FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2016

Assets Measured at Fair Value on a Recurring Basis

The following table presents information about assets measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 (amounts in thousands).



					Fair Value Measurements at
					March 31, 2016, Using
	Total Carrying Amount in the Consolidated Balance Sheet		Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Available-for-Sale Securities:	3/31/2016		3/31/2016		(Level 1)		(Level 2)		(Level 3)
Taxable municipal securities	$	25,420	$	25,420	$	—	$	25,420	$	—
Mortgage-backed securities:
GNMA	13,545		13,545		—		13,545		—
FNMA & FHLMC	30,984		30,984		—		30,984		—
Other debt securities	500		500		—		—		500
Equity securities	11		11		—		11		—
Total available-for-sale securities	$	70,460	$	70,460	$	—	$	69,960	$	500



					Fair Value Measurements at
					December 31, 2015, Using
	Total Carrying Amount in the Consolidated Balance Sheet		Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Available-for-Sale Securities:	12/31/2015		12/31/2015		(Level 1)		(Level 2)		(Level 3)
Taxable municipal securities	$	24,567	$	24,567	$	—	$	24,567	$	—
Mortgage-backed securities:
GNMA	13,530		13,530		—		13,530		—
FNMA & FHLMC	31,673		31,673		—		31,673		—
Other debt securities	500		500		—		—		500
Equity securities	11		11		—		11		—
Total available-for-sale securities	$	70,281	$	70,281	$	—	$	69,781	$	500

Reconciliation of Level 3 Assets Measured at Fair Value on Recurring Basis

The following table presents the reconciliation for the three months ended March 31, 2016 and 2015 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands).



	Three Months Ended
	March 31,
Securities Available-for-Sale:	2016		2015
Beginning Balance	$	500	$	—
Total realized and unrealized gains or (losses):
Included in earnings	—		—
Included in other comprehensive income	—		—
Purchases, issuances and settlements	—		—
Ending Balance	$	500	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are included in the tables below at March 31, 2016 and December 31, 2015 (amounts in thousands).



					Fair Value Measurements at
					March 31, 2016, Using
	Total Carrying Amount in the Consolidated Balance Sheet		Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	3/31/2016		3/31/2016		(Level 1)		(Level 2)		(Level 3)
Loans held for sale	$	730	$	730	$	—	$	730	$	—
Impaired loans	1,616		1,616		—		—		1,616
Foreclosed assets	2,482		2,482		—		—		2,482



					Fair Value Measurements at
					December 31, 2015, Using
	Total Carrying Amount in the Consolidated Balance Sheet		Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	12/31/2015		12/31/2015		(Level 1)		(Level 2)		(Level 3)
Loans held for sale	$	1,145	$	1,145	$	—	$	1,145	$	—
Impaired loans	3,540		3,540		—		—		3,540
Foreclosed assets	1,760		1,760		—		—		1,760

Valuation Methodology and Unobservable Inputs for Level 3 Assets

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at March 31, 2016 (amounts in thousands, except percentages).



	Total Carrying Amount at March 31, 2016		Valuation Methodology	Range of Inputs
Recurring measurements:
Other debt securities	$	500	Probability of default	0%
			Loss given default	100%
Nonrecurring measurements:
Impaired loans	$	1,616	Collateral discounts	9 - 50%
Foreclosed assets	$	2,482	Discounted appraisals	10 - 30%

General Range of Collateral Discounts for Impaired Loans by Segment

The following table reflects the general range of collateral discounts for impaired loans by segment.



Loan Segment:	Range of Percentages
Commercial construction and land development	10% - 40%
Commercial real estate	9% - 50%
Residential construction	9% - 30%
Residential mortgage	9% - 20%
All other segments	9% - 20%

Information for Financial Assets and Liabilities

The following table presents information for financial assets and liabilities as of March 31, 2016 and December 31, 2015 (amounts in thousands).



	March 31, 2016
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	43,061	$	43,061	$	43,061	$	—	$	—
Certificates of deposit	22,540		22,540		—		22,540		—
Securities available-for-sale	70,460		70,460		—		69,960		500
Securities held-to-maturity	62,212		63,368		—		63,368		—
Loans held for sale	730		730		—		730		—
Loans, net	466,759		440,375		—		—		440,375
FHLB stock	3,596		3,596		—		3,596		—
Accrued interest receivable	1,557		1,557		—		1,557		—

Financial liabilities:
Deposits	$	561,378	$	560,874	$	—	$	560,874	$	—
Subordinated debentures and subordinated promissory notes	23,872		23,872		—		—		23,872
Borrowings	70,000		71,914		—		71,914		—
Accrued interest payable	439		439		—		439		—



	December 31, 2015
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	26,755	$	26,755	$	26,755	$	—	$	—
Certificates of deposit	23,520		23,520		—		23,520		—
Securities available-for-sale	70,281		70,281		—		69,781		500
Securities held-to-maturity	65,354		65,633		—		65,633		—
Loans held for sale	1,145		1,145		—		1,145		—
Loans, net	448,697		423,285		—		—		423,285
FHLB stock	3,288		3,288		—		3,288		—
Accrued interest receivable	1,594		1,594		—		1,594		—

Financial liabilities:
Deposits	$	542,334	$	541,818	$	—	$	541,818	$	—
Subordinated debentures and subordinated promissory notes	23,872		23,872		—		—		23,872
Borrowings	60,000		61,709		—		61,709		—
Accrued interest payable	437		437		—		437		—