Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Reconciliation of Level 3 Available for Sale Debt Securities Measured at Fair Value on Recurring Basis

The following table presents a reconciliation of the Level 3 available for sale debt securities measured at fair value on a recurring basis for the three and six months ended June 30, 2020 and 2019:

(In thousands)	2020		2019
Balance at beginning of period (1)	$	6,238	$	—
Purchases/additions		—		—
Sales/reductions		—		—
Realized		—		—
Unrealized		5		—
Balance at end of period	$	6,243	$	—

(1) Includes AFS debt securities classified as Level 2 at December 31, 2019, which were transferred to Level 3 during the period ended June 30, 2020.

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 June 30, 2020 and December 31, 2019:

	Fair Value Measurements at June 30, 2020 Using
			Quoted Prices in
	Assets/Liabilities		Active Markets		Significant Other		Significant
	Measured at Fair		for Identical		Observable		Unobservable
(In thousands)	Value		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Measured on a recurring basis:
Assets:
Debt securities available for sale:
U.S. Government sponsored entities	$	2,772	$	—	$	2,772	$	—
State and political subdivisions		3,334		—		3,334		—
Residential mortgage-backed securities		22,373		—		22,373		—
Corporate and other securities		24,623		—		18,380		6,243
Total debt securities available for sale	$	53,102	$	—	$	46,859	$	6,243
Equity securities with readily determinable fair values		1,786		—		1,786		—
Total equity securities	$	1,786	$	—	$	1,786	$	—
Loans held for sale		11,707		—		11,707		—
Total loans held for sale	$	11,707		—	$	11,707		—
Interest rate swap agreements		(1,512)		—		(1,512)		—
Total swap agreements	$	(1,512)	$	—	$	(1,512)	$	—

	Fair value Measurements at December 31, 2019 Using
			Quoted Prices in
	Assets/Liabilities		Active Markets		Significant Other		Significant
	Measured at Fair		for Identical		Observable		Unobservable
(In thousands)	Value		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Measured on a recurring basis:
Assets:
Debt securities available for sale:
U.S. Government sponsored entities	$	5,753	$	—	$	5,753	$	—
State and political subdivisions		5,154		—		5,154		—
Residential mortgage-backed securities		27,964		—		27,964		—
Corporate and other securities		25,404		—		25,404		—
Total debt securities available for sale	$	64,275	$	—	$	64,275	$	—
Equity securities with readily determinable fair values		2,289		—		2,289		—
Total equity securities	$	2,289	$	—	$	2,289	$	—
Loans held for sale		14,862		—		14,862		—
Total loans held for sale	$	14,862		—	$	14,862		—
Interest rate swap agreements		238		—		238		—
Total swap agreements	$	238	$	—	$	238	$	—

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 June 30, 2020 Using
			Quoted Prices		Significant
			in Active		Other		Significant
	Assets/Liabilities		Markets for		Observable		Unobservable		Net Provision
	Measured at Fair		Identical Assets		Inputs		Inputs		During
(In thousands)	Value		(Level 1)		(Level 2)		(Level 3)		Period
Measured on a non-recurring basis:
Financial assets:
OREO	$	711	$	—	$	—	$	711	$	(200)
Impaired collateral-dependent loans		9,004		—		—		9,004		432

	Fair Value Measurements at December 31, 2019 Using
			Quoted Prices		Significant
			in Active		Other		Significant
	Assets/Liabilities		Markets for		Observable		Unobservable		Net Credit
	Measured at Fair		Identical Assets		Inputs		Inputs		During
(In thousands)	Value		(Level 1)		(Level 2)		(Level 3)		Period
Financial assets:
OREO	$	1,723	$	—	$	—	$	1,723	$	(231)
Impaired collateral-dependent loans		1,925		—		—		1,925		(253)

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 June 30, 2020 and December 31, 2019:

		June 30, 2020				December 31, 2019
	Fair value	Carrying		Estimated		Carrying		Estimated
(In thousands)	level	amount		fair value		amount		fair value
Financial assets:
Cash and cash equivalents	Level 1	$	186,683	$	186,683	$	158,016	$	158,016
Securities (1)	Level 2		54,888		54,888		66,564		66,564
SBA loans held for sale	Level 2		10,602		11,707		13,529		14,862
Loans, net of allowance for loan losses (2)	Level 2		1,561,671		1,581,341		1,395,634		1,398,997
FHLB stock	Level 2		11,629		11,629		14,184		14,184
Servicing assets	Level 3		2,138		2,138		2,026		2,026
Accrued interest receivable	Level 2		11,039		11,039		6,984		6,984
OREO	Level 3		711		711		1,723		1,723
Financial liabilities:
Deposits	Level 2		1,483,457		1,489,973		1,250,114		1,252,082
Borrowed funds and subordinated debentures	Level 2		233,310		235,645		293,310		292,766
Accrued interest payable	Level 2		228		228		455		455

(1) Includes corporate securities that are considered Level 3 and reported separately in the table under the “Fair Value on a Recurring Basis” heading. These securities had book values of $6.2 million and market values of $6.2 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 $9.0 million and $1.9 million at June 30, 2020 and December 31, 2019, respectively.