| Fair Value of Financial Instruments |
Note 18 Fair Value of Financial Instruments The fair value of a financial instrument is the amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is determined based upon quoted market prices to the extent possible; however, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques that may be significantly impacted by the assumptions used, including the discount rate and estimates of future cash flows. Changes in any of these assumptions could significantly affect the fair value estimates. The fair value of the financial instruments listed below does not reflect a premium or discount that could result from offering all of the Company’s holdings of financial instruments at one time, nor does it reflect the underlying value of the Company, as ASC Topic 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies and are based on the exit price concept within ASC Topic 825 and applied to this disclosure on a prospective basis. Considerable judgment is required to interpret market data in order to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The fair value of financial instruments at June 30, 2026 and December 31, 2025 are set forth below: | | | | | | | | | | | | | | | | | Level in fair value | | June 30, 2026 | | December 31, 2025 | | | measurement | | Carrying | | Estimated | | Carrying | | Estimated | | | hierarchy | | amount | | fair value | | amount | | fair value | ASSETS | | | | | | | | | | | | | | | Cash and cash equivalents | | Level 1 | | $ | 380,696 | | $ | 380,696 | | $ | 417,058 | | $ | 417,058 | U.S. Treasury securities - AFS | | Level 1 | | | 53,675 | | | 53,675 | | | 74,226 | | | 74,226 | U.S. Treasury securities - HTM | | Level 1 | | | — | | | — | | | 24,900 | | | 24,851 | Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises available-for-sale | | Level 2 | | | 201,135 | | | 201,135 | | | 157,665 | | | 157,665 | Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises available-for-sale | | Level 2 | | | 330,472 | | | 330,472 | | | 296,026 | | | 296,026 | Other available-for-sale securities | | Level 3 | | | 251 | | | 251 | | | 722 | | | 722 | Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises held-to-maturity | | Level 2 | | | 236,687 | | | 212,335 | | | 236,535 | | | 213,974 | Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises held-to-maturity | | Level 2 | | | 521,536 | | | 484,390 | | | 390,297 | | | 358,624 | Equity securities with readily determinable fair values | | Level 1 | | | 332 | | | 332 | | | 5,059 | | | 5,059 | FRB and FHLB stock | | Level 2 | | | 42,854 | | | 42,854 | | | 24,641 | | | 24,641 | Loans receivable | | Level 3 | | | 9,774,052 | | | 9,525,099 | | | 7,433,356 | | | 7,274,904 | Loans held for sale | | Level 2 | | | 26,486 | | | 26,486 | | | 25,695 | | | 25,695 | Accrued interest receivable | | Level 2 | | | 51,892 | | | 51,892 | | | 41,951 | | | 41,951 | Interest rate swap derivatives | | Level 2 | | | 30,298 | | | 30,298 | | | 29,150 | | | 29,150 | Mortgage banking derivatives | | Level 3 | | | 352 | | | 352 | | | 283 | | | 283 | LIABILITIES | | | | | | | | | | | | | | | Deposit transaction accounts | | Level 2 | | | 9,119,775 | | | 9,119,775 | | | 7,142,863 | | | 7,142,863 | Time deposits | | Level 2 | | | 1,269,658 | | | 1,271,253 | | | 1,149,771 | | | 1,157,231 | Securities sold under agreements to repurchase | | Level 2 | | | 20,239 | | | 20,239 | | | 17,350 | | | 17,350 | Long-term debt | | Level 2 | | | 204,676 | | | 202,003 | | | 54,719 | | | 53,165 | Federal Home Loan Bank advances | | Level 2 | | | 125,000 | | | 125,000 | | | — | | | — | Accrued interest payable | | Level 2 | | | 20,230 | | | 20,230 | | | 18,017 | | | 18,017 | Interest rate swap derivatives | | Level 2 | | | 6,695 | | | 6,695 | | | 9,093 | | | 9,093 | Mortgage banking derivatives | | Level 3 | | | 72 | | | 72 | | | 88 | | | 88 |
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