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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Measured and Recorded at Fair Value | Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at June 30, 2025 and December 31, 2024, are summarized below:
| June 30, 2025
(dollars in thousands) | Carrying amount |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. government sponsored entities and U.S. agency securities | $ | 25,064 |  |  | $ | — |  |  | $ | 25,064 |  |  | $ | — |
Mortgage-backed securities - agency | 989,600 |  |  | — |  |  | 989,600 |  |  | — |
Mortgage-backed securities - non-agency | 93,272 |  |  | — |  |  | 93,272 |  |  | — |
Asset-backed student loans | 45,077 |  |  | — |  |  | 45,077 |  |  | — |
State and municipal securities | 69,817 |  |  | — |  |  | 69,817 |  |  | — |
Collateralized loan obligations | 48,050 |  |  | — |  |  | 48,050 |  |  | — |
Corporate securities | 79,477 |  |  | — |  |  | 79,477 |  |  | — |
Equity securities | 4,295 |  |  | 4,295 |  |  | — |  |  | — |
Residential loans held for sale | 7,899 |  |  | — |  |  | 7,899 |  |  | — |
Derivative assets | 5,203 |  |  | — |  |  | 5,203 |  |  | — |
Total | $ | 1,367,754 |  |  | $ | 4,295 |  |  | $ | 1,363,459 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |
Derivative liabilities | $ | 6,917 |  |  | $ | — |  |  | $ | 6,917 |  |  | $ | — |
Total | $ | 6,917 |  |  | $ | — |  |  | $ | 6,917 |  |  | $ | — |
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Nonperforming loans | $ | 52,156 |  |  | $ | — |  |  | $ | — |  |  | $ | 52,156 |
Commercial loans held for sale | 29,400 |  |  | — |  |  | — |  |  | 29,400 |
Other real estate owned | 393 |  |  | — |  |  | — |  |  | 393 |
Credit enhancement asset | 5,800 |  |  | — |  |  | — |  |  | 5,800 |
| December 31, 2024
(dollars in thousands) | Carrying amount |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. government sponsored entities and U.S. agency securities | $ | 20,141 |  |  | $ | — |  |  | $ | 20,141 |  |  | $ | — |
Mortgage-backed securities - agency | 847,056 |  |  | — |  |  | 847,056 |  |  | — |
Mortgage-backed securities - non-agency | 101,012 |  |  | — |  |  | 101,012 |  |  | — |
Asset-backed student loans | 49,973 |  |  | — |  |  | 49,973 |  |  | — |
State and municipal securities | 69,061 |  |  | — |  |  | 69,061 |  |  | — |
Collateralized loan obligations | 40,450 |  |  | — |  |  | 40,450 |  |  | — |
Corporate securities | 79,881 |  |  | — |  |  | 79,881 |  |  | — |
Equity securities | 4,792 |  |  | 4,792 |  |  | — |  |  | — |
Loans held for sale | 8,228 |  |  | — |  |  | 8,228 |  |  | — |
Credit enhancement asset | 16,804 |  |  | — |  |  | — |  |  | 16,804 |
Derivative assets | 3,837 |  |  | — |  |  | 3,837 |  |  | — |
Total | $ | 1,241,235 |  |  | $ | 4,792 |  |  | $ | 1,219,639 |  |  | $ | 16,804 |
Liabilities |  |  |  |  |  |  |
Derivative liabilities | $ | 5,655 |  |  | $ | — |  |  | $ | 5,655 |  |  | $ | — |
Total | $ | 5,655 |  |  | $ | — |  |  | $ | 5,655 |  |  | $ | — |
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Nonperforming loans | $ | 120,222 |  |  | $ | — |  |  | $ | — |  |  | $ | 120,222 |
Consumer loans held for sale | 336,719 |  |  | — |  |  | — |  |  | 336,719 |
Other real estate owned | 4,941 |  |  | — |  |  | — |  |  | 4,941 |
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis | The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(dollars in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Nonperforming loans | $ | 8,281 |  |  | $ | 3,647 |  |  | 10,293 |  |  | 13,870 |  |  |
Other real estate owned | — |  |  | 730 |  |  | — |  |  | 730 |  |  |
Total losses on assets measured on a nonrecurring basis | $ | 8,281 |  |  | $ | 4,377 |  |  | $ | 10,293 |  |  | $ | 14,600 |  |  |
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) | The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2025 and December 31, 2024:
