v3.26.1
Borrowed Funds
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowed Funds Borrowed Funds
Short-term borrowings
Short-term borrowings include securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances, which all generally mature within one to three days from the transaction date.
A summary of short-term borrowed funds without stated maturity dates was as follows for the periods indicated:
Three Months Ended June 30
20262025
(dollars in thousands)Maximum Month End BalanceAverage BalanceWeighted Average Interest Rate During the PeriodMaximum Month End BalanceAverage BalanceWeighted Average Interest Rate During the Period
Securities sold under agreements to repurchase without stated maturity dates$116,012 $115,347 3.46 %$43,208 $40,802 3.14 %
Federal funds purchased— 1 4.58 %— — 0.00 %
FRB Discount Window— 275 3.75 %— 859 4.50 %
Six Months Ended June 30
20262025
(dollars in thousands)Maximum Month End BalanceAverage BalanceWeighted Average Interest Rate During the PeriodMaximum Month End BalanceAverage BalanceWeighted Average Interest Rate During the Period
Securities sold under agreements to repurchase without stated maturity dates$116,012 $101,127 3.44%$47,310 $42,150 3.18%
Federal funds purchased— 1 4.67%— 11 5.43%
FRB Discount Window3,700 250 3.14%— 446 4.50%
Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $143.6 million and $87.8 million as of June 30, 2026 and December 31, 2025, respectively. Such securities remain under our control. We may be required to provide additional collateral based on changes to the fair value of underlying securities.
Securities sold under repurchase agreements without stated maturity dates were as follows as of the dates indicated:
June 30, 2026December 31, 2025
(dollars in thousands)AmountRateAmountRate
Securities sold under agreements to repurchase without stated maturity dates$116,012 3.49%$68,000 3.45%
We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts as of the dates indicated:
(dollars in thousands)June 30,
2026		December 31,
2025
Pledged to secure borrowed funds$447,298 $424,163 
Pledged to secure repurchase agreements143,628 87,752 
Pledged for public deposits and for other purposes necessary or required by law70,029 69,337 
Total$660,955 $581,252 
AFS securities pledged to repurchase agreements consisted of the following as of the dates indicated:
(dollars in thousands)June 30,
2026		December 31,
2025
U.S. Treasury$19,712 $78,992 
Agency mortgage-backed securities6,198 6,928 
Agency collateralized mortgage obligations117,718 1,832 
Total$143,628 $87,752 
AFS securities pledged to repurchase agreements are monitored to ensure the appropriate level is collateralized. In the event of maturities, calls, significant principal repayments, or significant decline in market values, we have an adequate level of AFS securities to pledge to satisfy collateral requirements.
As of June 30, 2026, we had the ability to borrow up to an additional $403.0 million without pledging additional collateral.
FHLB advances

FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities, and FHLB stock.
The following table lists the maturities and weighted average interest rates of FHLB advances as of the dates indicated:
June 30, 2026December 31, 2025
(dollars in thousands)AmountRateAmountRate
Fixed rate due 2026$— 0.00 %$45,000 3.92%
Subordinated notes
We have $30 million in aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Notes"). The Notes initially had a fixed interest rate of 3.25% until June 15, 2026, after which time and until maturity on June 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the then-current 3-month SOFR plus 256 basis points. As of June 15, 2026, the Notes are redeemable by us at any time at our option, in whole or in part. The Notes are not subject to redemption at the option of the holders. Additionally, the Notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations.
The following table summarizes our outstanding subordinated notes as of the dates indicated:
June 30, 2026December 31, 2025
(dollars in thousands)AmountRateAmountRate
Fixed rate at 3.25% to floating, due 2031
$30,000 6.23%$30,000 3.25%
Unamortized issuance costs(441)(486)
Total subordinated debt, net$29,559 $29,514