Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Assets Reported on Consolidated Balance Sheets at their Fair Value

The following table presents the assets reported on the consolidated balance sheets at their fair value as of December 31, 2015 and December 31, 2014 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	(Amounts in thousands)
			Fair Value Measurements at December 31, 2015 Using
Description	December 31, 2015		Quoted Prices in ActiveMarkets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS
U.S. Government agencies and corporations	$	12,623	$	—	$	12,623	$	—
Obligations of states and political subdivisions		51,405		—		51,405		—
U.S. Government-sponsored mortgage-backed securities		69,679		—		69,679		—
U.S. Government-sponsored collateralized mortgage obligations		13,530		—		13,530		—
U.S. Government-guaranteed small business administration pools		2,837		—		2,837		—
Trust preferred securities		778		—		—		778
Regulatory stock		3,049		3,049		—		—
Trading securities		8,134		—		8,134		—
Loans held for sale		4,033		4,033		—		—
Interest rate derivatives		171		—		171		—
LIABILITIES
Interest rate derivatives	$	171	$	—	$	171	$	—

	(Amounts in thousands)
			Fair Value Measurements at December 31, 2014 Using
Description	December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS
U.S. Treasury securities	$	101	$	—	$	101	$	—
U.S. Government agencies and corporations		8,648		—		8,648		—
Obligations of states and political subdivisions		50,091		—		50,091		—
U.S. Government-sponsored mortgage-backed securities		85,587		—		85,587		—
U.S. Government-sponsored collateralized mortgage obligations		13,992		—		13,992		—
Trust preferred securities		779		—		—		779
Regulatory stock		3,049		3,049		—		—
Trading securities		7,861		—		7,861		—
Loans held for sale		632		632		—		—

Changes in the Level 3 Fair Value Category

The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2015, 2014 and 2013. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly.

	(Amounts in thousands)
	December 31,
	2015			2014			2013
	Trust preferred securities			Trust preferred securities			Trust preferred securities
Beginning balance	$	779		$	10,136		$	7,612
Net realized/unrealized gains/(losses) included in:
Noninterest income		—			—			(1,954	)
Other comprehensive income		21			835			4,553
Discount accretion (premium amortization)		—			7			8
Sales		—			(10,044	)		—
Purchases, issuance, and settlements		(22	)		(155	)		(83	)
Ending balance	$	778		$	779		$	10,136
Losses included in net income for the period relating    to assets held at period end	$	—		$	—		$	(1,954	)

Breakdown of Trust Preferred Securities

The following table details the breakdown of trust preferred securities for the periods indicated:

	(Dollar amounts in thousands)
	December 31,
	2015		2014
Total number of trust preferred securities		2		2
Par value	$	1,780	$	1,802
Number not considered OTTI		1		1
Par value	$	780	$	802
Number considered OTTI		1		1
Par value	$	1,000	$	1,000
Life-to-date impairment recognized in earnings	$	140	$	140
Life-to-date impairment recognized in other comprehensive income		862		883
Total life-to-date impairment	$	1,002	$	1,023

Trust Preferred Security with OTTI, its Credit Rating at Period End and Related Losses Recognized in Earnings

The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2015 and the related loss recognized in earnings:

	(Dollar amounts in thousands)
	Moody’s/Fitch Rating	Amount of OTTI related to credit loss at January 1, 2015		Additions in QTD March 31, 2015		Additions in QTD June 30, 2015		Additions in QTD September 30, 2015		Additions in QTD December 31, 2015		Amount of OTTI related to credit loss at December 31, 2015
Trapeza IX B-1	Ca/CC	$	140	$	—	$	—	$	—	$	—	$	140

The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2014 and the related losses recognized in earnings:

	(Dollar amounts in thousands)
	Moody’s/Fitch Rating	Amount of OTTI related to credit loss at January 1, 2014		Additions in QTD March 31, 2014		Additions in QTD June 30, 2014		Additions in QTD September 30, 2014		Additions in QTD December 31, 2014		Amount of OTTI related to credit loss at December 31, 2014
Trapeza IX B-1	Ca/CC	$	140	$	—	$	—	$	—	$	—	$	140

Additional Information Related to the Company's Trust Preferred Securities

The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2015 used to evaluate other-than-temporary impairments:

	(Dollar amounts in thousands)
Deal	Class	Amortized Cost		Fair Value		Unrealized Gain/(Loss)			Moody’s/ Fitch Rating	Number of Issuers Currently Performing		Deferrals and Defaults as a % of Current Collateral			Excess Subordination as a % of Current Performing Collateral
PreTSL XXIII	C-2	$	780	$	332	$	(448	)	B2/CCC		90		22.5	%		1.77	%
Trapeza IX	B-1		860		446		(414	)	Ca/CC		31		18.5			—
Total		$	1,640	$	778	$	(862	)

The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2014 used to evaluate other-than-temporary impairments:

	(Dollar amounts in thousands)
Deal	Class	Amortized Cost		Fair Value		Unrealized Gain/(Loss)			Moody’s/ Fitch Rating	Number of Issuers Currently Performing		Deferrals and Defaults as a % of Current Collateral			Excess Subordination as a % of Current Performing Collateral
PreTSL XXIII	C-2	$	802	$	313	$	(489	)	B2/C		91		25.2	%		—	%
Trapeza IX	B-1		860		466		(394	)	Ca/CC		33		18.1			—
Total		$	1,662	$	779	$	(883	)

Assets Measured on a Nonrecurring Basis on the Consolidated Balance Sheets at their Fair Value

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2015 and December 31, 2014, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include: quoted market prices for identical assets classified as Level 1 inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level 2 inputs. In cases where valuation techniques include inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level 3 inputs. Other real estate owned is carried at the lower of cost or fair value less estimated costs to sell.

