Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value Option Disclosures

The table below shows the income statement impact for these fair value adjustments for the three months ended March 31, 2026 and 2025:


(dollars in thousands)	For the Three Months Ended March 31,
	2026		2025
Loans	$	(886)	$	2,919
Loans held for sale	(2,611)		1,810

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025 and the valuation techniques used by the Company to determine those fair values (dollars in thousands):


	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:
Equity securities	$	1,339	$	—	$	—	$	1,339
Available for sale debt securities	—		4,884		—		4,884
Mortgage banking assets:
Loans held for sale	—		297,243		—		297,243
Loans held for investment	—		173,852		—		173,852
Interest rate lock commitments	—		—		4,109		4,109
Forward sales commitments	—		2,227		—		2,227
Mortgage servicing rights	—		—		20,608		20,608
Lender risk account	—		—		29,569		29,569
Total	$	1,339	$	478,206	$	54,286	$	533,831
Financial Liabilities:
Interest rate lock commitments	—		—		168		168
Forward sales commitments	—		197		—		197
Total	$	—	$	197	$	168	$	365


	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:
Equity securities	$	1,347	$	—	$	—	$	1,347
Available for sale debt securities	—		4,738		—		4,738
Mortgage banking assets:
Loans held for sale	—		309,213		—		309,213
Loans held for investment	—		178,578		—		178,578
Interest rate lock commitments	—		—		2,712		2,712
Forward sales commitments	—		52		—		52
Mortgage servicing rights	—		—		17,048		17,048
Lender risk account	—		—		30,446		30,446
Total	$	1,347	$	492,581	$	50,206	$	544,134
Financial Liabilities:
Interest rate lock commitments	—		—		6		6
Forward sales commitments	—		590		—		590
Total	$	—	$	590	$	6	$	596

Schedule of Lender Risk Account

The following table presents a reconciliation of the Level 3 available for sale debt securities measured at fair value on a recurring basis for the three months ended March 31, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended March 31,
	2026		2025
Balance at beginning of period	$	—	$	8,032



Unrealized	—		379

Balance at end of period	$	—	$	8,411

The following table presents a reconciliation of the Level 3 lender risk account measured at fair value on a recurring basis for the three months ended March 31, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended March 31,
	2026		2025
Beginning of period	$	30,446	$	28,436
Due to loan sales	324		400
Releases and claims paid to the Company	(893)		(628)
Change in fair value recognized in gain on sale of loans	(308)		829
End of period	$	29,569	$	29,037

Schedule of Reconciliation of Interest Rate Lock

The following table presents a reconciliation of the Level 3 interest rate lock commitments measured at fair value on a recurring basis for the three months ended March 31, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended March 31,
	2026		2025
Balance at beginning of period	$	2,706	$	2,047
Change in fair value	1,235		2,503
Balance at end of period	$	3,941	$	4,550

Schedule of Significant Assumptions Used

The following is a summary of the key unobservable inputs used in the valuation of the Level 3 interest rate lock commitments:


	March 31,
	2026		2025
Pull-through rate	94.5	%	82.2	%

The Company estimates the fair value of the lender risk account using management’s best estimate of key assumptions. These assumptions include prepayment rates, discount rates, and projected annual losses on unpaid principal of the sold loan portfolio. The weighted average of unobservable inputs for these valuation assumptions is as follows as of the dates indicated (dollars in thousands):


	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs		Weighted Average
Assets:
March 31, 2026
Lender Risk Account	$	29,569	Present value of	Credit losses	—% - 0.22%		0.08	%
			cash flows	Prepayment rates	16.20	%	16.20	%
				Discount rates	5.23% - 6.81%		6.04	%
December 31, 2025
Lender Risk Account	$	30,446	Present value of	Credit losses	—% - 0.17%		0.05	%
			cash flows	Prepayment rates	17.43	%	17.43	%
				Discount rates	5.05% - 6.57%		5.80	%

Schedule of Nonrecurring Fair Value Measurements

The following asset classes were measured at fair value on the accompanying consolidated balance sheets as of the dates indicated due to declines in the fair value. Certain individually evaluated loans and other real estate carried at original cost, which exceeds fair value, have been omitted from the disclosure below (dollars in thousands):


	Assets Measured at Fair Value on a Nonrecurring 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)		Balance at March 31, 2026
Individually evaluated loans	—	—	$	2,044	$	2,044
Other real estate owned	—	—	1,759		1,759


	Assets Measured at Fair Value on a Nonrecurring 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)		Balance at December 31, 2025
Individually evaluated loans	—	—	$	3,345	$	3,345
Other real estate owned	—	—	991		991

Schedule of Fair Value by Balance Sheet Grouping

The following presents estimated fair values of the Company’s financial instruments, not previously presented, and the level within the fair value hierarchy in which fair value measurements falls as of the dates indicated (dollars in thousands):


	March 31, 2026
	Fair Value Hierarchy	Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	487,617	$	487,617


FHLB stock	Level 2	80,109		80,109

Loans, net	Level 2	6,225,601		6,187,395
Interest receivable	Level 2	25,613		25,613
Total		6,818,940		6,780,734
Financial Liabilities:
Deposits	Level 2	5,001,417		4,992,446
Borrowings	Level 2	1,631,496		1,628,614
Subordinated debentures	Level 2	111,872		111,872
Subordinated debentures issued through trusts	Level 2	5,000		5,000
Interest payable	Level 2	16,628		16,628
Total		6,766,413		6,754,560


	December 31, 2025
	Fair Value Hierarchy	Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	496,459	$	496,459


FHLB stock	Level 2	80,109		80,109

Loans, net	Level 2	5,829,169		5,791,584
Interest receivable	Level 2	28,353		28,353
Total		6,434,090		6,396,505
Financial Liabilities:
Deposits	Level 2	4,869,667		4,858,176
Borrowings	Level 2	1,439,500		1,426,415
Subordinated debentures	Level 2	91,915		91,915
Subordinated debentures issued through trusts	Level 2	5,000		5,000
Interest payable	Level 2	16,628		16,628
Total		6,422,710		6,398,134

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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