Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2025

Estimated fair values as of the periods indicated are as follows:


	December 31, 2025		December 31, 2024
(In Thousands)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial assets:
Level 1 inputs:
Cash, due from banks and deposits in other banks	$145,906	$145,906	$62,736	$62,736
Investment securities available for sale	201,412	201,412	268,781	268,781
Marketable equity securities	8,392	8,392	8,719	8,719

Level 2 inputs:
Investment securities available for sale	214,451	214,451	209,836	209,836
Loans held for sale	100,323	100,323	59,957	59,957
Interest rate swaps	9,436	9,436	14,788	14,788
Retail interest rate contracts	—	—	49	49

Level 3 inputs:
Investment securities held to maturity	26,750	26,750	36,750	35,750
Loans	2,295,499	2,225,114	2,129,263	2,014,070
Purchased receivables, net	101,642	101,642	74,078	74,078
Interest rate lock commitments	923	923	465	465
Mortgage servicing rights	27,474	27,474	26,439	26,439
Commercial servicing rights	2,342	2,342	2,194	2,194

Financial liabilities:
Level 2 inputs:
Time deposits	$402,759	405,317	$418,370	$421,210

Borrowings	12,805	10,361	23,045	19,991
Interest rate swaps	7,999	7,999	13,011	13,011
Retail interest rate contracts	50	50	—	—
Level 3 inputs:

Subordinated debentures	68,924	69,564	10,310	10,897

Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:


(In Thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2025
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities	$388,737	$201,412	$187,325	$—
Municipal securities	—	—	—	—

Corporate bonds	4,952	4,952	—	—
Collateralized loan obligations	22,174	—	22,174	—
Total available for sale securities	$420,661	$206,364	$214,297	$—
Marketable equity securities	$8,392	$8,392	$—	$—
Total marketable equity securities	$8,392	$8,392	$—	$—
Interest rate swaps	$9,436	$—	$9,436	$—
Interest rate lock commitments	923	—	—	923
Mortgage servicing rights	27,474	—	—	27,474
Commercial servicing rights	2,342	—	—	2,342

Total other assets	$40,175	$—	$9,436	$30,739
Liabilities:
Interest rate swaps	$7,999	$—	$7,999	$—

Total other liabilities	$8,049	$—	$8,049	$—
December 31, 2024
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities	$432,931	$259,986	$172,945	$—
Municipal securities	—	—	—	—

Corporate bonds	8,795	8,795	—	—
Collateralized loan obligations	36,891	—	36,891	—
Total available for sale securities	$478,617	$268,781	$209,836	$—
Marketable equity securities	$8,719	$8,719	$—	$—
Total marketable equity securities	$8,719	$8,719	$—	$—
Interest rate swaps	$14,788	$—	$14,788	$—
Interest rate lock commitments	465	—	—	465
Mortgage servicing rights	26,439	—	—	26,439
Commercial servicing rights	2,194	—	—	2,194
Retail interest rate contracts	49	—	49	—
Total other assets	$43,935	$—	$14,837	$29,098
Liabilities:
Interest rate swaps	$13,011	$—	$13,011	$—

Total other liabilities	$13,011	$—	$13,011	$—

Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs

The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2025 and 2024:


(In Thousands)	Beginning balance	Change included in earnings	Purchases and issuances	Sales and settlements	Ending balance
December 31, 2025
Interest rate lock commitments	$465	($1,957)	$16,317	($13,902)	$923
Mortgage servicing rights	26,439	(3,782)	4,817	—	27,474
Commercial servicing rights	2,194	(334)	482	—	2,342
Total	$29,098	($6,073)	$21,616	($13,902)	$30,739
December 31, 2024
Interest rate lock commitments	$342	($1,743)	$14,101	($12,235)	$465
Mortgage servicing rights	19,564	(201)	7,076	—	26,439
Commercial servicing rights	2,200	(52)	46	—	2,194
Total	$22,106	($1,996)	$21,223	($12,235)	$29,098

Fair Value, Assets Measured on Nonrecurring Basis

As of and for the years ending December 31, 2025 and 2024, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis. For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.


(In Thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2025
Loans individually measured for credit losses	$2,729	$—	$—	$2,729
Other real estate owned	—	—	—	—

Total	$2,729	$—	$—	$2,729
December 31, 2024
Loans individually measured for credit losses	$—	$—	$—	$—
Other real estate owned	—	—	—	—

Total	$—	$—	$—	$—

The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the periods ended December 31, 2025, 2024 and 2023, respectively:


(In Thousands)	2025	2024	2023
Loans individually measured for credit losses	$142	$—	$—
Other real estate owned	—	—	123

Total (income) loss from nonrecurring measurements	$142	$—	$123

Schedule of Valuation Assumptions

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at December 31, 2025 and 2024:


Financial Instrument	Valuation Technique - Recurring Basis	Unobservable Input	Weighted Average or Rate Range
December 31, 2025



Interest rate lock commitment	External pricing model	Pull through rate	91.53	%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	5.88% - 20.96%
		Discount rate	9.50% - 11.00%
Commercial servicing rights	Discounted cash flow	Constant prepayment rate	3.84% - 17.55%
		Discount rate	12.00	%
December 31, 2024



Interest rate lock commitment	External pricing model	Pull through rate	93.35	%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	2.01% - 14.91%
		Discount rate	9.50% - 11.00%
Commercial servicing rights	Discounted cash flow	Constant prepayment rate	3.13% - 18.23%
		Discount rate	12.00	%


Financial Instrument	Valuation Technique - Nonrecurring Basis	Unobservable Input	Weighted Average or Rate Range
December 31, 2025
Loans individually measured for credit losses	In-house valuation of collateral	Discount rate	10	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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