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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end.
Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions.
Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance.
This guidance further clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value.
Fair value measurement and disclosure guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).
An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at December 31, 2021 and 2020, are as follows:
 Fair Value Measurements at December 31, 2021
In thousandsBasisTotalLevel 1Level 2Level 3
U.S. Government and agencies $245,041 $— $245,041 $— 
Mortgage-backed securities, residential 133,496 — 133,496 — 
State and municipal 44,611 — 44,611 — 
Corporate bonds 13,950 — 13,950 — 
Total securities available for saleRecurring$437,098 $— $437,098 $— 
Equity securities with readily determinable fair valuesRecurring$2,609 $2,609 $— $— 
Collateral dependent impaired loansNon-recurring$5,275 $— $— $5,275 
 Fair Value Measurements at December 31, 2020
In thousandsBasisTotalLevel 1Level 2Level 3
U.S. Government and agencies $183,603 $— $183,603 $— 
Mortgage-backed securities, residential 108,822 — 108,822 — 
State and municipal 36,484 — 36,484 — 
Corporate bonds8,809 — 8,809 — 
Total securities available for saleRecurring$337,718 $— $337,718 $— 
Equity securities with readily determinable fair valuesRecurring$2,170 $2,170 $— $— 
Collateral dependent impaired loansNon-recurring$7,498 $— $— $7,498 

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 thousandsFair Value EstimateValuation TechniqueUnobservable InputRangeWeighted Average
December 31, 2021
  Impaired loans$5,275 Appraisal of collateral(1)Appraisal adjustments(2)
 (10) – (50)%
(50)%
December 31, 2020
  Impaired loans$7,498 Appraisal of collateral(1)Appraisal adjustments(2)
 (10) – (50)%
(52)%
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(1)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.
(2)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.
The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful.
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2021:
December 31, 2021
In thousandsCarrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$14,912 $14,912 $7,992 $6,920 $— 
Interest-bearing deposits in banks695,219 695,219 695,219 — — 
Equity securities available for sale2,609 2,609 2,609 — — 
Investment securities available for sale437,098 437,098 — 437,098 — 
Investment securities held to maturity6,454 6,652 — 6,652 — 
Loans held for sale2,193 2,193 — 2,193 — 
Loans, less allowance for loan losses1,449,394 1,459,900 — — 1,459,900 
Accrued interest receivable5,520 5,520 — 5,520 — 
Restricted investment in bank stocks2,303 2,303 — 2,303 — 
Financial liabilities:
Demand deposits and savings1,996,337 1,996,337 — 1,996,337 — 
Time deposits430,052 428,718 — 428,718 — 
Short-term borrowings35,202 35,202 — 35,202 — 
Long-term borrowings13,700 13,764 — 13,764 — 
Trust preferred subordinated debt21,000 19,991 — 19,991 — 
Accrued interest payable109 109 — 109 — 
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 at December 31, 2020:
December 31, 2020
In thousandsCarrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and due from banks$23,739 $23,739 $12,436 $11,303 $— 
Interest-bearing deposits in banks375,613 375,613 375,613 — — 
Equity securities available for sale2,170 2,170 2,170 — — 
Investment securities available for sale337,718 337,718 — 337,718 — 
Investment securities held to maturity10,294 10,768 — 10,768 — 
Loans held for sale11,034 11,034 — 11,034 — 
Loans, less allowance for loan losses1,617,558 1,662,342 — — 1,662,342 
Accrued interest receivable6,950 6,950 — 6,950 — 
Restricted investment in bank stocks2,942 2,942 — 2,942 — 
Financial liabilities:
Demand deposits and savings1,708,868 1,708,868 — 1,708,868 — 
Time deposits476,657 481,138 — 481,138 — 
Short-term borrowings38,464 38,464 — 38,464 — 
Long-term borrowings42,745 43,669 — 43,669 — 
Trust preferred subordinated debt11,000 9,902 — 9,902 — 
Accrued interest payable1,434 1,434 — 1,434 — 
Off-balance sheet financial instruments— — — — —