FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2026

Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis

The following table summarizes fair value measurements as of the dates indicated below (dollars in thousands):

	Level 1		Level 2			Level 3		Total
March 31, 2026
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S government and agencies	$	—	$	49,990		$	—	$	49,990
State and municipal		—		173,197			—		173,197
Residential mortgage-backed securities		—		254,065			—		254,065
Commercial mortgage-backed securities		—		45,833			—		45,833
Commercial collateralized mortgage obligations		—		67,067			—		67,067
Asset-backed and other amortizing securities		—		12,700			—		12,700
Other securities		—		—			—		—
Loans held for sale (mandatory)		—		15,471			—		15,471
Mortgage servicing rights		—		—			24,611		24,611
Asset derivatives		—		10,160			—		10,160
Liability derivatives		—		(127	)		—		(127	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			2,344		2,344

December 31, 2025
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	176,305		$	—	$	176,305
Residential mortgage-backed securities		—		260,760			—		260,760
Commercial mortgage-backed securities		—		44,786			—		44,786
Commercial collateralized mortgage obligations		—		67,597			—		67,597
Asset-backed and other amortizing securities		—		13,132			—		13,132
Other securities		—		4,960			—		4,960
Loans held for sale (mandatory)		—		7,796			—		7,796
Mortgage servicing rights		—		—			24,041		24,041
Asset derivatives		—		9,970			—		9,970
Liability derivatives		—		(65	)		—		(65	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			5,515		5,515

Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):

	Fair Value		Valuation Techniques	Unobservable Inputs	Range of Discounts
March 31, 2026
Non-recurring:
Loans held for investment	$	2,344	Third party appraisals or inspections	Collateral discounts and selling costs	20% to 35%
Recurring:
Mortgage servicing rights		24,611	Discounted cash flows	Constant prepayment rate		7.27%
				Discount rate		9.71%

December 31, 2025
Non-recurring:
Loans held for investment	$	5,515	Third party appraisals or inspections	Collateral discounts and selling costs	20% to 60%
Recurring:
Mortgage servicing rights		24,041	Discounted cash flows	Constant prepayment rate		8.81%
				Discount rate		9.70%

Estimated Fair Values, and Related Carrying Amounts of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair values section are as follows (dollars in thousands):

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

March 31, 2026
Financial assets:
Cash and cash equivalents	$	722,000	$	722,000	$	—	$	—	$	722,000
Loans held for investment, net		3,058,707		—		—		3,040,850		3,040,850
Loans held for sale (best efforts)		1,732		—		1,757		—		1,757
Accrued interest receivable		17,009		—		17,009		—		17,009
Financial liabilities:
Deposits		4,027,586		—		4,027,579		—		4,027,579
Accrued interest payable		4,578		—		4,578		—		4,578
Junior subordinated deferrable interest debentures		46,393		—		35,169		—		35,169
Subordinated debt		14,100		—		13,246		—		13,246


December 31, 2025
Financial assets:
Cash and cash equivalents	$	552,439	$	552,439	$	—	$	—	$	552,439
Loans held for investment, net		3,099,371		—		—		3,082,072		3,082,072
Loans held for sale (best efforts)		2,197		—		2,237		—		2,237
Accrued interest receivable		20,931		—		20,931		—		20,931
Financial liabilities:
Deposits		3,874,077		—		3,873,806		—		3,873,806
Accrued interest payable		5,014		—		5,014		—		5,014
Junior subordinated deferrable interest debentures		46,393		—		35,213		—		35,213
Subordinated debt		14,100		—		13,907		—		13,907