FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2015

FAIR VALUE.

Schedule of assets and liabilities measured at fair value on a recurring basis

			Fair Value Measurements at December 31, 2015 Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(Dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Investment securities available-for-sale
U. S. government agency	$	504			$	504
States and municipal		350,733				339,875	$	10,858
Mortgage-backed securities — residential — Government Sponsored Entity		334,080				334,080
Collateralized mortgage obligations — Government Sponsored Entity		228,749				228,749
Equity securities		4,689	$	4,689		—
Other securities		6,524						6,524
Total investment securities available-for-sale	$	925,279	$	4,689	$	903,208	$	17,382
Mortgage banking derivatives	$	700			$	700
Interest rate swap asset	$	1,508			$	1,508
Interest rate swap liability	$	(1,508)			$	(1,508)

			Fair Value Measurements at December 31, 2014 Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(Dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Investment securities available-for-sale
U. S. government agency	$	661			$	661
States and municipal		334,298				321,488	$	12,810
Mortgage-backed securities — residential — Government Sponsored Entity		182,172				182,172
Collateralized mortgage obligations — Government Sponsored Entity		343,437				343,437
Equity securities		4,689	$	4,689
Other securities		2,503						2,503
Total investment securities available-for-sale	$	867,760	$	4,689	$	847,758	$	15,313
Mortgage banking derivative	$	975			$	975
Interest rate swap asset	$	56			$	56
Interest rate swap liability	$	(56)			$	(56)

Schedule of reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

States and municipal	2015		2014
Beginning balance, January 1	$	12,810	$	14,420
Total gains or losses (realized / unrealized)
Included in other comprehensive income		(36)		5
Settlements		(1,916)		(1,615)
Ending balance, December 31	$	10,858	$	12,810

Equity securities	2015		2014
Beginning balance, January 1	$	—	$	250
Total gains or losses (realized / unrealized)
Settlements		—		(250)
Ending balance, December 31	$	—	$	—

Other securities	2015		2014
Beginning balance, January 1	$	2,503	$	2,526
Total gains or losses (realized / unrealized)
Purchases		4,000		—
Included in other comprehensive income		21		(23)
Ending balance, December 31	$	6,524	$	2,503

Schedule of assets and liabilities measured at fair value on a non-recurring basis

			Fair Value Measurements at December 31, 2015 Using:
			Quoted Prices in	Significant	Significant
			Active Markets for	Other Observable	Unobservable
	December 31,		Identical Assets	Inputs	Inputs
	2015		(Level 1)	(Level 2)	(Level 3)
Assets:
Impaired loans
Commercial and industrial	$	58			$	58
Other real estate		1,082				1,082
Total impaired loans	$	1,140			$	1,140
Impaired servicing rights	$	531			$	531

			Fair Value Measurements at December 31, 2014 Using:
			Quoted Prices in	Significant	Significant
			Active Markets for	Other Observable	Unobservable
	December 31,		Identical Assets	Inputs	Inputs
	2014		(Level 1)	(Level 2)	(Level 3)
Assets:
Impaired loans
Farm real estate	$	55				55
Other real estate		1,235				1,235
Total impaired loans	$	1,290			$	1,290
Impaired servicing rights	$	1,854			$	1,854
Other real estate owned
Construction and development	$	21			$	21
Other real estate		291				291
1-4 Family		150				150
	$	462			$	462

Schedule of breakdown of impaired loans by portfolio class

	Recorded		Valuation
	Investment		Allowance		Net
Commercial and industrial	$	150	$	92	$	58
Other real estate		2,243		1,161		1,082
Ending Balance	$	2,393	$	1,253	$	1,140

Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis

	Fair Value		Valuation	Unobservable	Range/
December 31, 2015	(in thousands)		Technique(s)	Input(s)	Average
Impaired Loans:
Commercial and industrial	$	58	Sales comparison approach	Adjustment for differences between comparable sales	10	%
					10	%	Avg
Other real estate		1,082	Sales comparison approach	Adjustment for differences between comparable sales, type of property, current status of property	0	%	-	20	%
	$	1,140			10	%	Avg
Mortgage servicing rights	$	531	Cash flow analysis	Discount rate	10	%

	Fair Value		Valuation	Unobservable	Range/
December 31, 2014	(in thousands)		Technique(s)	Input(s)	Average
Impaired Loans:
Farm real estate	$	55	Sales comparison approach	Adjustment for differences between comparable sales	40	%
					40	%	Avg
Other		1,235	Sales comparison approach	Adjustment for differences between comparable sales, type of property, current status of property	20	%	-	45	%
	$	1,290			36	%	Avg
Other real estate owned:
Construction and development	$	21	Sales comparison approach	Adjustment for differences between comparable sales.	15	%
					15	%	Avg
Other and 1-4 Family		441	Sales comparison approach	Adjustment for differences between comparable sales.	10	%	-	19	%
	$	462			11	%	Avg
Mortgage servicing rights	$	1,854	Cash flow analysis	Discount rate	10	%

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying
December 31, 2015	Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	67,578	$	56,104	$	11,474			$	67,578
Interest bearing time deposits		1,960				1,960				1,960
Loans including loans held for sale, net		2,139,765				7,726		2,187,366		2,195,092
FHLB and other stock		11,300								N/A
Interest receivable		10,779				4,901		5,878		10,779
Liabilities
Deposits		(2,650,775)		(641,439)		(2,007,405)				(2,648,844)
Other borrowings		(28,363)				(28,363)				(28,363)
FHLB advances		(269,488)				(270,977)				(270,977)
Interest payable		(560)				(560)				(560)
Subordinated debentures		(41,239)				(24,212)				(24,212)

	Carrying
December 31, 2014	Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	62,485	$	60,662	$	1,823			$	62,485
Interest bearing time deposits		1,915				1,915				1,915
Loans including loans held for sale, net		1,941,507				8,514	$	1,946,843		1,955,357
FHLB and other stock		13,854								N/A
Interest receivable		10,064				4,459		5,605		10,064
Liabilities
Deposits		(2,468,321)		(513,393)		(1,952,833)				(2,466,226)
Other borrowings		(26,349)				(26,349)				(26,349)
FHLB advances		(214,413)				(219,050)				(219,050)
Interest payable		(599)				(599)				(599)
Subordinated debentures		(41,239)				(24,212)				(24,212)