Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Investment securities available for sale
U.S. government agencies	$	—	$	2,150	$	—	$	2,150
Mortgage-backed securities-residential		—		15,850		—		15,850
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		126,522		—		126,522
Corporate bonds		—		1,713		—		1,713
Municipal bonds		—		7,541		—		7,541
Other securities		—		—		1,706		1,706
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	153,776	$	1,706	$	155,508
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	408	$	—	$	408


	Fair Value Measurements Using:
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
As of December 31, 2016	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Investment securities available for sale
U.S. government agencies	$	—	$	966	$	—	$	966
Mortgage-backed securities-residential		—		7,038		—		7,038
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		—		145,559		—		145,559
Non-agency		—		4,035		—		4,035
Corporate bonds		—		1,701		—		1,701
Municipal bonds		—		8,708		—		8,708
Other securities		—		—		1,821		1,821
Common stocks		26		—		—		26
Total investment securities available for sale	$	26	$	168,007	$	1,821	$	169,854
Liabilities:
Derivative instruments
Interest rate swaps	$	—	$	494	$	—	$	494

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


(In thousands)	Other securities
Investment Securities Available for Sale	2017		2016
Beginning balance July 1,	$	1,706	$	1,877
Total gains/(losses) - (realized/unrealized):
Included in earnings-net gains on sale and OTTI		32		10
Included in other comprehensive income		—		—
Purchases		—		—
Sales and calls		(32)		(54)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	1,706	$	1,833


(In thousands)	Other securities
Investment Securities Available for Sale	2017		2016
Beginning balance January 1,	$	1,821	$	2,495
Total gains/(losses) - (realized/unrealized):
Included in earnings-net gains on sale and OTTI		224		945
Included in other comprehensive income		—		(445)
Purchases		—		104
Sales and calls		(339)		(1,266)
Transfers in and/or out of Level 3		—		—
Ending balance September 30,	$	1,706	$	1,833

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 September 30, 2017

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

1,760

Other real estate owned

—

864

Fair Value Measurements Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

As of December 31, 2016

Assets

Inputs

(In thousands)

Level 1

Level 2

Level 3

Fair Value

Assets

Impaired loans and leases

—

6,102

Other real estate owned

—

1,471

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


	Qualitative Information about Level 3 Fair Value Measurements
As of September 30, 2017			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	1,760	Appraisal of	Appraisal adjustments	0.0%	-	-22.0%	(-16.2%)
			collateral (1)	Liquidation expenses	0.0%	-	-8.2%	(-1.8%)

Other real estate owned		864	Appraisal of	Appraisal adjustments	0.0%	-	-43.8%	(-25.0%)
			collateral (1)	Liquidation expenses			-5.0%	(-5.0%)


	Qualitative Information about Level 3 Fair Value Measurements
As of December 31, 2016			Valuation		Range
(In thousands)	Fair Value		Techniques	Unobservable Input	(Weighted Average)
Impaired loans and leases	$	6,102	Appraisal of	Appraisal adjustments	0.0%	-	-27.4%	(-12.3%)
			collateral (1)	Liquidation expenses	0.0%	-	-12.8%	(-5.2%)

Other real estate owned		1,471	Appraisal of	Appraisal adjustments	0.0%	-	-61.5%	(-32.5%)
			collateral (1)	Liquidation expenses	0.0%	-	-5.6%	(-5.6%)

(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 September 30, 2017
					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	$	25,108	$	25,108	$	25,108	$	—	$	—
Investment securities available for sale		155,508		155,508		26		153,776		1,706
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		2,036		2,036		—		—		2,036
Loans, net		584,442		574,105		—		—		574,105
Accrued interest receivable		2,975		2,975		—		2,975		—
Financial Liabilities:
Demand deposits		97,076		97,076		—		97,076		—
NOW and money markets		196,999		196,999		—		196,999		—
Savings		81,814		81,814		—		81,814		—
Certificates of deposit and brokered funds		251,177		251,078		—		251,078		—
Short-term borrowings		15,000		15,000		15,000		—		—
Long-term borrowings		60,000		60,066		—		60,066		—
Subordinated debt		25,774		25,836		—		25,836		—
Accrued interest payable		2,378		2,378		—		2,378		—
Derivative Instruments (Liability):
Interest rate swaps		408		408		—		408		—


					Fair Value Measurements
					At December 31, 2016
					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	$	21,230	$	21,230	$	21,230	$	—	$	—
Investment securities available for sale		169,854		169,854		26		168,007		1,821
Other investment		2,250		2,250		—		—		2,250
Federal Home Loan Bank stock		3,216		3,216		—		—		3,216
Loans, net		591,589		578,732		—		—		578,732
Accrued interest receivable		3,968		3,968		—		3,968		—
Financial Liabilities:
Demand deposits		97,859		97,859		—		97,859		—
NOW and money markets		213,140		213,140		—		213,140		—
Savings		85,170		85,170		—		85,170		—
Certificates of deposit and brokered funds		233,377		233,288		—		233,288		—
Short-term borrowings		19,000		19,000		19,000		—		—
Long-term borrowings		85,000		84,617		—		84,617		—
Subordinated debt		25,774		26,538		—		26,538		—
Accrued interest payable		711		711		—		711		—
Derivative Instruments (Liability):
Interest rate swaps		494		494		—		494		—