FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Tables

Schedule of assets measured at fair value on a 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 Corporation has elected the fair value option:

Assets Measured on a Recurring Basis

	Fair Value Measurements Using
			Quoted
			Prices in
			Active
			Markets		Significant
			For		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
(In thousands)	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored
entities	$	15,407	$	—	$	15,407	$	—
Mortgage-backed securities-
residential		194,411		—		194,411		—
State and political subdivisions		55,190		—		55,190		—
Single-Issuer Trust Preferred		2,385		—		2,385		—
CRA investment fund		2,941		2,941		—		—
Total	$	270,334	$	2,941	$	267,393	$	—

	December 31,
(In thousands)	2012
Assets:
Available for sale:
U.S. government-sponsored
entities	$	26,845	$	—	$	26,845	$	—
Mortgage-backed securities-
residential		221,440		—		221,440		—
State and political subdivisions		50,632		—		50,632		—
Single-Issuer Trust Preferred		2,289		—		2,289		—
CRA investment fund		3,062		3,062		—		—
Marketable equity securities		211		211		—		—
Total	$	304,479	$	3,273	$	301,206	$	—

Schedule of assets measured at fair value on a non- recurring basis

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

Assets Measured on a Non-Recurring Basis

	Fair Value Measurements Using
			Quoted
			Prices in
			Active
			Markets		Significant
			For		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
(In thousands)	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Impaired loans:
Primary residential
mortgage	$	346	$	—	$	—	$	346
OREO		1,060		—		—		1,060

	December 31,
(In thousands)	2012
Assets:
Impaired loans:
Primary residential
mortgage	$	346	$	—	$	—	$	346
Investment commercial
real estate		160		—		—		160
Loans held for sale:
Primary residential mortgage		592		—		592		—
Multifamily		282		—		282		—
Owner-occupied commercial
mortgage		5,960		—		5,960		—
Investment commercial
real estate		6,652		—		6,652		—
Commercial and industrial		263		—		263		—
OREO		1,990		—		—		1,990

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2013 are as follows:

			Fair Value Measurements at June 30, 2013 Using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	66,862	$	64,864	$	1,998	$	—	$	66,862
Securities available for sale		270,334		2,941		267,393		—		270,334
FHLB and FRB stock		4,729		—		—		—		N/A
Loans held for sale		4,684		—		4,684		—		4,684
Loans, net of allowance for loan losses		1,238,746		—		—		1,228,287		1,228,287
Accrued interest receivable		3,972		—		860		3,112		3,972
Financial liabilities
Deposits	$	1,522,926	$	1,354,374	$	169,330	$	—	$	1,523,704
Federal home loan bank advances		12,000		—		12,962		—		12,962
Accrued interest payable		292		42		250		—		292

The carrying amounts and estimated fair values of financial instruments at December 31, 2012 are as follows:

			Fair Value Measurements at December 31, 2012 Using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	119,228	$	116,284	$	2,944	$	—	$	119,228
Securities available for sale		304,479		3,273		301,206		—		304,479
FHLB and FRB stock		4,639		—		—		—		N/A
Loans held for sale		20,210		—		20,210		—		20,210
Loans, net of allowance for loan losses		1,119,849		—		—		1,120,537		1,120,537
Accrued interest receivable		3,864		—		958		2,906		3,864
Financial liabilities
Deposits	$	1,516,427	$	1,337,855	$	180,505	$	—	$	1,518,360
Federal home loan bank advances		12,218		—		13,518		—		13,518
Accrued interest payable		306		37		269		—		306