v3.26.1
Fair Value (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of Financial Assets Measured at Fair Value on Recurring Basis

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

 

 

March 31, 2026

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

187,102

 

 

$

 

 

$

187,102

 

 

$

 

U.S. Treasury and agencies

 

 

72,077

 

 

 

 

 

 

72,077

 

 

 

 

State and municipals

 

 

44,194

 

 

 

 

 

 

44,194

 

 

 

 

Corporate bonds

 

 

28,541

 

 

 

 

 

 

28,541

 

 

 

 

Total securities available for sale

 

$

331,914

 

 

$

 

 

$

331,914

 

 

$

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi trust assets

 

$

652

 

 

$

652

 

 

$

 

 

$

 

Interest rate swap asset

 

 

335

 

 

 

 

 

 

335

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liability

 

$

381

 

 

$

 

 

$

381

 

 

$

 

 

 

 

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

 

 

$

 

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.

 

 

March 31, 2026

 

(Dollars in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Other equity investments

 

$

4,952

 

 

$

 

 

$

1,946

 

 

$

3,006

 

Collateral-dependent loans

 

 

1,919

 

 

 

 

 

 

 

 

 

1,919

 

OREO

 

 

1,560

 

 

 

 

 

 

 

 

 

1,560

 

 

 

 

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

 

 

Summary of Quantitative Information about Level 3 Fair Value Measurements of Assets Measured on a Nonrecurring Basis

The following tables present quantitative information about Level 3 fair value measurements of assets measured on a nonrecurring basis as of the dates stated.

(Dollars in thousands)

 

Balance as of March 31, 2026

 

 

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

 

 

1,338

 

 

Selling Costs

 

 

7

%

Discounted cash flows technique

 

 

222

 

 

Discount Rate

 

 

20

%

 

(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

%

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

The following tables present the estimated fair values, related carrying amounts, and valuation level of the financial instruments as of the dates stated.

 

 

March 31, 2026

 

 

 

 

 

 

 

 

 

Fair Value Measurements

 

(Dollars in thousands)

 

Carrying Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

146,608

 

 

$

146,608

 

 

$

146,608

 

 

$

 

 

$

 

Federal funds sold

 

 

1,451

 

 

 

1,451

 

 

 

1,451

 

 

 

 

 

 

 

Securities available for sale

 

 

331,914

 

 

 

331,914

 

 

 

 

 

 

331,914

 

 

 

 

Restricted equity investments

 

 

18,405

 

 

 

18,405

 

 

 

 

 

 

18,405

 

 

 

 

Other equity investments

 

 

4,952

 

 

 

4,952

 

 

 

 

 

 

1,946

 

 

 

3,006

 

Other investments

 

 

20,916

 

 

 

20,916

 

 

 

 

 

 

 

 

 

20,916

 

Loans held for investment, net

 

 

1,814,715

 

 

 

1,762,500

 

 

 

 

 

 

 

 

 

1,762,500

 

Accrued interest receivable

 

 

11,134

 

 

 

11,134

 

 

 

 

 

 

11,134

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

392,067

 

 

$

392,067

 

 

$

392,067

 

 

$

 

 

$

 

Interest-bearing demand and money market

 

 

598,599

 

 

 

598,599

 

 

 

 

 

 

598,599

 

 

 

 

Savings

 

 

102,400

 

 

 

102,400

 

 

 

 

 

 

102,400

 

 

 

 

Time

 

 

800,008

 

 

 

801,177

 

 

 

 

 

 

801,177

 

 

 

 

FHLB borrowings

 

 

150,000

 

 

 

150,831

 

 

 

 

 

 

150,831

 

 

 

 

Subordinated notes, net

 

 

14,702

 

 

 

13,903

 

 

 

 

 

 

 

 

 

13,903

 

 

 

 

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