FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2026

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):

March 31, 2026	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	$	—	$	41,939	$	—	$	41,939
Mortgage loans held for sale	—		28,426		—		28,426
Loans held at fair value	—		—		2,468		2,468
Forward commitments and FSC	—		686		—		686
Equity securities	646		122		—		768
Guarantee asset	—		—		250		250
IRLC, net	—		922		—		922
Equity warrants	—		—		756		756
Swap derivative assets	—		1,636		—		1,636
Total assets	$	646	$	73,731	$	3,474	$	77,851
Financial liabilities
Forward commitments and FSC	$	—	$	35	$	—	$	35
Swap derivative liabilities	—		718		—		718
Total liabilities	$	—	$	753	$	—	$	753

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
Total assets	$	650	$	87,628	$	4,181	$	92,459
Financial liabilities
Forward commitments and FSC	$	—	$	174	$	—	$	174
Swap derivative liabilities	—		2,472		—		2,472
Total liabilities	$	—	$	2,646	$	—	$	2,646

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:

	March 31, 2026
	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	$	28,426	$	28,240	$	186	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for investment	2,468		2,491		(23)		1		1		—		1		1		—
	$	30,894	$	30,731	$	163	$	1	$	1	$	—	$	1	$	1	$	—

	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)

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 March 31,
(dollars in thousands)	2026		2025
Mortgage loans held for sale	$	(569)	$	(93)
Loans held for sale	—		222
Loans held for investment	10		57
	$	(559)	$	186

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 March 31, 2026	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	3,182	$	243	$	756
Originations	—		4		—
Gains/(losses) in net income, net	10		27		—
Net charge-offs	(49)		—		—
Settlements	(675)		(24)		—
Ending balance	$	2,468	$	250	$	756

Three Months Ended March 31, 2025	Loans Held at Fair Value		Guarantee Asset		Equity Warrants
Beginning balance	$	7,283	$	235	$	765
Originations	—		11		—
Gains/(losses) in net income, net	57		36		—
Net charge-offs	(51)		—		—
Settlements	(1,177)		(21)		—
Ending balance	$	6,112	$	261	$	765

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 March 31, 2026
(dollars in thousands)	Fair Value		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Recurring fair value
Loans held for investment at fair value	$	2,468	Discounted cash flow	Discount rate	6% to 7% (6%)
Guarantee asset	250		Discounted cash flow	Discount rate Prepayment rate	5% (5%) 19% (19%)
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
Collateral dependent loans:
Commercial and industrial	31		Sales comparison, Market approach - guideline transaction method	Loss given default	82% (82%)
Commercial and industrial	8,483		Appraisal value	Commission	10% to 20% (17%)
Commercial and industrial	2,984		Sales comparison - Market value approach	Market rate adjustments	7% to 75% (41%)
Commercial and industrial	514		Income and market approach	Commission, cost to sell, closing costs	10% (10%)

	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	43		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%)

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:
March 31, 2026			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	264,051	$	264,051	$	—	$	—
Held-to-maturity debt securities, net of ACL	95,030		247		77,320		13,208
Loans, net(1)	2,666,846		—		—		2,610,936
Accrued interest receivable	11,582		11,582		—		—
Liabilities:
Term deposits(2)	371,889		339,746		—		32,171
Non-term deposits	2,469,726		2,469,726		—		—
Borrowings:
FHLB borrowings – floating rate	50,000		—		50,000		—
Federal Reserve borrowings – fixed rate	6		6		—		—
Subordinated notes – fixed-to-floating rate	44,810		—		—		41,556
Accrued interest payable	1,593		1,593		—		—

	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		—		—

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(1) Excludes loans accounted for under the fair value option of $2.5 million and $3.2 million as of March 31, 2026 and December 31, 2025, respectively, as these are carried at fair value.

(2) Term deposits due within one year totaling $339.7 million and $327.9 million as of March 31, 2026 and December 31, 2025, respectively, are classified under Level 1 fair value measurement.