FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company’s assets and liabilities valued at fair value on a recurring basis.

Asset/Liability class

Valuation methodology, inputs and assumptions

Classification

Investment securities

U.S Treasury securities (Trading securities and Investment securities AFS)

Fair Value is based on quoted prices in an active market.

Level 1 recurring fair value measurement.

Investment securities AFS (level 2)

Observable market prices of identical or similar securities are used where available.

Level 2 recurring fair value measurement.

Investment securities AFS (level 3)

If market prices are not readily available, value is based on discounted cash flows using the following significant inputs:

•Expected prepayment speeds

•Estimated credit losses

•Market liquidity adjustments

Level 3 recurring fair value measurement.

LHFS

Single family loans

Fair value is based on observable market data, including:

•Quoted market prices, where available

•Dealer quotes for similar loans

•Forward sale commitments

Level 2 recurring fair value measurement.

Equity securities

Observable market prices of identical or similar securities are used where available.

Level 2 recurring fair value measurement.

Mortgage servicing rights

Single family MSRs

For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 9, “Mortgage Banking Operations.”

Level 3 recurring fair value measurement.

Derivatives

Futures and Options

Fair value is based on closing exchange prices.

Level 1 recurring fair value measurement.

Forward sale commitments and interest rate swaps

Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including:

•Forward interest rates

•Interest rate volatilities

Level 2 recurring fair value measurement.

IRLC

The fair value considers several factors including:

•Fair value of the underlying loan based on quoted prices in the secondary market, when available

•Value of servicing

•Fall-out factor

Level 3 recurring fair value measurement.

Fair Value Hierarchy Measurement

The following tables present the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis:


	June 30, 2026
(in thousands)	Fair Value		Level 1		Level 2		Level 3

Assets:
Trading securities - U.S. Treasury securities	$	46,595	$	46,595	$	—	$	—
Securities available-for-sale:
Obligations of states and political subdivisions	462,720		—		462,720		—
Mortgage backed securities - residential	3,001,195		—		2,999,681		1,514
Mortgage backed securities - commercial	352,604		—		352,604		—
Collateralized loan obligations	230,582		—		230,582		—
Corporate bonds	45,383		—		45,342		41
U.S. Treasury securities	20,424		20,424		—		—
Agency debentures	6,307		—		6,307		—
Total securities available-for-sale	4,119,215		20,424		4,097,236		1,555

Single family LHFS	5,345		—		5,345		—

Single family mortgage servicing rights	58,836		—		—		58,836
Equity securities	15,858		—		15,858		—
Derivatives:
Forward loan sale commitments	105		—		105		—
Interest rate lock commitments	68		—		—		68
Interest rate swaps	8,829		—		8,829		—

Total assets	$	4,254,851	$	67,019	$	4,127,373	$	60,459
Liabilities:
Derivatives:
Forward loan sale commitments	$	90	$	—	$	90	$	—

Interest rate swaps	8,354		—		8,354		—
Futures	1		1		—		—
Total liabilities	$	8,445	$	1	$	8,444	$	—


	December 31, 2025
(in thousands)	Fair Value		Level 1		Level 2		Level 3

Assets:
Trading securities - U.S. Treasury securities	$	49,518	$	49,518	$	—	$	—
Securities available-for-sale:
Obligations of states and political subdivisions	471,159		—		471,159		—
Mortgage backed securities - residential	2,884,289		—		2,882,704		1,585
Mortgage backed securities - commercial	371,806		—		371,806		—
Collateralized loan obligations	188,316		—		188,316		—
Corporate bonds	49,915		—		49,870		45
U.S. Treasury securities	20,669		20,669		—		—
Agency debentures	7,231		—		7,231		—
Total securities available-for-sale	3,993,385		20,669		3,971,086		1,630

Single family LHFS	5,967		—		5,967		—
Single family mortgage servicing rights	58,095		—		—		58,095
Equity securities	15,567		—		15,567		—
Derivatives:
Forward loan sale commitments	148		—		148		—
Interest rate lock commitments	75		—		—		75
Interest rate swaps	9,406		—		9,406		—
Total assets	$	4,132,161	$	70,187	$	4,002,174	$	59,800
Liabilities:
Derivatives:
Forward loan sale commitments	$	28	$	—	$	28	$	—

Interest rate swaps	8,543		—		8,543		—
Futures	2		2		—		—
Total liabilities	$	8,573	$	2	$	8,571	$	—

Unobservable Inputs Used to Measure Fair Value

The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets as of June 30, 2026 and December 31, 2025. Balances and activity from these Level 3 assets are reported beginning on the Merger date of September 2, 2025. Therefore, there were no balances or activity for the quarter and six months ended June 30, 2025.


