FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

At December 31, 2015 and 2014, investments measured at fair value on a recurring basis and the valuation methods used are as follows:

(Dollars in thousands)

December 31, 2015	Level 1		Level 2		Level 3		Total
Available-for-Sale Securities:
U.S. Treasury securities	$	—	$	1,021	$	—	$	1,021
Obligations of U.S. Government Corporations and Agencies:
Mortgaged-backed		—		112,474		—		112,474
Other		—		21,592		—		21,592
Obligations of state and political subdivisions		—		200,314		—		200,314
Corporate debt securities		—		47,833		—		47,833
Marketable equity securities		2,007		—		—		2,007
Total	$	2,007	$	383,234	$	—	$	385,241

(Dollars in thousands)

December 31, 2014	Level 1		Level 2		Level 3		Total
Available-for-Sale Securities:
U.S. Treasury securities	$	—	$	11,378	$	—	$	11,378
Obligations of U.S. Government Corporations and Agencies:
Mortgaged-backed		—		112,714		—		112,714
Other		—		26,510		—		26,510
Obligations of state and political subdivisions		—		157,223		—		157,223
Corporate debt securities		—		37,786		—		37,786
Marketable equity securities		2,055		—		—		2,055
Total	$	2,055	$	345,611	$	—	$	347,666

Fair Value Measurements, Nonrecurring [Table Text Block]

At December 31, 2015 and 2014, impaired loans measured at fair value on a nonrecurring basis that are collateral dependent and the valuation methods used are as follows:

(Dollars in thousands)

	Level 1		Level 2		Level 3		Total
Assets at December 31, 2015
Impaired loans:
Commercial and Industrial	$	—	$	—	$	—	$	—
Commercial Real Estate		—		—		1,665		1,665
Residential Real Estate		—		—		631		631
Total impaired loans	$	—	$	—	$	2,296	$	2,296

(Dollars in thousands)

	Level 1		Level 2		Level 3		Total
Assets at December 31, 2014
Impaired loans:
Commercial and Industrial	$	—	$	—	$	3	$	3
Commercial Real Estate		—		—		2,073		2,073
Residential Real Estate		—		—		856		856
Total impaired loans	$	—	$	—	$	2,932	$	2,932

At December 31, 2015, there were no nonfinancial assets measured at fair value on a nonrecurring basis. At December 31, 2014, foreclosed assets held for resale measured at fair value on a nonrecurring basis and the valuation methods used are as follows:

(Dollars in thousands)

	Level 1		Level 2		Level 3		Total
Assets at December 31, 2014
Other foreclosed assets held for resale:
Commercial Real Estate	$	—	$	—	$	55	$	55
Total foreclosed assets held for resale	$	—	$	—	$	55	$	55

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 that are collateral dependent and for which the Bank has utilized Level 3 inputs to determine the fair value:

(Dollars in thousands)

Quantitative Information about Level 3 Fair Value Measurements

Fair Value

Weighted

December 31, 2015

Estimate

Valuation Technique

Unobservable Input

Range

Average

Impaired loans

2,296

Appraisal of collateral¹^,³

Appraisal adjustments²

(10%) – (63%)

(29%)

Foreclosed assets held for sale

—

Appraisal of collateral¹^,³

Appraisal adjustments²

(0%) – (0%)

(0%)

December 31, 2014

Impaired loans

2,932

Appraisal of collateral¹^,³

Appraisal adjustments²

(0%) – (63%)

(37%)

Foreclosed assets held for sale

Appraisal of collateral¹^,³

Appraisal adjustments²

(33%) – (46%)

(37%)

¹Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators.

²Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

³Includes qualitative adjustments by management and estimated liquidation expenses.

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

(Dollars in thousands)

	Carrying		Fair Value Measurements at December 31, 2015
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	7,474	$	7,474	$	—	$	—	$	7,474
Interest-bearing deposits in other banks		1,534		—		1,534		—		1,534
Time deposits with other banks		1,482		—		1,482		—		1,482
Investment securities available-for-sale		385,241		2,007		383,234		—		385,241
Investment securities held-to-maturity		26		—		27		—		27
Restricted investment in bank stocks		5,742		—		5,742		—		5,742
Net loans		509,871		—		—		498,671		498,671
Mortgage servicing rights		493		—		—		493		493
Accrued interest receivable		4,086		—		4,086		—		4,086

FINANCIAL LIABILITIES:
Deposits		720,598		—		720,341		—		720,341
Short-term borrowings		80,539		—		80,539		—		80,539
Long-term borrowings		70,232		—		71,302		—		71,302
Accrued interest payable		382		—		382		—		382

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		—		—		—		—		—

(Dollars in thousands)

	Carrying		Fair Value Measurements at December 31, 2014
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	7,543	$	7,543	$	—	$	—	$	7,543
Interest-bearing deposits in other banks		424		—		424		—		424
Time deposits with other banks		1,482		—		1,482		—		1,482
Investment securities available-for-sale		347,666		2,055		345,611		—		347,666
Investment securities held-to-maturity		1,056		—		1,060		—		1,060
Restricted investment in bank stocks		5,308		—		5,308		—		5,308
Net loans		481,071		—		—		472,687		472,687
Mortgage servicing rights		481		—		—		481		481
Accrued interest receivable		3,313		—		3,313		—		3,313

FINANCIAL LIABILITIES:
Deposits		661,562		—		661,819		—		661,819
Short-term borrowings		73,123		—		73,123		—		73,123
Long-term borrowings		65,339		—		66,747		—		66,747
Accrued interest payable		399		—		399		—		399

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		—		—		—		—		—