FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2015

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

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):



			Fair Value Measurement at September 30, 2015 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	126,028	$	14,878	$	111,150	$	—
Mortgage-backed securities, residential	162,580		—		162,580		—
Obligations of states and political subdivisions	44,573		—		44,573		—
Corporate bonds and notes	1,260		—		1,260		—
SBA loan pools	669		—		669		—
Corporate stocks	461		54		407		—
Total available for sale securities	$	335,571	$	14,932	$	320,639	$	—

Trading assets	$	636	$	636	$	—	$	—



			Fair Value Measurement at December 31, 2014 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	181,673	$	31,115	$	150,558	$	—
Mortgage-backed securities, residential	61,660		—		61,660		—
Collateralized mortgage obligations	338		—		338		—
Obligations of states and political subdivisions	31,451		—		31,451		—
Corporate bonds and notes	1,533		—		1,533		—
SBA loan pools	1,304		—		1,304		—
Trust Preferred securities	2,028		—		2,028		—
Corporate stocks	520		104		416		—
Total available for sale securities	$	280,507	$	31,219	$	249,288	$	—

Trading assets	$	549	$	549	$	—	$	—

Summary of assets and liabilities measured at fair value on a non-recurring basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands):



			Fair Value Measurement at September 30, 2015 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial mortgages:
Commercial mortgages	$	3,481	$	—	$	—	$	3,481
Total impaired loans	$	3,481	$	—	$	—	$	3,481
Other real estate owned:
Commercial mortgages:
Commercial mortgages	$	2,376	$	—	$	—	$	2,376
Total other real estate owned, net	$	2,376	$	—	$	—	$	2,376



			Fair Value Measurement at December 31, 2014 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial mortgages:
Commercial mortgages	$	3,593	$	—	$	—	$	3,593
Consumer loans:
Home equity lines and loans	52		—		—		52
Total impaired loans	$	3,645	$	—	$	—	$	3,645
Other real estate owned:
Commercial mortgages:
Commercial mortgages	$	3,063	$	—	$	—	$	3,063
Consumer loans:
Home equity lines and loans	2		—		—		2
Total other real estate owned, net	$	3,065	$	—	$	—	$	3,065

Nonrecurring fair value measurement, valuation techniques

The following tables presents information related to Level 3 non-recurring fair value measurement at September 30, 2015 and December 31, 2014 (in thousands):



Description	Fair Value at September 30, 2015		Valuation Technique	Unobservable Inputs	Unobservable Inputs Value or Range
Impaired loans	$	3,481	Appraisal of collateral⁽¹⁾	Appraisal adjustments by management for qualitative factors such as market conditions and collateral characteristics	0% - 100% discount

Other real estate owned	$	2,376	Appraisal of collateral⁽¹⁾	Appraisal adjustments by management for qualitative factors such as market conditions and estimated liquidation expenses	31% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.



Description	Fair Value at December 31, 2014		Valuation Technique	Unobservable Inputs	Unobservable Inputs Value or Range
Impaired loans	$	3,645	Appraisal of collateral⁽¹⁾	Appraisal adjustments by management for qualitative factors such as market conditions and collateral characteristics	0% - 100% discount

Other real estate owned	$	3,065	Appraisal of collateral⁽¹⁾	Appraisal adjustments by management for qualitative factors such as market conditions and estimated liquidation expenses	7% - 27% discount

Carrying value and estimated fair value of financial instruments

The carrying amounts and estimated fair values of other financial instruments, at September 30, 2015 and December 31, 2014, are as follows (in thousands):



	Fair Value Measurements at September 30, 2015 Using
Financial assets:	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Estimated Fair Value (1)
Cash and due from financial institutions	$	30,800	$	30,800	$	—	$	—	$	30,800
Interest-bearing deposits in other financial institutions	44,449		44,449		—		—		44,449
Trading assets	636		636		—		—		636
Securities available for sale	335,571		14,932		320,639		—		335,571
Securities held to maturity	4,604		—		4,897		—		4,897
FHLBNY and FRBNY stock	4,171		—		—		—		N/A
Loans, net	1,127,915		—		—		1,152,781		1,152,781
Loans held for sale	316		—		319		—		319
Accrued interest receivable	4,252		113		1,471		2,668		4,252
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,237,236	$	1,237,236	$	—	$	—	$	1,237,236
Time deposits	173,205		—		173,639		—		173,639
Securities sold under agreements to repurchase	30,358		—		31,232		—		31,232
FHLBNY term advances	19,230		—		19,853		—		19,853
Accrued interest payable	207		15		192		—		207

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.



	Fair Value Measurements at December 31, 2014 Using
Financial assets:	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Estimated Fair Value (1)
Cash and due from financial institutions	$	28,130	$	28,130	$	—	$	—	$	28,130
Interest-bearing deposits in other financial institutions	1,033		1,033		—		—		1,033
Trading assets	549		549		—		—		549
Securities available for sale	280,507		31,219		249,288		—		280,507
Securities held to maturity	5,831		—		6,197		—		6,197
FHLBNY and FRBNY stock	5,535		—		—		—		N/A
Loans, net	1,107,888		—		—		1,135,590		1,135,590
Loans held for sale	665		—		665		—		665
Accrued interest receivable	4,185		145		1,295		2,745		4,185
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,068,171	$	1,068,171	$	—	$	—	$	1,068,171
Time deposits	211,843		—		212,397		—		212,397
Securities sold under agreements to repurchase	29,652		—		30,853		—		30,853
FHLBNY overnight advances	30,830		—		30,832		—		30,832
FHLBNY term advances	19,310		—		20,235		—		20,235
Accrued interest payable	237		15		222		—		237