Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

       Fair Value Measurements at September 30, 2012

	Basis	Total	Level 1	Level 2	Level 3
In thousands
U.S. Government and agencies		$        25,347	$                  –	$         25,347	$                  –
Mortgage-backed securities		90,342	–	90,342	–
State and municipal		50,950	–	50,950	–
Corporate bonds		7,355	–	7,355	–
CRA mutual fund		1,102	1,102	–	–
Stock in other banks		793	793	–	–
Total securities available for sale	Recurring	$     175,889	$           1,895	$       173,994	$                  –
Impaired loans	Nonrecurring	$          3,951	$                   –	$                  –	$           3,951
Foreclosed assets held for resale	Nonrecurring	$          2,065	$                   –	$                  –	$           2,065

Fair Value Measurements at December 31, 2011               

	Basis	Total	Level 1	Level 2	Level 3
In thousands
U.S. Government and agencies		$       40,169	$                  –	$         40,169	$                  –
Mortgage-backed securities		107,527	–	107,527	–
State and municipal		46,317	–	46,317	–
Corporate bonds		13,379	–	13,379	–
CRA mutual fund		1,081	1,081	–	–
Stock in other banks		754	754	–	–
Total securities available for sale	Recurring	$209,227	$1,835	$207,392	$–
Impaired loans	Nonrecurring	$8,075	$–	$–	$8,075
Foreclosed assets held for resale	Nonrecurring	$1,176	$–	$–	$1,176

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation's financial instruments as of September 30, 2012:

	September 30, 2012
	Carrying Amount	Fair Value	Level 1	Level 2	Level 3
In thousands
Financial assets:
Cash and due from banks	$        12,338	$        12,338	$        12,338	$                 –	$                 –
Interest-bearing deposits in banks	52,165	52,165	52,165	–	–
Investment securities:
Available for sale	175,889	175,889	1,895	173,994	–
Held to maturity	48,016	48,971	–	48,971	–
Loans held for sale	3,618	3,618	3,618	–	–
Loans, less allowance for loan losses	686,082	719,483	–	–	719,483
Accrued interest receivable	3,587	3,587	3,587	–	–
Restricted investment in bank stocks	5,887	5,887	5,887	–	–
Financial liabilities:
Deposits	831,351	832,828	547,787	285,041	–
Short-term borrowings	52,926	52,926	52,926	–	–
Long-term borrowings	70,015	72,978	–	72,978	–
Accrued interest payable	1,320	1,320	1,320	–	–
Off-balance sheet financial instruments	–	–	–	–	–

The following presents the carrying amount and fair value of the Corporation's financial instruments as of December 31, 2011:

December 31, 2011
Carrying Amount	Fair Value

        In thousands

Financial assets:
Cash and due from banks	$     14,423	$     14,423
Interest bearing deposits in banks	8,200	8,200
Investment securities:
Available for sale	209,227	209,227
Held to maturity	10,032	10,680
Loans held for sale	337	337
Loans, less allowance for loan losses	678,986	710,671
Accrued interest receivable	3,674	3,674
Restricted investment in bank stocks	7,146	7,146
Financial liabilities:
Deposits	782,795	784,784
Short-term borrowings	45,962	45,962
Long-term borrowings	71,191	75,792
Accrued interest payable	1,429	1,429
Off-balance sheet financial instruments	–	–

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate	Valuation Technique		Unobservable Input		Range
In thousands
September 30, 2012
Impaired loans	$           3,951	Appraisal of collateral	(1)	Appraisal adjustments	(2)	10 - 50%
Foreclosed assets held for resale	$           2,065	Appraisal of collateral	(1) (3)	Appraisal adjustments	(2)	10 - 50%

(1)Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal.

(3)Includes qualitative adjustments by management and estimated liquidation expenses.