v3.25.4
Fair Value
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates).
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
Financial Assets and Liabilities Measured on a Recurring Basis
The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company uses matrix pricing (Level 2 inputs) to establish the fair value of its securities available-for-sale.
The fair value of interest-only (“I/O”) strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs).
Fair Value Measurements Using
BalanceQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
(Dollars in thousands)
Assets at December 31, 2025
Available-for-sale securities:
Agency mortgage-backed securities$280,919 $— $280,919 $— 
Collateralized mortgage obligations256,730 — 256,730 — 
U.S. Treasury55,309 55,309 — — 
I/O strip receivables33 — 33 — 
Assets at December 31, 2024
Available-for-sale securities:
U.S. Treasury$186,183 $186,183 $— $— 
Agency mortgage-backed securities70,091 — 70,091 — 
I/O strip receivables82 — 82 — 
Assets and Liabilities Measured on a Non-Recurring Basis
The fair value of collateral dependent loans individually evaluated with specific allocations of the allowance for credit losses on loans is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Collateral dependent loans carried at fair value on a non-recurring basis are immaterial.
Foreclosed assets are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets. The fair value is based primarily on third party appraisals, less costs to sell. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. At December 31, 2025 and December 31, 2024, there were no foreclosed assets on the balance sheet.
Fair Value of Financial Instruments
The carrying amounts and estimated fair values of financial instruments at December 31, 2025 are as follows:
Estimated Fair Value
Carrying
Amounts		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(Dollars in thousands)
Assets:
Cash and cash equivalents$647,028 $647,028 $— $— $647,028 
Securities available-for-sale592,958 55,309 537,649 — 592,958 
Securities held-to-maturity529,711 — 465,767 — 465,767 
Loans (including loans held-for-sale)3,654,382 
(1)
— 1,322 3,501,954 3,503,276 
FHLB stock, FRB stock, and other
     investments32,568 — — — N/A
Accrued interest receivable16,379 510 3,124 12,745 16,379 
I/O strips receivables33 — 33 — 33 
Liabilities:
Time deposits$528,240 $— $528,990 $— $528,990 
Other deposits4,374,846 — 4,374,846 — 4,374,846 
Subordinated debt39,805 — 37,605 — 37,605 
Accrued interest payable5,746 — 5,746 — 5,746 
_______________________________________________________
(1)Before allowance for credit losses on loans of $49,999,000.
_______________________________________________________
The carrying amounts and estimated fair values of financial instruments at December 31, 2024 are as follows:
Estimated Fair Value
Carrying
Amounts		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(Dollars in thousands)
Assets:
Cash and cash equivalents$968,123 $968,123 $— $— $968,123 
Securities available-for-sale256,274 186,183 70,091 — 256,274 
Securities held-to-maturity590,016 — 497,012 — 497,012 
Loans (including loans held-for-sale)3,494,312 
(1)
— 2,375 3,304,196 3,306,571 
FHLB stock, FRB stock, and other
     investments32,556 — — — N/A
Accrued interest receivable14,940 506 2,141 12,293 14,940 
I/O strips receivables82 — 82 — 82 
Liabilities:
Time deposits$564,447 $— $566,695 $— $566,695 
Other deposits4,255,584 — 4,255,584 — 4,255,584 
Subordinated debt39,653 — 34,853 — 34,853 
Accrued interest payable6,350 — 6,350 — 6,350 
_______________________________________________________
(1)Before allowance for credit losses on loans of $48,953,000.
_______________________________________________________