SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
111
20.
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
(Continued)
Long-term borrowings: The fair values of the Company’s long-term borrowings are estimated using
projected cash flows discounted at the Company’s current incremental borrowing rates for similar types of
borrowing arrangements.
Subordinated debentures: The fair values of subordinated debentures are determined based on the current
market value for like instruments of a similar maturity and structure.
Commitments to extend credit and letters of credit: If funded, the carrying amounts for currently unused
commitments would approximate fair values for the newly created financial assets at the funding date.
However, because of the high degree of uncertainty with regard to whether or not those commitments will
ultimately be funded, fair values for loan commitments and letters of credit in their current undisbursed
state cannot reasonably be estimated, and only notional values are disclosed in the table below.
Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands):
Carrying
Amount
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Total
Financial Assets:
Cash and cash equivalents
50,095
$
50,095
$
-
$
-
$
50,095
$
Securities available for sale
511,883
2,222
509,661
-
511,883
Loans and leases held for investment
956,265
-
966,599
-
966,599
Collateral dependent impaired loans
4,791
-
4,791
-
4,791
Loans held-for-sale
-
-
-
-
-
Cash surrender value of life insurance policies
42,989
-
42,989
-
42,989
Other investments
7,042
-
7,042
-
7,042
Investment in limited partnership
7,276
-
7,276
-
7,276
Accrued interest receivable
5,852
-
5,852
-
5,852
Financial Liabilities:
Deposits:
Noninterest-bearing
390,897
$
390,897
$
-
$
-
$
390,897
$
Interest-bearing
975,798
-
976,002
-
976,002
Fed funds purchased and
Repurchase agreements
7,251
-
7,251
-
7,251
Short-termborrowings
18,200
-
18,200
-
18,200
Long-termborrowings
6,000
-
6,000
-
6,000
Subordinated debentures
30,928
-
11,428
-
11,428
Limited partnership capital commitment
914
-
914
-
914
Accrued Interest Payable
137
-
137
-
137
Notional Amount
Off-balance-sheet financial instruments:
Commitments to extend credit
366,909
$
Standby letters of credit
6,787
Commercial lines of credit
7,602
Year Ended December 31, 2014
Estimated Fair Value
