Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2016	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Securities available-for-sale:
Municipal obligations	$	—	$	6,170	$	—	$	6,170
Asset backed securities	—		1,173		—		1,173
U.S. Government agency obligations - government-sponsored enterprises	—		7,341		—		7,341
Collateralized mortgage obligations - government issued	—		35,768		—		35,768
Collateralized mortgage obligations - government-sponsored enterprises	—		87,240		—		87,240
Interest rate swaps	—		1,182		—		1,182
Liabilities:
Interest rate swaps	$	—	$	1,182	$	—	$	1,182



	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)
	June 30, 2016		Level 1		Level 2		Level 3		Total Gains (Losses)
	(In Thousands)
Impaired loans	$	13,697	$	—	$	10,782	$	2,915	$	—
Foreclosed properties	1,548		—		1,548		—		(23		)
Loan servicing rights	2,025		—		—		2,025		—



	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 Six Months Ended June 30, 2016			As of and for Year Ended December 31, 2015
	(In Thousands)
Foreclosed properties at the beginning of the period	$	1,677		$	1,693
Loans transferred to foreclosed properties, at lower of cost or fair value	—			341
Proceeds from sale of foreclosed properties	(36		)	(528		)
Net (loss) gain on sale of foreclosed properties	(70		)	207
Impairment valuation	(23		)	(36		)
Foreclosed properties at the end of the period	$	1,548		$	1,677

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



	June 30, 2016
	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	131,611	$	131,620	$	120,066	$	4,704	$	6,850
Securities available-for-sale	137,692		137,692		—		137,692		—
Securities held-to-maturity	36,167		37,009		—		37,009		—
Loans held for sale	5,548		5,548		—		5,548		—
Loans and lease receivables, net	1,433,661		1,474,444		—		11,765		1,462,679
Federal Home Loan Bank and Federal Reserve Bank stock	2,163		2,163		—		—		2,163
Cash surrender value of life insurance	28,784		28,784		28,784		—		—
Accrued interest receivable	4,599		4,599		4,599		—		—
Interest rate swaps	1,182		1,182		—		1,182		—
Financial liabilities:
Deposits	$	1,607,944	$	1,615,888	$	1,066,655	$	549,233	$	—
Federal Home Loan Bank and other borrowings	33,570		34,639		—		34,639		—
Junior subordinated notes	9,997		6,607		—		—		6,607
Interest rate swaps	1,182		1,182		—		1,182		—
Accrued interest payable	1,760		1,760		1,760		—		—
Off-balance-sheet items:
Standby letters of credit	48		48		—		—		48



	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