Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Assets and Liabilities Measured at Fair Value on Recurring Basis |
As of December 31, 2025 and 2024, assets and liabilities measured at fair value on a recurring basis are as follows:
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Level 1 |
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Level 2 |
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Level 3 |
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Quoted
Prices in
Active
Markets for
Identical
Assets |
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Significant
Observable
Inputs with No
Active Market
with Identical
Characteristics |
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Significant
Unobservable
Inputs |
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Total Fair Value |
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(in thousands) |
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December 31, 2025 |
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Assets: |
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Securities available for sale: |
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U.S. Treasury securities |
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$ |
128,710 |
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$ |
— |
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$ |
— |
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$ |
128,710 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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— |
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373,408 |
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— |
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373,408 |
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Mortgage-backed securities - commercial |
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— |
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60,572 |
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— |
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60,572 |
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Collateralized mortgage obligations |
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— |
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183,955 |
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— |
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183,955 |
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Debt securities |
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— |
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65,954 |
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— |
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65,954 |
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Total U.S. government agency and sponsored agency obligations |
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— |
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683,889 |
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— |
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683,889 |
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Municipal bonds-tax exempt |
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— |
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68,025 |
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— |
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68,025 |
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Total securities available for sale |
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$ |
128,710 |
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$ |
751,914 |
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$ |
— |
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$ |
880,624 |
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Derivative financial instruments |
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$ |
— |
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$ |
2,719 |
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$ |
— |
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$ |
2,719 |
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Liabilities: |
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Derivative financial instruments |
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$ |
— |
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$ |
2,568 |
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$ |
— |
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$ |
2,568 |
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December 31, 2024 |
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Assets: |
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Securities available for sale: |
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U.S. Treasury securities |
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$ |
88,929 |
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$ |
— |
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$ |
— |
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$ |
88,929 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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— |
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392,572 |
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— |
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392,572 |
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Mortgage-backed securities - commercial |
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— |
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62,916 |
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— |
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62,916 |
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Collateralized mortgage obligations |
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— |
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173,556 |
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— |
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173,556 |
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Debt securities |
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— |
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122,816 |
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— |
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122,816 |
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Total U.S. government agency and sponsored agency obligations |
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— |
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751,860 |
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— |
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751,860 |
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Municipal bonds-tax exempt |
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— |
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65,009 |
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— |
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65,009 |
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Total securities available for sale |
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$ |
88,929 |
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$ |
816,869 |
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$ |
— |
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$ |
905,798 |
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Derivative financial instruments |
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$ |
— |
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$ |
4,690 |
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$ |
— |
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$ |
4,690 |
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Liabilities: |
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Derivative financial instruments |
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$ |
— |
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$ |
5,292 |
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$ |
— |
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$ |
5,292 |
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| Assets and Liabilities Measured at Fair Value on Non-Recurring Basis |
As of December 31, 2025 and 2024, assets and liabilities measured at fair value on a non-recurring basis are as follows:
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Prices in Active
Markets for
Identical Assets |
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Observable
Inputs with No
Active Market
with Identical
Characteristics |
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Significant
Unobservable
Inputs |
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(in thousands) |
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December 31, 2025 |
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Assets: |
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Collateral dependent loans (1) |
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$ |
12,539 |
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$ |
— |
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$ |
— |
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$ |
12,539 |
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Other real estate owned |
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1,980 |
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— |
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— |
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1,980 |
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Repossessed personal property |
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588 |
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— |
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— |
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588 |
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December 31, 2024 |
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Assets: |
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Collateral dependent loans (2) |
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$ |
3,467 |
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$ |
— |
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$ |
— |
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$ |
3,467 |
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Other real estate owned |
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117 |
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— |
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— |
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117 |
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Repossessed personal property |
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568 |
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— |
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— |
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568 |
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(1) Consisted of real estate loans of $12.5 million.
(2) Consisted of real estate loans of $3.5 million.
