v3.26.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2026
Fair Value [Abstract]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis, Including Financial Assets And Liabilities

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

 

 

 

Fair Value
Measurements at
September 30, 2026
using Significant
Other Observable
Inputs

 

 

 

(Level 2)

 

 

 

(unaudited)

 

Financial Assets:

 

 

 

 

Securities available for sale:

 

 

 

 

Corporate debt

 

$

 

7,950

 

Issued by U.S. government-sponsored entities and agencies:

 

 

 

 

U.S. Treasury

 

 

 

996

 

Collateralized mortgage obligations

 

 

 

7,586

 

Total securities available for sale

 

$

 

16,532

 

Loans held for sale

 

$

 

2,431

 

Derivative assets

 

$

 

7,224

 

Financial Liabilities:

 

 

 

 

Derivative liabilities

 

$

 

7,224

 

 

 

 

 

Fair Value
Measurements at
December 31, 2025
using Significant
Other Observable
Inputs

 

 

 

(Level 2)

 

Financial Assets:

 

 

 

 

Securities available for sale:

 

 

 

 

Corporate debt

 

$

 

8,400

 

Issued by U.S. government-sponsored entities and agencies:

 

 

 

 

U.S. Treasury

 

 

 

1,000

 

Collateralized mortgage obligations

 

 

 

8,096

 

Total securities available for sale

 

$

 

17,496

 

Loans held for sale

 

$

 

5,611

 

Derivative assets

 

$

 

3,578

 

Financial Liabilities:

 

 

 

 

Derivative liabilities

 

$

 

3,578

 
Assets Measured At Fair Value On A Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis at September 30, 2026 are summarized below:

 

Fair Value Measurements at September 30, 2026 Using

Significant Unobservable Inputs (Level 3)

(unaudited)

Individually Evaluated loans:

 

 

Commercial

$

5,981

Real Estate:

 

 

Commercial:

 

 

Owner occupied

 

376

Construction

 

631

Total individually evaluated loans

$

6,988

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2025 are summarized below.

 

Fair Value Measurements at December 31, 2025 Using

Significant Unobservable Inputs (Level 3)

 

 

 

Individually Evaluated loans:

 

 

Commercial

$

595

Real Estate:

 

 

Commercial:

 

 

Owner occupied

 

313

Total individually evaluated loans

$

908
Financial Instruments Measured At Fair Value On A Non-Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2026:

 

 

 

 

Fair Value

 

Valuation Technique(s)

 

Unobservable Inputs

 

Weighted Average

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

Commercial

 

$

5,981

 

Comparable sales approach

 

Adjustment for differences between the stated value and net realizable value

 

2.89%

Real estate:

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

376

 

Comparable sales approach

 

Adjustment for differences between the comparable market transactions

 

4.00%

Construction

 

 

631

 

Comparable sales approach

 

Adjustment for differences between the comparable market transactions

 

10.39%

 

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2025:

 

 

 

 

Fair Value

 

Valuation Technique(s)

 

Unobservable Inputs

 

Weighted Average

Individually evaluated loans:

 

 

 

 

 

 

 

 

 

Commercial

 

$

595

 

Comparable sales approach

 

Adjustment for differences between the stated value and net realizable value

 

8.00%

Real estate:

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

313

 

Comparable sales approach

 

Adjustment for differences between the comparable market transactions

 

4.00%
Aggregate Fair Value, Contractual Balance And Gain Or Loss

As of September 30, 2026 and December 31, 2025, the aggregate fair value, contractual balance and gain or loss on loans held for sale were as follows:

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

(unaudited)

 

 

 

 

 

Aggregate fair value

 

$

 

2,431

 

 

$

 

5,611

 

Contractual balance

 

 

 

2,431

 

 

 

 

5,611

 

Gain (loss)

 

$

 

—

 

 

$

 

—

 
Total Amount Of Gains And Losses From Changes In Fair Value Included In Earnings

The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2026 and 2025 for loans held for sale were:

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(unaudited)

 

 

(unaudited)

 

Interest income

 

$

 

68

 

 

$

 

40

 

 

$

 

170

 

 

$

 

117

 

Interest expense

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Change in fair value

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Total change in fair value

 

$

 

68

 

 

$

 

40

 

 

$

 

170

 

 

$

 

117

 
Carrying Amounts And Estimated Fair Values Of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2026 were as follows:

 

 

 

Fair Value Measurements at September 30, 2026 Using:

 

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

248,596

 

 

$

 

248,596

 

 

$

 

—

 

 

$

 

—

 

 

$

 

248,596

 

Interest-bearing deposits in other financial
   institutions

 

 

 

100

 

 

