| Summary of Financial Assets Measured at Fair Value on Recurring Basis |
The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
(Dollars in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities |
|
$ |
177,800 |
|
|
$ |
— |
|
|
$ |
177,800 |
|
|
$ |
— |
|
U.S. Treasury and agencies |
|
|
69,401 |
|
|
|
— |
|
|
|
69,401 |
|
|
|
— |
|
State and municipals |
|
|
42,911 |
|
|
|
— |
|
|
|
42,911 |
|
|
|
— |
|
Corporate bonds |
|
|
26,904 |
|
|
|
— |
|
|
|
26,404 |
|
|
|
500 |
|
Total securities available for sale |
|
$ |
317,016 |
|
|
$ |
— |
|
|
$ |
316,516 |
|
|
$ |
500 |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi trust assets |
|
$ |
712 |
|
|
$ |
712 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest rate swap asset |
|
|
209 |
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan |
|
$ |
712 |
|
|
$ |
712 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest rate swap liability |
|
|
235 |
|
|
|
— |
|
|
|
235 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
(Dollars in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities |
|
$ |
185,087 |
|
|
$ |
— |
|
|
$ |
185,087 |
|
|
$ |
— |
|
U.S. Treasury and agencies |
|
|
72,538 |
|
|
|
— |
|
|
|
72,538 |
|
|
|
— |
|
State and municipals |
|
|
44,484 |
|
|
|
— |
|
|
|
44,484 |
|
|
|
— |
|
Corporate bonds |
|
|
30,819 |
|
|
|
— |
|
|
|
30,819 |
|
|
|
— |
|
Total securities available for sale |
|
$ |
332,928 |
|
|
$ |
— |
|
|
$ |
332,928 |
|
|
$ |
— |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
Rabbi trust assets |
|
$ |
682 |
|
|
$ |
682 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest rate swap asset |
|
|
613 |
|
|
|
— |
|
|
|
613 |
|
|
|
— |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan |
|
$ |
682 |
|
|
$ |
682 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest rate swap liability |
|
|
654 |
|
|
|
— |
|
|
|
654 |
|
|
|
— |
|
As of December 31, 2025, there were no securities reported as Level 3 assets in the fair value hierarchy. During the second quarter of 2026, one security transferred from Level 2 to Level 3 as there was no observable market price for a similar investment.
|
| Summary of Assets Measured at Fair Value |
The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
(Dollars in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Other equity investments |
|
$ |
4,999 |
|
|
$ |
— |
|
|
$ |
1,993 |
|
|
$ |
3,006 |
|
Collateral-dependent loans |
|
|
10,140 |
|
|
|
— |
|
|
|
— |
|
|
|
10,140 |
|
OREO |
|
|
1,601 |
|
|
|
— |
|
|
|
— |
|
|
|
1,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
(Dollars in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Other equity investments |
|
$ |
4,910 |
|
|
$ |
— |
|
|
$ |
1,904 |
|
|
$ |
3,006 |
|
Collateral-dependent loans |
|
|
1,919 |
|
|
|
— |
|
|
|
— |
|
|
|
1,919 |
|
Loans held for sale |
|
|
14,769 |
|
|
|
— |
|
|
|
14,769 |
|
|
|
— |
|
OREO |
|
|
1,683 |
|
|
|
— |
|
|
|
— |
|
|
|
1,683 |
|
|
| Summary of Quantitative Information about Level 3 Fair Value Measurements of Assets Measured on a Nonrecurring Basis |
The following tables present quantitative information about Level 3 fair value measurements of assets measured on a nonrecurring basis as of the dates stated.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Balance as of June 30, 2026 |
|
|
Unobservable Input |
|
Range |
|
Other equity investments |
|
|
|
|
|
|
|
|
Probability weighted expected return technique |
|
$ |
3,006 |
|
|
Discount Rate |
|
|
20 |
% |
Collateral-dependent loans |
|
|
|
|
|
|
|
|
Discounted appraised value technique |
|
|
10,140 |
|
|
Selling Costs |
|
5% - 10% |
|
|
|
|
|
|
Discount Rate |
|
|
10 |
% |
OREO |
|
|
|
|
|
|
|
|
Discounted appraised value technique |
|
|
1,379 |
|
|
Selling Costs |
|
|
7 |
% |
Discounted cash flows technique |
|
|
222 |
|
|
Discount Rate |
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Balance as of December 31, 2025 |
|
|
Unobservable Input |
|
Range |
|
Other equity investments |
|
|
|
|
|
|
|
|
Probability weighted expected return technique |
|
$ |
3,006 |
|
|
Discount Rate |
|
|
20 |
% |
Collateral-dependent loans |
|
|
|
|
|
|
|
|
Discounted appraised value technique |
|
|
1,919 |
|
|
Selling Costs |
|
|
5 |
% |
OREO |
|
|
|
|
|
|
|
|
Discounted appraised value technique |
|
|
1,461 |
|
|
Selling Costs |
|
|
7 |
% |
Discounted cash flows technique |
|
|
222 |
|
|
Discount Rate |
|
|
20 |
% |
Fair values for collateral-dependent loans are generally based on third-party appraisals of the underlying collateral, adjusted for estimated selling costs and other factors considered appropriate by management. Such adjustments may include discount rates applied to the appraised fair value to reflect management’s estimate of the realizable value of the underlying collateral. These adjustments represent significant unobservable inputs and, accordingly, the resulting fair value measurements are classified within Level 3 of the fair value hierarchy.
