Fair Value Disclosures (Tables)

9 Months Ended

Sep. 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
September 30, 2015	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	4,154	$	—	$	4,154
Asset backed securities	—		1,325		—		1,325
U.S. Government agency obligations - government-sponsored enterprises	—		8,068		—		8,068
Collateralized mortgage obligations - government issued	—		49,793		—		49,793
Collateralized mortgage obligations - government-sponsored enterprises	—		80,389		—		80,389
Interest rate swaps	—		1,040		—		1,040
Liabilities:
Interest rate swaps	$	—	$	1,040	$	—	$	1,040



	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:



	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	September 30, 2015		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	8,388	$	—	$	5,549	$	2,839	$	—
Foreclosed properties	1,632		—		1,632		—		(29		)
Loan servicing rights	1,297		—		—		1,297		—



	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 Nine Months Ended September 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	(528		)	(255		)
Net gain on sale of foreclosed properties	207			14
Impairment valuation	(29		)	(4		)
Foreclosed properties at the end of the period	$	1,632		$	1,693

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



	September 30, 2015
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	122,671	$	122,676	$	110,351	$	5,925	$	6,400
Securities available-for-sale	143,729		143,729		—		143,729		—
Securities held-to-maturity	38,364		38,744		—		38,744		—
Loans held for sale	2,910		2,910		—		2,910		—
Loans and lease receivables, net	1,361,813		1,393,771		—		5,549		1,388,222
Federal Home Loan Bank and Federal Reserve Bank stock	2,843		2,843		—		—		2,843
Cash surrender value of life insurance	28,029		28,029		28,029		—		—
Accrued interest receivable	4,347		4,347		4,347		—		—
Interest rate swaps	1,040		1,040		—		1,040		—
Financial liabilities:
Deposits	$	1,539,370	$	1,541,923	$	969,501	$	572,422	$	—
Federal Home Loan Bank and other borrowings	36,354		37,115		—		37,115		—
Junior subordinated notes	10,315		7,060		—		—		7,060
Interest rate swaps	1,040		1,040		—		1,040		—
Accrued interest payable	1,900		1,900		1,900		—		—
Off-balance-sheet items:
Standby letters of credit	124		124		—		—		124

*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