FAIR VALUE (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Fair Value Disclosures |
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| Assets and Liabilities Measured at Fair Value on Recurring Basis |
| | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | June 30, 2025 Using: | | | | | | Quoted Prices in | | Significant | | | | | | | | | Active Markets | | Other | | Significant | | | | | | for Identical | | Observable | | Unobservable | | Total | | | Assets | | Inputs | | Inputs | | Fair | (in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | Financial assets: | | | | | | | | | | | | | Available-for-sale debt securities: | | | | | | | | | | | | | U.S. Treasury securities and U.S. Government agencies | | $ | 54,593 | | $ | 251,830 | | $ | — | | $ | 306,423 | Private label mortgage-backed security | | | — | | | — | | | 1,489 | | | 1,489 | Mortgage-backed securities - residential | | | — | | | 374,598 | | | — | | | 374,598 | Collateralized mortgage obligations | | | — | | | 18,130 | | | — | | | 18,130 | Corporate bonds | | | — | | | 1,001 | | | — | | | 1,001 | Trust preferred security | | | — | | | — | | | 4,075 | | | 4,075 | Total available-for-sale debt securities | | $ | 54,593 | | $ | 645,559 | | $ | 5,564 | | $ | 705,716 | | | | | | | | | | | | | | Equity securities with readily determinable fair value: | | | | | | | | | | | | | Freddie Mac preferred stock | | $ | — | | $ | 756 | | $ | — | | $ | 756 | Total equity securities with readily determinable fair value | | $ | — | | $ | 756 | | $ | — | | $ | 756 | | | | | | | | | | | | | | Mortgage loans held for sale | | $ | — | | $ | 8,850 | | $ | — | | $ | 8,850 | Consumer loans held for sale | | | — | | | — | | | 8,312 | | | 8,312 | Rate lock commitments | | | — | | | 701 | | | — | | | 701 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | — | | | 6,850 | | | — | | | 6,850 | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | Mandatory forward contracts | | $ | — | | $ | 132 | | $ | — | | $ | 132 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | — | | | 6,850 | | | — | | | 6,850 | Interest rate swap agreements on FHLB advances | | | — | | | 2,911 | | | — | | | 2,911 |
| | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | December 31, 2024 Using: | | | | | | Quoted Prices in | | Significant | | | | | | | | | Active Markets | | Other | | Significant | | | | | | for Identical | | Observable | | Unobservable | | Total | | | Assets | | Inputs | | Inputs | | Fair | (in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | Financial assets: | | | | | | | | | | | | | Available-for-sale debt securities: | | | | | | | | | | | | | U.S. Treasury securities and U.S. Government agencies | | $ | 84,775 | | $ | 304,311 | | $ | — | | $ | 389,086 | Private label mortgage-backed security | | | — | | | — | | | 1,550 | | | 1,550 | Mortgage-backed securities - residential | | | — | | | 168,233 | | | — | | | 168,233 | Collateralized mortgage obligations | | | — | | | 19,243 | | | — | | | 19,243 | Corporate bonds | | | — | | | 2,009 | | | — | | | 2,009 | Trust preferred security | | | — | | | — | | | 4,034 | | | 4,034 | Total available-for-sale debt securities | | $ | 84,775 | | $ | 493,796 | | $ | 5,584 | | $ | 584,155 | | | | | | | | | | | | | | Equity securities with readily determinable fair value: | | | | | | | | | | | | | Freddie Mac preferred stock | | $ | — | | $ | 693 | | $ | — | | $ | 693 | Total equity securities with readily determinable fair value | | $ | — | | $ | 693 | | $ | — | | $ | 693 | | | | | | | | | | | | | | Mortgage loans held for sale | | $ | — | | $ | 8,312 | | $ | — | | $ | 8,312 | Consumer loans held for sale | | | — | | | — | | | 5,443 | | | 5,443 | Rate lock commitments | | | — | | | 223 | | | — | | | 223 | Mandatory forward contracts | | | — | | | 70 | | | — | | | 70 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | — | | | 6,588 | | | — | | | 6,588 | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | Interest rate swap agreements - Bank clients and institutional swap dealer | | $ | — | | $ | 6,588 | | $ | — | | $ | 6,588 | Interest rate swap agreements on FHLB advances | | | — | | | 647 | | | — | | | 647 |
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| Assets Measured at Fair Value on a Non-Recurring Basis |
| | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | June 30, 2025 Using: | | | | | | Quoted Prices in | | Significant | | | | | | | | | Active Markets | | Other | | Significant | | | | | | for Identical | | Observable | | Unobservable | | Total | | | Assets | | Inputs | | Inputs | | Fair | (in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | | | | | | | | | | | | | | Collateral-dependent loans: | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | Owner-occupied | | $ | — | | $ | — | | $ | 360 | | $ | 360 | Total collateral-dependent loans | | $ | — | | $ | — | | $ | 360 | | $ | 360 | | | | | | | | | | | | | | Other real estate owned: | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | Nonowner-occupied | | $ | — | | $ | — | | $ | 1,054 | | $ | 1,054 | Total other real estate owned | | $ | — | | $ | — | | $ | 1,054 | | $ | 1,054 |
| | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | December 31, 2024 Using: | | | | | | Quoted Prices in | | Significant | | | | | | | | | Active Markets | | Other | | Significant | | | | | | for Identical | | Observable | | Unobservable | | Total | | | Assets | | Inputs | | Inputs | | Fair | (in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | | | | | | | | | | | | | | Collateral-dependent loans: | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | Owner-occupied | | $ | — | | $ | — | | $ | 201 | | $ | 201 | Total collateral-dependent loans | | $ | — | | $ | — | | $ | 201 | | $ | 201 | | | | | | | | | | | | | | Other real estate owned: | | | | | | | | | | | | | Commercial real estate | | | | | | | | | | | | | Nonowner-occupied | | $ | — | | $ | — | | $ | 1,160 | | $ | 1,160 | Total other real estate owned | | $ | — | | $ | — | | $ | 1,160 | | $ | 1,160 |
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| Other Real Estate Owned |
| | | | | | | | | | | | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | | | | | | | | | Other real estate owned carried at fair value | | $ | 1,054 | | $ | 1,160 | | Total carrying value of other real estate owned | | $ | 1,054 | | $ | 1,160 | |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | Other real estate owned write-downs during the period | | $ | 53 | | $ | 52 | | $ | 106 | | $ | 105 | |
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| Carrying amount and estimated fair values of financial instruments |
| | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | June 30, 2025: | | | | | | | | | | | | | | | Total | | | Carrying | | | | | | | | | | | Fair | (in thousands) | | Value | | Level 1 | | Level 2 | | Level 3 | | Value | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 484,808 | | $ | 484,808 | | $ | — | | $ | — | | $ | 484,808 | Available-for-sale debt securities | | | 705,716 | | | 54,593 | | | 645,559 | | | 5,564 | | | 705,716 | Held-to-maturity debt securities | | | 5,434 | | | — | | | 5,408 | | | — | | | 5,408 | Equity securities with readily determinable fair values | | | 756 | | | — | | | 756 | | | — | | | 756 | Mortgage loans held for sale, at fair value | | | 8,850 | | | — | | | 8,850 | | | — | | | 8,850 | Consumer loans held for sale, at fair value | | | 8,312 | | | — | | | — | | | 8,312 | | | 8,312 | Consumer loans held for sale, at the lower of cost or fair value | | | 19,640 | | | — | | | — | | | 19,748 | | | 19,748 | Loans, net | | | 5,291,260 | | | — | | | — | | | 5,168,712 | | | 5,168,712 | Federal Home Loan Bank stock | | | 24,568 | | | — | | | — | | | — | | | NA | Accrued interest receivable | | | 20,779 | | | — | | | 20,779 | | | — | | | 20,779 | Mortgage servicing rights | | | 6,841 | | | — | | | 17,157 | | | — | | | 17,157 | Rate lock commitments | | | 701 | | | — | | | 701 | | | — | | | 701 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | 6,850 | | | — | | | 6,850 | | | — | | | 6,850 | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | Noninterest-bearing deposits | | $ | 1,223,016 | | $ | — | | $ | 1,223,016 | | $ | — | | $ | 1,223,016 | Transaction deposits | | | 3,330,852 | | | — | | | 3,330,852 | | | — | | | 3,330,852 | Time deposits | | | 763,371 | | | — | | | 751,820 | | | — | | | 751,820 | Securities sold under agreements to repurchase and other short-term borrowings | | | 72,103 | | | — | | | 72,103 | | | — | | | 72,103 | Federal Home Loan Bank advances | | | 370,000 | | | — | | | 374,748 | | | — | | | 374,748 | Accrued interest payable | | | 4,477 | | | — | | | 4,477 | | | — | | | 4,477 | Mandatory forward contracts | | | 132 | | | — | | | 132 | | | — | | | 132 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | 6,850 | | | — | | | 6,850 | | | — | | | 6,850 | Interest rate swap agreements on FHLB advances | | | 2,911 | | | — | | | 2,911 | | | — | | | 2,911 |
| | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at | | | | | | December 31, 2024: | | | | | | | | | | | | | | | Total | | | Carrying | | | | | | | | | | | Fair | (in thousands) | | Value | | Level 1 | | Level 2 | | Level 3 | | Value | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 432,151 | | $ | 432,151 | | $ | — | | $ | — | | $ | 432,151 | Available-for-sale debt securities | | | 584,155 | | | 84,775 | | | 493,796 | | | 5,584 | | | 584,155 | Held-to-maturity debt securities | | | 10,778 | | | — | | | 10,735 | | | — | | | 10,735 | Equity securities with readily determinable fair values | | | 693 | | | — | | | 693 | | | — | | | 693 | Mortgage loans held for sale, at fair value | | | 8,312 | | | — | | | 8,312 | | | — | | | 8,312 | Consumer loans held for sale, at fair value | | | 5,443 | | | — | | | — | | | 5,443 | | | 5,443 | Consumer loans held for sale, at the lower of cost or fair value | | | 18,632 | | | — | | | — | | | 18,714 | | | 18,714 | Loans, net | | | 5,347,488 | | | — | | | — | | | 5,209,571 | | | 5,209,571 | Federal Home Loan Bank stock | | | 24,478 | | | — | | | — | | | — | | | NA | Accrued interest receivable | | | 20,128 | | | — | | | 20,128 | | | — | | | 20,128 | Mortgage servicing rights | | | 6,975 | | | — | | | 17,159 | | | — | | | 17,159 | Rate lock commitments | | | 223 | | | — | | | 223 | | | — | | | 223 | Mandatory forward contracts | | | 70 | | | — | | | 70 | | | — | | | 70 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | 6,588 | | | — | | | 6,588 | | | — | | | 6,588 | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | Noninterest-bearing deposits | | $ | 1,207,764 | | $ | — | | $ | 1,207,764 | | $ | — | | $ | 1,207,764 | Transaction deposits | | | 3,231,738 | | | — | | | 3,231,738 | | | — | | | 3,231,738 | Time deposits | | | 771,044 | | | — | | | 773,415 | | | — | | | 773,415 | Deposits of discontinued operations | | | — | | | — | | | — | | | — | | | — | Securities sold under agreements to repurchase and other short-term borrowings | | | 103,318 | | | — | | | 103,318 | | | — | | | 103,318 | Federal Home Loan Bank advances | | | 395,000 | | | — | | | 395,814 | | | — | | | 395,814 | Accrued interest payable | | | 5,153 | | | — | | | 5,153 | | | — | | | 5,153 | Interest rate swap agreements - Bank clients and institutional swap dealer | | | 6,588 | | | — | | | 6,588 | | | — | | | 6,588 | Interest rate swap agreements on FHLB advances | | | 647 | | | — | | | 647 | | | — | | | 647 |
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| Nonrecurring basis |
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| Fair Value Disclosures |
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| Fair value inputs quantitative information |
| | | | | | | | | | | | | | | | | | | Range | | | Fair | | Valuation | | Unobservable | | (Weighted | June 30, 2025 (dollars in thousands) | | Value | | Technique | | Inputs | | Average) | | | | | | | | | | | Collateral-dependent loans - commercial real estate owner-occupied | | $ | 360 | | Appraisal | | Appraisal discounts | | 13% (13%) | | | | | | | | | | | Other real estate owned - commercial real estate nonowner-occupied | | $ | 1,054 | | Appraisal | | Appraisal discounts | | 61% (61%) |
| | | | | | | | | | | | | | | | | | | Range | | | Fair | | Valuation | | Unobservable | | (Weighted | December 31, 2024 (dollars in thousands) | | Value | | Technique | | Inputs | | Average) | | | | | | | | | | | Collateral-dependent loans - residential real estate owner-occupied | | $ | 201 | | Appraisal | | Appraisal discounts | | 3% (3%) | | | | | | | | | | | Other real estate owned - commercial real estate | | $ | 1,160 | | Appraisal | | Appraisal discounts | | 57% (57%) |
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| Private label mortgage backed security |
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| Fair Value Disclosures |
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| Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs |
| | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | (dollars in thousands) | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | Balance, beginning of period | $ | 1,516 | | $ | 1,772 | | $ | 1,550 | | $ | 1,773 | Total gains or losses included in earnings: | | | | | | | | | | | | Net change in unrealized gain (loss) | | — | | | (8) | | | 12 | | | 49 | Principal paydowns | | (27) | | | (48) | | | (73) | | | (106) | Balance, end of period | $ | 1,489 | | $ | 1,716 | | $ | 1,489 | | $ | 1,716 |
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| Private label mortgage backed security | Recurring basis |
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| Fair Value Disclosures |
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| Fair value inputs quantitative information |
