FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Fair value of assets and liabilities

The following table represents recurring level III assets:

Interest Rate Lock Commitments	December 31, 2016		December 31, 2015
(Dollars in thousands)
Balance, beginning of period	$	1,537	$	1,020

Realized and unrealized gains included in earnings	9		517

Balance, end of period	$	1,546	$	1,537

Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2016 and 2015.



	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2016
Nonrecurring measurements:
Impaired loans	$	11,609	Appraisal of collateral ¹	Appraisal adjustments ²	20% - 62%
				Liquidation expense ²	5% - 10%

Other real estate owned	$	414	Appraisal of collateral ¹	Appraisal adjustments ²	20% - 30%
				Liquidation expense ²	5% - 10%

Recurring measurements:
Interest rate lock commitments	$	1,546	Pricing model	Pull through rates	73% - 85%



	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2015
Nonrecurring measurements:
Impaired loans	$	14,362	Appraisal of collateral ¹	Appraisal adjustments ²	20% - 62%
				Liquidation expense ²	5% - 10%

Other real estate owned	$	239	Appraisal of collateral ¹	Appraisal adjustments ²	20% - 30%
				Liquidation expense ²	5% - 10%

Recurring measurements:
Interest rate lock commitments	$	1,537	Pricing model	Pull through rates	76% - 85%

¹ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable.

² Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Recurring

Fair value of assets and liabilities

Financial Assets and Liabilities Measured at Fair Value

The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.



	December 31, 2016
(Dollars in thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency securities	$	—	$	28,816	$	—	$	28,816
U.S. Sponsored Mortgage backed securities	—		54,732		—		54,732
Municipal securities	—		70,796		—		70,796
Equity and other securities	—		8,024		—		8,024
Loans held for sale	—		90,174		—		90,174
Interest rate lock commitment	—		—		1,546		1,546
Mortgage-backed security hedges	—		372		—		372
Interest rate swap	—		250		—		250
Interest rate cap	—		268		—		268
Liabilities:
Interest rate swap	—		250		—		250



	December 31, 2015
(Dollars in thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency securities	$	—	$	29,351	$	—	$	29,351
U.S. Sponsored Mortgage backed securities	—		33,714		—		33,714
Municipal securities	—		1,798		—		1,798
Equity and other securities	—		5,393		—		5,393
Loans held for sale	—		102,623		—		102,623
Interest rate lock commitment	—		—		1,537		1,537
Interest rate swap	—		405		—		405
Interest rate cap	—		437		—		437
Liabilities:
Interest rate swap	—		405		—		405
Mortgage-backed security hedges	—		19		—		19

Non-recurring

Fair value of assets and liabilities

Financial Assets and Liabilities Measured at Fair Value

Assets measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 are included in the table below:



(Dollars in thousands)	December 31, 2016
	Level I		Level II		Level III		Total
Impaired loans	$	—	$	—	$	11,609	$	11,609
Other real estate owned	—		—		414		414



(Dollars in thousands)	December 31, 2015
	Level I		Level II		Level III		Total
Impaired loans	$	—	$	—	$	14,362	$	14,362
Other real estate owned	—		—		239		239