v3.25.4
Fair Value (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of the dates stated.

 

 

 

December 31, 2025

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

185,087

 

 

$

 

 

$

185,087

 

 

$

 

U.S. Treasury and agencies

 

 

72,538

 

 

 

 

 

 

72,538

 

 

 

 

State and municipals

 

 

44,484

 

 

 

 

 

 

44,484

 

 

 

 

Corporate bonds

 

 

30,819

 

 

 

 

 

 

30,819

 

 

 

 

Total securities available for sale

 

$

332,928

 

 

$

 

 

$

332,928

 

 

$

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi trust assets

 

$

682

 

 

$

682

 

 

$

 

 

$

 

Interest rate swap asset

 

 

613

 

 

 

 

 

 

613

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liability

 

$

654

 

 

$

 

 

$

654

 

 

$

 

 

 

 

December 31, 2024

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

164,438

 

 

$

 

 

$

164,438

 

 

$

 

U.S. Treasury and agencies

 

 

69,455

 

 

 

 

 

 

69,455

 

 

 

 

State and municipals

 

 

42,937

 

 

 

 

 

 

42,937

 

 

 

 

Corporate bonds

 

 

35,205

 

 

 

 

 

 

34,455

 

 

 

750

 

Total securities available for sale

 

$

312,035

 

 

$

 

 

$

311,285

 

 

$

750

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

MSRs

 

$

386

 

 

$

 

 

$

 

 

$

386

 

Rabbi trust assets

 

 

600

 

 

 

600

 

 

 

 

 

 

 

Mortgage derivative asset

 

 

140

 

 

 

 

 

 

140

 

 

 

 

Interest rate swap asset

 

 

95

 

 

 

 

 

 

95

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liability

 

$

95

 

 

$

 

 

$

95

 

 

$

 

Summary of Change in Corporate Bonds and MSR Assets Using Level 3 Inputs

The following table presents the change in corporate bonds and MSRs using Level 3 inputs as of and for the periods stated.

 

(Dollars in thousands)

 

Corporate
Bonds

 

 

MSRs

 

Balance as of December 31, 2024

 

$

750

 

 

$

386

 

Transfers from Level 3 to Level 2

 

 

(500

)

 

 

 

Proceeds from call of security

 

 

(250

)

 

 

 

Fair value adjustments

 

 

 

 

 

(385

)

Other adjustments

 

 

 

 

 

(1

)

Balance as of December 31, 2025

 

$

 

 

$

 

Summary of Assets Measured at Fair Value

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

 

 

 

December 31, 2025

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Other equity investments

 

$

4,910

 

 

$

 

 

$

1,904

 

 

$

3,006

 

Collateral-dependent loans

 

 

1,919

 

 

 

 

 

 

 

 

 

1,919

 

Loans held for sale

 

 

14,769

 

 

 

 

 

 

14,769

 

 

 

 

OREO

 

 

1,683

 

 

 

 

 

 

 

 

 

1,683

 

 

 

 

December 31, 2024

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Other equity investments

 

$

4,834

 

 

$

 

 

$

1,828

 

 

$

3,006

 

Collateral-dependent loans

 

 

6,954

 

 

 

 

 

 

 

 

 

6,954

 

Loans held for sale

 

 

30,976

 

 

 

 

 

 

30,976

 

 

 

 

OREO

 

 

279

 

 

 

 

 

 

 

 

 

279

 

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated.

 

(Dollars in thousands)

 

Balance as of December 31, 2025

 

 

Unobservable Input

 

Range

 

Other equity investments

 

 

 

 

 

 

 

 

Probability weighted expected return technique

 

$

3,006

 

 

Discount Rate

 

 

20

%

Collateral-dependent loans

 

 

 

 

 

 

 

 

Discounted appraised value technique

 

 

1,919

 

 

Selling Costs

 

 

5

%

OREO

 

 

 

 

 

 

 

 

Discounted appraised value technique

 

 

1,461

 

 

Selling Costs

 

 

7

%

Discounted cash flows technique

 

 

222

 

 

Discount Rate

 

 

20

%

 

(Dollars in thousands)

 

Balance as of December 31, 2024

 

 

Unobservable Input

 

Range

 

Other equity investments

 

 

 

 

 

 

 

 

Probability weighted expected return technique

 

$

3,006

 

 

Discount Rate

 

 

20

%

Collateral-dependent loans

 

 

 

 

 

 

 

 

Discounted appraised value technique

 

 

6,954

 

 

Selling Costs

 

7% - 15%

 

OREO

 

 

 

 

 

 

 

 

Discounted sales price technique

 

 

279

 

 

Selling Costs

 

 

10

%

Fair Value - Financial Instruments

Summary of Estimated Fair Values and Related Carrying Amounts of Financial Instruments

The following tables present estimated fair values and related carrying amounts of the Company’s financial instruments as of the dates stated.

