Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Instruments [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2017 and 2016, the significant unobservable inputs used in the fair value measurements were as follows:

(in thousands)		Fair Value at December 31, 2017	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO	$	14,920	Discounted Cash Flow	Discount Rate	Range of Libor+ 4.5% to 5.5%
Non-recurring:
Impaired Loans	$	2,507	Market Comparable Properties	Marketability Discount	10.0% to 15.0%(1)                                    (weighted avg 10.9%)
OREO	$	1,841	Market Comparable Properties	Marketability Discount	10.0% to 15.0%(1)                                    (weighted avg 13.3%)

(in thousands)		Fair Value at December 31, 2016	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Recurring:
Investment Securities – available for sale - CDO	$	20,254	Discounted Cash Flow	Discount Rate	Range of Libor+ 4.5% to 5.5%
Non-recurring:
Impaired Loans	$	14,537	Market Comparable Properties	Marketability Discount	4.6% to 31.0%(1)                                    (weighted avg 6.5%)
OREO	$	1,201	Market Comparable Properties	Marketability Discount	15%

(1) Range would include discounts taken since appraisal and estimated values

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016 are as follows:

			Fair Value Measurements at
			December 31, 2017 Using
			(In Thousands)
	Assets Measured at		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs		Significant Unobservable Inputs
Description	12/31/2017		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	29,256		$	29,256
Commercial mortgage-backed agencies	$	40,891		$	40,891
Collateralized mortgage obligations	$	40,384		$	40,384
Obligations of states and political subdivisions	$	21,019		$	21,019
Collateralized debt obligations	$	14,920				$	14,920
Financial Derivative	$	781		$	781
Non-recurring:
Impaired loans	$	2,507				$	2,507
Other real estate owned	$	1,841				$	1,841
			Fair Value Measurements at
			December 31, 2016 Using
			(In Thousands)
	Assets Measured at		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs		Significant Unobservable Inputs
Description	12/31/2016		(Level 1)	(Level 2)		(Level 3)
Recurring:
Investment securities available-for-sale:
U.S. government agencies	$	24,253		$	24,253
Commercial mortgage-backed agencies	$	52,222		$	52,222
Collateralized mortgage obligations	$	19,567		$	19,567
Obligations of states and political subdivisions	$	23,704		$	23,704
Collateralized debt obligations	$	20,254				$	20,254
Financial Derivative	$	700		$	700
Non-recurring:
Impaired loans	$	14,537				$	14,537
Other real estate owned	$	1,201				$	1,201

Reconciliation of Fair Valued Assets Measured on a Recurring Basis

The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured using Level 3 significant unobservable inputs for the years ended December 31, 2017 and 2016:

		Fair Value Measurements Using Significant
		Unobservable Inputs
		(Level 3)
		(In Thousands)
	Investment Securities Available for Sale
Beginning balance January 1, 2017	$	20,254
Total gains/(losses) realized/unrealized:
Included in earnings		0
Calls/maturities of investments		(5,810)
Included in other comprehensive income		476
Ending balance December 31, 2017	$	14,920
The amount of total gains or losses for the period
included in earnings attributable to the change in
realized/unrealized gains or losses related to assets
still held at the reporting date	$	0
		Fair Value Measurements Using Significant
		Unobservable Inputs
		(Level 3)
		(In Thousands)
	Investment Securities Available for Sale		Cash Flow Hedge
Beginning balance January 1, 2016	$	22,211	$	(66)
Total gains/(losses) realized/unrealized:
Included in earnings		0		0
Included in other comprehensive loss		(1,957)		66
Ending balance December 31, 2016	$	20,254	$	0
The amount of total gains or losses for the period
included in earnings attributable to the change in
realized/unrealized gains or losses related to assets
still held at the reporting date	$	0	$	0

Fair Value by Balance Sheet Grouping

The following table presents fair value information about financial instruments, whether or not recognized in the statement of financial condition, for which it is practicable to estimate that value. The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the statement of financial condition are as follows:

	December 31, 2017					Fair Value Measurements
					Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	82,273	$	82,273	$	82,273
Interest bearing deposits in banks		1,479		1,479		1,479
Investment securities - AFS		146,470		146,470			$	131,550	$	14,920
Investment securities - HTM		93,632		95,346				86,836		8,510
Restricted Bank stock		5,204		5,204				5,204
Loans, net		882,546		883,936						883,936
Financial derivative		781		781				781
Accrued interest receivable		3,814		3,814				3,814
Financial Liabilities:
Deposits – non-maturity		805,263		805,263				805,263
Deposits – time deposits		234,127		235,489				235,489
Short-term borrowed funds		48,845		48,845				48,845
Long-term borrowed funds		120,929		123,906				123,906
Accrued interest payable		453		453				453
Off balance sheet financial instruments		0		0		0

	December 31, 2016					Fair Value Measurements
						Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	Carrying Amount		Fair Value			(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and due from banks	$	60,707	$	60,707	$	60,707
Interest bearing deposits in banks		2,603		2,603		2,603
Investment securities - AFS		140,000		140,000			$	119,746	$	20,254
Investment securities - HTM		97,169		97,981				89,031		8,950
Restricted Bank stock		5,209		5,209				5,209
Loans, net		882,008		886,712						886,712
Financial derivative		700		700				700
Accrued interest receivable		3,862		3,862				3,862
Financial Liabilities:
Deposits – non-maturity		773,119		773,119				773,119
Deposits – time deposits		241,110		245,762				245,762
Short-term borrowed funds		36,000		36,000				36,000
Long-term borrowed funds		131,737		133,397				133,397
Accrued interest payable		380		380				380
Off balance sheet financial instruments		0		0		0