Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount

The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity.


(Dollars in thousands)	Fair value carrying amount		Aggregate unpaid principal		Excess of fair value carrying amount over (under) unpaid principal
September 30, 2026
Mortgages held for sale reported at fair value	$	3,331	$	3,152	$	179	(1)

December 31, 2025
Mortgages held for sale reported at fair value	$	4,866	$	4,647	$	219	(1)

(1)The excess of fair value carrying amount over (under) unpaid principal is included in Mortgage Banking Income on the Consolidated Statements of Income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table shows the balance of assets and liabilities measured at fair value on a recurring basis.


(Dollars in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2026
Assets:
Investment securities available-for-sale:
U.S. Treasury and Federal agencies securities	$	567,739	$	145,140	$	—	$	712,879
U.S. States and political subdivisions securities	—		99,387		860		100,247
Mortgage-backed securities — Federal agencies	—		694,381		—		694,381
Corporate debt securities	—		479		—		479

Total debt securities available-for-sale	567,739		939,387		860		1,507,986

Mortgages held for sale	—		3,331		—		3,331
Accrued income and other assets (interest rate swap agreements)	—		22,179		—		22,179
Total	$	567,739	$	964,897	$	860	$	1,533,496

Liabilities:
Accrued expenses and other liabilities (interest rate swap agreements)	$	—	$	22,577	$	—	$	22,577
Total	$	—	$	22,577	$	—	$	22,577

December 31, 2025
Assets:
Investment securities available-for-sale:
U.S. Treasury and Federal agencies securities	$	516,892	$	179,885	$	—	$	696,777
U.S. States and political subdivisions securities	—		112,080		983		113,063
Mortgage-backed securities — Federal agencies	—		712,143		—		712,143
Corporate debt securities	—		503		—		503

Total debt securities available-for-sale	516,892		1,004,611		983		1,522,486

Mortgages held for sale	—		4,866		—		4,866
Accrued income and other assets (interest rate swap agreements)	—		16,486		—		16,486
Total	$	516,892	$	1,025,963	$	983	$	1,543,838

Liabilities:
Accrued expenses and other liabilities (interest rate swap agreements)	$	—	$	16,798	$	—	$	16,798
Total	$	—	$	16,798	$	—	$	16,798

Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis

The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2026, and 2025.


	U.S. States and political subdivisions securities				U.S. States and political subdivisions securities
	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2026		2025		2026		2025
Beginning balance	$	890	$	971	$	983	$	1,032
Total gains or losses (realized/unrealized):
Included in earnings	—		—		—		—
Included in other comprehensive income (loss)	(30)		5		(33)		34
Purchases	—		—		—		—
Issuances	—		—		—		—
Sales	—		—		—		—
Settlements	—		—		—		—
Maturities	—		—		(90)		(90)
Transfers into Level 3	—		—		—		—
Transfers out of Level 3	—		—		—		—
Ending balance September 30,	$	860	$	976	$	860	$	976

Schedule of carrying value of assets measured at fair value on a non-recurring basis

The following table shows the carrying value of assets measured at fair value on a non-recurring basis.


(Dollars in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2026
Collateral dependent loans and leases	$	—	$	—	$	3,234	$	3,234
Accrued income and other assets (mortgage servicing rights)	—		—		3,228		3,228
Accrued income and other assets (repossessions)	—		—		2,309		2,309
Accrued income and other assets (other real estate)	—		—		49		49
Total	$	—	$	—	$	8,820	$	8,820

December 31, 2025
Collateral dependent loans and leases	$	—	$	—	$	26,175	$	26,175
Accrued income and other assets (mortgage servicing rights)	—		—		3,300		3,300
Accrued income and other assets (repossessions)	—		—		267		267

Total	$	—	$	—	$	29,742	$	29,742

Schedule of fair values of financial instruments

The following table shows the fair values of the Company’s financial instruments.


(Dollars in thousands)	Carrying or Contract Value		Fair Value		Level 1		Level 2		Level 3
September 30, 2026
Assets:
Cash and due from banks	$	67,550	$	67,550	$	67,550	$	—	$	—
Federal funds sold and interest bearing deposits with other banks	37,245		37,245		37,245		—		—

Other investments	21,160		21,160		21,160		—		—

Loans and leases, net of allowance for loan and lease losses	7,173,931		7,163,455		—		—		7,163,455

Accrued interest receivable	35,880		35,880		—		35,880		—

Liabilities:
Deposits	$	7,469,212	$	7,458,485	$	5,753,918	$	1,704,567	$	—
Short-term borrowings	233,645		233,645		138,645		95,000		—
Long-term debt and mandatorily redeemable securities	35,633		35,633		—		35,633		—
Subordinated notes	58,764		54,871		—		54,871		—
Accrued interest payable	23,910		23,910		—		23,910		—

Off-balance-sheet instruments *	—		195		—		195		—

December 31, 2025
Assets:
Cash and due from banks	$	69,249	$	69,249	$	69,249	$	—	$	—
Federal funds sold and interest bearing deposits with other banks	50,608		50,608		50,608		—		—

Other investments	22,140		22,140		22,140		—		—

Loans and leases, net of allowance for loan and lease losses	6,884,823		6,946,110		—		—		6,946,110

Accrued interest receivable	35,539		35,539		—		35,539		—

Liabilities:
Deposits	$	7,225,575	$	7,223,139	$	5,638,975	$	1,584,164	$	—
Short-term borrowings	238,621		238,621		113,574		125,047		—
Long-term debt and mandatorily redeemable securities	43,330		43,292		—		43,292		—
Subordinated notes	58,764		59,076		—		59,076		—
Accrued interest payable	24,738		24,738		—		24,738		—

Off-balance-sheet instruments *	—		139		—		139		—

* Represents estimated cash outflows required to currently settle the obligations at current market rates.

Recurring

Fair value measurements

Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis

The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis.

(Dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Range of Inputs

Weighted Average

September 30, 2026

Debt securities available-for sale

Direct placement municipal securities

860

Discounted cash flows

Credit spread assumption

4.50% - 5.59%

4.92

December 31, 2025

Debt securities available-for sale

Direct placement municipal securities

983

Discounted cash flows

Credit spread assumption

0.88% - 3.99%

3.45

Non-recurring

Fair value measurements

Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis

The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis.


(Dollars in thousands)	Carrying Value		Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
September 30, 2026
Collateral dependent loans and leases	$	3,234	$	3,234	Collateral based measurements including appraisals, trade publications, and auction values	Discount for lack of marketability and current conditions	20% - 40%	23.0	%

Mortgage servicing rights	3,228		7,367		Discounted cash flows	Constant prepayment rate (CPR)	5.9% - 13.6%	6.1	%
						Discount rate	11.4% - 13.4%	11.6	%

Repossessions	2,309		2,321		Appraisals, trade publications and auction values	Discount for lack of marketability	0% - 20%	1	%

Other real estate	49		49		Appraisals	Discount for lack of marketability	0% - 0%	0	%

December 31, 2025
Collateral dependent loans and leases	$	26,175	$	26,175	Collateral based measurements including appraisals, trade publications, and auction values	Discount for lack of marketability and current conditions	15% - 30%	23.9	%

Mortgage servicing rights	3,300		7,325		Discounted cash flows	Constant prepayment rate (CPR)	6.4% - 33.4%	7.4	%
						Discount rate	10.4% - 12.4%	10.6	%

Repossessions	267		297		Appraisals, trade publications and auction values	Discount for lack of marketability	0% - 20%	10	%

- 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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