Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at March 31, 2020 and December 31, 2019:



	Fair Value Measurements at March 31, 2020
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	16,008	$	—	$	16,008	$	—
Freddie Mac	4,347		—		4,347		—
Ginnie Mae	21,669		—		21,669		—
Other	10,884		—		10,884		—
Municipal bonds	10,956		—		10,956		—
U.S. Government agencies	43,188		—		43,188		—
Corporate bonds	25,107		—		25,107		—
Total available-for-sale investments	132,159		—		132,159		—

Liabilities:
Derivative fair value liability	3,287		—		3,287		—



	Fair Value Measurements at December 31, 2019
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	15,629	$	—	$	15,629	$	—
Freddie Mac	4,292		—		4,292		—
Ginnie Mae	23,050		—		23,050		—
Other	11,448		—		11,448		—
Municipal bonds	10,911		—		10,911		—
U.S. Government agencies	45,750		—		45,750		—
Corporate bonds	25,521		—		25,521		—
Total available-for-sale investments	136,601		—		136,601		—
Derivative fair value asset	426		—		426		—
Total	$	137,027	$	—	$	137,027	$	—

Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at March 31, 2020, and December 31, 2019:



	Fair Value Measurements at March 31, 2020
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Impaired loans (included in loans receivable, net) ⁽¹⁾	$	22,840	$	—	$	—	$	22,840
OREO	454		—		—		454
Total	$	23,294	$	—	$	—	$	23,294

_____________

⁽¹⁾Total fair value of impaired loans is net of $29,000 of specific reserves on performing TDRs.



	Fair Value Measurements at December 31, 2019
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Impaired loans (included in loans receivable, net) ⁽¹⁾	$	19,939	$	—	$	—	$	19,939
OREO	454		—		—		454
Total	$	20,393	$	—	$	—	$	20,393

_____________

⁽¹⁾Total fair value of impaired loans is net of $31,000 of specific reserves on performing TDRs.

Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019:



	March 31, 2020
	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired Loans	$	22,840	Market approach	Appraised value discounted by market or borrower conditions	0.0% (0.0%)

OREO	$	454	Market approach	Appraised value less selling costs	0.0% (0.0%)



	December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired Loans	$	19,939	Market approach	Appraised value discounted by market or borrower conditions	0.0% (0.0%)

OREO	$	454	Market approach	Appraised value less selling costs	0.0% (0.0%)

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated:



	March 31, 2020
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	6,453	$	6,453	$	6,453	$	—	$	—
Interest-earning deposits with banks	22,063		22,063		22,063		—		—
Investments available-for-sale	132,159		132,159		—		132,159		—
Investments held-to-maturity	2,371		2,371		—		2,371		—
Loans receivable, net	1,092,128		1,088,184		—		—		1,088,184
FHLB stock	8,010		8,010		—		8,010		—
Accrued interest receivable	4,302		4,302		—		4,302		—

Financial Liabilities:
Deposits	536,850		536,850		536,850		—		—
Certificates of deposit, retail	437,676		448,700		—		448,700		—
Certificates of deposit, brokered	25,457		25,546		—		25,546		—
Advances from the FHLB	160,000		163,306		—		163,306		—
Accrued interest payable	236		236		—		236		—
Derivative fair value liability	3,287		3,287		—		3,287		—



	December 31, 2019
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	10,094	$	10,094	$	10,094	$	—	$	—
Interest-earning deposits with banks	12,896		12,896		12,896		—		—
Investments available-for-sale	136,601		136,601		—		136,601		—
Loans receivable, net	1,108,462		1,096,499		—		—		1,096,499
FHLB stock	7,009		7,009		—		7,009		—
Accrued interest receivable	4,138		4,138		—		4,138		—
Derivative fair value asset	426		426		—		426		—

Financial Liabilities:
Deposits	513,959		513,959		513,959		—		—
Certificates of deposit, retail	425,103		430,418		—		430,418		—
Certificates of deposit, brokered	94,472		94,556		—		94,556		—
Advances from the FHLB	137,700		137,706		—		137,706		—
Accrued interest payable	285		285		—		285		—