8. Fair Value: Fair Value Measurement Inputs and Valuation Techniques (Tables)

3 Months Ended

Mar. 31, 2018

Tables/Schedules

Fair Value Measurement Inputs and Valuation Techniques

(in 000’s)

Assets measured at fair value	March 31, 2018 Fair value	December 31, 2017 Fair Value	Principal valuation techniques	Significant observable inputs	March 31, 2018 Range of inputs	December 31, 2017 Range of inputs
Loans held at fair value:	$ 4,849	$ 4,451	Discounted cash flow	Constant prepayment rate	9.17% to 5.00%	8.54% to 10.41 %
				Weighted average discount rate	9.61% to 1.65%	9.00% to 11.62%
				Weighted average life	2.62 yrs. to 8.89 yrs.	2.67 yrs. to 9.29 yrs.
				Projected default rate	1.13% to 0.76%	0.75% to 7.61%

(in 000’s)

Assets measured at fair value	March 31, 2018 Fair value	December 31, 2017 Fair Value	Principal valuation techniques	Significant observable inputs	March 31, 2018 Range of inputs	December 31, 2017 Range of inputs
Servicing asset	$318	$ 319	Discounted cash flow	Constant prepayment rate	7.36% to 14.64%	5.58% to 10.67 %
				Weighted average discount rate	11.45% to 28.59%	11.75% to 19.74%
				Weighted average life	2.23 yrs. to 7.13 yrs.	2.67 yrs. to 9.09 yrs.

Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period.

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, 2017	$ 4,451	$ 319
Origination of loans/additions	398	33
Principal repayments/amortization	(45)	(34)
Change in fair value of financial instruments	45	-
Balance at March 31, 2018	$ 4,849	$ 318