| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. | | | | | | | | | | | | | | | | | | (in thousands) Description of Financial Instruments | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | Measurement Categories: Changes in Fair Value Recorded In1 | | June 30, 2026 | | | | | | | Securities available-for-sale: | | | | | | Commercial mortgage-backed securities, mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 1,168,412 | | $ | — | | $ | 1,168,412 | | $ | — | | OCI | | | | | | | | Debentures of government sponsored agencies | $ | 23,593 | | $ | — | | $ | 23,593 | | $ | — | | OCI | | | | | | | | | | | | | | Obligations of state and political subdivisions | $ | 50,826 | | $ | — | | $ | 50,826 | | $ | — | | OCI | | | | | | | | | | | | | | Derivative financial assets (interest rate contracts) | $ | 202 | | $ | — | | $ | 202 | | $ | — | | NI | | | | | | | | December 31, 2025 | | | | | | | Securities available-for-sale: | | | | | | Commercial mortgage-backed securities, mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 1,250,230 | | $ | — | | $ | 1,250,230 | | $ | — | | OCI | | | | | | | | Debentures of government sponsored agencies | $ | 23,694 | | $ | — | | $ | 23,694 | | $ | — | | OCI | | | | | | | | | | | | | | Obligations of state and political subdivisions | $ | 53,888 | | $ | — | | $ | 53,888 | | $ | — | | OCI | | | | | | | | | | | | | | Derivative financial assets (interest rate contracts) | $ | 148 | | $ | — | | $ | 148 | | $ | — | | NI | | Derivative financial liabilities (interest rate contracts) | $ | 11 | | $ | — | | $ | 11 | | $ | — | | NI |
1 Other comprehensive income ("OCI") or net income ("NI").
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| Schedule of Fair Value of Financial Instruments |
The table below is a summary of fair value estimates for financial instruments as of June 30, 2026 and December 31, 2025, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of June 30, 2026 and December 31, 2025. There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of June 30, 2026 or December 31, 2025. See further discussion on values within Note 4, Investment Securities, to the consolidated financial statements in this Form 10-Q. | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (in thousands) | Carrying Amounts | Fair Value | Fair Value Hierarchy | | Carrying Amounts | Fair Value | Fair Value Hierarchy | | Financial assets (recorded at amortized cost) | | | | | | | | Cash and cash equivalents | $ | 279,639 | | $ | 279,639 | | Level 1 | | $ | 225,303 | | $ | 225,303 | | Level 1 | | | | | | | | | | Loans, net of allowance for credit losses | 2,078,512 | | 2,034,009 | | Level 3 | | 2,090,764 | | 2,043,150 | | Level 3 | | Interest receivable | 11,308 | | 11,308 | | Level 2 | | 11,561 | | 11,561 | | Level 2 | | Financial liabilities (recorded at amortized cost) | | | | | | | | Time deposits | 158,224 | | 158,477 | | Level 2 | | 205,686 | | 206,040 | | Level 2 | | | | | | | | | | | | | | | | | | | | | | | | | | Subordinated notes | 43,955 | | 44,287 | | Level 2 | | 43,857 | | 44,852 | | Level 2 | | Interest payable | 1,516 | | 1,516 | | Level 2 | | 2,418 | | 2,418 | | Level 2 |
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