| Fair Value Information |
10. FAIR VALUE INFORMATION Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation methodologies for financial assets and liabilities measured at fair value on a recurring and non-recurring basis are described in Note 17 — Fair Value Information, included in the 2025 Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of the dates presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Carrying Value |
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
|
|
Significant Other Observable Inputs
(Level 2) |
|
|
Significant Unobservable Inputs
(Level 3) |
|
September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities - AFS: |
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
|
$ |
45,449 |
|
|
$ |
— |
|
|
$ |
45,449 |
|
|
$ |
— |
|
Mortgage-backed securities |
|
|
2,493,391 |
|
|
|
— |
|
|
|
2,493,391 |
|
|
|
— |
|
CMO/REMIC |
|
|
925,384 |
|
|
|
— |
|
|
|
925,384 |
|
|
|
— |
|
Municipal bonds |
|
|
19,585 |
|
|
|
— |
|
|
|
19,585 |
|
|
|
— |
|
Collateralized loan obligations |
|
|
42,048 |
|
|
|
— |
|
|
|
42,048 |
|
|
|
— |
|
Other securities |
|
|
1,976 |
|
|
|
— |
|
|
|
1,976 |
|
|
|
— |
|
Total investment securities - AFS |
|
|
3,527,833 |
|
|
|
— |
|
|
|
3,527,833 |
|
|
|
— |
|
Equity securities |
|
|
14,570 |
|
|
|
14,570 |
|
|
|
|
|
|
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
31,674 |
|
|
|
— |
|
|
|
31,674 |
|
|
|
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
23,774 |
|
|
|
— |
|
|
|
23,774 |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
88 |
|
|
|
— |
|
|
|
88 |
|
|
|
|
Total assets |
|
$ |
3,597,939 |
|
|
$ |
14,570 |
|
|
$ |
3,583,369 |
|
|
$ |
— |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
31,674 |
|
|
$ |
— |
|
|
$ |
31,674 |
|
|
$ |
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges: interest rate swaps |
|
|
56 |
|
|
|
— |
|
|
|
56 |
|
|
|
|
Total liabilities |
|
$ |
31,730 |
|
|
$ |
— |
|
|
$ |
31,730 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Carrying Value |
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
|
|
Significant Other Observable Inputs
(Level 2) |
|
|
Significant Unobservable Inputs
(Level 3) |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities - AFS: |
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
|
$ |
35,284 |
|
|
$ |
— |
|
|
$ |
35,284 |
|
|
$ |
— |
|
Mortgage-backed securities |
|
|
1,887,654 |
|
|
|
— |
|
|
|
1,887,654 |
|
|
|
— |
|
CMO/REMIC |
|
|
695,150 |
|
|
|
— |
|
|
|
695,150 |
|
|
|
— |
|
Municipal bonds |
|
|
21,290 |
|
|
|
— |
|
|
|
21,290 |
|
|
|
— |
|
Collateralized loan obligations |
|
|
42,000 |
|
|
|
|
|
|
42,000 |
|
|
|
|
Other securities |
|
|
1,692 |
|
|
|
— |
|
|
|
1,692 |
|
|
|
— |
|
Total investment securities - AFS |
|
|
2,683,070 |
|
|
|
— |
|
|
|
2,683,070 |
|
|
|
— |
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
161 |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
Total assets |
|
$ |
2,683,231 |
|
|
$ |
— |
|
|
$ |
2,683,231 |
|
|
$ |
— |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
161 |
|
|
$ |
— |
|
|
$ |
161 |
|
|
$ |
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
8,650 |
|
|
|
— |
|
|
|
8,650 |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
2,619 |
|
|
|
— |
|
|
|
2,619 |
|
|
|
— |
|
Total liabilities |
|
$ |
11,430 |
|
|
$ |
— |
|
|
$ |
11,430 |
|
|
$ |
— |
|
AFS investment securities - AFS investment securities are generally valued using quotes obtained from independent third-party pricing services for identical or similar assets. Observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data are considered as part of the evaluation. These inputs are related directly to the security being evaluated, or indirectly to a similarly situated security. Market assumptions and market data are utilized in the valuation models. The Company reviews the market prices provided by the third-party pricing service for reasonableness. The fair value of these securities is classified as Level 2 within the fair value hierarchy. Equity Securities - The Company’s equity securities consist of investments in publicly traded mutual funds that qualify for CRA purposes. The fair value is based on publicly available net asset value per share and is classified as Level 1 within the fair value hierarchy. Derivative assets and liabilities - Derivatives consist of interest rate contracts, which are valued using a discounted cash flow method that incorporates observable market inputs, including current market interest rates. These derivatives are classified as level 2. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We may be required to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value accounting or impairment write-downs of individual assets. For assets measured at fair value on a non-recurring basis that were held on the balance sheet at September 30, 2026 and December 31, 2025, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets that had losses during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Carrying value |
