Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

7. 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 that value. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. 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 valuation of loans held for investment was impacted by the adoption of ASU 2016-01. In accordance with ASU 2016-01, the fair value of loans held for investment, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are considered a Level 3 classification.

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

			Fair Value of Financial Instruments Using
June 30, 2020 (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	$	371,439	$	371,439	$	-	$	-	$	371,439
Investment Securities Available-for-Sale		569,407		80,691		488,716		-		569,407
Investment Securities Held-to-Maturity		69,036		-		28,893		41,301		70,194
Loans & Leases, Net		3,009,454		-		-		3,001,079		3,001,079
Accrued Interest Receivable		18,083		-		18,083		-		18,083
Liabilities:
Deposits		3,782,033		3,250,311		533,650		-		3,783,961
Subordinated Debentures		10,310		-		6,936		-		6,936
Accrued Interest Payable		2,183		-		2,183		-		2,183

			Fair Value of Financial Instruments Using
December 31, 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	$	294,758	$	294,758	$	-	$	-	$	294,758
Investment Securities Available-for-Sale		507,386		55,200		452,186		-		507,386
Investment Securities Held-to-Maturity		60,229		-		31,253		29,844		61,097
Loans & Leases, Net		2,618,015		-		-		2,584,805		2,584,805
Accrued Interest Receivable		16,733		-		16,733		-		16,733
Liabilities:
Deposits		3,278,019		2,760,097		517,172		-		3,277,269
Subordinated Debentures		10,310		-		7,325		-		7,325
Accrued Interest Payable		2,795		-		2,795		-		2,795

			Fair Value of Financial Instruments Using
June 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	$	114,717	$	114,717	$	-	$	-	$	114,717
Investment Securities Available-for-Sale		488,093		175,111		308,683		4,299		488,093
Investment Securities Held-to-Maturity		60,310		-		35,400		25,754		61,154
Loans & Leases, Net of Deferred Fees & Allowance		2,543,773		-		-		2,527,799		2,527,799
Accrued Interest Receivable		15,688		-		15,688		-		15,688
Liabilities:
Deposits		3,025,276		2,505,769		517,607		-		3,023,376
Subordinated Debentures		10,310		-		7,431		-		7,431
Accrued Interest Payable		2,465		-		2,465		-		2,465