Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value

Summary of assets measured at fair value on recurring basis

	Fair Value Measurements at September 30, 2014
	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	$	-	$	15,919	$	-	$	15,919
Securities available-for-sale - U.S. Government and federal agency	-		1,943		-		1,943

	Fair Value Measurements at December 31, 2013
	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

	September 30, 2014		December 31, 2013
	(In thousands)
Assets:
Impaired loans carried at fair value of collateral:
Single family	$	577	$	1,245
Multi-family	331		900
Commercial real estate	1,210		1,391
Church	4,121		9,024
Real estate owned:
Commercial real estate	-		151
Church	2,500		1,933

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,
	2014		2013			2014		2013
	(In thousands)
Non-performing loans receivable held-for-sale	$	-	$	-		$	-	$	471
Impaired loans carried at fair value of collateral	90		671			388		1,071
Real estate owned	54		321			394		544
Total	$	144	$	992		$	782	$	2,086

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

	September 30, 2014
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – single family	$	577	Sales comparison approach	Adjustment for differences between the comparable sales	-9% to -1% (-4%)
Impaired loans – multi-family	331		Sales comparison approach	Adjustment for differences between the comparable sales	-18%
			Income approach	Capitalization rate	7%
Impaired loans – commercial real estate	1,210		Sales comparison approach	Adjustment for differences between the comparable sales	0% to 1% (0%)
			Income approach	Capitalization rate	5% to 7.25% (6.63%)
Impaired loans – church	4,121		Sales comparison approach	Adjustment for differences between the comparable sales	-12% to 18% (6%)
			Income approach	Capitalization rate	7%
Real estate owned – church	2,500		Sales comparison approach	Adjustment for differences between the comparable sales	-2% to 2% (0%)

	December 31, 2013
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – single family	$	1,245	Sales comparison approach	Adjustment for differences between the comparable sales	-6% to 6% (-1%)
Impaired loans – multi-family	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 September 30, 2014
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	21,196	$	21,196	$	-	$	-	$	21,196
Securities available-for-sale	17,862		-		17,862		-		17,862
Loans receivable held for investment	281,530		-		-		281,830		281,830
Federal Home Loan Bank stock	3,737		-		-		-		N/A
Accrued interest receivable	1,173		-		54		1,119		1,173
Financial Liabilities:
Deposits	$	(217,092)	$	-	$	(207,784)	$	-	$	(207,784)
Federal Home Loan Bank advances	(79,500)		-		(81,907)		-		(81,907)
Junior subordinated debentures	(6,000)		-		-		(2,335)		(2,335)
Senior debt	(2,812)		-		-		(2,812)		(2,812)
Accrued interest payable	(834)		-		(37)		(797)		(834)
Advance payments by borrowers for taxes and insurance	(1,305)		-		(1,305)		-		(1,305)

			Fair Value Measurements at December 31, 2013
	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
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)