| | | | | | | | | | | | | | | | | | | | | June 30, 2025 (dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (1) | | | | | | | | | | | | | Private label mortgage-backed security | | $ | 1,489 | | Discounted cash flow | | (1) Constant prepayment rate | | 2.3% - 4.4% | | | | | | | | | | | | | | | | | | | | (2) Probability of default | | 0.5% - 9.3% | | | | | | | | | | | | | | | | | | | | (3) Loss severity | | 25% | |
(1) The bank owns one private label mortgage-back security; therefore, the range presented is equivalent to the weighted average range. | | | | | | | | | | | | | Fair | | Valuation | | | | | | December 31, 2024 (dollars in thousands) | | Value | | Technique | | Unobservable Inputs | | Range (1) | | | | | | | | | | | | | Private label mortgage-backed security | | $ | 1,550 | | Discounted cash flow | | (1) Constant prepayment rate | | 1.5% - 2.6% | | | | | | | | | | | | | | | | | | | | (2) Probability of default | | 0.5% - 9.1% | | | | | | | | | | | | | | | | | | | | (3) Loss severity | | 25% | |
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| Trust preferred security |
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| Fair Value Disclosures |
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| Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | (dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | Balance, beginning of period | | $ | 4,073 | | $ | 4,027 | | $ | 4,034 | | $ | 4,118 | | Total gains or losses included in earnings: | | | | | | | | | | | | | | Discount accretion | | | 16 | | | 15 | | | 32 | | | 30 | | Net change in unrealized gain (loss) | | | (14) | | | 51 | | | 9 | | | (55) | | Balance, end of period | | $ | 4,075 | | $ | 4,093 | | $ | 4,075 | | $ | 4,093 | |
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| Mortgage loans held for sale |
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| Fair Value Disclosures |
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| Schedule of aggregate fair value, contractual balance and unrealized gain |
| | | | | | | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | | | | | | | | | Aggregate fair value | | $ | 8,850 | | $ | 8,312 | | Contractual balance | | | 8,674 | | | 8,117 | | Unrealized gain | | | 176 | | | 195 | |
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| Schedule of gains and losses from changes in fair value included in earnings |
| | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | | June 30, | | June 30, | | | (dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | Interest income | | $ | 221 | | $ | 191 | | $ | 337 | | $ | 277 | | | Change in fair value | | | 26 | | | (38) | | | (19) | | | 107 | | | Total included in earnings | | $ | 247 | | $ | 153 | | $ | 318 | | $ | 384 | | |
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| Consumer loans held for sale |
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| Fair Value Disclosures |
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| Schedule of aggregate fair value, contractual balance and unrealized gain |
| | | | | | | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | | | | | | | | | Aggregate fair value | | $ | 8,312 | | $ | 5,443 | | Contractual balance | | | 8,370 | | | 5,476 | | Unrealized loss | | | (58) | | | (33) | |
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| Schedule of gains and losses from changes in fair value included in earnings |
| | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | | June 30, | | June 30, | | | (dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | Interest income | | $ | 1,664 | | $ | 1,358 | | $ | 2,742 | | $ | 2,531 | | | Change in fair value | | | (4) | | | (17) | | | (25) | | | (3) | | | Total included in earnings | | $ | 1,660 | | $ | 1,341 | | $ | 2,717 | | $ | 2,528 | | |
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| Consumer loans held for sale | Recurring basis |
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| Fair Value Disclosures |
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| Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs |
| | | | | | | | | | | | Fair | | Valuation | | | | | June 30, 2025 (dollars in thousands) | | Value | | Technique | | Unobservable Inputs | | Rate | | | | | | | | | | | Consumer loans held for sale | | $ | 8,312 | | Contract Terms | | (1) Net Premium | | 0.15% | | | | | | | | | | | | | | | | | | (2) Discounted Sales | | 10.00% |
| | | | | | | | | | | | Fair | | Valuation | | | | | December 31, 2024 (dollars in thousands) | | Value | | Technique | | Unobservable Inputs | | Rate | | | | | | | | | | | Consumer loans held for sale | | $ | 5,443 | | Contract Terms | | (1) Net Premium | | 0.15% | | | | | | | | | | | | | | | | | | (2) Discounted Sales | | 10.00% |
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