Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2026

Fair Values of Financial Instruments [Abstract]

Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates.

Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances.

The estimated recorded book balances and fair values follow:


					Fair Value Using
	Recorded Book Balance		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
March 31, 2026
Assets
Cash and due from banks	$	48,475	$	48,475	$	48,475	$	—	$	—
Interest bearing deposits	126,440		126,440		126,440		—		—
Securities available for sale	482,295		482,295		—		482,295		—
Securities held to maturity	301,007		271,452		—		271,452		—
Federal Home Loan Bank and Federal
Reserve Bank Stock	18,102		NA		NA		NA		NA
Net loans and loans held for sale	4,264,094		4,079,140		—		19,714		4,059,426
Accrued interest receivable	18,864		18,864		117		4,669		14,078
Derivative financial instruments	26,970		26,970		—		26,970		—

Liabilities
Deposits with no stated maturity (1)	$	4,052,869	$	4,052,869	$	4,052,869	$	—	$	—
Deposits with stated maturity (1)	827,811		825,762		—		825,762		—
Other borrowings	27,010		26,689		—		26,689		—

Subordinated debentures	39,881		40,093		—		40,093		—
Accrued interest payable	2,274		2,274		319		1,955		—
Derivative financial instruments	15,575		15,575		—		15,575		—

December 31, 2025
Assets
Cash and due from banks	$	52,235	$	52,235	$	52,235	$	—	$	—
Interest bearing deposits	86,152		86,152		86,152		—		—
Securities available for sale	495,909		495,909		—		495,909		—
Securities held to maturity	309,523		282,830		—		282,830		—
Federal Home Loan Bank and Federal
Reserve Bank Stock	18,102		NA		NA		NA		NA
Net loans and loans held for sale	4,221,871		4,062,200		—		9,031		4,053,169
Accrued interest receivable	19,030		19,030		35		5,043		13,952
Derivative financial instruments	29,584		29,584		—		29,584		—

Liabilities
Deposits with no stated maturity (1)	$	3,967,941	$	3,967,941	$	3,967,941	$	—	$	—
Deposits with stated maturity (1)	793,741		791,598		—		791,598		—
Other borrowings	77,003		76,680		—		76,680		—

Subordinated debentures	39,864		39,761		—		39,761		—
Accrued interest payable	1,892		1,892		316		1,576		—
Derivative financial instruments	19,551		19,551		—		19,551		—


(1)			Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $915.326 million and $862.697 million at March 31, 2026 and December 31, 2025, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $113.548 million and $112.224 million at March 31, 2026 and December 31, 2025, respectively.

The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal and therefore are not disclosed.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments.

Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.