Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	5,194	$	—	$	5,194
Asset backed securities	—		1,219		—		1,219
U.S. Government agency obligations - government-sponsored enterprises	—		8,067		—		8,067
Collateralized mortgage obligations - government issued	—		40,381		—		40,381
Collateralized mortgage obligations - government-sponsored enterprises	—		85,962		—		85,962
Interest rate swaps	—		1,139		—		1,139
Liabilities:
Interest rate swaps	$	—	$	1,139	$	—	$	1,139



	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

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)
	March 31, 2016		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	14,314	$	—	$	12,601	$	1,713	$	—
Foreclosed properties	1,677		—		1,677		—		—
Loan servicing rights	1,692		—		—		1,692		—



	Balance at		Fair Value Measurements Using						Total Gains (Losses)
	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		—

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



	As of and for the Three Months Ended March 31, 2016		As of and for the Year Ended December 31, 2015
	(In Thousands)
Foreclosed properties at the beginning of the period	$	1,677	$	1,693
Foreclosed properties acquired in acquisition, at fair value	—		—
Loans transferred to foreclosed properties, at lower of cost or fair value	—		341
Proceeds from sale of foreclosed properties	—		(528		)
Net gain on sale of foreclosed properties	—		207
Impairment valuation	—		(36		)
Foreclosed properties at the end of the period	$	1,677	$	1,677

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



	March 31, 2016
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	104,854	$	104,858	$	89,259	$	4,699	$	10,900
Securities available-for-sale	140,823		140,823		—		140,823		—
Securities held-to-maturity	36,485		37,213		—		37,213		—
Loans held for sale	1,697		1,697		—		1,697		—
Loans and lease receivables, net	1,431,902		1,460,700		—		12,601		1,448,099
Federal Home Loan Bank and Federal Reserve Bank stock	2,734		2,734		—		—		2,734
Cash surrender value of life insurance	28,541		28,541		28,541		—		—
Accrued interest receivable	4,789		4,789		4,789		—		—
Interest rate swaps	1,139		1,139		—		1,139		—
Financial liabilities:
Deposits	$	1,581,588	$	1,586,447	$	1,037,349	$	549,098	$	—
Federal Home Loan Bank and other borrowings	35,011		35,841		—		35,841		—
Junior subordinated notes	9,993		6,613		—		—		6,613
Interest rate swaps	1,139		1,139		—		1,139		—
Accrued interest payable	1,937		1,937		1,937		—		—
Off-balance-sheet items:
Standby letters of credit	65		65		—		—		65



	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 and Federal Reserve 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	34,740		35,353		—		35,353		—
Junior subordinated notes	9,990		6,614		—		—		6,614
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