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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
114
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
48,623
$
48,623
$
-
$
-
$
48,623
$
Securities available for sale
507,582
1,296
506,286
-
507,582
Loans and leases held for investment
1,120,773
-
1,136,386
-
1,136,386
Collateral dependent impaired loans
3,829
-
3,829
-
3,829
Cash surrender value of life insurance policies
44,140
-
44,140
-
44,140
Other investments
7,546
-
7,546
-
7,546
Investment in limited partnership
6,217
-
6,217
-
6,217
Accrued interest receivable
5,808
-
5,808
-
5,808
Financial Liabilities:
Deposits:
Noninterest-bearing
432,251
$
432,251
$
-
$
-
$
432,251
$
Interest-bearing
1,032,377
-
1,032,547
-
1,032,547
Fed funds purchased and
Repurchase agreements
9,405
-
9,405
-
9,405
Short-termborrowings
75,300
-
75,300
-
75,300
Long-termborrowings
2,000
-
2,001
-
2,001
Subordinated debentures
30,928
-
7,383
-
7,383
Limited partnership capital commitment
795
-
795
-
795
Accrued Interest Payable
116
-
116
-
116
Notional Amount
Off-balance-sheet financial instruments:
Commitments to extend credit
354,890
$
Standby letters of credit
16,654
Year Ended December 31, 2015
Estimated Fair Value