|
| Summary of Estimated Fair Values and Related Carrying Amounts and Valuation Level of Financial Instruments |
The following tables present the estimated fair values, related carrying amounts, and valuation level of financial instruments as of the dates stated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
(Dollars in thousands) |
|
Carrying Value |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
61,691 |
|
|
$ |
61,691 |
|
|
$ |
61,691 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal funds sold |
|
|
2,353 |
|
|
|
2,353 |
|
|
|
2,353 |
|
|
|
— |
|
|
|
— |
|
Securities available for sale |
|
|
317,016 |
|
|
|
317,016 |
|
|
|
— |
|
|
|
316,516 |
|
|
|
500 |
|
Restricted equity investments |
|
|
16,784 |
|
|
|
16,784 |
|
|
|
— |
|
|
|
16,784 |
|
|
|
— |
|
Other equity investments |
|
|
4,999 |
|
|
|
4,999 |
|
|
|
— |
|
|
|
1,993 |
|
|
|
3,006 |
|
Other investments |
|
|
17,991 |
|
|
|
17,991 |
|
|
|
— |
|
|
|
— |
|
|
|
17,991 |
|
Loans held for investment, net |
|
|
1,831,422 |
|
|
|
1,789,370 |
|
|
|
— |
|
|
|
— |
|
|
|
1,789,370 |
|
Accrued interest receivable |
|
|
10,140 |
|
|
|
10,140 |
|
|
|
— |
|
|
|
10,140 |
|
|
|
— |
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
396,284 |
|
|
$ |
396,284 |
|
|
$ |
396,284 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest-bearing demand and money market |
|
|
592,450 |
|
|
|
592,450 |
|
|
|
— |
|
|
|
592,450 |
|
|
|
— |
|
Savings |
|
|
101,702 |
|
|
|
101,702 |
|
|
|
— |
|
|
|
101,702 |
|
|
|
— |
|
Time |
|
|
771,897 |
|
|
|
771,505 |
|
|
|
— |
|
|
|
771,505 |
|
|
|
— |
|
FHLB borrowings |
|
|
150,000 |
|
|
|
151,157 |
|
|
|
— |
|
|
|
151,157 |
|
|
|
— |
|
Subordinated notes, net |
|
|
14,688 |
|
|
|
13,914 |
|
|
|
— |
|
|
|
— |
|
|
|
13,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
(Dollars in thousands) |
|
Carrying Value |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
115,949 |
|
|
$ |
115,949 |
|
|
$ |
115,949 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal funds sold |
|
|
1,851 |
|
|
|
1,851 |
|
|
|
1,851 |
|
|
|
— |
|
|
|
— |
|
Securities available for sale |
|
|
332,928 |
|
|
|
332,928 |
|
|
|
— |
|
|
|
332,928 |
|
|
|
— |
|
Restricted equity investments |
|
|
19,016 |
|
|
|
19,016 |
|
|
|
— |
|
|
|
19,016 |
|
|
|
— |
|
Other equity investments |
|
|
4,910 |
|
|
|
4,910 |
|
|
|
— |
|
|
|
1,904 |
|
|
|
3,006 |
|
Other investments |
|
|
20,781 |
|
|
|
20,781 |
|
|
|
— |
|
|
|
— |
|
|
|
20,781 |
|
Loans held for sale |
|
|
14,769 |
|
|
|
14,769 |
|
|
|
— |
|
|
|
14,769 |
|
|
|
— |
|
Loans held for investment, net |
|
|
1,846,273 |
|
|
|
1,786,730 |
|
|
|
— |
|
|
|
— |
|
|
|
1,786,730 |
|
Accrued interest receivable |
|
|
10,787 |
|
|
|
10,787 |
|
|
|
— |
|
|
|
10,787 |
|
|
|
— |
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
398,541 |
|
|
$ |
398,541 |
|
|
$ |
398,541 |
|
|
$ |
— |
|
|
$ |
— |
|
Interest-bearing demand and money market |
|
|
612,648 |
|
|
|
612,648 |
|
|
|
— |
|
|
|
612,648 |
|
|
|
— |
|
Savings |
|
|
100,346 |
|
|
|
100,346 |
|
|
|
— |
|
|
|
100,346 |
|
|
|
— |
|
Time |
|
|
799,627 |
|
|
|
802,308 |
|
|
|
— |
|
|
|
802,308 |
|
|
|
— |
|
FHLB borrowings |
|
|
150,000 |
|
|
|
150,116 |
|
|
|
— |
|
|
|
150,116 |
|
|
|
— |
|
Subordinated notes, net |
|
|
14,716 |
|
|
|
13,905 |
|
|
|
— |
|
|
|
— |
|
|
|
13,905 |
|
|