Fair Value of Assets and Liabilities - (Tables)

9 Months Ended

Sep. 30, 2020

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
September 30, 2020
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	241,189	$	—	$	241,189	$	—	OCI
SBA-backed securities	32,844		—		32,844		—		OCI
Debentures of government sponsored agencies	45,688		—		45,688		—		OCI

Obligations of state and political subdivisions	93,743		—		93,743		—		OCI


Derivative financial liabilities (interest rate contracts)	2,529		—		2,529		—		NI
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 liabilities (interest rate contracts)	1,178		—		1,178		—		NI

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

Schedule of fair value by balance sheet grouping

The table below is a summary of fair value estimates for financial instruments as of September 30, 2020 and December 31, 2019, 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 Federal Home Loan Bank ("FHLB") of San Francisco 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 September 30, 2020 or December 31, 2019. The values are discussed in Note 4, Investment Securities.


	September 30, 2020					December 31, 2019
(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	$	213,584	$	213,584	Level 1	$	183,388	$	183,388	Level 1
Investment securities held-to-maturity	117,350		123,983		Level 2	137,413		139,642		Level 2
Loans, net	2,085,877		2,106,790		Level 3	1,826,609		1,839,666		Level 3
Interest receivable	11,014		11,014		Level 2	7,732		7,732		Level 2
Financial liabilities (recorded at amortized cost)
Time deposits	98,084		98,495		Level 2	97,810		97,859		Level 2


Subordinated debenture	2,760		2,994		Level 3	2,708		3,182		Level 3
Interest payable	122		122		Level 2	134		134		Level 2