Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements, Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below:



	Fair Value Measurements Using
December 31, 2013	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Municipal obligations	$	—	$	15,489	$	—	$	15,489
Asset backed securities	—		1,494		—		1,494
U.S. Government agency obligations - government-sponsored enterprises	—		16,244		—		16,244
Collateralized mortgage obligations - government issued	—		111,969		—		111,969
Collateralized mortgage obligations - government-sponsored enterprises	—		34,922		—		34,922
Interest rate swaps	—		946		—		946
Liabilities:
Interest rate swaps	$	—	$	946	$	—	$	946



	Fair Value Measurements Using
December 31, 2012	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Municipal obligations	$	—	$	12,033	$	—	$	12,033
U.S. Government agency obligations - government-sponsored enterprises	—		19,721		—		19,721
Collateralized mortgage obligations - government issued	—		151,645		—		151,645
Collateralized mortgage obligations - government-sponsored enterprises	—		17,197		—		17,197
Interest rate swaps	—		3,069		—		3,069
Liabilities:
Interest rate swaps	$	—	$	3,069	$	—	$	3,069

Fair Value Measurements, Nonrecurring Basis

Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below:



			As of and for the Year Ended December 31, 2013
			Fair Value Measurements Using						Total Gains (Losses)
	Balance at December 31, 2013		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	13,719	$	—	$	13,666	$	53	$	—
Foreclosed properties	333		—		333		—		(59		)



			As of and for the Year Ended December 31, 2012
			Fair Value Measurements Using						Total Gains (Losses)
	Balance at December 31, 2012		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	8,544	$	—	$	6,770	$	1,774	$	—
Foreclosed properties	1,574		529		982		63		(600		)

Foreclosed Properties

The activity of the Corporation’s foreclosed properties is summarized as follows:



	As of and for the Year Ended December 31,
	2013			2012
	(In Thousands)
Foreclosed properties at the beginning of the period	$	1,574		$	2,236
Loans transferred to foreclosed properties, at lower of cost or fair value	1,381			1,511
Payments to priority lien holders of foreclosed properties	—			367
Proceeds from sale of foreclosed properties	(2,739		)	(1,955		)
Net gain on sale of foreclosed properties	176			15
Impairment valuation	(59		)	(600		)
Foreclosed properties at the end of the period	$	333		$	1,574

Fair Value, by Balance Sheet Grouping

The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below:



	December 31, 2013
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	81,286	$	81,295	$	66,266	$	4,029	$	11,000
Securities available-for-sale	180,118		180,118		—		180,118		—
Loans and lease receivables, net	967,050		963,937		—		13,666		950,271
Federal Home Loan Bank stock	1,255		1,255		—		—		1,255
Cash surrender value of life insurance	23,142		23,142		23,142		—		—
Accrued interest receivable	3,231		3,231		3,231		—		—
Interest rate swaps	946		946		—		946		—
Financial liabilities:
Deposits	$	1,129,855	$	1,131,002	$	684,344	$	446,658	$	—
Federal Home Loan Bank and other borrowings	11,936		11,979		—		11,979		—
Junior subordinated notes	10,315		7,084		—		—		7,084
Interest rate swaps	946		946		—		946		—
Accrued interest payable	1,052		1,052		1,052		—		—
Off balance sheet items:
Standby letters of credit	219		219		—		—		219
Commitments to extend credit	—		*		*		*		*

*Not meaningful



	December 31, 2012
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	85,586	$	85,595	$	74,940	$	5,155	$	5,500
Securities available-for-sale	200,596		200,596		—		200,596		—
Loans and lease receivables, net	896,560		905,501		—		6,770		898,731
Federal Home Loan Bank stock	1,144		1,144		—		—		1,144
Cash surrender value of life insurance	22,272		22,272		22,272		—		—
Accrued interest receivable	3,217		3,217		3,217		—		—
Interest rate swaps	3,069		3,069		—		3,069		—
Financial liabilities:
Deposits	$	1,092,254	$	1,102,316	$	649,346	$	452,970	$	—
Federal Home Loan Bank and other borrowings	12,405		13,170		—		13,170		—
Junior subordinated notes	10,315		7,046		—		—		7,046
Interest rate swaps	3,069		3,069		—		3,069		—
Accrued interest payable	1,711		1,711		1,711		—		—
Off balance sheet items:
Standby letters of credit	197		197		—		—		197
Commitments to extend credit	—		*		*		*		*

*Not meaningful

- 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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