 

 

100

 

 

 

 

—

 

 

 

 

—

 

 

 

 

100

 

Securities available for sale

 

 

 

16,532

 

 

 

 

—

 

 

 

 

16,532

 

 

 

 

—

 

 

 

 

16,532

 

Loans held for sale

 

 

 

2,431

 

 

 

 

—

 

 

 

 

2,431

 

 

 

 

—

 

 

 

 

2,431

 

Loans and leases, net

 

 

 

1,838,293

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,788,020

 

 

 

 

1,788,020

 

FHLB and FRB stock (1)

 

 

 

8,389

 

 

 

n/a

 

 

 

n/a

 

 

 

n/a

 

 

 

n/a

 

Accrued interest receivable

 

 

 

8,658

 

 

 

 

304

 

 

 

 

166

 

 

 

 

8,188

 

 

 

 

8,658

 

Derivative assets

 

 

 

7,224

 

 

 

 

—

 

 

 

 

7,224

 

 

 

 

—

 

 

 

 

7,224

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

 

(1,857,184

)

 

$

 

(1,159,605

)

 

$

 

(694,809

)

 

$

 

—

 

 

$

 

(1,854,414

)

FHLB advances and other debt

 

 

 

(99,240

)

 

 

 

—

 

 

 

 

(102,546

)

 

 

 

—

 

 

 

 

(102,546

)

Advances by borrowers for taxes and
   insurance

 

 

 

(1,472

)

 

 

 

—

 

 

 

 

—

 

 

 

 

(1,472

)

 

 

 

(1,472

)

Subordinated debentures

 

 

 

(15,068

)

 

 

 

—

 

 

 

 

(17,106

)

 

 

 

—

 

 

 

 

(17,106

)

Accrued interest payable

 

 

 

(2,871

)

 

 

 

(338

)

 

 

 

(2,533

)

 

 

 

—

 

 

 

 

(2,871

)

Derivative liabilities

 

 

 

(7,224

)

 

 

 

—

 

 

 

 

(7,224

)

 

 

 

—

 

 

 

 

(7,224

)

(1) It is not practical to determine the fair value of FHLB and FRB stock due to restrictions placed on its transferability.

The carrying amounts and estimated fair values of financial instruments at December 31, 2025 were as follows:

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

258,972

 

 

$

 

258,972

 

 

$

 

—

 

 

$

 

—

 

 

$

 

258,972

 

Interest-bearing deposits in other financial
   institutions

 

 

 

100

 

 

 

 

100

 

 

 

 

—

 

 

 

 

—

 

 

 

 

100

 

Securities available for sale

 

 

 

17,496

 

 

 

 

—

 

 

 

 

17,496

 

 

 

 

—

 

 

 

 

17,496

 

Loans held for sale

 

 

 

5,611

 

 

 

 

—

 

 

 

 

5,611

 

 

 

 

—

 

 

 

 

5,611

 

Loans and leases, net

 

 

 

1,738,854

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,725,771

 

 

 

 

1,725,771

 

FHLB and FRB stock (1)

 

 

 

8,354

 

 

 

n/a

 

 

 

n/a

 

 

 

n/a

 

 

 

n/a

 

Accrued interest receivable

 

 

 

8,655

 

 

 

 

212

 

 

 

 

107

 

 

 

 

8,336

 

 

 

 

8,655

 

Derivative assets

 

 

 

3,578

 

 

 

 

—

 

 

 

 

3,578

 

 

 

 

—

 

 

 

 

3,578

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

 

(1,780,689

)

 

$

 

(1,084,276

)

 

$

 

(697,492

)

 

$

 

—

 

 

$

 

(1,781,768

)

FHLB advances and other debt

 

 

 

(100,964

)

 

 

 

—

 

 

 

 

(106,248

)

 

 

 

—

 

 

 

 

(106,248

)

Advances by borrowers for taxes and
   insurance

 

 

 

(2,523

)

 

 

 

—

 

 

 

 

—

 

 

 

 

(2,523

)

 

 

 

(2,523

)

Subordinated debentures

 

 

 

(15,039

)

 

 

 

—

 

 

 

 

(17,550

)

 

 

 

—

 

 

 

 

(17,550

)

Accrued interest payable

 

 

 

(2,513

)

 

 

 

(377

)

 

 

 

(2,136

)

 

 

 

—

 

 

 

 

(2,513

)

Derivative liabilities

 

 

 

(3,578

)

 

 

 

—

 

 

 

 

(3,578

)

 

 

 

—

 

 

 

 

(3,578

)

(1) It is not practical to determine the fair value of FHLB and FRB stock due to restrictions placed on its transferability.