v3.26.3
FAIR VALUE (Tables)
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of fair value assets and liabilities measured on recurring basis
The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):
September 30, 2026Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial assets
Available-for-sale debt securities, at fair value
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises$— $152,544 $— $152,544 
Mortgage loans held for sale— 18,989 — 18,989 
Loans held at fair value— — 1,146 1,146 
Forward commitments and FSC— 558 — 558 
Equity securities619 122 — 741 
Guarantee asset— — 255 255 
IRLC, net— 200 — 200 
Equity warrants— — 756 756 
Swap derivative assets— 10,595 — 10,595 
Total assets$619 $183,008 $2,157 $185,784 
Financial liabilities
Forward commitments and FSC$— $— $24 $24 
Swap derivative liabilities— 1,236 — 1,236 
Total liabilities$— $1,236 $24 $1,260 
December 31, 2025Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial assets
Available-for-sale debt securities, at fair value
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises$— $45,607 $— $45,607 
Mortgage loans held for sale— 40,176 — 40,176 
Loans held at fair value— — 3,182 3,182 
Forward commitments and FSC— 23 — 23 
Equity securities650 122 — 772 
Guarantee asset— — 243 243 
IRLC, net— 748 — 748 
Equity warrants— — 756 756 
Swap derivative asset— 952 — 952 
Total assets$650 $87,628 $4,181 $92,459 
Financial liabilities
Forward commitments and FSC$— $174 $— $174 
Swap derivative liabilities— 2,472 — 2,472 
Total liabilities$— $2,646 $— $2,646 
Schedule of loans measured at fair value under fair value option
The following provide more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted:
September 30, 2026
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)
Fair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		Difference
Mortgage loans held for sale$18,989 $19,013 $(24)$— $— $— $— $— $— 
Loans held for investment1,146 1,156 (10)16 16 — 16 16 — 
$20,135 $20,169 $(34)$16 $16 $— $16 $16 $— 
December 31, 2025
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)
Fair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		DifferenceFair Value Carrying
Amount		Unpaid Principal
Balance		Difference
Mortgage loans held for sale$40,176 $39,513 $663 $— $— $— $— $— $— 
Loans held for investment3,182 3,215 (33)16 17 (1)16 17 (1)
$43,358 $42,728 $630 $16 $17 $(1)$16 $17 $(1)
Schedule of changes in fair value of loans
The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)
2026202520262025
Mortgage loans held for sale$(503)$(126)$(786)$129 
Loans held for sale— — — 222 
Loans held for investment6 25 23 114 
$(497)$(101)$(763)$465 
Summary of assets and liability for level 3 instruments measured at fair value on recurring basis
The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands):
Three Months Ended September 30, 2026Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$1,758 $262 $756 
Originations— 5 — 
Gains/(losses) in net income, net6 12 — 
Net charge-offs(82)— — 
Settlements(536)(24)— 
Ending balance$1,146 $255 $756 
Three Months Ended September 30, 2025Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$5,099 $244 $765 
Originations— 9 — 
Gains/(losses) in net income, net25 37 — 
Net charge-offs(7)— — 
Settlements(909)(24)— 
Ending balance$4,208 $266 $765 
Nine Months Ended September 30, 2026Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$3,182 $243 $756 
Originations— 17 — 
Gains/(losses) in net income, net23 67 — 
Net charge-offs(128)— — 
Settlements(1,931)(72)— 
Ending balance$1,146 $255 $756 
Nine Months Ended September 30, 2025Loans Held at Fair ValueGuarantee AssetEquity Warrants
Beginning balance$7,283 $235 $765 
Originations— 29 — 
Gains/(losses) in net income, net114 69 — 
Net charge-offs(64)— — 
Settlements(3,125)(67)— 
Ending balance$4,208 $266 $765 
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs
The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted:
Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2026
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$1,146 Discounted cash flowDiscount rate
6% to 7% (6%)
Guarantee asset255 Discounted cash flowDiscount rate
Prepayment rate
6% (6%)
10% (10%)
Equity warrants756 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
33% to 74% (42%)
3% (3%)
2 years
Nonrecurring fair value
Collateral dependent loans:
Commercial and industrial17 Sales comparison, Market approach - guideline transaction methodLoss given default
83% (83%)
Commercial and industrial5,803 Appraisal valueCommission
10% to 20% (18%)
Commercial and industrial2,996 Sales comparison - Market value approachMarket rate adjustments
7% to 75% (41%)
Commercial and industrial514 Income and market approachCommission, cost to sell, closing costs
10% (10%)
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2025
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$3,182 Discounted cash flowDiscount rate
6% to 7% (6%)
Guarantee asset243 Discounted cash flowDiscount rate
Prepayment rate
6% (6%)
20% (20%)
Equity warrants756 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
33% to 74% (42%)
3% (3%)
2 years
Nonrecurring fair value
OREO:
1-4 family residential3,040 Contract valueCommission, cost to sell, closing costs
5% (5%)
Collateral dependent loans:
Commercial and industrial43 Sales comparison, Market approach - Guideline transaction methodLoss given default
75% (75%)
Commercial and industrial8,619 Appraisal valueCommission
10% to 20% (17%)
Commercial and industrial2,071 Sales comparison - Market value approachMarket rate adjustments
7% to 75% (62%)
Summary of carrying amounts and estimated fair values of financial instruments
The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands):
Carrying
Amount		Fair Value Measurements Using:
September 30, 2026Level 1Level 2Level 3
Assets:
Cash and cash equivalents$166,248 $166,248 $— $— 
Held-to-maturity debt securities, net of ACL141,852 247 115,524 18,811 
Loans, net(1)
2,784,314 — — 2,702,385 
Accrued interest receivable12,515 12,515 — — 
Liabilities:
Term deposits(2)
354,407 333,069 — 21,019 
Non-term deposits2,561,806 2,561,806 — — 
Borrowings:
FHLB borrowings – fixed rate150,926 150,926 — — 
Subordinated notes – fixed-to-floating rate34,883 — — 32,647 
Accrued interest payable1,586 1,586 — — 
Carrying
Amount		Fair Value Measurements Using:
December 31, 2025Level 1Level 2Level 3
Assets:
Cash and cash equivalents$200,281 $200,281 $— $— 
Held-to-maturity debt securities, net of ACL94,970 248 79,664 10,723 
Loans, net(1)
2,625,800 — — 2,567,911 
Accrued interest receivable11,209 11,209 — — 
Liabilities:
Term deposits(2)
352,473 327,898 — 24,825 
Non-term deposits2,394,102 2,394,102 — — 
Borrowings:
FHLB borrowings – fixed rate12,332 12,332 — — 
FHLB borrowings – floating rate50,000 — 50,000 — 
Federal Reserve borrowings – fixed rate509 509 — — 
Subordinated notes – fixed-to-floating rate44,772 — — 42,017 
Accrued interest payable1,295 1,295 — — 
______________________________________
(1) Excludes loans accounted for under the fair value option of $1.1 million and $3.2 million as of September 30, 2026 and December 31, 2025, respectively, as these are carried at fair value.
(2) Term deposits due within one year totaling $333.1 million and $327.9 million as of September 30, 2026 and December 31, 2025, respectively, are classified under Level 1 fair value measurement.