Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Balances of Assets And Liabilities Measured at Fair Value on Recurring Basis

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017:

	Fair Value Measurements at September 30, 2018 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Assets:
Securities available for sale:
U.S. Government sponsored entities	$	5,577	$	—	$	5,577	$	—
State and political subdivisions	4,659		—		4,659		—
Residential mortgage-backed securities	27,325		—		27,325		—
Corporate and other securities	9,313		—		9,313		—
Total securities available for sale	$	46,874	$	—	$	46,874	$	—
Equity securities	1,200		—		1,200		—
Total equity securities	$	1,200	$	—	$	1,200	$	—
Interest rate swap agreements	2,066		—		2,066		—
Total swap agreements	$	2,066	$	—	$	2,066	$	—
	Fair Value Measurements at December 31, 2017 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Assets:
Securities available for sale:
U.S. Government sponsored entities	$	5,691	$	—	$	5,691	$	—
State and political subdivisions	5,192		—		5,192		—
Residential mortgage-backed securities	31,878		—		31,878		—
Corporate and other securities	10,732		—		10,732		—
Total securities available for sale (1)	$	53,493	$	—	$	53,493	$	—
Interest rate swap agreements	1,407		—		1,407		—
Total swap agreements	$	1,407	$	—	$	1,407	$	—

(1) Securities available for sale at December 31, 2017, include equity securities of $1.2 million.

Assets and Liabilities Subject to Fair Value Adjustments (Impairment) on Non-Recurring Basis Carried on Balance Sheet by Caption and by Level within Hierarchy

The following tables present the assets and liabilities subject to fair value adjustments (impairment) on a non-recurring basis carried on the balance sheet by caption and by level within the hierarchy (as described above):

	Fair Value Measurements at September 30, 2018 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Provision (Credit) During Period
Measured on a non-recurring basis:
Financial assets:
OREO	$	56	$	—	$	—	$	56	$	(196	)
Impaired collateral-dependent loans	2,765		—		—		2,765		(84		)
	Fair Value Measurements at December 31, 2017 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Provision (Credit) During Period
Measured on a non-recurring basis:
Financial assets:
OREO	$	426	$	—	$	—	$	426	$	(299	)
Impaired collateral-dependent loans	1,126		—		—		1,126		(52		)

Carrying Amount and Estimated Fair Values of Financial Instruments

The table below presents the carrying amount and estimated fair values of the Company’s financial instruments presented as of September 30, 2018 and December 31, 2017:

		September 30, 2018				December 31, 2017
(In thousands)	Fair value level	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	144,556	$	144,556	$	150,254	$	150,254
Securities (1)	Level 2	63,399		63,090		69,800		69,839
SBA loans held for sale	Level 2	13,029		14,220		22,810		25,568
Loans, net of allowance for loan losses (2)	Level 2	1,255,287		1,234,657		1,134,308		1,133,739
FHLB stock	Level 2	9,445		9,445		12,863		12,863
Servicing assets	Level 3	2,135		2,135		1,800		1,800
Accrued interest receivable	Level 2	6,412		6,412		5,447		5,447
OREO	Level 3	56		56		426		426
Financial liabilities:
Deposits	Level 2	1,219,473		1,215,309		1,043,137		1,041,111
Borrowed funds and subordinated debentures	Level 2	190,310		188,243		285,310		284,117
Accrued interest payable	Level 2	506		506		436		436

(1) Includes held to maturity (“HTM”) corporate securities that are considered Level 3. These securities had book values of  $3.6 million and $3.7 million at September 30, 2018 and December 31, 2017, respectively, with market values of $3.4 million and $3.5 million.

(2) Includes collateral-dependent impaired loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading.  Collateral-dependent impaired loans, net of specific reserves totaled $2.8 thousand and $1.1 million at September 30, 2018 and December 31, 2017, respectively.