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FAIR VALUE (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of fair value assets and liabilities measured on recurring basis
The following tables present assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):
December 31, 2024Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial Assets
Mortgage loans held for sale$— $25,455 $— $25,455 
Loans held for sale$— $251 $— $251 
Loans held at fair value$— $— $7,283 $7,283 
Forward commitments and FSC$— $225 $— $225 
Equity securities$630 $122 $— $752 
Guarantee asset$— $— $235 $235 
IRLC, net$— $— $358 $358 
Equity warrants$— $— $765 $765 
Swap derivative asset$— $1,060 $— $1,060 
Financial Liabilities
Forward commitments and FSC$— $13 $— $13 
Swap derivative liabilities$— $956 $— $956 
December 31, 2023Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Reported
Balance
Financial Assets
Mortgage loans held for sale$— $7,254 $— $7,254 
Loans held at fair value$— $— $13,726 $13,726 
Forward commitments and FSC$— $7 $— $7 
Equity securities$636 $122 $— $758 
Guarantee asset$— $— $189 $189 
IRLC, net$— $— $345 $345 
Equity warrants$— $— $795 $795 
Swap derivative asset$— $763 $763 
Financial Liabilities
Forward commitments and FSC$— $358 $— $358 
Swap derivative liabilities$— $740 $— $740 
Schedule of information about the fair value carrying amount and unpaid principal outstanding of loans
The following tables provide more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted:
December 31, 2024
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)Fair Value Carrying AmountUnpaid Principal BalanceDifferenceFair Value Carrying AmountUnpaid Principal BalanceDifferenceFair Value Carrying AmountUnpaid Principal BalanceDifference
Mortgage loans held for sale$25,455 $25,217 $238 $— $— $— $— $— $— 
Loans held for sale251 594 (343)251 594 (343)251 594 (343)
Loans held for investment, fair value option7,283 7,507 (224)47 52 (5)47 52 (5)
$32,989 $33,318 $(329)$298 $646 $(348)$298 $646 $(348)
December 31, 2023
Total LoansNon Accruals90 Days or More Past Due
(dollars in thousands)Fair Value Carrying AmountUnpaid Principal BalanceDifferenceFair Value Carrying AmountUnpaid Principal BalanceDifferenceFair Value Carrying AmountUnpaid Principal BalanceDifference
Mortgage loans held for sale$7,254 $7,106 $148 $— $— $— $— $— $— 
Loans held for investment, fair value option13,726 14,129 (403)210 220 (10)210 220 (10)
$20,980 $21,235 $(255)$210 $220 $(10)$210 $220 $(10)
Schedule of changes in fair value of loans
The following table presents the changes in fair value of loans accounted for under the fair value option as of the dates noted (dollars in thousands):
Year Ended December 31,
(dollars in thousands)20242023
Mortgage loans held for sale$41 $59 
Loans held for sale(222)(20)
Loans held for investment179 (309)
$(2)$(270)
The following summarizes the activity pertaining to loans accounted for under the fair value option for the years noted (dollars in thousands):
Year Ended December 31,
Mortgage loans held for sale20242023
Balance at beginning of period$7,254 $8,839 
Loans originated383,307 276,045 
Fair value changes41 59 
Sales(365,062)(277,683)
Settlements(85)(6)
Balance at end of period$25,455 $7,254 
Year Ended December 31,
Loans held for sale20242023
Balance at beginning of period$— $1,965 
Loans transferred from held for investment5,834 39,221 
Fair value changes(222)(20)
Sales(5,361)(40,761)
Settlements— (405)
Balance at end of period$251 $— 
Year Ended December 31,
Loans held for investment, fair value option20242023
Balance at beginning of period$13,726 $23,321 
Loans acquired— 1,173 
Fair value changes179 (309)
Net charge-offs(1,178)(1,700)
Settlements(5,444)(8,759)
Balance at end of period$7,283 $13,726 
Summary of assets and liability for level 3 instruments measured at fair value on recurring basis
The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands):
Year Ended December 31, 2024Loans Held at Fair ValueGuarantee AssetIRLCEquity Warrants
Beginning balance$13,726 $189 $345 $795 
Acquisitions— — 3,160 — 
Originations— 78 (3,889)— 
Gains/(losses) in net income, net179 26 742 (30)
Net charge-offs(1,178)— — — 
Settlements(5,444)(58)— — 
Ending balance$7,283 $235 $358 $765 
Year Ended December 31, 2023Loans Held at Fair ValueGuarantee AssetIRLCEquity Warrants
Beginning balance$23,321 $143 $229 $825 
Acquisitions1,173 — 1,997 — 
Originations— 32 (3,272)— 
Gains/(losses) in net income, net(309)38 1,391 (30)
Net charge-offs(1,700)— — — 
Other settlements(8,759)(24)— — 
Ending balance$13,726 $189 $345 $795 
Nonrecurring Fair Value
Other Real Estate Owned ("OREO"): Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. They are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than on an annual basis. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. OREO is evaluated annually for additional impairment and adjusted accordingly.
