$	354,091		$	354,091		$	—		$	—		$	354,091
Available-for-sale debt securities			886,982			24,937			856,001			4,684			885,622
Held-to-maturity debt securities			4,546			—			4,549			—			4,549
Equity securities with a readily determinable fair value			588			—			588			—			588
Mortgage loans held for sale, at fair value			16,566			—			16,566			—			16,566
Consumer loans held for sale, at fair value			12,406			—			—			12,406			12,406
Consumer loans held for sale, at the lower of cost or fair value			29,025			—			—			29,134			29,134
Loans, net			5,322,639			—			—			5,300,109			5,300,109
Federal Home Loan Bank stock			18,149			—			—			—			NA
Accrued interest receivable			21,850			—			21,850			—			21,850
Mortgage servicing rights			6,783			—			18,607			—			18,607
Rate lock commitments			537			—			537			—			537
Interest rate swap agreements - Bank clients and institutional swap dealer			4,391			—			4,391			—			4,391

Liabilities:
Noninterest-bearing deposits		$	1,248,704		$	—		$	1,248,704		$	—		$	1,248,704
Transaction deposits			3,612,959			—			3,612,959			—			3,612,959
Time deposits			690,079			—			691,586			—			691,586
Securities sold under agreements to repurchase and other short-term borrowings			68,615			—			68,615			—			68,615
Federal Home Loan Bank advances			157,000			—			156,546			—			156,546
Accrued interest payable			2,758			—			2,758			—			2,758
Mandatory forward contracts			112			—			112			—			112
Interest rate swap agreements - Bank clients and institutional swap dealer			4,391			—			4,391			—			4,391
Interest rate swap agreements on FHLB advances			692			—			692			—			692


					Fair Value Measurements at
					December 31, 2025:
														Total
		Carrying												Fair
(in thousands)		Value			Level 1			Level 2			Level 3			Value

Assets:
Cash and cash equivalents		$	219,972		$	219,972		$	—		$	—		$	219,972
Available-for-sale debt securities			884,693			34,854			844,338			5,501			884,693
Held-to-maturity debt securities			4,944			—			4,929			—			4,929
Equity securities with a readily determinable fair value			945			—			945			—			945
Mortgage loans held for sale, at fair value			7,516			—			7,516			—			7,516
Consumer loans held for sale, at fair value			10,968			—			—			10,968			10,968
Consumer loans held for sale, at the lower of cost or fair value			17,027			—			—			17,124			17,124
Other loans held for sale, at the lower of cost or fair value			81,839			—			—			82,837			82,837
Loans, net			5,360,977			—			—			5,332,160			5,332,160
Federal Home Loan Bank stock			32,114			—			—			—			NA
Accrued interest receivable			22,291			—			22,291			—			22,291
Mortgage servicing rights			6,811			—			17,432			—			17,432
Rate lock commitments			279			—			279			—			279
Interest rate swap agreements - Bank clients and institutional swap dealer			6,321			—			6,321			—			6,321

Liabilities:
Noninterest-bearing deposits		$	1,173,461		$	—		$	1,173,461		$	—		$	1,173,461
Transaction deposits			3,378,084			—			3,378,084			—			3,378,084
Time deposits			651,602			—			652,942			—			652,942
Securities sold under agreements to repurchase and other short-term borrowings			88,504			—			88,504			—			88,504
Federal Home Loan Bank advances			506,000			—			508,892			—			508,892
Accrued interest payable			3,288			—			3,288			—			3,288
Mandatory forward contracts			29			—			29			—			29
Interest rate swap agreements - Bank clients and institutional swap dealer			6,321			—			6,321			—			6,321
Interest rate swap agreements on FHLB advances			2,674			—			2,674			—			2,674

FAIR VALUE

Rollforward of the Bank's investments measured at fair value on a recurring basis


		Three Months Ended					Six Months Ended
		June 30,					June 30,
(dollars in thousands)		2026		2025			2026		2025

Balance, beginning of period		$	4,072	$	4,073		$	4,062	$	4,034
Total gains or losses included in earnings:
Discount accretion			14		16			28		32
Net change in unrealized gain (loss)			598		(14)			594		9
Balance, end of period		$	4,684	$	4,075		$	4,684	$	4,075

FAIR VALUE

Schedule of gains and losses recognized in earnings from changes in the fair value


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(dollars in thousands)		2026			2025			2026			2025

Interest income		$	219		$	221		$	317		$	337
Change in fair value			278			26			220			(19)
Total included in earnings		$	497		$	247		$	537		$	318

FAIR VALUE

Schedule of gains and losses recognized in earnings from changes in the fair value


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(dollars in thousands)		2026			2025			2026			2025

Interest income		$	1,949		$	1,664		$	3,635		$	2,742
Change in fair value			(22)			(4)			(1)			(25)
Total included in earnings		$	1,927		$	1,660		$	3,634		$	2,717

FAIR VALUE