Fair Value of Assets and Liabilities - (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	287,323	$	—	$	287,323	$	—	OCI
SBA-backed securities	29,218		—		29,218		—		OCI
Debentures of government sponsored agencies	74,473		—		74,473		—		OCI

Obligations of state and political subdivisions	121,765		—		121,765		—		OCI
Corporate bonds	5,789		—		5,789		—		OCI

Derivative financial liabilities (interest rate contracts)	1,193		—		1,193		—		NI
December 31, 2020
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	228,651	$	—	$	228,651	$	—	OCI
SBA-backed securities	32,862		—		36,286		—		OCI
Debentures of government sponsored agencies	20,186		—		20,186		—		OCI

Obligations of state and political subdivisions	110,652		—		110,652		—		OCI


Derivative financial liabilities (interest rate contracts)	1,912		—		1,912		—		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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 or December 31, 2020. The values are discussed in Note 4, Investment Securities.


	March 31, 2021					December 31, 2020
(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	$	142,819	$	142,819	Level 1	$	200,320	$	200,320	Level 1
Investment securities held-to-maturity	151,970		156,756		Level 2	109,036		115,185		Level 2
Loans, net	2,101,814		2,114,691		Level 3	2,065,682		2,089,192		Level 3
Interest receivable	10,589		10,589		Level 2	10,922		10,922		Level 2
Financial liabilities (recorded at amortized cost)
Time deposits	94,955		95,241		Level 2	97,433		97,769		Level 2


Subordinated debenture	—		—		Level 3	2,777		3,115		Level 3
Interest payable	59		59		Level 2	97		97		Level 2