Fair Value Measurements and Disclosures (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Assets and Liabilities Measured on Recurring Basis

The following tables present the balances of assets and liabilities measured on a recurring basis as of December 31, 2025 and 2024 aggregated by the level in the fair value hierarchy in which these measurements fall.


(dollars in thousands)	December 31, 2025		Level 1		Level 2		Level 3
Assets
Available for sale securities:
U.S. agency mortgage-backed	$	267,650	$	—	$	267,650	$	—
Collateralized mortgage obligations	60,327		—		60,327		—
Municipal bonds	48,147		—		48,147		—
U.S. government agency	11,003		—		11,003		—
Corporate bonds	4,321		—		4,321		—
Total available for sale securities	$	391,448	$	—	$	391,448	$	—

Derivative assets(1)	$	1,311	$	—	$	1,311	$	—
Total	$	392,759	$	—	$	392,759	$	—

Liabilities
Derivative liabilities(1)	$	294	$	—	$	294	$	—


(dollars in thousands)	December 31, 2024		Level 1		Level 2		Level 3
Assets
Available for sale securities:
U.S. agency mortgage-backed	$	261,873	$	—	$	261,873	$	—
Collateralized mortgage obligations	71,389		—		71,389		—
Municipal bonds	45,829		—		45,829		—
U.S. government agency	17,128		—		17,128		—
Corporate bonds	6,573		—		6,573		—
Total available for sale securities	$	402,792	$	—	$	402,792	$	—

Derivative assets(1)	$	3,267	$	—	$	3,267	$	—
Total	$	406,059	$	—	$	406,059	$	—

Liabilities
Derivative liabilities(1)	$	42	$	—	$	42	$	—

(1)For more information, refer to Note 14.

Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis

The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below.


			Fair Value Measurements Using
(dollars in thousands)	December 31, 2025		Level 1		Level 2		Level 3
Assets
Individually evaluated loans	$	4,941	$	—	$	—	$	4,941
Foreclosed assets and ORE	1,929		—		—		1,929
Total	$	6,870	$	—	$	—	$	6,870


			Fair Value Measurements Using
(dollars in thousands)	December 31, 2024		Level 1		Level 2		Level 3
Assets
Individually evaluated loans	$	4,524	$	—	$	—	$	4,524
Foreclosed assets and ORE	2,010		—		—		2,010
Total	$	6,534	$	—	$	—	$	6,534

Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Level 3 Assets

The following tables show significant unobservable inputs used in the fair value measurement of Level 3 assets.


(dollars in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range of Discounts	Weighted Average Discount
As of December 31, 2025
Loans individually evaluated for impairment	$	4,941	Third party appraisals and discounted cash flows	Collateral values, market discounts and estimated costs to sell	0% - 100%	20	%
Foreclosed assets and ORE	$	1,929	Third party appraisals, sales contracts, broker price opinions	Collateral values, market discounts and estimated costs to sell	0% - 43%	22	%


(dollars in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range of Discounts	Weighted Average Discount
As of December 31, 2024
Loans individually evaluated for impairment	$	4,524	Third party appraisals and discounted cash flows	Collateral values, market discounts and estimated costs to sell	0% - 100%	9	%
Foreclosed assets and ORE	$	2,010	Third party appraisals, sales contracts, broker price opinions	Collateral values, market discounts and estimated costs to sell	19% - 69%	23	%

Summary of Fair Values of Company's Financial Instruments

The fair value of off-balance sheet financial instruments as of December 31, 2025 and 2024 was immaterial.


			Fair Value Measurements at December 31, 2025
(dollars in thousands)	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	141,605	$	141,605	$	141,605	$	—	$	—

Investment securities available for sale	391,448		391,448		—		391,448		—
Investment securities held to maturity	1,065		1,066		—		1,066		—
Mortgage loans held for sale	1,558		1,558		—		1,558		—
Loans, net	2,710,881		2,728,477		—		2,723,536		4,941
Cash surrender value of BOLI	49,557		49,557		49,557		—		—
Derivative assets(1)	1,311		1,311		—		1,311		—
Financial Liabilities
Deposits	$	2,972,806	$	2,971,389	$	2,167,183	$	804,206	$	—
Other borrowings	—		—		—		—		—
Subordinated debt, net of issuance cost	54,675		54,520		—		54,520		—
Short-term FHLB advances	—		—		—		—		—
Long-term FHLB advances	3,024		3,012		—		3,012		—
Derivative liabilities(1)	294		294		—		294		—


			Fair Value Measurements at December 31, 2024
(dollars in thousands)	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	98,548	$	98,548	$	98,548	$	—	$	—

Investment securities available for sale	402,792		402,792		—		402,792		—
Investment securities held to maturity	1,065		1,065		—		1,065		—
Mortgage loans held for sale	832		832		—		832		—
Loans, net	2,685,269		2,617,254		—		2,612,730		4,524
Cash surrender value of BOLI	48,421		48,421		48,421		—		—
Derivative assets(1)	3,267		3,267		—		3,267		—
Financial Liabilities
Deposits	$	2,780,696	$	2,778,056	$	2,046,779	$	731,277	$	—
Other borrowings	5,539		5,528		—		5,528		—
Subordinated debt, net of issuance cost	54,459		49,563		—		49,563		—
Short-term FHLB advances	137,220		137,220		137,220		—		—
Long-term FHLB advances	38,326		38,111		—		38,111		—
Derivative liabilities(1)	42		42		—		42		—

(1)Derivative assets and liabilities are reported at fair value in accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively, in the Consolidated Statements of Financial Condition.