Fair Value (Tables)

12 Months Ended

Dec. 31, 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 years ended December 31, 2022 and 2021:

	For the year ended December 31,
(In thousands)	2022		2021
Balance at beginning of period	$	5,074	$	4,400
Purchases/additions		—		—
Sales/reductions		—		—
Realized		—		—
Unrealized (losses) gains		(399)		674
Balance at end of period	$	4,675	$	5,074

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Equity Securities with Readily Determinable Fair Values

Balances of Assets And Liabilities Measured at Fair Value on Recurring Basis

The tables below present the balances of assets measured at fair value on a recurring basis as of December 31^st for the past two years:

	Fair Value Measurements at December 31, 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	$	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	$	—

	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		—
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 December 31, 2022 Using
			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:
Impaired collateral-dependent loans		8,803		—		—		8,803

	Fair Value Measurements at December 31, 2021 Using
			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:
Impaired collateral-dependent loans		8,928		—		—		8,928

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 not previously presented as of December 31^st for the past two years:

		December 31, 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	$	114,793	$	114,793	$	244,818	$	244,818
Securities (1)	Level 2		140,946		133,764		79,322		79,275
SBA loans held for sale	Level 2		27,928		30,141		27,373		31,014
Loans, net of allowance for loan losses (2)	Level 2		2,053,435		1,990,010		1,599,773		1,605,248
Financial liabilities:
Deposits	Level 2		1,787,528		1,772,270		1,758,881		1,755,670
Borrowed funds and subordinated debentures	Level 2		393,310		391,312		50,310		50,842

(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 $5.1 million and market values of $4.7 million.

(2) Includes 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 $8.8 million and $8.9 million at December 31, 2022 and 2021.