Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

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)		Measurement Categories: Changes in Fair Value Recorded In¹
March 31, 2018
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies	$	262,666	$	—	$	262,666	$	—	OCI
SBA-backed securities	33,538		—		33,373		165		OCI
Debentures of government sponsored agencies	27,336		—		27,336		—		OCI
Privately-issued collateralized mortgage obligations	1,390		—		1,390		—		OCI
Obligations of state and political subdivisions	93,414		—		93,414		—		OCI
Corporate bonds	5,538		—		5,538		—		OCI
Derivative financial assets (interest rate contracts)	239		—		239		—		NI
Derivative financial liabilities (interest rate contracts)	376		—		376		—		NI
December 31, 2017
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies	$	188,061	$	—	$	188,061	$	—	OCI
SBA-backed securities	25,982				25,817		165		OCI
Debentures of government sponsored agencies	12,938		—		12,938		—		OCI
Privately-issued collateralized mortgage obligations	1,431		—		1,431		—		OCI
Obligations of state and political subdivisions	97,491		—		97,491		—		OCI
Corporate bonds	6,564		—		6,564		—		OCI
Derivative financial assets (interest rate contracts)	74		—		74		—		NI
Derivative financial liabilities (interest rate contracts)	740		—		740		—		NI

¹Other comprehensive income ("OCI") or net income ("NI").

Fair Value, by Balance Sheet Grouping

The following table summarizes fair value estimates for financial instruments as of March 31, 2018 and December 31, 2017, 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 such as bank-owned life insurance policies ("BOLI") and non-maturity deposit liabilities. Additionally, we hold shares of FHLB stock and Visa Inc. Class B common stock at cost. These shares are restricted from resale, except among member banks, and their values are discussed in Note 4, Investment Securities.



	March 31, 2018					December 31, 2017
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets (recorded at amortized cost)
Cash and cash equivalents	$	159,347	$	159,347	Level 1	$	203,545	$	203,545	Level 1
Investment securities held-to-maturity	149,013		145,818		Level 2	151,032		151,032		Level 2
Loans, net	1,655,969		1,622,552		Level 3	1,663,246		1,650,198		Level 3
Interest receivable	7,087		7,087		Level 2	7,501		7,501		Level 2
Financial liabilities (recorded at amortized cost)
Time deposits	145,942		145,212		Level 2	160,116		159,540		Level 2
Subordinated debentures	5,772		6,820		Level 3	5,739		5,118		Level 3
Interest payable	172		172		Level 2	191		191		Level 2