FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of carrying amount and estimated fair value of financial instruments


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2026
Financial assets:
Cash and due from financial institutions	$	116,691	$	116,691	$	116,691	$	—	$	—
Interest-bearing deposits in other financial institutions	242,725		242,725		242,725		—		—
Investment securities	1,341,412		1,240,864		58,363		1,176,327		6,174
Loans held for sale	777		777		—		777		—
Loans	5,313,070		4,909,265		—		—		4,909,265
Mortgage servicing rights	8,212		12,241		—		—		12,241


Accrued interest receivable	25,176		25,176		1,187		5,005		18,984

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,897,421		1,897,421		1,897,421		—		—
Interest-bearing demand and savings and money market	3,821,747		3,821,747		3,821,747		—		—
Time	944,694		937,050		—		—		937,050

Long-term debt	76,547		76,053		—		—		76,053
Accrued interest payable	5,397		5,397		81		—		5,316


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2026
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,388,023	$	—	$	1,142	$	—	$	1,142	$	—
Standby letters of credit and financial guarantees written	2,751		—		41		—		41		—

Derivatives:

Forward sale commitments	785		4		4		—		4		—
Risk participation agreements	51,760		—		—		—		—		—
Back-to-back swap agreements:
Assets	84,814		3,898		3,898		—		3,898		—
Liabilities	(84,814)		(3,898)		(3,898)		—		(3,898)		—
Interest rate swap agreements	114,580		6,907		6,907		—		6,907		—


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Financial assets:
Cash and due from financial institutions	$	88,200	$	88,200	$	88,200	$	—	$	—
Interest-bearing deposits in other financial institutions	290,453		290,453		290,453		—		—
Investment securities	1,310,603		1,244,057		61,291		1,176,050		6,716
Loans held for sale	1,084		1,084		—		1,084		—
Loans	5,289,096		5,016,971		—		—		5,016,971
Mortgage servicing rights	8,672		11,301		—		—		11,301


Accrued interest receivable	23,559		23,559		651		4,075		18,833

Financial liabilities:
Deposits:
Noninterest-bearing demand	1,891,198		1,891,198		1,891,198		—		—
Interest-bearing demand and savings and money market	3,734,629		3,734,629		3,734,629		—		—
Time	983,937		978,868		—		—		978,868

Long-term debt	76,547		73,579		—		—		73,579
Accrued interest payable	7,068		7,068		102		—		6,966


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,337,099	$	—	$	1,063	$	—	$	1,063	$	—
Standby letters of credit and financial guarantees written	2,624		—		39		—		39		—

Derivatives:

Forward sale commitments	1,095		(4)		(4)		—		(4)		—
Risk participation agreements	52,435		(3)		(3)		—		(3)		—
Back-to-back swap agreements:
Assets	60,660		3,045		3,045		—		3,045		—
Liabilities	(60,660)		(3,045)		(3,045)		—		(3,045)		—
Interest rate swap agreements	114,580		4,163		4,163		—		4,163		—

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

The following tables present the fair value of financial assets and liabilities measured on a recurring basis as of the dates presented:


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2026
Available-for-sale securities:
Debt securities:
States and political subdivisions	$	108,803	$	—	$	103,242	$	5,561
Corporate securities	14,685		—		14,685		—
U.S. Treasury and other government-sponsored entities and agencies	91,881		58,363		33,518		—
Collateralized loan obligations	110,055		—		110,055		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	399,698		—		399,698		—
Residential - Non-government agencies	13,374		—		12,761		613
Commercial - U.S. government-sponsored entities and agencies	67,734		—		67,734		—


Total available-for-sale investment securities	806,230		58,363		741,693		6,174



Derivatives:

Forward sale commitments	4		—		4		—

Back-to-back swap agreements:
Assets	3,898		—		3,898		—
Liabilities	(3,898)		—		(3,898)		—
Interest rate swap agreements	6,907		—		6,907		—
Total derivatives	6,911		—		6,911		—
Total	$	813,141	$	58,363	$	748,604	$	6,174


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2025
Available-for-sale securities:
Debt securities:
States and political subdivisions	$	117,041	$	—	$	110,993	$	6,048

U.S. Treasury and other government-sponsored entities and agencies	100,025		61,291		38,734		—
Collateralized loan obligations	40,827		—		40,827		—
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	407,053		—		407,053		—
Residential - Non-government agencies	15,363		—		14,695		668
Commercial - U.S. government-sponsored entities and agencies	67,903		—		67,903		—


Total available-for-sale investment securities	748,212		61,291		680,205		6,716



Derivatives:

Forward sale commitments	(4)		—		(4)		—
Risk participation agreements	(3)		—		(3)		—
Back-to-back swap agreements:							—
Assets	3,045		—		3,045		—
Liabilities	(3,045)		—		(3,045)		—
Interest rate swap agreements	4,163		—		4,163		—
Total derivatives	4,156		—		4,156		—
Total	$	752,368	$	61,291	$	684,361	$	6,716

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the periods presented:


	Available-For-Sale Debt Securities:
(Dollars in thousands)	States and Political Subdivisions		Residential - Non-Government Agencies		Total
Balance at December 31, 2025	$	6,048	$	668	$	6,716
Principal payments received	(220)		(19)		(239)
Unrealized net (loss) gain included in other comprehensive income	(267)		(36)		(303)

Balance at September 30, 2026	$	5,561	$	613	$	6,174

Balance at December 31, 2024	$	6,165	$	682	$	6,847
Principal payments received	(178)		(18)		(196)
Unrealized net gain (loss) included in other comprehensive income	149		13		162

Balance at September 30, 2025	$	6,136	$	677	$	6,813

- 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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