Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

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

Information about Level in Fair Value Hierarchy for Financial Instruments

The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of September 30, 2019 and December 31, 2018 (in thousands):

	September 30, 2019				Fair Value Measurements Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Cash and cash equivalents	$	58,873	$	58,873	$	58,873	$	—	$	—
Available-for-sale securities	7,841		7,841		—		7,841		—
Loans held-for-sale	1,644		1,644		—		1,644		—
Loans held-for-portfolio	607,285		610,825		—		—		610,825
Mortgage servicing rights	3,226		3,226		—		—		3,226
FHLB stock	1,358		1,358		—		1,358		—
FINANCIAL LIABILITIES:
Non-maturity deposits	367,137		367,137		—		367,137		—
Time deposits	242,484		245,878		—		245,878		—
Borrowings	12,450		12,450		—		12,450		—

	December 31, 2018				Fair Value Measurements Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Cash and cash equivalents	$	61,810	$	61,810	$	61,810	$	—	$	—
Available-for-sale securities	4,957		4,957		—		4,957		—
Loans held-for-sale	1,172		1,172		—		1,172		—
Loans held-for-portfolio	613,769		613,371		—		—		613,371
Mortgage servicing rights	3,414		3,414		—		—		3,414
FHLB stock	4,134		4,134		—		4,134		—
FINANCIAL LIABILITIES:
Non-maturity deposits	361,776		361,776		—		361,776		—
Time deposits	191,825		191,679		—		191,679		—
Borrowings	84,000		84,000		—		84,000		—

Schedule of Fair Value Measured on Recurring Basis

The following tables present the balance of assets measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 (in thousands):

	Fair Value at September 30, 2019
Description	Total		Level 1		Level 2		Level 3
Treasury bills	$	52	$	52	$	—	$	—
Municipal bonds	3,383		—		3,383		—
Agency mortgage-backed securities	4,406		—		4,406		—
Mortgage servicing rights	3,226		—		—		3,226

	Fair Value at December 31, 2018
Description	Total		Level 1		Level 2		Level 3
Municipal bonds	$	3,317	$	—	$	3,317	$	—
Agency mortgage-backed securities	1,640		—		1,640		—
Mortgage servicing rights	3,414		—		—		3,414

Schedule of Fair Value Measured on Nonrecurring Basis

The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands):

	Fair Value at September 30, 2019
	Total		Level 1		Level 2		Level 3
OREO and repossessed assets	$	1,069	$	—	$	—	$	1,069
Impaired loans	10,704		—		—		10,704

	Fair Value at December 31, 2018
	Total		Level 1		Level 2		Level 3
OREO and repossessed assets	$	575	$	—	$	—	$	575
Impaired loans	5,838		—		—		5,838

Recurring

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

Quantitative Information

The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018:

September 30, 2019
Financial Instrument	Valuation Technique	Unobservable Input(s)	Range (Weighted-Average)
Mortgage Servicing Rights	Discounted cash flow	Prepayment speed assumption		140%-648% (196%)
		Discount rate		12.5%-13.5% (12.5%)

December 31, 2018
Financial Instrument	Valuation Technique	Unobservable Input(s)	Range (Weighted-Average)
Mortgage Servicing Rights	Discounted cash flow	Prepayment speed assumption		80-515% (123%)
		Discount rate		12.5%-13.5% (12.5%)

Nonrecurring

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

Quantitative Information

The following tables provide a description of the valuation technique, observable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at September 30, 2019 and December 31, 2018:

September 30, 2019
Financial Instrument	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
OREO	Market approach	Adjustment for differences between comparable sales	0-0% (0%)
Impaired loans	Market approach	Adjustment for differences between comparable sales	0-100% (7%)

December 31, 2018
Financial Instrument	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
OREO	Market approach	Adjusted for difference between comparable sales	0-0% (0%)
Impaired loans	Market approach	Adjusted for difference between comparable sales	0-100% (13%)