| Summary of Financial Assets and Financial Liabilities Measured at Fair Value |
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of September 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using |
|
|
|
|
(Dollars in thousands) |
|
Level 1 Inputs |
|
|
Level 2 Inputs |
|
|
Level 3 Inputs |
|
|
Total Fair Value |
|
At September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S government and agency securities |
|
$ |
— |
|
|
$ |
4,609 |
|
|
$ |
— |
|
|
$ |
4,609 |
|
State and municipal securities |
|
|
— |
|
|
|
13,787 |
|
|
|
— |
|
|
|
13,787 |
|
Mortgage-backed securities and collateralized mortgage obligations |
|
|
— |
|
|
|
219,785 |
|
|
|
— |
|
|
|
219,785 |
|
Corporate bonds |
|
|
— |
|
|
|
138,988 |
|
|
|
— |
|
|
|
138,988 |
|
Asset-backed securities |
|
|
— |
|
|
|
— |
|
|
|
84,355 |
|
|
|
84,355 |
|
Total investment securities available-for-sale |
|
$ |
— |
|
|
$ |
377,169 |
|
|
$ |
84,355 |
|
|
$ |
461,524 |
|
Asset-backed securities held-to-maturity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
190,543 |
|
|
$ |
190,543 |
|
Marketable equity securities |
|
$ |
2,551 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,551 |
|
Derivative assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through interest rate swaps |
|
$ |
— |
|
|
$ |
4,031 |
|
|
$ |
— |
|
|
$ |
4,031 |
|
Risk participation agreements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pay-fixed interest rate swaps |
|
|
— |
|
|
|
1,276 |
|
|
|
— |
|
|
|
1,276 |
|
Total derivative assets |
|
$ |
— |
|
|
$ |
5,307 |
|
|
$ |
— |
|
|
$ |
5,307 |
|
Derivative liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
$ |
— |
|
|
$ |
6,324 |
|
|
$ |
— |
|
|
$ |
6,324 |
|
Pass-through interest rate swaps |
|
|
— |
|
|
|
4,031 |
|
|
|
— |
|
|
|
4,031 |
|
Pay-fixed interest rate swaps |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
13 |
|
Total derivative liabilities |
|
$ |
— |
|
|
$ |
10,368 |
|
|
$ |
— |
|
|
$ |
10,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using |
|
|
|
|
(Dollars in thousands) |
|
Level 1 Inputs |
|
|
Level 2 Inputs |
|
|
Level 3 Inputs |
|
|
Total Fair Value |
|
At December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
$ |
— |
|
|
$ |
6,238 |
|
|
$ |
— |
|
|
$ |
6,238 |
|
State and municipal securities |
|
|
— |
|
|
|
13,400 |
|
|
|
— |
|
|
|
13,400 |
|
Mortgage-backed securities and collateralized mortgage obligations |
|
|
— |
|
|
|
223,912 |
|
|
|
— |
|
|
|
223,912 |
|
Corporate bonds |
|
|
— |
|
|
|
139,642 |
|
|
|
— |
|
|
|
139,642 |
|
Total investment securities available-for-sale |
|
$ |
— |
|
|
$ |
383,192 |
|
|
$ |
— |
|
|
$ |
383,192 |
|
Derivative assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through interest rate swaps |
|
$ |
— |
|
|
$ |
2,501 |
|
|
$ |
— |
|
|
$ |
2,501 |
|
Risk participation agreements |
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
7 |
|
Pay-fixed interest rate swaps |
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
36 |
|
Total derivative assets |
|
$ |
— |
|
|
$ |
2,544 |
|
|
$ |
— |
|
|
$ |
2,544 |
|
Derivative liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
