Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2015

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



	Fair Value Measurements Using
June 30, 2015	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	3,247	$	—	$	3,247
Asset backed securities	—		1,445		—		1,445
U.S. Government agency obligations - government-sponsored enterprises	—		8,023		—		8,023
Collateralized mortgage obligations - government issued	—		55,982		—		55,982
Collateralized mortgage obligations - government-sponsored enterprises	—		77,645		—		77,645
Interest rate swaps	—		519		—		519
Liabilities:
Interest rate swaps	$	—	$	519	$	—	$	519



	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

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 Six Months Ended June 30, 2015
	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	June 30, 2015		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	8,795	$	—	$	7,573	$	1,222	$	—
Foreclosed properties	1,854		—		1,854		—		(1		)
Loan servicing rights	1,168		—		—		1,168		—



			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		—

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



	As of and for the Six Months Ended June 30, 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
Loans transferred to foreclosed properties, at lower of cost or fair value	289			—
Proceeds from sale of foreclosed properties	(143		)	(255		)
Net gain on sale of foreclosed properties	16			14
Impairment valuation	(1		)	(4		)
Foreclosed properties at the end of the period	$	1,854		$	1,693

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



	June 30, 2015
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	88,848	$	88,856	$	73,693	$	6,663	$	8,500
Securities available-for-sale	146,342		146,342		—		146,342		—
Securities held-to-maturity	39,428		39,419		—		39,419		—
Loans held for sale	1,274		1,274		—		1,274		—
Loans and lease receivables, net	1,334,091		1,365,475		—		7,573		1,357,902
Federal Home Loan Bank and Federal Reserve Bank stock	2,891		2,891		—		—		2,891
Cash surrender value of life insurance	27,785		27,785		27,785		—		—
Accrued interest receivable	4,159		4,159		4,159		—		—
Interest rate swaps	519		519		—		519		—
Financial liabilities:
Deposits	$	1,471,068	$	1,473,706	$	916,622	$	557,084	$	—
Federal Home Loan Bank and other borrowings	47,401		45,477		—		45,477		—
Junior subordinated notes	10,315		7,084		—		—		7,084
Interest rate swaps	519		519		—		519		—
Accrued interest payable	1,618		1,618		1,618		—		—
Off-balance-sheet items:
Standby letters of credit	124		124		—		—		124
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	—		*		*		*		*