Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value

Summary of assets measured at fair value on recurring basis

	Fair Value Measurements at September 30, 2013 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Assets:
Securities available-for-sale - residential mortgage-backed	$	-	$	10,148	$	-	$	10,148

	Fair Value Measurements at December 31, 2012 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Assets:
Securities available-for-sale - residential mortgage-backed	$	-	$	13,378	$	-	$	13,378

Schedule of carrying values of assets measured at fair value on non-recurring basis

	September 30, 2013		December 31, 2012
	(In thousands)
Assets:
Non-performing loans receivable held-for-sale:
One-to-four units	$	-	$	6,656
Five or more units	-		1,956
Church	785		1,556
Impaired loans carried at fair value of collateral:
One-to-four units	1,494		1,284
Five or more units	908		1,679
Commercial real estate	1,451		3,385
Church	8,793		6,649
Real estate owned:
Commercial real estate	1,294		2,752
Church	5,317		5,411

Schedule of gains (losses) recognized on assets measured at fair value on non-recurring basis

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Non-performing loans receivable held-for-sale	$	-	$	(296)	$	(471)	$	(109)
Impaired loans carried at fair value of collateral	(671)		(669)		(1,071)		(1,585)
Real estate owned	(321)		(427)		(544)		(739)
Total	$	(992)	$	(1,392)	$	(2,086)	$	(2,433)

Schedule of quantitative information on financial instruments measured on non-recurring basis

	September 30, 2013
	Fair Value		Valuation  Technique(s)	Unobservable  Input(s)	Range
	(Dollars in thousands)
Non-performing loans held for sale – church	$	785	Sales comparison approach	Adjustment for differences between the comparable sales	1%
Impaired loans – one-to-four units	1,494		Sales comparison approach	Adjustment for differences between the comparable sales	-2% to 8%
Impaired loans – five or more units	908		Sales comparison approach	Adjustment for differences between the comparable sales	-10 to 0%
			Income approach	Capitalization rate	7.25% to 9%
Impaired loans – commercial real estate	1,451		Sales comparison approach	Adjustment for differences between the comparable sales	-2 to 0%
			Income approach	Capitalization rate	4.5% to 8.25%
Impaired loans – church	8,793		Sales comparison approach	Adjustment for differences between the comparable sales	-32 to 50%
			Income approach	Capitalization rate	6.75%
Real estate owned – commercial real estate	1,294		Sales comparison approach	Adjustment for differences between the comparable sales	-9% to 3%
			Income approach	Capitalization rate	10%
Real estate owned – church	5,317		Sales comparison approach	Adjustment for differences between the comparable sales	-24% to 11%
			Income approach	Capitalization rate	6.5% to 11.5%

	December 31, 2012
	Fair Value		Valuation  Technique(s)	Unobservable  Input(s)	Range
	(Dollars in thousands)
Nonperforming loans held for sale – one-to-four units	$	6,656	Sales comparison approach	Adjustment for differences between the comparable sales	-30% to 23%
Nonperforming loans held for sale – five or more units	1,956		Sales comparison approach	Adjustment for differences between the comparable sales	-13% to 17%
			Income approach	Capitalization rate	6% to 8.5%
Nonperforming loans held for sale – church	1,556		Sales comparison approach	Adjustment for differences between the comparable sales	-27% to 29%
Impaired loans – one-to-four units	1,284		Sales comparison approach	Adjustment for differences between the comparable sales	-5% to 18%
Impaired loans – five or more units	1,679		Sales comparison approach	Adjustment for differences between the comparable sales	-26% to 16%
			Income approach	Capitalization rate	6.5% to 9%
Impaired loans – commercial real estate	3,385		Sales comparison approach	Adjustment for differences between the comparable sales	-17% to -1%
			Income approach	Capitalization rate	7% to 9%
Impaired loans – church	6,649		Sales comparison approach	Adjustment for differences between the comparable sales	-45% to 8%
			Income approach	Capitalization rate	6.75% to 8%
Real estate owned – commercial real estate	2,752		Sales comparison approach	Adjustment for differences between the comparable sales	-67% to 1%
			Income approach	Capitalization rate	8% to 11%
Real estate owned – church	5,411		Sales comparison approach	Adjustment for differences between the comparable sales	-12% to 7%
			Income approach	Capitalization rate	11.5%

Schedule of carrying amounts and estimated fair values of financial instruments

			Fair Value Measurements at September 30, 2013 Using
	Carrying Value		Level 1			Level 2			Level 3			Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	60,224	$	60,224		$	-		$		-	$	60,224
Securities available-for-sale	10,148		-			10,148			-			10,148
Loans receivable held for sale	1,085		-			-			1,085			1,085
Loans receivable held for investment	251,504		-			-			258,332			258,332
Federal Home Loan Bank stock	4,113		N/A			N/A			N/A			N/A
Accrued interest receivable	1,116		-			31			1,085			1,116
Financial Liabilities:
Deposits	$	(218,569)	$	-		$	(211,263)		$		-	$	(211,263)
Federal Home Loan Bank advances	(87,500)		-			(91,145)			-			(91,145)
Junior subordinated debentures	(6,000)		-			-			(5,510)			(5,510)
Other borrowings	(2,960)		-			-			(1,398)			(1,398)
Accrued interest payable	(674)		-			(65)			(559)			(624)
Advance payments by borrowers for taxes and insurance	(1,034)		-			(1,034)			-			(1,034)
			Fair Value Measurements at December 31, 2012 Using
	Carrying Value		Level 1			Level 2			Level 3			Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	64,360	$		64,360	$		-	$	-		$		64,360
Securities available-for-sale	13,378		-			13,378			-			13,378
Loans receivable held for sale	19,051		-			-			19,051			19,051
Loans receivable held for investment	251,723		-			-			252,043			252,043
Federal Home Loan Bank stock	3,901		N/A			N/A			N/A			N/A
Accrued interest receivable	1,250		-			42			1,208			1,250
Financial Liabilities:
Deposits	$	(257,071)	$		-	$		(253,155)	$	-		$		(253,155)
Federal Home Loan Bank advances	(79,500)		-			(84,769)			-			(84,769)
Junior subordinated debentures	(6,000)		-			-			(4,852)			(4,852)
Other borrowings	(5,000)		-			-			(4,205)			(4,205)
Accrued interest payable	(1,941)		-			(87)			(1,527)			(1,614)
Advance payments by borrowers for taxes and insurance	(711)		-			(711)			-			(711)