v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgment assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used.
ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
Level 3: Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period.
The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of:
Level 1Level 2Level 3
Quoted prices
in active
markets for
identical
assets		Significant
other
observable
inputs		Significant
unobservable
inputs		Total
Estimated
Fair
Value
March 31, 2026
Available-for-sale securities$33,197 $425,346 $— $458,543 
Loans held-for-sale— 144,407 — 144,407 
Mortgage servicing rights— — 88,993 88,993 
Derivative financial instruments - assets— 22,761 — 22,761 
Derivative financial instruments - liabilities— (15,748)— (15,748)
Total$33,197 $576,766 $88,993 $698,956 
December 31, 2025
Available-for-sale securities$33,270 $435,700 $— $468,970 
Loans held-for-sale— 100,539 — 100,539 
Mortgage servicing rights— — 86,651 86,651 
Derivative financial instruments - assets— 22,384 — 22,384 
Derivative financial instruments - liabilities— (15,531)— (15,531)
Total$33,270 $543,092 $86,651 $663,013 
For further details on our Level 3 inputs related to MSRs, see Note 5 - Mortgage Servicing Rights.
The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis:
For the three months ended
March 31,
20262025
Balance, beginning of period$86,651 $84,258 
Total fair value adjustments included in earnings(1,929)(3,984)
Purchases, issuances, sales and settlements:
Issuances4,271 2,653 
Balance, end of period$88,993 $82,927 
Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and other real estate owned and foreclosed assets, which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses, and subsequent to their initial recognition, were remeasured at fair value through a write-down included in other noninterest expense. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of:
Level 3
March 31,
2026		December 31,
2025
Collateral dependent loans:
Commercial and industrial$16,428 $6,783 
Commercial real estate3,515 3,515 
Residential real estate3,029 1,875 
Total collateral dependent loans$22,972 $12,173 
Other real estate owned and foreclosed assets, net:
Commercial real estate$8,961 $8,960 
Residential real estate273 880 
Other1,674 1,674 
Total other real estate owned and foreclosed assets, net:$10,908 $11,514 
The fair value of the financial assets in the table above utilizes the market approach valuation technique, with discount adjustments for differences between comparable sales.
Fair value of financial instruments not carried at fair value:
The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of:
Estimated Fair Value
Carrying
Value		TotalLevel 1Level 2Level 3
March 31, 2026
Assets:
Cash and cash equivalents$413,732 $413,732 $413,732 $— $— 
Securities held-to-maturity33,553 29,045 — 29,045 — 
Loans (excluding collateral dependent loans)6,880,611 6,826,658 — — 6,826,658 
Restricted equity securities26,230 26,230 — 26,230 — 
Accrued interest receivable33,087 33,087 — 2,178 30,909 
Liabilities:
Deposits (excluding demand deposits)$4,634,447 $3,913,506 $2,705,908 $1,207,598 $— 
Securities sold under agreements to repurchase7,670 7,670 — 7,670 — 
Subordinated debt, net36,754 37,391 — — 37,391 
Accrued interest payable6,356 6,356 — 6,356 — 
December 31, 2025
Assets:
Cash and cash equivalents$652,592 $652,592 $652,592 $— $— 
Securities held-to-maturity33,839 29,446 — 29,446 — 
Loans (excluding collateral dependent loans)6,655,567 6,544,724 — — 6,544,724 
Restricted equity securities24,775 24,775 — 24,775 — 
Accrued interest receivable32,255 32,255 — 2,224 30,031 
Liabilities:
Deposits (excluding demand deposits)$4,645,526 $4,602,421 $3,315,648 $1,286,773 $— 
Securities sold under agreements to repurchase11,160 11,160 — 11,160 — 
FHLB advances— — — — — 
Subordinated debt, net36,680 35,981 — — 35,981 
Accrued interest payable6,680 6,680 — 6,680 —