Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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

For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used, at September 30, 2015, and December 31, 2014, are as follows:



		September 30, 2015
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	24,225	$	—	$	24,225	$	—
Mortgage-backed securities, residential		46,103		—		46,103		—
State and municipal		29,543		—		29,543		—
Corporate bonds		7,044		—		7,044		—
CRA mutual fund		1,063		1,063		—		—
Stock in other banks		730		730		—		—
Total securities available for sale	Recurring	$	108,708	$	1,793	$	106,915	$	—
Impaired loans	Nonrecurring	$	4,522	$	—	$	—	$	4,522



		December 31, 2014
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	17,317	$	—	$	17,317	$	—
Mortgage-backed securities, residential		53,262		—		53,262		—
State and municipal		35,445		—		35,445		—
Corporate bonds		10,083		—		10,083		—
CRA mutual fund		1,058		1,058		—		—
Stock in other banks		835		835		—		—
Total securities available for sale	Recurring	$	118,000	$	1,893	$	116,107	$	—
Impaired loans	Nonrecurring	$	5,785	$	—	$	—	$	5,785
Foreclosed assets held for resale	Nonrecurring	$	383	$	—	$	—	$	383

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

Dollars in thousands

Fair Value Estimate

Valuation Technique

Unobservable Input

Range

Weighted Average

September 30, 2015

Impaired loans

4,522

Appraisal of collateral

(a)

Appraisal adjustments

(b)

(10) - (50)%

(16)%

December 31, 2014

Impaired loans

5,785

Appraisal of collateral

(a)

Appraisal adjustments

(b)

(10) - (50)%

(18)%

Foreclosed assets held for resale

383

Appraisal of collateral

(a)

Appraisal adjustments

(b)

(10) - (50)%

(44)%

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

(b) Appraisals may be adjusted downward 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. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal.

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, 2015, and December 31, 2014:



	September 30, 2015
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	13,013	$	13,013	$	7,481	$	5,532	$	—
Interest-bearing deposits in banks	33,076		33,076		33,076		—		—
Investment securities available for sale	108,708		108,708		1,793		106,915		—
Investment securities held to maturity	73,507		74,069		—		74,069		—
Loans held for sale	1,229		1,229		—		1,229		—
Loans, less allowance for loan losses	810,490		823,684		—		—		823,684
Accrued interest receivable	2,874		2,874		—		2,874		—
Restricted investment in bank stocks	4,078		4,078		—		4,078		—

Financial liabilities:
Deposits	895,369		895,926		—		895,926		—
Short-term borrowings	37,724		37,724		—		37,724		—
Long-term borrowings	75,500		76,836		—		76,836		—
Accrued interest payable	765		765		—		765		—

Off-balance sheet financial instruments	—		—		—		—		—



	December 31, 2014
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	13,502	$	13,502	$	7,200	$	6,302	$	—
Interest-bearing deposits in banks	6,171		6,171		6,171		—		—
Investment securities available for sale	118,000		118,000		1,893		116,107		—
Investment securities held to maturity	73,346		73,057		—		73,057		—
Loans held for sale	1,623		1,623		—		1,623		—
Loans, less allowance for loan losses	784,100		795,117		—		—		795,117
Accrued interest receivable	2,950		2,950		—		2,950		—
Restricted investment in bank stocks	4,216		4,216		—		4,216		—

Financial liabilities:
Deposits	844,876		845,565		—		845,565		—
Short-term borrowings	45,699		45,699		—		45,699		—
Long-term borrowings	80,937		82,478		—		82,478		—
Accrued interest payable	773		773		—		773		—

Off-balance sheet financial instruments	—		—		—		—		—