Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value of Financial Instruments [Abstract]

Schedule of Financial Assets Measured at Fair Value on Recurring Basis


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of September 30, 2014	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Investment securities available-for-sale
U.S. government agencies	$	—	$	32,541	$	—	$	32,541
Mortgage-backed securities-residential		—		27,127		—		27,127
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		172,684		—		172,684
Non-agency		—		3,938		—		3,938
Corporate bonds		—		15,633		—		15,633
Municipal bonds		—		9,027		—		9,027
Other securities		—		—		4,390		4,390
Common stocks		50		—		—		50
Total investment securities available-for-sale	$	50	$	260,950	$	4,390	$	265,390


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2013	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Investment securities available-for-sale
U.S. government agencies	$	—	$	62,036	$	—	$	62,036
Mortgage-backed securities-residential		—		32,097		—		32,097
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		189,103		—		189,103
Non-agency		—		4,479		—		4,479
Corporate bonds		—		9,438		—		9,438
Municipal bonds		—		6,900		—		6,900
Other securities		—		—		4,625		4,625
Common stocks		49		—		—		49
Total investment securities available-for-sale	$	49	$	304,053	$	4,625	$	308,727

Additional Information About Assets Measured at Fair Value on a Recurring Basis, Level 3 Inputs


(In thousands)	Other securities
Investment Securities Available for Sale	2014		2013
Beginning balance January 1,	$	4,625	$	4,164
Total gains/(losses) - (realized/unrealized):
Included in earnings		251		5
Included in other comprehensive income		299		361
Purchases		14		32
Sales and calls		(799)		(300)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	4,390	$	4,262

Financial Assets Measured at Fair Value on Nonrecurring Basis


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of September 30, 2014	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets
Impaired loans and leases	$	—	$	—	$	3,739	$	3,739
Other real estate owned		—		—		2,624		2,624
Loans and leases held for sale		—		—		1,018		1,018


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2013	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets
Impaired loans and leases	$	—	$	—	$	4,073	$	4,073
Other real estate owned		—		—		9,182		9,182
Loans and leases held for sale		—		—		1,446		1,446

Schedule of quantitative information about assets measured at fair value on nonrecurring basis


	Qualitative Information about Level 3 Fair Value Measurements
As of September 30, 2014			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	3,739	Appraisal of	Appraisal adjustments	0.0%	-	-28.9%	(-20.9%)
			collateral (1)	Liquidation expenses	0.0%	-	-21.1%	(-7.5%)

Other real estate owned		2,624	Appraisal of	Appraisal adjustments	0.0%	-	-69.7%	(-11.3%)
			collateral (1)	Liquidation expenses			-14.7%	(-14.7%)

Loans and leases held for sale		1,018	Appraisal of	Agreement of sale			0.0%
			collateral (1)


	Qualitative Information about Level 3 Fair Value Measurements
As of December 31, 2013			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	4,073	Appraisal of	Appraisal adjustments	0.0%	-	-25.0%	(-2.0%)
			collateral (1)	Liquidation expenses	0.0%	-	-23.2%	(-6.7%)

Other real estate owned		9,182	Appraisal of	Appraisal adjustments	0.0%	-	-62.5%	(-11.2%)
			collateral (1)	Liquidation expenses	-2.8%	-	-6.8%	(-5.0%)

Loans and leases held for sale		1,446	Appraisal of	Agreement of sale			0.0%
			collateral (1)

(1)

Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses.

Fair Value by Balance Sheet Grouping Instruments


					Fair Value Measurements
					At September 30, 2014
					Quoted Prices
					in Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
	Carrying		Estimated		Assets		Inputs		Inputs
(In thousands)	amount		fair value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	21,933	$	21,933	$	21,933	$	—	$	—
Investment securities available-for-sale		265,390		265,390		50		260,950		4,390
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		3,678		3,678		—		—		3,678
Loans held for sale		1,018		1,018		—		—		1,018
Loans, net		385,694		383,088		—		—		383,088
Accrued interest receivable		5,554		5,554		—		5,554		—
Financial Liabilities:
Demand deposits		67,901		67,901		—		67,901		—
NOW and money markets		203,978		203,978		—		203,978		—
Savings		19,142		19,142		—		19,142		—
Time deposits		224,765		223,270		—		223,270		—
Long-term borrowings		97,540		94,885		—		94,885		—
Subordinated debt		25,774		24,209		—		24,209		—
Accrued interest payable		2,305		2,305		—		2,305		—


					Fair Value Measurements
					At December 31, 2013
					Quoted Prices
					in Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
	Carrying		Estimated		Assets		Inputs		Inputs
(In thousands)	amount		fair value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	16,844	$	16,844	$	16,844	$	—	$	—
Investment securities available-for-sale		308,727		308,727		49		304,053		4,625
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		4,204		4,204		—		—		4,204
Loans held for sale		1,446		1,446		—		—		1,446
Loans, net		352,810		349,336		—		—		349,336
Accrued interest receivable		7,054		7,054		—		7,054		—
Financial Liabilities:
Demand deposits		60,473		60,473		—		60,473		—
NOW and money markets		210,053		210,053		—		210,053		—
Savings		17,593		17,593		—		17,593		—
Time deposits		240,845		239,102		—		239,102		—
Short-term borrowings		10,000		10,000		10,000		—		—
Long-term borrowings		97,881		94,896		—		94,896		—
Subordinated debt		25,774		26,000		—		26,000		—
Accrued interest payable		965		965		—		965		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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