XML 35 R24.htm IDEA: XBRL DOCUMENT v3.20.2
8. Fair Value (Tables)
 9 Months Ended
Sep. 30, 2017
Table Text Block Supplement [Abstract]  
Schedule of Fair Value of Assets on a Recurring Basis

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below.

(in 000’s)   Fair Value Measurements at Reporting Date Using:
 

Assets Measured at

Fair Value at

September 30, 2017

Quoted Prices in Active

Markets for Identical

Assets (Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant Unobservable

Inputs

(Level 3)

Investment securities

available-for-sale:

        
U.S. Government agency securities

 

$ 2,298

 

$ -

 

$ 2,298

 $         -

Government Sponsored

Enterprises residential

mortgage-backed securities

 

 

2,858

 

 

-

 

 

2,858

 -

Money market funds

 

 

131

 

131

 

-

 -

 

Total

 

 

$ 5,287

 

$ 131

 

$ 5,156

 $    -

 

Loans held for sale

 

 

$ 9,827

 

$ -

 

$ 9,827

 $   -

Loans held at fair value

 

 $ 4,645 $    - $        - $ 4,645

 

Servicing asset

 

$ 330

 

$ -

 

$ -

 

$ 330

 

(in 000’s)   Fair Value Measurements at Reporting Date Using:
 

Assets Measured at

Fair Value at

December 31, 2016

Quoted Prices in Active

Markets for Identical

Assets (Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant Unobservable

Inputs

(Level 3)

Investment securities

available-for-sale:

 

        
U.S. Government Agency securities  $ 2,268 $-  $2,268 $      -

Government Sponsored

Enterprises residential

mortgage-backed securities

 3,180 - 3,180 -

 

Money market funds

 

 130 130        - -

 

Total

 

 $5,578 $130 $ 5,548 $    -
Loans held for sale $7,794 $   - $7,794 $   -
Loans held at fair value $4,207 $   - $     -  $ 4,207

 

Servicing asset

 $  313 $   - $     - $    313
Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)

 

Assets measured at fair value

September 30, 2017

 

 

Fair value

December 31, 2016

 

 

Fair Value

 

 

Principal valuation

techniques

 

 

 

Significant observable inputs

September 30, 2017

 

Range of inputs

December 31, 2016

 

Range of inputs

Loans held at fair value: $4,645 $ 4,207 Discounted cash flow Constant prepayment rate

7.73% to

9.76%

7.53% to

9.62%

        Weighted average discount rate 8.68% to 10.80%

8.11% to

10.58%

        Weighted average life

3.13 yrs to

9.77 yrs

3.05yrs to

9.95 yrs

        Projected default rate 0.72% to   5.17% 0.77% to 6.64%

(in 000’s)

 

Assets measured at fair value

September 30, 2017

 

 

Fair value

December 31, 2016

 

 

Fair Value

 

 

Principal valuation

techniques

 

 

 

Significant observable inputs

September 30, 2017

 

Range of inputs

December 31, 2016

 

Range of inputs

Servicing asset $330 $ 313 Discounted cash flow Constant prepayment rate

5.38% to

9.79%

4.89% to

9.96%

        Weighted average discount rate

12.38% to

17.25%

10.50% to

15.31%

        Weighted average life

3.13 yrs to

9.56 yrs

3.05yrs to

9.70 yrs

The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value:

(in 000’s) Loans held at fair value Servicing Asset
Balance at December 31, 2016 $   4,207 $  313
Origination of loans/additions 437 39
Principal repayments/Amortization  (126)  (27)
Change in fair value of financial instruments 127 5
Balance at September 30, 2017 $ 4,645 $  330
Schedule of Fair Value of Assets Measured on a Nonrecurring Basis

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of September 30, 2017 and December 31, 2016, for which a nonrecurring change in fair value has been recorded during the ninemonths ended September 30, 2017and year ended December 31, 2016.

 

Carrying Value at September 30, 2017:

(in 000’s)

 

 

 

Total

Quoted Prices in Active markets for Identical Assets

(Level 1)

 

Significant Other Observable Inputs

(Level 2)

 

Significant Unobservable Inputs

(Level 3)

 

Total fair value gain (loss) during 9months ended

Impaired Loans

 

$ 472

 

$ -

 

$ -

 

$ 472

 

$ -

 

Other real estate owned (“OREO”)

 

$ 447

 

$ -

 

$ -

 

$ 447

 

$ -

 

 

Carrying Value at December 31, 2016:

(in 000’s)

 

 

 

Total

Quoted Prices in Active markets for Identical Assets

(Level 1)

 

Significant Other Observable Inputs

(Level 2)

 

Significant Unobservable Inputs

(Level 3)

 

Total fair value gain (loss) during 12 months ended

Impaired Loans

 

$ 418

 

$ -

 

$ -

 

$418

 

$ -

 

Other real estate owned (“OREO”)

 

$ 447

 

$ -

 

$ -

 

$ 447

 

$ -
Schedule of Fair Value of Financial Instruments at Year-End

The fair value of assets and liabilities not previously disclosed are depicted below:

 

    September 30, 2017 December 31, 2016
  Level in Carrying Fair Carrying Fair
  Value Hierarchy Amount Value Amount Value
(Dollars in thousands)          
Assets:          
Cash and cash equivalents Level 1 $14,802 $14,802 $ 7,803 $  7,803
Loans, net of allowance for loan losses  (1) 25,291 25,499 26,534 26,617
Servicing asset Level 3 330 330 313 313
Accrued interest receivable Level 2 157 157 141 141
Liabilities:          
Demand deposits Level 2 37,629 37629 28,497 28,497
Savings deposits Level 2 11,704 11,704 11,735 11,735
Time deposits (2) 8,625 8,586 10,411 10,,395
Accrued interest payable Level 2 12 12 11 11

 

(1)Level 2 for non-impaired loans; Level 3 for impaired loans.
(2)Level 1 for variable rate instruments, level 3 for fixed rate instruments