FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of fair value assets and liabilities measured on recurring basis

The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):

September 30, 2025	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Reported Balance
Financial Assets
Available-for-sale debt securities, at fair value
GNMA MBS – residential	$	—	$	9,869	$	—	$	9,869
FNMA MBS – residential	$	—	$	14,825	$	—	$	14,825
Government CMO and MBS – commercial	$	—	$	24,483	$	—	$	24,483
Mortgage loans held for sale	$	—	$	21,806	$	—	$	21,806
Loans held at fair value	$	—	$	—	$	4,208	$	4,208
Equity securities	$	647	$	122	$	—	$	769
Guarantee asset	$	—	$	—	$	266	$	266
IRLC, net	$	—	$	1,013	$	—	$	1,013
Equity warrants	$	—	$	—	$	765	$	765
Swap derivative assets	$	—	$	1,014	$	—	$	1,014
Financial Liabilities
Forward commitments and FSC	$	—	$	110	$	—	$	110
Swap derivative liabilities	$	—	$	2,875	$	—	$	2,875

December 31, 2024	Quoted 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

Schedule of loans measured at fair value under fair value option

The following 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:

	September 30, 2025
	Total Loans						Non Accruals						90 Days or More Past Due
(dollars in thousands)	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	21,806	$	21,436	$	370	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for investment	4,208		4,318		(110)		136		140		(4)		136		140		(4)
	$	26,014	$	25,754	$	260	$	136	$	140	$	(4)	$	136	$	140	$	(4)

	December 31, 2024
	Total Loans						Non Accruals						90 Days or More Past Due
(dollars in thousands)	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	25,455	$	25,217	$	238	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for sale	251		594		(343)		251		594		(343)		251		594		(343)
Loans held for investment	7,283		7,507		(224)		47		52		(5)		47		52		(5)
	$	32,989	$	33,318	$	(329)	$	298	$	646	$	(348)	$	298	$	646	$	(348)

Schedule of changes in fair value of loans

The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted:

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024
Mortgage loans held for sale	$	(126)	$	(346)	$	129	$	16
Loans held for sale	—		—		222		—
Loans held for investment	25		66		114		166
	$	(101)	$	(280)	$	465	$	182

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):

Three Months Ended September 30, 2025	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	5,099	$	244	$	765
Originations	—		9		—
Gains/(losses) in net income, net	25		37		—
Net charge-offs	(7)		—		—
Settlements	(909)		(24)		—
Ending balance	$	4,208	$	266	$	765

Three Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	10,190	$	228	$	795
Originations	—		21		—
Gains/(losses) in net income, net	66		39		—
Net charge-offs	(299)		—		—
Settlements	(1,311)		(18)		—
Ending balance	$	8,646	$	270	$	795

Nine Months Ended September 30, 2025	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	7,283	$	235	$	765
Originations	—		29		—
Gains/(losses) in net income, net	114		69		—
Net charge-offs	(64)		—		—
Settlements	(3,125)		(67)		—
Ending balance	$	4,208	$	266	$	765

Nine Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	13,726	$	189	$	795
Originations	—		68		—
Gains/(losses) in net income, net	166		50		—
Net charge-offs	(1,016)		—		—
Settlements	(4,230)		(37)		—
Ending balance	$	8,646	$	270	$	795

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 September 30, 2025
(dollars in thousands)	Fair Value		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Recurring fair value
Loans held for investment at fair value	$	4,208	Discounted cash flow	Discount rate	7% to 8% (7%)
Guarantee asset	266		Discounted cash flow	Discount rate Prepayment rate	5% (5%) 10% (10%)
Equity warrants	765		Black-Scholes option pricing model	Volatility 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 Residential	4,389		Appraisal value	Commission, cost to sell, closing costs	5% (5 %)
Collateral dependent loans, net of ACL:
Commercial and Industrial	48		Sales comparison, Market approach - Guideline transaction method	Loss given default	73% (73%)
Commercial and Industrial	8,958		Appraisal value	Commission	10% to 20% (17%)
Commercial and Industrial	1,561		Sales comparison - Market value approach	Market rate adjustments	7% to 75% (59)%

	Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2024
(dollars in thousands)	Fair Value		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Recurring fair value
Loans held for investment at fair value	$	7,283	Discounted cash flow	Discount rate	7% to 8% (7%)
Guarantee asset	235		Discounted cash flow	Discount rate Prepayment rate	5% (5%) 15% (15%)
Equity warrants	765		Black-Scholes option pricing model	Volatility 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 Residential	10,314		Appraisal value	Commission, cost to sell, closing costs	5% (5%)
Commercial and Industrial	25,615		Appraisal value	Commission, cost to sell, closing costs	6% (6%)
Collateral dependent loans, net of ACL:
Commercial and Industrial	784		Sales comparison - Market value approach	Market rate adjustments	11% (11%)
Commercial and Industrial	36		Sales comparison, Market approach - Guideline transaction method	Loss given default	80% (80%)

Summary of carrying amounts and estimated fair values of financial instruments

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:
September 30, 2025			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	355,639	$	355,639	$	—	$	—
Held-to-maturity debt securities, net of ACL	98,205		248		84,784		8,557
Loans, net(1)	2,565,671		—		—		2,510,963
Accrued interest receivable	11,907		11,907		—		—
Liabilities:
Term deposits(2)	349,533		297,374		—		52,868
Non-term deposits	2,499,378		2,499,378		—		—
Borrowings:
FHLB borrowings – floating rate	50,000		—		50,000		—
Federal Reserve borrowings – fixed rate	867		867		—		—
Subordinated notes – fixed-to-floating rate	44,724		—		—		43,329
Accrued interest payable	1,689		1,689		—		—

	Carrying Amount		Fair Value Measurements Using:
December 31, 2024			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	237,941	$	237,941	$	—	$	—
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 receivable	10,364		10,364		—		—
Liabilities:
Term deposits(2)	471,415		429,008		—		42,764
Non-term deposits	2,042,794		2,042,794		—		—
Borrowings:
FHLB borrowings – fixed rate	5,000		5,000		—		—
FHLB borrowings – floating rate	50,000		—		50,000		—
Federal Reserve borrowings – fixed rate	2,038		2,038		—		—
Subordinated notes – fixed-to-floating rate	52,565		—		—		48,451
Accrued interest payable	1,995		1,995		—		—

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(1) Excludes loans accounted for under the fair value option of $4.2 million and $7.3 million as of September 30, 2025 and December 31, 2024, respectively, as these are carried at fair value.

(2) Term deposits due within one year totaling $297.4 million and $429.0 million as of September 30, 2025 and December 31, 2024, respectively, are classified under Level 1 fair value measurement.