v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 7. Fair Value Measurements
Recurring Measurements
Assets measured at fair value on a recurring basis are outlined below, summarized by fair value hierarchy (dollars in thousands):
June 30, 2026
TotalLevel 1Level 2Level 3
Investment securities, available-for-sale:
U.S. Government agency securities$22,524 $— $22,524 $— 
Asset-backed securities226,569 — 226,569 — 
Obligations of states and political subdivisions31,307 — 31,307 — 
Residential mortgage-backed securities434,913 — 434,913 — 
Collateralized mortgage obligation securities51,512 — 51,512 — 
Commercial mortgage-backed securities848,065 — 848,065 — 
Total investment securities, available-for-sale1,614,890 — 1,614,890 — 
Commercial loans, at fair value114,162 — — 114,162 
Credit enhancement asset30,733 — 30,733 — 
$1,759,785 $— $1,645,623 $114,162 
December 31, 2025
TotalLevel 1Level 2Level 3
Investment securities, available-for-sale:
U.S. Government agency securities$25,109 $— $25,109 $— 
Asset-backed securities234,101 — 234,101 — 
Obligations of states and political subdivisions28,563 — 28,563 — 
Residential mortgage-backed securities464,323 — 464,323 — 
Collateralized mortgage obligation securities57,580 — 57,580 — 
Commercial mortgage-backed securities862,074 — 862,074 — 
Total investment securities, available-for-sale1,671,750 — 1,671,750 — 
Commercial loans, at fair value139,389 — — 139,389 
Credit enhancement asset31,138 — 31,138 — 
$1,842,277 $— $1,702,888 $139,389 
Activity in Level 3 Commercial loans at fair value is summarized below (dollars in thousands):
Six Months Ended June 30,
20262025
Beginning balance$139,389 $223,115 
Total net gains (realized/unrealized) included in earnings(1)
136 705 
Purchases, advances, sales and settlements:
Advances133 2,953 
Settlements(25,496)(41,297)
Ending balance$114,162 $185,476 
Amount included in earnings attributable to the change in unrealized gains (losses)
     related to assets still held at period end		$— $— 
(1)For commercial loans at fair value, gains or losses are recognized in Non-interest income—Net realized and unrealized gains on commercial loans, at fair value in the Condensed Consolidated Statement of Operations.
Information related to assumptions used in the valuation of Level 3 instruments is as follows:
Discount Rate Assumption
At June 30, 2026At December 31, 2025
RangeWeighted averageRangeWeighted average
Commercial loans, at fair value:
Commercial - SBA5.71 %5.71 %5.73 %5.73 %
Non-SBA commercial real estate8.50 %8.50 %
6.50%-8.98%
6.94 %
Non-Recurring Measurements
Assets measured at fair value on a nonrecurring basis consist of certain loans that are collateral-dependent with specific reserves that are recognized in Loans, net on our Condensed Consolidated Balance Sheets, and Other real estate owned.
Collateral-dependent loans were $28.9 million and $15.2 million as of June 30, 2026 and December 31, 2025, respectively. Loans recorded at amortized cost that are in non-accrual status are treated as collateral dependent to the extent they have resulted from borrower financial difficulty (and not from administrative delays or other mitigating factors) and are not brought current. For these loans, fair value is measured based on inputs including recent sales of similar collateral, and is a Level 3 measurement. At June 30, 2026, the Company’s basis in the non-accrual loans, or the loan principal of $34.1 million was reduced by specific reserves of $5.2 million within the ACL as of that date, representing the deficiency between principal and estimated collateral values, which were reduced by estimated costs to sell.
Other real estate owned (OREO) were $62.0 million and $60.7 million as of June 30, 2026 and December 31, 2025, respectively and are periodically measured for impairment based on any decline in fair value below carrying value. For OREO, fair value is based upon appraisals of the underlying collateral by third-party appraisers, reduced by 7% to 10% for estimated selling costs, and is a Level 3 non-recurring measurement. During the three and six months ended June 30, 2026 and 2025, the Company did not recognize any unrealized losses from the impairment of OREO and did not recognize any gains (losses) on the disposition of OREO. Unrealized and realized gains or losses on OREO are recognized in Other Non-interest expense in the Condensed Consolidated Statements.
Fair Value of Other Financial Instruments
The following tables provide information regarding carrying amounts and estimated fair values of all the Company’s financial instruments (dollars in thousands):
June 30, 2026
Fair Value
Carrying
amount		Total
Fair Value		Level 1Level 2Level 3
ASSETS:
Investment securities, available-for-sale$1,614,890 $1,614,890 $— $1,614,890 $— 
Commercial loans, at fair value 114,162 114,162 — — 114,162 
Loans, net of deferred loan fees and costs7,073,906 7,046,464 — — 7,046,464 
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks50,115 50,115 — — 50,115 
Accrued interest receivable43,342 43,342 — 43,342 — 
Credit enhancement asset30,733 30,733 — 30,733 — 
LIABILITIES:
Deposits
Demand and interest checking$7,353,151 $7,353,151 $— $7,353,151 $— 
Savings and money market 123,051 123,051 — 123,051 — 
Short-term borrowings744,000 744,000 — 744,000 — 
Senior debt196,528 204,262 — 204,262 — 
Subordinated debentures13,401 9,668 — — 9,668 
Other long-term borrowings4,327 4,327 — 4,327 — 
Other liabilities: Accrued interest payable5,457 5,457 — 5,457 — 
December 31, 2025
Fair Value
Carrying
amount		Total
Fair Value		Level 1Level 2Level 3
ASSETS:
Investment securities, available-for-sale$1,671,750 $1,671,750 $— $1,671,750 $— 
Commercial loans, at fair value 139,389 139,389 — — 139,389 
Loans, net of deferred loan fees and costs7,116,676 7,073,348 — — 7,073,348 
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks25,205 25,205 — — 25,205 
Accrued interest receivable43,090 43,090 — 43,090 — 
Credit enhancement asset31,138 31,138 — 31,138 — 
LIABILITIES:
Deposits
Demand and interest checking$7,827,037 $7,827,037 $— $7,827,037 $— 
Savings and money market 338,459 338,459 — 338,459 — 
Short-term borrowings199,000 199,000 — 199,000 — 
Senior debt196,253 202,503 — 202,503 — 
Subordinated debentures 13,401 11,220 — — 11,220 
Other long-term borrowings13,712 13,712 — 13,712 — 
Other liabilities: Accrued interest payable6,802 6,802 — 6,802 —