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| Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis |
The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at December 31, 2025 and 2024:
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Fair Value |
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Valuation
Techniques |
|
Unobservable
Input(s) |
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Range (Weighted
Average) |
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(dollars in thousands) |
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December 31, 2025 |
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Collateral dependent loans: |
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Real estate loans: |
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Commercial property |
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Retail |
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$ |
596 |
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Market approach |
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Adjustments to market data |
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(26)% to 20% / (8)% |
(1) |
Office |
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10,159 |
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Market approach |
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Adjustments to market data |
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(26)% to (4)% / (14)% |
(1) |
Other |
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671 |
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Market approach |
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Adjustments to market data |
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(6)% to 1% / (3)% |
(1) |
Residential |
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1,113 |
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Market approach |
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Adjustments to market data |
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(13)% to 1% / (5%) |
(1) |
Total real estate loans |
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12,539 |
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Other real estate owned |
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1,980 |
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Market approach |
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Adjustments to market data |
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(10)% to 5% / 0% |
(1) |
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Repossessed personal property |
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$ |
588 |
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Market approach |
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Adjustments to market data |
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N/A |
(2) |
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December 31, 2024 |
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Collateral dependent loans: |
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Real estate loans: |
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Commercial property |
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Retail |
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$ |
1,377 |
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Market approach |
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Adjustments to market data |
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(45)% to 30% / (10)% |
(1) |
Hospitality |
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|
215 |
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Market approach |
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Adjustments to market data |
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(11)% to 17% / 5% |
(1) |
Residential |
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1,875 |
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Market approach |
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Adjustments to market data |
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(11)% to 8% / (2)% |
(1) |
Total real estate loans |
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3,467 |
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Other real estate owned |
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117 |
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Market approach |
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Adjustments to market data |
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0% to 5% / 4% |
(1) |
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Repossessed personal property |
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$ |
568 |
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Market approach |
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Adjustments to market data |
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N/A |
(2) |
(1)Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.
(2)The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.
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| Estimated Fair Values of Financial Instruments |
The estimated fair values of financial instruments were as follows:
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December 31, 2025 |
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Carrying |
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Fair Value |
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Amount |
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Level 1 |
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Level 2 |
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Level 3 |
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(in thousands) |
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Financial assets: |
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Cash and due from banks |
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$ |
212,841 |
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$ |
212,841 |
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$ |
— |
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$ |
— |
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Securities available for sale |
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|
880,624 |
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|
|
128,710 |
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|
|
751,914 |
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|
— |
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Loans held for sale |
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|
7,403 |
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— |
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|
7,715 |
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— |
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Loans, net of allowance for credit losses |
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6,493,465 |
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— |
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— |
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6,532,980 |
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Accrued interest receivable |
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|
24,466 |
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|
24,466 |
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— |
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— |
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Financial liabilities: |
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Interest-bearing deposits |
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4,662,438 |
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— |
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— |
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4,664,018 |
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Borrowings and subordinated debentures |
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|
280,463 |
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— |
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|
149,761 |
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|
137,296 |
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Accrued interest payable |
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|
34,783 |
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|
34,783 |
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— |
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— |
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December 31, 2024 |
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Carrying |
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Fair Value |
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Amount |
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Level 1 |
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Level 2 |
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Level 3 |
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(in thousands) |
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Financial assets: |
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Cash and due from banks |
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$ |
304,800 |
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$ |
304,800 |
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$ |
— |
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|
$ |
— |
|
Securities available for sale |
|
|
905,798 |
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|
|
88,929 |
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|
|
816,869 |
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|
|
— |
|
Loans held for sale |
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|
8,579 |
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— |
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|
9,229 |
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|
— |
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Loans, net of allowance for credit losses |
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6,181,230 |
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— |
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|
|
— |
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|
6,078,567 |
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Accrued interest receivable |
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|
22,937 |
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|
22,937 |
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|
— |
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— |
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Financial liabilities: |
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Interest-bearing deposits |
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4,339,142 |
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— |
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— |
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4,336,429 |
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Borrowings and subordinated debentures |
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|
393,138 |
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|
— |
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|
262,183 |
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|
129,226 |
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Accrued interest payable |
|
|
34,824 |
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|
34,824 |
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|
— |
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— |
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