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Fair Values of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Values of Financial Instruments [Abstract]  
Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis



The following table presents the fair value measurements of assets and liabilities measured on a recurring basis and level within the ASC 820 fair value hierarchy.



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements Using



Fair Value

 

Level 1

 

Level 2

 

Level 3

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

 94,263 

 

$

 -

 

$

 94,263 

 

$

 -

Collateralized mortgage obligations

 

 109,617 

 

 

 -

 

 

 109,617 

 

 

 -

Municipal obligations

 

 138,478 

 

 

 -

 

 

 138,478 

 

 

 -

Corporate obligations

 

 11,787 

 

 

 -

 

 

 9,066 

 

 

 2,721 

Interest rate swap asset

 

 867 

 

 

 -

 

 

 867 

 

 

 -

Interest rate swap liability

 

 867 

 

 

 -

 

 

 867 

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements Using



Fair Value

 

Level 1

 

Level 2

 

Level 3

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

 67,798 

 

$

 -

 

$

 67,798 

 

$

 -

Collateralized mortgage obligations

 

 87,250 

 

 

 -

 

 

 87,250 

 

 

 -

Municipal obligations

 

 110,495 

 

 

 -

 

 

 110,495 

 

 

 -

Corporate obligations

 

 11,835 

 

 

 -

 

 

 9,114 

 

 

 2,721 

Interest rate swap asset

 

 525 

 

 

 -

 

 

 525 

 

 

 -

Interest rate swap liability

 

 525 

 

 

 -

 

 

 525 

 

 

 -



Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

The following is a reconciliation of the beginning and ending balances for the three months ended March 31, 2018 and 2017 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:



 

 

 

 

 



 

 

 

 

 



Three Months Ended



March 31,



2018

 

2017

Beginning balance

$

 2,721 

 

$

 2,588 

Total realized and unrealized gains (losses)

 

 

 

 

 

Included in net income

 

 -

 

 

 -

Included in other comprehensive income (loss)

 

 -

 

 

 -

Purchases, issuances and settlements

 

 -

 

 

 -

Ending balance

$

 2,721 

 

$

 2,588 

Total gains for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date

$

 -

 

$

 -



Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

March 31, 2018

 

Fair Value

 

Valuation Technique

 

Unobservable Inputs

 

Range 

 

Trust Preferred Securities

 

$

 2,721 

 

Discounted cash flow

 

Discount rate

 

7.0 - 8.0

%



 

 

 

 

 

 

Constant prepayment rate

 

 2.0 

%



 

 

 

 

 

 

Cumulative projected prepayments

 

 40.0 

%



 

 

 

 

 

 

Probability of default

 

1.7 - 2.2

%



 

 

 

 

 

 

Projected cures given deferral

 

0 - 15.0

%



 

 

 

 

 

 

Loss severity 

 

29.3 - 34.9

%

Impaired loans (collateral dependent)

 

$

 591 

 

Third party valuations

 

Discount to reflect realizable value 

 

 8.97 

%







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Fair Value

 

Valuation Technique

 

Unobservable Inputs

 

Range 

 

Trust Preferred Securities

 

$

 2,721 

 

Discounted cash flow

 

Discount rate

 

7.0 - 8.0

%



 

 

 

 

 

 

Constant prepayment rate

 

 2.0 

%



 

 

 

 

 

 

Cumulative projected prepayments

 

 40.0 

%



 

 

 

 

 

 

Probability of default

 

1.7 - 2.2

%



 

 

 

 

 

 

Projected cures given deferral

 

0 - 15.0

%



 

 

 

 

 

 

Loss severity 

 

29.3 - 34.9

%



Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows: 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Fair Value Measurements Using

March 31, 2018

 

 

Carrying Amount

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 41,069 

 

$

 41,069 

 

$

 41,069 

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

 4,627 

 

 

 4,627 

 

 

 4,627 

 

 

 -

 

 

 -

Loans held for sale

 

 

 3,686 

 

 

 3,740 

 

 

 -

 

 

 3,740 

 

 

 -

Loans, net

 

 

 1,436,889 

 

 

 1,407,437 

 

 

 -

 

 

 -

 

 

 1,407,437 

FHLB stock

 

 

 12,820 

 

 

 12,820 

 

 

 -

 

 

 12,820 

 

 

 -

Interest receivable

 

 

 5,809 

 

 

 5,809 

 

 

 -

 

 

 5,809 

 

 

 -

Interest rate swap asset

 

 

 867 

 

 

 867 

 

 

 -

 

 

 867 

 

 

 -

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 1,540,452 

 

 

 1,534,582 

 

 

 1,083,726 

 

 

 -

 

 

 450,856 

FHLB advances

 

 

 230,546 

 

 

 227,428 

 

 

 -

 

 

 227,428 

 

 

 -

Other borrowings

 

 

 18,110 

 

 

 18,000 

 

 

 -

 

 

 18,000 

 

 

 -

Interest payable

 

 

 593 

 

 

 593 

 

 

 -

 

 

 593 

 

 

 -

Interest rate swap liability

 

 

 867 

 

 

 867 

 

 

 -

 

 

 867 

 

 

 -





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Fair Value Measurements Using

December 31, 2017

 

 

Carrying Amount

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 27,341 

 

$

 27,341 

 

$

 27,341 

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

 1,853 

 

 

 1,853 

 

 

 1,853 

 

 

 -

 

 

 -

Loans held for sale

 

 

 4,577 

 

 

 4,584 

 

 

 -

 

 

 4,584 

 

 

 -

Loans, net

 

 

 1,167,758 

 

 

 1,150,005 

 

 

 -

 

 

 -

 

 

 1,150,005 

FHLB stock

 

 

 11,183 

 

 

 11,183 

 

 

 -

 

 

 11,183 

 

 

 -

Interest receivable

 

 

 5,282 

 

 

 5,282 

 

 

 -

 

 

 5,282 

 

 

 -

Interest rate swap asset

 

 

 525 

 

 

 525 

 

 

 -

 

 

 525 

 

 

 -

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 1,202,034 

 

 

 1,199,781 

 

 

 830,877 

 

 

 -

 

 

 368,904 

FHLB advances

 

 

 217,163 

 

 

 215,326 

 

 

 -

 

 

 215,326 

 

 

 -

Other borrowings

 

 

 4,232 

 

 

 4,300 

 

 

 -

 

 

 4,300 

 

 

 -

Interest payable

 

 

 456 

 

 

 456 

 

 

 -

 

 

 456 

 

 

 -

Interest rate swap liability

 

 

 525 

 

 

 525 

 

 

 -

 

 

 525 

 

 

 -