v3.19.1
Fair Value (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The Company has categorized its financial instruments measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017 as follows:
Fair Value of Financial Instruments
 
 
 
 
 
 
 
 
(in thousands)
 
Total
 
Level 1 Inputs
 
Level 2 Inputs
 
Level 3 Inputs
December 31, 2018
 
 
 
 
Investment securities available for sale
 
 
 
 
 
 
 
 
U.S. government-sponsored enterprises
 
$
17,360

 
$

 
$
17,360

 
$

Municipal
 
501

 

 
501

 

Corporate
 
2,885

 

 
2,885

 

Mortgage-backed securities
 
26,186

 

 
26,186

 

 
 
$
46,932

 
$

 
$
46,932

 
$

Loans held for sale
 
$
18,526

 
$

 
$
18,526

 
$

Derivative assets
 
$
112

 
$

 
$
112

 
$

Derivative liabilities
 
$
253

 
$

 
$
253

 
$

 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
Investment securities available for sale
 
 
 
 
 
 
 
 
U.S. government-sponsored enterprises
 
$
17,370

 
$

 
$
17,370

 
$

Municipal
 
516

 

 
516

 

Corporate
 
3,076

 

 
3,076

 

Mortgage-backed securities
 
33,067

 

 
33,067

 

 
 
$
54,028

 
$

 
$
54,028

 
$

Loans held for sale
 
$
26,344

 
$

 
$
26,344

 
$

Derivative assets
 
$
100

 
$

 
$
100

 
$

Derivative liabilities
 
$
42

 
$

 
$
42

 
$

Schedule Of Fair Value Of Loans Held For Sale
The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity:
Fair Value of Loans Held for Sale
 
 
 
 
(in thousands)
 
 
 
 
 
 
2018
 
2017
Loans held for sale
 
 
 
 
Aggregate fair value
 
$
18,526

 
$
26,344

Contractual principal
 
17,822

 
25,637

Difference
 
$
704

 
$
707

Fair Value Measurements, Nonrecurring
Fair Value of Impaired Loans and Foreclosed Real Estate
 
 
 
 
(in thousands)
 
 
 
 
 
 
2018
 
2017
Impaired loans
 
 
 
 
Level 1 Inputs
 
$

 
$

Level 2 Inputs
 

 

Level 3 Inputs
 
4,093

 
8,170

Total
 
$
4,093

 
$
8,170

 
 
 
 
 
Foreclosed real estate
 
 
 
 
Level 1 Inputs
 
$

 
$

Level 2 Inputs
 

 

Level 3 Inputs
 
142

 
93

Total
 
$
142

 
$
93

Fair Value Measurement Inputs and Valuation Techniques
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2018 and 2017:
 
Inputs
 
Valuation Technique
 
Unobservable Inputs
 
General Range of Inputs
 
 
 
Impaired Loans
Appraised Value/Discounted Cash Flows
 
Discounts to appraisals or cash flows for estimated holding and/or selling costs
 
0 - 25%
Foreclosed Real Estate
Appraised Value/Comparable Sales
 
Discounts to appraisals for estimated holding and/or selling costs
 
0 - 25%
Fair Value Measurements, Recurring and Nonrecurring
The table below presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments (in thousands).
Fair Value of Financial Assets and Liabilities
 
 
 
 
 
 
 
 
December 31, 2018
 
December 31, 2017
(in thousands)
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Financial assets
 
 
 
 
 
 
 
Level 1
 
 
 
 
 
 
 
Cash and due from banks
$
10,431

 
$
10,431

 
$
8,189

 
$
8,189

Interest bearing deposits at other financial institutions
22,007

 
22,007

 
40,356

 
40,356

Federal funds sold
2,285

 
2,285

 
3,766

 
3,766

Restricted investments
2,503

 
2,503

 
2,369

 
2,369

Level 3
 
 
 
 
 
 
 
Loans receivable, net
$
988,960

 
$
979,058

 
$
877,387

 
$
872,446

 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
Level 1
 
 
 
 
 
 
 
Noninterest bearing deposits
$
242,259

 
$
242,259

 
$
196,635

 
$
196,635

Securities sold under agreements to repurchase
3,332

 
3,332

 
11,260

 
11,260

Level 3
 
 
 
 
 
 
 
Interest bearing deposits
712,981

 
711,876

 
708,264

 
702,930

FHLB advances and other borrowed funds
19,393

 
19,447

 
19,361

 
19,413