Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.



(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2017
Securities available for sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies	$	188,061	$	—	$	188,061	$	—
SBA-backed securities	$	25,982	$	—	$	25,817	$	165
Debentures of government sponsored agencies	$	12,938	$	—	$	12,938	$	—
Privately-issued collateralized mortgage obligations	$	1,431	$	—	$	1,431	$	—
Obligations of state and political subdivisions	$	97,491	$	—	$	97,491	$	—
Corporate bonds	$	6,564	$	—	$	6,564	$	—
Derivative financial assets (interest rate contracts)	$	74	$	—	$	74	$	—
Derivative financial liabilities (interest rate contracts)	$	740	$	—	$	740	$	—
December 31, 2016
Securities available for sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies	$	253,434	$	—	$	253,434	$	—
SBA-backed securities	$	607	$	—	$	—	$	607
Debentures of government sponsored agencies	$	35,403	$	—	$	35,403	$	—
Privately-issued collateralized mortgage obligations	$	419	$	—	$	419	$	—
Obligations of state and political subdivisions	$	77,701	$	—	$	77,701	$	—
Corporate bonds	$	5,016	$	—	$	5,016	$	—
Derivative financial assets (interest rate contracts)	$	55	$	—	$	55	$	—
Derivative financial liabilities (interest rate contracts)	$	933	$	—	$	933	$	—

Fair Value Measurements, Nonrecurring

The following table presents the carrying value of assets and liabilities measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of December 31, 2017 and 2016.



(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2017
None	$	—	$	—	$	—	$	—
December 31, 2016
Other real estate	$	408	$	—	$	—	$	408

Fair Value, by Balance Sheet Grouping

The table below is a summary of fair value estimates for financial instruments as of December 31, 2017 and 2016, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as BOLI. Additionally, we hold shares of FHLB stock and Visa Inc. Class B common stock at cost. These shares are restricted from resale and their values were discussed in Note 2, Investment Securities, above.



	December 31, 2017					December 31, 2016
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	203,545	$	203,545	Level 1	$	48,804	$	48,804	Level 1
Investment securities held-to-maturity	151,032		151,032		Level 2	44,438		45,097		Level 2
Loans, net	1,663,246		1,650,198		Level 3	1,471,174		1,473,360		Level 3
Interest receivable	7,501		7,501		Level 2	6,319		6,319		Level 2
Financial liabilities:
Deposits	2,148,670		2,148,050		Level 2	1,772,700		1,773,102		Level 2
Subordinated debentures	5,739		5,118		Level 3	5,586		5,083		Level 3
Interest payable	191		191		Level 2	134		134		Level 2