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

Fair Value Measurements

 

(Dollars in thousands)

 

Carrying Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

115,949

 

 

$

115,949

 

 

$

115,949

 

 

$

 

 

$

 

Federal funds sold

 

 

1,851

 

 

 

1,851

 

 

 

1,851

 

 

 

 

 

 

 

Securities available for sale

 

 

332,928

 

 

 

332,928

 

 

 

 

 

 

332,928

 

 

 

 

Restricted equity investments

 

 

19,016

 

 

 

19,016

 

 

 

 

 

 

19,016

 

 

 

 

Other equity investments

 

 

4,910

 

 

 

4,910

 

 

 

 

 

 

1,904

 

 

 

3,006

 

Other investments

 

 

20,781

 

 

 

20,781

 

 

 

 

 

 

 

 

 

20,781

 

Loans held for sale

 

 

14,769

 

 

 

14,769

 

 

 

 

 

 

14,769

 

 

 

 

Loans held for investment, net

 

 

1,846,273

 

 

 

1,786,730

 

 

 

 

 

 

 

 

 

1,786,730

 

Accrued interest receivable

 

 

10,787

 

 

 

10,787

 

 

 

 

 

 

10,787

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

398,541

 

 

$

398,541

 

 

$

398,541

 

 

$

 

 

$

 

Interest-bearing demand and money market

 

 

612,648

 

 

 

612,648

 

 

 

 

 

 

612,648

 

 

 

 

Savings

 

 

100,346

 

 

 

100,346

 

 

 

 

 

 

100,346

 

 

 

 

Time

 

 

799,627

 

 

 

802,308

 

 

 

 

 

 

802,308

 

 

 

 

FHLB borrowings

 

 

150,000

 

 

 

150,116

 

 

 

 

 

 

150,116

 

 

 

 

Subordinated notes, net

 

 

14,716

 

 

 

13,905

 

 

 

 

 

 

 

 

 

13,905

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

Fair Value Measurements

 

(Dollars in thousands)

 

Carrying Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

173,533

 

 

$

173,533

 

 

$

173,533

 

 

$

 

 

$

 

Restricted cash

 

 

2,459

 

 

 

2,459

 

 

 

2,459

 

 

 

 

 

 

 

Federal funds sold

 

 

838

 

 

 

838

 

 

 

838

 

 

 

 

 

 

 

Securities available for sale

 

 

312,035

 

 

 

312,035

 

 

 

 

 

 

311,285

 

 

 

750

 

Restricted equity investments

 

 

19,275

 

 

 

19,275

 

 

 

 

 

 

19,275

 

 

 

 

Other equity investments

 

 

4,834

 

 

 

4,834

 

 

 

 

 

 

1,828

 

 

 

3,006

 

Other investments

 

 

19,405

 

 

 

19,405

 

 

 

 

 

 

 

 

 

19,405

 

Loans held for sale

 

 

30,976

 

 

 

30,976

 

 

 

 

 

 

30,976

 

 

 

 

Loans held for investment, net

 

 

2,088,774

 

 

 

1,998,668

 

 

 

 

 

 

 

 

 

1,998,668

 

Accrued interest receivable

 

 

12,537

 

 

 

12,537

 

 

 

 

 

 

12,537

 

 

 

 

MSRs

 

 

386

 

 

 

386

 

 

 

 

 

 

 

 

 

386

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

452,690

 

 

$

452,690

 

 

$

452,690

 

 

$

 

 

$

 

Interest-bearing demand and money market

 

 

598,875

 

 

 

598,875

 

 

 

 

 

 

598,875

 

 

 

 

Savings

 

 

100,857

 

 

 

100,857

 

 

 

 

 

 

100,857

 

 

 

 

Time

 

 

1,027,020

 

 

 

1,029,199

 

 

 

 

 

 

1,029,199

 

 

 

 

FHLB borrowings

 

 

150,000

 

 

 

152,782

 

 

 

 

 

 

152,782

 

 

 

 

Subordinated notes, net

 

 

39,789

 

 

 

38,765

 

 

 

 

 

 

 

 

 

38,765