Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019
Securities available for sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	278,144	$	—	$	278,144	$	—	OCI
SBA-backed securities	$	36,286	$	—	$	36,286	$	—	OCI
Debentures of government sponsored agencies	$	49,046	$	—	$	49,046	$	—	OCI
Obligations of state and political subdivisions	$	67,282	$	—	$	67,282	$	—	OCI
Corporate bonds	$	1,502	$	—	$	1,502	$	—	OCI
Derivative financial assets (interest rate contracts)	$	—	$	—	$	—	$	—	NI
Derivative financial liabilities (interest rate contracts)	$	1,178	$	—	$	1,178	$	—	NI
December 31, 2018
Securities available for sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored 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

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, 2019 and 2018, 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, 2019 and 2018. See further discussion on values within Note 2, Investment Securities, above.



	December 31, 2019					December 31, 2018
(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	$	183,388	$	183,388	Level 1	$	34,221	$	34,221	Level 1
Investment securities held-to-maturity	137,413		139,642		Level 2	157,206		153,894		Level 2
Loans, net	1,826,609		1,839,666		Level 3	1,748,043		1,700,971		Level 3
Interest receivable	7,732		7,732		Level 2	8,292		8,292		Level 2
Financial liabilities (recorded at amortized cost)
Time deposits	97,810		97,859		Level 2	117,182		116,584		Level 2
Federal Home Loan Bank borrowing	—		—		Level 2	7,000		7,000		Level 2
Subordinated debentures	2,708		3,182		Level 3	2,640		3,268		Level 3
Interest payable	134		134		Level 2	104		104		Level 2