| Items Recorded at Fair Value on a Recurring Basis |
The following tables present the balances of assets and liabilities reported at fair value on a recurring basis: | | | | | | | | | | | | | | | | (Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets
(Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | | September 30, 2026 | | Assets: | | | | | | Available for sale debt securities: | | | | | | Obligations of U.S. government agencies and U.S government sponsored enterprises | $39,459 | | $— | | $39,459 | | $— | | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 760,936 | | — | | 760,936 | | — | | Obligations of states and political subdivisions | 580 | | — | | 580 | | — | | Individual name issuer trust preferred debt securities | 6,130 | | — | | 6,130 | | — | | | | | | | Corporate bonds | 10,696 | | — | | 10,696 | | — | | | Mortgage loans held for sale | 31,530 | | — | | 31,530 | | — | | | Derivative assets | 55,958 | | — | | 55,958 | | — | | | | | | | | | | | | | | | | | | Total assets at fair value on a recurring basis | $905,289 | | $— | | $905,289 | | $— | | | Liabilities: | | | | | | Derivative liabilities | $51,326 | | $— | | $51,326 | | $— | | | | | | | | | | | | | | | | | | | | | | | Total liabilities at fair value on a recurring basis | $51,326 | | $— | | $51,326 | | $— | |
| | | | | | | | | | | | | | | | (Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets
(Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | | December 31, 2025 | | Assets: | | | | | | Available for sale debt securities: | | | | | | Obligations of U.S. government agencies and U.S government sponsored enterprises | $39,958 | | $— | | $39,958 | | $— | | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 880,894 | | — | | 880,894 | | — | | Obligations of states and political subdivisions | 663 | | — | | 663 | | — | | Individual name issuer trust preferred debt securities | 6,103 | | — | | 6,103 | | — | | | | | | | Corporate bonds | 12,724 | | — | | 12,724 | | — | | | | | | | | Mortgage loans held for sale | 35,833 | | — | | 35,833 | | — | | | Derivative assets | 28,770 | | — | | 28,770 | | — | | | | | | | | | | | | | | | | | | | | | | | Total assets at fair value on a recurring basis | $1,004,945 | | $— | | $1,004,945 | | $— | | | Liabilities: | | | | | | Derivative liabilities | $29,545 | | $— | | $29,545 | | $— | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total liabilities at fair value on a recurring basis | $29,545 | | $— | | $29,545 | | $— | |
|
| Items Recorded at Fair Value on a Nonrecurring Basis |
The following table presents the carrying value of assets held at September 30, 2026, which were written down to fair value during the nine months ended September 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Total | | Quoted Prices in Active Markets for Identical Assets
(Level 1) | | Significant Other Observable Inputs
(Level 2) | | Significant Unobservable Inputs
(Level 3) | | | | | Assets: | | | | | | | | | Collateral dependent individually analyzed loans | $8,186 | | | $— | | | $— | | | $8,186 | | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets at fair value on a nonrecurring basis | $8,186 | | | $— | | | $— | | | $8,186 | |
|
| Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis |
The following table presents valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized
(Weighted Average) | | September 30, 2026 | | Collateral dependent individually analyzed loans | $8,186 | | Appraisals of collateral | Discount for costs to sell | 0% - 15% (6%) | | | | Appraisal adjustments | 0% - 100% (39%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets written down to fair value for the year ended December 31, 2025 consisted of two collateral dependent individually analyzed loan relationships, which had no carrying value at December 31, 2025. See additional disclosure on these two relationships in Note 10 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
|
| Carrying Amounts and Estimated Fair Values of Financial Instruments |
The estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented in the tables below: | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | September 30, 2026 | Carrying Amount | Total
Fair Value | Quoted Prices in Active Markets for Identical Assets
(Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | | Financial Assets: | | | | | | | Cash and cash equivalents | $95,491 | | $95,491 | | $95,491 | | $— | | $— | | | | | | | | Loans, net of allowance for credit losses on loans (1) | 5,124,364 | | 4,957,791 | | — | | — | | 4,957,791 | | FHLB stock | 19,715 | | 19,715 | | — | | 19,715 | | — | | Investment in BOLI | 115,172 | | 115,172 | | — | | 115,172 | | — | | | | | | | | | Financial Liabilities: | | | | | | | Non-maturity deposits | $4,292,717 | | $4,292,717 | | $— | | $4,292,717 | | $— | | | Time deposits | 1,143,299 | | 1,136,143 | | — | | 1,136,143 | | — | | FHLB advances | 376,000 | | 375,341 | | — | | 375,341 | | — | | | Junior subordinated debentures | 22,681 | | 20,013 | | — | | 20,013 | | — | |
(1)The estimated fair value excludes a $2.2 million negative basis adjustment associated with fair value hedges. See Note 6 for additional disclosure. | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | December 31, 2025 | Carrying Amount | Total
Fair Value | Quoted Prices in Active Markets for Identical Assets
(Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | | Financial Assets: | | | | | | | Cash and cash equivalents | $103,734 | | $103,734 | | $103,734 | | $— | | $— | | | | | | | | Loans, net of allowance for credit losses on loans (1) | 5,097,152 | | 4,972,651 | | — | | — | | 4,972,651 | | FHLB stock | 29,473 | | 29,473 | | — | | 29,473 | | — | | Investment in BOLI | 115,126 | | 115,126 | | — | | 115,126 | | — | | | | | | | | | Financial Liabilities: | | | | | | | Non-maturity deposits | $4,049,307 | | $4,049,307 | | $— | | $4,049,307 | | $— | | | Time deposits | 1,220,683 | | 1,218,361 | | — | | 1,218,361 | | — | | FHLB advances | 626,000 | | 629,484 | | — | | 629,484 | | — | | | Junior subordinated debentures | 22,681 | | 19,953 | | — | | 19,953 | | — | |
(1)The estimated fair value excludes a $335 thousand negative basis adjustment associated with fair value hedges. See Note 6 for additional disclosure.
|