FAIR VALUE MEASUREMENTS (Tables)
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12 Months Ended |
Dec. 31, 2016 |
|---|
| Fair value of assets and liabilities |
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| Schedule of Recurring Level III Assets |
The following table represents recurring level III assets:
| | | | | | | | | | Interest Rate Lock Commitments | | December 31, 2016 | | December 31, 2015 | (Dollars in thousands) | | |
| | |
| Balance, beginning of period | | $ | 1,537 |
| | $ | 1,020 |
| | | | | | Realized and unrealized gains included in earnings | | 9 |
| | 517 |
| | | | | | Balance, end of period | | $ | 1,546 |
| | $ | 1,537 |
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| Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis |
The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2016 and 2015.
| | | | | | | | | | | | | | Quantitative Information about Level III Fair Value Measurements | (Dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | December 31, 2016 | | | | | | | | | Nonrecurring measurements: | | | | | | | | | Impaired loans | | $ | 11,609 |
| | Appraisal of collateral 1 | | Appraisal adjustments 2 | | 20% - 62% | | | |
| | | | Liquidation expense 2 | | 5% - 10% | | | | | | | | | | Other real estate owned | | $ | 414 |
| | Appraisal of collateral 1 | | Appraisal adjustments 2 | | 20% - 30% | | | |
| | | | Liquidation expense 2 | | 5% - 10% | | | | | | | | | | Recurring measurements: | | | | | | | | | Interest rate lock commitments | | $ | 1,546 |
| | Pricing model | | Pull through rates | | 73% - 85% |
| | | | | | | | | | | | | | Quantitative Information about Level III Fair Value Measurements | (Dollars in thousands) | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | December 31, 2015 | | | | | | | | | Nonrecurring measurements: | | | | | | | | | 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% | | | | | | | | | | Recurring measurements: | | | | | | | | | Interest rate lock commitments | | $ | 1,537 |
| | Pricing model | | Pull through rates | | 76% - 85% |
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III 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. |
| Recurring |
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| Fair value of assets and liabilities |
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| Financial Assets and Liabilities Measured at Fair Value |
The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
| | | | | | | | | | | | | | | | | | | | December 31, 2016 | (Dollars in thousands) | | Level I | | Level II | | Level III | | Total | Assets: | | |
| | |
| | |
| | |
| U.S. Government Agency securities | | $ | — |
| | $ | 28,816 |
| | $ | — |
| | $ | 28,816 |
| U.S. Sponsored Mortgage backed securities | | — |
| | 54,732 |
| | — |
| | 54,732 |
| Municipal securities | | — |
| | 70,796 |
| | — |
| | 70,796 |
| Equity and other securities | | — |
| | 8,024 |
| | — |
| | 8,024 |
| Loans held for sale | | — |
| | 90,174 |
| | — |
| | 90,174 |
| Interest rate lock commitment | | — |
| | — |
| | 1,546 |
| | 1,546 |
| Mortgage-backed security hedges | | — |
| | 372 |
| | — |
| | 372 |
| Interest rate swap | | — |
| | 250 |
| | — |
| | 250 |
| Interest rate cap | | — |
| | 268 |
| | — |
| | 268 |
| Liabilities: | | |
| | |
| | |
| | |
| Interest rate swap | | — |
| | 250 |
| | — |
| | 250 |
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| | | | | | | | | | | | | | | | | | | | December 31, 2015 | (Dollars 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 | | — |
| | — |
| | 1,537 |
| | 1,537 |
| Interest rate swap | | — |
| | 405 |
| | — |
| | 405 |
| Interest rate cap | | — |
| | 437 |
| | — |
| | 437 |
| Liabilities: | | |
| | |
| | |
| | |
| Interest rate swap | | — |
| | 405 |
| | — |
| | 405 |
| Mortgage-backed security hedges | | — |
| | 19 |
| | — |
| | 19 |
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| Non-recurring |
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| Fair value of assets and liabilities |
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| Financial Assets and Liabilities Measured at Fair Value |
Assets measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 are included in the table below:
| | | | | | | | | | | | | | | | | | (Dollars in thousands) | | December 31, 2016 | | | Level I | | Level II | | Level III | | Total | Impaired loans | | $ | — |
| | $ | — |
| | $ | 11,609 |
| | $ | 11,609 |
| Other real estate owned | | — |
| | — |
| | 414 |
| | 414 |
|
| | | | | | | | | | | | | | | | | | (Dollars in thousands) | | December 31, 2015 | | | Level I | | Level II | | Level III | | Total | Impaired loans | | $ | — |
| | $ | — |
| | $ | 14,362 |
| | $ | 14,362 |
| Other real estate owned | | — |
| | — |
| | 239 |
| | 239 |
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