FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Fair value of assets and liabilities

Schedule of assets measured at fair value


	December 31, 2014
(in thousands)	Level I			Level II		Level III	Total

U.S. Agency Securities	$	—	$	37,534	$	—	$	37,534
U.S. Sponsored Mortgage backed Securities		—		29,932		—		29,932
Equity and Other Securities		77		670		—		747
Loans held for sale		—		69,527		—		69,527
Interest rate lock commitment		—		—		1,020		1,020
Interest rate cap		—		1,423		—		1,423
Forward sales commitments		—		(431)		—		(431)


		December 31, 2013
(in thousands)		Level I		Level II		Level III		Total

U.S. Agency Securities	$	—	$	58,822	$	—	$	58,822
U.S. Sponsored Mortgage backed Securities		—		46,592		—		46,592
Equity and Other Securities		187		810		—		997
Loans held for sale		—		90,061		—		90,061
Interest rate lock commitment		—		—		1,081		1,081
Forward sales commitments		—		316		—		316

Non-recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value

Assets measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013 are included in the table below (in thousands):


	December 31, 2014
	Level I		Level II		Level III		Total

Impaired loans	$	—	$	—	$	14,091	$	14,091
Other real estate owned		—		—		575		575
Mortgage servicing rights		—		—		1,423		1,423


	December 31, 2013
	Level I		Level II		Level III		Total

Impaired loans	$	—	$	—	$	5,178	$	5,178
Other real estate owned		—		—		375		375
Mortgage servicing rights		—		—		1,417		1,417

Schedule of quantitative information about assets measured at fair value on a non-recurring basis


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)			Valuation	Unobservable
December 31, 2014	Fair Value		Technique	Input	Range

Impaired loans	$	14,091	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

Other real estate owned	$	575	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

Mortgage servicing rights	$	1,423	Discounted cash flows	Constant prepayment rate	12%
				Cost of service	0.25%
				Discount rate	12%


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)			Valuation	Unobservable
December 31, 2013	Fair Value		Technique	Input	Range

Impaired loans	$	5,178	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

Other real estate owned	$	375	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

Mortgage servicing rights	$	1,417	Discounted cash flows	Constant prepayment rate	12%
				Cost of service	0.25%
				Discount rate	12%

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 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.