Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The assets and liabilities measured at fair value on a recurring basis at June 30, 2015, are summarized below:


June 30, 2015 Description	Total carrying value in the consolidated balance sheet at June 30, 2015		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets

Available for sale securities	$	247,673		2,010		243,860		1,803

Liabilities
Interest rate swap	$	198		—		198		—

The assets and liabilities measured at fair value on a recurring basis at December 31, 2014, are summarized below


December 31, 2014 Description	Total carrying value in the consolidated balance sheet 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)
Assets

Available for sale securities	$	303,628		—		302,139		1,489

Liabilities
Interest rate swap	$	390		—		390		—

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for June 30, 2015:


June 30, 2015 Description	Total carrying value in the consolidated balance sheet at 6/ 30/ 2015		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets

Other real estate and other assets owned	$	1,795		—		—	$	1,795

Impaired loans, net of reserve of $746	$	1,828		—		—	$	1,828

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for December 31, 2014:


December 31, 2014 Description	Total carrying value in the consolidated balance sheet at 12/31/2014		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets

Other real estate and other assets owned	$	1,927		—		—	$	1,927

Impaired loans, net of reserve of $1,514	$	3,869		—		—	$	3,869

Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items

The table below includes a roll-forward of the consolidated condensed statement of financial condition items for the six month periods ended June 30, 2015, and June 30, 2014, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify an asset or liability within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 assets and liabilities typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.


	2015				2014
Three month period ended June 30,	Other Assets		Other Liabilities		Other Assets		Other Liabilities
	(Dollars in Thousands)
Fair value, January 1,	$	1,489		—		1,489		—
Change in unrealized losses included in other comprehensive income for assets and liabilities still held at June 30,		306		—		—		—
Accretion of previous discounted amounts		8
Purchases, issuances and settlements, net		—		—		—		—
Transfers in and/or out of Level 3		—		—		—		—


Fair value, June 30,	$	1,803		—		1,489		—

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows at June 30, 2015:


	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
Financial Assets:
Cash and due from banks	$	16,538		16,538		16,538		—		—
Interest-earning deposits		3,145		3,145		3,145		—		—
Securities available for sale		247,673		247,673		2,010		243,860		1,803
Federal Home Loan Bank stock		4,428		4,428		—		4,428		—
Loans held for sale		2,470		2,470		—		2,470		—
Loans receivable		554,806		554,193		—		—		554,193
Accrued interest receivable		3,873		3,873		—		3,873		—
Financial liabilities:
Deposits		717,519		700,283		—		700,283		—
Advances from borrowers for taxes and insurance		792		792		—		792		—
Advances from Federal Home Loan Bank		9,000		9,136		—		9,136		—
Repurchase agreements		48,224		48,485		—		48,485		—
Subordinated debentures		10,310		10,099		—		—		10,099
Off-balance-sheet liabilities:
Market value of interest rate swap		198		198		—		198		—

The estimated fair values of financial instruments were as follows at December 31, 2014:


	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
Financial Assets:
Cash and due from banks	$	34,389		34,389		34,389		—		—
Interest-earning deposits		6,050		6,050		6,050		—		—
Securities available for sale		303,628		303,628		—		302,139		1,489
Federal Home Loan Bank stock		4,428		4,428		—		4,428		—
Loans held for sale		1,444		1,444		—		1,444		—
Loans receivable		539,264		537,493		—		—		537,493
Accrued interest receivable		4,576		4,576		—		4,576		—
Financial liabilities:
Deposits		731,308		714,750		—		714,750		—
Advances from borrowers for taxes and insurance		513		513		—		513		—
Advances from Federal Home Loan Bank		34,000		34,217		—		34,217		—
Repurchase agreements		57,358		57,688		—		57,688		—
Subordinated debentures		10,310		10,099		—		—		10,099
Off-balance-sheet liabilities:
Market value of interest rate swap		390		390		—		390		—