11. Fair Value Measurements: Schedule of Fair Value of Assets on a Recurring Basis (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Fair Value of Assets on a Recurring Basis

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2013	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	$3,802	$-	$3,802	-
Government Sponsored Enterprises residential mortgage-backed securities	5,649	-	$5,649	-
Money Market Funds	129	129	-	-
Total	$9,580	$129	$9,541	-
Loans held for sale	$1,646	$-	$1,646	-
Loans held at fair value	$447	$-	$-	$447

When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs.  These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)
Assets measured at fair value	Fair value	Principal valuation techniques	Significant observable inputs	Range of inputs
Loans held at fair value:	$447	Discounted cash flow	Constant prepayment rate	7.74% to 7.985%
			Weighted average discount rate	9.106% to 9.111%
			Weighted average life	4.04 yrs to 4.08 yrs
			Average projected default rate	18%

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 for the year ended December 31, 2013:

(in 000’s)	Loans held at fair value
Balance at December 31, 2012	$-
Origination of loans	491
Principal repayments	-
Change in fair value of financial instruments	(45)
Balance at December 31, 2013	$447

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2012	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:
Government Sponsored Enterprises residential mortgage-backed securities	$898	$-	$898	-
Money Market Funds	129	129	-	-
Total	$1,027	$129	$898