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FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2014
FAIR VALUE [Abstract]  
Summary of assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands):

     
Fair Value Measurement at March 31, 2014 Using
 
Financial Assets:
 
Fair Value
   
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
   
Significant
Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
Obligations of U.S. Government and U.S.
  Government sponsored enterprises
 
$
182,970
   
$
31,258
   
$
151,712
   
$
-
 
Mortgage-backed securities, residential
   
101,137
     
-
     
101,137
     
-
 
Collateralized mortgage obligations
   
789
     
-
     
789
     
-
 
Obligations of states and political subdivisions
   
38,345
     
-
     
38,345
     
-
 
Corporate bonds and notes
   
2,926
     
-
     
2,926
     
-
 
SBA loan pools
   
1,438
     
-
     
1,438
     
-
 
Trust Preferred securities
   
2,037
     
-
     
2,037
     
-
 
Corporate stocks
   
7,492
     
7,075
     
417
     
-
 
Total available for sale securities
 
$
337,134
   
$
38,333
   
$
298,801
   
$
-
 
                                 
Trading assets
 
$
413
   
$
413
   
$
-
   
$
-
 


     
Fair Value Measurement at December 31, 2013 Using
 
Financial Assets:
 
Fair Value
   
Quoted Prices in Active Markets for Identical Assets (Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
Obligations of U.S. Government and U.S.
  Government sponsored enterprises
 
$
188,106
   
$
31,262
   
$
156,844
   
$
-
 
Mortgage-backed securities, residential
   
104,356
     
-
     
104,356
     
-
 
Collateralized mortgage obligations
   
1,015
     
-
     
1,015
     
-
 
Obligations of states and political subdivisions
   
38,376
     
-
     
38,376
     
-
 
Corporate bonds and notes
   
2,946
     
-
     
2,946
     
-
 
SBA loan pools
   
1,488
     
-
     
1,488
     
-
 
Trust Preferred securities
   
2,034
     
-
     
2,034
     
-
 
Corporate stocks
   
7,695
     
7,279
     
416
     
-
 
Total available for sale securities
 
$
346,016
   
$
38,541
   
$
307,475
   
$
-
 
                                 
Trading assets
 
$
366
   
$
366
   
$
-
   
$
-
 

Summary of assets and liabilities measured at fair value on a non-recurring basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below (dollars in thousands):

     
Fair Value Measurement at March 31, 2014 Using
 
Financial Assets:
 
Fair Value
   
Quoted Prices in Active Markets for Identical Assets
(Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
Impaired Loans:
                               
Commercial and agricultural:
                               
  Commercial and industrial
 
$
255
   
$
-
   
$
-
   
$
255
 
Commercial mortgages:
                               
  Other
   
591
     
-
     
-
     
591
 
Consumer loans:
                               
  Home equity lines and loans
   
54
     
-
     
-
     
54
 
     Total Impaired Loans
 
$
900
   
$
-
   
$
-
   
$
900
 
                                 
Other real estate owned:
                               
Commercial mortgages:
                               
  Commercial mortgages other
 
$
176
   
$
-
   
$
-
   
$
176
 
Consumer loans:
                               
  Home equity lines and loans
   
65
     
-
     
-
     
65
 
     Total Other Real Estate Owned, net
 
$
241
   
$
-
   
$
-
   
$
241
 


     
Fair Value Measurement at December 31, 2013 Using
 
Financial Assets:
 
Fair Value
   
Quoted Prices in Active Markets for Identical Assets
(Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
Impaired Loans:
                               
Commercial and agricultural:
                               
  Commercial and industrial
 
$
460
   
$
-
   
$
-
   
$
460
 
Commercial mortgages:
                               
  Commercial mortgages other
   
485
     
-
     
-
     
485
 
Consumer loans:
                               
  Home equity lines and loans
   
54
     
-
     
-
     
54
 
     Total Impaired Loans
 
$
999
   
$
-
   
$
-
   
$
999
 
                                 
Other real estate owned:
                               
Commercial and agricultural:
                               
  Commercial and industrial
 
$
101
   
$
-
   
$
-
   
$
101
 
Commercial mortgages:
                               
  Commercial mortgages other
   
266
     
-
     
-
     
266
 
Residential mortgages
   
106
     
-
     
-
     
106
 
Consumer loans:
                               
