v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis are summarized below:
June 30, 2026
(in thousands)
Quoted
Prices in
Active
Markets
for Identical
Assets
(Level 1)		Third-Party
Models with
Observable
Market
Inputs
(Level 2)		Internal
Models
with
Unobservable
Market
Inputs
(Level 3)		Total
Carrying
Value in the
Consolidated
Balance
Sheet
Assets
Securities
Debt securities available for sale
U.S Treasury Securities
— 
218,953 
— 
218,953 
U.S. Government agency and sponsored enterprise residential MBS
— 
2,099,858 
— 
2,099,858 
U.S. government agency and sponsored enterprise commercial MBS
— 
146,793 
— 
146,793 
U.S. Government agency and sponsored enterprise obligations
— 
81,989 
— 
81,989 
Municipal Bonds
— 1,663 — 1,663 
— 
2,549,256 
— 
2,549,256 
Equity securities with readily determinable fair values not held for trading2,537 
— 
— 
2,537 
2,537 
2,549,256 
— 
2,551,793 
Mortgage loans held for sale (at fair value)
— 
389 
— 
389 
Bank owned life insurance
— 
265,362 
— 
265,362 
Other assets
Mortgage servicing rights (MSRs)
— 
— 
— 
— 
Derivative instruments
— 
27,178 
— 
27,178 
$
2,537 
$
2,842,185 
$
— 
$
2,844,722 
Liabilities
Other liabilities
Derivative instruments
$
— 
$
25,984 
$
— 
$
25,984 
December 31, 2025
(in thousands)Quoted
Prices in
Active
Markets
for Identical
Assets
(Level 1)		Third-Party
Models with
Observable
Market
Inputs
(Level 2)		Internal
Models
with
Unobservable
Market
Inputs
(Level 3)		Total
Carrying
Value in the
Consolidated
Balance
Sheet
Assets
Cash and Cash equivalents
Other short-term investments
$— $7,233 $— $7,233 
Securities
Debt Securities available for sale
U.S Treasury Securities
— 
1,000 
— 
1,000 
U.S. Government agency and sponsored enterprise residential MBS
— 1,824,510 — 1,824,510 
U.S. Government agency and sponsored enterprise commercial MBS
— 152,249 — 152,249 
U.S. Government agency and sponsored enterprise obligations— 45,455 — 45,455 
Non-agency commercial MBS
— — — — 
Municipal Bonds— 1,669 — 1,669 
— 2,024,883 — 2,024,883 
Equity securities with readily determinable fair values not held for trading2,548 — — 2,548 
2,548 2,024,883 — 2,027,431 
Mortgage loans held for sale (at fair value)— 2,932 — 2,932 
Bank owned life insurance— 260,644 — 260,644 
Other assets
Mortgage servicing rights (MSRs)— 
— 
1,314 1,314 
Derivative instruments— 36,539 — 36,539 
$2,548 $2,332,231 $1,314 $2,336,093 
Liabilities
Other liabilities
Derivative instruments$— $36,053 $— $36,053 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following tables present the major categories of assets measured at fair value on a non-recurring basis at June 30, 2026 and December 31, 2025:
June 30, 2026
(in thousands)Carrying AmountQuoted
Prices in
Active
Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total Write Downs
Description
Loans held for sale, at lower of cost or fair value$122,172 $— $— $122,172 $2,745 
Loans held for investment measured for credit deterioration using the fair value of the collateral (1)5,941 — — 5,941 — 
Other Real Estate Owned (2)
15,542 — — 15,542 — 
Cash flow dependent loans measured for expected credit losses (3)67,008 — — 67,008 18,398 
$210,663 $— $— $210,663 $21,143 
_______________
(1)Includes commercial loans totaling $5.9 million. The specific reserves on these loans were $2.2 million. There were no write downs on these loans at June 30, 2026.
(2)Includes $14.0 million and $1.6 million in commercial and residential real estate property, respectively.
(3)Consists entirely of commercial and owner-occupied loans with a carrying amount of $64.9 million and $2.1 million, respectively. The specific reserves on these loans were $3.1 million and $0.5 million, respectively, at June 30, 2026.
December 31, 2025
(in thousands)Carrying AmountQuoted
Prices in
Active
Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total Write Downs
Description
Loans held for sale, at lower of cost or fair value$80,912 $— $— $80,912 $13,752 
Loans held for investment measured for credit deterioration using the fair value of the collateral (1)(2)7,497 — — 7,497 3,328 
Other Real Estate Owned (3)15,542 — — 15,542 1,114 
Cash flow dependent loans measured for expected credit losses (4)60,397 — — 60,397 15,989 
$164,348 $— $— $164,348 $34,183 
_______________
(1)Consists entirely of commercial loans with a carrying amount of $7.5 million, at December 31, 2025.
(2)Include loans with specific reserves of $0.3 million and total write downs of $3.3 million at December 31, 2025.
(3)Includes $14.0 million and $1.6 million in commercial real estate and residential real estate property, respectively.
(4)Consists entirely of commercial loans with a carrying amount of $60.4 million and specific reserves of $2.3 million at December 31, 2025.
The following table presents the significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis.

