Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2014

Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are summarized in the table below. There were no liabilities measured at fair value on a recurring basis at September 30, 2014 and December 31, 2013.

	Fair Value Measurements Using						Total
September 30, 2014:	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	90,737	$	—	$	90,737
Mortgage-backed securities-residential		—		30,713		—		30,713
Asset backed securities		—		18,795		—		18,795
State and municipal		—		4,603		3,495		8,098
Corporate bonds		—		16,931		—		16,931
SBA pooled securities		—		215		—		215
	$	—	$	161,994	$	3,495	$	165,489
Loans held for sale
Mortgages		—		7,295		—		7,295
	$	—	$	7,295	$	—	$	7,295

	Fair Value Measurements Using						Total
December 31, 2013:	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	95,834	$	—	$	95,834
Mortgage-backed securities-residential		—		36,285		—		36,285
Asset backed securities		—		18,839		—		18,839
State and municipal		—		5,423		3,582		9,005
Corporate bonds		—		20,843		—		20,843
SBA pooled securities		—		248		—		248
Trust preferred		—		3,600		—		3,600
	$	—	$	181,072	$	3,582	$	184,654
Loans held for sale
Mortgages		—		5,393		—		5,393
	$	—	$	5,393	$	—	$	5,393

Fair Value of Assets Measured on Non-recurring Basis

Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2014 and December 31, 2013.

	Fair Value Measurements Using						Total
September 30, 2014:	Level 1		Level 2		Level 3		Fair Value
Impaired loans
1-4 family residential properties	$	—	$	—	$	321	$	321
Commercial		—		—		732		732
Factored receivables		—		—		141		141
Other real estate owned⁽¹⁾:
1-4 family residential properties		—		—		97		97
Commercial		—		—		391		391
Construction, land development, land		—		—		870		870
	$	—	$	—	$	2,552	$	2,552

	Fair Value Measurements Using						Total
December 31, 2013:	Level 1		Level 2		Level 3		Fair Value
Impaired loans
1-4 family residential properties	$	—	$	—	$	106	$	106
Commercial		—		—		200		200
Factored receivables		—		—		345		345
Other real estate owned⁽¹⁾:
1-4 family residential properties		—		—		367		367
Commercial		—		—		653		653
Construction, land development, land		—		—		—		—
	$	—	$	—	$	1,671	$	1,671

	September 30, 2014				December 31, 2013
Provision recorded for loans classified as impaired	$	699			$	14
Valuation adjustments recorded on other real estate owned	$	363			$	144

⁽¹⁾ Represents the fair value of OREO that was adjusted subsequent to its initial classification as OREO

Estimated Fair Value of Company's Financial Assets and Financial Liabilities

The estimated fair values of the Company’s financial instruments at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014
	Carrying		Fair Value Measurements Using						Total
	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	75,625	$	75,625	$	—	$	—	$	75,625
Securities - Held to maturity		745		—		750		—		750
Loans, net		969,819		—		—		977,509		977,509
FHLB and Federal Reserve Bank stock		5,826	N/A		N/A		N/A		N/A
Accrued interest receivable		4,127		—		4,127		—		4,127

Financial liabilities:
Deposits		1,105,624		—		1,109,111		—		1,109,111
Customer repurchase agreements		15,644		—		15,644		—		15,644
Federal Home Loan Bank advances		—		—		—		—		—
Senior secured note		11,630		—		11,434		—		11,434
Junior subordinated debentures		24,359		—		24,359		—		24,359
Accrued interest payable		901		—		901		—		901


	December 31, 2013
	Carrying		Fair Value Measurements Using						Total
	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	85,797	$	85,797	$	—	$	—	$	85,797
Securities - Held to maturity		743		—		745		—		745
Loans, net		877,454		—		—		884,307		884,307
FHLB and Federal Reserve Bank stock		5,802	N/A		N/A		N/A		N/A
Accrued interest receivable		3,748		—		3,748		—		3,748

Financial liabilities:
Deposits		1,044,854		—		1,046,226		—		1,046,226
Customer repurchase agreements		11,330		—		11,329		—		11,329
Federal Home Loan Bank advances		21,000		—		21,000		—		21,000
Senior secured note		12,573		—		12,379		—		12,379
Junior subordinated debentures		24,171		—		24,171		—		24,171
Accrued interest payable		2,426		—		2,426		—		2,426

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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