XML 28 R17.htm IDEA: XBRL DOCUMENT v3.26.1
FAIR VALUE
 3 Months Ended
Mar. 31, 2026
FAIR VALUE  
FAIR VALUE

9.FAIR VALUE

​

Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

​

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

​

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

​

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

​

Authoritative guidance requires maximization of use of observable inputs and minimization of use of unobservable inputs in fair value measurements. Where there exists limited or no observable market data, the Company derives its own estimates by generally considering characteristics of the asset/liability, the current economic and competitive environment, and other factors. For this reason, results cannot be determined with precision and may not be realized on an actual sale or immediate settlement of the asset or liability.

​

The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

​

Available-for-sale debt securities: Except for the Bank’s U.S. Treasury securities and its TRUP investment, the fair value of AFS debt securities is typically determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

​

The Bank’s U.S. Treasury securities are based on quoted market prices (Level 1 inputs) and considered highly liquid.

​

As of March 31, 2026 and December 31, 2025 the Company owned one nominal illiquid AFS private label MBS with an amortized cost of $0 in both periods. At December 31, 2025, the Bank classified this MBS as a Level 3 and utilized an income valuation model (present value model) approach in determining the fair value of this security. At March 31, 2026, the Company elected to omit obtaining Level 3 pricing based on the insignificance of the balance with the fair value stated at par and reported along with the other MBS securities under Level 2 inputs.

​

The Company acquired its TRUP investment in 2015 and considers the most recent bid price for the same instrument to approximate market value as of March 31, 2026. The Company’s TRUP investment is considered highly illiquid and is valued using Level 3 inputs, as the most recent bid price for this instrument is not always considered generally observable.

​

Equity securities with readily determinable fair value: The fair value of the Company’s Freddie Mac preferred stock is determined based on market prices of similar securities, as described above (Level 2 inputs).

​

Mortgage loans held for sale, at fair value: The fair value of mortgage loans HFS is determined using quoted secondary market prices. Mortgage loans HFS are classified as Level 2 in the fair value hierarchy.

​

Consumer loans held for sale, at fair value: The fair value for these loans is based on contractual sales terms, Level 3 inputs.

​

Mortgage banking derivatives: Mortgage banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts (“forward contracts”) and interest rate lock loan commitments. The fair value of the Bank’s derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Bank. Forward contracts and rate lock loan commitments are classified as Level 2 in the fair value hierarchy.

​

Interest rate swap agreements: Interest rate swaps are recorded at fair value on a recurring basis. The Company values its interest rate swaps using a third-party valuation service and classifies such valuations as Level 2. Valuations of these interest rate swaps are also received from the relevant dealer counterparty and validated against the Company’s calculations. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities.

​

Discussion of assets measured at fair value on a non-recurring basis follows:

​

Collateral-dependent loans: Collateral-dependent loans generally reflect partial charge-downs to their respective fair value, which is commonly based on recent real estate appraisals or BPOs. These appraisals or BPOs may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the process by the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Collateral-dependent loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

​

Other real estate owned: 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. These assets 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 or BPOs. These appraisals or BPOs may utilize a single approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the process by the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value.

​

Appraisals for collateral-dependent loans, impaired premises 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 Bank. Once the appraisal is received, a member of the Bank’s CCAD 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. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g., RRE or CRE, and may lead to additional adjustments to the value of unliquidated collateral of similar class.

​

Mortgage servicing rights: At least quarterly, MSR’s are evaluated for impairment based upon the fair value of the MSR’s as compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded, and the respective individual tranche is carried at fair value. If the carrying amount of an individual tranche does not exceed fair value, impairment is reversed if previously recognized and the carrying value of the individual tranche is based on the amortization method. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and can generally be validated against available market data (Level 2).

​

All transfers between levels are generally recognized at the end of each quarter. With the exception of the AFS private label MBS that transferred from Level 3 to Level 2 during the three months ended March 31, 2026, there were no other transfers into or out of Level 1, 2, or 3 assets during the three months ended March 31, 2026 and 2025.

