FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Assets Measured at Estimated Fair Value on Recurring Basis

A summary of assets at September 30, 2015 and December 31, 2014, measured at estimated fair value on a recurring basis was as follows:



(Dollars in Thousands)	Level 1		Level 2		Level 3		Total Fair Value Measurements
September 30, 2015
Securities available for sale:
U.S. Government Agencies	$	0	$	49,010	$	0	$	49,010
States and political subdivisions	0		124,813		0		124,813
U.S. Government Sponsored enterprises (GSE) residential mortgage-backed securities	0		136,945		0		136,945
GSE residential collateralized mortgage obligations (CMOs)	0		18,172		0		18,172
GSE commercial CMOs	0		65,238		0		65,238
Total debt securities	0		394,178		0		394,178
Equity securities - financial services	0		73		0		73
Total securities	$	0	$	394,251	$	0	$	394,251

December 31, 2014
Securities available for sale:
U.S. Government Agencies	$	0	$	23,958	$	0	$	23,958
States and political subdivisions	0		52,401		0		52,401
GSE residential mortgage-backed securities	0		175,596		0		175,596
GSE residential collateralized mortgage obligations (CMOs)	0		58,705		0		58,705
GSE commercial CMOs	0		65,472		0		65,472
Total debt securities	0		376,132		0		376,132
Equity securities - financial services	0		67		0		67
Total securities	$	0	$	376,199	$	0	$	376,199

Summary of Additional Qualitative Information

The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:



(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
September 30, 2015
Impaired loans	$	4,423	Appraisal of collateral	Management adjustments on appraisals for property type and recent activity	0% - 70% discount
				Management adjustments for liquidation expenses	0% - 45% discount
Foreclosed real estate	407		Appraisal of collateral	Management adjustments on appraisals for property type and recent activity	0% - 30% discount
				Management adjustments for liquidation expenses	5% - 25% discount
December 31, 2014
Impaired loans	$	4,859	Appraisal of collateral	Management adjustments on appraisals for property type and recent activity	0% - 30% discount
				Management adjustments for liquidation expenses	5% - 10% discount
Foreclosed real estate	786		Appraisal of collateral	Management adjustments on appraisals for property type and recent activity	0% - 5% discount
				Management adjustments for liquidation expenses	6% - 18% discount

Summary of Assets Measured at Fair Value on Nonrecurring Basis

A summary of assets at September 30, 2015 and December 31, 2014, measured at estimated fair value on a nonrecurring basis was as follows:



(Dollars in thousands)	Level 1		Level 2		Level 3		Total Fair Value Measurements
September 30, 2015
Impaired Loans
Commercial real estate:
Owner-occupied	$	0	$	0	$	995	$	995
Non-owner occupied	0		0		906		906
Multi-family	0		0		242		242
Non-owner occupied residential	0		0		586		586
Acquisition and development:
Commercial and land development	0		0		5		5
Commercial and industrial	0		0		29		29
Residential mortgage:
First lien	0		0		1,430		1,430
Home equity - lines of credit	0		0		219		219
Installment and other loans	0		0		11		11
Impaired loans, net	$	0	$	0	$	4,423	$	4,423

Foreclosed real estate
Residential	$	0	$	0	$	74	$	74
Commercial and land development	0		0		333		333
Total foreclosed real estate	$	0	$	0	$	407	$	407
December 31, 2014
Impaired Loans
Commercial real estate:
Owner-occupied	$	0	$	0	$	1,228	$	1,228
Non-owner occupied	0		0		192		192
Multi-family	0		0		92		92
Non-owner occupied residential	0		0		937		937
Acquisition and development:
Commercial and land development	0		0		117		117
Commercial and industrial	0		0		29		29
Residential mortgage:
First lien	0		0		2,022		2,022
Home equity - lines of credit	0		0		229		229
Installment and other loans	0		0		13		13
Impaired loans, net	$	0	$	0	$	4,859	$	4,859

Foreclosed real estate
Residential	$	0	$	0	$	217	$	217
Commercial and land development	0		0		569		569
Total foreclosed real estate	$	0	$	0	$	786	$	786

Financial Instruments at Estimated Fair Values

The estimated fair values of the Company’s financial instruments were as follows at September 30, 2015 and December 31, 2014:



(Dollars in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2015
Financial Assets
Cash and due from banks	$	15,013	$	15,013	$	15,013	$	0	$	0
Interest bearing deposits with banks	19,259		19,259		19,259		0		0
Restricted investments in bank stock	7,106		n/a		n/a		n/a		n/a
Securities available for sale	394,251		394,251		0		394,251		0
Loans held for sale	4,117		4,213		0		4,213		0
Loans, net of allowance for loan losses	749,321		760,906		0		0		760,906
Accrued interest receivable	3,537		3,537		0		1,898		1,639
Financial Liabilities
Deposits	1,047,978		1,051,509		0		1,051,509		0
Short-term borrowings	54,831		54,831		0		54,831		0
Long-term debt	24,575		25,497		0		25,497		0
Accrued interest payable	319		319		0		319		0
Off-balance sheet instruments	0		0		0		0		0
December 31, 2014
Financial Assets
Cash and due from banks	$	18,174	$	18,174	$	18,174	$	0	$	0
Interest bearing deposits with banks	13,235		13,235		13,235		0		0
Restricted investments in bank stock	8,350		n/a		n/a		n/a		n/a
Securities available for sale	376,199		376,199		0		376,199		0
Loans held for sale	3,159		3,249		0		3,249		0
Loans, net of allowance for loan losses	690,199		697,506		0		0		697,506
Accrued interest receivable	3,097		3,097		0		1,593		1,504
Financial Liabilities
Deposits	949,704		950,667		0		950,667		0
Short-term borrowings	86,742		86,742		0		86,742		0
Long-term debt	14,812		15,610		0		15,610		0
Accrued interest payable	273		273		0		273		0
Off-balance sheet instruments	0		0		0		0		0