(dollars in thousands)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Low	High	Weighted Average

June 30, 2026
Investment securities AFS	$	1,555	Income approach	Implied spread to benchmark interest rate curve	2.25%	2.25%	2.25%

Interest rate lock commitments, net	68		Income approach	Fall-out factor	1.10%	37.43%	15.89%
				Value of servicing	0.66%	2.46%	1.52%

December 31, 2025
Investment securities AFS	$	1,630	Income approach	Implied spread to benchmark interest rate curve	2.25%	2.25%	2.25%

Interest rate lock commitments, net	75		Income approach	Fall-out factor	0.60%	20.65%	10.11%
				Value of servicing	1.04%	1.43%	1.15%

Fair Value Changes and Activity for Level 3

The following table presents fair value changes and activity for Level 3 investment securities AFS:


	Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025

Beginning balance	$	1,594	$	—	$	1,630	$	—


Payoffs/sales	(12)		—		(18)		—
Change in mark to market	(27)		—		(57)		—
Ending balance	$	1,555	$	—	$	1,555	$	—

The following table presents fair value changes and activity for Level 3 interest rate lock commitments:


	Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025

Beginning balance, net	$	120	$	—	$	75	$	—

Total realized/unrealized gains	252		—		685		—
Settlements	(304)		—		(692)		—
Ending balance, net	$	68	$	—	$	68	$	—

Fair Value Measurements, Nonrecurring

The following tables present collateral dependent loans that were measured at fair value on a nonrecurring basis, and still held on the consolidated balance sheets, as well as the valuation methodology and unobservable inputs, and the net gains or losses resulting from those fair value adjustments for the periods indicated.


	June 30, 2026
(in thousands)	Fair Value		Valuation Technique	Unobservable Input	Input or Range	Weighted Average

Commercial and industrial loans	$	3,277	Third party appraisal	Discount for market conditions	10% - 36%	15%
				Estimated selling costs	7% - 10%	7%

			Internal evaluation	Estimated selling costs	7% - 10%	9%

Commercial real estate loans	$	23,773	Third party appraisal	Discount for market conditions	10% - 36%	15%
				Estimated selling costs	7% - 10%	7%


			Internal evaluation	Vacancy, collection loss, concessions adjustment	15%	15%
				Capitalization rate	7%	7%


	December 31, 2025
(in thousands)	Fair Value		Valuation Technique	Unobservable Input	Input or Range	Weighted Average

Commercial and industrial loans	$	2,955	Third party appraisal	Discount for market conditions	10% - 20%	18%
				Estimated selling costs	10%	10%
			Third party evaluation	Estimated selling costs	7%	7%

Commercial real estate loans	$	23,006	Third party appraisal	Discount for market conditions	6% - 36%	24%
				Estimated selling costs	8% - 10%	10%
			Income approach	Vacancy, collection loss, concessions	15%	15%
				Capitalization rate	6%	6%


	Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025

Net (gain) loss: (1)
Commercial and industrial loans	$	(86)	$	—	$	(165)	$	—
Commercial real estate loans	23		—		(54)		—
Total	$	(63)	$	—	$	(219)	$	—

(1)The net (gain) loss represents re-measurements of collateral-dependent impaired loans with specific allowance for credit loss allocations.

The following tables present other real estate owned that were measured at fair value on a nonrecurring basis and still held on the consolidated balance sheets, as well as the valuation methodology, unobservable inputs and losses resulting from those fair value adjustments for the periods indicated.

June 30, 2026

(in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Input or Range

Weighted Average

Other real estate owned-commercial real estate

1,512

Third party appraisal

Estimated selling costs

December 31, 2025

(in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Input or Range

Weighted Average

Other real estate owned-commercial real estate

1,675

Income approach

Estimated selling costs

10%


	Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025

Losses due to write downs:
Other real estate owned-commercial real estate (1)	$	—	$	—	$	163	$	—

(1)Losses are included in other real estate owned related expense within noninterest expense on the consolidated income statements.

Estimated Fair Value and Carrying Value

The following is a summary of the estimated fair value and carrying value of the Company’s financial instruments not recorded at fair value in the consolidated financial statements as of June 30, 2026 and December 31, 2025:


	June 30, 2026
			Fair Value
(in thousands)	Carrying Value		Total		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	553,915	$	553,915	$	553,915	$	—	$	—
Securities held-to-maturity	1,286,813		1,120,088		—		1,117,088		3,000

Loan receivables, net	13,423,595		12,911,454		—		—		12,911,454
Mortgage servicing rights – multifamily and SBA	306		412		—		—		412
Liabilities:
Time deposits	$	1,945,480	$	1,933,009	$	—	$	1,933,009	$	—
Borrowings	80,000		80,000		80,000		—		—
Long-term debt	130,420		141,114		—		86,399		54,715


	December 31, 2025
			Fair Value
(in thousands)	Carrying Value		Total		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	1,029,983	$	1,029,983	$	1,029,983	$	—	$	—
Securities held-to-maturity	1,336,632		1,170,818		—		1,167,818		3,000

Loan receivables, net	14,023,617		13,665,520		—		—		13,665,520
Mortgage servicing rights – multifamily and SBA	27,737		28,276		—		—		28,276
Liabilities:
Time deposits	$	2,784,608	$	2,768,873	$	—	$	2,768,873	$	—

Long-term debt	192,014		203,272		—		148,925		54,347

Aggregate Fair Value and the Aggregate Unpaid Principal Balance of Loans Held for Sale

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option as of June 30, 2026 and December 31, 2025:


	June 30, 2026						December 31, 2025
(in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregated Unpaid Principal Balance		Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregated Unpaid Principal Balance

Single family LHFS	$	5,345	$	5,217	$	128	$	5,967	$	5,883	$	84

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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