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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of the dates stated.

 

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2020 Using

 

 

 

Balance as of September 30, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U. S. Government agencies and mortgage backed securities

 

$

48,870

 

 

$

 

 

$

48,870

 

 

$

 

State and municipal obligations

 

 

18,846

 

 

 

 

 

 

18,846

 

 

 

 

Corporate bonds

 

 

20,137

 

 

 

 

 

 

14,464

 

 

 

5,673

 

Total available-for-sale securities

 

$

87,853

 

 

$

 

 

$

82,180

 

 

$

5,673

 

MSR assets

 

$

845

 

 

$

 

 

$

 

 

$

845

 

Rabbi trust assets

 

$

959

 

 

$

959

 

 

$

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2019 Using

 

 

 

Balance as of December 31, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U. S. Government agencies and mortgage backed securities

 

$

67,597

 

 

$

7,024

 

 

$

60,573

 

 

$

 

State and municipal obligations

 

 

16,576

 

 

 

 

 

 

16,576

 

 

 

 

Corporate bonds

 

 

15,281

 

 

 

2,000

 

 

 

10,631

 

 

 

2,650

 

Total available-for-sale securities

 

$

99,454

 

 

$

9,024

 

 

$

87,780

 

 

$

2,650

 

MSR assets

 

$

935

 

 

$

 

 

$

 

 

$

935

 

Rabbi trust assets

 

$

1,082

 

 

$

1,082

 

 

$

 

 

$

 

Reconciliation of Items Using Level Three Inputs

The following table presents the change in financial assets valued using Level 3 inputs for the periods stated.

 

 

 

MSR Assets

 

 

Corporate

Bonds

 

Balance as of January 1, 2020

 

$

935

 

 

$

2,650

 

Purchases

 

 

 

 

 

1,000

 

Transfers from Level 2 to Level 3

 

 

 

 

 

2,028

 

Fair value adjustments

 

 

(90

)

 

 

(5

)

Sales

 

 

 

 

 

 

Balance as of September 30, 2020

 

$

845

 

 

$

5,673

 

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

 

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2020 Using

 

 

 

Balance as of September 30, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Impaired loans, net

 

$

9,849

 

 

$

 

 

$

 

 

$

9,849

 

Other real estate owned, net

 

 

1,113

 

 

 

 

 

 

 

 

 

1,113

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2019 Using

 

 

 

Balance as of December 31, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Impaired loans, net

 

$

4,084

 

 

$

 

 

$

 

 

$

4,084

 

Other real estate owned, net

 

 

1,916

 

 

 

 

 

 

 

 

 

1,916

 

Summary of Quantitative Fair Value Measurements for Level 3

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated.

 

 

 

Balance as of September 30, 2020

 

 

Valuation

Technique

 

Unobservable

Input

 

Range

(Weighted

Average)

Impaired loans, net

 

$

9,849

 

 

Discounted appraised value

 

Selling Cost

Lack of Marketability

 

7%

13%-93% (23%)

 

 

 

 

 

 

Discounted cash flows

 

Discount rate

 

6%-7% (6%)

 

 

 

 

 

 

Enterprise Value ("EV")

 

EV Multiple

 

7.0-12.9 (7.1)

Other real estate owned, net

 

 

1,113

 

 

Discounted appraised value

 

Selling Cost

Lack of Marketability

 

0%-8% (6%)

41%-65% (58%)

 

 

Balance as of December 31, 2019

 

 

Valuation

Technique

 

Unobservable

Input

 

Range

(Weighted

Average)

Impaired loans, net

 

$

4,084

 

 

Discounted appraised value

 

Selling Cost

Lack of Marketability

 

7%

13%-100% (24%)

 

 

 

 

 

 

Discounted cash flows

 

Discount rate

 

6%-7% (6%)

Other real estate owned, net

 

 

1,916

 

 

Discounted appraised value

 

Selling Cost

Lack of Marketability

 

6%-10% (8%)

18%-100% (47%)

 

Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis

 

The following tables summarize financial assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of the dates stated.

