v3.26.1
FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets measured at fair value on a recurring basis at March 31, 2026 are summarized below. There were no liabilities carried at fair value on a recurring basis at March 31, 2026.
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets
Investment securities available for sale
$— $28,531 $— $28,531 
Government guaranteed loans HFI, at fair value
— — 51,807 51,807 
Assets measured at fair value on a recurring basis at December 31, 2025 are summarized below. There were no liabilities carried at fair value on a recurring basis at December 31, 2025.
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets
Investment securities available for sale
$— $29,363 $— $29,363 
Government guaranteed loans HFI, at fair value
— — 54,076 54,076 
Schedule of Fair Value for Loans
The following tables provide more information about the fair value carrying amount and the unpaid principal outstanding of HFI government guaranteed loans measured at fair value at March 31, 2026 and December 31, 2025.
March 31, 2026
Total Loans
Nonaccrual(1)
90 Days or More Past Due(1)
Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)
Real estate - commercial
$10,279 $10,160 $119 $418 $439 $(21)$— $— $— 
Commercial and industrial
41,528 48,690 (7,162)1,020 8,409 (7,389)— — — 
Total loans HFI, at fair value$51,807 $58,850 $(7,043)$1,438 $8,848 $(7,410)$— $— $— 
December 31, 2025
Total Loans
Nonaccrual(1)
90 Days or More Past Due(1)
Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)Fair Value Carrying AmountUnpaid Principal BalanceFair Value Gain (Loss)
Real estate - commercial
$10,348 $10,420 $(72)$— $— $— $— $— $— 
Commercial and industrial
43,728 50,165 (6,437)1,491 2,630 (1,139)— — — 
Total loans HFI, at fair value$54,076 $60,585 $(6,509)$1,491 $2,630 $(1,139)$— $— $— 
(1) The nonaccrual and 90 days or more past due loan balances do not include the portion of government guaranteed loan balances.
The total amount of net gains and losses from changes in fair value and interest income included in earnings for the three months ended March 31, 2026 and March 31, 2025 for government guaranteed loans HFI, at fair value, were as follows:
Three Months Ended March 31,
20262025
Interest income$1,147 $1,777 
Change in fair value(533)(755)
Total gain, net
$614 $1,022 
Schedule of Valuation Technique and Unobservable Inputs Used in the Valuation of Government Guaranteed Loans HFI, at Fair Value
The table below presents a reconciliation of government guaranteed loans HFI, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the three months ended March 31, 2026 and March 31, 2025:
 Three Months Ended March 31,
20262025
Balance of government guaranteed loans HFI at fair value, beginning of period
$54,076 $60,833 
New government guaranteed originations at fair value— 4,760 
Loans sold— (5,606)
Principal payments
(1,736)(1,331)
Total fair value gains (losses) during the period
(533)(755)
Balance of government guaranteed loans HFI at fair value, end of period
$51,807 $57,901 
The following table provides information about the valuation techniques and unobservable inputs used in the valuation of government guaranteed loans HFI that fall within Level 3 of the fair value hierarchy at March 31, 2026 and December 31, 2025:
Fair ValueValuation
Technique		Unobservable InputsRange (Weighted Average)
March 31, 2026
Government guaranteed loans HFI, at fair value
$51,807 DiscountedDiscount rate
4.93%-8.43% (7.38%)
cash flowConditional prepayment rate
6.82%-18.62% (11.31%)
December 31, 2025
Government guaranteed loans HFI, at fair value
$54,076 DiscountedDiscount rate
5.27%-8.77% (7.75%)
cash flowConditional prepayment rate
8.61%-18.58% (11.16%)
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis
Assets measured at fair value on a nonrecurring basis at March 31, 2026 are summarized below:
 Fair ValueValuation Technique(s)Significant
Unobservable
Input(s)		Discount % AmountValuation Level
Individually evaluated loans
$2,628 Discounted appraisals, estimated net realizable value of collateralCollateral discounts10%3
Other real estate owned
$400 Discounted appraisals, estimated net realizable value of collateralCollateral discounts10%3
Repossessed assets
$583 Discounted appraisals, estimated net realizable value of collateralCollateral discounts10%3
Assets measured at fair value on a nonrecurring basis at December 31, 2025 are summarized below:
Fair ValueValuation Technique(s)Significant
Unobservable
Input(s)		Discount % AmountValuation level
Individually evaluated loans
$2,628 Discounted appraisals, estimated net realizable value of collateralCollateral discounts
10%
3
Other real estate owned$400 Discounted appraisals, estimated net realizable value of collateralCollateral discounts10%3
Repossessed assets$263 Discounted appraisals, estimated net realizable value of collateralCollateral discounts10%3
Schedule of the Carrying Values and Estimated Values of Financial Instruments Not Carried at Fair Value
The carrying values and estimated fair values of financial instruments not carried at fair value, at March 31, 2026 and December 31, 2025 are as follows:
March 31, 2026December 31, 2025
LevelCarrying ValueFair ValueCarrying ValueFair Value
Assets:
Cash and cash equivalents
1$134,465 $134,465 $206,982 $206,982 
Investment securities held to maturity
22,491 2,378 2,493 2,384 
Nonmarketable equity securities, at cost
24,662 4,662 4,656 4,656 
Loans HFI, at amortized cost
3857,987 875,190 887,822 900,200 
Accrued interest receivable
27,683 7,683 8,421 8,421 
Government guaranteed loan servicing rights
311,334 14,653 12,580 16,041 
Liabilities:
Noninterest-bearing deposit accounts
2$111,476 $111,476 $95,731 $95,731 
Interest-bearing transaction accounts
2153,860 153,860 231,227 231,227 
Savings and money market deposit accounts
2432,781 432,781 454,639 454,639 
Time deposits
2387,752 388,050 402,341 403,394 
Subordinated notes
26,099 5,725 5,962 5,877 
Notes payable
21,479 1,476 1,593 1,590 
Accrued interest payable
2958 958 1,133 1,133