Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis

Thefollowingtablesshowtherecordedamountsofassetsandliabilitiesmeasuredatfairvalueona recurringbasisas of:

			Fair Value Measurement Level
	Total		Level 1		Level 2		Level 3
(dollars in thousands)
September 30, 2014:
Investment securities available for sale
US Treasury securities	$	300	$	—	$	300	$	—
FNMA and FHLB Agency notes		10,173		—		10,173		—
Agency mortgage-backed securities		124,287		—		124,287		—
Total assets at fair value on a recurring basis	$	134,760	$	—	$	134,760	$	—
December 31, 2013:
Investment securities available for sale
US Treasury securities	$	300	$	—	$	300	$	—
FNMA and FHLB Agency notes		9,780		—		9,780		—
Agency mortgage-backed securities		49,031		—		49,031		—
Total assets at fair value on a recurring basis	$	59,111	$	—	$	59,111	$	—

Regarding Assets Measured at Fair Value on Nonrecurring Basis

Information regarding assets measured at fair value on a nonrecurring basis is set forth in the table below as of:

	September 30, 2014
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Assets at Fair Value:
Impaired Loans	$	3,136	$	—	$	—	$	3,136
REO		334		—		334		—
Total	$	3,470	$	—	$	334	$	3,136

Quantitative and Nonrecurring Information for Level 3 Fair Value Measurements

The following table provides quantitative information about the Company’s nonrecurring Level 3 fair value measurements as of:

(dollars in thousands)	Valuation Technique		Unobservable Input		Estimate Used		Fair Value
June 30, 2014:
Impaired Loans		Third party appraisal		Selling costs		9.0%	$	3,136
December 31, 2013:
REO		Third party appraisal		Selling costs		9.0%	$	375

Carrying Amounts and Estimated Fair Value of Financial Instruments

The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of:

	Carrying		Fair Value Measurement Level
(dollars in thousands)	Value		1		2		3		Total
September 30, 2014:
Assets:
Cash and cash equivalents	$	28,842	$	28,842	$	—	$	—	$	28,842
Securities AFS		134,760		—		134,760		—		134,760
Loans		1,091,625		—		—		1,138,059		1,138,059
Investment in FHLB stock		9,776		9,776		—		—		9,776
Liabilities:
Deposits		951,164		685,448		265,626		—		951,074
Borrowings		228,682		-		208,000		20,682		228,682
December 31, 2013:
Assets:
Cash and cash equivalents	$	56,954	$	56,954	$	—	$	—	$	56,954
Securities AFS		59,111		—		59,111		—		59,111
Loans		893,730		—		—		933,695		933,695
Investment in FHLB stock		6,721		6,721		—		—		6,721
Liabilities:
Deposits		802,037		556,171		245,920		—		802,091
Borrowings		141,063		—		134,000		7,063		141,063