Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value of Financial Instruments [Abstract]

Schedule of Financial Assets Measured at Fair Value on Recurring Basis


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of June 30, 2014	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Investment securities available-for-sale
U.S. government agencies	$	—	$	42,043	$	—	$	42,043
Mortgage-backed securities-residential		—		31,031		—		31,031
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		173,843		—		173,843
Non-agency		—		4,193		—		4,193
Corporate bonds		—		15,718		—		15,718
Municipal bonds		—		9,610		—		9,610
Other securities		—		—		4,619		4,619
Common stocks		51		—		—		51
Total investment securities available-for-sale	$	51	$	276,438	$	4,619	$	281,108


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2013	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Investment securities available-for-sale
U.S. government agencies	$	—	$	62,036	$	—	$	62,036
Mortgage-backed securities-residential		—		32,097		—		32,097
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		189,103		—		189,103
Non-agency		—		4,479		—		4,479
Corporate bonds		—		9,438		—		9,438
Municipal bonds		—		6,900		—		6,900
Other securities		—		—		4,625		4,625
Common stocks		49		—		—		49
Total investment securities available-for-sale	$	49	$	304,053	$	4,625	$	308,727

Additional Information About Assets Measured at Fair Value on a Recurring Basis, Level 3 Inputs


(In thousands)	Other securities
Investment Securities Available for Sale	2014		2013
Beginning balance January 1,	$	4,625	$	4,164
Total gains/(losses) - (realized/unrealized):
Included in earnings		60		5
Included in other comprehensive income		288		319
Purchases		—		32
Sales and calls		(354)		(113)
Transfers in and/or out of Level 3		—		—
Ending balance June 30,	$	4,619	$	4,407

Financial Assets Measured at Fair Value on Nonrecurring Basis


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of June 30, 2014	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets
Impaired loans and leases	$	—	$	—	$	982	$	982
Other real estate owned		—		—		9,042		9,042
Loans and leases held for sale		—		—		1,396		1,396


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2013	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets
Impaired loans and leases	$	—	$	—	$	4,073	$	4,073
Other real estate owned		—		—		9,182		9,182
Loans and leases held for sale		—		—		1,446		1,446

Schedule of quantitative information about assets measured at fair value on nonrecurring basis

Qualitative Information about Level 3 Fair Value Measurements

As of June 30, 2014

Valuation

Range

(In thousands)

Fair Value

Techniques

Unobservable Input

(Weighted Average)

Impaired loans and leases

982

Appraisal of

Appraisal adjustments

0.0%

collateral (1)

Liquidation expenses

0.0%

Other real estate owned

9,042

Appraisal of

Appraisal adjustments

0.0%

-50.0%

(-6.1%)

collateral (1)

Liquidation expenses

0.0%

-14.7%

(-9.4%)

Loans and leases held for sale

1,396

Appraisal of

Agreement of sale

0.0%

collateral (1)

(1)

Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses.

Fair Value by Balance Sheet Grouping Instruments


					Fair Value Measurements
					At June 30, 2014
					Quoted Prices
					in Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
	Carrying		Estimated		Assets		Inputs		Inputs
(In thousands)	amount		fair value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	28,132	$	28,132	$	28,132	$	—	$	—
Investment securities available-for-sale		281,108		281,108		51		276,438		4,619
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		3,878		3,878		—		—		3,878
Loans held for sale		1,396		1,396		—		—		1,396
Loans, net		366,222		364,600		—		—		364,600
Accrued interest receivable		6,195		6,195		—		6,195		—
Financial Liabilities:
Demand deposits		62,927		62,927		—		62,927		—
NOW and money markets		217,191		217,191		—		217,191		—
Savings		19,717		19,717		—		19,717		—
Time deposits		227,082		225,211		—		225,211		—
Long-term borrowings		97,654		94,478		—		94,478		—
Subordinated debt		25,774		23,417		—		23,417		—
Accrued interest payable		1,923		1,923		—		1,923		—


					Fair Value Measurements
					At December 31, 2013
					Quoted Prices
					in Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
	Carrying		Estimated		Assets		Inputs		Inputs
(In thousands)	amount		fair value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	16,844	$	16,844	$	16,844	$	—	$	—
Investment securities available-for-sale		308,727		308,727		49		304,053		4,625
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		4,204		4,204		—		—		4,204
Loans held for sale		1,446		1,446		—		—		1,446
Loans, net		352,810		349,336		—		—		349,336
Accrued interest receivable		7,054		7,054		—		7,054		—
Financial Liabilities:
Demand deposits		60,473		60,473		—		60,473		—
NOW and money markets		210,053		210,053		—		210,053		—
Savings		17,593		17,593		—		17,593		—
Time deposits		240,845		239,102		—		239,102		—
Short-term borrowings		10,000		10,000		10,000		—		—
Long-term borrowings		97,881		94,896		—		94,896		—
Subordinated debt		25,774		26,000		—		26,000		—
Accrued interest payable		965		965		—		965		—

- 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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