​

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Bank has elected the fair value option, are summarized below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at 

​

​

​

​

​

March 31, 2026 Using:

​

​

​

​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

Significant

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

​

​

Active Markets

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable

​

Total

​

​

Assets

​

Inputs

​

Inputs

​

Fair

(in thousands)

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

Value

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale debt securities:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities and U.S. Government agencies

​

$

34,859

​

$

232,686

​

$

—

​

$

267,545

Private label mortgage-backed security

​

 

—

​

 

1,359

​

 

—

​

 

1,359

Mortgage-backed securities - residential

​

 

—

​

 

590,246

​

 

—

​

 

590,246

Collateralized mortgage obligations

​

 

—

​

 

16,698

​

 

—

​

 

16,698

Corporate bonds

​

​

—

​

​

1,001

​

​

—

​

​

1,001

Trust preferred security

​

 

—

​

 

—

​

 

4,072

​

 

4,072

Total available-for-sale debt securities

​

$

34,859

​

$

841,990

​

$

4,072

​

$

880,921

​

​

​

​

​

​

​

​

​

​

​

​

​

Equity securities with a readily determinable fair value:

​

​

​

​

​

​

​

​

​

​

​

​

Freddie Mac preferred stock

​

$

—

​

$

945

​

$

—

​

$

945

Total equity securities with a readily determinable fair value

​

$

—

​

$

945

​

$

—

​

$

945

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans held for sale

​

$

—

​

$

12,953

​

$

—

​

$

12,953

Consumer loans held for sale

​

​

—

​

​

—

​

​

9,430

​

​

9,430

Rate lock commitments

​

 

—

​

 

358

​

 

—

​

 

358

Mandatory forward contracts

​

​

—

​

​

400

​

​

—

​

​

400

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

—

​

​

5,116

​

​

—

​

​

5,116

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap agreements - Bank clients and institutional swap dealer

​

$

—

​

$

5,116

​

$

—

​

$

5,116

Interest rate swap agreements on FHLB advances

​

​

—

​

​

1,855

​

​

—

​

​

1,855

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

December 31, 2025 Using:

​

​

​

​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

Significant

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

​

​

Active Markets

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable

​

Total

​

​

Assets

​

Inputs

​

Inputs

​

Fair

(in thousands)

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

Value

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale debt securities:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities and U.S. Government agencies

​

$

34,854

​

$

258,521

​

$

—

​

$

293,375

Private label mortgage-backed security

​

 

—

​

 

—

​

 

1,439

​

 

1,439

Mortgage-backed securities - residential

​

 

—

​

 

567,909

​

 

—

​

 

567,909

Collateralized mortgage obligations

​

 

—

​

 

16,907

​

 

—

​

 

16,907

Corporate bonds

​

​

—

​

​

1,001

​

​

—

​

​

1,001

Trust preferred security

​

 

—

​

 

—

​

 

4,062

​

 

4,062

Total available-for-sale debt securities

​

$

34,854

​

$

844,338

​

$

5,501

​

$

884,693

​

​

​

​

​

​

​

​

​

​

​

​

​

Equity securities with a readily determinable fair value:

​

​

​

​

​

​

​

​

​

​

​

​

Freddie Mac preferred stock

​

$

—

​

$

945

​

$

—

​

$

945

Total equity securities with a readily determinable fair value

​

$

—

​

$

945

​

$

—

​

$

945

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans held for sale

​

$

—

​

$

7,516

​

$

—

​

$

7,516

Consumer loans held for sale

​

​

—

​

​

—

​

​

10,968

​

​

10,968

Rate lock commitments

​

 

—

​

 

279

​

 

—

​

 

279

Mandatory forward contracts

​

​

—

​

​

—

​

​

—

​

​

—

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

—

​

​

6,321

​

​

—

​

​

6,321

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Mandatory forward contracts

​

$

—

​

$

29

​

$

—

​

$

29

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

—

​

​

3,745

​

​

—

​

​

3,745

Interest rate swap agreements on FHLB advances

​

​

—

​

​

2,674

​

​

—

​

 

2,674

​

Trust Preferred Security

​

The following table presents a reconciliation of the Company’s TRUP investment measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Three Months Ended

​

​

​

March 31, 

​

(dollars in thousands)

​

2026

​

2025

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,062

​

$

4,034

​

Total gains or losses included in earnings:

​

​

​

​

​

​

​

Discount accretion

​

​

14

​

​

16

​

Net change in unrealized gain (loss)

​

 

(4)

​

 

23

​

Balance, end of period

​

$

4,072

​

$

4,073

​

​

The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker.

​

Mortgage Loans Held for Sale

​

The Bank has elected the fair value option for mortgage loans HFS. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of March 31, 2026, and December 31, 2025.

​

The aggregate fair value, contractual balance, and unrealized gain were as follows:

​

​

​

​

​

​

​

​

​

(in thousands)

  ​ ​ ​

March 31, 2026

  ​ ​ ​

December 31, 2025

 

​

​

​

​

​

​

​

​

Aggregate fair value

​

$

12,953

​

$

7,516

​

Contractual balance

​

 

12,862

​

 

7,367

​

Unrealized gain

​

 

91

​

 

149

​

​

The total amount of net gains from changes in fair value included in earnings for mortgage loans HFS, at fair value, are presented in the following table:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

  ​ ​ ​

​

​

March 31, 

​

(dollars in thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

​

​

​

​

​

​

​

Interest income

​

$

98

​

$

166

​

Change in fair value

​

 

(58)

​

 

(45)

​

Total included in earnings

​

$

40

​

$

121

​

​

Consumer Loans Held for Sale

​

RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of March 31, 2026, and December 31, 2025.

