FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2015

FAIR VALUE [Abstract]

Summary of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):

			Fair Value Measurement at March 31, 2015 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S.Government sponsored enterprises	$	170,447	$	31,266	$	139,181	$	-
Mortgage-backed securities, residential		59,182		-		59,182		-
Collateralized mortgage obligations		231		-		231		-
Obligations of states and political subdivisions		31,152		-		31,152		-
Corporate bonds and notes		1,528		-		1,528		-
SBA loan pools		1,260		-		1,260		-
Trust Preferred securities		2,024		-		2,024		-
Corporate stocks		483		55		428		-
Total available for sale securities	$	266,307	$	31,321	$	234,986	$	-
Trading assets	$	601	$	601	$	-	$	-

			Fair Value Measurement at December 31, 2014 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S.Government sponsored enterprises	$	181,673	$	31,115	$	150,558	$	-
Mortgage-backed securities, residential		61,660		-		61,660		-
Collateralized mortgage obligations		338		-		338		-
Obligations of states and political subdivisions		31,451		-		31,451		-
Corporate bonds and notes		1,533		-		1,533		-
SBA loan pools		1,304		-		1,304		-
Trust Preferred securities		2,028		-		2,028		-
Corporate stocks		520		104		416		-
Total available for sale securities	$	280,507	$	31,219	$	249,288	$	-
Trading assets	$	549	$	549	$	-	$	-

Summary of assets and liabilities measured at fair value on a non-recurring basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands):

			Fair Value Measurement at March 31, 2015 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial mortgages:
Commercial mortgages	$	2,993	$	-	$	-	$	2,993
Total impaired loans	$	2,993	$	-	$	-	$	2,993
Other real estate owned:
Commercial mortgages:
Commercial mortgages	$	2,496	$	-	$	-	$	2,496
Residential mortgages		10		-		-		10
Total other real estate owned, net	$	2,506	$	-	$	-	$	2,506

			Fair Value Measurement at December 31, 2014 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial mortgages:
Commercial mortgages	$	3,593	$	-	$	-	$	3,593
Consumer loans:
Home equity lines and loans		52		-		-		52
Total impaired loans	$	3,645	$	-	$	-	$	3,645
Other real estate owned:
Commercial mortgages:
Commercial mortgages	$	3,063	$	-	$	-	$	3,063
Consumer loans:
Home equity lines and loans		2		-		-		2
Total other real estate owned, net	$	3,065	$	-	$	-	$	3,065

Nonrecurring fair value measurement, valuation techniques

The following table presents information related to Level 3 non-recurring fair value measurement at March 31, 2015 and December 31, 2014 (in thousands):

Description	Fair Value at March 31, 2015		Technique	Unobservable Inputs
Impaired loans	$	2,993	Third party appraisals		1	Management discount based on underlying collateral characteristics and market conditions
Other real estate owned	$	2,506	Third party appraisals		1	Estimated holding  period
					2	Estimated closing costs

Description	Fair Value at December 31, 2014		Technique	Unobservable Inputs
Impaired loans	$	3,645	Third party appraisals		1	Management discount based on underlying collateral characteristics and market conditions
Other real estate owned	$	3,065	Third party appraisals		1	Estimated holding  period
					2	Estimated closing costs

Carrying value and estimated fair value of financial instruments

The carrying amounts and estimated fair values of other financial instruments, at March 31, 2015 and December 31, 2014, are as follows (in thousands):

	Fair Value Measurements at March 31, 2015 Using
Financial assets:	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Estimated Fair Value (1)
Cash and due from financial institutions	$	29,643	$	29,643	$	-	$	-	$	29,643
Interest-bearing deposits in other financial institutions		55,230		55,230		-		-		55,230
Trading assets		601		601		-		-		601
Securities available for sale		266,307		31,321		234,986		-		266,307
Securities held to maturity		5,693		-		6,076		-		6,076
FHLBNY and FRBNY stock		4,148		-		-		-		N/A
Loans, net		1,129,680		-		-		1,155,496		1,155,496
Loans held for sale		628		-		628		-		628
Accrued interest receivable		4,482		361		1,488		2,633		4,482
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,180,179	$	1,180,179	$	-	$	-	$	1,180,179
Time deposits		187,951		-		188,436		-		188,436
Securities sold under agreements to repurchase		31,084		-		32,285		-		32,285
FHLBNY term advances		19,283		-		20,239		-		20,239
Accrued interest payable		225		17		208		-		225

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.

	Fair Value Measurements at December 31, 2014 Using
Financial assets:	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Estimated Fair Value (1)
Cash and due from financial   institutions	$	28,130	$	28,130	$	-	$	-	$	28,130
Interest-bearing deposits in other financial institutions		1,033		1,033		-		-		1,033
Trading assets		549		549		-		-		549
Securities available for sale		280,507		31,219		249,288		-		280,507
Securities held to maturity		5,831		-		6,197		-		6,197
FHLBNY and FRBNY stock		5,535		-		-		-		N/A
Loans, net		1,107,888		-		-		1,135,590		1,135,590
Loans held for sale		665		-		665		-		665
Accrued interest receivable		4,185		145		1,295		2,745		4,185
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,068,171	$	1,068,171	$	-	$	-	$	1,068,171
Time deposits		211,843		-		212,397		-		212,397
Securities sold under agreements to repurchase		29,652		-		30,853		-		30,853
FHLBNY overnight advances		30,830		-		30,832		-		30,832
FHLBNY term advances		19,310		-		20,235		-		20,235
Accrued interest payable		237		15		222		-		237

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.