Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

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

Assets and Liabilities Measured on a Recurring Basis

March 31, 2015	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	$	-	$	5,001	$	-	$	5,001
Mortgage-backed - residential		-		61,765		-		61,765
REMICs		-		1,830		-		1,830
Collateralized mortgage obligations		-		82,590		-		82,590
Preferred stock		1		-		-		1
Corporate bonds		1,995		4,013		-		6,008
Obligations of state and political subdivisions		-		91,243		-		91,243
Mortgage banking derivative - asset		-		884		-		884
Mortgage banking derivative - liability		-		119		-		119

December 31, 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	$	-	$	980	$	-	$	980
Mortgage-backed - residential		-		59,856		-		59,856
REMICs		-		1,839		-		1,839
Collateralized mortgage obligations		-		81,121		-		81,121
Preferred stock		1		-		-		1
Corporate bonds		1,989		5,003		-		6,992
Obligations of state and political subdivisions		-		88,532				88,532
Mortgage banking derivative - asset		-		351		-		351
Mortgage banking derivative - liability		-		24		-		24

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

There were no assets measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2015. 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 months ended March 31, 2014:

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 (unrealized)		-
Included in other comprehensive income (presented gross of taxes)		122
Amortization		-
Sales		-
Transfers in and/or out of Level 3		-
Ending balance, March 31, 2014	$	704

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

Assets and Liabilities Measured on a Non-Recurring Basis

March 31, 2015	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

	(In Thousands)
Impaired loans
1-4 Family Residential Real Estate	$	-	$	-	$	405	$	405
Multi Family Residential		-		-		257		257
Commercial Real Estate		-		-		5,501		5,501
Commercial loans		-		-		141		141
Home Equity and Improvement		-		-		96		96
Total Impaired loans		-		-		6,400		6,400
Mortgage servicing rights		-		935		-		935
Real estate held for sale		-
Residential		-		-		115		115
CRE		-		-		321		321
Total real estate held for sale		-		-		436		436

December 31, 2014	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

	(In Thousands)
Impaired loans
1-4 Family Residential Real Estate	$	-	$	-	$	419	$	419
Multi Family Residential		-		-		269		269
Commercial Real Estate		-		-		6,665		6,665
Commercial						340		340
Home Equity and Improvement		-		-		98		98
Total impaired loans		-		-		7,791		7,791
Mortgage servicing rights		-		1,034		-		1,034
Real estate held for sale
Residential		-		-		-		-
CRE		-		-		739		739
Total real estate held for sale		-		-		739		739

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 March 31, 2015, 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	$	6,400	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions		10-30%		11	%

Real estate held for sale – Applies to all classes	$	436	Appraisals which utilize sales comparison, net income and cost approach	Discounts for changes in market conditions		20-30%		22	%

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2014, the significant unobservable inputs used in the fairv alue 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	$	7,791	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions		10-30%		11	%

Real estate held for sale – Applies to all classes	$	739	Appraisals which utilize sales comparison, net income and cost approach	Discounts for changes in market conditions		20-40%		28	%

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

The cost or value of any call or put options is based on the estimated cost to settle the option at March 31, 2015.

			Fair Value Measurements at March 31, 2015 (In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	81,472	$	81,472	$	81,472	$	-	$	-
Investment securities		248,737		248,738		1,996		246,742		-
Federal Home Loan Bank Stock		13,802		N/A		N/A		N/A		N/A
Loans, net, including loans held for sale		1,668,760		1,682,215		-		10,151		1,672,064
Accrued interest receivable		6,967		6,967		-		1,375		5,592

Financial Liabilities:
Deposits	$	1,772,693	$	1,775,117	$	370,997	$	1,404,120	$	-
Advances from Federal Home Loan Bank		31,298		31,562		-		31,562		-
Securities sold under repurchase agreements		60,271		60,271		-		60,271		-
Subordinated debentures		36,083		35,788		-		-		35,788

			Fair Value Measurements at December 31, 2014 (In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	112,936	$	112,936	$	112,936	$	-	$	-
Investment securities		239,634		239,629		1,990		237,639		-
Federal Home Loan Bank Stock		13,802		N/A		N/A		N/A		N/A
Loans, net, including loans held for sale		1,626,555		1,632,507		-		4,741		1,627,766
Accrued interest receivable		6,037		6,037		3		846		5,188

Financial Liabilities:
Deposits	$	1,760,813	$	1,762,733	$	379,552	$	1,383,181	$	-
Advances from Federal Home Loan Bank		21,544		21,772		-		21,772		-
Securities sold under repurchase agreements		54,759		54,759		-		54,759		-
Subordinated debentures		36,083		35,307		-		-		35,307

- 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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