Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.8.0.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the assets and liabilities measured at fair value on a recurring basis:

 

 

 

March 31, 2018

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agencies

 

$

 

 

$

1,907

 

 

$

 

 

$

1,907

 

Residential mortgage-backed securities

 

 

 

 

 

28,366

 

 

 

 

 

 

28,366

 

Corporate bonds and other debt securities

 

 

 

 

 

5,529

 

 

 

 

 

 

5,529

 

SBA servicing rights

 

 

 

 

 

 

 

 

3,512

 

 

 

3,512

 

Total

 

$

 

 

$

35,802

 

 

$

3,512

 

 

$

39,314

 

 

 

 

December 31, 2017

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agencies

 

$

 

 

$

1,949

 

 

$

 

 

$

1,949

 

Residential mortgage-backed securities

 

 

 

 

 

29,629

 

 

 

 

 

 

29,629

 

Corporate bonds and other debt securities

 

 

 

 

 

5,665

 

 

 

 

 

 

5,665

 

SBA servicing rights

 

 

 

 

 

 

 

 

3,411

 

 

 

3,411

 

Total

 

$

 

 

$

37,243

 

 

$

3,411

 

 

$

40,654

 

 

Schedule of Assets Measured at Fair Value on Non-Recurring Basis

The following tables provide information about certain assets measured at fair value on a non-recurring basis:

 

 

 

Estimated Fair Value

 

 

 

March 31,

2018

 

 

December 31,

2017

 

 

 

(Dollars in thousands)

 

Assets (classified in Level 3):

 

 

 

 

 

 

 

 

Impaired loans

 

$

2,791

 

 

$

2,553

 

Other real estate and repossessed assets

 

 

268

 

 

 

21

 

 

Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements

The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets:

 

Level 3 Asset

 

Fair value

 

 

Valuation Technique

 

Unobservable Inputs

 

Range/Weighted

Average

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

2,791

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (4.9

%)

Other real estate owned

 

 

268

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

SBA servicing assets

 

 

3,512

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

7.0

%

 

 

 

 

 

 

 

 

Discount rate

 

 

14.1

%

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

2,553

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (11.6

%)

Other real estate owned

 

 

21

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

SBA servicing assets

 

 

3,411

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

6.7

%

 

 

 

 

 

 

 

 

Discount rate

 

 

14.1

%

 

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows:

 

March 31, 2018

 

Carrying

Value

 

 

Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,295

 

 

$

52,295

 

 

$

52,295

 

 

$

 

 

$

 

Time deposits in other banks

 

 

245

 

 

 

245

 

 

 

245

 

 

 

 

 

 

 

Available for sale securities

 

 

35,802

 

 

 

35,802

 

 

 

 

 

 

35,802

 

 

 

 

FHLB and other bank stock

 

 

4,802

 

 

 

4,802

 

 

 

 

 

 

4,802

 

 

 

 

Loans, net

 

 

876,374

 

 

 

869,122

 

 

 

 

 

 

 

 

 

869,122

 

Loans held for sale

 

 

4,530

 

 

 

4,902

 

 

 

 

 

 

4,902

 

 

 

 

Accrued interest receivable

 

 

3,115

 

 

 

3,115

 

 

 

 

 

 

3,115

 

 

 

 

Bank-owned life insurance

 

 

480

 

 

 

480

 

 

 

 

 

 

480

 

 

 

 

SBA servicing rights

 

 

3,512

 

 

 

3,512

 

 

 

 

 

 

 

 

 

3,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

840,963

 

 

$

839,512

 

 

$

 

 

$

839,512

 

 

$

 

Accrued interest payable

 

 

424

 

 

 

424

 

 

 

 

 

 

424

 

 

 

 

Short-term borrowings

 

 

15,000

 

 

 

15,000

 

 

 

 

 

 

15,000

 

 

 

 

Long-term borrowings

 

 

75,203

 

 

 

73,536

 

 

 

 

 

 

73,536

 

 

 

 

 

December 31, 2017

 

Carrying

Value

 

 

Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,949

 

 

$

57,949

 

 

$

57,949

 

 

$

 

 

$

 

Time deposits in other banks

 

 

245

 

 

 

245

 

 

 

245

 

 

 

 

 

 

 

Available for sale securities

 

 

37,243

 

 

 

37,243

 

 

 

 

 

 

37,243

 

 

 

 

FHLB and other bank stock

 

 

4,812

 

 

 

4,812

 

 

 

 

 

 

4,812

 

 

 

 

Loans, net

 

 

863,467

 

 

 

870,749

 

 

 

 

 

 

 

 

 

870,749

 

Loans held for sale

 

 

3,814

 

 

 

4,188

 

 

 

 

 

 

4,188

 

 

 

 

Accrued interest receivable

 

 

3,466

 

 

 

3,466

 

 

 

 

 

 

3,466

 

 

 

 

Bank-owned life insurance

 

 

479

 

 

 

479

 

 

 

 

 

 

479

 

 

 

 

SBA servicing rights

 

 

3,411

 

 

 

3,411

 

 

 

 

 

 

 

 

 

3,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

835,368

 

 

$

840,645

 

 

$

 

 

$

840,645

 

 

$

 

Accrued interest payable

 

 

407

 

 

 

407

 

 

 

 

 

 

407

 

 

 

 

Short-term borrowings

 

 

15,000

 

 

 

15,000

 

 

 

 

 

 

15,000

 

 

 

 

Long-term borrowings

 

 

76,411

 

 

 

67,310

 

 

 

 

 

 

67,310