Estimated Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Summary of Financial Instruments

The estimated fair values of the Corporation’s financial instruments at March 31, 2013 and December 31, 2012 are summarized as follows:

	March 31, 2013										December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3		Carrying Value		Estimated Fair Value
	(Dollars in thousands)
Financial assets
Cash and due from banks, Federal funds sold and interest bearing deposits in other banks	$	54,954	$	54,954	$	54,954	$	—	$	—	$	30,659	$	30,659
Securities	223,173		223,173		—		218,489		4,684		203,763		203,763
Restricted stock	5,741		5,741		—		5,741		—		5,741		5,741
Portfolio loans, net	872,125		877,068		—		—		877,068		864,911		868,716
Loans held for sale	6,250		6,369		—		6,369		—		7,634		7,891
Accrued interest receivable	4,018		4,018		—		4,018		—		3,726		3,726
Financial liabilities
Deposits:
Demand, savings and money market	533,393		528,329		—		528,329		—		517,181		511,665
Certificates of deposit	515,783		519,290		—		519,290		—		482,411		485,394
Short-term borrowings	1,889		1,889		—		1,889		—		1,115		1,115
Federal Home Loan Bank advances	46,557		46,733		—		46,733		—		46,508		46,828
Junior subordinated debentures	16,238		17,010		—		17,010		—		16,238		17,197
Accrued interest payable	803		803		—		803		—		882		882

Assets Measured by Fair Value on a Recurring Basis

The following table presents information about the Corporation’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012, and the valuation techniques used by the Corporation to determine those fair values.

Description	Fair Value as of March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. Government agencies and corporations	$	57,727	$	—	$	57,727	$	—
Mortgage backed securities	109,425		—		109,425		—
Collateralized mortgage obligations	19,276		—		19,276		—
State and political subdivisions	32,061		—		32,061		—
Preferred Securities	4,684		—		—		4,684
Total	$	223,173	$	—	$	218,489	$	4,684
Description	Fair Value as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. Government agencies and corporations	$	36,970	$	—	$	36,970	$	—
Mortgage backed securities	111,701		—		111,701		—
Collateralized mortgage obligations	22,881		—		22,881		—
State and political subdivisions	32,211		—		32,211		—
Total	$	203,763	$	—	$	203,763	$	—

Balances of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a nonrecurring basis:

March 31, 2013	Quoted Market Prices in Active Markets (Level 1)		Internal Models with Significant Observable Market Parameters (Level 2)		Internal Models with Significant Unobservable Market Parameters (Level 3)		Total
	(Dollars in thousands)
Impaired and nonaccrual loans	$	—	$	—	$	28,514	$	28,514
Other real estate	—		—		1,215		1,215
Total assets at fair value on a nonrecurring basis	$	—	$	—	$	29,729	$	29,729
December 31, 2012	Quoted Market Prices in Active Markets (Level 1)		Internal Models with Significant Observable Market Parameters (Level 2)		Internal Models with Significant Unobservable Market Parameters (Level 3)		Total
	(Dollars in thousands)
Impaired and nonaccrual loans	$	—	$	—	$	27,796	$	27,796
Other real estate	—		—		1,366		1,366
Total assets at fair value on a nonrecurring basis	$	—	$	—	$	29,162	$	29,162

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value (dollars in thousands).

Asset	Fair Value	Valuation Technique	Unobservable Input
Collateral dependent impaired loans	$28,514	Discounted cash flow Appraisal of collateral	Appraisal adjustments Risk premium rate Discount rate
Other real estate	1,215	Appraisal of collateral	Appraisal adjustments
Preferred Securities	4,684	Fair value measurements obtained from an independent pricing service - Income Approach	Market spreads, credit rating collateral type, and other relevant contractual features