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FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2014 and December 31, 2013 are as follows:

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Fair Value Measurements at Reporting Date Using

     

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(Dollars in Thousands)

Financial Assets Measured at Fair Value on a Recurring Basis:

 

 

 

 

 

 

 

 

Federal agency obligations

 

 

$

 

32,817

 

 

 

$

 

 

 

 

$

 

32,817

 

 

 

$

 

 

Residential mortgage pass-through securities

 

 

 

60,356

 

 

 

 

 

 

 

 

60,356

 

 

 

 

 

Commercial mortgage pass-through securities

 

 

 

3,046

 

 

 

 

 

 

 

 

3,046

 

 

 

 

 

Obligations of U.S. states and political subdivision

 

 

 

8,406

 

 

 

 

 

 

 

 

8,406

 

 

 

 

 

Trust preferred securities

 

 

 

16,306

 

 

 

 

 

 

 

 

16,306

 

 

 

 

 

Corporate bonds and notes

 

 

 

125,777

 

 

 

 

 

 

 

 

125,777

 

 

 

 

 

Asset-backed securities

 

 

 

27,502

 

 

 

 

 

 

 

 

27,502

 

 

 

 

 

Certificates of deposit

 

 

 

2,123

 

 

 

 

 

 

 

 

2,123

 

 

 

 

 

Equity securities

 

 

 

307

 

 

 

 

307

 

 

 

 

 

 

 

 

 

Other securities

 

 

 

12,892

 

 

 

 

12,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

$

 

289,532

 

 

 

$

 

13,199

 

 

 

$

 

276,333

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

 

$

 

48

 

 

 

$

 

 

 

 

$

 

48

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

Fair Value Measurements at Reporting Date Using

     

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(Dollars in Thousands)

Financial Assets Measured at Fair Value on a Recurring Basis:

 

 

 

 

 

 

 

 

U.S. treasury and agency securities

 

 

$

 

13,519

 

 

 

$

 

13,519

 

 

 

$

 

 

 

 

$

 

 

Federal agency obligations

 

 

 

19,941

 

 

 

 

 

 

 

 

19,941

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

48,874

 

 

 

 

 

 

 

 

48,874

 

 

 

 

 

Commercial mortgage pass-through securities

 

 

 

6,991

 

 

 

 

 

 

 

 

6,991

 

 

 

 

 

Obligations of U.S. states and political subdivision

 

 

 

31,460

 

 

 

 

 

 

 

 

31,460

 

 

 

 

 

Trust preferred securities

 

 

 

19,403

 

 

 

 

 

 

 

 

19,403

 

 

 

 

36

 

Corporate bonds and notes

 

 

 

158,630

 

 

 

 

 

 

 

 

158,630

 

 

 

 

 

Collateralized mortgage obligations

 

 

 

15,979

 

 

 

 

 

 

 

 

15,979

 

 

 

 

 

Asset-backed securities

 

 

 

15,979

 

 

 

 

 

 

 

 

15,979

 

 

 

 

 

Equity securities

 

 

 

287

 

 

 

 

287

 

 

 

 

 

 

 

 

 

Other securities

 

 

 

5,724

 

 

 

 

5,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

$

 

323,070

 

 

 

$

 

19,530

 

 

 

$

 

303,540

 

 

 

$

 

36

 

 

 

 

 

 

 

 

 

 

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The following table presents the changes in securities available-for-sale with significant unobservable inputs (Level 3) for the year ended December 31, 2014 and December 31, 2013:

 

 

 

 

 

 

 

2014

 

2013

 

 

(Dollars in Thousands)

Beginning balance, January 1,

 

 

$

 

 

 

 

$

 

36

 

Transfers out of Level 3

 

 

 

 

 

 

 

(260

)

 

Principal interest deferrals

 

 

 

 

 

 

 

58

 

Principal paydown

 

 

 

 

 

 

 

 

Total net losses included in net income

 

 

 

 

 

 

 

(628

)

 

Total net unrealized gains

 

 

 

 

 

 

 

794

 

 

 

 

 

 

Ending balance, December 31,

 

 

$

 

 

 

 

$

 

 

 

 

 

 

 

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] For assets measured at fair value on a non-recurring basis, the fair value measurements at December 31, 2014 and 2013 are as follows:

            Range
Impaired Loans   Valuation Techniques   Range of Unobservable Inputs   Minimum   Maximum
Residential   Appraisals of collateral value   Adjustment for age of comparable sales   0%   25%
Commercial real estate   Appraisals of collateral value   Market capitalization rates, Market rental
rates for similar properties
  8%   12%
Construction   Appraisals of collateral value   Adjustment for age comparable sales   5%   0%
                 
Other Real Estate Owned            
                 
Residential   Appraisals of collateral value   Adjustment for age of
comparable sales
  0%   25%
Residential   Appraisals of collateral value   Estimated selling costs   6%   8%
Commercial   Appraisals of collateral value   Adjustment for age of comparable sales   15%   0%
Commercial   Appraisals of collateral value   Estimated selling costs   6%   8%
            Range
Impaired Loans   Valuation Techniques   Range of Unobservable Inputs   Minimum   Maximum
Residential   Appraisals of collateral value   Adjustment for age of comparable sales   0%   25%
Commercial real estate   Appraisals of collateral value   Market capitalization rates, Market rental
rates for similar properties
  8%   12%
Construction   Appraisals of collateral value   Adjustment for age comparable sales   5%   0%
                 
