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

3 Months Ended

Mar. 31, 2014

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 March 31, 2014 and December 31, 2013 are as follows:

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Recurring Basis	March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury & agency securities	$	13,896	$	13,896	$	—	$	—
Federal agency obligations		23,090		—		23,090		—
Residential mortgage pass-through securities		47,188		—		47,188		—
Commercial mortgage pass-through securities		2,963		—		2,963		—
Obligations of U.S. states and political subdivisions		14,939		—		14,939		—
Trust preferred securities		19,797		—		19,797		—
Corporate bonds and notes		141,651		—		141,651		—
Asset-backed securities		15,554		—		15,554		—
Certificates of deposit		2,129		—		2,129		—
Equity securities		292		292		—		—
Mutual funds and money market funds		5,972		5,972		—		—
Investment securities available-for-sale	$	287,471	$	20,160	$	267,311	$	—

				Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Recurring Basis		December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
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 subdivisions			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		—		—
Mutual funds and money market funds			5,724		5,724		—		—
Securities available-for-sale		$	323,070	$	19,530	$	303,540	$	—

Schedule of Changes in Investment Securities Available-for-Sale

The following tables present the changes in investment securities available-for-sale with significant unobservable inputs (Level 3) for the three months ended March 31, 2014 and 2013.

	Three Months Ended
	March 31,
	2014		2013
(in thousands)
Balance, beginning of the period	$	—	$	36
Interest payment deferrals		—		14
Total net unrealized gains		—		(6)
Balance, end of the period	$	—	$	44

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For assets measured at fair value on a non-recurring basis, the unobservable inputs used to derive fair value measurements at March 31, 2014 and December 31, 2013 were 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

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Non-Recurring Basis	March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans	$	4,443	$	—	$	—	$	4,443

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

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 March 31, 2014 and December 31, 2013.

					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)
March 31, 2014
Financial assets
Cash and due from banks	$	106,282	$	106,282	$	106,282	$	—	$	—
Investment securities available-for-sale		287,471		287,471		20,160		267,311		—
Investment securities held-to-maturity		214,191		214,952		27,793		168,230		18,929
Restricted investment in bank stocks		8,986		8,986		—		8,986		—
Net loans		976,896		975,016		—		—		975,016
Accrued interest receivable		6,341		6,341		—		3,654		2,687
Financial liabilities
Non interest-bearing deposits		223,332		223,332		—		223,332		—
Interest-bearing deposits		1,116,553		1,117,677		—		1,117,677		—
Long-term borrowings		146,000		158,306		—		158,306		—
Subordinated debentures		5,155		4,923		—		4,923		—
Accrued interest payable		967		967		—		967		—
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		—