Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value of Financial Instruments

Schedule of estimated fair values of financial instruments

					Fair Value Measurements Using
(Dollars in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2015
Assets
Cash and cash equivalents	$	36,250	$	36,250	$	36,250	$	—	$	—
Investment securities held to maturity	525,708		530,136		—		529,268		868
Loans receivable, net	1,110,823		1,140,423		—		—		1,140,423
Loans held for sale	455		458		—		458		—
FHLB stock	4,310		4,310				4,310		—
FRB stock	2,971		2,971		—		2,971		—
Accrued interest receivable	4,587		4,587		4,587		—		—
Interest rate contracts	71		71		—		71		—
Liabilities
Deposits	1,373,379		1,373,623		1,156,090		—		217,533
Advances from the Federal Home Loan Bank	57,000		57,096		—		—		57,096
Securities sold under agreements to repurchase	60,000		60,300		—		—		60,300
Accounts payable and accrued expenses (excluding interest rate contracts)	26,933		26,933		26,933		—		—
Interest rate contracts	78		78		—		78		—
Current income taxes payable	2,647		2,647		2,647		—		—
Advance payments by borrowers for taxes and insurance	4,677		4,677		4,677		—		—
December 31, 2014
Assets
Cash and cash equivalents	$	75,060	$	75,060	$	75,060	$	—	$	—
Investment securities held to maturity	572,922		586,710		—		586,020		690
Loans receivable, net	968,212		998,183		—		—		998,183
Loans held for sale	1,048		1,079		—		1,079		—
FHLB stock	11,234		11,234		—		11,234		—
FRB stock	2,925		2,925		—		2,925		—
Accrued interest receivable	4,436		4,436		4,436		—		—
Interest rate contracts	62		62		—		62		—
Liabilities
Deposits	1,359,679		1,360,074		1,137,942		—		222,132
Advances from the Federal Home Loan Bank	15,000		14,977		—		—		14,977
Securities sold under agreements to repurchase	72,000		72,334		—		—		72,334
Accounts payable and accrued expenses (excluding interest rate contracts)	24,044		24,044		24,044		—		—
Interest rate contracts	54		54		—		54		—
Current income taxes payable	826		826		826		—		—
Advance payments by borrowers for taxes and insurance	3,916		3,916		3,916		—		—

Schedule of assets and liabilities measured at fair value on a recurring basis

(Dollars in thousands)	Level 1		Level 2			Level 3		Total
June 30, 2015:
Interest rate contracts — assets	$	—	$	71		$	—	$	71
Interest rate contracts — liabilities	—		(78		)	—		(78		)
December 31, 2014:
Interest rate contracts — assets	$	—	$	62		$	—	$	62
Interest rate contracts — liabilities	—		(54		)	—		(54		)

Schedule of assets measured at fair value on nonrecurring basis and related gains and losses

(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Total Gains/ (Losses)
June 30, 2015:
Trust preferred securities	$	—	$	—	$	868	$	868	$	179
Real estate owned	—		—		192		192		—
December 31, 2014:
Impaired loans	$	—	$	—	$	327	$	327	$	(4	)
Trust preferred securities	—		—		690		690		153
Mortgage servicing assets	—		—		505		505		(15		)

Schedule of significant unobservable inputs for Level 3 nonrecurring fair value measurements

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Value
June 30, 2015:
Trust preferred securities	$	868	Discounted cash flow	Discount rate	Three-month LIBOR plus 20%
December 31, 2014:
Impaired loans — non-collateral dependent	$	327	Discounted cash flow	Discount rate (1)	6.10%
Trust preferred securities	690		Discounted cash flow	Discount rate	Three-month LIBOR plus 20%
Mortgage servicing assets	505		Discounted cash flow	Discount rate	10.50%
				Prepayment speed (PSA)	164.8 – 262.5
				Annual cost to service (per loan)	$55

(1) Represents the yield on contractual cash flows prior to modification in troubled debt restructurings.