Fair Value Disclosures

Assets Measured at Fair Value on a Non-Recurring Basis


	Fair Value Measurements at
	September 30, 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:
Nonowner-occupied	$	—	$	—	$	305	$	305
Commercial real estate:
Owner-occupied		—		—		339		339
Total collateral-dependent loans	$	—	$	—	$	644	$	644

Other real estate owned:
Residential real estate
Owner-occupied	$	—	$	—	$	244	$	244
Commercial real estate:
Nonowner-occupied		—		—		1,002	$	1,002
Total other real estate owned	$	—	$	—	$	1,246	$	1,246


	Fair Value Measurements at
	December 31, 2024 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	$	—	$	—	$	201	$	201
Total collateral-dependent loans	$	—	$	—	$	201	$	201

Other real estate owned:
Commercial real estate
Nonowner-occupied	$	—	$	—	$	1,160	$	1,160
Total other real estate owned	$	—	$	—	$	1,160	$	1,160

Carrying amount and estimated fair values of financial instruments


			Fair Value Measurements at
			September 30, 2025:
									Total
	Carrying								Fair
(in thousands)	Value		Level 1		Level 2		Level 3		Value

Assets:
Cash and cash equivalents	$	484,238	$	484,238	$	—	$	—	$	484,238
Available-for-sale debt securities		843,171		34,750		802,899		5,522		843,171
Held-to-maturity debt securities		5,110		—		5,087		—		5,087
Equity securities with readily determinable fair values		945		—		945		—		945
Mortgage loans held for sale, at fair value		15,338		—		15,338		—		15,338
Consumer loans held for sale, at fair value		8,444		—		—		8,444		8,444
Consumer loans held for sale, at the lower of cost or fair value		16,424		—		—		16,498		16,498
Loans, net		5,201,509		—		—		5,106,317		5,106,317
Federal Home Loan Bank stock		25,849		—		—		—		NA
Accrued interest receivable		20,797		—		20,797		—		20,797
Mortgage servicing rights		6,798		—		16,941		—		16,941
Rate lock commitments		475		—		475		—		475
Interest rate swap agreements - Bank clients and institutional swap dealer		6,745		—		6,745		—		6,745

Liabilities:
Noninterest-bearing deposits	$	1,239,023	$	—	$	1,239,023	$	—	$	1,239,023
Transaction deposits		3,442,646		—		3,442,646		—		3,442,646
Time deposits		656,676		—		646,284		—		646,284
Securities sold under agreements to repurchase and other short-term borrowings		74,522		—		74,522		—		74,522
Federal Home Loan Bank advances		375,000		—		379,059		—		379,059
Accrued interest payable		4,483		—		4,483		—		4,483
Mandatory forward contracts		101		—		101		—		101
Interest rate swap agreements - Bank clients and institutional swap dealer		6,745		—		6,745		—		6,745
Interest rate swap agreements on FHLB advances		2,907		—		2,907		—		2,907


			Fair Value Measurements at
			December 31, 2024:
									Total
	Carrying								Fair
(in thousands)	Value		Level 1		Level 2		Level 3		Value

Assets:
Cash and cash equivalents	$	432,151	$	432,151	$	—	$	—	$	432,151
Available-for-sale debt securities		584,155		84,775		493,796		5,584		584,155
Held-to-maturity debt securities		10,778		—		10,735		—		10,735
Equity securities with readily determinable fair values		693		—		693		—		693
Mortgage loans held for sale, at fair value		8,312		—		8,312		—		8,312
Consumer loans held for sale, at fair value		5,443		—		—		5,443		5,443
Consumer loans held for sale, at the lower of cost or fair value		18,632		—		—		18,714		18,714
Loans, net		5,347,488		—		—		5,209,571		5,209,571
Federal Home Loan Bank stock		24,478		—		—		—		NA
Accrued interest receivable		20,128		—		20,128		—		20,128
Mortgage servicing rights		6,975		—		17,159		—		17,159
Rate lock commitments		223		—		223		—		223
Mandatory forward contracts		70		—		70		—		70
Interest rate swap agreements - Bank clients and institutional swap dealer		6,588		—		6,588		—		6,588

Liabilities:
Noninterest-bearing deposits	$	1,207,764	$	—	$	1,207,764	$	—	$	1,207,764
Transaction deposits		3,231,738		—		3,231,738		—		3,231,738
Time deposits		771,044		—		773,415		—		773,415
Securities sold under agreements to repurchase and other short-term borrowings		103,318		—		103,318		—		103,318
Federal Home Loan Bank advances		395,000		—		395,814		—		395,814
Accrued interest payable		5,153		—		5,153		—		5,153
Interest rate swap agreements - Bank clients and institutional swap dealer		6,588		—		6,588		—		6,588
Interest rate swap agreements on FHLB advances		647		—		647		—		647

Fair Value Disclosures

Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2025		2024		2025		2024

Balance, beginning of period	$	1,489	$	1,716	$	1,550	$	1,773
Total gains or losses included in earnings:
Net change in unrealized gain (loss)		14		54		26		102
Principal paydowns		(51)		(105)		(124)		(210)
Balance, end of period	$	1,452	$	1,665	$	1,452	$	1,665

Fair Value Disclosures

Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2025		2024		2025		2024

Balance, beginning of period	$	4,075	$	4,092	$	4,034	$	4,118
Total gains or losses included in earnings:
Discount accretion		16		16		48		46
Net change in unrealized gain (loss)		(21)		(85)		(12)		(141)
Balance, end of period	$	4,070	$	4,023	$	4,070	$	4,023

Fair Value Disclosures

Schedule of gains and losses from changes in fair value included in earnings


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2025		2024		2025		2024

Interest income	$	183	$	179	$	520	$	456
Change in fair value		376		70		357		177
Total included in earnings	$	559	$	249	$	877	$	633

Fair Value Disclosures

Schedule of gains and losses from changes in fair value included in earnings


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2025		2024		2025		2024

Interest income	$	2,215	$	1,464	$	4,957	$	3,995
Change in fair value		(2)		13		(27)		10
Total included in earnings	$	2,213	$	1,477	$	4,930	$	4,005

Fair Value Disclosures