8. Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Table Text Block Supplement [Abstract]

Schedule of Fair Value of Assets on a Recurring Basis

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below.

(in 000’s)			Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at March 31, 2016		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	$	3,446	$	—	$	3,446	$	—
Government Sponsored Enterprises residential mortgage-backed securities		3,732		—		3,732		—
Money market funds		130		130		—		—
Total	$	7,308	$	130	$	7,178	$	—
Loans held for sale	$	2,332	$	—	$	2,332	$	—
Loans held at fair value	$	2,990	$	—	$	—	$	2,990
Servicing asset	$	244	$	—	$	—	$	244

(in 000’s)			Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2015		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	$	3,662	$	—	$	3,662	$	—
Government Sponsored Enterprises residential mortgage-backed securities		3,780		—		3,780		—
Money market funds		130		130		—		—
Total	$	7,572	$	130	$	7,442	$	—
Loans held for sale	$	3,261	$	—	$	3,261	$	—
Loans held at fair value	$	2,459	$	—	$	—	$	2,459
Servicing asset	$	200	$	—	$	—	$	200

Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)

Assets measured at fair value	March 31, 2016 Fair value	December 31, 2015 Fair Value	Principal valuation techniques	Significant observable inputs	March 31, 2016 Range of inputs	December 31, 2015 Range of inputs
Loans held at fair value:	$ 2,990	$ 2,459	Discounted cash flow	Constant prepayment rate	7.135% to 9.763%	7.10% to 9.88%
				Weighted average discount rate	7.79% to 10.01%	7.76% to 9.94%
				Weighted average life	3.29 yrs to   8.91 yrs	3.40 yrs to  8.78 yrs

(in 000’s)

Assets measured at fair value	March 31, 2016 Fair value	December 31, 2015 Fair Value	Principal valuation techniques	Significant observable inputs	March 31, 2016 Range of inputs	December 31, 2015 Range of inputs
Servicing asset	$244	$ 200	Discounted cash flow	Constant prepayment rate	5.29% to 10.20%	6.57% to 10.27%
				Weighted average discount rate	9.47% to 14.73%	11.94 % to 16.23%
				Weighted average life	3.29 yrs to    8.91 yrs	3.40 yrs to  8.78 yrs

Schedule of Fair Value of Assets Measured on a Nonrecurring Basis

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of March 31, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the three months ended March 31, 2016 and year ended December 31, 2015.

Carrying Value at March 31, 2016:

(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)	Total fair value gain (loss) during 3 months ended
Impaired loans	$708	$    -	$      -	$ 708	$ -
Other real estate owned (“OREO”)	$  463	$    -	$     -	$  463	-

Carrying Value at December 31, 2015:

(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)	Total fair value gain (loss) during 12 months ended
Impaired Loans	$ 479	$    -	$      -	$  479	$         -
Other real estate owned (“OREO”)	$    480	$       -	$        -	$     480	$    39

Schedule of Fair Value of Financial Instruments at Year-End

				March 31, 2016				December 31, 2015
(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		$	8,669	$	8,669	$	10,782	$	10,782
Available for sale securities		(1	)		7,308		7,308		7,572		7,572
Loans held for sale		Level 2			2,332		2,332		3,261		3,261
Loans held at fair value		Level 3			2,990		2,990		2,459		2,459
Loans, net of allowance for loan losses		(2	)		31,333		31,378		33,101		33,082
Servicing asset		Level 3			244		244		200		200
Accrued interest receivable		Level 2			190		190		175		175
Liabilities:
Demand deposits		Level 2			28,447		28,447		30,022		30,022
Savings deposits		Level 2			11,522		11,522		11,681		11,681
Time deposits		Level 2			11,614		11,596		14,259		14,242
Accrued interest payable		Level 2			11		11		9		9