| Summary of Assets Measured on Recurring Basis |
The following tables present the balances of assets measured for fair value on a recurring basis as of September 30, 2026 and December 31, 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | September 30, 2026 | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | | Available for sale securities: | | | | | | | | | | U.S. agency mortgage-backed | | $ | 314,724 | | | $ | — | | | $ | 314,724 | | | $ | — | | | Collateralized mortgage obligations | | 41,813 | | | — | | | 41,813 | | | — | | | Municipal bonds | | 45,116 | | | — | | | 45,116 | | | — | | | U.S. government agency | | 8,942 | | | — | | | 8,942 | | | — | | | Corporate bonds | | 5,000 | | | — | | | 5,000 | | | — | | | Total | | $ | 415,595 | | | $ | — | | | $ | 415,595 | | | $ | — | | | | | | | | | | | | Derivative assets | | $ | 1,253 | | | $ | — | | | $ | 1,253 | | | $ | — | | | Total | | $ | 416,848 | | | $ | — | | | $ | 416,848 | | | $ | — | | | | | | | | | | | | Liabilities | | | | | | | | | | Derivative liabilities | | $ | 564 | | | $ | — | | | $ | 564 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | | Available for sale securities: | | | | | | | | | | U.S. agency mortgage-backed | | $ | 267,650 | | | $ | — | | | $ | 267,650 | | | $ | — | | | Collateralized mortgage obligations | | 60,327 | | | — | | | 60,327 | | | — | | | Municipal bonds | | 48,147 | | | — | | | 48,147 | | | — | | | U.S. government agency | | 11,003 | | | — | | | 11,003 | | | — | | | Corporate bonds | | 4,321 | | | — | | | 4,321 | | | — | | | Total | | $ | 391,448 | | | $ | — | | | $ | 391,448 | | | $ | — | | | | | | | | | | | | Derivative assets | | $ | 1,311 | | | $ | — | | | $ | 1,311 | | | $ | — | | | Total | | $ | 392,759 | | | $ | — | | | $ | 392,759 | | | $ | — | | | | | | | | | | | | Liabilities | | | | | | | | | | Derivative liabilities | | $ | 294 | | | $ | — | | | $ | 294 | | | $ | — | |
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| Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis |
The Company has segregated all financial assets that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date as reflected in the table below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using | | (dollars in thousands) | | September 30, 2026 | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | | Loans individually evaluated | | $ | 5,911 | | | $ | — | | | $ | — | | | $ | 5,911 | | | Foreclosed assets and ORE | | 11,568 | | | — | | | — | | | 11,568 | | | Total | | $ | 17,479 | | | $ | — | | | $ | — | | | $ | 17,479 | | | | | | | | | | | | | | | Fair Value Measurements Using | | (dollars in thousands) | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | | Loans individually evaluated | | $ | 4,941 | | | $ | — | | | $ | — | | | $ | 4,941 | | | Foreclosed assets and ORE | | 1,929 | | | — | | | — | | | 1,929 | | | Total | | $ | 6,870 | | | $ | — | | | $ | — | | | $ | 6,870 | |
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| Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Level 3 Assets |
The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range of Discounts | | Weighted Average Discount | | September 30, 2026 | | | | | | | | | | | | Loans individually evaluated | | $ | 5,911 | | | Third party appraisals and discounted cash flows | | Collateral values, market discounts and estimated costs to sell | | 9% - 100% | | 34% | | Foreclosed assets and ORE | | $ | 11,568 | | | Third party appraisals, sales contracts, broker price opinions | | Collateral values, market discounts and estimated costs to sell | | 6% - 55% | | 13% | | (dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range of
Discounts | | Weighted Average Discount | | December 31, 2025 | | | | | | | | | | | | Loans individually evaluated | | $ | 4,941 | | | Third party appraisals and discounted cash flows | | Collateral values, market discounts and estimated costs to sell | | 0% - 100% | | 20% | | Foreclosed assets and ORE | | $ | 1,929 | | | Third party appraisals, sales contracts, broker price opinions | | Collateral values, market discounts and estimated costs to sell | | 0% - 43% | | 22% |
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| Summary of Fair Values of Company's Financial Instruments |
The following table presents estimated fair values of the Company’s financial instruments as of the dates indicated. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at September 30, 2026 | | (dollars in thousands) | | Carrying Amount | | Total | | Level 1 | | Level 2 | | Level 3 | | Financial Assets | | | | | | | | | | | | Cash and cash equivalents | | $ | 179,053 | | | $ | 179,053 | | | $ | 179,053 | | | $ | — | | | $ | — | | | | | | | | | | | | | | Investment securities available for sale | | 415,595 | | | 415,595 | | | — | | | 415,595 | | | — | | | Investment securities held to maturity | | — | | | — | | | — | | | — | | | — | | | Mortgage loans held for sale | | 774 | | | 774 | | | — | | | 774 | | | — | | | Loans, net | | 2,740,437 | | | 2,724,071 | | | — | | | 2,718,160 | | | 5,911 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash surrender value of BOLI | | 50,426 | | | 50,426 | | | 50,426 | | | — | | | — | | Derivative assets(1) | | 1,253 | | | 1,253 | | | — | | | 1,253 | | | — | | | Financial Liabilities | | | | | | | | | | | | Deposits | | $ | 3,053,500 | | | $ | 3,051,433 | | | $ | 2,303,510 | | | $ | 747,923 | | | $ | — | | | | | | | | | | | | | | Subordinated debt, net of issuance cost | | 54,838 | | | 54,460 | | | — | | | 54,460 | | | — | | | | | | | | | | | | | | | | | | | | | | | | Derivative liabilities(1) | | 564 | | | 564 | | | — | | | 564 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2025 | | (dollars in thousands) | | Carrying Amount | | Total | | Level 1 | | Level 2 | | Level 3 | | Financial Assets | | | | | | | | | | | | Cash and cash equivalents | | $ | 141,605 | | | $ | 141,605 | | | $ | 141,605 | | | $ | — | | | $ | — | | | | | | | | | | | | | | Investment securities available for sale | | 391,448 | | | 391,448 | | | — | | | 391,448 | | | — | | | Investment securities held to maturity | | 1,065 | | | 1,066 | | | — | | | 1,066 | | | — | | | Mortgage loans held for sale | | 1,558 | | | 1,558 | | | — | | | 1,558 | | | — | | | Loans, net | | 2,710,881 | | | 2,728,477 | | | — | | | 2,723,536 | | | 4,941 | | | Cash surrender value of BOLI | | 49,557 | | | 49,557 | | | 49,557 | | | — | | | — | | Derivative assets(1) | | 1,311 | | | 1,311 | | | — | | | 1,311 | | | — | | | Financial Liabilities | | | | | | | | | | | | Deposits | | $ | 2,972,806 | | | $ | 2,971,389 | | | $ | 2,167,183 | | | $ | 804,206 | | | $ | — | | | | | | | | | | | | | | Subordinated debt, net of issuance cost | | 54,675 | | | 54,520 | | | — | | | 54,520 | | | — | | | | | | | | | | | | | | Long-term FHLB advances | | 3,024 | | | 3,012 | | | — | | | 3,012 | | | — | | Derivative liabilities(1) | | 294 | | | 294 | | | — | | | 294 | | | — | |
(1)Derivative assets and liabilities are reported at fair value in accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively, in the Consolidated Statements of Financial Condition.
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