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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule Of Available For Sale Securities Measured At Fair Value On A Recurring Basis

The following tables present securities available-for-sale measured at fair value on a recurring basis at the dates indicated:


	Securities Available-for-Sale
	Level 1		Level 2		Level 3		Total
At March 31, 2019
U.S. agency securities	$	—	$	13,045	$	—	$	13,045
Corporate securities		—		8,540		—		8,540
Municipal bonds		—		14,474		—		14,474
Mortgage-backed securities		—		49,252		—		49,252
U.S. Small Business Administration securities		—		14,472		—		14,472
Total	$	—	$	99,783	$	—	$	99,783


	Securities Available-for-Sale
	Level 1		Level 2		Level 3		Total
At December 31, 2018
U.S. agency securities	$	—	$	15,887	$	—	$	15,887
Corporate securities		—		6,865		—		6,865
Municipal bonds		—		14,194		—		14,194
Mortgage-backed securities		—		44,836		—		44,836
U.S. Small Business Administration securities		—		15,423		—		15,423
Total	$	—	$	97,205	$	—	$	97,205

Fair Value, Mortgage Loans Held for Sale

The following table presents mortgage loans held for sale measured at fair value on a recurring basis at the dates indicated:


	Mortgage Loans Held for Sale
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	45,591	$	—	$	45,591
December 31, 2018	$	—	$	51,195	$	—	$	51,195

Schedule of fair value of interest rate lock commitments

The following tables present the fair value of interest rate lock commitments with customers, individual forward sale commitments with investors, and paired off commitments with investors measured at their fair value on a recurring basis at the dates indicated:


	Interest Rate Lock Commitments with Customers
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	—	$	686	$	686
December 31, 2018	$	—	$	—	$	503	$	503

Schedule of forward sale commitments with investors


	Individual Forward Sale Commitments with Investors
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	(301)		(96)	$	(397)
December 31, 2018	$	—	$	(540)	$	(34)	$	(574)

Schedule of paired off commitments with investors


	Paired Off Commitments with Investors
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	(160)	$	—	$	(160)
December 31, 2018	$	—	$	(64)	$	—	$	(64)

Schedule of impaired loans and other real estate owned

The following tables present impaired loans, OREO and servicing rights measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting periods indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated.


	Impaired Loans
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	—	$	2,981	$	2,981
December 31, 2018	$	—	$	—	$	3,894	$	3,894


	OREO
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	—	$	167	$	167
December 31, 2018	$	—	$	—	$	689	$	689

Fair value reconciliation - Level 3 on recurring basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three months ended March 31, 2019 and 2018:


									Net change in fair
									value for gains/
			Purchases						(losses) relating to
	Beginning		and		Sales and		Ending		items held at end of
	Balance		issuances		settlements		Balance		at end of year
2019
Interest rate lock commitments with customers	$	503	$	1,931	$	(1,748)	$	686	$	183
Individual forward sale commitments with investors		(34)		(162)		100		(96)		(62)
2018
Interest rate lock commitments with customers	$	726	$	2,435	$	(2,346)	$	815	$	89
Individual forward sale commitments with investors		51		573		(620)		4		(47)

Fair Value, by Balance Sheet Grouping

The following table provides estimated fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018, whether or not recognized at fair value on the Consolidated Balance Sheets:


	March 31,				December 31,
	2019				2018
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Level 1 inputs:
Cash and cash equivalents	$	63,074	$	63,074	$	32,779	$	32,779
Certificates of deposit at other financial institutions		22,073		22,073		22,074		22,074
Level 2 inputs:
Securities available-for-sale, at fair value		99,783		99,783		97,205		97,205
Loans held for sale, at fair value		45,591		45,591		51,195		51,195
FHLB stock, at cost		8,157		8,157		9,887		9,887
Accrued interest receivable		5,812		5,812		5,761		5,761
Level 3 inputs:
Loans receivable, gross		1,297,070		1,302,247		1,326,238		1,320,341
Servicing rights, held at lower of cost or fair value		10,611		12,914		10,429		14,593
Fair value interest rate locks with customers		686		686		503		503
Financial Liabilities
Level 2 inputs:
Deposits		1,321,550		1,310,404		1,274,219		1,261,096
Borrowings		86,824		86,609		137,149		136,873
Subordinated note		9,870		10,242		9,865		10,242
Accrued interest payable		504		504		344		344
Paired off commitments with investors		160		160		64		64
Individual forward sale commitments with investors		301		301		540		540
Level 3 inputs:
Individual forward sale commitments with investors		96		96		34		34

Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Valuation assumptions used in determining the fair value of servicing rights


	OREO
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	—	$	167	$	167
December 31, 2018	$	—	$	—	$	689	$	689


	Servicing Rights
	Level 1		Level 2		Level 3		Total
March 31, 2019	$	—	$	—	$	12,914	$	12,914
December 31, 2018	$	—	$	—	$	14,593	$	14,593

Quantitative Information about Level 3 Fair Value Measurements - Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at March 31, 2019:


Level 3		Significant	Range	Weighted
Fair Value Instruments	Valuation Technique	Unobservable Inputs	(Weighted Average)	Average
RECURRING
Interest rate lock commitments with customers	Quoted market prices	Pull-through expectations	80% - 99%	95.0	%
Individual forward sale commitments with investors	Quoted market prices	Pull-through expectations	80% - 99%	95.0	%
NONRECURRING
Impaired loans	Fair value of underlying collateral	Discount applied to the obtained appraisal	0% - 50%	11.2	%
OREO	Fair value of collateral	Discount applied to the obtained appraisal	0% - 75%	35.7	%
Servicing rights	Industry sources	Pre-payment speeds	10% - 26%	13.5	%