 

 

 

Carrying Value as of

 

 

Fair Value as of

 

 

Fair Value Measurements as of September 30, 2020 Using

 

 

 

September 30, 2020

 

 

September 30, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

9,324

 

 

$

9,324

 

 

$

9,324

 

 

$

 

 

$

 

Interest-earning deposits

 

 

50,069

 

 

 

50,069

 

 

 

50,069

 

 

 

 

 

 

 

Federal funds sold

 

 

152

 

 

 

152

 

 

 

152

 

 

 

 

 

 

 

Certificates of deposit

 

 

1,266

 

 

 

1,266

 

 

 

 

 

 

1,266

 

 

 

 

Restricted securities

 

 

5,022

 

 

 

5,022

 

 

 

 

 

 

 

 

 

5,022

 

Loans receivable, net

 

 

1,041,711

 

 

 

1,041,429

 

 

 

 

 

 

 

 

 

1,041,429

 

Loans held for sale

 

 

2,687

 

 

 

2,687

 

 

 

 

 

 

2,687

 

 

 

 

Accrued interest receivable

 

 

4,664

 

 

 

4,664

 

 

 

 

 

 

4,664

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

190,843

 

 

$

190,843

 

 

$

190,843

 

 

$

 

 

$

 

Savings and interest-bearing demand deposits

 

 

424,001

 

 

 

424,001

 

 

 

424,001

 

 

 

 

 

 

 

Time deposits

 

 

412,837

 

 

 

419,752

 

 

 

 

 

 

 

 

 

419,752

 

Securities sold under repurchase agreements

 

 

1,117

 

 

 

1,117

 

 

 

1,117

 

 

 

 

 

 

 

FHLB advances

 

 

25,000

 

 

 

24,849

 

 

 

 

 

 

24,849

 

 

 

 

FRB advances

 

 

32,637

 

 

 

32,637

 

 

 

32,637

 

 

 

 

 

 

 

Subordinated notes, net

 

 

31,083

 

 

 

33,087

 

 

 

 

 

 

 

 

 

33,087

 

 

 

 

Carrying Value as of

 

 

Fair Value as of

 

 

Fair Value Measurements as of December 31, 2019 Using

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

6,096

 

 

$

6,096

 

 

$

6,096

 

 

$

 

 

$

 

Interest-earning deposits

 

 

34,358

 

 

 

34,358

 

 

 

34,358

 

 

 

 

 

 

 

Federal funds sold

 

 

1,359

 

 

 

1,359

 

 

 

1,359

 

 

 

 

 

 

 

Certificates of deposit

 

 

2,754

 

 

 

2,754

 

 

 

 

 

 

2,754

 

 

 

 

Restricted securities

 

 

5,706

 

 

 

5,706

 

 

 

 

 

 

 

 

 

5,706

 

Loans receivable, net

 

 

916,628

 

 

 

910,678

 

 

 

 

 

 

 

 

 

910,678

 

Loans held for sale

 

 

1,231

 

 

 

1,231

 

 

 

 

 

 

1,231

 

 

 

 

Accrued interest receivable

 

 

3,035

 

 

 

3,035

 

 

 

 

 

 

3,035

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

137,933

 

 

$

137,933

 

 

$

137,933

 

 

$

 

 

$

 

Savings and interest-bearing demand deposits

 

 

382,607

 

 

 

382,607

 

 

 

382,607

 

 

 

 

 

 

 

Time deposits

 

 

389,900

 

 

 

392,562

 

 

 

 

 

 

 

 

 

392,562

 

Securities sold under repurchase agreements

 

 

6,525

 

 

 

6,525

 

 

 

6,525

 

 

 

 

 

 

 

FHLB advances

 

 

45,000

 

 

 

44,936

 

 

 

 

 

 

44,936

 

 

 

 

Subordinated notes, net

 

 

31,001

 

 

 

32,552

 

 

 

 

 

 

 

 

 

32,552