FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Fair value of assets and liabilities




Interest Rate Lock Commitments	December 31, 2015		December 31, 2014
(in thousands)
Balance, beginning of period	$	1,020	$	1,081

Realized and unrealized gains (loss) included in earnings		563		(61)

Balance, end of period	$	1,583	$	1,020

Recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value


	December 31, 2015
(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		—		—		1,583		1,583
Interest rate swap		—		405		—		405
Interest rate cap		—		437		—		437
Liabilities:
Interest rate swap		—		405		—		405


		December 31, 2014
(in thousands)		Level I		Level II		Level III		Total
Assets:
U.S. Agency Securities	$	—	$	37,534	$	—	$	37,534
U.S. Sponsored Mortgage backed Securities		—		29,932		—		29,932
Equity and Other Securities		—		747		—		747
Loans held for sale		—		69,527		—		69,527
Interest rate lock commitment		—		—		1,020		1,020
Interest rate cap		—		1,423		—		1,423
Liabilities:
Forward sales commitments		—		431		—		431

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, 2015 and 2014 are included in the table below (in thousands):


	December 31, 2015
	Level I		Level II		Level III		Total

Impaired loans	$	—	$	—	$	14,362	$	14,362
Other real estate owned		—		—		239		239


	December 31, 2014
	Level I		Level II		Level III		Total

Impaired loans	$	—	$	—	$	14,091	$	14,091
Other real estate owned		—		—		575		575

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, 2015	Fair Value		Technique	Input	Range

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%

Mortgage servicing rights	$	956	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, 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	$	1,417	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.