Other Real Estate Owned            
                 
Residential   Appraisals of collateral value   Adjustment for age of
comparable sales
  0%   25%
Residential   Appraisals of collateral value   Estimated selling costs   6%   8%
Commercial   Appraisals of collateral value   Adjustment for age of comparable sales   15%   0%
Commercial   Appraisals of collateral value   Estimated selling costs   6%   8%
Fair Value Measurements, Nonrecurring [Table Text Block] For assets measured at fair value on a non-recurring basis, the unobservable inputs used to derive fair value measurements at December 31, 2014 and December 31, 2013 were as follows:

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Fair Value Measurements at Reporting Date Using

     

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(Dollars in Thousands)

Assets Measured at Fair Value on a Non-Recurring Basis:

 

 

 

 

 

 

 

 

Impaired loans

 

 

$

 

3,907

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

3,907

 

Other real estate owned

 

 

 

1,108

 

 

 

 

 

 

 

 

 

 

 

 

1,108

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

Fair Value Measurements at Reporting Date Using

     

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(Dollars in Thousands)

Assets Measured at Fair Value on a Non-Recurring Basis:

 

 

 

 

 

 

 

 

Impaired loans

 

 

$

 

4,601

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

4,601

 

Other real estate owned

 

 

 

220

 

 

 

 

 

 

 

 

 

 

 

 

220

 
Fair Value, by Balance Sheet Grouping [Table Text Block] The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2014 and December 31, 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying
Amount

 

Fair
Value

 

Fair Value Measurements

 

Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(in thousands)

December 31, 2014

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

$

 

126,847

 

 

 

$

 

126,847

 

 

 

$

 

126,847

 

 

 

$

 

 

 

 

$

 

 

Investment securities available-for-sale

 

 

 

289,532

 

 

 

 

289,532

 

 

 

 

13,199

 

 

 

 

276,333

 

 

 

 

 

Investment securities held-to-maturity

 

 

 

224,682

 

 

 

 

231,445

 

 

 

 

29,184

 

 

 

 

183,489

 

 

 

 

18,772

 

Restricted investment in bank stocks

 

 

 

23,535

 

 

 

 

n/a

 

 

 

 

n/a

 

 

 

 

n/a

 

 

 

 

n/a

 

Net loans

 

 

 

2,524,481

 

 

 

 

2,538,415

 

 

 

 

 

 

 

 

 

 

 

 

2,538,415

 

Derivatives

 

 

 

48

 

 

 

 

48

 

 

 

 

 

 

 

 

48

 

 

 

 

 

Accrued interest receivable

 

 

 

11,700

 

 

 

 

11,700

 

 

 

 

68

 

 

 

 

3,674

 

 

 

 

7,958

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

 

492,516

 

 

 

 

492,516

 

 

 

 

492,516

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

1,983,091

 

 

 

 

1,990,484

 

 

 

 

 

 

 

 

1,990,484

 

 

 

 

 

Borrowings

 

 

 

495,553

 

 

 

 

505,641

 

 

 

 

 

 

 

 

505,641

 

 

 

 

 

Subordinated debentures

 

 

 

5,155

 

 

 

 

4,768

 

 

 

 

 

 

 

 

4,768

 

 

 

 

 

Accrued interest payable

 

 

 

3,930

 

 

 

 

3,930

 

 

 

 

 

 

 

 

3,930

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

$

 

82,692

 

 

 

$

 

82,692

 

 

 

$

 

82,692

 

 

 

$

 

 

 

 

$

 

 

Investment securities available-for-sale

 

 

 

323,070

 

 

 

 

323,070

 

 

 

 

19,530

 

 

 

 

303,540

 

 

 

 

 

Investment securities held-to-maturity

 

 

 

215,286

 

 

 

 

210,958

 

 

 

 

27,037

 

 

 

 

164,940

 

 

 

 

18,981

 

Restricted investment in bank stocks

 

 

 

8,986

 

 

 

 

n/a

 

 

 

 

n/a

 

 

 

 

n/a

 

 

 

 

n/a

 

Net loans

 

 

 

950,610

 

 

 

 

948,606

 

 

 

 

 

 

 

 

 

 

 

 

948,606

 

Accrued interest receivable

 

 

 

6,802

 

 

 

 

6,802

 

 

 

 

102

 

 

 

 

4,034

 

 

 

 

2,666

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

 

227,370

 

 

 

 

227,370

 

 

 

 

227,370

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

1,114,635

 

 

 

 

1,115,781

 

 

 

 

 

 

 

 

1,115,781

 

 

 

 

 

Long-term borrowings

 

 

 

146,000

 

 

 

 

157,440

 

 

 

 

 

 

 

 

157,440

 

 

 

 

 

Subordinated debentures

 

 

 

5,155

 

 

 

 

5,143

 

 

 

 

 

 

 

 

5,143

 

 

 

 

 

Accrued interest payable

 

 

 

963

 

 

 

 

963

 

 

 

 

 

 

 

 

963