(dollars in thousands) |  | Fair value |  | Valuation technique |  | Unobservable input / assumptions |  | Range (weighted average)(1) |  |  |  |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans |  | $ | 52,156 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  | 0.00% - 39.01% (1.96%) |  |  |  |
Other real estate owned |  | 393 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  | 54.10% - 70.67% (58.17%) |  |  |  |
Commercial loans held for sale |  | 29,400 |  |  | Market approach |  | None - Fair value equals contracted sales price; no significant unobservable inputs |  | N/A |  |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans |  | $ | 120,222 |  |  | Fair value of collateral |  | Discount to reflect current market conditions and ultimate collectability |  | 0.00% - 34.15% (0.67%) |  |  |  |
Other real estate owned |  | 4,941 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  | 0.00% - 43.54% (10.68%.) |  |  |  |
Consumer loans held for sale(2) |  | 336,719 |  |  | Discounted cash flow |  | Discount rate |  | 8.98% |  |  |  |
(1)Unobservable inputs were weighted by the relative fair value of the instruments. (2)There was one pool of loans at December 31, 2024 with write-downs during 2024, so no range or weighted average is reported.
Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of June 30, 2025 and December 31, 2024:
| June 30, 2025 |  | December 31, 2024
(dollars in thousands) | Aggregate fair value |  | Difference |  | Contractual principal |  | Aggregate fair value |  | Difference |  | Contractual principal
Residential loans held for sale | $ | 7,899 |  |  | $ | 419 |  |  | $ | 7,480 |  |  | $ | 8,228 |  |  | $ | 282 |  |  | $ | 7,946 |
The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(dollars in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Residential loans held for sale | $ | 48 |  |  | $ | (1) |  |  | $ | 135 |  |  | $ | 17 |  |  |
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments | The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2025 and December 31, 2024 were as follows:
| June 30, 2025
(dollars in thousands) | Carrying amount |  | Fair value |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 175,897 |  |  | $ | 175,897 |  |  | $ | 175,897 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 690 |  |  | 690 |  |  | 690 |  |  | — |  |  | — |
Loans | 5,035,295 |  |  | 4,909,675 |  |  | — |  |  | — |  |  | 4,909,675 |
Accrued interest receivable | 25,053 |  |  | 25,053 |  |  | — |  |  | 25,053 |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | $ | 5,946,919 |  |  | $ | 5,932,931 |  |  | $ | — |  |  | $ | 5,932,931 |  |  | $ | — |
Short-term borrowings | 8,654 |  |  | 8,654 |  |  |  |  | 8,654 |  |  | — |
FHLB and other borrowings | 345,000 |  |  | 344,016 |  |  | — |  |  | 344,016 |  |  | — |
Subordinated debt | 77,759 |  |  | 72,112 |  |  | — |  |  | 72,112 |  |  | — |
Trust preferred debentures | 51,518 |  |  | 50,677 |  |  | — |  |  | 50,677 |  |  | — |
| December 31, 2024
(dollars in thousands) | Carrying amount |  | Fair value |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 114,055 |  |  | $ | 114,055 |  |  | $ | 114,055 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 711 |  |  | 711 |  |  | 711 |  |  | — |  |  | — |
Loans | 5,167,574 |  |  | 4,979,885 |  |  | — |  |  | — |  |  | 4,979,885 |
Accrued interest receivable | 25,329 |  |  | 25,329 |  |  | — |  |  | 25,329 |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | $ | 6,197,243 |  |  | $ | 6,183,807 |  |  | $ | — |  |  | $ | 6,183,807 |  |  | $ | — |
Short-term borrowings | 87,499 |  |  | 87,499 |  |  | 75,000 |  |  | 12,499 |  |  | — |
FHLB and other borrowings | 258,000 |  |  | 253,520 |  |  | — |  |  | 253,520 |  |  | — |
Subordinated debt | 77,749 |  |  | 69,827 |  |  | — |  |  | 69,827 |  |  | — |
Trust preferred debentures | 51,205 |  |  | 49,056 |  |  | — |  |  | 49,056 |  |  | — |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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