FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2016

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis.



Financial Assets	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
Securities Available for Sale
As of September 30, 2016
Corporate debt obligations	$	—	$	1,021	$	—	$	1,021
Residential mortgage-backed securities	—		36,233		—		36,233
Collateralized mortgage-backed securities	—		185		—		185
Collateralized debt obligations	—		—		441		441
Total	$	—	$	37,439	$	441	$	37,880
As of December 31, 2015
Corporate debt obligations	$	—	$	1,031	$	—	$	1,031
Residential mortgage-backed securities	—		40,821		—		40,821
Collateralized mortgage-backed securities	—		253		—		253
Collateralized debt obligations	—		—		462		462
Total	$	—	$	42,105	$	462	$	42,567

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the nine months ended September 30,:



	Securities Available for Sale
	September 30, 2016			September 30, 2015

	(amounts in thousands)
Beginning balance at January 1,	$	462		$	349
Total net gains (losses) included in:
Other comprehensive income / (loss)	(21		)	26
Ending balance	$	441		$	375

Fair Value on a Non-recurring Basis

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).



Financial Assets	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
As of September 30, 2016
Collateral dependent impaired loans	$	—	$	—	$	16,093	$	16,093
OREO	—		—		10,635		10,635
As of December 31, 2015
Collateral dependent impaired loans	$	—	$	—	$	20,066	$	20,066
OREO	—		—		16,629		16,629

Summary of Carrying Value and Fair Value of Financial Instruments

The following table summarizes the carrying amounts and fair values for financial instruments at September 30, 2016 and December 31, 2015:



	Level in Fair Value Hierarchy	September 30, 2016				December 31, 2015
	Level in Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
		(amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1	$	52,147	$	52,147	$	27,429	$	27,429
Investment securities AFS	(1)	37,880		37,880		42,567		42,467
Investment securities HTM	Level 2	2,213		2,515		2,181		2,471
Restricted stock	Level 2	4,208		4,208		4,789		4,789
Loans held for sale	Level 2	—		—		2,640		2,640
Loans, net	(2)	802,529		817,819		742,365		743,604
Accrued interest receivable	Level 2	2,904		2,904		3,012		3,012
Financial Liabilities:
Demand and savings deposits	Level 2	$	416,615	$	416,615	$	384,726	$	384,726
Time deposits	Level 2	323,261		324,646		280,484		282,080
Borrowings	Level 2	83,053		82,428		98,053		95,492
Accrued interest payable	Level 2	581		581		494		494

⁽¹⁾See the recurring fair value table above.

⁽²⁾For non-impaired loans, Level 2; for impaired loans, Level 3.