Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.



(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2015 (unaudited):
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	152,142	$	—	$	149,472	$	2,670
Debentures of government-sponsored agencies	$	26,174	$	—	$	26,174	$	—
Privately-issued collateralized mortgage obligations	$	5,493	$	—	$	5,493	$	—
Obligations of state and political subdivisions	$	15,850	$	—	$	15,850	$	—
Corporate bonds	$	5,021	$	—	5,021		$	—
Derivative financial assets (interest rate contracts)	$	—	$	—	$	—	$	—
Derivative financial liabilities (interest rate contracts)	$	2,481	$	—	$	2,481	$	—
At December 31, 2014:
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	158,119	$	—	$	155,421	$	2,698
Debentures of government-sponsored agencies	$	14,557	$	—	$	14,557	$	—
Privately-issued collateralized mortgage obligations	$	7,294	$	—	$	7,294	$	—
Obligations of state and political subdivisions	$	15,880	$	—	$	15,771	$	—
Corporate bonds	$	4,998	$	—	$	5,437	$	—
Derivative financial assets (interest rate contracts)	$	61	$	—	$	61	$	—
Derivative financial liabilities (interest rate contracts)	$	1,996	$	—	$	1,996	$	—

Fair Value Measurements, Nonrecurring

The following table presents the carrying value of financial instruments that were measured at fair value on a non-recurring basis and that were still held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014.



(in thousands) Description of Financial Instruments	Carrying Value¹		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3) ¹
At March 31, 2015 (unaudited):
Impaired loans carried at fair value:
Installment and other consumer	13		—		—		13
Total	$	13	$	—	$	—	$	13

At December 31, 2014:
Impaired loans carried at fair value:
Installment and other consumer	77		—		—		77
Total	$	77	$	—	$	—	$	77

¹ Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral, net of specific valuation allowances of $10 thousand and $26 thousand at March 31, 2015 and December 31, 2014, respectively. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero.

Fair Value, by Balance Sheet Grouping

The table below is a summary of fair value estimates for financial instruments as of March 31, 2015 and December 31, 2014, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. We have excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-1A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies.



	March 31, 2015					December 31, 2014
(in thousands; 2015 unaudited)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets
Cash and cash equivalents	$	103,164	$	103,164	Level 1	$	41,367	$	41,367	Level 1
Investment securities held-to-maturity	107,476		109,785		Level 2	116,437		118,643		Level 2
Loans, net	1,331,328		1,341,118		Level 3	1,348,252		1,361,244		Level 3
Interest receivable	5,453		5,453		Level 2	5,909		5,909		Level 2
Financial liabilities
Deposits	1,585,120		1,585,907		Level 2	1,551,619		1,552,446		Level 2
Federal Home Loan Bank borrowings	15,000		15,514		Level 2	15,000		15,484		Level 2
Subordinated debentures	5,238		5,274		Level 3	5,185		5,290		Level 3
Interest payable	208		208		Level 2	213		213		Level 2

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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