Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Investment securities available for sale
U.S. government agencies	$	—	$	3,500	$	—	$	3,500
Mortgage-backed securities-residential		—		7,715		—		7,715
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		140,040		—		140,040
Non-agency		—		4,566		—		4,566
Corporate bonds		—		1,774		—		1,774
Municipal bonds		—		8,867		—		8,867
Other securities		—		—		1,833		1,833
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	166,462	$	1,833	$	168,321
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	1,030	$	—	$	1,030


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2015	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Investment securities available for sale
U.S. government agencies	$	—	$	25,563	$	—	$	25,563
Mortgage-backed securities-residential		—		11,058		—		11,058
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		170,734		—		170,734
Non-agency		—		2,704		—		2,704
Corporate bonds		—		1,556		—		1,556
Municipal bonds		—		9,931		—		9,931
Other securities		—		—		2,495		2,495
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	221,546	$	2,495	$	224,067
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	555	$	—	$	555

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


(In thousands)	Other securities
Investment Securities Available for Sale	2016		2015
Beginning balance July 1,	$	1,877	$	3,006
Total gains/(losses) - (realized/unrealized):
Included in earnings-net gains on sale and OTTI		10		4
Included in other comprehensive income		—		(9)
Purchases		—		—
Sales and calls		(54)		(4)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	1,833	$	2,997


(In thousands)	Other securities
Investment Securities Available for Sale	2016		2015
Beginning balance January 1,	$	2,495	$	4,034
Total gains/(losses) - (realized/unrealized):
Included in earnings-net gains on sale and OTTI		945		319
Included in other comprehensive income		(445)		(551)
Purchases		104		4
Sales and calls		(1,266)		(809)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	1,833	$	2,997

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, 2016

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

1,950

Other real estate owned

—

1,308

Fair Value Measurements Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

As of December 31, 2015

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

5,946

Other real estate owned

—

2,384

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, 2016			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	1,950	Appraisal of	Appraisal adjustments	0.0%	-	-20.8%	(-14.9%)
			collateral (1)	Liquidation expenses	0.0%	-	-12.8%	(-4.2%)

Other real estate owned		1,308	Appraisal of	Appraisal adjustments	0.0%	-	-52.6%	(-15.5%)
			collateral (1)	Liquidation expenses	0.0%	-	-5.6%	(-5.6%)


	Qualitative Information about Level 3 Fair Value Measurements
As of December 31, 2015			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	5,946	Appraisal of	Appraisal adjustments	0.0%	-	-62.3%	(-13.7%)
			collateral (1)	Liquidation expenses	0.0%	-	-15.4%	(-6.5%)

Other real estate owned		2,384	Appraisal of	Appraisal adjustments	0.0%	-	-54.1%	(-17.1%)
			collateral (1)	Liquidation expenses	0.0%	-	-14.7%	(-6.0%)

(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, 2016
					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	$	28,391	$	28,391	$	28,391	$	—	$	—
Investment securities available for sale		168,321		168,321		26		166,462		1,833
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		3,018		3,018		—		—		3,018
Loans, net		565,564		560,238		—		—		560,238
Accrued interest receivable		3,770		3,770		—		3,770		—
Financial Liabilities:
Demand deposits		90,709		90,709		—		90,709		—
NOW and money markets		201,827		201,827		—		201,827		—
Savings		81,331		81,331		—		81,331		—
Time deposits		218,372		216,304		—		216,304		—
Short-term borrowings		15,000		15,000		15,000		—		—
Long-term borrowings		85,000		83,706		—		83,706		—
Subordinated debt		25,774		26,864		—		26,864		—
Accrued interest payable		2,240		2,240		—		2,240		—
Derivative Instruments (Liability):
Interest rate swaps		1,030		1,030		—		1,030		—


					Fair Value Measurements
					At December 31, 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	$	25,420	$	25,420	$	25,420	$	—	$	—
Investment securities available for sale		224,067		224,067		26		221,546		2,495
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		2,545		2,545		—		—		2,545
Loans, net		489,414		484,961		—		—		484,961
Accrued interest receivable		4,149		4,149		—		4,149		—
Financial Liabilities:
Demand deposits		83,529		83,529		—		83,529		—
NOW and money markets		207,809		207,809		—		207,809		—
Interest-bearing brokered deposits		25,000		25,000		—		25,000		—
Savings		53,833		53,833		—		53,833		—
Time deposits		207,721		207,110		—		207,110		—
Short-term borrowings		9,000		9,000		9,000		—		—
Long-term borrowings		81,970		80,258		—		80,258		—
Subordinated debt		25,774		26,789		—		26,789		—
Accrued interest payable		709		709		—		709		—
Derivative Instruments (Liability):
Interest rate swaps		555		555		—		555		—