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FAIR VALUE DISCLOSURES
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES FAIR VALUE DISCLOSURES
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. There are three levels of inputs that may be used to measure fair values:
Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 15 of the Company’s 2025 Form 10-K.
Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
June 30, 2026Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $80,408 $— $80,408 
Asset-backed securities— 743 — 743 
State and municipal— 2,588 — 2,588 
CLO securities— 183,183 — 183,183 
Corporate bonds— 260 — 260 
SBA pooled securities— 936 — 936 
$— $268,118 $— $268,118 
Equity securities with readily determinable fair values
Mutual fund$4,540 $— $— $4,540 
Loans held for sale$— $1,405 $— $1,405 
Revenue share asset$— $— $1,349 $1,349 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2025Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $88,500 $— $88,500 
Asset-backed securities— 811 — 811 
State and municipal— 2,589 — 2,589 
CLO Securities— 271,074 — 271,074 
Corporate bonds— 263 — 263 
SBA pooled securities— 1,040 — 1,040 
$— $364,277 $— $364,277 
Equity securities with readily determinable fair values
Mutual fund$4,588 $— $— $4,588 
Loans held for sale$— $459 $— $459 
Revenue share asset$— $— $1,598 $1,598 
There were no transfers between levels during 2026 or 2025.
Revenue Share Asset
On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. The June 30, 2022 agreement contains revenue share provisions that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The September 6, 2022 agreement contains revenue share provisions that entitles the Company to an amount ranging from fifteen to twenty percent, depending on the client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The fair value of the revenue share assets is calculated each reporting period, and changes in the fair value of the revenue share assets are recorded in noninterest income in the consolidated statements of income. The revenue share asset fair value is considered a Level 3 classification.
At June 30, 2026 and December 31, 2025, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue was $1,911,000 and $2,256,000, respectively, and a discount rate of 10.0% was applied to calculate the present value of the revenue share asset. A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2026202520262025
Beginning balance$1,448 $2,507 $1,598 $2,616 
Revenue share asset recognized — — — — 
Change in fair value of revenue share asset recognized in earnings(190)101 (312)274 
Revenue share payments received(168)(264)(196)(546)
Other adjustments259 — 259 — 
Ending balance$1,349 $2,344 $1,349 $2,344 
Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at June 30, 2026 and December 31, 2025.
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
June 30, 2026Level 1Level 2Level 3
Collateral dependent loans
1-4 family residential$— $— $56 $56 
Commercial— — 4,993 4,993 
Factored receivables— — 4,956 4,956 
$— $— $10,005 $10,005 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2025Level 1Level 2Level 3
Collateral dependent loans
Commercial$— $— $5,515 $5,515 
Factored receivables— — 2,072 2,072 
$— $— $7,587 $7,587 
Collateral Dependent Loans Specific Allocation of ACL: A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The ACL is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business.
The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at June 30, 2026 and December 31, 2025 were as follows:
(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
June 30, 2026Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$896,811 $896,811 $— $— $896,811 
Securities - held to maturity977 — — 515 515 
Loans not previously presented, gross5,467,086 42,634 — 5,379,530 5,422,164 
FHLB and other restricted stock3,171  N/A  N/A  N/A N/A
Accrued interest receivable37,910 37,910 — — 37,910 
Financial liabilities:
Deposits6,217,389 — 6,214,443 — 6,214,443 
Subordinated notes69,979 — 67,726 — 67,726 
Junior subordinated debentures43,321 — 44,383 — 44,383 
Accrued interest payable8,274 8,274 — — 8,274 

(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
December 31, 2025Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$248,471 $248,471 $— $— $248,471 
Securities - held to maturity1,550 — — 1,878 1,878 
Loans not previously presented, gross4,983,720 31,254 — 4,903,148 4,934,402 
FHLB and other restricted stock14,253 N/AN/AN/AN/A
Accrued interest receivable46,254 46,254 — — 46,254 
Financial liabilities:
Deposits4,950,216 — 4,948,300 — 4,948,300 
Federal Home Loan Bank advances280,000 — 280,000 — 280,000 
Subordinated notes69,879 — 65,581 — 65,581 
Junior subordinated debentures42,991 — 44,021 — 44,021 
Accrued interest payable14,890 14,890 — — 14,890