Fair Value (Tables)

12 Months Ended

Dec. 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
December 31, 2015	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	4,283	$	—	$	4,283
Asset backed securities	—		1,269		—		1,269
U.S. Government agency obligations - government-sponsored enterprises	—		8,017		—		8,017
Collateralized mortgage obligations - government issued	—		44,543		—		44,543
Collateralized mortgage obligations - government-sponsored enterprises	—		82,436		—		82,436
Interest rate swaps	—		552		—		552
Liabilities:
Interest rate swaps	$	—	$	552	$	—	$	552



	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 Year Ended December 31, 2015
			Fair Value Measurements Using						Total Gains (Losses)
	Balance at December 31, 2015		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	17,763	$	—	$	11,518	$	6,245	$	—
Foreclosed properties	1,677		—		1,677		—		(36		)
Loan servicing rights	1,563		—		—		1,563		—



			As of and for the Year Ended December 31, 2014
			Fair Value Measurements Using						Total Gains (Losses)
	Balance at 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 Year Ended December 31,
	2015			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	341			—
Payments to priority lien holders of foreclosed properties	—			—
Proceeds from sale of foreclosed properties	(528		)	(255		)
Net gain on sale of foreclosed properties	207			14
Impairment valuation	(36		)	(4		)
Foreclosed properties at the end of the period	$	1,677		$	1,693

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, 2015
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	113,564	$	113,564	$	100,063	$	4,451	$	9,050
Securities available-for-sale	140,548		140,548		—		140,548		—
Securities held-to-maturity	37,282		37,558		—		37,558		—
Loans held for sale	2,702		2,702		—		2,702		—
Loans and lease receivables, net	1,414,649		1,445,773		—		11,518		1,434,255
Federal Home Loan Bank stock	2,843		2,843		—		—		2,843
Cash surrender value of life insurance	28,298		28,298		28,298		—		—
Accrued interest receivable	4,412		4,412		4,412		—		—
Interest rate swaps	552		552		—		552		—
Financial liabilities:
Deposits	$	1,577,231	$	1,577,838	$	1,009,762	$	568,076	$	—
Federal Home Loan Bank and other borrowings	35,226		35,839		—		35,839		—
Junior subordinated notes	10,315		6,939		—		—		6,939
Interest rate swaps	552		552		—		552		—
Accrued interest payable	1,766		1,766		1,766		—		—
Off balance sheet items:
Standby letters of credit	183		183		—		—		183
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 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	—		*		*		*		*

*Not meaningful