Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Investment securities available for sale
U.S. government agencies	$	—	$	25,484	$	—	$	25,484
Mortgage-backed securities-residential		—		14,691		—		14,691
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		145,126		—		145,126
Non-agency		—		3,066		—		3,066
Corporate bonds		—		10,640		—		10,640
Municipal bonds		—		9,983		—		9,983
Other securities		—		—		3,006		3,006
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	208,990	$	3,006	$	212,022
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	280	$	—	$	280


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2014	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Investment securities available for sale
U.S. government agencies	$	—	$	25,289	$	—	$	25,289
Mortgage-backed securities-residential		—		22,387		—		22,387
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		168,977		—		168,977
Non-agency		—		3,731		—		3,731
Corporate bonds		—		15,727		—		15,727
Municipal bonds		—		10,173		—		10,173
Other securities		—		—		4,034		4,034
Common stocks		50		—		—		50
Total investment securities available for sale	$	50	$	246,284	$	4,034	$	250,368
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	187	$	—	$	187

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


(In thousands)	Other securities
Investment Securities Available for Sale	2015		2014
Beginning balance January 1,	$	4,034	$	4,625
Total gains/(losses) - (realized/unrealized):
Included in earnings-gain on sale		315		60
Included in other comprehensive income		(542)		288
Purchases		4		—
Sales and calls		(805)		(354)
Transfers in and/or out of Level 3		—		—
Ending balance June 30,	$	3,006	$	4,619

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 June 30, 2015

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

2,729

Other real estate owned

—

3,140

Fair Value Measurements Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

As of December 31, 2014

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

2,812

Other real estate owned

—

3,418

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


	Qualitative Information about Level 3 Fair Value Measurements
As of June 30, 2015			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	2,729	Appraisal of	Appraisal adjustments	0.0%	-	-40.0%	(-26.9%)
			collateral (1)	Liquidation expenses	0.0%	-	-24.0%	(-7.1%)

Other real estate owned		3,140	Appraisal of	Appraisal adjustments	0.0%	-	-62.5%	(-15.0%)
			collateral (1)	Liquidation expenses	0.0%		-14.7%	(-11.8%)


	Qualitative Information about Level 3 Fair Value Measurements
As of December 31, 2014			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	2,812	Appraisal of	Appraisal adjustments	0.0%	-	-20.0%	(-20.0%)
			collateral (1)	Liquidation expenses	0.0%	-	-24.0%	(-7.8%)

Other real estate owned		3,418	Appraisal of	Appraisal adjustments	0.0%	-	-68.6%	(-14.5%)
			collateral (1)	Liquidation expenses	0.0%	-	-14.7%	(-14.7%)

(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 June 30, 2015
					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	$	28,015	$	28,015	$	28,015	$	—	$	—
Investment securities available for sale		212,022		212,022		26		208,990		3,006
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		2,585		2,585		—		—		2,585
Loans, net		437,611		432,724		—		—		432,724
Accrued interest receivable		4,459		4,459		—		4,459		—
Financial Liabilities:
Demand deposits		84,755		84,755		—		84,755		—
NOW and money markets		201,227		201,227		—		201,227		—
Savings		24,866		24,866		—		24,866		—
Time deposits		220,662		219,221		—		219,221		—
Long-term borrowings		82,198		79,764		—		79,764		—
Subordinated debt		25,774		26,287		—		26,287		—
Accrued interest payable		1,807		1,807		—		1,807		—
Derivative Instruments:
Interest rate swaps		280		280		—		280		—


					Fair Value Measurements
					At December 31, 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	$	30,790	$	30,790	$	30,790	$	—	$	—
Investment securities available for sale		250,368		250,368		50		246,284		4,034
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		2,622		2,622		—		—		2,622
Loans, net		403,424		400,979		—		—		400,979
Accrued interest receivable		5,270		5,270		—		5,270		—
Financial Liabilities:
Demand deposits		73,665		73,665		—		73,665		—
NOW and money markets		212,739		212,739		—		212,739		—
Savings		18,721		18,721		—		18,721		—
Time deposits		225,300		223,788		—		223,788		—
Long-term borrowings		92,426		90,022		—		90,022		—
Subordinated debt		25,774		25,091		—		25,091		—
Accrued interest payable		726		726		—		726		—
Derivative Instruments:
Interest rate swaps		187		187		—		187		—