Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:


	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	$	0	$	13,378	$	0	$	13,378

	Fair Value Measurements at December 31, 2011 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	$	0	$	17,910	$	0	$	17,910
Securities available-for-sale – U.S. government and federal agency		0		1,069		0		1,069

Carrying Values of Assets Measured at Fair Value on Non-Recurring Basis

The following table provides information regarding our assets measured at fair value on a non-recurring basis at the dates indicated. The fair value measurement for all of these assets falls within Level 3 of the fair value hierarchy.


	Fair Value at December 31, 2012		Gains (Losses)			Fair Value at December 31, 2011		Gains (Losses)
	(In thousands)
Assets:
Non-performing loans receivable held-for-sale:
One-to-four units	$	6,656	$	0		$	0	$	0
Five or more units		1,956		341			2,114		(259	)
Commercial real estate		0		(5	)		338		(215	)
Church		1,556		(227	)		2,778		(1,089	)
Impaired loans carried at fair value of collateral:
One-to-four units		1,284		(425	)		6,201		(1,005	)
Five or more units		1,679		3			874		(151	)
Commercial real estate		3,385		(419	)		2,869		(3,472	)
Church		6,649		(813	)		13,153		(3,779	)
Construction		0		0			205		(97	)
Commercial		0		0			0		(2,974	)
Other		0		0			0		(70	)
Real estate owned:
One-to-four units		0		0			718		(394	)
Five or more units		0		0			0		0
Commercial real estate		2,752		(397	)		3,126		(1,035	)
Church		5,411		(512	)		2,855		(239	)

Quantitative Information on Financial Instruments Measured on Non-Recurring Basis

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2012:


	Fair Value	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	(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%

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments, at December 31, 2012 and December 31, 2011 were as follows:


				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	$	0		$	0		$	64,360
Securities available-for-sale		13,378			0		13,378			0			13,378
Loans receivable held for sale		19,051			0		0			19,051			19,051
Loans receivable held for investment		251,723			0		0			252,043			252,043
Federal Home Loan Bank stock		3,901			N/A		N/A			N/A			N/A
Accrued interest receivable		1,250			0		42			1,208			1,250
Financial Liabilities:
Deposits	$	(257,071	)	$	0	$	(253,155	)	$	0		$	(253,155	)
Federal Home Loan Bank advances		(79,500	)		0		(84,769	)		0			(84,769	)
Junior subordinated debentures		(6,000	)		0		0			(4,852	)		(4,852	)
Other borrowings		(5,000	)		0		0			(4,205	)		(4,205	)
Accrued interest payable		(1,941	)		0		(87	)		(1,854	)		(1,941	)
Advance payments by borrowers for taxes and insurance		(711	)		0		(711	)		0			(711	)


	December 31, 2011
	Carrying Amount			Estimated Fair Value
Financial Assets:
Cash and cash equivalents	$	31,597		$	31,597
Securities available-for-sale		18,979			18,979
Loans receivable held for sale		12,983			12,983
Loans receivable held for investment		322,770			323,090
Federal Home Loan Bank stock		4,089			N/A
Accrued interest receivable		1,698			1,698

Financial Liabilities:
Deposits	$	(294,686	)	$	(294,313	)
Federal Home Loan Bank advances		(83,000	)		(88,911	)
Junior subordinated debentures		(6,000	)		(5,319	)
Other borrowings		(5,000	)		(4,434	)
Advance payments by borrowers for taxes and insurance		(813	)		(813	)
Accrued interest payable		(1,302	)		(1,302	)

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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