​

The significant unobservable inputs in the fair value measurement of the Bank’s short-term installment loans are the net contractual premiums and level of loans sold at a discount price. Significant fluctuations in any of those inputs in isolation would result in a significantly lower/higher fair value measurement.

​

The following table presents quantitative information about recurring Level 3 fair value measurement inputs for installment loans:

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Fair

  ​ ​ ​

Valuation

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

​

March 31, 2026 (dollars in thousands)

​

Value

​

Technique

​

Unobservable Inputs

​

Rate

​

​

​

​

​

​

​

​

​

​

Consumer loans held for sale

​

$

9,430

 

Contract Terms

 

(1) Net Premium

 

0.15%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

(2) Discounted Sales

 

10%

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Fair

  ​ ​ ​

Valuation

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

​

December 31, 2025 (dollars in thousands)

​

Value

​

Technique

​

Unobservable Inputs

​

Rate

​

​

​

​

​

​

​

​

​

​

Consumer loans held for sale

​

$

10,968

 

Contract Terms

 

(1) Net Premium

 

0.15%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

(2) Discounted Sales

 

10%

​

The aggregate fair value, contractual balance, and unrealized gain on consumer loans HFS, at fair value, were as follows:

​

​

​

​

​

​

​

​

​

(in thousands)

  ​ ​ ​

March 31, 2026

  ​ ​ ​

December 31, 2025

​

​

​

​

​

​

​

​

​

Aggregate fair value

​

$

9,430

​

$

10,968

​

Contractual balance

​

 

9,549

​

 

11,044

​

Unrealized loss

​

 

(119)

​

 

(76)

​

​

The total amount of net gains from changes in fair value included in earnings for consumer loans HFS, at fair value, follows:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

(dollars in thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

​

​

​

​

​

​

​

Interest income

​

$

1,686

​

$

1,078

​

Change in fair value

​

 

21

​

 

(21)

​

Total included in earnings

​

$

1,707

​

$

1,057

​

​

​

Assets measured at fair value on a non-recurring basis are summarized below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

March 31, 2026 Using:

​

​

​

​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

Significant

  ​ ​ ​

​

​

  ​ ​ ​

  ​ ​ ​

​

​

​

Active Markets

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable

​

Total

​

​

Assets

​

Inputs

​

Inputs

​

Fair

(in thousands)

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans:

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate:

​

​

​

​

​

​

​

​

​

​

​

​

Owner-occupied

​

$

—

​

$

—

​

$

751

​

$

751

Commercial real estate:

​

 

​

​

​

​

​

​

​

​

​

​

Multi-Family

​

​

—

​

 

—

​

 

1,233

​

 

1,233

Total collateral-dependent loans

​

$

—

​

$

—

​

$

1,984

​

$

1,984

​

​

​

​

​

​

​

​

​

​

​

​

​

Other real estate owned:

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate:

​

​

​

​

​

​

​

​

​

​

​

​

Nonowner-occupied

​

$

—

​

$

—

​

$

896

​

$

896

Total other real estate owned

​

$

—

​

$

—

​

$

896

​

$

896

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

December 31, 2025 Using:

​

​

​

​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

Significant

  ​ ​ ​

​

​

  ​ ​ ​

  ​ ​ ​

​

​

​

Active Markets

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable

​

Total

​

​

Assets

​

Inputs

​

Inputs

​

Fair

(in thousands)

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans:

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate:

​

​

​

​

​

​

​

​

​

​

​

​

Owner-occupied

​

$

—

​

$

—

​

$

412

​

$

412

Nonowner-occupied

​

​

—

​

​

—

​

​

306

​

​

306

Commercial real estate:

​

 

​

​

​

​

​

​

​

​

​

​

Owner-occupied

​

​

—

​

​

—

​

​

1,260

​

​

1,260

Total collateral-dependent loans

​

$

—

​

$

—

​

$

1,978

​

$

1,978

​

​

​

​

​

​

​

​

​

​

​

​

​

Other real estate owned:

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate

​

​

​

​

​

​

​

​

​

​

​

​

Owner-occupied

​

$

—

​

$

—

​

$

328

​

$

328

Commercial real estate:

