| Fair Value of Financial Instruments |
(12) FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable. The following table presents the carrying amounts and fair values of the Company’s financial instruments as of June 30, 2026.
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June 30, 2026 |
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(Dollars in thousands) |
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Carrying
Amount |
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Fair
Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Financial assets |
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Cash, cash equivalents, and federal funds sold (1) |
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$ |
205,991 |
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$ |
205,991 |
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$ |
205,741 |
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$ |
250 |
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$ |
— |
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Investment securities |
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69,933 |
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69,933 |
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— |
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69,933 |
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— |
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Loans held for investment, net of allowance |
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2,650,665 |
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2,671,000 |
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— |
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— |
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2,671,000 |
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Loans held for sale, at lower of amortized cost or fair value |
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21,376 |
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21,376 |
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— |
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— |
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21,376 |
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Accrued interest receivable |
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20,923 |
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20,923 |
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20,923 |
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— |
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— |
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Equity securities (2) |
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1,769 |
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1,769 |
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1,769 |
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— |
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— |
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Financial liabilities |
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Funds borrowed (3) |
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2,646,138 |
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2,657,865 |
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— |
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2,657,865 |
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— |
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Accrued interest payable |
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6,101 |
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6,101 |
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6,101 |
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— |
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— |
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(1)Includes federal funds sold and interest bearing deposits in other banks. (2)Included within other assets on the balance sheet. (3)Excludes deferred financing costs of $10.2 million as of June 30, 2026. The following table presents the carrying amounts and fair values of the Company’s financial instruments as of December 31, 2025.
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December 31, 2025 |
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(Dollars in thousands) |
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Carrying
Amount |
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Fair
Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Financial assets |
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Cash, cash equivalents, and federal funds sold (1) |
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$ |
201,564 |
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$ |
201,564 |
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$ |
200,814 |
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$ |
750 |
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$ |
— |
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Investment securities |
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60,183 |
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60,183 |
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— |
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60,183 |
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— |
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Loans held for investment, net of allowance |
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2,436,916 |
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2,421,988 |
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— |
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— |
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2,421,988 |
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Loans held for sale, at lower of amortized cost or fair value |
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15,144 |
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15,144 |
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— |
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— |
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15,144 |
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Accrued interest receivable |
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19,401 |
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19,401 |
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19,401 |
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— |
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— |
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Equity securities (2) |
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1,787 |
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1,787 |
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1,787 |
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— |
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— |
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Financial liabilities |
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Funds borrowed (3) |
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2,410,016 |
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2,431,011 |
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— |
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2,431,011 |
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— |
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Accrued interest payable |
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6,319 |
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6,319 |
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6,319 |
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— |
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— |
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(1)Includes federal funds sold and interest bearing deposits in other banks. (2)Included within other assets on the balance sheet. (3)Excludes deferred financing costs of $8.4 million as of December 31, 2025. |