Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value

Summary of assets measured at fair value on recurring basis

	Fair Value Measurements at March 31, 2014 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	$	-	$	17,450	$	-	$	17,450
Securities available-for-sale - U.S. Government and federal agency	-		1,916		-		1,916

	Fair Value Measurements at December 31, 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	$	-	$	9,397	$	-	$	9,397

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

	March 31, 2014		December 31, 2013
	(In thousands)
Assets:
Impaired loans carried at fair value of collateral:
One-to-four units	$	1,090	$	1,245
Five or more units	347		900
Commercial real estate	1,368		1,391
Church	5,808		9,024
Real estate owned:
Five or more units	549		-
Commercial real estate	-		151
Church	1,933		1,933

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

	Three Months Ended March 31,
	2014		2013
Non-performing loans receivable held-for-sale	$	-	$	471
Impaired loans carried at fair value of collateral	157		34
Real estate owned	4		-
Total	$	161	$	505

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

	March 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – one-to-four units	$	1,090	Sales comparison approach	Adjustment for differences between the comparable sales	-6% to 6% (0%)
Impaired loans – five or more units	347		Sales comparison approach	Adjustment for differences between the comparable sales	1%
			Income approach	Capitalization rate	8%
Impaired loans – commercial real estate	1,368		Sales comparison approach	Adjustment for differences between the comparable sales	-1% to 0% (-1%)
			Income approach	Capitalization rate	4.5% to 8% (7.08%)
Impaired loans – church	5,808		Sales comparison approach	Adjustment for differences between the comparable sales	-21% to 9% (0%)
			Income approach	Capitalization rate	6.75%
Real estate owned – five or more units	549		Sales comparison approach	Adjustment for differences between the comparable sales	-15%
			Income approach	Capitalization rate	9%
Real estate owned – church	1,933		Sales comparison approach	Adjustment for differences between the comparable sales	-7% to 7% (0%)

	December 31, 2013
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – one-to-four units	$	1,245	Sales comparison approach	Adjustment for differences between the comparable sales	-6% to 6% (-1%)
Impaired loans – five or more units	900		Sales comparison approach	Adjustment for differences between the comparable sales	-15% to 1% (-9%)
			Income approach	Capitalization rate	8% to 9% (8.59%)
Impaired loans – commercial real estate	1,391		Sales comparison approach	Adjustment for differences between the comparable sales	-1% to 0% (-1%)
			Income approach	Capitalization rate	4.5% to 8% (7.06%)
Impaired loans – church	9,024		Sales comparison approach	Adjustment for differences between the comparable sales	-21% to 9% (-1%)
			Income approach	Capitalization rate	6.75%
Real estate owned – commercial real estate	151		Sales comparison approach	Adjustment for differences between the comparable sales	3% (3%)
			Income approach	Capitalization rate	10%
Real estate owned – church	1,933		Sales comparison approach	Adjustment for differences between the comparable sales	-7% to 7% (0%)

Schedule of carrying amounts and estimated fair values of financial instruments

			Fair Value Measurements at March 31, 2014 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	47,490	$	47,490	$	-	$	-	$	47,490
Securities available-for-sale	19,366		-		19,366		-		19,366
Loans receivable held for investment	249,954		-		-		250,277		250,277
Federal Home Loan Bank stock	3,737		N/A		N/A		N/A		N/A
Accrued interest receivable	1,149		-		50		1,099		1,149
Financial Liabilities:
Deposits	$	(209,671)	$	-	$	(200,777)	$	-	$	(200,777)
Federal Home Loan Bank advances	(79,500)		-		(82,580)		-		(82,580)
Junior subordinated debentures	(6,000)		-		-		(2,222)		(2,222)
Senior debt	(2,885)		-		-		(2,074)		(2,074)
Accrued interest payable	(731)		-		(28)		(664)		(692)
Advance payments by borrowers for taxes and insurance	(379)		-		(379)		-		(379)

			Fair Value Measurements at December 31, 2013 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	58,196	$	58,196	$	-	$	-	$	58,196
Securities available-for-sale	9,397		-		9,397		-		9,397
Loans receivable held for investment	247,847		-		-		248,167		248,167
Federal Home Loan Bank stock	3,737		N/A		N/A		N/A		N/A
Accrued interest receivable	1,107		-		27		1,080		1,107
Financial Liabilities:
Deposits	$	(214,405)	$	-	$	(209,656)	$	-	$	(209,656)
Federal Home Loan Bank advances	(79,500)		-		(82,840)		-		(82,840)
Junior subordinated debentures	(6,000)		-		-		(2,167)		(2,167)
Senior debt	(2,923)		-		-		(1,429)		(1,429)
Accrued interest payable	(718)		-		(63)		(608)		(671)
Advance payments by borrowers for taxes and insurance	(776)		-		(776)		-		(776)