Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of fair value measurements by level within the fair value hierarchy and the basis of measurement used

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, 2017, and December 31, 2016, are as follows:

		September 30, 2017
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	99,014	$	—	$	99,014	$	—
Mortgage-backed securities, residential		37,351		—		37,351		—
State and municipal		15,116		—		15,116		—
Corporate bonds		5,112		—		5,112		—
CRA mutual fund		1,042		1,042		—		—
Stock in other banks		757		757		—		—
Total securities available for sale	Recurring	$	158,392	$	1,799	$	156,593	$	—
Impaired loans	Nonrecurring	$	5,462	$	—	$	—	$	5,462

		December 31, 2016
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	79,579	$	—	$	79,579	$	—
Mortgage-backed securities, residential		31,973		—		31,973		—
State and municipal		24,660		—		24,660		—
Corporate bonds		5,062		—		5,062		—
CRA mutual fund		1,035		1,035		—		—
Stock in other banks		681		681		—		—
Total securities available for sale	Recurring	$	142,990	$	1,716	$	141,274	$	—
Impaired loans	Nonrecurring	$	4,406	$	—	$	—	$	4,406

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis

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, 2017
Impaired loans	$	5,462	Appraisal of collateral	(a)	Appraisal adjustments	(b)	(10) - (50)%	(34)%
December 31, 2016
Impaired loans	$	4,406	Appraisal of collateral	(a)	Appraisal adjustments	(b)	(10) - (50)%	(39)%

(a) Fair value is generally determined through management’s estimate or 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.

Schedule of carrying amount, fair value and placement in the 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 September 30, 2017, and December 31, 2016:

	September 30, 2017
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	17,882	$	17,882	$	8,131	$	9,751	$	—
Interest-bearing deposits in banks	31,609		31,609		31,609		—		—
Investment securities available for sale	158,392		158,392		1,799		156,593		—
Investment securities held to maturity	47,369		47,373		—		47,373		—
Loans held for sale	1,873		1,873		—		1,873		—
Loans, less allowance for loan losses	1,222,265		1,205,807		—		—		1,205,807
Accrued interest receivable	3,795		3,795		—		3,795		—
Restricted investment in bank stocks	4,821		4,821		—		4,821		—
Financial liabilities:
Deposits	1,311,884		1,307,677		—		1,307,677		—
Short-term borrowings	33,806		33,806		—		33,806		—
Long-term borrowings	96,850		97,129		—		97,129		—
Accrued interest payable	1,072		1,072		—		1,072		—
Off-balance sheet financial instruments	—		—		—		—		—

	December 31, 2016
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	13,796	$	13,796	$	6,921	$	6,875	$	—
Interest-bearing deposits in banks	5,135		5,135		5,135		—		—
Investment securities available for sale	142,990		142,990		1,716		141,274		—
Investment securities held to maturity	55,568		55,425		—		55,425		—
Loans held for sale	1,770		1,770		—		1,770		—
Loans, less allowance for loan losses	893,176		888,169		—		—		888,169
Accrued interest receivable	3,158		3,158		—		3,158		—
Restricted investment in bank stocks	4,349		4,349		—		4,349		—
Financial liabilities:
Deposits	967,621		967,236		—		967,236		—
Short-term borrowings	34,590		34,590		—		34,590		—
Long-term borrowings	74,250		75,029		—		75,029		—
Accrued interest payable	837		837		—		837		—
Off-balance sheet financial instruments	—		—		—		—		—