Estimated Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Summary of Financial Instruments

The estimated fair values of the Corporation’s financial instruments at March 31, 2014 and December 31, 2013 are summarized as follows:

	March 31, 2014										December 31, 2013
	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	$	68,241	$	68,241	$	68,241	$	—	$	—	$	52,272	$	52,272
Securities	217,510		217,510		—		217,510		—		216,122		216,122
Restricted stock	5,741		N/A		N/A		N/A		N/A		5,741		5,741
Portfolio loans, net	892,692		888,730		—		—		888,730		884,794		884,211
Loans held for sale	1,811		1,815		—		1,815		—		4,483		4,487
Accrued interest receivable	3,774		3,744		—		970		2,774		3,621		3,621
Financial liabilities
Deposits:
Demand, savings and money market	579,672		574,086		—		574,086		—		542,739		542,739
Certificates of deposit	497,179		498,475		—		498,475		—		502,850		504,381
Short-term borrowings	3,725		3,725		—		3,725		—		4,576		4,576
Federal Home Loan Bank advances	46,760		46,899		—		46,899		—		46,708		46,923
Junior subordinated debentures	16,238		16,650		—		16,650		—		16,238		16,778
Accrued interest payable	701		701		—		701		—		789		789

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, 2014 and December 31, 2013, and the valuation techniques used by the Corporation to determine those fair values.

Description	Fair Value as of March 31, 2014		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	$	67,441	$	—	$	67,441	$	—
Mortgage backed securities: residential	94,519		—		94,519		—
Collateralized mortgage obligations	22,139		—		22,139		—
State and political subdivisions	33,411		—		33,411		—
Interest rate swaps	158		—		158		—
Total	$	217,668	$	—	$	217,668	$	—
Description	Fair Value as of December 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	$	65,388	$	—	$	65,388	$	—
Mortgage backed securities: residential	94,430		—		94,430		—
Collateralized mortgage obligations	18,655		—		18,655		—
State and political subdivisions	32,965		—		32,965		—
Preferred Securities	4,684		—		—		4,684
Interest rate swaps	222		—		222		—
Total	$	216,344	$	—	$	211,660	$	4,684

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, 2014	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	$	—	$	—	$	18,207	$	18,207
Other real estate	—		—		979		979
Total assets at fair value on a nonrecurring basis	$	—	$	—	$	19,186	$	19,186
December 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	$	—	$	—	$	21,986	$	21,986
Other real estate	—		—		579		579
Total assets at fair value on a nonrecurring basis	$	—	$	—	$	22,565	$	22,565

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	$18,207	Sales comparison approach	Adjustment for differences between the comparable sales
Other real estate	$979	Sales comparison approach	Adjustment for differences between the comparable sales