FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Assets Measured at Fair Value on Recurring Basis

The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Company has elected the fair value option:

			Fair Value Measurements Using
			Quoted
			Prices In
			Active
			Markets		Significant
			For		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(In thousands)	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Securities available for sale:
U.S. government-sponsored agencies	$	34,784	$	—	$	34,784	$	—
Mortgage-backed securities-residential		338,904		—		338,904		—
SBA pool securities		2,784		—		2,784		—
State and political subdivisions		11,215		—		11,215		—
Corporate bond		3,068		—		3,068		—
CRA investment fund		10,836		10,836		—		—
Loans held for sale, at fair value		2,881		—		2,881		—
Derivatives:
Cash flow hedges		121		—		121		—
Loan level swaps		32,381		—		32,381		—
Total	$	436,974	$	10,836	$	426,138	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	3,788	$	—	$	3,788	$	—
Loan level swaps		32,381		—		32,381		—
Total	$	36,169	$	—	$	36,169	$	—

(In thousands)	December 31, 2018
Assets:
Securities available for sale:
U.S. government-sponsored agencies	$	102,013	$	—	$	102,013	$	—
Mortgage-backed securities-residential		251,362		—		251,362		—
SBA pool securities		3,839		—		3,839		—
State and political subdivisions		17,610		—		17,610		—
Corporate bond		3,112		—		3,112		—
CRA investment fund		4,719		4,719		—		—
Loans held for sale, at fair value		1,576		—		1,576		—
Derivatives:
Cash flow hedges		1,657		—		1,657		—
Loan level swaps		9,689		—		9,689		—
Total	$	395,577	$	4,719	$	390,858	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	849	$	—	$	849	$	—
Loan level swaps		9,689		—		9,689		—
Total	$	10,538	$	—	$	10,538	$	—

Schedule of Residential Loans Held for Sale

The following tables present residential loans held for sale, at fair value, at the dates indicated:

	December 31, 2019		December 31, 2018
Residential loans contractual balance	$	2,839	$	1,552
Fair value adjustment		42		24
Total fair value of residential loans held for sale	$	2,881	$	1,576

Schedule of Assets Measured at Fair Value on Non-Recurring Basis

The following table summarizes, for the period indicated, assets measured at fair value on a non-recurring basis:

Fair Value Measurements Using

Quoted

Prices In

Active

Markets

Significant

For

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

(In thousands)

December 31, 2019

(Level 1)

(Level 2)

(Level 3)

Assets:

Impaired loans:

Investment commercial real estate

13,467

—

13,467

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at December 31, 2019 are as follows:

			Fair Value Measurements at December 31, 2019 Using
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	208,185	$	208,185	$	—	$	—	$	208,185
Securities available for sale		390,755		—		390,755		—		390,755
CRA investment fund		10,836		10,836		—		—		10,836
FHLB and FRB stock		24,068		—		—		—	N/A
Loans held for sale, at fair value		2,881		—		2,881		—		2,881
Loans held for sale, at lower of cost or fair value		14,667		—		15,126		—		15,126
Loans, net of allowance for loan losses		4,350,461		—		—		4,268,481		4,268,481
Accrued interest receivable		10,494		—		1,361		9,133		10,494
Cash flow hedges		121		—		121		—		121
Loan level swaps		32,381		—		32,381		—		32,381
Financial liabilities
Deposits	$	4,243,511	$	3,528,609	$	718,818	$	—	$	4,247,427
Short-term borrowings		128,100		-		128,100		-		128,100
Federal Home Loan Bank advances		105,000		—		108,354		—		108,354
Subordinated debt		83,417		—		—		86,536		86,536
Accrued interest payable		2,357		392		1,910		55		2,357
Cash flow hedges		3,788		—		3,788		—		3,788
Loan level swaps		32,381		—		32,381		—		32,381

The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows:

			Fair Value Measurements at December 31, 2018 Using
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	160,773	$	160,773	$	—	$	—	$	160,773
Securities available for sale		377,936		—		377,936		—		377,936
CRA investment fund		4,719		4,719		—		—		4,719
FHLB and FRB stock		18,533		—		—		—	N/A
Loans held for sale, at fair value		1,576		—		1,576		—		1,576
Loans held for sale, at lower of cost or fair value		3,542		—		3,654		—		3,654
Loans, net of allowance for loan losses		3,889,427		—		—		3,852,004		3,852,004
Accrued interest receivable		10,814		—		1,875		8,939		10,814
Cash flow hedges		1,657		—		1,657		—		1,657
Loan level swaps		9,689		—		9,689		—		9,689
Financial liabilities
Deposits	$	3,895,340	$	3,249,274	$	640,997	$	—	$	3,890,271
Federal Home Loan Bank advances		108,000		—		108,950		—		108,950
Subordinated debt		83,193		—		—		82,207		82,207
Accrued interest payable		2,868		331		2,482		55		2,868
Cash flow hedges		849		—		849		—		849
Loan level swaps		9,689		—		9,689		—		9,689