Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value, Assets Measured on Recurring Basis

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024.


			June 30, 2025 Fair Value Measurements Using
(amounts 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)
U.S. Government-sponsored agencies	$	72,700	$	—	$	72,700	$	—
Municipal securities	61,423		—		61,423		—
Agency mortgage-backed securities - residential	358,071		—		358,071		—
Agency mortgage-backed securities - commercial	61,474		—		61,474		—
Private label mortgage-backed securities - residential	39,423		—		39,423		—
Asset-backed securities	19,488		—		19,488		—
Corporate securities	32,078		—		32,078		—

Total available-for-sale securities	$	644,657	$	—	$	644,657	$	—

Servicing asset	16,736		—		—		16,736


Interest rate swap agreements - assets (back-to-back)	273		—		273		—
Interest rate swap agreements - liabilities (back-to-back)	(273)		—		(273)		—


			December 31, 2024 Fair Value Measurements Using
(amounts 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)
U.S. Government-sponsored agencies	$	82,816	$	—	$	82,816	$	—
Municipal securities	63,654		—		63,654		—
Agency mortgage-backed securities - residential	269,641		—		269,641		—
Agency mortgage-backed securities - commercial	63,331		—		63,331		—
Private label mortgage-backed securities - residential	45,821		—		45,821		—
Asset-backed securities	23,821		—		23,821		—
Corporate securities	38,271		—		38,271		—

Total available-for-sale securities	$	587,355	$	—	$	587,355	$	—

Servicing asset	16,389		—		—		16,389


Interest rate swap agreements - assets (back-to-back)	200		—		200		—
Interest rate swap agreements - liabilities (back-to-back)	(200)		—		(200)		—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2025 and 2024.


	Three Months Ended
(amounts in thousands)	Servicing Asset
Balance as of April 1, 2025	$	17,445
Total realized gains
Additions:
Originated	444
Subtractions:
Paydowns	(847)
Change in fair value	(306)

Balance, June 30, 2025	$	16,736

Balance as of April 1, 2024	$	11,760
Total realized gains
Additions:
Originated	2,078
Subtractions:
Paydowns	(797)
Change in fair value	(32)
Balance, June 30, 2024	$	13,009



	Six Months Ended
(amounts in thousands)	Servicing Asset
Balance, January 1, 2025	$	16,389
Total realized gains
Additions:
Originated	2,681
Subtractions:
Paydowns	(1,811)
Change in fair value	(523)

Balance, June 30, 2025	$	16,736

Balance, January 1, 2024	$	10,567
Total realized gains
Additions:
Originated	3,705
Subtractions:
Paydowns	(1,408)
Change in fair value	145
Balance, June 30, 2024	$	13,009

Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at June 30, 2025 and December 31, 2024.


			June 30, 2025
(amounts in thousands)			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	318	$	—	$	—	$	318


			December 31, 2024
(amounts in thousands)			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	4,296	$	—	$	—	$	4,296

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

(dollars in thousands)

Fair Value at
June 30, 2025

Valuation
Technique

Significant Unobservable
Inputs

Range

Weighted-Average Range

Collateral dependent loans

318

Fair value of collateral

Discount for type of property and current market conditions

0%- 40%

31.6%

Servicing asset

16,736

Discounted cash flow

Prepayment speeds

Discount rate

0% - 25%

14%

12.1%

14%

(dollars in thousands)

Fair Value at
December 31, 2024

Valuation
Technique

Significant Unobservable
Inputs

Range

Weighted-Average Range

Collateral dependent loans

4,296

Fair value of collateral

Discount for type of property and current market conditions

0% - 75%

24.2%

Servicing asset

16,389

Discounted cash flow

Prepayment speeds

Discount rate

0% - 25%

14%

11.7%

14%

Fair Value, by Balance Sheet Grouping

The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024.


	June 30, 2025 Fair Value Measurements Using
(amounts in thousands)	Carrying Amount		Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	446,361	$	446,361	$	446,361	$	—	$	—

Securities held-to-maturity, net	271,737		254,667		—		254,667		—
Loans held-for-sale	126,533		136,645		—		136,645		—
Net loans	4,316,045		4,172,679		—		—		4,172,679
Accrued interest receivable	31,227		31,227		31,227		—		—
Federal Home Loan Bank of Indianapolis stock	28,350		28,350		—		28,350		—
Deposits	5,298,789		5,310,415		2,835,151		—		2,475,264
Advances from Federal Home Loan Bank	264,500		266,302		—		266,302		—
Subordinated debt	105,307		104,244		37,059		67,185		—
Accrued interest payable	1,614		1,614		1,614		—		—


	December 31, 2024 Fair Value Measurements Using
(amounts in thousands)	Carrying Amount		Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	466,410	$	466,410	$	466,410	$	—	$	—

Securities held-to-maturity, net	249,796		228,851		—		228,851		—
Loans held-for-sale	54,695		58,510		—		58,510		—
Net loans	4,125,877		3,935,009		—		—		3,935,009
Accrued interest receivable	28,180		28,180		28,180		—		—
Federal Home Loan Bank of Indianapolis stock	28,350		28,350		—		28,350		—
Deposits	4,933,206		4,943,961		2,236,724		—		2,707,237
Advances from Federal Home Loan Bank	295,000		291,208		—		291,208		—
Subordinated debt	105,150		103,062		37,059		66,003		—
Accrued interest payable	2,495		2,495		2,495		—		—

- 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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