Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value

Schdule of asset measured at fair value on recurring basis

(in 000’s)	Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at September 30, 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	$	2,346	$	-	$	2,346	$	-
Government Sponsored Enterprises residential mortgage-backed securities		2,085		-		2,085		-
Total	$	4,431		-	$	4,431		-
Loans held for sale	$	8,426	$	-	$	8,426	$	-
Loans held at fair value	$	5,887	$	-	$	-	$	5,887
Servicing asset	$	254	$	-	$	-	$	254

(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, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Assets measured at fair value	September 30, 2019 Fair value		December 31, 2018 Fair Value		Principal valuation techniques	Significant observable inputs	September 30, 2019 Range of inputs	December 31, 2018 Range of inputs
Loans held at fair value	$	5,887	$	5,420	Discounted cash flow	Constant prepayment rate	0% to 23.24%	0% to 16.5%
						Discount rate	7.95% to 10.37%	5.49% to 9.76%
						Weighted average life	1.69 yrs. to 4.42 yrs.	2.04 yrs. to 6.89 yrs.
						Projected default rate	2.22% to 11.59%	1.07% to 10.12%

Assets measured at fair value	September 30, 2019 Fair value		December 31, 2018 Fair Value		Principal valuation techniques	Significant observable inputs	September 30, 2019 Range of inputs	December 31, 2018 Range of inputs
Servicing asset	$	254	$	313	Discounted cash flow	Constant prepayment rate	7.24% to 21.96%	4.94% to 15.92 %
						Discount rate	8.71% to 26.59%	11.38% to 19.61%
						Weighted average life	1.52 yrs. to 4.42 yrs.	2.04 yrs. to 6.77 yrs.

(in 000’s)	Loans held at fair value			Servicing Asset
Balance at December 31, 2018	$	5,420		$	313
Origination of loans/transfers		1,822			17
Principal repayments/amortization		(742	)		(24	)
Change in fair value of financial instruments		(613	)		(52	)
Balance at September 30, 2019	$	5,887		$	254

Schedule of Assets and Liabilities Measured on a Nonrecurring 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	$	131	$	-	$	-	$	131
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”)	$	392	$	-	$	-	$	392

Schedule of Fair Value of Financial Instruments not Previously Disclosed

		September 30, 2019				December 31, 2018
(in 000’s)	Level in	Carrying		Fair		Carrying		Fair
	Value Hierarchy	Amount		Value		Amount		Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$	12,488	$	12,488	$	8,438	$	8,438
Loans, net of allowance for loan losses	(1)		17,146		17,196		20,265		21,979
Accrued interest receivable	Level 1		167		167		153		153
Liabilities:
Demand deposits	Level 1		30,959		30,959		29,816		29,816
Savings deposits	Level 1		10,556		10,556		10,589		10,589
Time deposits	(2)		4,877		4,814		7,867		7,757
Accrued interest payable	Level 1		6		6		17		17