Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Carrying Values and Estimated Fair Values of Financial Instruments

The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated:

	June 30, 2019				December 31, 2018
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(dollars in thousands)
Financial assets
Cash and cash equivalents	$	38,557	$	38,557	$	18,473	$	18,473
Securities available for sale		153,053		153,053		168,163		168,163
Securities held to maturity		286,350		291,993		282,869		281,310
Loans, net		2,079,451		2,036,666		1,543,004		1,484,905
Loans held for sale		384		384		—		—
FHLB Boston stock		8,245		8,245		6,844		6,844
Accrued interest receivable		7,485		7,485		5,762		5,762
Mortgage servicing rights		891		1,105		666		941
Interest rate contracts		3,528		3,528		1,970		1,970
Loan level interest rate swaps		12,348		12,348		5,782		5,782
Risk participation agreements out to counterparties		46		46		28		28

Financial liabilities
Deposits		2,329,665		2,328,568		1,811,410		1,809,051
Short-term borrowings		103,000		103,031		90,000		90,000
Long-term borrowings		3,323		3,316		3,409		3,363
Loan level interest rate swaps		12,348		12,348		5,782		5,782
Risk participation agreements in with counterparties		459		459		179		179

Summary of Certain Assets Reported at Fair Value on a Recurring Basis

The following tables summarize certain assets reported at fair value on a recurring basis:

	Fair Value as of June 30, 2019
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Measured on a recurring basis
Securities available for sale
U.S. GSE obligations	$	—	$	49,815	$	—	$	49,815
Mortgage-backed securities		—		103,238		—		103,238
Corporate debt securities		—		—		—		—
Other assets
Interest rate swaps with customers		—		12,348		—		12,348
Risk participation agreements out to counterparties		—		46		—		46
Interest rate contracts		—		3,528		—		3,528
Other liabilities
Mirror swaps with counterparties		—		12,348		—		12,348
Risk participation agreements in with counterparties		—		459		—		459

	Fair Value as of December 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Measured on a recurring basis
Securities available for sale
U.S. GSE obligations	$	—	$	74,039	$	—	$	74,039
Mortgage-backed securities		—		89,268		—		89,268
Corporate debt securities		—		4,856		—		4,856
Other assets
Interest rate swaps with customers		—		5,782		—		5,782
Risk participation agreements out to counterparties		—		28		—		28
Interest rate contracts		—		1,970		—		1,970
Other liabilities
Mirror swaps with counterparties		—		5,782		—		5,782
Risk participation agreements in with counterparties		—		179		—		179

Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis

The following table presents the carrying value of assets held at June 30, 2019, which were measured at fair value on a non-recurring basis during the three and six months ended June 30, 2019:

	June 30, 2019
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Items recorded at fair value on a nonrecurring basis
Assets
Collateral dependent impaired loans	$	—	$	—	$	—	$	—
Loans held for sale		—		—		384		384
Other real estate owned		—		—		185		185
Total	$	—	$	—	$	569	$	569