FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of carrying amount and estimated fair value of financial instruments


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Financial assets:
Cash and due from financial institutions	$	77,774	$	77,774	$	77,774	$	—	$	—
Interest-bearing deposits in other financial institutions	303,167		303,167		303,167		—		—
Investment securities	1,334,588		1,244,339		59,498		1,177,994		6,847
Loans held for sale	5,662		5,662		—		5,662		—
Loans	5,332,852		4,916,765		—		—		4,916,765

Accrued interest receivable	23,378		23,378		462		4,607		18,309

Financial liabilities:
Deposits:
Noninterest-bearing deposits	1,888,937		1,888,937		1,888,937		—		—
Interest-bearing demand and savings deposits	3,667,889		3,667,889		3,667,889		—		—
Time deposits	1,087,185		1,079,275		—		—		1,079,275

Long-term debt	156,345		153,760		—		—		153,760
Accrued interest payable	10,051		10,051		113		—		9,938


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,219,537	$	—	$	1,167	$	—	$	1,167	$	—
Standby letters of credit and financial guarantees written	2,702		—		41		—		41		—

Derivatives:
Back-to-back swap agreements:
Assets	50,202		3,840		3,840		—		—		3,840
Liabilities	(50,202)		(3,840)		(3,840)		—		—		(3,840)
Interest rate lock commitments	469		(4)		(4)		—		(4)		—
Forward sale commitments	4,909		46		46		—		46		—
Risk participation agreements	35,183		—		—		—		—		—
Interest rate swap agreements	115,545		8,382		8,382		—		8,382		—


					Fair Value Measurement Using
(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2023
Financial assets:
Cash and due from financial institutions	$	116,181	$	116,181	$	116,181	$	—	$	—
Interest-bearing deposits in other financial institutions	406,256		406,256		406,256		—		—
Investment securities	1,279,548		1,212,388		—		1,205,238		7,150
Loans held for sale	1,778		1,778		—		1,778		—
Loans	5,438,982		5,089,292		—		—		5,089,292

Accrued interest receivable	21,511		21,511		342		4,043		17,126

Financial liabilities:
Deposits:
Noninterest-bearing deposits	1,913,379		1,913,379		1,913,379		—		—
Interest-bearing demand and savings deposits	3,538,922		3,538,922		3,538,922		—		—
Time deposits	1,395,291		1,385,473		—		—		1,385,473

Long-term debt	156,102		153,073		—		—		153,073
Accrued interest payable	18,948		18,948		85		—		18,863


							Fair Value Measurement Using
(Dollars in thousands)	Notional Amount		Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2023
Off-balance sheet financial instruments:
Commitments to extend credit	$	1,275,331	$	—	$	1,210	$	—	$	1,210	$	—
Standby letters of credit and financial guarantees written	3,301		—		50		—		50		—

Derivatives:
Back-to-back swap agreements:
Assets	51,059		3,547		3,547		—		—		3,547
Liabilities	(51,059)		(3,547)		(3,547)		—		—		(3,547)
Interest rate lock commitments	1,807		(34)		(34)		—		(34)		—

Risk participation agreements	36,022		—		—		—		—		—
Interest rate swap agreements	115,545		6,440		6,440		—		—		6,440

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following tables below present the fair value of assets and liabilities measured on a recurring basis:


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Available-for-sale investment securities:
Debt securities:
States and political subdivisions	$	116,833	$	—	$	110,668	$	6,165
Corporate securities	—		—		—		—
U.S. Treasury obligations and direct obligations of U.S Government agencies	81,200		59,498		21,702		—
Collateralized loan obligations	31,140				31,140		—
Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	414,471		—		414,471		—
Residential - Non-government agencies	16,926		—		16,244		682
Commercial - U.S. Government-sponsored enterprises	67,161		—		67,161		—
Commercial - Non-government agencies	9,927		—		9,927		—

Total investment securities	737,658		59,498		671,313		6,847

Derivatives:
Interest rate lock commitments	(4)		—		(4)		—
Forward sale commitments	46		—		46		—
Interest rate swap agreements	8,382		—		8,382		—


Total derivatives	8,424		—		8,424		—
Total	$	746,082	$	59,498	$	679,737	$	6,847


			Fair Value at Reporting Date Using
(Dollars in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2023
Available-for-sale investment securities:
Debt securities:
States and political subdivisions	$	126,635	$	—	$	120,199	$	6,436
Corporate securities	31,414		—		31,414		—
U.S. Treasury obligations and direct obligations of U.S Government agencies	26,197		—		26,197		—

Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	378,386		—		378,386		—
Residential - Non-government agencies	18,708		—		17,994		714
Commercial - U.S. Government-sponsored enterprises	50,914		—		50,914		—
Commercial - Non-government agencies	14,956		—		14,956		—

Total investment securities	647,210		—		640,060		7,150

Derivatives:
Interest rate lock commitments	(34)		—		(34)		—

Interest rate swap agreements	6,440		—		—		6,440


Total derivatives	6,406		—		(34)		6,440
Total	$	653,616	$	—	$	640,026	$	13,590

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the

periods presented:


	Available-For-Sale Debt Securities:
(Dollars in thousands)	States and Political Subdivisions		Residential - Non-Government Agencies		Total
Balance as of December 31, 2022	$	6,584	$	684	$	7,268
Principal payments received	(232)		(23)		(255)

Unrealized net gain included in other comprehensive income	84		53		137
Balance as of December 31, 2023	6,436		714		7,150
Principal payments received	(241)		(24)		(265)

Unrealized net (loss) gain included in other comprehensive income	(30)		(8)		(38)
Balance as of December 31, 2024	$	6,165	$	682	$	6,847

- Definition

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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