FAIR VALUE

Assets Measured at Fair Value on a Non-Recurring Basis


		Fair Value Measurements at
		March 31, 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		$	—		$	—		$	751		$	751
Commercial real estate:
Multi-Family			—			—			1,233			1,233
Total collateral-dependent loans		$	—		$	—		$	1,984		$	1,984

Other real estate owned:
Commercial real estate:
Nonowner-occupied		$	—		$	—		$	896		$	896
Total other real estate owned		$	—		$	—		$	896		$	896


		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
					March 31, 2026:
														Total
		Carrying												Fair
(in thousands)		Value			Level 1			Level 2			Level 3			Value

Assets:
Cash and cash equivalents		$	599,105		$	599,105		$	—		$	—		$	599,105
Available-for-sale debt securities			880,921			34,859			841,990			4,072			880,921
Held-to-maturity debt securities			4,775			—			4,775			—			4,775
Equity securities with a readily determinable fair value			945			—			945			—			945
Mortgage loans held for sale, at fair value			12,953			—			12,953			—			12,953
Consumer loans held for sale, at fair value			9,430			—			—			9,430			9,430
Consumer loans held for sale, at the lower of cost or fair value			19,399			—			—			19,489			19,489
Loans, net			5,275,133			—			—			5,243,154			5,243,154
Federal Home Loan Bank stock			27,014			—			—			—			NA
Accrued interest receivable			21,261			—			21,261			—			21,261
Mortgage servicing rights			6,693			—			17,702			—			17,702
Rate lock commitments			358			—			358			—			358
Mandatory forward contracts			400			—			400			—			400
Interest rate swap agreements - Bank clients and institutional swap dealer			5,116			—			5,116			—			5,116

Liabilities:
Noninterest-bearing deposits		$	1,275,427		$	—		$	1,275,427		$	—		$	1,275,427
Transaction deposits			3,549,914			—			3,549,914			—			3,549,914
Time deposits			683,779			—			686,716			—			686,716
Securities sold under agreements to repurchase and other short-term borrowings			81,337			—			81,337			—			81,337
Federal Home Loan Bank advances			366,500			—			365,324			—			365,324
Accrued interest payable			4,258			—			4,258			—			4,258
Interest rate swap agreements - Bank clients and institutional swap dealer			5,116			—			5,116			—			5,116
Interest rate swap agreements on FHLB advances			1,855			—			1,855			—			1,855


					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

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


		Three Months Ended
		March 31,
(dollars in thousands)		2026		2025

Balance, beginning of period		$	4,062	$	4,034
Total gains or losses included in earnings:
Discount accretion			14		16
Net change in unrealized gain (loss)			(4)		23
Balance, end of period		$	4,072	$	4,073

FAIR VALUE

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


		Three Months Ended
		March 31,
(dollars in thousands)		2026			2025

Interest income		$	98		$	166
Change in fair value			(58)			(45)
Total included in earnings		$	40		$	121

FAIR VALUE

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


		Three Months Ended
		March 31,
(dollars in thousands)		2026			2025

Interest income		$	1,686		$	1,078
Change in fair value			21			(21)
Total included in earnings		$	1,707		$	1,057

FAIR VALUE