v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company determines the fair values of its financial instruments based on the requirements established in ASC 820, Fair Value Measurements (“ASC 820”), which provides a framework for measuring fair value in accordance with U.S. GAAP and requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair value as the exit price that would be received to sell an asset or paid to transfer a liability in the principal (or most advantageous) market in an orderly transaction between market participants at the measurement date. The Company’s fair values for financial instruments at June 30, 2026 and December 31, 2025 were determined based on this guidance.
The following methods and assumptions were used to estimate the fair value of the Company’s financial instruments:
Cash and cash equivalents - The estimated fair value equals the carrying amount.
Available-for-sale securities – The fair value is based on quoted market prices, if available (Level 1).  If quoted market prices are not available, management utilizes third-party pricing services or broker quotations (Level 2).  Level 2 measurements generally include U.S. government and agency securities and other securities valued using observable market inputs.
Held-to-maturity securities – The estimated fair value is determined using quoted market prices, if available.  If quoted market prices are not available, management utilizes third-party pricing services or broker quotations.  
Equity investments - Equity investments consist of securities without readily determinable fair values and are accounted for under the measurement alternative in accordance with ASC 321. Accordingly, these investments are carried at cost, less impairment, and adjusted for observable price changes in orderly transactions for identical or similar investments, with any such adjustments or impairment recognized in net income.
Loans held-for-sale - The fair value of is based on whole loan forward prices obtained from government-sponsored enterprises.
Loans held-for-portfolio - The estimated fair value is determined by applying adjustments for credit-related factors and differences between the contractual yields on the portfolio and current market yields for loans with similar characteristics. The estimated fair value reflects exit price assumptions, including liquidity premiums or discounts.
Mortgage servicing rights –The fair value is determined using a discounted cash flow model that incorporated interest rates, prepayment speeds, discount rates, and delinquency assumptions as inputs.
Time deposits - The estimated fair value is based on the difference between interest rates paid on the Company’s time deposits and current market rates for time deposits with comparable characteristics.
Borrowings - The estimated fair value is determined using the contractual cash flows of each debt instrument discounted at the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
Subordinated notes - The estimated fair value is determined using the contractual cash flows discounted at current borrowing rates for similar long-term debt instruments with similar terms and remaining time to maturity.
A description of the valuation methodologies used for collateral dependent loans, OREO and repossessed assets, and off-balance sheet loan commitments is as follows:
Collateral dependent loans - The estimated fair value is determined using the current appraised value of the collateral, less estimated costs to sell.
OREO and repossessed assets – The fair value is determined using the current appraised value of the collateral less estimated costs to sell. 
Off-balance sheet financial instruments - The estimated fair value, which consisted entirely of loan commitments at June 30, 2026 and December 31, 2025, is determined based on fees charged to others to enter into similar agreements, taking into account the remaining terms of the agreements and credit standing of the counterparties. The estimated fair value of these commitments was not significant at June 30, 2026 and December 31, 2025.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the lowest-level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. There were no transfers between levels during the three and six months ended June 30, 2026 and 2025.
The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether recognized or recorded at fair value or not as of the dates indicated (in thousands):
June 30, 2026Fair Value Measurements Using:
Carrying
Value		Estimated
Fair Value		Level 1Level 2Level 3
FINANCIAL ASSETS:
Cash and cash equivalents$120,072 $120,072 $120,072 $— $— 
Available-for-sale securities7,575 7,575 — 7,575 — 
Held-to-maturity securities1,876 1,572 — 1,572 — 
Equity securities5,000 5,000 — — 5,000 
Loans held-for-sale1,591 1,591 — 1,591 — 
   Loans held-for-portfolio, net883,549 850,960 — — 850,960 
Mortgage servicing rights4,277 4,277 — — 4,277 
FINANCIAL LIABILITIES:
   Time deposits298,045 298,072 — 298,072 — 
Subordinated notes7,822 8,227 — 8,227 — 
December 31, 2025Fair Value Measurements Using:
Carrying
Value		Estimated
Fair Value		Level 1Level 2Level 3
FINANCIAL ASSETS:
Cash and cash equivalents$138,453 $138,453 $138,453 $— $— 
Available-for-sale securities7,699 7,699 — 7,699 — 
Held-to-maturity securities1,892 1,578 — 1,578 — 
Loans held-for-sale542 542 — 542 — 
Loans held-for-portfolio, net896,928 868,356 — — 868,356 
Mortgage servicing rights4,183 4,183 — — 4,183 
FINANCIAL LIABILITIES:
Time deposits299,593 300,290 — 300,290 — 
Borrowings10,000 10,000 — 10,000 — 
Subordinated notes7,801 8,102 — 8,102 — 
The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands):
Fair Value at June 30, 2026
DescriptionTotalLevel 1Level 2Level 3
Municipal bonds$5,533 $— $5,533 $— 
Agency mortgage-backed securities2,042 — 2,042 — 
Mortgage servicing rights4,277 — — 4,277 
Fair Value at December 31, 2025
DescriptionTotalLevel 1Level 2Level 3
Municipal bonds$5,482 $— $5,482 $— 
Agency mortgage-backed securities2,217 — 2,217 — 
Mortgage servicing rights4,183 — — 4,183 
The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis as of the dates indicated:
June 30, 2026
Financial InstrumentValuation TechniqueUnobservable Input(s)Range
(Weighted-Average)
Mortgage Servicing RightsDiscounted cash flowPrepayment speed assumption
125%-579% (125%)
Discount rate
9.0%-13.5% (10%)
Average debt service cost per residential loan
$96.00
December 31, 2025
Financial InstrumentValuation TechniqueUnobservable Input(s)Range
(Weighted-Average)
Mortgage Servicing RightsDiscounted cash flowPrepayment speed assumption
125%-368% (125%)
Discount rate
9.0%-13.5% (10%)
Average debt service cost per residential loan
$96.00
Generally, significant increases in the prepayment speed assumption or discount rate utilized in the fair value measurement of the MSRs will result in a negative fair value adjustment (and a decrease in fair value). Conversely, a significant decrease in the prepayment speed assumption and discount rate will result in a positive fair value adjustment (and an increase in fair value). An increase in the weighted average life assumption will result in a decrease in the prepayment speed assumption and, conversely, a decrease in the weighted average life assumption will result in an increase in the prepayment speed assumption. Because certain significant valuation inputs used to measure Level 3 assets are unobservable, management is required to make judgments in estimating their fair values.
There were no assets or liabilities (excluding MSRs) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2026 and 2025. 
MSRs are measured at fair value using significant unobservable inputs (Level 3) on a recurring basis, and a reconciliation of changes in the carrying amount of MSRs in presented in “Note 6—Mortgage Servicing Rights.
The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands):
Fair Value at June 30, 2026
TotalLevel 1Level 2Level 3
Equity securities$5,000 $— $— $5,000 
OREO and repossessed assets47 — — 47 
Collateral dependent loans8,261 — — 8,261 
Fair Value at December 31, 2025
TotalLevel 1Level 2Level 3
OREO and repossessed assets$344 $— $— $344 
Collateral dependent loans5,934 — — 5,934 
There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis at both June 30, 2026 and December 31, 2025.