Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	578	$	—	$	578
Asset backed securities	$	—	$	1,494	$	—	$	1,494
U.S. Government agency obligations - government-sponsored enterprises	—		8,047		—		8,047
Collateralized mortgage obligations - government issued	—		62,669		—		62,669
Collateralized mortgage obligations - government-sponsored enterprises	—		70,163		—		70,163
Interest rate swaps	—		956		—		956
Liabilities:							—
Interest rate swaps	$	—	$	956	$	—	$	956



	Fair Value Measurements Using
December 31, 2014	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	578	$	—	$	578
Asset backed securities	—		1,510		—		1,510
U.S. Government agency obligations - government-sponsored enterprises	—		8,965		—		8,965
Collateralized mortgage obligations - government issued	—		68,874		—		68,874
Collateralized mortgage obligations - government-sponsored enterprises	—		64,771		—		64,771
Interest rate swaps	—		575		—		575
Liabilities:
Interest rate swaps	$	—	$	575	$	—	$	575

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, 2015
	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	March 31, 2015		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	8,363	$	—	$	6,739	$	1,624	$	—
Foreclosed properties	1,566		—		1,566		—		—
Loan servicing rights	1,027		—		—		1,027		—



			As of and for the Year Ended December 31, 2014
	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	December 31, 2014		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	8,565	$	—	$	7,025	$	1,540	$	—
Foreclosed properties	1,693		—		1,693		—		(4		)
Loan servicing rights	943		—		—		943		—

Foreclosed Properties

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



	As of and for the Three Months Ended March 31, 2015			As of and for the Year Ended December 31, 2014
	(In Thousands)
Foreclosed properties at the beginning of the period	$	1,693		$	333
Foreclosed properties acquired in acquisition, at fair value	—			1,605
Proceeds from sale of foreclosed properties	(143		)	(255		)
Net gain on sale of foreclosed properties	16			14
Impairment valuation	—			(4		)
Foreclosed properties at the end of the period	$	1,566		$	1,693

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, 2015
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	141,887	$	141,887	$	120,127	$	6,410	$	15,350
Securities available-for-sale	142,951		142,951		—		142,951		—
Securities held-to-maturity	40,599		41,147		—		41,147		—
Loans held for sale	2,396		2,396		—		2,396		—
Loans and lease receivables, net	1,279,846		1,310,067		—		6,739		1,303,328
Federal Home Loan Bank and Federal Reserve Bank stock	2,798		2,798		—		—		2,798
Cash surrender value of life insurance	27,548		27,548		27,548		—		—
Accrued interest receivable	4,146		4,146		4,146		—		—
Interest rate swaps	956		956		—		956		—
Financial liabilities:
Deposits	$	1,485,801	$	1,489,399	$	939,576	$	549,823	$	—
Federal Home Loan Bank and other borrowings	34,448		35,080		—		35,080		—
Junior subordinated notes	10,315		7,086		—		—		7,086
Interest rate swaps	956		956		—		956		—
Accrued interest payable	1,744		1,744		1,744		—		—
Off-balance-sheet items:
Standby letters of credit	128		128		—		—		128
Commitments to extend credit	—		*		*		*		*

*Not meaningful



	December 31, 2014
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	103,237	$	103,227	$	85,937	$	6,890	$	10,400
Securities available-for-sale	144,698		144,698		—		144,698		—
Securities held-to-maturity	41,563		41,694		—		41,694		—
Loans held for sale	1,340		1,340		—		1,340		—
Loans and lease receivables, net	1,265,098		1,285,162		—		7,025		1,278,137
Federal Home Loan Bank and Federal Reserve Bank stock	2,340		2,340		—		—		2,340
Cash surrender value of life insurance	27,314		27,314		27,314		—		—
Accrued interest receivable	3,932		3,932		3,932		—		—
Interest rate swaps	575		575		—		575		—
Financial liabilities:
Deposits	$	1,438,268	$	1,440,248	$	884,292	$	555,956	$	—
Federal Home Loan Bank and other borrowings	33,994		34,590		—		34,590		—
Junior subordinated notes	10,315		7,101		—		—		7,101
Interest rate swaps	575		575		—		575		—
Accrued interest payable	1,574		1,574		1,574		—		—
Off-balance-sheet items:
Standby letters of credit	192		192		—		—		192
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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