Financial InstrumentUnobservable InputsValuation MethodsDiscount RangeTypical Discount
Collateral dependent loansDiscount to fair valueAppraisal value, as adjusted
0-30%
6-7%
Inventory
0-100%
30-50%
Accounts receivables
0-100%
20-30%
Equipment
0-100%
20-30%
Other Real Estate Owned
Discount to fair valueAppraisal value, as adjustedN/A
6-7%

There were no other significant assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2026 and December 31, 2025.

Loans Held for Sale, at Lower of Cost or Fair Value

The fair value used for loans held for sale that are carried at the lower of cost or fair value is generally based on quoted market prices of similar loans less estimated cost to sell and is considered to be Level 3.
Cash Flow Dependent Loans Measured For Expected Credit Losses

The carrying amount of individually evaluated loans where repayment is expected to be provided through cash flows is estimated using the present value discounted cash flow method. The estimated cash flows are based on the borrower’s repayment capacity, using available financial information. In certain circumstances, management may utilize probability‑weighted scenarios to reflect different reasonable and supportable expectations of future cash collections. Because this approach incorporates significant unobservable inputs, such as borrower‑specific cash flow estimates, discount rates, and probability‑of‑default assumptions, the fair value of these loans is classified as a Level 3 valuation.


Collateral Dependent Loans Measured For Expected Credit Losses

The carrying amount of collateral dependent loans is typically based on the fair value of the underlying collateral less cost to sell. The Company primarily uses third party appraisals to assist in measuring expected credit losses on collateral dependent loans. The Company also uses third party appraisal reviewers for loans with an outstanding balance of $1 million and above. These appraisals generally use the market or income approach valuation technique and use market observable data to formulate an opinion of the fair value of the loan’s collateral. However, the appraiser uses professional judgment in determining the fair value of the collateral or properties and may also adjust these values for changes in market conditions subsequent to the appraisal date. When current appraisals are not available for certain loans, the Company uses judgment on market conditions to adjust the most current appraisal. The sales prices may reflect prices of sales contracts not closed and the amount of time required to sell out the real estate project may be derived from current appraisals of similar projects. As a consequence, the fair value of the collateral is considered a Level 3 valuation.
OREO

The Company values Other Real Estate Owned (OREO), at the lower of cost or fair value of the property, less cost to sell. The fair value of the property is generally based upon recent appraisal values of the property, less cost to sell. The Company primarily uses third party appraisals to assist in measuring the valuation of OREO. Period revaluations are classified as Level 3 as the assumptions used may not be observable. There were no sales or writedowns of OREO properties during the six months ended June 30, 2026.

Fair Value of Financial Instruments
The estimated fair value of financial instruments where fair value differs from carrying value are as follows:
June 30, 2026December 31, 2025
(in thousands)Carrying
Value		Estimated
Fair
Value		Carrying
Value		Estimated
Fair
Value
Financial assets:
Loans2,613,641 2,586,522 2,432,890 2,412,723 
Financial liabilities:
Time deposits1,412,797 1,406,133 1,560,429 1,559,565 
Advances from the FHLB702,608 704,966 711,984 729,053 
Subordinated notes29,880 27,789 29,795 26,530 
Junior subordinated debentures64,178 64,584 64,178 64,690