  Home equity lines and loans
   
65
     
-
     
-
     
65
 
     Total Other Real Estate Owned, net
 
$
538
   
$
-
   
$
-
   
$
538
 

Nonrecurring fair value measurement, valuation techniques
The following table presents information related to Level 3 non-recurring fair value measurement at March 31, 2014 and December 31, 2013 (dollars in thousands):

Description
 
Fair Value
at March 31, 2014
   
Technique
   
Unobservable Inputs
 
Impaired loans
 
$
900
   
Third party appraisals
   
1
Management discount based on underlying collateral characteristics and market conditions
 
                       
Other real estate owned
 
$
241
   
Third party appraisals
   
1
Estimated holding  period
 
                 
2
Estimated closing costs
 

 
Description
 
Fair Value at December 31, 2013
   
Technique
   
Unobservable Inputs
 
Impaired loans
 
$
999
   
Third party appraisals
   
1
Management discount based on underlying collateral characteristics and market conditions
 
                       
Other real estate owned
 
$
538
   
Third party appraisals
   
1
Estimated holding  period
 
                 
2
Estimated closing costs
 
 
Carrying value and estimated fair value of financial instruments
The carrying amounts and estimated fair values of other financial instruments, at March 31, 2014 and December 31, 2013, are as follows (dollars in thousands):
 
   
Fair Value Measurements at March 31, 2014 Using
Financial assets:
 
Carrying Amount
   
Quoted Prices
 in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs (Level 3)
 
Estimated Fair Value (1)
Cash and due from financial  institutions
 
$
34,478
   
$
34,478
 
$
-
 
$
-
$
34,478
Interest-bearing deposits in other financial institutions
   
22,670
     
22,670
   
-
  
-
 
22,670
Trading assets
   
413
     
413
   
-
  
-
 
413
Securities available for sale
   
337,134
     
38,333
   
298,801
  
-
 
337,134
Securities held to maturity
   
6,126
     
-
   
6,532
  
-
 
6,532
FHLBNY and FRBNY stock
   
4,482
     
-
   
-
  
-
 
N/A
Loans, net
   
1,011,410
     
-
   
-
  
1,037,728
 
1,037,728
Loans held for sale
   
75
     
-
   
75
  
-
 
75
Accrued interest receivable
   
4,436
     
361
   
1,747
  
2,328
 
4,436
Financial liabilities:
                            
Deposits:
                            
Demand, savings, and insured
  money market accounts
 
$
1,056,021
   
$
1,056,021
 
$
-
 
$
-
$
1,056,021
Time deposits
   
235,869
     
-
   
236,679
  
-
 
236,679
Securities sold under agreements to repurchase
   
30,646
     
-
   
31,773
  
-
 
31,773
FHLBNY term advances
   
25,189
     
-
   
26,142
  
-
 
26,142
Accrued interest payable
   
290
     
13
   
131
  
146
 
290
 
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
 
 
  
Fair Value Measurements at December 31, 2013 Using
Financial assets:
 
Carrying Amount
  
Quoted Prices
in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs (Level 3)
 
Estimated Fair Value (1)
Cash and due from financial institutions
 
$
31,600
  
$
31,600
 
$
-
 
$
-
$
31,600
Interest-bearing deposits in other financial institutions
  
20,009
   
20,009
  
-
  
-
 
20,009
Trading assets
  
366
   366  
-
  
-
 
366
Securities available for sale
  
346,016
   
38,541
  
307,475
  
-
 
346,016
Securities held to maturity
  
6,495
   
-
  
6,930
  
-
 
6,930
FHLBNY and FRBNY stock
  
4,482
   
-
  
-
  
-
 
N/A
Loans, net
  
983,090
   
-
  
-
  
1,008,826
 
1,008,826
Loans held for sale
  
695
   
-
  
695
  
-
 
695
Accrued interest receivable
  
4,166
   
145
  
1,468
  
2,553
 
4,166
Financial liabilities:
               
Deposits:
               
Demand, savings, and insured
money market accounts
 
$
1,021,764
  
$
1,021,764
 
$
-
 
$
-
$
1,021,764
Time deposits
  
244,492
   
-
  
245,482
  
-
 
245,482
Securities sold under agreements to repurchase
  
32,701
   
-
  
33,636
  
-
 
33,636
FHLBNY term advances
  
25,243
   
-
  
26,064
  
-
 
26,064
Accrued interest payable
  
336
   
15
  
170
  
151
 
336
 
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.