Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Fair Value Option Disclosures

The table below shows the income statement impact for these fair value adjustments for the three and six months ended June 30, 2026 and 2025:


(Dollars in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Loans	$	197	$	1,315	$	(715)	$	4,183
Loans held for sale	2,508		2,024		(103)		3,835

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 and the valuation techniques used by the Company to determine those fair values (dollars in thousands):


	Fair Value on a Recurring Basis at June 30, 2026
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial Assets:
Equity securities	$	1,333	$	—	$	—	$	1,333
Available for sale debt securities	—		4,880		—		4,880
Mortgage banking assets:
Loans held for sale	—		311,991		—		311,991
Loans held for investment	—		165,588		—		165,588
Interest rate lock commitments	—		—		3,669		3,669
Forward sales commitments	—		148		—		148
Mortgage servicing rights	—		—		23,088		23,088
Lender risk account	—		—		29,343		29,343
Total	$	1,333	$	482,607	$	56,100	$	540,040
Financial Liabilities:
Interest rate lock commitments	—		—		23		23
Forward sales commitments	—		496		—		496
Total	$	—	$	496	$	23	$	519


	Fair Value on a Recurring Basis at December 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial Assets:
Equity securities	$	1,347	$	—	$	—	$	1,347
Available for sale debt securities	—		4,738		—		4,738
Mortgage banking assets:
Loans held for sale	—		309,213		—		309,213
Loans held for investment	—		178,578		—		178,578
Interest rate lock commitments	—		—		2,712		2,712
Forward sales commitments	—		52		—		52
Mortgage servicing rights	—		—		17,048		17,048
Lender risk account	—		—		30,446		30,446
Total	$	1,347	$	492,581	$	50,206	$	544,134
Financial Liabilities:
Interest rate lock commitments	—		—		6		6
Forward sales commitments	—		590		—		590
Total	$	—	$	590	$	6	$	596

Schedule of Lender Risk Account

The following table presents a reconciliation of the Level 3 available for sale debt securities measured at fair value on a recurring basis for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Balance at beginning of period	$	—	$	8,594	$	—	$	8,576



Unrealized	—		191		—		209
Transfer to Level 2	—		(8,785)		—		(8,785)
Balance at end of period	$	—	$	—	$	—	$	—

The following table presents a reconciliation of the Level 3 lender risk account measured at fair value on a recurring basis for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Beginning of period	$	29,569	$	29,037	$	30,446	$	28,436
Due to loan sales	272		325		595		724
Releases and claims paid to the Company	(957)		(1,043)		(1,850)		(1,670)
Change in fair value recognized in gain on sale of loans	459		497		152		1,326
End of period	$	29,343	$	28,816	$	29,343	$	28,816

Schedule of Reconciliation of Interest Rate Lock

The following table presents a reconciliation of the Level 3 interest rate lock commitments measured at fair value on a recurring basis for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Balance at beginning of period	$	3,941	$	4,550	$	2,706	$	2,047
Change in fair value	(295)		(238)		940		2,265
Balance at end of period	$	3,646	$	4,312	$	3,646	$	4,312

Schedule of Significant Assumptions Used

The following is a summary of the key unobservable inputs used in the valuation of the Level 3 interest rate lock commitments:


	June 30,
	2026		2025
Pull-through rate	92.6	%	83.0	%

The Company estimates the fair value of the lender risk account using management’s best estimate of key assumptions. These assumptions include prepayment rates, discount rates, and projected annual losses on unpaid principal of the sold loan portfolio. The weighted average of unobservable inputs for these valuation assumptions is as follows as of the dates indicated (dollars in thousands):


	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs		Weighted Average
Assets:
June 30, 2026
Lender Risk Account	$	29,343	Present value of	Credit losses	—% - 0.20%		0.09	%
			cash flows	Prepayment rates	18.47	%	18.47	%
				Discount rates	5.31% - 6.67%		6.03	%
December 31, 2025
Lender Risk Account	$	30,446	Present value of	Credit losses	—% - 0.17%		0.05	%
			cash flows	Prepayment rates	17.43	%	17.43	%
				Discount rates	5.05% - 6.57%		5.80	%

Schedule of Nonrecurring Fair Value Measurements

The following asset classes were measured at fair value on the accompanying consolidated balance sheets as of the dates indicated due to declines in the fair value. Certain individually evaluated loans and other real estate carried at original cost, which exceeds fair value, have been omitted from the disclosure below (dollars in thousands):


	Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2026
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Balance at June 30, 2026
Individually evaluated loans	—	—	$	1,525	$	1,525
Other real estate owned	—	—	1,939		1,939


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Balance at December 31, 2025
Individually evaluated loans	—	—	$	3,345	$	3,345
Other real estate owned	—	—	991		991

Schedule of Fair Value by Balance Sheet Grouping

The following presents estimated fair values of the Company’s financial instruments, not previously presented, and the level within the fair value hierarchy in which fair value measurements falls as of the dates indicated (dollars in thousands):


	June 30, 2026
	Fair Value Hierarchy	Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	538,359	$	538,359


FHLB stock	Level 2	76,099		76,099

Loans, net	Level 2	6,305,104		6,264,063
Interest receivable	Level 2	29,252		29,252
Total		6,948,814		6,907,773
Financial Liabilities:
Deposits	Level 2	5,233,315		5,202,194
Borrowings	Level 2	1,512,500		1,503,763
Subordinated debentures	Level 2	111,955		111,955
Subordinated debentures issued through trusts	Level 2	5,000		5,000
Interest payable	Level 2	16,211		16,211
Total		6,878,981		6,839,123


	December 31, 2025
	Fair Value Hierarchy	Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	496,459	$	496,459


FHLB stock	Level 2	80,109		80,109

Loans, net	Level 2	5,829,169		5,791,584
Interest receivable	Level 2	28,353		28,353
Total		6,434,090		6,396,505
Financial Liabilities:
Deposits	Level 2	4,869,667		4,858,176
Borrowings	Level 2	1,439,500		1,426,415
Subordinated debentures	Level 2	91,915		91,915
Subordinated debentures issued through trusts	Level 2	5,000		5,000
Interest payable	Level 2	16,628		16,628
Total		6,422,710		6,398,134

- 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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