Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Assets Measured at Fair Value on Recurring Basis

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

	Fair Value Measurements at March 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	$	0	$	12,180	$	0	$	12,180

	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

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

The following table provides information regarding the carrying values of 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.

	March 31, 2013		December 31, 2012
	(In thousands)
Assets:
Non-performing loans receivable held-for-sale:
One-to-four units	$	0	$	6,656
Five or more units		3,033		1,956
Commercial real estate		3,004		0
Church		2,023		1,556
Impaired loans carried at fair value of collateral:
One-to-four units		1,235		1,284
Five or more units		0		1,679
Commercial real estate		417		3,385
Church		4,420		6,649
Real estate owned:
Commercial real estate		2,591		2,752
Church		6,703		5,411

Schedule of Gains (Losses) Recognized on Assets Measured at Fair Value on Non-Recurring Basis

The following table provides information regarding gains (losses) recognized on assets measured at fair value on a non-recurring basis for the three months ended March 31, 2013 and 2012.

	Three Months Ended March 31,
	2013			2012
Non-performing loans receivable held-for-sale	$	(471	)	$	1
Impaired loans carried at fair value of collateral		(34	)		(1,090	)
Real estate owned		0			19
Total	$	(505	)	$	(1,070	)

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 March 31, 2013:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
	(Dollars in thousands)
Non-performing loans held for sale – five or more units	$	3,033	Sales comparison approach	Adjustment for differences between the comparable sales	-26% to 20%
			Income approach	Capitalization rate	6% to 9%
Non-performing loans held for sale – commercial real estate		3,004	Sales comparison approach	Adjustment for differences between the comparable sales	-49% to 1%
			Income approach	Capitalization rate	7% to 9%
Non-performing loans held for sale – church		2,023	Sales comparison approach	Adjustment for differences between the comparable sales	-27% to 29%
Impaired loans – one-to-four units		1,235	Sales comparison approach	Adjustment for differences between the comparable sales	-5% to 18%
Impaired loans – commercial real estate		417	Sales comparison approach	Adjustment for differences between the comparable sales	2%
			Income approach	Capitalization rate	4.5%
Impaired loans – church		4,420	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		2,591	Sales comparison approach	Adjustment for differences between the comparable sales	-67% to 1%
			Income approach	Capitalization rate	8% to 11%
Real estate owned – church		6,703	Sales comparison approach	Adjustment for differences between the comparable sales	-34% 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 March 31, 2013 and December 31, 2012 were as follows:

	Carrying Value			Fair Value Measurements at March 31, 2013 Using
				Level 1		Level 2			Level 3			Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	75,774		$	75,774	$	0		$	0		$	75,774
Securities available-for-sale		12,180			0		12,180			0			12,180
Loans receivable held for sale		15,306			0		0			15,306			15,306
Loans receivable held for investment		235,107			0		0			234,852			234,852
Federal Home Loan Bank stock		3,737			N/A		N/A			N/A			N/A
Accrued interest receivable		1,176			0		59			1,117			1,176
Financial Liabilities:
Deposits	$	(247,648	)	$	0	$	244,197		$	0		$	244,197
Federal Home Loan Bank advances		(79,500	)		0		84,397			0			84,397
Junior subordinated debentures		(6,000	)		0		0			(5,061	)		(5,061	)
Other borrowings		(5,000	)		0		0			(4,353	)		(4,353	)
Accrued interest payable		(2,171	)		0		(137	)		(1,741	)		(1,878	)
Advance payments by borrowers for taxes and insurance		(332	)		0		(332	)		0			(332	)

	Carrying Value			Fair Value Measurements at December 31, 2012 Using
				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	)		(1,527	)		(1,614	)
Advance payments by borrowers for taxes and insurance		(711	)		0		(711	)		0			(711	)