Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Recurring Basis

June 30, 2014	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Available for sale securities:

Obligations of U.S. Government corporations and agencies	$	-	$	5,002	$	-	$	5,002
Mortgage-backed - residential		-		49,191		-		49,191
Collateralized mortgage obligations		-		79,454		-		79,454
REMIC		-		1,957		-		1,957
Corporate bonds		-		6,990		-		6,990
Obligations of state and political subdivisions		-		89,695		-		89,695
Mortgage banking derivative – asset		-		580		-		580
Mortgage banking derivative - liability		-		(107)		-		(107)

December 31, 2013	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Available for sale securities:

Obligations of U.S. Government corporations and agencies	$	-	$	4,921	$	-	$	4,921
Mortgage-backed - residential		-		41,292		-		41,292
Collateralized mortgage obligations		-		59,841		-		59,841
Trust preferred stock		1,654		-		582		2,236
Preferred stock		718		-		-		718
Corporate bonds		-		8,942		-		8,942
Obligations of state and political subdivisions		-		80,220				80,220
Mortgage banking derivative - asset		-		295		-		295
Mortgage banking derivative - liability		-		-		-		-

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The table below presents a reconciliation and income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2014 and 2013:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands)
Beginning balance, January 1, 2014	$	582
Total gains or (losses) (realized/unrealized)
Included in earnings (realized)		(329)
Included in other comprehensive income (presented gross of taxes)		993
Amortization		-
Sales		(1,246)
Transfers in and/or out of Level 3		-
Ending balance, June 30, 2014	$	-

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands)
Beginning balance, April 1, 2014	$	704
Total gains or (losses) (realized/unrealized)
Included in earnings (realized)		(329)
Included in other comprehensive income (presented gross of taxes)		871
Amortization		-
Sales		(1,246)
Transfers in and/or out of Level 3		-
Ending balance, June 30, 2014	$	-

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands)
Beginning balance, January 1, 2013	$	1,474
Total gains or (losses) (realized/unrealized)
Included in earnings (realized)		-
Included in other comprehensive income (presented gross of taxes)		262
Amortization		-
Sales		-
Transfers in and/or out of Level 3		-
Ending balance, June 30, 2013	$	1,736

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands)
Beginning balance, April 1, 2013	$	1,651
Total gains or (losses) (realized/unrealized)
Included in earnings (realized)		-
Included in other comprehensive income (presented gross of taxes)		85
Amortization		-
Sales		-
Transfers in and/or out of Level 3		-
Ending balance, June 30, 2013	$	1,736

Schedule of Fair Value, Assets Measured on Non Recurring Basis [Table Text Block]

The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Non-Recurring Basis

June 30, 2014	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Impaired loans
Residential Loans	$	-	$	-	$	519	$	519
Commercial Loans		-		-		1,068		1,068
Multi Family Loans		-		-		303		303
Home Equity Loans		-		-		102		102
CRE Loans		-		-		7,512		7,512
Total impaired loans		-		-		9,504		9,504
Mortgage servicing rights		-		1,173		-		1,173
Real estate held for sale
Residential Loans		-		-		-		-
CRE loans		-		-		489		489
Total Real Estate held for sale		-		-		489		489

December 31, 2013	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Impaired loans
Residential Loans	$	-	$	-	$	259	$	259
Multi Family Residential		-		-		338		338
Home Equity Loans		-		-		531		531
CRE Loans		-		-		9,590		9,590
Total impaired loans		-		-		10,718		10,718
Mortgage servicing rights		-		1,370		-		1,370
Real estate held for sale
Residential		-		-		112		112
CRE		-		-		1,278		1,278
Total Real Estate held for sale		-		-		1,390		1,390

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2014, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)

Impaired Loans- Applies to all loan classes	$	9,504	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions		0-10	%		10	%
Real estate held for sale – Applies to all classes	$	489	Appraisals which utilize sales comparison, net income and cost approach	Discounts for changes in market conditions		0-20	%		20	%

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)

Trust preferred stock	$	582	Discounted cash flow	Constant prepayment rate		40	%		40	%
				Expected asset default		0-30	%		15	%
				Expected recoveries		10-15	%		10	%

Impaired Loans- Applies to all loan classes	$	10,718	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions		0-10	%		10	%

Real estate held for sale – Applies to all classes	$	1,390	Appraisals which utilize sales comparison, net income and cost approach	Discounts for changes in market conditions		0-20	%		20	%

Fair Value, by Balance Sheet Grouping [Table Text Block]

FHLB advances with maturities greater than 90 days are valued based on discounted cash flow analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at June 30, 2014.

			Fair Value Measurements at June 30, 2014 (In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	156,246	$	156,246	$	156,246	$	-	$	-
Investment securities		232,619		232,622		-		232,622		-
Federal Home Loan Bank Stock		13,802		N/A		N/A		N/A		N/A
Loans, net, including loans held for sale		1,564,681		1,572,926		-		7,665		1,565,261
Accrued interest receivable		5,730		5,730		-		813		4,917

Financial Liabilities:
Deposits	$	1,741,812	$	1,743,793	$	355,268	$	1,388,525	$	-
Advances from Federal Home Loan Bank		22,034		22,290		-		22,290		-
Securities sold under repurchase agreements		52,455		52,455		-		52,455		-
Subordinated debentures		36,083		35,256		-		-		35,256

			Fair Value Measurements at December 31, 2013 (In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	179,318	$	179,318	$	179,318	$	-	$	-
Investment securities		198,557		198,563		2,372		195,609		582
Federal Home Loan Bank Stock		19,350		N/A		N/A		N/A		N/A
Loans, net, including loans held for sale		1,564,618		1,568,929		-		9,140		1,559,789
Accrued interest receivable		5,778		5,778		4		696		5,078

Financial Liabilities:
Deposits	$	1,735,792	$	1,738,216	$	348,943	$	1,389,273	$	-
Advances from Federal Home Loan Bank		22,520		22,713		-		22,713		-
Securities sold under repurchase agreements		51,919		51,919		-		51,919		-
Subordinated debentures		36,083		35,237		-		-		35,237

- 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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