FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

FAIR VALUE MEASUREMENTS [Abstract]

Schedule of assets measured on a recurring basis

ASSETS REPORTED AT FAIR VALUE

(DOLLARS IN THOUSANDS)    

	December 31, 2014
	Level I		Level II		Level III		Total
		$		$		$		$
U.S. government agencies		—		46,159		—		46,159
U.S. agency mortgage-backed securities		—		37,950		—		37,950
U. S. agency collateralized mortgage obligations		—		48,066		—		48,066
Corporate bonds		—		65,108		—		65,108
Obligations of states and political subdivisions		—		93,331		—		93,331
Marketable equity securities		5,208		-		—		5,208
Total securities		5,208		290,614		—		295,822

ASSETS REPORTED AT FAIR VALUE

(DOLLARS IN THOUSANDS)

	December 31, 2013
	Level I		Level II			Level III			Total
		$			$			$			$
U.S. government agencies		—		39,667			—			39,667
U.S. agency mortgage-backed securities		—		51,923			—			51,923
U. S. agency collateralized mortgage obligations		—		41,688			—			41,688
Private collateralized mortgage obligations		—		4,041			—			4,041
Corporate bonds		—		56,194			—			56,194
Obligations of states and political subdivisions		—		101,644			—			101,644
Marketable equity securities		5,171		—			—			5,171
Total securities		5,171		295,157			—			300,328

Schedule of assets measured on a nonrecurring basis

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2014, and December 31, 2013, by level within the fair value hierarchy.

ASSETS MEASURED ON A NONRECURRING BASIS

(DOLLARS IN THOUSANDS)

	December 31, 2014
	Level I		Level II		Level III		Total
	$		$		$		$
Assets:
Impaired Loans		—		—		2,358		2,358
OREO		—		—		69		69
Total		—		—		2,427		2,427

	December 31, 2013
	Level I		Level II		Level III		Total
	$		$		$		$
Assets:
Impaired Loans		—		—		2,693		2,693
OREO		—		—		39		39
Total		—		—		2,732		2,732

Schedule of Level III inputs

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value:

QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS

(DOLLARS IN THOUSANDS)

	December 31, 2014
	Fair Value		Valuation		Unobservable	Range
	Estimate		Techniques		Input	(Weighted Avg)
Impaired loans		2,358		Appraisal of collateral (1)	Appraisal adjustments (2)		0% to -20% (-20%)
					Liquidation expenses (2)		0% to -10% (-10%)
OREO		69		Appraisal of collateral (1) (3)	Appraisal adjustments (2)		-40%
					Liquidation expenses (2)		-1%
	December 31, 2013
		Fair Value		Valuation	Unobservable		Range
		Estimate		Techniques	Input		(Weighted Avg)
Impaired loans		2,693		Appraisal of collateral (1)	Appraisal adjustments (2)		0% to -20% (-20%)
					Liquidation expenses (2)		0% to -10% (-10%)
OREO		39		Appraisal of collateral (1) (3)	Liquidation expenses (2)		-1%

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable.

(2)

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

(3)

Includes qualitative adjustments by management and estimated liquidation expenses.