FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair value of assets and liabilities

Schedule Of Recurring Level III Assets

	For the three months ended		For the three months ended
Interest Rate Lock Commitments	March 31, 2016		March 31, 2015
(in thousands)
Balance, beginning of period	$	1,583	$	1,020
Realized and unrealized gains (loss) included in earnings		1,186		770
Balance, end of period	$	2,769	$	1,790

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

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable
(Dollars in thousands)	Fair Value		Technique	Input	Range
March 31, 2016:
Impaired loans	$	11,057	Appraisal of collateral (1)	Appraisal adjustments(2)	20% - 62%
				Liquidation expense (2)	5% - 10%
Other real estate owned	$	226	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable
(Dollars in thousands)	Fair Value		Technique	Input	Range
December 31, 2015:
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%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not observable.

(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.

Schedule of carrying values and estimated fair values of the Company's financial instruments

The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows (in thousands):

Fair Value Measurements at:

					Quoted Prices in		Significant		Significant
					Active Markets For		Other		Unobservable
	Carrying		Estimated		Identical Assets		Observable		Inputs
	Value		Fair Value		(Level 1)		Inputs (Level 2)		(Level 3)
March 31, 2016:
Financial assets:
Cash and cash equivalents	$	28,726	$	28,726	$	28,726	$	—	$	—
Certificates of deposits with other banks		13,150		13,297		—		13,297		—
Securities available-for-sale		134,825		134,825		—		134,825		—
Loans held for sale		98,876		98,876		—		98,876		—
Loans, net		1,067,159		1,070,055		—		—		1,070,055
Mortgage servicing rights		779		779		—		—		779
Interest rate lock commitment		2,769		2,769		—		—		2,769
Interest rate swap		1,155		1,155		—		1,155		—
Interest rate cap		163		163		—		163		—
Accrued interest receivable		3,618		3,618		—		893		2,725
Financial liabilities:
Deposits	$	1,091,568	$	1,104,641	$	—	$	1,104,641	$	—
Repurchase agreements		29,561		29,561		—		29,561		—
FHLB and other borrowings		146,267		146,273		—		146,273		—
Interest rate swap		1,155		1,155		—		1,155		—
Forward sales commitments		662		662		—		662		—
Accrued interest payable		600		600		—		600		—
Subordinated debt		33,524		32,172		—		32,172		—
December 31, 2015
Financial assets:
Cash and cash equivalents	$	29,133	$	29,133	$	29,133	$	—	$	—
Certificates of deposits with other banks		13,150		13,270		—		13,270		—
Securities available-for-sale		70,256		70,256		—		70,256		—
Securities held-to-maturity		52,859		54,470		—		54,470		—
Loans held for sale		102,623		102,623		—		102,623		—
Loans, net		1,024,164		1,034,832		—		—		1,034,832
Mortgage servicing rights		956		956		—		—		956
Interest rate lock commitment		1,583		1,583		—		—		1,583
Interest rate swap		405		405		—		405		—
Interest rate cap		437		437		—		437		—
Accrued interest receivable		3,356		3,356		—		723		2,633
Financial liabilities:
Deposits	$	1,012,314	$	1,015,521	$	—	$	1,015,521	$	—
Repurchase agreements		27,437		27,437		—		27,437		—
FHLB and other borrowings		183,198		183,211		—		183,211		—
Interest rate swap		405		405		—		405		—
Accrued interest payable		474		474		—		474		—
Subordinated debt		33,524		32,172		—		32,172		—

Recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value

	March 31, 2016
(in thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency securities	$	—	$	34,450	$	—	$	34,450
U.S. Sponsored Mortgage backed securities		—		33,333		—		33,333
Municipal securities		—		61,267		—		61,267
Equity and Other securities		—		5,775		—		5,775
Loans held for sale		—		98,876		—		98,876
Interest rate lock commitment		—		—		2,769		2,769
Interest rate swap		—		1,155		—		1,155
Interest rate cap		—		163		—		163
Liability:
Interest rate swap		—		1,155		—		1,155
Forward sales commitments		—		662		—		662

	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

Non-recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value

	March 31, 2016
(in thousands)	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	—	$	—	$	11,057	$	11,057
Other real estate owned		—		—		226		226

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