Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value

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 March 31, 2023 and December 31, 2022:

	Fair Value Measurements at March 31, 2023
			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	$	16,398	$	—	$	16,398	$	—
State and political subdivisions		593		—		593		—
Residential mortgage-backed securities		15,410		—		15,410		—
Corporate and other securities		61,712		—		57,202		4,510
Total debt securities available for sale	$	94,113	$	—	$	89,603	$	4,510
Equity securities with readily determinable fair values		8,327		—		8,327		—
Total equity securities	$	8,327	$	—	$	8,327	$	—
Interest rate swap agreements		1,302		—		1,302		—
Total swap agreements	$	1,302	$	—	$	1,302	$	—

	Fair value Measurements at December 31, 2022
			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	$	16,305	$	—	$	16,305	$	—
State and political subdivisions		613		—		613		—
Residential mortgage-backed securities		15,475		—		15,475		—
Corporate and other securities		63,000		—		58,325		4,675
Total debt securities available for sale	$	95,393	$	—	$	90,718	$	4,675
Equity securities with readily determinable fair values		9,793		—		9,793		—
Total equity securities	$	9,793	$	—	$	9,793	$	—
Interest rate swap agreements		1,537		—		1,537		—
Total swap agreements	$	1,537	$	—	$	1,537	$	—

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 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 March 31, 2023
			Quoted Prices		Significant
			in Active		Other		Significant
	Assets/Liabilities		Markets for		Observable		Unobservable
	Measured at Fair		Identical Assets		Inputs		Inputs
(In thousands)	Value		(Level 1)		(Level 2)		(Level 3)
Measured on a non-recurring basis:
Financial assets:
Collateral-dependent loans & OREO	$	9,984	$	—	$	—	$	9,984

	Fair Value Measurements at December 31, 2022
			Quoted Prices		Significant
			in Active		Other		Significant
	Assets/Liabilities		Markets for		Observable		Unobservable
	Measured at Fair		Identical Assets		Inputs		Inputs
(In thousands)	Value		(Level 1)		(Level 2)		(Level 3)
Measured on a non-recurring basis:
Financial assets:
Collateral-dependent loans		8,803		—		—		8,803

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 March 31, 2023 and December 31, 2022:

		March 31, 2023				December 31, 2022
	Fair value	Carrying		Estimated		Carrying		Estimated
(In thousands)	level	amount		fair value		amount		fair value
Financial assets:
Cash and cash equivalents	Level 1	$	127,087	$	127,087	$	114,793	$	114,793
Securities (1)	Level 2		138,264		132,272		140,946		133,764
SBA loans held for sale	Level 2		23,314		25,031		27,928		30,141
Loans, net of allowance for credit losses (2)	Level 2		2,081,404		2,022,666		2,053,435		1,990,010
Financial liabilities:
Deposits	Level 2		1,823,921		1,810,997		1,787,528		1,772,270
Borrowed funds and subordinated debentures	Level 2		384,310		382,585		393,310		391,312

(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 $4.7 million.

(2) Includes collateral-dependent loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Collateral-dependent loans, net of specific reserves totaled $9.8 million and $8.8 million at March 31, 2023 and December 31, 2022, respectively.