— |
|
|
$ |
2,501 |
|
|
$ |
— |
|
|
$ |
2,501 |
|
Pay-fixed interest rate swaps |
|
|
— |
|
|
|
641 |
|
|
|
— |
|
|
|
641 |
|
Total derivative liabilities |
|
$ |
— |
|
|
$ |
3,142 |
|
|
$ |
— |
|
|
$ |
3,142 |
|
|
| Summary of Foreclosed Assets Remeasured and Recorded at Fair Value |
The following table presents the activity for other real estate owned assets that were remeasured and recorded at fair value as of September 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
September 30,
2026 |
|
|
December 31,
2025 |
|
Balance at beginning of year, net of valuation allowance |
|
$ |
8,388 |
|
|
$ |
862 |
|
Loans transferred to other real estate owned |
|
|
18,882 |
|
|
|
7,962 |
|
Sales of other real estate owned |
|
|
(203 |
) |
|
|
(655 |
) |
(Write-down) write-up included in other noninterest expense |
|
|
(68 |
) |
|
|
219 |
|
Balance at end of period, net of valuation allowance |
|
$ |
26,999 |
|
|
$ |
8,388 |
|
|
| Summary of Estimated Fair Values and Carrying Values of Financial Instruments |
The estimated fair values and carrying values of all financial instruments under current authoritative guidance, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
(Dollars in thousands) |
Carrying
Value |
|
|
Estimated
Fair Value |
|
|
Carrying
Value |
|
|
Estimated
Fair Value |
|
Financial assets: |
|
|
|
|
|
|
|
|
|
|
|
Level 1 inputs |
|
|
|
|
|
|
|
|
|
|
|
Marketable equity securities |
$ |
2,551 |
|
|
$ |
2,551 |
|
|
$ |
— |
|
|
$ |
— |
|
Level 2 inputs |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
365,814 |
|
|
$ |
365,814 |
|
|
$ |
181,229 |
|
|
$ |
181,229 |
|
Interest bearing time deposits in other banks |
|
276 |
|
|
|
276 |
|
|
|
267 |
|
|
|
267 |
|
Securities available-for-sale |
|
377,169 |
|
|
|
377,169 |
|
|
|
383,192 |
|
|
|
383,192 |
|
Non-marketable securities |
|
24,860 |
|
|
|
24,860 |
|
|
|
16,424 |
|
|
|
16,424 |
|
Accrued interest receivable |
|
32,083 |
|
|
|
32,083 |
|
|
|
29,236 |
|
|
|
29,236 |
|
Bank-owned life insurance |
|
77,100 |
|
|
|
77,100 |
|
|
|
76,357 |
|
|
|
76,357 |
|
Derivative assets |
|
5,307 |
|
|
|
5,307 |
|
|
|
2,544 |
|
|
|
2,544 |
|
|
$ |
882,609 |
|
|
$ |
882,609 |
|
|
$ |
689,249 |
|
|
$ |
689,249 |
|
Level 3 inputs |
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
84,355 |
|
|
|
84,355 |
|
|
|
— |
|
|
|
— |
|
Securities held-to-maturity |
|
191,924 |
|
|
|
190,543 |
|
|
|
192,008 |
|
|
|
189,106 |
|
Loans, net |
$ |
5,439,085 |
|
|
$ |
5,452,373 |
|
|
$ |
4,350,802 |
|
|
$ |
4,364,752 |
|
|
$ |
5,631,009 |
|
|
$ |
5,642,916 |
|
|
$ |
4,542,810 |
|
|
$ |
4,553,858 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Level 2 inputs |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
5,924,768 |
|
|
$ |
5,629,608 |
|
|
$ |
4,626,888 |
|
|
$ |
4,489,704 |
|
Accrued interest payable |
|
6,910 |
|
|
|
6,910 |
|
|
|
5,957 |
|
|
|
5,957 |
|
Note payable and line of credit |
|
143,495 |
|
|
|
141,694 |
|
|
|
118,840 |
|
|
|
115,665 |
|
Derivative liabilities |
|
10,368 |
|
|
|
10,368 |
|
|
|
3,142 |
|
|
|
3,142 |
|
|
$ |
6,085,541 |
|
|
$ |
5,788,580 |
|
|
$ |
4,754,827 |
|
|
$ |
4,614,468 |
|
|