Fair Value (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value

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, 2022 and 2021:

	For the three months ended June 30,				For the six months ended June 30,
(In thousands)	2022		2021		2022		2021
Balance at beginning of period	$	4,895	$	4,538	$	5,074	$	4,400
Purchases/additions		—		—		—		—
Sales/reductions		—		—		—		—
Realized		—		—		—		—
Unrealized		(69)		137		(248)		275
Balance at end of period	$	4,826	$	4,675	$	4,826	$	4,675

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, 2022 and December 31, 2021:

	Fair Value Measurements at June 30, 2022 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	$	17,290	$	—	$	17,290	$	—
State and political subdivisions	$	854	$	—	$	854	$	—
Residential mortgage-backed securities		17,491		—		17,491		—
Corporate and other securities		58,337		—		53,511		4,826
Total debt securities available for sale	$	93,972	$	—	$	89,146	$	4,826
Equity securities with readily determinable fair values		9,050		—		9,050		—
Total equity securities	$	9,050	$	—	$	9,050	$	—
Loans held for sale		35,291		—		35,291		—
Total loans held for sale	$	35,291	$	—	$	35,291	$	—
Interest rate swap agreements		1,147		—		1,147		—
Total swap agreements	$	1,147	$	—	$	1,147	$	—

	Fair value Measurements at December 31, 2021 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	$	—	$	—	$	—	$	—
State and political subdivisions		994		—		994		—
Residential mortgage-backed securities		9,749		—		9,749		—
Corporate and other securities		45,737		—		40,663		5,074
Total debt securities available for sale	$	56,480	$	—	$	51,406	$	5,074
Equity securities with readily determinable fair values		8,566		—		8,566		—
Total equity securities	$	8,566	$	—	$	8,566	$	—
Loans held for sale		31,014		—		31,014		—
Total loans held for sale	$	31,014	$	—	$	31,014	$	—
Interest rate swap agreements		816		—		816		—
Total swap agreements	$	816	$	—	$	816	$	—

Assets and Liabilities Carried on the Balance Sheet by Caption And By Level Within The 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, 2022 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
Measured on a non-recurring basis:
Financial assets:
Impaired collateral-dependent loans	$	8,394	$	—	$	—	$	8,394	$	(815)

	Fair Value Measurements at December 31, 2021 Using
			Quoted Prices		Significant
			in Active		Other		Significant		Net (Credit)
	Assets/Liabilities		Markets for		Observable		Unobservable		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:
Impaired collateral-dependent loans		8,928		—		—		8,928		(1,284)

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, 2022 and December 31, 2021:

		June 30, 2022				December 31, 2021
	Fair value	Carrying		Estimated		Carrying		Estimated
(In thousands)	level	amount		fair value		amount		fair value
Financial assets:
Cash and cash equivalents	Level 1	$	109,043	$	109,043	$	244,818	$	244,818
Securities (1)	Level 2		139,835		135,675		79,322		79,275
SBA loans held for sale	Level 2		32,183		35,291		27,373		31,014
Loans, net of allowance for loan losses (2)	Level 2		1,746,552		1,718,568		1,599,773		1,605,248
FHLB stock	Level 2		9,223		9,223		3,550		3,550
Servicing assets	Level 3		891		891		1,013		1,013
Accrued interest receivable	Level 2		9,961		9,961		9,586		9,586
Financial liabilities:
Deposits	Level 2		1,697,967		1,686,718		1,758,881		1,755,670
Borrowed funds and subordinated debentures	Level 2		175,310		173,935		50,310		50,842
Accrued interest payable	Level 2		128		128		129		129

(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 $5.3 million and market values of $4.9 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 $8.4 million and $8.9 million at June 30, 2022 and December 31, 2021, respectively.