Fair Value (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2023 and December 31, 2022:

	Fair Value Measurements at September 30, 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	$	16,325	$	—	$	16,325	$	—
State and political subdivisions		362		—		362		—
Residential mortgage-backed securities		13,670		—		13,670		—
Corporate and other securities		61,765		—		57,502		4,263
Total debt securities available for sale	$	92,122	$	—	$	87,859	$	4,263
Equity securities with readily determinable fair values		8,013		8,013		—		—
Total equity securities	$	8,013	$	8,013	$	—	$	—
Interest rate swap agreements		1,264		—		1,264		—
Total swap agreements	$	1,264	$	—	$	1,264	$	—

	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 September 30, 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:
OREO	$	251	$	—	$	—	$	251
Collateral-dependent loans	$	13,738	$	—	$	—	$	13,738

	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 September 30, 2023 and December 31, 2022:

	September 30, 2023
	Carrying
(In thousands)	amount		Level 1		Level 2		Level 3
Financial assets:
Debt securities held to maturity	$	35,956	$	—	$	27,155	$	—
SBA loans held for sale		19,387		—		20,322		—
Loans, net of allowance for credit losses		2,127,885		—		—		2,027,127
Financial liabilities:
Deposits		1,884,910		—		1,871,627		—
Borrowed funds and subordinated debentures		398,920		—		397,323		—

	December 31, 2022
	Carrying
(In thousands)	amount		Level 1		Level 2		Level 3
Financial assets:
Debt securities held to maturity	$	35,760	$	—	$	28,578	$	—
SBA loans held for sale		27,928		—		30,141		—
Loans, net of allowance for credit losses		2,053,435		—		1,981,207		8,803
Financial liabilities:
Deposits		1,787,528		—		1,772,270		—
Borrowed funds and subordinated debentures		393,310		—		391,312		—