Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value

Summary of assets measured at fair value on recurring basis

	Fair Value Measurements at September 30, 2015
	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	$	-	$	12,800	$	-	$	12,800
Securities available-for-sale - U.S. Government and federal agency	1,996		-		-		1,996

	Fair Value Measurements at December 31, 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	$	-	$	15,118	$	-	$	15,118
Securities available-for-sale - U.S. Government and federal agency	1,957		-		-		1,957

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

	September 30, 2015	December 31, 2014
	(In thousands)
Assets:
Impaired loans carried at fair value of collateral:
Single family	476	549
Multi-family	-	323
Commercial real estate	1,039	1,177
Church	2,051	3,779
Real estate owned:
Church	558	2,082

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

	September 30, 2015
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – single family	$	476	Sales comparison approach	Adjustment for differences between the comparable sales	-6% to 1% (-3%)
Impaired loans – commercial real estate	1,039		Sales comparison approach	Adjustment for differences between the comparable sales	-1% to 4% (0%)
			Income approach	Capitalization rate	4.75% to 7.25% (6.59%)
Impaired loans – church	2,051		Sales comparison approach	Adjustment for differences between the comparable sales	-12% to 6% (0%)
Real estate owned – church	558		Sales comparison approach	Adjustment for differences between the comparable sales	29%
			Income approach	Capitalization rate	6.5%

	December 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans – single family	$	549	Sales comparison approach	Adjustment for differences between the comparable sales	-1% to 9% (-4%)
Impaired loans – multi-family	323		Sales comparison approach	Adjustment for differences between the comparable sales	-18%
			Income approach	Capitalization rate	7%
Impaired loans – commercial real estate	1,177		Sales comparison approach	Adjustment for differences between the comparable sales	0% to 1% (0%)
			Income approach	Capitalization rate	5% to 7.25% (6.64%)
Impaired loans – church	3,779		Sales comparison approach	Adjustment for differences between the comparable sales	-12% to 18% (5%)
			Income approach	Capitalization rate	6%
Real estate owned – church	2,082		Sales comparison approach	Adjustment for differences between the comparable sales	-1% to 2% (0%)

Schedule of carrying amounts and estimated fair values of financial instruments

			Fair Value Measurements at September 30, 2015
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	150,481	$	150,481	$	-	$	-	$	150,481
Securities available-for-sale	14,796		1,996		12,800		-		14,796
Loans receivable held for sale	27,945		-		28,335		-		28,335
Loans receivable held for investment	198,098		-		-		198,356		198,356
Accrued interest receivable	963		82		84		797		963
Federal Home Loan Bank stock	2,573		2,573		-		-		2,573
Financial Liabilities:
Deposits	$	274,921	$	-	$	269,123	$	-	$	269,123
Federal Home Loan Bank advances	77,500		-		79,693		-		79,693
Junior subordinated debentures	5,100		-		-		3,070		3,070
Accrued interest payable	51		-		46		5		51

			Fair Value Measurements at December 31, 2014
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	20,790	$	20,790	$	-	$	-	$	20,790
Securities available-for-sale	17,075		1,957		15,118		-		17,075
Loans receivable held for sale	19,481		-		19,679		-		19,679
Loans receivable held for investment	276,643		-		-		277,000		277,000
Accrued interest receivable	1,216		78		88		1,050		1,216
Federal Home Loan Bank stock	4,254		4,254		-		-		4,254
Financial Liabilities:
Deposits	$	217,867	$	-	$	210,181	$	-	$	210,181
Federal Home Loan Bank advances	86,000		-		88,246		-		88,246
Junior subordinated debentures	5,100		-		-		2,034		2,034
Accrued interest payable	69		-		39		30		69