XML 65 R49.htm IDEA: XBRL DOCUMENT

FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2025

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, 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
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	$	—	$	45,607	$	—	$	45,607


Mortgage loans held for sale	$	—	$	40,176	$	—	$	40,176

Loans held at fair value	$	—	$	—	$	3,182	$	3,182
Forward commitments and FSC	$	—	$	23	$	—	$	23
Equity securities	$	650	$	122	$	—	$	772
Guarantee asset	$	—	$	—	$	243	$	243
IRLC, net	$	—	$	748	$	—	$	748
Equity warrants	$	—	$	—	$	756	$	756
Swap derivative asset	$	—	$	952	$	—	$	952
Financial Liabilities
Forward commitments and FSC	$	—	$	174	$	—	$	174
Swap derivative liabilities	$	—	$	2,472	$	—	$	2,472


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 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, 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	$	40,176	$	39,513	$	663	$	—	$	—	$	—	$	—	$	—	$	—

Loans held for investment	3,182		3,215		(33)		16		17		(1)		16		17		(1)
	$	43,358	$	42,728	$	630	$	16	$	17	$	(1)	$	16	$	17	$	(1)


	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 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)	2025		2024
Mortgage loans held for sale	$	461	$	41
Loans held for sale	222		(222)
Loans held for investment	191		179
	$	874	$	(2)

Schedule of Assets and Liabilities 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, 2025	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	7,283	$	235	$	765

Originations	—		38		—

Gains/(losses) in net income, net	191		61		(9)
Net charge-offs	(185)		—		—
Settlements	(4,107)		(91)		—
Ending balance	$	3,182	$	243	$	756


Year Ended December 31, 2024	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	13,726	$	189	$	795

Originations	—		78		—

Gains/(losses) in net income, net	179		26		(30)

Net charge-offs	(1,178)		—		—
Settlements	(5,444)		(58)		—
Ending balance	$	7,283	$	235	$	765

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring or Nonrecurring Basis

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, 2025

(dollars in thousands)

Fair Value

Valuation
Technique

Significant
Unobservable Input

Range
(Weighted Average)

Recurring fair value

Loans held for investment at fair value

3,182

Discounted cash flow

Discount rate

6% to 7% (6%)

Guarantee asset

243

Discounted cash flow

Discount rate
Prepayment rate

6% (6%)

20% (20%)

Equity warrants

756

Black-Scholes option pricing model

Volatility
Risk-free interest rate
Remaining life

33% to 74% (42%)

3% (3%)

2 years

Nonrecurring fair value

OREO:

1-4 family residential

3,040

Contract value

Commission, cost to sell, closing costs

5% (5%)

Collateral dependent loans:

Commercial and industrial

Sales comparison, Market approach - Guideline transaction method

Loss given default

75% (75%)

Commercial and industrial

8,619

Appraisal value

Commission

10% to 20% (17%)

Commercial and industrial

2,071

Sales comparison - Market value approach

Market rate adjustments

7% to 75% (62%)

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% to 64% (30%)

4% (4%)

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:

Commercial and industrial

784

Sales Comparison-Market Value Approach

Market rate adjustments

11% (11%)

Commercial and industrial

Sales comparison, Market approach - guideline transaction method

Loss given default

80% (80%)

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, 2025			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	200,281	$	200,281	$	—	$	—
Held-to-maturity debt securities, net of ACL	94,970		248		79,664		10,723
Loans, net(1)	2,625,800		—		—		2,567,911
Accrued interest receivable	11,209		11,209		—		—
Liabilities:
Term deposits(2)	352,473		327,898		—		24,825
Non-term deposits	2,394,102		2,394,102		—		—
Borrowings:
FHLB borrowings – fixed rate	12,332		12,332		—		—
FHLB borrowings – floating rate	50,000		—		50,000		—
Federal Reserve borrowings – fixed rate	509		509		—		—
Subordinated notes – fixed-to-floating rate	44,772		—		—		42,017
Accrued interest payable	1,295		1,295		—		—


	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		—		—

_____________________________

(1)Excludes loans accounted for under the fair value option of $3.2 million and $7.3 million as of December 31, 2025 and 2024, respectively, as these are carried at fair value.

(2)Term deposits due within one year totaling $327.9 million and $429.0 million as of December 31, 2025 and 2024, respectively, are classified under Level 1 fair value measurement.