Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair value measurements of assets on a recurring basis

The following tables summarize the balances of assets measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013.

	December 31, 2014
	Total		Level 1		Level 2		Level 3
	(In thousands)
Investment securities available for sale:
U.S. Treasury and U.S. Government-sponsored agencies	$	21,427	$	—	$	21,427	$	—
Municipal securities	173,037		—		173,037		—
Mortgage backed securities and collateralized mortgage obligations—residential:
U.S Government-sponsored agencies	542,399		—		542,399		—
Corporate obligations	4,010		—		4,010		—
Mutual funds and other equities	1,973		1,973		—		—
Total	$	742,846	$	1,973	$	740,873	$	—

	December 31, 2013
	Total		Level 1		Level 2		Level 3
	(In thousands)
Investment securities available for sale:
U.S. Treasury and U.S. Government-sponsored agencies	$	6,039	$	—	$	6,039	$	—
Municipal securities	49,060		—		49,060		—
Mortgage backed securities and collateralized mortgage obligations—residential:
U.S Government-sponsored agencies	108,035		—		108,035		—
Total	$	163,134	$	—	$	163,134	$	—

Fair value measurements of assets on a nonrecurring basis

The tables below represent assets measured at fair value on a nonrecurring basis at December 31, 2014 and December 31, 2013 and the net losses (gains) recorded in earnings during years ended December 31, 2014 and 2013.

	Basis (1)		Fair Value at December 31, 2014
			Total		Level 1		Level 2		Level 3		Net Losses (Gains) Recorded in Earnings  During the Year Ended December 31, 2014
	(In thousands)
Noncovered impaired loans:
Commercial business:
Commercial and industrial	$	161	$	138	$	—	$	—	$	138	$	23
Total commercial business	161		138		—		—		138		23
Real estate construction and land development:
One-to-four family residential	2,094		1,725		—		—		1,725		350
Total real estate construction and land development	2,094		1,725		—		—		1,725		350
Consumer	49		45		—		—		45		5
Total noncovered impaired loans	2,304		1,908		—		—		1,908		378
Investment securities held to maturity:
Mortgage back securities and collateralized mortgage obligations—residential:
Private residential collateralized mortgage obligations	36		11		—		11		—		45
Total	$	2,340	$	1,919	$	—	$	11	$	1,908	$	423

(1) Basis represents the unpaid principal balance of noncovered impaired loans and amortized cost of investment securities held to maturity.

	Basis (1)		Fair Value at December 31, 2013
			Total		Level 1		Level 2		Level 3		Net Losses (Gains) Recorded in Earnings  During the Year Ended December 31, 2013
	(In thousands)
Noncovered impaired loans:
Commercial business:
Commercial and industrial	$	4,850	$	2,134	$	—	$	—	$	2,134	$	1,681
Owner-occupied commercial real estate	1,880		1,285		—		—		1,285		594
Non-owner occupied commercial real estate	4,123		3,759		—		—		3,759		(2,409		)
Total commercial business	10,853		7,178		—		—		7,178		(134		)
One-to-four family residential	—		—		—		—		—		—
Real estate construction and land development:
One-to-four family residential	911		700		—		—		700		211
Total real estate construction and land development	911		700		—		—		700		211
Consumer	678		525		—		—		525		153
Total noncovered impaired loans	12,442		8,403		—		—		8,403		230
Covered impaired loans:
Commercial business:
Commercial and industrial	3,751		3,122		—		—		3,122		628
Non-owner occupied commercial real estate	—		—		—		—		—		—
Total commercial business	3,751		3,122		—		—		3,122		628
One-to-four family residential	450		419		—		—		419		(13		)
Consumer	—		—		—		—		—		(2		)
Total covered impaired loans	4,201		3,541		—		—		3,541		613
Investment securities held to maturity:
Mortgage back securities and collateralized mortgage obligations – residential:
Private residential collateralized mortgage obligations	19		19		—		19		—		38
Other real estate owned:
Commercial properties	1,720		1,222		—		—		1,222		348
Total	$	18,382	$	13,185	$	—	$	19	$	13,166	$	1,229

(1) Basis represents the unpaid principal balance of noncovered impaired and covered impaired loans, amortized cost of investment securities held to maturity, and carrying value at ownership date of other real estate owned.

Fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014 and December 31, 2013.

	December 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range of Inputs; Weighted Average
	(Dollars in thousands)
Noncovered impaired loans	$	1,908	Market approach	Adjustment for differences between the comparable sales	(47.5%) - 96.2%; 7.0%

	December 31, 2013
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range of Inputs; Weighted Average
	(Dollars in thousands)
Noncovered impaired loans	$	8,403	Market approach	Adjustment for differences between the comparable sales	(27.8%) - 19.1%; (6.6%)
Covered impaired loans	$	3,541	Market approach	Adjustment for differences between the comparable sales	(50.0%) - (25.0%); (35.0%)
Other real estate owned	$	1,222	Market approach	Adjustment for differences between the comparable sales	(60.1)% - 13.6%; (35.2%)

Schedule of carrying value and fair value of financial instruments

The tables below present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at the dates indicated.

	December 31, 2014
	Carrying Value		Fair Value		Fair Value Measurements Using:
					Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	121,636	$	121,636	$	121,636	$	—	$	—
Other interest earning deposits	10,126		10,145		—		10,145		—
Investment securities available for sale	742,846		742,846		1,973		740,873		—
Investment securities held to maturity	35,814		36,874		—		36,874		—
Federal Home Loan Bank stock	12,188		N/A		N/A		N/A		N/A
Loans held for sale	5,582		5,710		—		5,710		—
Loans receivable, net of allowance for loan losses	2,223,348		2,279,081		—		—		2,279,081
Accrued interest receivable	9,836		9,836		3		3,009		6,824
Financial Liabilities:
Deposits:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	$	2,380,934	$	2,380,934	$	2,380,934	$	—	$	—
Certificate of deposit accounts	525,397		525,768		—		525,768		—
Total deposits	$	2,906,331	$	2,906,702	$	2,380,934	$	525,768	$	—
Securities sold under agreement to repurchase	$	32,181	$	32,181	$	32,181	$	—	$	—
Junior subordinated debentures	19,082		19,082		—		—		19,082
Accrued interest payable	411		411		62		328		21

	December 31, 2013
	Carrying Value		Fair Value		Fair Value Measurements Using:
					Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	130,400	$	130,400	$	130,400	$	—	$	—
Other interest earning deposits	15,662		15,747		—		15,747		—
Investment securities available for sale	163,134		163,134		—		163,134		—
Investment securities held to maturity	36,154		36,340		—		36,340		—
Federal Home Loan Bank stock	5,741		N/A		N/A		N/A		N/A
Loans receivable, net of allowance	1,203,096		1,218,192		—		—		1,218,192
Accrued interest receivable	5,462		5,462		26		910		4,526
Financial Liabilities:
Deposits:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	$	1,089,759	$	1,089,759	$	1,089,759	$	—	$	—
Certificate of deposit accounts	309,430		311,065		—		311,065		—
Total deposits	$	1,399,189	$	1,400,824	$	1,089,759	$	311,065	$	—
Securities sold under agreement to repurchase	$	29,420	$	29,420	$	29,420	$	—	$	—
Accrued interest payable	152		152		17		135		—