Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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, 2019 and December 31, 2018:

	Fair Value Measurements at September 30, 2019 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Assets:
Debt Securities available for sale:
U.S. Government sponsored entities	$	5,742	$	—	$	5,742	$	—
State and political subdivisions	4,379		—		4,379		—
Residential mortgage-backed securities	23,842		—		23,842		—
Corporate and other securities	13,332		—		13,332		—
Total debt securities available for sale	$	47,295	$	—	$	47,295	$	—
Equity securities with readily determinable fair values	2,364		—		2,364		—
Total equity securities	$	2,364	$	—	$	2,364	$	—
Loans held for sale	14,437		—		14,437		—
Total loans held for sale	$	14,437	$	—	$	14,437	$	—
Interest rate swap agreements	264		—		264		—
Total swap agreements	$	264	$	—	$	264	$	—
	Fair Value Measurements at December 31, 2018 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Assets:
Debt Securities available for sale:
U.S. Government sponsored entities	$	5,642	$	—	$	5,642	$	—
State and political subdivisions	4,498		—		4,498		—
Residential mortgage-backed securities	26,613		—		26,613		—
Corporate and other securities	9,960		—		9,960		—
Total debt securities available for sale	$	46,713	$	—	$	46,713	$	—
Equity securities with readily determinable fair values	2,144		—		2,144		—
Total equity securities	$	2,144	$	—	$	2,144	$	—
Loans held for sale	12,177		—		12,177		—
Total loans held for sale	$	12,177	$	—	$	12,177	$	—
Interest rate swap agreements	1,433		—		1,433		—
Total swap agreements	$	1,433	$	—	$	1,433	$	—

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 September 30, 2019 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Credit During Period
Measured on a non-recurring basis:
Financial assets:
OREO	$	1,723	$	—	$	—	$	1,723	$	(231	)
Impaired collateral-dependent loans	1,229		—		—		1,229		(109		)
	Fair Value Measurements at December 31, 2018 Using
(In thousands)	Assets/Liabilities Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Credit During Period
Measured on a non-recurring basis:
Financial assets:
OREO	$	56	$	—	$	—	$	56	$	(196	)
Impaired collateral-dependent loans	2,625		—		—		2,625		(335		)

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, 2019 and December 31, 2018:

		September 30, 2019				December 31, 2018
(In thousands)	Fair value level	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	166,760	$	166,760	$	145,515	$	145,515
Securities (1)	Level 2	63,991		64,297		63,732		63,600
SBA loans held for sale	Level 2	13,053		14,437		11,171		12,177
Loans, net of allowance for loan losses (2)	Level 2	1,339,419		1,341,272		1,277,907		1,268,909
FHLB stock	Level 2	10,899		10,899		10,795		10,795
Servicing assets	Level 3	2,138		2,138		2,375		2,375
Accrued interest receivable	Level 2	6,858		6,858		6,399		6,399
OREO	Level 3	1,723		1,723		56		56
Financial liabilities:
Deposits	Level 2	1,273,362		1,275,256		1,207,687		1,204,731
Borrowed funds and subordinated debentures	Level 2	220,310		219,838		220,310		218,879
Accrued interest payable	Level 2	420		420		406		406

(1) Includes held to maturity (“HTM”) corporate securities that are considered Level 3. These securities had book values of  $3.5 million and $3.6 million at September 30, 2019 and December 31, 2018, respectively, with market values of $3.6 million and $3.4 million. Includes one corporate bond with a book value and market value of $1.0 million at September 30, 2019 and December 31, 2018.

(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 $1.2 million and $2.6 million at September 30, 2019 and December 31, 2018, respectively.