Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2014

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
March 31, 2014	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Municipal obligations	$	—	$	15,768	$	—	$	15,768
Asset backed securities	—		1,516		—		1,516
U.S. Government agency obligations - government-sponsored enterprises	—		11,600		—		11,600
Collateralized mortgage obligations - government issued	—		104,868		—		104,868
Collateralized mortgage obligations - government-sponsored enterprises	—		51,795		—		51,795
Interest rate swaps	—		665		—		665
Liabilities:
Interest rate swaps	$	—	$	665	$	—	$	665



	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, 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 Three Months Ended March 31, 2014
	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	March 31, 2014		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	12,461	$	—	$	12,408	$	53	$	—
Foreclosed properties	333		—		333		—		—



			As of and for the Year Ended December 31, 2013
	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	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		)

Foreclosed Properties

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



	As of and for the Three Months Ended March 31, 2014		As of and for the Year Ended December 31, 2013
	(In Thousands)
Foreclosed properties at the beginning of the period	$	333	$	1,574
Loans transferred to foreclosed properties, at lower of cost or fair value	—		1,381
Proceeds from sale of foreclosed properties	—		(2,739		)
Net gain on sale of foreclosed properties	—		176
Impairment valuation	—		(59		)
Foreclosed properties at the end of the period	$	333	$	333

Fair Value, by Balance Sheet Grouping

Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below:



	March 31, 2014
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	76,396	$	76,404	$	55,866	$	5,988	$	14,550
Securities available-for-sale	185,547		185,547		—		185,547		—
Loans and lease receivables, net	971,218		964,640		—		12,408		952,232
Federal Home Loan Bank stock	1,255		1,255		—		—		1,255
Cash surrender value of life insurance	23,348		23,348		23,348		—		—
Accrued interest receivable	3,250		3,250		3,250		—		—
Interest rate swaps	665		665		—		665		—
Financial liabilities:
Deposits	$	1,136,700	$	1,139,112	$	681,370	$	457,742	$	—
Federal Home Loan Bank and other borrowings	7,936		7,800		—		7,800		—
Junior subordinated notes	10,315		7,097		—		—		7,097
Interest rate swaps	665		665		—		665		—
Accrued interest payable	1,551		1,551		1,551		—		—
Off balance sheet items:
Standby letters of credit	160		160		—		—		160
Commitments to extend credit	—		*		*		*		*

*Not meaningful



	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	—		*		*		*		*

- 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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