Collateral Dependent Loans, net of ACL: The fair value of collateral dependent loans individually analyzed and not included in the pooled loan analysis under the ACL is generally based on recent appraisals and the value of any credit enhancements associated with the loan. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. Collateral dependent loans are evaluated monthly and adjusted accordingly if needed.
Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics.
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs
The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted:
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2024
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$7,283 Discounted cash flowDiscount rate
7% to 8% (7%)
Guarantee asset235 Discounted cash flowDiscount rate
Prepayment rate
5% (5)%
15% (15%)
IRLC, net358 Best execution modelPull through
76% to 100%
(94%)
Equity Warrants765 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
21.3% to 63.8% (30.2%)
4.05% to 4.16% (4.14)%
2 years
Nonrecurring fair value
OREO:
1-4 Family Residential10,314 Appraisal valueCommission, cost to sell, closing costs
5% (5)%
Commercial and Industrial25,615 Appraisal valueCommission, cost to sell, closing costs
6% (6)%
Collateral dependent loans:
Commercial and Industrial784 Sales Comparison-Market Value ApproachMarket rate adjustments
11% (11%)
Commercial and Industrial36 Sales comparison, Market approach - guideline transaction methodLoss given default
80% (80)%
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023
(dollars in thousands)Fair ValueValuation
Technique		Significant
Unobservable Input		Range
(Weighted Average)
Recurring fair value
Loans held for investment at fair value$13,726 Discounted cash flowDiscount rate
7% to 8% (8%)
Guarantee asset189 Discounted cash flowDiscount rate
Prepayment rate
5% (5%)
5% (5%)
IRLC, net345 Best execution modelPull through
48% to 100% (86%)
Equity Warrants795 Black-Scholes option pricing modelVolatility
Risk-free interest rate
Remaining life
20.1% to 23.0% (22.4)%
4.62% (4.62)%
2 to 2.03 years
Nonrecurring fair value
Collateral dependent loans:
Consumer and Other7,500 Sales Comparison-Market Value ApproachMarket rate adjustments
46% (8)%
1-4 Family Residential2,438 Sales Comparison-Market Value ApproachMarket rate adjustments
46% (8)%
Commercial and Industrial24,791 Sales Comparison-Market Value ApproachMarket rate adjustments
46% (8)%
Commercial and Industrial148 Sales comparison,
Market approach -
guideline transaction
method		Loss given default
14% to 62% (20)%
Commercial and Industrial799 Sales Comparison-Market Value ApproachMarket rate adjustments
11% (11)%
Owner Occupied CRE3,980 Sales Comparison-Market Value ApproachMarket rate adjustments
46% (8)%
Schedule of carrying amounts and estimated fair value of financial instruments not carried at fair value
The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands):
Carrying
Amount		Fair Value Measurements Using:
December 31, 2024Level 1Level 2Level 3
Assets:
Cash and cash equivalents$236,041 $236,041 $— $— 
Held-to-maturity debt securities, net of ACL
75,724 242 60,044 7,875 
Loans, net(1)
2,399,952 — — 2,325,081 
Accrued interest receivable10,364 10,364 — — 
Liabilities:
Term deposits(2)
471,415 429,008 — 42,764 
Non-term deposits2,042,794 2,042,794 — — 
Borrowings:
FHLB borrowings – fixed rate5,000 5,000 — — 
FHLB borrowings – floating rate50,000 — 50,000 — 
Federal Reserve borrowings – fixed rate2,038 2,038 — — 
Subordinated notes – fixed-to-floating rate52,565 — — 48,451 
Accrued interest payable1,995 1,995 — — 
Carrying
Amount		Fair Value Measurements Using:
December 31, 2023Level 1Level 2Level 3
Assets:
Cash and cash equivalents$254,442 $254,442 $— $— 
Held-to-maturity debt securities, net of ACL
74,102 243 58,229 8,144 
Loans, net(1)
2,493,258 — — 2,395,468 
Accrued interest receivable11,428 11,428 — — 
Liabilities:
Term deposits(2)
496,452 414,613 — 82,564 
Non-term deposits2,032,587 2,032,587 — — 
Borrowings:
FHLB borrowings – fixed rate41,175 41,175 — — 
FHLB borrowings – floating rate50,000 — 49,986 — 
Federal Reserve borrowings – fixed rate34,536 3,539 30,936 — 
Subordinated notes – fixed-to-floating rate52,340 — — 48,228 
Accrued interest payable3,793 3,793 — — 
_____________________________
(1)Excludes loans accounted for under the fair value option of $7.3 million and $13.7 million as of December 31, 2024 and 2023, respectively, as these are carried at fair value.
(2)Term deposits due within one year totaling $429.0 million and $414.6 million as of December 31, 2024 and 2023, respectively, are classified under Level 1 fair value measurement.