Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 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
December 31, 2018
Securities available for sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies	$	278,403	$	—	$	278,403	$	—	OCI
SBA-backed securities	$	50,781	$	—	$	50,781	$	—	OCI
Debentures of government sponsored agencies	$	53,018	$	—	$	53,018	$	—	OCI
Privately-issued collateralized mortgage obligations	$	297	$	—	$	297	$	—	OCI
Obligations of state and political subdivisions	$	77,960	$	—	$	77,960	$	—	OCI
Corporate bonds	$	2,005	$	—	$	2,005	$	—	OCI
Derivative financial assets (interest rate contracts)	$	161	$	—	$	161	$	—	NI
Derivative financial liabilities (interest rate contracts)	$	375	$	—	$	375	$	—	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 table below is a summary of fair value estimates for financial instruments as of December 31, 2018 and 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 held shares of FHLB stock and Visa Inc. Class B common stock, both recorded at cost, as there was no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2018. Both FHLB stock and Visa Inc. Class B common stock were held at cost as of December 31, 2017, prior to adoption of ASU No. 2016-01. See further detail on the adoption of the ASU within Note 1, Summary of Significant Accounting Policies, and further discussion on values within Note 2, Investment Securities, above.



	December 31, 2018					December 31, 2017
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	34,221	$	34,221	Level 1	$	203,545	$	203,545	Level 1
Investment securities held-to-maturity	157,206		153,894		Level 2	151,032		151,032		Level 2
Loans, net	1,748,043		1,700,971		Level 3	1,663,246		1,650,198		Level 3
Interest receivable	8,292		8,292		Level 2	7,501		7,501		Level 2
Financial liabilities:
Time deposits	117,182		116,584		Level 2	160,116		159,540		Level 2
Subordinated debentures	2,640		3,268		Level 3	5,739		5,118		Level 3
Interest payable	104		104		Level 2	191		191		Level 2