Fair Value of Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2026 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis by Level Within Hierarchy |
The table below presents the balances of assets and liabilities measured at fair value on a recurring basis by level within the hierarchy at June 30, 2026 and December 31, 2025:
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June 30, 2026 |
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(In thousands of dollars) |
|
Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Available-for-sale securities |
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|
|
|
|
|
|
|
|
|
|
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U.S. Treasuries |
|
$ |
5,911 |
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|
$ |
- |
|
|
$ |
5,911 |
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|
$ |
- |
|
Municipal obligations |
|
|
56,511 |
|
|
|
- |
|
|
|
56,511 |
|
|
|
- |
|
Mortgage-backed securities |
|
|
204,531 |
|
|
|
- |
|
|
|
204,531 |
|
|
|
- |
|
Asset-backed securities |
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|
26,304 |
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|
|
- |
|
|
|
26,304 |
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|
|
- |
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Corporate debt securities |
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|
55,325 |
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|
|
- |
|
|
|
55,325 |
|
|
|
- |
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Total |
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$ |
348,582 |
|
|
$ |
- |
|
|
$ |
348,582 |
|
|
$ |
- |
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Other |
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|
|
|
|
|
|
|
|
|
|
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Derivative assets |
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$ |
5,561 |
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|
$ |
- |
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|
$ |
5,561 |
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|
$ |
- |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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December 31, 2025 |
|
(In thousands of dollars) |
|
Total |
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|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
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Assets: |
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|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries |
|
$ |
5,850 |
|
|
$ |
- |
|
|
$ |
5,850 |
|
|
$ |
- |
|
Municipal obligations |
|
|
58,642 |
|
|
|
- |
|
|
|
58,642 |
|
|
|
- |
|
Mortgage-backed securities |
|
|
180,060 |
|
|
|
- |
|
|
|
180,060 |
|
|
|
- |
|
Asset-backed securities |
|
|
27,000 |
|
|
|
- |
|
|
|
27,000 |
|
|
|
- |
|
Corporate debt securities |
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|
58,951 |
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|
|
- |
|
|
|
58,451 |
|
|
|
500 |
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Total |
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$ |
330,503 |
|
|
$ |
- |
|
|
$ |
330,003 |
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|
$ |
500 |
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Other |
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|
|
|
|
|
|
|
|
|
|
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Derivative assets |
|
$ |
6,135 |
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|
$ |
- |
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|
$ |
6,135 |
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|
$ |
- |
|
|
| Summary of Assets measured at Fair Value on Recurring Basis |
The changes in Level 3 assets measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 are summarized as follows:
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Corporate |
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(In thousands of dollars) |
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Debt Securities |
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Fair value, January 1, 2026 |
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$ |
500 |
|
Total net gains included in: |
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Net income |
|
|
- |
|
Other comprehensive income |
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|
- |
|
Purchases, sales, issuances and settlements, net |
|
|
(500 |
) |
Transfers into/out of Level 3 |
|
|
- |
|
Fair value, June 30, 2026 |
|
$ |
- |
|
|
|
|
|
Fair value, January 1, 2025 |
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|
500 |
|
Total net gains included in: |
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Net income |
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|
- |
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Other comprehensive income |
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|
- |
|
Purchases, sales, issuances and settlements, net |
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|
- |
|
Transfers into/out of Level 3 |
|
|
- |
|
Fair value, December 31, 2025 |
|
$ |
500 |
|
|
| Summary of Assets and Liabilities Carried on Balance Sheet by Caption and by Level within Valuation Hierarchy for Nonrecurring Change in Fair Value |
The following table presents the assets and liabilities carried on the balance sheet by caption and by level within the valuation hierarchy (as described above) for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2026 and the year ended December 31, 2025.
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June 30, 2026 |
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(In thousands of dollars) |
|
Total |
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|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Repossessed assets |
|
$ |
620 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
620 |
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Collateral-dependent loans, net |
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|
17,393 |
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|
|
- |
|
|
|
- |
|
|
|
17,393 |
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Total |
|
$ |
18,013 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
18,013 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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December 31, 2025 |
|
(In thousands of dollars) |
|
Total |
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|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
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Collateral-dependent loans, net |
|
$ |
17,997 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
17,997 |
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Total |
|
$ |
17,997 |
|
|
$ |
- |
|
|
$ |
- |
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|
$ |
17,997 |
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| Summary of Quantitative Information about Unobservable Inputs used in Level 3 Fair Value Measurements |
The following tables present quantitative information about the unobservable inputs used in Level 3 fair value measurements at June 30, 2026 and December 31, 2025:
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June 30, 2026 |
|
(In thousands of dollars) |
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Financial Instrument |
|
Net Carrying
Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Input |
Repossessed assets |
|
$ |
620 |
|
|
Third party appraisal or broker's price opinion |
|
Management discount for costs to sell |
|
10% |
Collateral-dependent loans,
net |
|
|
17,393 |
|
|
Third party appraisal or broker's price opinion |
|
Management discount for costs to sell |
|
10% |
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|
|
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December 31, 2025 |
|
(In thousands of dollars) |
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Financial Instrument |
|
Net Carrying
Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Input |
Collateral-dependent loans,
net |
|
$ |
17,997 |
|
|
Third party appraisal or broker's price opinion |
|
Management discount for costs to sell |
|
10% |
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| Summary of Estimated Fair Value Amounts |
The use of different market assumptions and/or estimation techniques may have a material effect on the estimated fair value amounts at June 30, 2026.
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June 30, 2026 |
|
(In thousands of dollars) |
|
Carrying
Amount |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
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|
|
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|
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|
Cash and cash equivalents |
|
$ |
34,222 |
|
|
$ |
34,222 |
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|
$ |
34,222 |
|
|
$ |
- |
|
|
$ |
- |
|
Loans held for sale |
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|
223,112 |
|
|
|
223,112 |
|
|
|
- |
|
|
|
223,112 |
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|
|
|
Loans held for investment, net |
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|
1,685,553 |
|
|
|
1,666,173 |
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|
|
- |
|
|
|
- |
|
|
|
1,666,173 |
|
Non-marketable equity securities |
|
|
11,053 |
|
|
|
11,053 |
|
|
|
- |
|
|
|
- |
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|
|
11,053 |
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Financial Liabilities: |
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|
|
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Deposits |
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2,047,671 |
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|
1,912,777 |
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|
|
- |
|
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|
1,912,777 |
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|
|
- |
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Other borrowings |
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|
75,000 |
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|
75,000 |
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|
|
- |
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|
75,000 |
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|
- |
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|
December 31, 2025 |
|
(In thousands of dollars) |
|
Carrying
Amount |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,767 |
|
|
$ |
79,767 |
|
|
$ |
79,767 |
|
|
$ |
- |
|
|
$ |
- |
|
Loans held for sale |
|
|
170,933 |
|
|
|
170,933 |
|
|
|
- |
|
|
|
170,933 |
|
|
|
|
Loans held for investment, net |
|
|
1,598,572 |
|
|
|
1,565,718 |
|
|
|
- |
|
|
|
- |
|
|
|
1,565,718 |
|
Non-marketable equity securities |
|
|
8,759 |
|
|
|
8,759 |
|
|
|
- |
|
|
|
- |
|
|
|
8,759 |
|
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,987,684 |
|
|
|
1,884,592 |
|
|
|
- |
|
|
|
1,884,592 |
|
|
|
- |
|
Other borrowings |
|
|
30,000 |
|
|
|
30,002 |
|
|
|
- |
|
|
|
30,002 |
|
|
|
- |
|
|