Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands):



	Balance as of September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	15,911	$	—	$	15,911	$	—
Mortgage-backed securities	90,323		—		90,323		—
Other debt securities	938		—		938		—
Municipal securities	8,363		—		8,363		—
Total securities available-for-sale	$	115,535	$	—	$	115,535	$	—

Note 7. Fair Value Disclosures, Continued

Measurements of Fair Value (continued):



	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	17,723	$	—	$	17,723	$	—
Mortgage-backed securities:	103,680		—		103,680		—
Municipal securities	8,019		—		8,019		—
Total securities available-for-sale	$	129,422	$	—	$	129,422	$	—

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis

The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):



	Balance as of September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	534	$	—	$	—	$	534
Foreclosed assets	2,888		—		—		2,888



	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	239	$	—	$	—	$	239
Foreclosed assets	2,386		—		—		2,386

Fair Value, Assets Measured On Non-Recurring Basis, Unobservable Input Reconciliation

For Level 3 assets measured at fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).



	Balance as of September 30, 2017		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
Impaired loans	$	534	Appraisal	Appraisal Discounts	24.7	%
Foreclosed assets	2,888		Appraisal	Appraisal Discounts	19.3	%

Note 7. Fair Value Disclosures, Continued

Assets Measured at Fair Value on a Nonrecurring Basis (continued):



	Balance as of December 31, 2016 (in thousands)		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
Impaired loans	$	239	Cash Flow	Discounted Cash Flow / Appraisal Discounts	2.4	%
Foreclosed assets	2,386		Appraisal	Appraisal Discounts	12.2	%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments at September 30, 2017 and December 31, 2016 are as follows (in thousands):



	September 30, 2017				December 31, 2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	84,098	$	84,098	$	68,748	$	68,748
Securities available for sale	115,535		115,535		129,422		129,422
Restricted investments	6,081		N/A		5,628		N/A
Loans, net	866,286		855,882		808,271		803,057

Liabilities:
Noninterest-bearing demand deposits	185,386		185,386		153,483		153,483
Interest-bearing demand deposits	156,953		156,953		162,702		162,702
Money Market and Savings deposits	306,357		306,357		274,605		274,605
Time deposits	311,490		311,755		316,275		316,734
Securities sold under agreements to repurchase	26,542		26,542		26,622		26,622
Federal Home Loan Bank advances and other borrowings	6,000		6,000		18,505		18,505