Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Schedule Of Estimated Fair Values

Estimated fair values as of the periods indicated are as follows:

	March 31, 2015				December 31, 2014
(In Thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair  Value
Financial assets:
Level 1 inputs:
Cash, due from banks and deposits in other banks		$46,072		$46,072		$72,056		$72,056
Investment securities	34,912		34,912		45,570		45,570
Level 2 inputs:
Investment securities	225,426		225,523		241,765		241,872
Accrued interest receivable	3,784		3,784		3,373		3,373
Interest rate contracts	198		198		78		78
Level 3 inputs:
Loans and loans held for sale, net	1,005,490		1,008,133		951,647		957,643
Purchased receivables, net	15,332		15,332		15,254		15,254
Interest rate lock commitments	1,972		1,972		841		841
Mortgage servicing rights	971		971		1,010		1,010
Financial liabilities:
Level 2 inputs:
Deposits		$1,191,013		$1,191,365		$1,179,747		$1,180,136
Securities sold under repurchase agreements	17,820		17,820		19,843		19,843
Borrowings	22,569		22,716		26,304		26,485
Accrued interest payable	52		52		18		18
Interest rate contracts	597		597		158		158
Level 3 inputs:
RML earn-out liability	8,850		8,850		7,324		7,324
Junior subordinated debentures	18,558		17,242		18,558		17,239
Unrecognized financial instruments:
Commitments to extend credit(1)		$220,008		$2,200		$219,349		$2,193
Standby letters of credit(1)	5,963		60		6,004		60

⁽¹⁾ Carrying amounts reflect the notional amount of credit exposure under these financial instruments.

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:

(In Thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2015
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities		$200,255		$15,151		$185,104		$—
Municipal securities	12,213		—		12,213		—
U.S. Agency mortgage-backed securities	979		—		979		—
Corporate bonds	39,307		17,743		21,564		—
Preferred stock	2,018		2,018		—		—
Total available for sale securities		$254,772		$34,912		$219,860		$—
Interest rate contracts		$198		$—		$198		$—
Interest rate lock commitments	1,972		—		—		1,972
Mortgage servicing rights	971		—		—		971
Total other assets		$3,141		$—		$198		$2,943
Liabilities:
Interest rate contracts		$597		$—		$597		$—
December 31, 2014
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities		$226,190		$15,545		$210,645		$—
Municipal securities	12,124		—		12,124		—
U.S. Agency mortgage-backed securities	1,029		—		1,029		—
Corporate bonds	39,235		26,873		12,362		—
Preferred stock	3,152		3,152		—		—
Total available for sale securities		$281,730		$45,570		$236,160		$1,851
Interest rate contracts		$78		$—		$78		$—
Interest rate lock commitments	841		—		—		841
Mortgage servicing rights	1,010		—		—		1,010
Total other assets		$1,929		$—		$78		$1,851
Liabilities:
Interest rate contracts		$158		$—		$158		$—

Schedule Of Asset Impairment Or Valuation Adjustment Recognized At Fair Value On A Nonrecurring Basis

As of and for the three months ending March 31, 2015 and 2014, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis, except for certain assets as shown in the following table.  For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.    

(In Thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (gains) losses
March 31, 2015
Loans measured for impairment		$2,725		$—		$—		$2,725		$340
Other real estate owned	649		—		—		649		268
Total		$3,374		$—		$—		$3,374		$608
March 31, 2014
Loans measured for impairment		$807		$—		$—		$807		$271
Other real estate owned	—		—		—		—		—
Total		$807		$—		$—		$807		$271

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at March 31, 2015:

Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average Rate Range
Loans measured for impairment	In-house valuation of real estate; discounted cash flow	Discount rate	25% - 100%
		Cash flows	NA(1)
Other real estate owned	Fair value of collateral	Estimated selling and holding costs	7% - 25%
Interest rate lock commitment	External pricing model	Pull through rate	92.3	%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	9.95% - 25.77%
		Discount rate	9.25% - 10%
RML earn-out liability	Discounted cash flow	Financial projections of mortgage operations	0.47% - 1.99%

⁽¹⁾  Fair value of impaired collateral dependent loans was calculated using contractual cash flows for specific impaired loan.