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FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2025

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of assets measured at fair value and the valuation methods used


		September 30, 2025
		Quoted Prices			Other Observable			Unobservable
		in Active Markets			Inputs			Inputs			Total
(In Thousands)		(Level 1)			(Level 2)			(Level 3)			Fair Value
Recurring fair value measurements, assets:
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of the U.S. Treasury		$	7,429		$	0		$	0		$	7,429
Obligations of U.S. Government agencies			0			8,670			0			8,670
Bank holding company debt securities			0			26,291			0			26,291
Obligations of states and political subdivisions:
Tax-exempt			0			97,528			0			97,528
Taxable			0			43,862			0			43,862
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities			0			101,935			0			101,935
Residential collateralized mortgage obligations			0			52,420			0			52,420
Commercial mortgage-backed securities			0			65,697			0			65,697
Private label commercial mortgage-backed securities			0			3,471			0			3,471
Asset-backed securities,
Collateralized loan obligations			0			8,010			0			8,010
Total available-for-sale debt securities			7,429			407,884			0			415,313
Marketable equity security			887			0			0			887
Servicing rights			0			0			2,839			2,839
RPA Out			0			3			0			3
Interest rate swap agreements, assets			0			1,483			0			1,483
Total recurring fair value measurements, assets		$	8,316		$	409,370		$	2,839		$	420,525

Recurring fair value measurements, liabilities:
RPA In		$	0		$	7		$	0		$	7
Interest rate swap agreements, liabilities			0			1,483			0			1,483
Total recurring fair value measurements, liabilities		$	0		$	1,490		$	0		$	1,490

Nonrecurring fair value measurements, assets:
Loans individually evaluated for credit loss, net		$	0		$	0		$	212		$	212
Foreclosed assets held for sale			0			0			402			402
Total nonrecurring fair value measurements, assets		$	0		$	0		$	614		$	614


		December 31, 2024
		Quoted Prices			Other Observable			Unobservable
		in Active Markets			Inputs			Inputs			Total
(In Thousands)		(Level 1)			(Level 2)			(Level 3)			Fair Value
Recurring fair value measurements, assets:
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of the U.S. Treasury		$	7,118		$	0		$	0		$	7,118
Obligations of U.S. Government agencies			0			9,025			0			9,025
Bank holding company debt securities			0			25,246			0			25,246
Obligations of states and political subdivisions:
Tax-exempt			0			101,302			0			101,302
Taxable			0			42,506			0			42,506
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities			0			94,414			0			94,414
Residential collateralized mortgage obligations			0			49,894			0			49,894
Commercial mortgage-backed securities			0			64,501			0			64,501
Private label commercial mortgage-backed securities			0			8,374			0			8,374
Total available-for-sale debt securities			7,118			395,262			0			402,380
Marketable equity security			863			0			0			863
Servicing rights			0			0			2,782			2,782
RPA Out			0			2			0			2
Interest rate swap agreements, assets			0			2,385			0			2,385
Total recurring fair value measurements, assets		$	7,981		$	397,649		$	2,782		$	408,412

Recurring fair value measurements, liabilities,
RPA In		$	0		$	2		$	0		$	2
Interest rate swap agreements, liabilities			0			2,385			0			2,385
Total recurring fair value measurements, liabilities		$	0		$	2,387		$	0		$	2,387

Nonrecurring fair value measurements, assets:
Loans individually evaluated for credit loss, net		$	0		$	0		$	136		$	136
Foreclosed assets held for sale			0			0			181			181
Total nonrecurring fair value measurements, assets		$	0		$	0		$	317		$	317

Schedule of reconciliation of level 3 activity


(In Thousands)		Three Months Ended						Nine Months Ended
		September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Servicing rights balance, beginning of period		$	2,819		$	2,720		$	2,782		$	2,659
Originations of servicing rights			119			91			257			195
Unrealized loss included in earnings			(99)			(129)			(200)			(172)
Servicing rights balance, end of period		$	2,839		$	2,682		$	2,839		$	2,682

Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value


(In Thousands)		Fair Value		September 30, 2025						December 31, 2024
		Hierarchy		Carrying			Fair			Carrying			Fair
		Level		Amount			Value			Amount			Value
Financial assets:
Cash and cash equivalents		Level 1		$	121,490		$	121,490		$	123,574		$	123,574
Certificates of deposit		Level 2			1,600			1,571			2,600			2,513
Restricted equity securities (included in other assets)		N/A			20,927			20,927			21,567			N/A
Loans, net		Level 3			1,921,633			1,856,861			1,875,813			1,789,044
Accrued interest receivable		Level 2			9,656			9,656			8,735			8,735

Financial liabilities:
Deposits with no stated maturity		Level 2			1,661,238			1,661,238			1,609,552			1,609,552
Time deposits		Level 2			504,497			502,416			484,357			484,900
Short-term borrowings		Level 2			1,489			1,489			2,488			2,488
Long-term borrowings - FHLB advances		Level 2			132,894			134,251			165,451			165,616
Senior notes, net		Level 2			14,952			14,538			14,899			13,579
Subordinated debt, net		Level 2			24,919			22,986			24,831			21,051
Accrued interest payable		Level 2			1,309			1,309			1,771			1,771

Recurring fair value measurements

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of inputs and valuation techniques

Fair Value at

9/30/2025

Valuation

Unobservable

Method or Value As of

Asset

(In Thousands)

Technique

Input(s)

9/30/2025

Servicing rights

$

2,839

Discounted cash flow

Discount rate

13.00

%

Rate used through modeling period

Loan prepayment speeds

123.00

%

Weighted-average PSA

Fair Value at

12/31/2024

Valuation

Unobservable

Method or Value As of

Asset

(In Thousands)

Technique

Input(s)

12/31/2024

Servicing rights

$

2,782

Discounted cash flow

Discount rate

13.00

%

Rate used through modeling period

Loan prepayment speeds

116.00

%

Weighted-average PSA

Nonrecurring fair value measurements

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of inputs and valuation techniques


(Dollars In Thousands)															Range (Weighted
					Valuation										Average)
		Balance at			Allowance at			Fair Value at			Valuation		Unobservable		Discount at
Asset		9/30/2025			9/30/2025			9/30/2025			Technique		Inputs		9/30/2025

Loans individually evaluated for credit loss:
Commercial real estate - nonowner occupied		$	263		$	51		$	212		Sales comparison		Discount to appraised value		45% (45)	%
Total loans individually evaluated for credit loss		$	263		$	51		$	212
Foreclosed assets held for sale - real estate:
Residential (1-4 family)		$	246		$	0		$	246		Sales comparison		Discount to appraised value		1%-84% (25)	%
Commercial real estate			156			0			156		Sales comparison		Discount to appraised value		18%-77% (34)	%
Total foreclosed assets held for sale		$	402		$	0		$	402


(Dollars In Thousands)															Range (Weighted
					Valuation										Average)
		Balance at			Allowance at			Fair Value at			Valuation		Unobservable		Discount at
Asset		12/31/2024			12/31/2024			12/31/2024			Technique		Inputs		12/31/2024

Loans individually evaluated for credit loss:
Commercial real estate - owner occupied		$	258		$	122		$	136		Sales comparison & SBA guaranty		Discount to appraised value		95% (95)	%
Total loans individually evaluated for credit loss		$	258		$	122		$	136
Foreclosed assets held for sale - real estate:
Residential (1-4 family)		$	25		$	0		$	25		Sales comparison		Discount to appraised value		62% (62)	%
Commercial real estate			156			0			156		Sales comparison		Discount to appraised value		18%-77% (34)	%
Total foreclosed assets held for sale		$	181		$	0		$	181

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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