Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016:
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	180,306	$	—	$	179,633	$	673
Debentures of government-sponsored agencies	$	87,623	$	—	$	87,623	$	—
Privately-issued collateralized mortgage obligations	$	3,971	$	—	$	3,971	$	—
Obligations of state and political subdivisions	$	59,373	$	—	$	59,373	$	—
Corporate bonds	$	4,961	$	—	4,961		$	—
Derivative financial liabilities (interest rate contracts)	$	2,531	$	—	$	2,531	$	—
At December 31, 2015:
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	190,093	$	—	$	188,381	$	1,712
Debentures of government-sponsored agencies	$	160,892	$	—	$	160,892	$	—
Privately-issued collateralized mortgage obligations	$	4,150	$	—	$	4,150	$	—
Obligations of state and political subdivisions	$	57,673	$	—	$	57,673	$	—
Corporate bonds	$	4,979	$	—	$	4,979	$	—
Derivative financial assets (interest rate contracts)	$	3	$	—	$	3	$	—
Derivative financial liabilities (interest rate contracts)	$	1,658	$	—	$	1,658	$	—

Fair Value Measurements, Nonrecurring

The following table presents the carrying value of assets and liabilities measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of March 31, 2016 and December 31, 2015.



(in thousands)	Carrying Value¹		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2016:
Other real estate	$	421	$	—	$	—	$	421
At December 31, 2015:
Other real estate	$	421	$	—	$	—	$	421

Fair Value, by Balance Sheet Grouping

The table below is a summary of fair value estimates for financial instruments as of March 31, 2016 and December 31, 2015, 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, 2016					December 31, 2015
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets
Cash and cash equivalents	$	39,770	$	39,770	Level 1	$	26,343	$	26,343	Level 1
Investment securities held-to-maturity	63,246		64,848		Level 2	69,637		71,054		Level 2
Loans, net	1,426,811		1,460,637		Level 3	1,436,229		1,470,380		Level 3
Interest receivable	5,919		5,919		Level 2	6,643		6,643		Level 2
Financial liabilities
Deposits	1,681,346		1,681,787		Level 2	1,728,226		1,728,717		Level 2
Federal Home Loan Bank and other borrowings	19,350		19,682		Level 2	67,000		67,279		Level 2
Subordinated debentures	5,445		4,969		Level 3	5,395		5,132		Level 3
Interest payable	197		197		Level 2	187		187		Level 2