v3.25.2
FAIR VALUE (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of fair value assets and liabilities measured on recurring basis
The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):
June 30, 2025Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial Assets
Mortgage loans held for sale$— $24,151 $— $24,151 
Loans held at fair value$— $— $5,099 $5,099 
Equity securities$641 $122 $— $763 
Guarantee asset$— $— $244 $244 
IRLC, net$— $734 $— $734 
Equity warrants$— $— $765 $765 
Swap derivative assets$— $1,048 $— $1,048 
Financial Liabilities
Forward commitments and FSC$— $262 $— $262 
Swap derivative liabilities$— $1,037 $— $1,037 
December 31, 2024Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial Assets
Mortgage loans held for sale$— $25,455 $— $25,455 
Loans held for sale$— $251 $— $251 
Loans held at fair value$— $— $7,283 $7,283 
Forward commitments and FSC$— $225 $— $225 
Equity securities$630 $122 $— $752 
Guarantee asset$— $— $235 $235 
IRLC, net$— $358 $— $358 
Equity warrants$— $— $765 $765 
Swap derivative asset$— $1,060 $— $1,060 
Financial Liabilities
Forward commitments and FSC$— $13 $— $13 
Swap derivative liabilities$— $956 $— $956 
Schedule of loans measured at fair value under fair value option
The following provide more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted:
June 30, 2025
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)
Fair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		Difference
Mortgage loans held for sale$24,151 $23,629 $522 $— $— $— $— $— $— 
Loans held for investment5,099 5,234 (135)10 10 — 10 10 — 
$29,250 $28,863 $387 $10 $10 $— $10 $10 $— 
December 31, 2024
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)
Fair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		Difference
Mortgage loans held for sale$25,455 $25,217 $238 $— $— $— $— $— $— 
Loans held for sale251 594 (343)251 594 (343)251 594 (343)
Loans held for investment7,283 7,507 (224)47 52 (5)47 52 (5)
$32,989 $33,318 $(329)$298 $646 $(348)$298 $646 $(348)
Schedule of changes in fair value of loans
The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted:
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in thousands)
2025202420252024
Mortgage loans held for sale$348 $283 $255 $362 
Loans held for sale— — 222 — 
Loans held for investment32 50 89 100 
$380 $333 $566 $462 
Summary of assets and liability for level 3 instruments measured at fair value on recurring basis
The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands):
Three Months Ended June 30, 2025Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$6,112 $261 $765 
Originations— 9 — 
Gains/(losses) in net income, net32 (4)— 
Net charge-offs(6)— — 
Settlements(1,039)(22)— 
Ending balance$5,099 $244 $765 
Three Months Ended June 30, 2024Loans Held at Fair ValueGuarantee Asset Equity Warrants
Beginning balance$11,922 $199 $795 
Originations— 34 — 
Gains/(losses) in net income, net50 6 — 
Net charge-offs(365)— — 
Settlements(1,417)(11)— 
Ending balance$10,190 $228 $795 
Six Months Ended June 30, 2025Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$7,283 $235 $765 
Originations— 20 — 
Gains/(losses) in net income, net89 32 — 
Net charge-offs(57)— — 
Settlements(2,216)(43)— 
Ending balance$5,099 $244 $765 
Six Months Ended June 30, 2024Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$13,726 $189 $795 
Originations— 47 — 
Gains/(losses) in net income, net100 11 — 
Net charge-offs(717)— — 
Settlements(2,919)(19)— 
Ending balance$10,190 $228 $795 
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs
The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted:
Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2025
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$5,099 Discounted cash flowDiscount rate
7% to 8% (7%)
Guarantee asset244 Discounted cash flowDiscount rate
Prepayment rate
6% (6%)
12% (12%)
Equity warrants765 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
21.3% to 63.8% (30.2%)
4.05% to 4.16% (4.14%)
2 years
Nonrecurring fair value
OREO:
1-4 Family Residential4,385 Appraisal valueCommission, cost to sell, closing costs
5% (5 %)
Collateral dependent loans, net of ACL:
Commercial and Industrial93 Sales comparison, Market approach - guideline transaction methodLoss given default
47% (47%)
Commercial and Industrial, 1-4 Family Residential1,212 
Appraisal value
Commission, cost to sell
7% (7%)
Commercial and Industrial9,734 
Appraisal value
Commission
Receiver costs
10% to 20% (18%)
2% (2%)
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2024
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$7,283 Discounted cash flowDiscount rate
7% to 8% (7%)
Guarantee asset235 Discounted cash flowDiscount rate
Prepayment rate
5% (5%)
15% (15%)
Equity warrants765 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
21.3% to 63.8% (30.2%)
4.05% to 4.16% (4.14%)
2 years
Nonrecurring fair value
OREO:
1-4 Family Residential10,314 Appraisal valueCommission, cost to sell, closing costs
5% (5%)
Commercial and Industrial25,615 Appraisal valueCommission, cost to sell, closing costs
6% (6%)
Collateral dependent loans, net of ACL:
Commercial and Industrial784 Sales Comparison-Market Value ApproachMarket rate adjustments
11% (11%)
Commercial and Industrial36 Sales comparison, Market approach - guideline transaction methodLoss given default
80% (80%)
Summary of carrying amounts and estimated fair values of financial instruments
The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands):
Carrying
Amount		Fair Value Measurements Using:
June 30, 2025Level 1Level 2Level 3
Assets:
Cash and cash equivalents$232,314 $232,314 $— $— 
Held-to-maturity securities, net of ACL99,825 247 85,436 8,296 
Loans, net(1)
2,516,003 — — 2,454,131 
Accrued interest receivable10,783 10,783 — — 
Liabilities:    
Term deposits(2)
397,006 352,536 — 44,862 
Non-term deposits2,132,123 2,132,123 — — 
Borrowings:    
FHLB borrowings – fixed rate112,131 112,131 — — 
FHLB borrowings – floating rate50,000 — 50,000 — 
Federal Reserve borrowings – fixed rate1,285 1,285 — — 
Subordinated notes – fixed-to-floating rate44,673 — — 42,401 
Accrued interest payable1,406 1,406 — — 
Carrying
Amount		Fair Value Measurements Using:
December 31, 2024Level 1Level 2Level 3
Assets:
Cash and cash equivalents$236,041 $236,041 $— $— 
Held-to-maturity securities, net of ACL75,724 242 60,044 7,875 
Loans, net(1)
2,399,952 — — 2,325,081 
Accrued interest receivable10,364 10,364 — — 
Liabilities:
Term deposits(2)
471,415 429,008 — 42,764 
Non-term deposits2,042,794 2,042,794 — — 
Borrowings:
FHLB borrowings – fixed rate5,000 5,000 — — 
FHLB borrowings – floating rate50,000 — 50,000 — 
Federal Reserve borrowings – fixed rate2,038 2,038 — — 
Subordinated notes – fixed-to-floating rate52,565 — — 48,451 
Accrued interest payable1,995 1,995 — — 
______________________________________
(1) Excludes loans accounted for under the fair value option of $5.1 million and $7.3 million as of June 30, 2025 and December 31, 2024, respectively, as these are carried at fair value.
(2) Term deposits due within one year totaling $352.5 million and $429.0 million as of June 30, 2025 and December 31, 2024, respectively, are classified under Level 1 fair value measurement.