Fair Value Measurements and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

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

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and December 31, 2012 are as follows:

	December 31, 2013		Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis:
U.S. treasury and agency securities	$	13,519	$	13,519	$	—	$	—
Federal agency obligations		19,941		—		19,941		—
Residential mortgage pass-through     securities		48,874		—		48,874		—
Commercial mortgage pass-     through securities		6,991		—		6,991		—
Obligations of U.S. states and     political subdivision		31,460		—		31,460		—
Trust preferred securities		19,403		—		19,403		—
Corporate bonds and notes		158,630		—		158,630		—
Asset-backed securities		15,979		—		15,979		—
Certificates of deposit		2,262		—		2,262		—
Equity securities		287		287		—		—
Other securities		5,724		5,724		—		—
Securities available-for-sale	$	323,070	$	19,530	$	303,540	$	—

	December 31, 2012		Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis:
U.S. treasury and agency securities	$	11,909	$	11,909	$	—	$	—
Federal agency obligations		20,535		—		20,535		—
Residential mortgage pass-     through securities		53,784		—		53,784		—
Commercial mortgage pass-     through securities		9,969		—		9,969		—
Obligations of U.S. states and     political subdivision		107,714		469		107,245		—
Trust preferred securities		21,249		—		21,213		36
Corporate bonds and notes		237,405		—		237,405		—
Collateralized mortgage     obligations		2,120		—		2,120		—
Asset-backed securities		19,742		—		19,742		—
Certificates of deposit		2,865		—		2,865		—
Equity securities		325		325		—		—
Other securities		9,198		9,198		—		—
Securities available-for-sale	$	496,815	$	21,901	$	474,878	$	36

Schedule of Changes in Investment Securities Available-for-Sale

The following table presents the changes in securities available-for-sale with significant unobservable inputs (Level 3) for the year ended December 31, 2013 and December 31, 2012:

	2013		2012
	(Dollars in Thousands)
Beginning balance, January 1,	$	36	$	2,115
Transfers out of Level 3		(260)		(2,120)
Principal interest deferrals		58		116
Principal paydown		—		(272)
Total net losses included in net income		(628)		(68)
Total net unrealized gains		794		265
Ending balance, December 31,	$	—	$	36

Schedule Of Fair Value, Assets And Liabilities Measured On Nonrecurring Basis, Valuation Techniques

For assets measured at fair value on a non-recurring basis, the fair value measurements at December 31, 2013 and 2012 are as follows:

Impaired Loans	Valuation Techniques	Range of Unobservable Inputs
Residential	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 0-25%
Commercial	Discounted cash flow model	Discount rate from 0% to 6%
Commercial real estate	Appraisals of collateral value	Market capitalization rates between 8% to 12%. Market rental rates for similar properties
Construction	Appraisals of collateral value	Adjustment for age comparable sales. Generally a decline of 5% to no change
Other Real Estate Owned
Residential	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 0-25% and estimated selling costs of 6-8%
Commercial	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 15% to no change and estimated selling costs of 6-8%

Schedule of Assets at Fair Value on a Non-recurring Basis

For assets measured at fair value on a non-recurring basis, the unobservable inputs used to derive fair value measurements at December 31, 2013 and December 31, 2012 were as follows:

	December 31, 2013		Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical  Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets Measured at Fair Value     on a Non-Recurring Basis:
Impaired loans	$	4,601	$	—	$	—	$	4,601
Other real estate owned		220		—		—		220

	December 31, 2012		Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical  Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets Measured at Fair Value     on a Non-Recurring Basis:
Impaired loans	$	4,790	$	—	$	—	$	4,790
Other real estate owned		1,300		—		—		1,300

Schedule of Fair Value Hierarchy

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2013 and December 31, 2012.

					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
December 31, 2013
Financial assets
Cash and due from banks	$	82,692	$	82,692	$	82,692	$	—	$	—
Investment securities available-for-sale		323,070		323,070		19,530		303,540		—
Investment securities held-to-maturity		215,286		210,958		27,037		164,940		18,981
Restricted investment in bank stocks		8,986		8,986		—		8,986		—
Net loans		950,610		948,606		—		—		948,606
Accrued interest receivable		6,802		6,802		—		4,136		2,666
Financial liabilities
Non interest-bearing deposits		227,370		227,370		—		227,370		—
Interest-bearing deposits		1,114,635		1,115,781		—		1,115,781		—
Long-term borrowings		146,000		157,440		—		157,440		—
Subordinated debentures		5,155		5,143		—		5,143		—
Accrued interest payable		963		963		—		963		—
December 31, 2012
Financial assets
Cash and due from banks	$	104,134	$	104,134	$	104,134	$	—	$	—
Interest bearing deposits with banks		2,004		2,004		2,004		—		—
Investment securities available-for-sale		496,815		496,815		21,901		474,878		36
Investment securities held-to-maturity		58,064		62,431		—		53,247		9,184
Restricted investment in bank stocks		8,964		8,964		—		8,964		—
Loans held for sale		1,491		1,491		1,491		—		—
Net loans		879,435		897,030		—		—		897,030
Accrued interest receivable		6,849		6,849		—		4,465		2,384
Financial liabilities
Non interest-bearing deposits		215,071		215,071		—		215,071		—
Interest-bearing deposits		1,091,851		1,092,822		—		1,092,822		—
Long-term borrowings		146,000		162,992		—		162,992		—
Subordinated debentures		5,155		5,046		—		5,046		—
Accrued interest payable		874		874		—		874		—