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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

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, 2022 and 2021, are as follows:

									Fair Value Measurements at December 31, 2022
In thousands			Basis						Total						Level 1						Level 2						Level 3
U.S. Government and agencies									$	210,999					$	—					$	210,999					$	—
Mortgage-backed securities, residential									295,718						—						295,718						—
State and municipal									15,235						—						15,235						—
Corporate bonds									31,602						—						31,602						—
Total securities available for sale			Recurring						$	553,554					$	—					$	553,554					$	—
Equity securities with readily determinable fair values			Recurring						$	1,719					$	1,719					$	—					$	—
Collateral dependent impaired loans			Non-recurring						$	3,773					$	—					$	—					$	3,773

									Fair Value Measurements at December 31, 2021
In thousands			Basis						Total						Level 1						Level 2						Level 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 sale			Recurring						$	437,098					$	—					$	437,098					$	—
Equity securities with readily determinable fair values			Recurring						$	2,609					$	2,609					$	—					$	—
Collateral dependent impaired loans			Non-recurring						$	5,275					$	—					$	—					$	5,275

Fair Value Inputs, Assets, Quantitative Information

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

December 31, 2022

Impaired loans

$

3,773

Appraisal of collateral(1)

Appraisal adjustments(2)

(10) – (50)%

(48)

%

December 31, 2021

Impaired loans

$

5,275

Appraisal of collateral(1)

Appraisal adjustments(2)

(10) – (50)%

(50)

%

_______________________________

(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.

Fair Value, by Balance Sheet Grouping

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2022:

			December 31, 2022
In thousands			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
Financial assets:
Cash and due from banks			$	40,067					$	40,067					$	6,977					$	33,090					$	—
Interest-bearing deposits with banks			128,094						128,094						128,094						—						—
Equity securities with readily determinable fair values			1,719						1,719						1,719						—						—
Debt securities available for sale			553,554						553,554						—						553,554						—
Securities held to maturity			64,977						58,078						—						58,078						—
Loans held for sale			123						123						—						123						—
Loans, less allowance for loan losses			1,520,749						1,458,556						—						—						1,458,556
Accrued interest receivable			6,915						6,915						—						6,915						—
Restricted investment in bank stocks			1,629						1,629						—						1,629						—
Financial liabilities:
Demand deposits and savings			1,905,845						1,905,845						—						1,905,845						—
Time deposits			293,130						276,182						—						276,182						—
Short-term borrowings			41,954						41,954						—						41,954						—
Long-term borrowings			—						—						—						—						—
Trust preferred and subordinated debt			21,000						18,648						—						18,648						—
Accrued interest payable			51						51						—						51						—
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, 2021:

			December 31, 2021
In thousands			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
Financial assets:
Cash and due from banks			$	14,912					$	14,912					$	7,992					$	6,920					$	—
Interest-bearing deposits with banks			695,219						695,219						695,219						—						—
Equity securities with readily determinable fair values			2,609						2,609						2,609						—						—
Debt securities available for sale			437,098						437,098						—						437,098						—
Securities held to maturity			6,454						6,652						—						6,652						—
Loans held for sale			2,193						2,193						—						2,193						—
Loans, less allowance for loan losses			1,449,394						1,459,900						—						—						1,459,900
Accrued interest receivable			5,520						5,520						—						5,520						—
Restricted investment in bank stocks			2,303						2,303						—						2,303						—
Financial liabilities:
Demand deposits and savings			1,996,337						1,996,337						—						1,996,337						—
Time deposits			430,052						428,718						—						428,718						—
Short-term borrowings			35,202						35,202						—						35,202						—
Long-term borrowings			13,700						13,764						—						13,764						—
Trust preferred and subordinated debt			21,000						19,991						—						19,991						—
Accrued interest payable			109						109						—						109						—
Off-balance sheet financial instruments			—						—						—						—						—

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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