5. Fair Value of Financial Instruments

U.S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies pursuant to ASC 820, Fair Value Measurements. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, will likely reduce the comparability of fair value disclosures between financial institutions. In some cases, book value is a reasonable estimate of fair value due to the relatively short period of time between origination of the instrument and its expected realization.

The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated:

			Fair Value of Financial Instruments Using
September 30, 2019 (in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
Assets:
Cash and Cash Equivalents	$	224,076	$	224,076	$	-	$	-	$	224,076

Investment Securities Available-for-Sale		492,930		130,193		359,611		3,126		492,930

Investment Securities Held-to-Maturity		60,354		-		32,183		27,333		59,516

Loans & Leases, Net of Deferred Fees & Allowance		2,562,168		-		-		2,537,599		2,537,599
Accrued Interest Receivable		18,229		-		18,229		-		18,229

Liabilities:
Deposits		3,139,413		2,613,146		525,106		-		3,138,252
Subordinated Debentures		10,310		-		7,475		-		7,475
Accrued Interest Payable		2,521		-		2,521		-		2,521

			Fair Value of Financial Instruments Using
December 31, 2018 (in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
Assets:
Cash and Cash Equivalents	$	145,564	$	145,564	$	-	$	-	$	145,564

Investment Securities Available-for-Sale		495,396		164,716		325,841		4,839		495,396

Investment Securities Held-to-Maturity		53,566		-		35,083		18,655		53,738

Loans & Leases, Net of Deferred Fees & Allowance		2,515,975		-		-		2,485,182		2,485,182
Accrued Interest Receivable		14,098		-		14,098		-		14,098

Liabilities:
Deposits		3,062,832		2,572,805		485,766		-		3,058,571
Subordinated Debentures		10,310		-		7,745		-		7,745
Accrued Interest Payable		1,365		-		1,365		-		1,365

			Fair Value of Financial Instruments Using
September 30, 2018 (in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
Assets:
Cash and Cash Equivalents	$	110,781	$	110,781	$	-	$	-	$	110,781

Investment Securities Available-for-Sale		458,311		164,409		291,402		2,500		458,311

Investment Securities Held-to-Maturity		51,459		-		35,716		15,663		51,379

Loans & Leases, Net of Deferred Fees & Allowance		2,363,535		-		-		2,317,185		2,317,185
Accrued Interest Receivable		14,612		-		14,612		-		14,612

Liabilities:
Deposits		2,776,923		2,314,600		457,526		-		2,772,126
Subordinated Debentures		10,310		-		7,579		-		7,579
Accrued Interest Payable		1,227		-		1,227		-		1,227