Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Assets Measured at Fair Value on a Recurring Basis

There were no liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013.

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2014	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	93,841	$	—	$	93,841
Mortgage-backed securities-residential		—		28,878		—		28,878
Asset backed securities		—		18,598		—		18,598
State and municipal		—		3,592		3,269		6,861
Corporate bonds		—		13,636		—		13,636
SBA pooled securities		—		210		—		210
	$	—	$	158,755	$	3,269	$	162,024

Loans held for sale	$	—	$	3,288	$	—	$	3,288

(Dollars in thousands)	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	$	—	$	5,393	$	—	$	5,393

Fair Value of Assets Measured on Non-recurring Basis

There were no liabilities measured at fair value on a non-recurring basis at December 31, 2014 and 2013

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2014	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial	$	—	$	—	$	1,129	$	1,129
Factored receivables		—		—		238		238
Other real estate owned⁽¹⁾:
1-4 family residential properties		—		—		97		97
Commercial		—		—		2,163		2,163
Construction, land development, land		—		—		1,487		1,487
	$	—	$	—	$	5,114	$	5,114

(Dollars in thousands)	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

(Dollars in thousands)			2014		2013
Provision recorded for loans classified as impaired			$	1,296	$	14
Valuation adjustments recorded on other real estate owned			$	671	$	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 not previously presented at December 31, 2014 and 2013 were as follows:

	December 31, 2014
	Carrying		Fair Value Measurements Using						Total
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	160,888	$	160,888	$	—	$	—	$	160,888
Securities - held to maturity		745		—		750		—		750
Loans not previously presented, net		995,668		—		—		1,001,548		1,001,548
FHLB and Federal Reserve Bank stock		4,903	N/A		N/A		N/A		N/A
Accrued interest receivable		3,727		—		3,727		—		3,727

Financial liabilities:
Deposits		1,165,229		—		1,167,479		—		1,167,479
Customer repurchase agreements		9,282		—		9,282		—		9,282
Federal Home Loan Bank advances		3,000		—		3,000		—		3,000
Senior secured note		—		—		—		—		—
Junior subordinated debentures		24,423		—		24,423		—		24,423
Accrued interest payable		971		—		971		—		971


	December 31, 2013
	Carrying		Fair Value Measurements Using						Total
(Dollars in thousands)	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 not previously presented, net		876,803		—		—		883,656		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		—		11,330		—		11,330
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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