	(Amounts in thousands)
	December 31, 2015
	Level 1		Level 2		Level 3		Total
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	8,800	$	8,800
Other real estate owned	$	—	$	—	$	61	$	61

	(Amounts in thousands)
	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	6,288	$	6,288
Other real estate owned	$	—	$	—	$	40	$	40

Carrying Amounts and Estimated Fair Values of the Company's Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows:

	(Amounts in thousands)
	December 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	18,496	$	18,496	$	—	$	—	$	18,496
Investment securities available-for-sale		153,901		3,049		150,074		778		153,901
Trading securities		8,134		—		8,134		—		8,134
Loans held for sale		4,033		4,033		—		—		4,033
Loans, net of allowance for loan losses		389,060		—		—		393,355		393,355
Bank-owned life insurance		17,328		17,328		—		—		17,328
Accrued interest receivable		1,640		1,640		—		—		1,640
Interest rate derivatives		171		—		171		—		171
LIABILITIES:
Demand, savings and money market deposits	$	364,577	$	364,577	$	—	$	—	$	364,577
Time deposits		131,827		—		—		134,251		134,251
Short-term borrowings		2,499		2,499		—		—		2,499
Federal Home Loan Bank advances - short term		17,000		12,000		—		4,995		16,995
Federal Home Loan Bank advances - long term		25,000		—		—		25,667		25,667
Subordinated debt		5,155		—		—		4,321		4,321
Accrued interest payable		255		255		—		—		255
Interest rate derivatives		171		—		171		—		171

	(Amounts in thousands)
	December 31, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS:
Cash and cash equivalents	$	10,569	$	10,569	$	—	$	—	$	10,569
Investment securities available-for-sale		162,247		3,049		158,419		779		162,247
Trading securities		7,861		—		7,861		—		7,861
Loans held for sale		632		632		—		—		632
Loans, net of allowance for loan losses		354,983		—		—		359,518		359,518
Bank-owned life insurance		16,990		16,990		—		—		16,990
Accrued interest receivable		1,723		1,723		—		—		1,723
LIABILITIES:
Demand, savings and money market deposits	$	326,554	$	326,554	$	—	$	—	$	326,554
Time deposits		130,207		—		—		133,171		133,171
Short-term borrowings		4,259		4,259		—		—		4,259
Federal Home Loan Bank advances - short term		15,500		6,000		—		9,490		15,490
Federal Home Loan Bank advances - long term		25,000		—		—		26,194		26,194
Subordinated debt		5,155		—		—		4,573		4,573
Accrued interest payable		248		248		—		—		248

Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2015.

	(Amountsinthousands)
	Fair value at December 31, 2015		Valuation Technique	Significant Unobservable Input	Description of Inputs
Trust preferred securities	$	778	Discounted Cash Flow	Projected Prepayments	1)Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital.  All fixed rate within one year; variable rate at increasing intervals depending on spread. 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. 3) 1% annually for all other fixed rate issues and all variable rate issues. 4) Zero for collateral issued by REITs and 2% for insurance companies.
				Projected Defaults	1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. 3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings.
				Projected Cures	1) Deferring issuers that have definitive agreements to either be acquired or recapitalized.
				Projected Recoveries	1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years.
				Discount Rates	1) Ranging from ~10.26% to ~14.12%, depending on each bond's seniority and remaining subordination after projected losses.
Impaired loans		8,800	Appraisal of Collateral (1)	Appraisal Adjustments (2)	Range (0)% to (53)% Weighted average (29)%
				Liquidation Expenses (2)	Range (0)% to (43)% Weighted average (5)%
Other real estate owned		61	Appraisal of Collateral (1), (3)	Appraisal Adjustments (2)		0%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 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 are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2014.

	(Amountsinthousands)
	Fair value at December 31, 2014		Valuation Technique	Significant Unobservable Input	Description of Inputs
Trust preferred securities	$	779	Discounted Cash Flow	Projected Prepayments	1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital.  All fixed rate within one year; variable rate at increasing intervals depending on spread. 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. 3) 1% annually for all other fixed rate issues and all variable rate issues. 4) Zero for collateral issued by REITs and 2% for insurance companies.
				Projected Defaults	1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. 3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings.
				Projected Cures	1) Deferring issuers that have definitive agreements to either be acquired or recapitalized.
				Projected Recoveries	1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years.
				Discount Rates	1) Ranging from ~10.24% to ~15.75%, depending on each bond's seniority and remaining subordination after projected losses.
Impaired loans		6,288	Appraisal of Collateral (1)	Appraisal Adjustments (2)	Range (0)% to (40)% Weighted average (23)%
				Liquidation Expenses (2)	Range (0)% to (33)% Weighted average (6)%
Other real estate owned		40	Appraisal of Collateral (1), (3)	Appraisal Adjustments (2)		0%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 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 are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.