XML 52 R33.htm IDEA: XBRL DOCUMENT v3.19.3
Fair Values of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Values of Financial Instruments [Abstract]  
Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis

The following tables present 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

September 30, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Available for sale securities

 

 

 

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

115,456

 

$

 -

 

$

115,456

 

$

 -

Collateralized mortgage obligations

 

 

100,272

 

 

 -

 

 

100,272

 

 

 -

Municipal obligations

 

 

164,899

 

 

 -

 

 

164,899

 

 

 -

Corporate obligations

 

 

2,349

 

 

 -

 

 

 -

 

 

2,349

Interest rate swap asset

 

 

1,718

 

 

 -

 

 

1,718

 

 

 -

Interest rate swap liability

 

 

1,718

 

 

 -

 

 

1,718

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

December 31, 2018

 

 

  

 

 

  

 

 

  

 

 

  

Available for sale securities

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

104,343

 

$

 -

 

$

104,343

 

$

 -

Collateralized mortgage obligations

 

 

109,281

 

 

 -

 

 

109,281

 

 

 -

Municipal obligations

 

 

154,896

 

 

 -

 

 

154,896

 

 

 -

Corporate obligations

 

 

2,355

 

 

 -

 

 

 -

 

 

2,355

Interest rate swap asset

 

 

599

 

 

 -

 

 

599

 

 

 -

Interest rate swap liability

 

 

599

 

 

 -

 

 

599

 

 

 -

 

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 and nine months ended September 30, 2019 and 2018 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

Beginning balance

 

$

2,351

 

$

2,721

 

$

2,355

 

$

2,721

 

Total realized and unrealized gains (losses)

 

 

 

 

 

  

 

 

  

 

 

  

 

Included in net income

 

 

 -

 

 

(44)

 

 

 -

 

 

(44)

 

Included in other comprehensive income (loss)

 

 

 -

 

 

326

 

 

 -

 

 

326

 

Purchases, issuances and settlements

 

 

(2)

 

 

(883)

 

 

(6)

 

 

(883)

 

Ending balance

 

$

2,349

 

$

2,120

 

$

2,349

 

$

2,120

 

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 tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range

 

Trust Preferred Securities

 

$

2,349

 

Discounted cash flow

 

Discount rate

 

6.8

%

 

 

 

 

 

  

 

Constant prepayment rate

 

2.0

%

 

 

 

 

 

  

 

Cumulative projected prepayments

 

40.0

%

 

 

 

 

 

  

 

Probability of default

 

1.7

%

 

 

 

 

 

  

 

Projected cures given deferral

 

0 - 15.0

%

 

 

 

 

 

  

 

Loss severity

 

21.4

%

Other real estate owned

 

$

235

 

Third party valuations

 

Discount to reflect realizable value less estimated selling costs

 

0 - 24.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range

 

Trust Preferred Securities

 

$

2,355

 

Discounted cash flow

 

Discount rate

 

6.8

%

 

 

 

  

 

  

 

Constant prepayment rate

 

2.0

%

 

 

 

  

 

  

 

Cumulative projected prepayments

 

40.0

%

 

 

 

  

 

  

 

Probability of default

 

1.7

%

 

 

 

  

 

  

 

Projected cures given deferral

 

0 - 15.0

%

 

 

 

  

 

  

 

Loss severity

 

21.4

%

 

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

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

    

Amount

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

Assets

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Cash and cash equivalents

 

$

31,315

 

$

31,315

 

$

31,315

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

4,023

 

 

4,023

 

 

4,023

 

 

 -

 

 

 -

Loans held for sale

 

 

19,643

 

 

20,860

 

 

 -

 

 

20,860

 

 

 -

Loans, net

 

 

1,483,611

 

 

1,457,202

 

 

 -

 

 

 -

 

 

1,457,202

FHLB stock

 

 

13,115

 

 

13,115

 

 

 -

 

 

13,115

 

 

 -

Interest receivable

 

 

6,895

 

 

6,895

 

 

 -

 

 

6,895

 

 

 -

Liabilities

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,573,088

 

 

1,574,598

 

 

1,067,270

 

 

 -

 

 

507,328

FHLB advances

 

 

239,661

 

 

240,922

 

 

 -

 

 

240,922

 

 

 -

Other borrowings

 

 

17,653

 

 

17,255

 

 

 -

 

 

17,255

 

 

 -

Interest payable

 

 

875

 

 

875

 

 

 -

 

 

875

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

    

Amount

    

Fair Value

    

Level 1

    

Level 2

    

Level 3

Assets

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Cash and cash equivalents

 

$

33,414

 

$

33,414

 

$

33,414

 

$

 -

 

$

 -

Interest-bearing time deposits

 

 

4,239

 

 

4,239

 

 

4,239

 

 

 -

 

 

 -

Loans held for sale

 

 

3,987

 

 

4,011

 

 

 -

 

 

4,011

 

 

 -

Loans, net

 

 

1,482,662

 

 

1,456,270

 

 

 -

 

 

 -

 

 

1,456,270

FHLB stock

 

 

13,034

 

 

13,034

 

 

 -

 

 

13,034

 

 

 -

Interest receivable

 

 

6,940

 

 

6,940

 

 

 -

 

 

6,940

 

 

 -

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,519,225

 

 

1,514,852

 

 

1,030,785

 

 

 -

 

 

484,067

FHLB advances

 

 

292,497

 

 

290,092

 

 

 -

 

 

290,092

 

 

 -

Other borrowings

 

 

17,988

 

 

17,665

 

 

 -

 

 

17,665

 

 

 -

Interest payable

 

 

1,075

 

 

1,075

 

 

 -

 

 

1,075

 

 

 -