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 Company has categorized its financial instruments measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | | | | | | | | | September 30, 2026 | | Total | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Investment securities available-for-sale | | | | | | | | | | U.S. Treasuries | | $ | 131,312 | | | $ | 131,312 | | | $ | — | | | $ | — | | | | | | | | | | | | Municipal | | 12,683 | | | — | | | 12,683 | | | — | | | Corporate | | 1,443 | | | — | | | 1,443 | | | — | | | Asset-backed securities | | 4,615 | | | — | | | 4,615 | | | — | | | Mortgage-backed securities | | 64,433 | | | — | | | 64,433 | | | — | | | Total | | $ | 214,486 | | | $ | 131,312 | | | $ | 83,174 | | | $ | — | | | | | | | | | | | | Mortgage loans held for sale | | $ | 14,075 | | | $ | — | | | $ | 14,075 | | | $ | — | | | Loan servicing assets | | $ | 1,994 | | | $ | — | | | $ | 1,994 | | | $ | — | | | Derivative assets | | $ | 7,446 | | | $ | — | | | $ | 7,446 | | | $ | — | | | Derivative liabilities | | $ | 223 | | | $ | — | | | $ | 223 | | | $ | — | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | Investment securities available-for-sale | | | | | | | | | | U.S. Treasuries | | $ | 137,236 | | | $ | 137,236 | | | $ | — | | | $ | — | | | | | | | | | | | | Municipal | | 13,897 | | | — | | | 13,897 | | | — | | | Corporate | | 3,404 | | | — | | | 3,404 | | | — | | | Asset-backed securities | | 5,026 | | | — | | | 5,026 | | | — | | | Mortgage-backed securities | | 70,520 | | | — | | | 70,520 | | | — | | | Total | | $ | 230,083 | | | $ | 137,236 | | | $ | 92,847 | | | $ | — | | | | | | | | | | | | Mortgage loans held for sale | | $ | 25,828 | | | $ | — | | | $ | 25,828 | | | $ | — | | | Loan servicing assets | | $ | 1,816 | | | $ | — | | | $ | 1,816 | | | $ | — | | | Derivative assets | | $ | 5,941 | | | $ | — | | | $ | 5,941 | | | $ | — | | | Derivative liabilities | | $ | 30 | | | $ | — | | | $ | 30 | | | $ | — | |
|
| Schedule of Fair Value of Loans Held for Sale |
The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity: | | | | | | | | | | | | | | | | Fair Value of Mortgage Loans Held for Sale | | | | | | (in thousands) | | September 30, 2026 | | December 31, 2025 | | Aggregate fair value | | $ | 14,075 | | | $ | 25,828 | | | Contractual principal | | 13,775 | | | 25,332 | | | Difference | | $ | 300 | | | $ | 496 | |
|
| Schedule of Fair Value Measurements, Nonrecurring |
The Company has categorized its financial instruments measured at fair value on a nonrecurring basis as of September 30, 2026 and December 31, 2025 as follows: | | | | | | | | | | | | | | | | | | | (in thousands) | | September 30, 2026 | | December 31, 2025 | Collateral dependent loans | | | | | | | | | | | | | | | Level 3 inputs | | $ | 14,650 | | | $ | 8,254 | | | | | | | Foreclosed real estate | | | | | Level 3 inputs | | 3,856 | | | 3,856 | | | | | | | | Total | | $ | 18,506 | | | $ | 12,110 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | Unobservable Inputs | | | | | Valuation Technique | | Unobservable Inputs | | Range of Inputs | | September 30, 2026 | | | | Collateral dependent evaluated loans | Appraised Value | | Discounts to appraisals for estimated holding and/or selling costs | | 0 to 40% | | Foreclosed real estate | Appraised Value | | Discounts to appraisals for estimated holding and/or selling costs | | 0 to 30% | | | | | | | | December 31, 2025 | Valuation Technique | | Unobservable Inputs | | Range of Inputs | | Collateral dependent evaluated loans | Appraised Value | | Discounts to appraisals for estimated holding and/or selling costs | | 0 to 30% 1 | | Foreclosed Real Estate | Appraised Value | | Discounts to appraisals for estimated holding and/or selling costs | | 0 to 30% |
_______________ (1) A discount rate of 63.4% was used for one acquired PCD loan that was evaluated as a measurement period adjustment during 2025 to the Day-1 purchase accounting. All other collateral dependent evaluated loans used a range of 0 to 30%.
|
| Schedule of Fair Value Measurements, Recurring and Nonrecurring |
The table below presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (in thousands) | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Financial assets | | | | | | | | | Level 1 | | | | | | | | | Cash and due from banks | $ | 15,563 | | | $ | 15,563 | | | $ | 30,894 | | | $ | 30,894 | | | Interest-bearing deposits at other financial institutions | 246,469 | | | 246,469 | | | 224,611 | | | 224,611 | | | | | | | | | | | Federal funds sold | — | | | — | | | 60 | | | 60 | | | Level 2 | | | | | | | | | Accrued interest receivable | $ | 23,189 | | | $ | 23,189 | | | $ | 16,695 | | | $ | 16,695 | | | Level 3 | | | | | | | | | | | | | | | | | Portfolio loans receivable | $ | 3,114,264 | | | $ | 3,034,392 | | | 2,959,457 | | | $ | 2,904,762 | | | | | | | | | | | Restricted investments | 6,360 | | | N/A | | 8,397 | | | N/A | | Foreclosed real estate | 3,856 | | | 3,856 | | | 3,856 | | | 3,856 | | | | | | | | | | | Financial liabilities | | | | | | | | | Level 1 | | | | | | | | | Noninterest-bearing deposits | $ | 844,536 | | | $ | 844,536 | | | $ | 852,741 | | | $ | 852,741 | | | | | | | | | | | Level 2 | | | | | | | | | Accrued interest payable | $ | 6,843 | | | $ | 6,843 | | | $ | 8,745 | | | $ | 8,745 | | | Level 3 | | | | | | | | | Interest-bearing deposits | $ | 2,474,599 | | | $ | 2,474,743 | | | $ | 2,240,459 | | | $ | 2,243,002 | | | FHLB advances and other borrowed funds | 2,062 | | | 2,245 | | | 52,062 | | | 51,937 | |
|