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8. Fair Value (Tables)
 9 Months Ended
Sep. 30, 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  

September 30, 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

 

$2,699

 

$      -

 

$2,699

 

$    -

Government Sponsored

Enterprises residential

mortgage-backed securities

 

 

 

3,455

 

 

-

    

 

 

3,455

        

 

 

    -

 

Money market funds

 

130

 

130

  

-

 

   -

 

        Total

 

$6,284

 

$130

 

$6,154

 

$    -

 

 

Loans held for sale

 

 

$6,602

 

 

$   -

 

 

$6,602

 

$   -

 

 

Loans held at fair value

 

$3,726

 

$   -

 

$         -

 

$ 3,726

 

Servicing asset $  283 $   - $         - $     283

 

(in 000’s)   Fair Value Measurements at Reporting Date Using:
 

Assets 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

September 30,     2016

Fair value

December 31, 2015

Fair Value

 Principal valuation techniques Significant observable inputs

September 30,      2016

Range of inputs

December 31, 2015

Range of inputs

Loans held at fair value: $  3,726 $ 2,459 Discounted cash flow Constant prepayment rate

7.50% to

9.71  %

7.10% to

9.88%

        Weighted average discount rate

7.72% to

9.38%

7.76% to

9.94%

        Weighted average life

3.12 yrs to

9.97yrs

3.40 yrs to

8.78 yrs

(in 000’s)

 

Assets measured at fair value

September 30,   2016

Fair value

December 31, 2015

Fair Value

 Principal valuation techniques Significant observable inputs

September 30,  2016

Range of inputs

December 31, 2015

Range of inputs

Servicing asset $283 $ 200 Discounted cash flow Constant prepayment rate

4.76% to

10.10%

6.57% to

10.27%

        Weighted average discount rate

9.54% to

16.04%

 11.94 % to 16.23%
        Weighted average life

3.12 yrs to

9.72 yrs

3.40 yrs to

8.78 yrs

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, 2015 $   2,459
Origination of loans    1,339
Principal repayments     (324)
Change in fair value of financial instruments     270
Balance at September 30, 2016 $  3,744
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 September 30, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the nine months ended September 30, 2016 and year ended December 31, 2015.

 

Carrying Value at September 30, 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 9 months ended

 

Impaired loans

 

$ 741

 

$   -

 

$   -

 

$ 741

 

$   -

 

Other real estate owned (“OREO”)

 

$ 447

 

$   -

 

$    -

 

$  447

 

-

 

 

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
    September 30, 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 $ 9,600 $ 9,600 $ 10,782 $  10,782
Available for sale securities (1) 6,284 6,284 7,572 7,572
Loans held for sale Level 2 6,602 6,602 3,261 3,261
Loans held at fair value Level 3 3,726 3,726 2,459 2,459
Loans, net of allowance for loan losses (2) 27,988 28,227 33,101 33,082
Accrued interest receivable Level 2 141 141 175 175
Servicing asset Level 3 283 283 200 200
Liabilities:          
Demand deposits Level 2 29,367 29,367 30,022 30,022
Savings deposits Level 2 11,866 11,866 11,681 11,681
Time deposits Level 2 11,595 11,579 14,259 14,242
Accrued interest payable Level 2 10 10 9 9