8. Fair Value: Fair Value Inputs, Level 3 Financial Instruments, Quantitative Information (Tables)

6 Months Ended

Jun. 30, 2014

Tables/Schedules

Fair Value Inputs, Level 3 Financial Instruments, Quantitative Information

When estimating the fair value of 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	June 30, 2014 Fair value	December 31, 2013 Fair Value	Principal valuation techniques	Significant observable inputs	June 30, 2014 Range of inputs	December 31, 2013 Range of inputs
Loans held at fair value:	$442	$447	Discounted cash flow	Constant prepayment rate	7.194% to 7.456%	7.74% to 7.985%
				Weighted average discount rate	8.031% to 8.033%	9.106% to 9.111%
				Weighted average life	3.97 yrs to 4.00 yrs	4.08 yrs to 4.11 yrs
				Average projected default rate	18%	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:

(in 000’s)	Loans held at fair value
Balance at December 31, 2013	$447
Origination of loans	-
Principal repayments	(2)
Change in fair value of financial instruments	(3)
Balance at June 30, 2014	$442