Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Assets And Liabilities Measured At Fair Value On A Recurring Basis, Including Financial Assets And Liabilities


	Fair Value Measurements at September 30, 2019 using Significant Other Observable Inputs
	(Level 2)
	(unaudited)
Financial Assets:
Securities available for sale:
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	9,007
Mortgage-backed securities - residential		138
Collateralized mortgage obligations		38
Total securities available for sale	$	9,183
Loans held for sale	$	82,382
Yield maintenance provisions (embedded derivatives)	$	14
Interest rate lock commitments	$	3,144
Financial Liabilities:
Interest-rate swaps	$	14
TBA Mortgage-back securities	$	222


	Fair Value Measurements at December 31, 2018 using Significant Other Observable Inputs
	(Level 2)
Financial Assets:
Securities available for sale:
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	9,881
Mortgage-backed securities - residential		170
Collateralized mortgage obligations		63
Total securities available for sale	$	10,114
Loans held for sale	$	17,385
Yield maintenance provisions (embedded derivatives)	$	17
Interest rate lock commitments	$	721
Financial Liabilities:
Interest-rate swaps	$	17
TBA Mortgage-backed securities	$	342

Assets And Liabilities Measured At Fair Value On A Non-Recurring Basis


Fair Value Measurements at September 30, 2019 Using
Significant Unobservable Inputs (Level 3)
(unaudited)
Impaired loans:
Commercial	$	88
Real Estate:
Single-family residential		108
Commercial:
Non-owner occupied		4,453
Total impaired loans	$	4,649


Fair Value Measurements at December 31, 2018 Using
Significant Unobservable Inputs (Level 3)

Impaired loans:
Commercial	$	100
Real Estate:
Single-family residential		110
Commercial:
Non-owner occupied		2,804
Total impaired loans	$	3,014

Financial Instruments Measured At Fair Value On A 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 September 30, 2019 (unaudited):


		Fair Value	Valuation Technique(s)	Unobservable Inputs	(Range) Weighted Average
Impaired loans:
Commercial	$	88	Comparable sales approach	Adjustment for differences between the comparable market transactions	2.06%
Real estate:
Single-family residential		108	Comparable sales approach	Adjustment for differences between the comparable market transactions	3.61%
Commercial:
Non-owner occupied		4,453	Comparable sales approach	Adjustment for differences between the comparable market transactions	(-2.58%, 8.61%) 1.52%

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, 2018:


		Fair Value	Valuation Technique(s)	Unobservable Inputs	(Range) Weighted Average
Impaired loans:
Commercial	$	100	Comparable sales approach	Adjustment for differences between the comparable market transactions	3.48%
Real estate:
Single -family residential		110	Comparable sales approach	Adjustment for differences between the comparable market transactions	3.61%
Commercial:
Non-owner occupied		2,804	Comparable sales approach	Adjustment for differences between the comparable market transactions	(3.48%, 8.61%) 5.02%

Aggregate Fair Value, Contractual Balance (Including Accrued Interest) And Gain Or Loss



	September 30, 2019		December 31, 2018
	(unaudited)
Aggregate fair value	$	82,382	$	17,385
Contractual balance		81,025		17,008
Gain (loss)	$	1,357	$	377

Amount Of Gains And Losses From Changes In Fair Value Included In Earnings


	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
	(unaudited)				(unaudited)
Interest income	$	486	$	285	$	976	$	451
Interest expense		-		-		-		-
Change in fair value		204		(208)		980		66
Total change in fair value	$	690	$	77	$	1,956	$	517

Carrying Amounts And Estimated Fair Values Of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2019 were as follows:


	Fair Value Measurements at September 30, 2019 Using:
	Carrying
(unaudited)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	37,299	$	37,299	$	-	$	-	$	37,299
Interest-bearing deposits in other financial institutions		100		100		-		-		100
Securities available for sale		9,183		-		9,183		-		9,183
Loans held for sale		82,382		-		82,382		-		82,382
Loans and leases, net		630,459		-		-		626,738		626,738
FHLB and FRB stock		3,969		n/a		n/a		n/a		n/a
Accrued interest receivable		2,339		20		64		2,256		2,340
Yield maintenance provisions (embedded derivatives)		14		-		14		-		14
Interest rate lock commitments		3,144		-		3,144		-		3,144

Financial liabilities
Deposits	$	(685,947)	$	(338,847)	$	(351,138)	$	-	$	(689,985)
FHLB advances and other borrowings		(22,500)		-		(22,764)		-		(22,764)
Advances by borrowers for taxes and insurance		(509)		-		-		(509)		(509)
Subordinated debentures		(14,796)		-		(15,865)		-		(15,865)
Accrued interest payable		(498)		-		(498)		-		(498)
Interest-rate swaps		(14)		-		(14)		-		(14)
TBA mortgage-back securities		(222)		-		(222)		-		(222)

The carrying amounts and estimated fair values of financial instruments at December 31, 2018 were as follows:



	Fair Value Measurements at December 31, 2018 Using:
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	67,304	$	67,304	$	-	$	-	$	67,304
Interest-bearing deposits in other financial institutions		100		100		-		-		100
Securities available for sale		10,114		-		10,114		-		10,114
Loans held for sale		17,385		-		17,385		-		17,385
Loans and leases, net		550,683		-		-		549,599		549,599
FHLB stock		3,476		n/a		n/a		n/a		n/a
Accrued interest receivable		2,181		45		40		2,097		2,182
Yield maintenance provisions (embedded derivatives)		17		-		17		-		17
Interest rate lock commitments		721		-		721		-		721

Financial liabilities
Deposits	$	(579,786)	$	(306,121)	$	(272,924)	$	-	$	(579,045)
FHLB advances and other borrowings		(19,500)		-		(19,589)		-		(19,589)
Advances by borrowers for taxes and insurance		(827)		-		-		(827)		(827)
Subordinated debentures		(14,767)		-		(14,280)		-		(14,280)
Accrued interest payable		(231)		-		(231)		-		(231)
Interest-rate swaps		(17)		-		(17)		-		(17)
TBA mortgage-backed securities		(342)		-		(342)		-		(342)