Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 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 September 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	$	—	$	25,907	$	—	$	25,907
Mortgage-backed securities-residential		—		14,418		—		14,418
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		172,745		—		172,745
Non-agency		—		2,927		—		2,927
Corporate bonds		—		1,520		—		1,520
Municipal bonds		—		10,072		—		10,072
Other securities		—		—		2,997		2,997
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	227,589	$	2,997	$	230,612
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	708	$	—	$	708


	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
Assets:
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 July 1,	$	3,006	$	4,619
Total gains/(losses) - (realized/unrealized):
Included in earnings-gain on sale		4		191
Included in other comprehensive income		(9)		11
Purchases		—		14
Sales and calls		(4)		(445)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	2,997	$	4,390


(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		319		251
Included in other comprehensive income		(551)		299
Purchases		4		14
Sales and calls		(809)		(799)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	2,997	$	4,390

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, 2015

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

3,657

Other real estate owned

—

1,957

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 September 30, 2015			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	3,657	Appraisal of	Appraisal adjustments	0.0%	-	-62.3%	(-28.7%)
			collateral (1)	Liquidation expenses	0.0%	-	-23.2%	(-6.6%)

Other real estate owned		1,957	Appraisal of	Appraisal adjustments	0.0%	-	-84.2%	(-30.2%)
			collateral (1)	Liquidation expenses	0.0%		-14.7%	(-3.6%)


	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 September 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	$	24,217	$	24,217	$	24,217	$	—	$	—
Investment securities available for sale		230,612		230,612		26		227,589		2,997
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		2,545		2,545		—		—		2,545
Loans, net		461,410		456,718		—		—		456,718
Accrued interest receivable		4,336		4,336		—		4,336		—
Financial Liabilities:
Demand deposits		76,949		76,949		—		76,949		—
NOW and money markets		202,729		202,729		—		202,729		—
Interest-bearing brokered deposits		25,000		25,000				25,000
Savings		38,441		38,441		—		38,441		—
Time deposits		210,645		208,869		—		208,869		—
Short-term borrowings		9,000		9,000		9,000		—		—
Long-term borrowings		82,084		79,698		—		79,698		—
Subordinated debt		25,774		26,696		—		26,696		—
Accrued interest payable		2,168		2,168		—		2,168		—
Derivative Instruments:
Interest rate swaps		708		708		—		708		—


					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		—