​

​

​

​

​

​

​

​

​

​

​

​

Nonowner-occupied

​

​

—

​

​

—

​

​

949

​

$

949

Total other real estate owned

​

$

—

​

$

—

​

$

1,277

​

$

1,277

​

​

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis:

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Range

​

​

Fair

​

Valuation

​

Unobservable

​

(Weighted

March 31, 2026 (dollars in thousands)

​

Value

​

Technique

​

Inputs

​

Average)

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans - residential real estate owner-occupied

​

$

751

 

Appraisal

 

Appraisal discounts

 

10% (10%)

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans - Multi-Family

​

$

1,233

 

Appraisal

 

Appraisal discounts

 

13% (13%)

​

​

​

​

​

​

​

​

​

​

Other real estate owned - commercial real estate nonowner-occupied

​

$

896

 

Appraisal

 

Appraisal discounts

 

67% (67%)

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Range

​

​

Fair

​

Valuation

​

Unobservable

​

(Weighted

December 31, 2025 (dollars in thousands)

​

Value

​

Technique

​

Inputs

​

Average)

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans - residential real estate owner-occupied

​

$

412

 

Appraisal

 

Appraisal discounts

 

10% (10%)

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans - residential real estate nonowner occupied

​

$

306

 

Appraisal

 

Appraisal discounts

 

10% (10%)

​

​

​

​

​

​

​

​

​

​

Collateral-dependent loans - commercial real estate owner-occupied

​

$

1,260

 

Appraisal

 

Appraisal discounts

 

13%-70% (27%)

​

​

​

​

​

​

​

​

​

​

Other real estate owned - residential real estate

​

$

328

 

Appraisal

 

Appraisal discounts

 

10% (10%)

​

​

​

​

​

​

​

​

​

​

Other real estate owned - commercial real estate nonowner-occupied

​

$

949

 

Appraisal

 

Appraisal discounts

 

65% (65%)

​

Collateral-Dependent Loans

​

Collateral-dependent loans are generally measured for loss using the fair value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial review and then to evaluate the need for an update to this value on an as necessary or possibly annual basis thereafter (depending on the market conditions impacting the value of the collateral). The Bank may discount the valuation amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal or BPO is not available at the time of a loan’s loss review, the Bank may apply a discount to the existing value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The review generally results in a partial charge-off of the loan if fair value, less selling costs, are below the loan’s carrying value. Collateral-dependent loans are valued within Level 3 of the fair value hierarchy.

​

During the three months ended March 31, 2026, and 2025, the Provision recorded for collateral-dependent loans was not material.

​

​

Other Real Estate Owned

​

OREO, which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is determined from external appraisals or BPOs using judgments and estimates of external professionals. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3.

​

Detail of OREO carrying value and write downs follows:

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

​

​

​

(in thousands)

​

March 31, 2026

  ​ ​ ​

December 31, 2025

  ​ ​ ​

​

​

​

​

​

​

​

​

Other real estate owned carried at fair value

​

$

896

​

$

1,277

​

Total carrying value of other real estate owned

​

$

896

​

$

1,277

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

  ​ ​ ​

​

​

March 31, 

​

(in thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

​

​

​

​

​

​

​

Other real estate owned write-downs during the period

​

$

53

​

$

53

​

​

Financial Instruments

​

The carrying amounts and estimated exit price fair values of financial instruments follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

March 31, 2026:

​

  ​ ​ ​

​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

Total

​

​

Carrying

​

​

​

​

​

​

​

​

​

​

Fair

(in thousands)

​

Value

​

Level 1

​

Level 2

​

Level 3

​

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and cash equivalents

​

$

599,105

​

$

599,105

​

$

—

​

$

—

​

$

599,105

Available-for-sale debt securities

​

 

880,921

​

 

34,859

​

 

841,990

​

 

4,072

​

 

880,921

Held-to-maturity debt securities

​

 

4,775

​

 

—

​

 

4,775

​

 

—

​

 

4,775

Equity securities with a readily determinable fair value

​

​

945

​

​

—

​

​

945

​

​

—

​

​

945

Mortgage loans held for sale, at fair value

​

 

12,953

​

 

—

​

 

12,953

​

 

—

​

 

12,953

Consumer loans held for sale, at fair value

​

​

9,430

​

​

—

​

​

—

​

​

9,430

​

​

9,430

Consumer loans held for sale, at the lower of cost or fair value

​

​

19,399

​

​

—

​

​

—

​

​

19,489

​

​

19,489

Loans, net

​

 

5,275,133

​

 

—

​

 

—

​

 

5,243,154

​

 

5,243,154

Federal Home Loan Bank stock

​

 

