Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE (Tables)

v3.3.0.814
FAIR VALUE (Tables)
9 Months Ended
Sep. 30, 2015
FAIR VALUE [Abstract]  
Assets measured at fair value on a recurring basis
Assets measured at fair value on a recurring basis are summarized below (in thousands):
 
   
Fair
Value
   
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
   
Significant Other
Observable
Inputs (Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
September 30, 2015
               
U.S. Treasury and federal agency securities
 
$
71,783
   
$
---
   
$
71,783
   
$
---
 
U.S. Agency MBS and CMOs
   
13,935
     
---
     
13,935
     
---
 
Tax-exempt state and municipal bonds
   
35,004
     
---
     
35,004
     
---
 
Taxable state and municipal bonds
   
25,386
     
---
     
25,386
     
---
 
Corporate bonds and other debt securities
   
13,896
     
---
     
13,896
     
---
 
Other equity securities
   
1,511
     
---
     
1,511
     
---
 
Loans held for sale
   
2,895
     
---
     
2,895
     
---
 
Interest rate swaps
   
592
     
---
     
---
     
592
 
Interest rate swaps
   
(592
)
   
---
     
---
     
(592
)
                                 
December 31, 2014
                               
U.S. Treasury and federal agency securities
 
$
67,164
   
$
---
   
$
67,164
   
$
---
 
U.S. Agency MBS and CMOs
   
16,688
     
---
     
16,688
     
---
 
Tax-exempt state and municipal bonds
   
37,461
     
---
     
37,461
     
---
 
Taxable state and municipal bonds
   
25,293
     
---
     
25,293
     
---
 
Corporate bonds and other debt securities
   
13,766
     
---
     
13,766
     
---
 
Other equity securities
   
1,502
     
---
     
1,502
     
---
 
Loans held for sale
   
2,347
     
---
     
2,347
     
---
 
Interest rate swaps
   
140
     
---
     
---
     
140
 
Interest rate swaps
   
(140
)
   
---
     
---
     
(140
)
Assets measured at fair value on a non-recurring basis
Assets measured at fair value on a non-recurring basis are summarized below (in thousands):
 
   
Fair
Value
   
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
   
Significant Other
Observable
Inputs (Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
September 30, 2015
               
Impaired loans
 
$
8,247
   
$
---
   
$
---
   
$
8,247
 
Other real estate owned
   
22,808
     
---
     
---
     
22,808
 
                                 
December 31, 2014
                               
Impaired loans
 
$
12,649
   
$
---
   
$
---
   
$
12,649
 
Other real estate owned
   
22,472
     
---
     
---
     
22,472
 
Quantitative information about level 3 fair value measurements measured on a non-recurring basis
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands):
 
   
Asset
(Liability)
Fair
Value
 
Valuation
Technique
 
Unobservable
Inputs
 
Range (%)
September 30, 2015
                 
Impaired Loans
 
$
8,247
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
5.0 to  19.0
         
Income approach
 
Capitalization rate
 
9.5 to 11.0
                        
Other real estate owned
   
22,808
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
7.0 to 23.0
         
Income approach
 
Capitalization rate
 
9.5 to 11.0
 
   
Asset
(Liability)
Fair
Value
 
Valuation
Technique
 
Unobservable
Inputs
 
Range (%)
December 31, 2014
                 
Impaired Loans
 
$
12,649
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
 1.0 to 20.0
         
Income approach
 
Capitalization rate
 
 9.5 to 12.0
                        
Other real estate owned
   
22,472
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
 3.0 to 22.7
         
Income approach
 
Capitalization rate
 
 9.5 to 12.0
 
Carrying amounts and estimated fair values of financial instruments, not previously presented
The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2015 and December 31, 2014 (dollars in thousands).
 
Level in  
September 30, 2015
   
December 31, 2014
 
Fair Value
Hierarchy
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Financial assets
                 
Cash and due from banks
Level 1
 
$
23,468
     
23,468
   
$
31,503
   
$
31,503
 
Cash equivalents
Level 2
   
100,285
     
100,285
     
97,952
     
97,952
 
Interest-bearing time deposits in other financial institutions
Level 2
   
20,000
     
20,034
     
20,000
     
20,062
 
Securities held to maturity
Level 3
   
40,434
     
41,624
     
31,585
     
31,428
 
FHLB stock
     
11,558
   
NA
     
11,238
   
NA
 
Loans, net
Level 2
   
1,166,414
     
1,159,672
     
1,086,872
     
1,082,675
 
Bank owned life insurance
Level 3
   
28,697
     
28,697
     
28,195
     
28,195
 
Accrued interest receivable
Level 2
   
3,778
     
3,778
     
3,399
     
3,399
 
                                   
Financial liabilities
                                 
Deposits
Level 2
   
(1,366,849
)
   
(1,366,798
)
   
(1,306,325
)
   
(1,306,671
)
Other borrowed funds
Level 2
   
(96,169
)
   
(97,632
)
   
(88,107
)
   
(89,066
)
Long-term debt
Level 2
   
(41,238
)
   
(35,757
)
   
(41,238
)
   
(35,396
)
Accrued interest payable
Level 2
   
(269
)
   
(269
)
   
(289
)
   
(289
)
                                   
Off-balance sheet credit-related items
                                 
Loan commitments
     
---
     
---
     
---
     
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