Fair Value (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Assets Measured at Fair Value on a Recurring Basis

(in 000’s)	Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at March 31, 2019		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	$	2,313	$	-	$	2,313	$	-
Government Sponsored Enterprises residential mortgage-backed securities		2,253		-		2,253		-
Total	$	4,565	$	-	$	4,565	$	-
Loans held for sale	$	8,593	$	-	$	8,593	$	-
Loans held at fair value	$	5,394	$	-	$	-	$	5,394
Servicing asset	$	306	$	-	$	-	$	306

(in 000’s)	Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at December 31, 2018		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	$	2,277	$	-	$	2,277	$	-
Government Sponsored Enterprises residential mortgage-backed securities		2,304		-		2,304		-
Total	$	4,581	$	-	$	4,581	$	-
Loans held for sale	$	10,073	$	-	$	10,073	$	-
Loans held at fair value	$	5,420	$	-	$	-	$	5,420
Servicing asset	$	313	$	-	$	-	$	313

fair value of the Bank's AFS securities portfolio

Assets measured at fair value	March 31, 2019 Fair value		December 31, 2018 Fair Value		Principal valuation techniques	Significant observable inputs	March 31, 2019 Range of inputs	December 31, 2018 Range of inputs
Loans held at fair value:	$	5,394	$	5,420	Discounted cash flow	Constant prepayment rate	0% to 18.10%	0% to 16.5%
						Discount rate	8.70% to 12.49%	5.49% to 9.76%
						Weighted average life	1.85 yrs. to 6.50 yrs.	2.04 yrs. to 6.09 yrs.
						Projected default rate	1.14% to 11.16%	1.07% to 10.12%

(in 000’s)

Assets measured at fair value	March 31, 2019 Fair value		December 31, 2018 Fair Value		Principal valuation techniques	Significant observable inputs	March 31, 2019 Range of inputs	December 31, 2018 Range of inputs
Servicing asset	$	306	$	313	Discounted cash flow	Constant prepayment rate	5.66% to 17.78%	4.94% to 15.92 %
						Discount rate	9.70% to 21.23%	11.38% to 19.61%
						Weighted average life	1.85 yrs. to 6.39 yrs.	2.04 yrs. to 6.77 yrs.

Schedule of Assets and Liabilities Measured on a recurring Basis

(in 000’s)	Loans held at fair value			Servicing Asset
Balance at December 31, 2018	$	5,420		$	313
Origination of loans/transfers		142			17
Principal repayments/amortization		(69	)		(24	)
Change in fair value of financial instruments		(100	)		-
Balance at March 31, 2019	$	5,394		$	306

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 for the three months ended March 31, 2018:

(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

Schedule of Assets and Liabilities Measured on a non recurring Basis

(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)
Impaired loans	$	488					$	488
Other real estate owned (“OREO”)	$	236		-		-	$	236

Carrying Value at December 31, 2018:

(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)
Impaired Loans	$	324		-		-	$	324
Other real estate owned (“OREO”)	$	153		-		-	$	153

Fair Value of Financial Instruments]

Fair Value, Assets and liabilities

				March 31, 2019				December 31, 2018
	Level in			Carrying		Fair		Carrying		Fair
	Value Hierarchy			Amount		Value		Amount		Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1			$	10,329	$	10,329	$	8,438	$	8,438
Loans, net of allowance for loan losses		(1	)		19,225		19,191		20,265		21,979
Accrued interest receivable	Level 1				164		164		153		153
Liabilities:
Demand deposits	Level 1				29,198		29,198		29,816		29,816
Savings deposits	Level 1				10,544		10,544		10,589		10,589
Time deposits		(2	)		7,864		7,748		7,867		7,757
Accrued interest payable	Level 1				26		26		17		17