27,014

​

 

—

​

 

—

​

 

—

​

 

NA

Accrued interest receivable

​

 

21,261

​

 

—

​

 

21,261

​

 

—

​

 

21,261

Mortgage servicing rights

​

​

6,693

​

​

—

​

​

17,702

​

​

—

​

​

17,702

Rate lock commitments

​

​

358

​

​

—

​

​

358

​

​

—

​

​

358

Mandatory forward contracts

​

​

400

​

​

—

​

​

400

​

​

—

​

​

400

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

5,116

​

​

—

​

​

5,116

​

​

—

​

​

5,116

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest-bearing deposits

​

$

1,275,427

​

$

—

​

$

1,275,427

​

$

—

​

$

1,275,427

Transaction deposits

​

 

3,549,914

​

 

—

​

 

3,549,914

​

 

—

​

 

3,549,914

Time deposits

​

 

683,779

​

 

—

​

 

686,716

​

 

—

​

 

686,716

Securities sold under agreements to repurchase and other short-term borrowings

​

 

81,337

​

 

—

​

 

81,337

​

 

—

​

 

81,337

Federal Home Loan Bank advances

​

 

366,500

​

 

—

​

 

365,324

​

 

—

​

 

365,324

Accrued interest payable

​

 

4,258

​

 

—

​

 

4,258

​

 

—

​

 

4,258

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

5,116

​

​

—

​

​

5,116

​

​

—

​

​

5,116

Interest rate swap agreements on FHLB advances

​

​

1,855

​

​

—

​

​

1,855

​

​

—

​

​

1,855

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

December 31, 2025:

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

Total

​

​

Carrying

​

​

​

​

​

​

​

​

​

​

Fair

(in thousands)

​

Value

​

Level 1

​

Level 2

​

Level 3

​

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and cash equivalents

​

$

219,972

​

$

219,972

​

$

—

​

$

—

​

$

219,972

Available-for-sale debt securities

​

 

884,693

​

 

34,854

​

 

844,338

​

 

5,501

​

 

884,693

Held-to-maturity debt securities

​

 

4,944

​

 

—

​

 

4,929

​

 

—

​

 

4,929

Equity securities with a readily determinable fair value

​

​

945

​

​

—

​

​

945

​

​

—

​

​

945

Mortgage loans held for sale, at fair value

​

 

7,516

​

 

—

​

 

7,516

​

 

—

​

 

7,516

Consumer loans held for sale, at fair value

​

​

10,968

​

​

—

​

​

—

​

​

10,968

​

​

10,968

Consumer loans held for sale, at the lower of cost or fair value

​

​

17,027

​

​

—

​

​

—

​

​

17,124

​

​

17,124

Other loans held for sale, at the lower of cost or fair value

​

​

81,839

​

​

—

​

​

—

​

​

82,837

​

​

82,837

Loans, net

​

 

5,360,977

​

 

—

​

 

—

​

 

5,332,160

​

 

5,332,160

Federal Home Loan Bank stock

​

 

32,114

​

 

—

​

 

—

​

 

—

​

 

NA

Accrued interest receivable

​

 

22,291

​

 

—

​

 

22,291

​

 

—

​

 

22,291

Mortgage servicing rights

​

​

6,811

​

​

—

​

​

17,432

​

​

—

​

​

17,432

Rate lock commitments

​

​

279

​

​

—

​

​

279

​

​

—

​

​

279

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

6,321

​

​

—

​

​

6,321

​

​

—

​

​

6,321

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest-bearing deposits

​

$

1,173,461

​

$

—

​

$

1,173,461

​

$

—

​

$

1,173,461

Transaction deposits

​

 

3,378,084

​

 

—

​

 

3,378,084

​

 

—

​

 

3,378,084

Time deposits

​

 

651,602

​

 

—

​

 

652,942

​

 

—

​

 

652,942

Securities sold under agreements to repurchase and other short-term borrowings

​

 

88,504

​

 

—

​

 

88,504

​

 

—

​

 

88,504

Federal Home Loan Bank advances

​

 

506,000

​

 

—

​

 

508,892

​

 

—

​

 

508,892

Accrued interest payable

​

 

3,288

​

 

—

​

 

3,288

​

 

—

​

 

3,288

Mandatory forward contracts

​

​

29

​

​

—

​

​

29

​

​

—

​

​

29

Interest rate swap agreements - Bank clients and institutional swap dealer

​

​

6,321

​

​

—

​

​

6,321

​

​

—

​

​

6,321

Interest rate swap agreements on FHLB advances

​

​

2,674

​

​

—

​

​

2,674

​

​

—

​

​

2,674

​