Rendering

Component: (Network and Table)
Network
2313301 - Disclosure - FAIR VALUE MEASUREMENTS (Tables)
(http://www.fouroaksbank.com/role/FairValueMeasurementsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Assets Measured at Fair Value on a Recurring Basis
The following table presents information about assets measured at fair value on a recurring basis at December 31, 2016 and 2015 (amounts in thousands):
Available-for-Sale Securities:
 
Fair Value Measurements at
December 31, 2016, Using
 
Total Carrying
Amount in the
Consolidated
Balance Sheet
 
Assets
Measured
at Fair Value
 
Quoted Prices
 in Active
Markets
for Identical
Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
Taxable municipal securities
 
$
20,049

 
$
20,049

 
$
—

 
$
20,049

 
$
—

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
GNMA
 
11,680

 
11,680

 
—

 
11,680

 
—

FNMA & FHLMC
 
25,412

 
25,412

 
—

 
25,412

 
—

Other debt securities
 
1,000

 
1,000

 
—

 
—

 
1,000

Total available-for-sale securities
 
$
58,141

 
$
58,141

 
$
—

 
$
57,141

 
$
1,000

 
Available-for-Sale Securities:
 
Fair Value Measurements at
December 31, 2015 Using
 
Total Carrying
Amount in the
Consolidated
Balance Sheet
 
Assets
Measured
at Fair Value
 
Quoted Prices
 in Active
Markets
for Identical
Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
Taxable municipal securities
 
$
24,567

 
$
24,567

 
$
—

 
$
24,567

 
$
—

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
GNMA
 
13,530

 
13,530

 
—

 
13,530

 
—

FNMA & FHLMC
 
31,673

 
31,673

 
—

 
31,673

 
—

Other debt securities
 
500

 
500

 
—

 
—

 
500

Equity securities
 
11

 
11

 
—

 
11

 
—

Total available-for-sale securities
 
$
70,281

 
$
70,281

 
$
—

 
$
69,781

 
$
500

 
 
Level 3 Assets Measured at Fair Value on a Recurring Basis
The table below presents reconciliation for the years ended December 31, 2016 and 2015 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands). During the year ended December 31, 2016, no securities were transferred from Level 3 to Level 2.
 
Available-for-Sale Securities
 
2016
 
2015
Beginning Balance
$
500

 
$
—

Purchases, issuances and settlements
500

 
500

Ending Balance
$
1,000

 
$
500

 
 
Impaired Loans and Foreclosed Assets Measured at Fair Value on a Nonrecurring Basis
Assets measured at fair value on a non-recurring basis are included in the table below at December 31, 2016 and 2015 (amounts in thousands):
 
 
Fair Value Measurements at
December 31, 2016, Using
Description
 
Total Carrying Amount in the Consolidated Balance Sheet
 
Assets Measured at Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Loans held for sale
 
$
206

 
$
206

 
$
—

 
$
206

 
$
—

Impaired loans
 
2,179

 
2,179

 
—

 
—

 
2,179

Foreclosed assets
 
1,682

 
1,682

 
—

 
—

 
1,682

Premises and equipment held for sale
 
2,373

 
2,373

 
—

 
—

 
2,373

 
 
 
Fair Value Measurements at
December 31, 2015, Using
Description
 
Total Carrying Amount in the Consolidated Balance Sheet
 
Assets Measured at Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Loans held for sale
 
$
1,145

 
$
1,145

 
$
—

 
$
1,145

 
$
—

Impaired loans
 
3,288

 
3,288

 
—

 
—

 
3,288

Foreclosed assets
 
1,760

 
1,760

 
—

 
—

 
1,760

 
 
Quantitative Information About Level 3 Fair Value Measurements
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at December 31, 2016 (amounts in thousands, except percentages):
 
Total Carrying Amount at December 31, 2016
 
Valuation Methodology
 
Range of Inputs
Recurring measurements:
 
 
 
 
 
Other debt securities
$
1,000

 
Probability of default
 
0%
 
 
 
Loss given default
 
100%
Nonrecurring measurements:
 
 
 
 
 
  Impaired loans
$
2,179

 
Collateral discounts
 
9 - 50%
  Foreclosed assets
$
1,682

 
Discounted appraisals
 
10 - 30%
Premises and equipment held for sale
$
2,373

 
Discounted appraisals
 
10 - 50%
 
 
Range of Collateral Discounts for Impaired Loans by Segment
The following table reflects the general range of collateral discounts for impaired loans by segment:
Loan Segment:
Range of Percentages
Commercial construction and land development
10% - 40%
Commercial real estate
9% - 50%
Residential construction
9% - 30%
Residential mortgage
9% - 20%
All other segments
9% - 20%
 
 
Fair Value of Financial Instruments
The following table presents information for financial assets and liabilities as of December 31, 2016 and 2015 (amounts in thousands):
 
December 31, 2016
 
Carrying
Value
 
Estimated
 Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
32,563


$
32,563


$
32,563

 
$
—

 
$
—

Certificates of deposit
18,125


18,125


—

 
18,125

 
—

Securities available-for-sale
58,141


58,141


—

 
57,141

 
1,000

Securities held-to-maturity
51,205


51,452


—

 
51,452

 
—

Loans held for sale
206


206


—

 
206

 
—

Loans, net
497,357


479,184


—

 
—

 
479,184

FHLB stock
3,596


3,596


—

 
3,596

 
—

Accrued interest receivable
1,598


1,598


—

 
1,598

 
—










 


 


Financial liabilities:








 


 


Deposits
$
553,531


$
552,207


$
—

 
$
552,207

 
$
—

Subordinated debentures and subordinated promissory notes
23,872


23,872


—

 
—

 
23,872

Borrowings
70,000


70,896


—

 
70,896

 
—

Accrued interest payable
384


384


—

 
384

 
—


 
December 31, 2015
 
Carrying
Value
 
Estimated
 Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
26,755

 
$
26,755

 
$
26,755

 
$
—

 
$
—

Certificates of deposit
23,520

 
23,520

 
—

 
23,520

 
—

Securities available-for-sale
70,281

 
70,281

 
—

 
69,781

 
500

Securities held-to-maturity
65,354

 
65,633

 
—

 
65,633

 
—

Loans held for sale
1,145

 
1,145

 
—

 
1,145

 
—

Loans, net
448,697

 
423,285

 
—

 
—

 
423,285

FHLB stock
3,288

 
3,288

 
—

 
3,288

 
—

Accrued interest receivable
1,594

 
1,594

 
—

 
1,594

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
542,334

 
$
541,818

 
$
—

 
$
541,818

 
$
—

Subordinated debentures and subordinated promissory notes
23,872

 
23,872

 
—

 
—

 
23,872

Borrowings
60,000

 
61,709

 
—

 
61,709

 
—

Accrued interest payable
437

 
437

 
—

 
437

 
—