FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2014

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
	March 31,		Assets		Inputs		Inputs
(In thousands)	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored
entities	$	15,222	$	—	$	15,222	$	—
Mortgage-backed securities-
residential		163,049		—		163,049		—
State and political subdivisions		64,499		—		64,499		—
Single-Issuer Trust Preferred		2,400		—		2,400		—
CRA investment fund		2,900		2,900		—		—
Loans held for sale, at fair value		1,769		—		1,769		—
Total	$	249,839	$	2,900	$	246,939	$	—

Assets Measured on a Recurring Basis  

			Fair Value Measurements Using
			Quoted
			Prices in
			Active
			Markets		Significant
			For		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
(In thousands)	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored
entities	$	14,770	$	—	$	14,770	$	—
Mortgage-backed securities-
residential		189,080		—		189,080		—
State and political subdivisions		59,343		—		59,343		—
Single-Issuer Trust Preferred		2,370		—		2,370		—
CRA investment fund		2,884		2,884		—		—
Loans held for sale, at fair value		2,001		—		2,001		—
Total	$	270,448	$	2,884	$	267,564	$	—

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

	March 31, 2014		December 31, 2013
Residential loans contractual balance	$	1,745	$	1,975
Fair value adjustment		24		26
Total fair value of residential loans held for sale	$	1,769	$	2,001

Schedule of residential loans held for sale

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

	March 31, 2014		December 31, 2013
Residential loans contractual balance	$	1,745	$	1,975
Fair value adjustment		24		26
Total fair value of residential loans held for sale	$	1,769	$	2,001

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 observable
			Identical		Observable		Unobservable
	March 31,		Assets		Inputs		Inputs
(In thousands)	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Impaired loans:
Owner occupied commercial real estate	$	1,554	$	—	$	—	$	1,554
OREO		880		—		—		880
	December 31,
(In thousands)	2013
Assets:
Impaired loans:
Primary residential mortgage	$	85	$	—	$	—	$	85
Owner occupied commercial real estate		1,593		—		—		1,593
OREO		980		—		—		980

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2014 are as follows:

			Fair Value Measurements at March 31, 2014 Using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	101,533	$	100,783	$	750	$	—	$	101,533
Securities available for sale		248,070		2,900		245,170		—		248,070
FHLB and FRB stock		12,765		—		—		—		N/A
Loans held for sale, at fair value		1,769		—		1,769		—		1,769
Loans held for sale, at lower of cost or
fair value		51,184		—		51,884		—		51,884
Loans, net of allowance for loan losses		1,746,813		—		—		1,717,161		1,717,161
Accrued interest receivable		4,788		—		757		4,031		4,788
Financial liabilities
Deposits	$	1,893,296	$	1,676,566	$	216,519	$	—	$	1,893,085
Overnight borrowings		79,400		—		79,400		—		79,400
Federal home loan bank advances		83,692		—		84,433		—		84,433
Accrued interest payable		372		60		312		—		372

The carrying amounts and estimated fair values of financial instruments at December 31, 2013 are as follows:

			Fair Value Measurements at December 31, 2013 Using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	35,147	$	34,397	$	750	$	—	$	35,147
Securities available for sale		268,447		2,884		265,563		—		268,447
FHLB and FRB stock		10,032		—		—		—		N/A
Loans held for sale, at fair value		2,001		—		2,001		—		2,001
Loans, net of allowance for loan losses		1,558,828		—		—		1,528,937		1,528,937
Accrued interest receivable		4,086		—		817		3,269		4,086
Financial liabilities
Deposits	$	1,647,250	$	1,490,417	$	156,078	$	—	$	1,646,495
Overnight borrowings		54,900		—		54,900		—		54,900
Federal home loan bank advances		74,692		—		75,728		—		75,728
Accrued interest payable		340		49		291		—		340