Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

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 June 30, 2020, and December 31, 2019, are as follows:

		June 30, 2020
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	129,864	$	—	$	129,864	$	—
Mortgage-backed securities, residential		100,167		—		100,167		—
State and municipal		25,824		—		25,824		—
Corporate bonds		1,748		—		1,748		—
Total securities available for sale	Recurring	$	257,603	$	—	$	257,603	$	—
Equity securities with readily determinable fair values	Recurring	$	1,962	$	1,962	$	—	$	—
Collateral dependent impaired loans	Nonrecurring	$	5,315	$	—	$	—	$	5,315

		December 31, 2019
In thousands	Basis	Total		Level 1		Level 2		Level 3
U.S. Government and agencies		$	114,249	$	—	$	114,249	$	—
Mortgage-backed securities, residential		65,592		—		65,592		—
State and municipal		10,996		—		10,996		—
Total securities available for sale	Recurring	$	190,837	$	—	$	190,837	$	—
Equity securities with readily determinable fair values	Recurring	$	2,106	$	2,106	$	—	$	—
Collateral dependent impaired loans	Nonrecurring	$	3,806	$	—	$	—	$	3,806

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
June 30, 2020
Impaired loans	$	5,315	Appraisal of collateral	(a)	Appraisal adjustments	(b)	(10) - (50)%	(23)%
December 31, 2019
Impaired loans	$	3,806	Appraisal of collateral	(a)	Appraisal adjustments	(b)	(10) - (50)%	(15)%

(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, exit pricing concept 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 June 30, 2020:

	June 30, 2020
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	25,919	$	25,919	$	10,597	$	15,322	$	—
Interest-bearing deposits in banks	206,312		206,312		206,312		—		—
Equity securities available for sale	1,962		1,962		1,962		—		—
Investment securities available for sale	257,603		257,603		—		257,603		—
Investment securities held to maturity	14,929		15,463		—		15,463		—
Loans held for sale	5,848		5,848		—		5,848		—
Loans, less allowance for loan losses	1,715,210		1,763,410		—		—		1,763,410
Accrued interest receivable	7,409		7,409		—		7,409		—
Restricted investment in bank stocks	3,582		3,582		—		3,582		—
Financial liabilities:
Demand deposits and savings	1,544,153		1,544,153		—		1,544,153		—
Time deposits	488,648		495,351		—		495,351		—
Short-term borrowings	33,963		33,963		—		33,963		—
Long-term borrowings	57,448		58,831		—		58,831		—
Trust preferred subordinated debt	11,000		9,879		—		9,879		—
Accrued interest payable	2,576		2,576		—		2,576		—
Off-balance sheet financial instruments	—		—		—		—		—

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2019:

	December 31, 2019
In thousands	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	16,878	$	16,878	$	9,542	$	7,336	$	—
Interest-bearing deposits in banks	97,478		97,478		97,478		—		—
Equity securities available for sale	2,106		2,106		2,106		—		—
Investment securities available for sale	190,837		190,837		—		190,837		—
Investment securities held to maturity	19,234		19,281		—		19,281		—
Loans held for sale	2,406		2,406		—		2,406		—
Loans, less allowance for loan losses	1,258,766		1,263,014		—		—		1,263,014
Accrued interest receivable	4,368		4,368		—		4,368		—
Restricted investment in bank stocks	3,644		3,644		—		3,644		—
Financial liabilities:
Demand deposits and savings	1,004,407		1,004,407		—		1,004,407		—
Time deposits	407,853		409,426		—		409,426		—
Short-term borrowings	33,435		33,435		—		33,435		—
Long-term borrowings	61,296		61,965		—		61,965		—
Trust preferred subordinated debt	5,000		4,711		—		4,711		—
Accrued interest payable	2,676		2,676		—		2,676		—
Off-balance sheet financial instruments	—		—		—		—		—