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1) |
|
|
Significant Other Observable Inputs (Level 2) |
|
|
Significant Unobservable Inputs (Level 3) |
|
|
Total Losses For The Nine Months Ended September 30, 2026 |
|
September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
3,212 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,212 |
|
|
$ |
21 |
|
SBA |
|
|
646 |
|
|
|
— |
|
|
|
— |
|
|
|
646 |
|
|
|
— |
|
Commercial and industrial |
|
|
1,193 |
|
|
|
— |
|
|
|
— |
|
|
|
1,193 |
|
|
|
1,160 |
|
Total assets |
|
$ |
5,051 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,051 |
|
|
$ |
1,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Carrying value |
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1) |
|
|
Significant Other Observable Inputs (Level 2) |
|
|
Significant Unobservable Inputs (Level 3) |
|
|
Total Losses For The Year Ended December 31, 2025 |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
12,614 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,614 |
|
|
$ |
2 |
|
SBA |
|
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
Commercial and industrial |
|
|
8,953 |
|
|
|
— |
|
|
|
— |
|
|
|
8,953 |
|
|
|
254 |
|
Other real estate owned |
|
|
163 |
|
|
|
— |
|
|
|
— |
|
|
|
163 |
|
|
|
— |
|
Total assets |
|
$ |
21,754 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21,754 |
|
|
$ |
256 |
|
Fair Value of Financial Instruments The following disclosure presents the estimated fair value of our financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of September 30, 2026 and December 31, 2025, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
Carrying |
|
|
Estimated Fair Value |
|
(Dollars in thousands) |
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
256,062 |
|
|
$ |
256,062 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
256,062 |
|
Interest-earning balances due from
depository institutions |
|
490 |
|
|
|
— |
|
|
|
490 |
|
|
|
— |
|
|
|
490 |
|
Investment securities available-for-sale |
|
3,527,833 |
|
|
|
— |
|
|
|
3,527,833 |
|
|
|
— |
|
|
|
3,527,833 |
|
Investment securities held-to-maturity |
|
2,195,292 |
|
|
|
— |
|
|
|
1,734,484 |
|
|
|
— |
|
|
|
1,734,484 |
|
Net loans and lease finance receivables |
|
11,996,374 |
|
|
|
— |
|
|
|
— |
|
|
|
11,622,561 |
|
|
|
11,622,561 |
|
Equity securities |
|
14,570 |
|
|
|
14,570 |
|
|
|
— |
|
|
|
— |
|
|
|
14,570 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
31,674 |
|
|
|
— |
|
|
|
31,674 |
|
|
|
— |
|
|
|
31,674 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
23,774 |
|
|
|
— |
|
|
|
23,774 |
|
|
|
— |
|
|
|
23,774 |
|
Cash flow hedges: interest rate swaps |
|
88 |
|
|
|
— |
|
|
|
88 |
|
|
|
— |
|
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
$ |
7,313,852 |
|
|
$ |
— |
|
|
$ |
7,308,345 |
|
|
$ |
— |
|
|
$ |
7,308,345 |
|
Borrowings |
|
1,111,884 |
|
|
|
— |
|
|
|
1,035,777 |
|
|
|
— |
|
|
|
1,035,777 |
|
Subordinated debt |
|
39,253 |
|
|
|
— |
|
|
|
39,404 |
|
|
|
— |
|
|
|
39,404 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
31,674 |
|
|
|
— |
|
|
|
31,674 |
|
|
|
— |
|
|
|
31,674 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges: interest rate swaps |
|
56 |
|
|
|
— |
|
|
|
56 |
|
|
|
— |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
Carrying |
|
|
Estimated Fair Value |
|
(Dollars in thousands) |
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
376,389 |
|
|
$ |
376,389 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
376,389 |
|
Interest-earning balances due from
depository institutions |
|
13,064 |
|
|
|
— |
|
|
|
13,064 |
|
|
|
— |
|
|
|
13,064 |
|
Investment securities available-for-sale |
|
2,683,070 |
|
|
|
— |
|
|
|
2,683,070 |
|
|
|
— |
|
|
|
2,683,070 |
|
Investment securities held-to-maturity |
|
2,270,391 |
|
|
|
— |
|
|
|
1,925,492 |
|
|
|
— |
|
|
|
1,925,492 |
|
Net loans and lease finance receivables |
|
8,622,032 |
|
|
|
— |
|
|
|
— |
|
|
|
8,514,750 |
|
|
|
8,514,750 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
161 |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
|
|
161 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
$ |
5,271,291 |
|
|
$ |
— |
|
|
$ |
5,268,983 |
|
|
$ |
— |
|
|
$ |
5,268,983 |
|
Borrowings |
|
990,601 |
|
|
|
— |
|
|
|
941,735 |
|
|
|
— |
|
|
|
941,735 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
161 |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
|
|
161 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
8,650 |
|
|
|
— |
|
|
|
8,650 |
|
|
|
— |
|
|
|
8,650 |
|
Cash flow hedges: interest rate swaps |
|
2,619 |
|
|
|
— |
|
|
|
2,619 |
|
|
|
— |
|
|
|
2,619 |
|
The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2026 and December 31, 2025, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above.
|