FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2016

FAIR VALUE MEASUREMENT [Abstract]

Summary of Fair Value Measurements of Assets Measured on a Recurring Basis

The following tables summarize the fair value of assets measured on a recurring basis:

	Fair Value Measurements at the End of the Reporting Period Using:
September 30, 2016	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
Assets:	(in thousands)
Investment securities available-for-sale	$	79	$	21,903	$	-	$	21,982
Interest only strips		-		-		126		126
Servicing assets		-		-		157		157
	$	79	$	21,903	$	283	$	22,265

	Fair Value Measurements at the End of the Reporting Period Using:
December 31, 2015	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
Assets:	(in thousands)
Investment securities available-for-sale	$	63	$	23,378	$	-	$	23,441
Interest only strips		-		-		226		226
Servicing assets		-		-		182		182
	$	63	$	23,378	$	408	$	23,849

Summary of Fair Value Measurements of Assets Measured on a Non-recurring Basis

The following summarizes the fair value measurements of assets measured on a non-recurring basis:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of September 30, 2016:
Impaired loans	$	3,016	$	-	$	3,016	$	-
Foreclosed real estate and repossessed assets		55		-		55		-
	$	3,071	$	-	$	3,071	$	-
As of December 31, 2015:
Impaired loans	$	4,545	$	-	$	4,545	$	-
Foreclosed real estate and repossessed assets		198		-		198		-
	$	4,743	$	-	$	4,743	$	-

Estimated Fair Values and Carrying Values of Financial Instruments

The estimated fair value of the Company’s financial instruments are as follows:

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Financial assets:	(in thousands)
Cash and cash equivalents	$	17,659	$	17,659	$	-	$	-	$	17,659
Interest-bearing deposits in other financial institutions		100		100		-		-		100
FRB and FHLB stock		3,443		-		3,443		-		3,443
Investment securities		31,200		79		31,513		-		31,592
Loans held for sale		62,381		-		66,872		-		66,872
Loans, net		532,331		-		520,834		15,152		535,986
Financial liabilities:
Deposits		590,601		-		591,360		-		591,360
Other borrowings		5,500		-		5,500		-		5,500

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Financial assets:	(in thousands)
Cash and cash equivalents	$	35,519	$	35,519	$	-	$	-	$	35,519
Interest-bearing deposits in other financial institutions		99		99		-		-		99
FRB and FHLB stock		3,259		-		3,259		-		3,259
Investment securities		30,466		63		30,777		-		30,840
Loans held for sale		64,488		-		69,262		-		69,262
Loans, net		472,058		-		458,726		13,679		472,405
Financial liabilities:
Deposits		544,338		-		544,350		-		544,350
Other borrowings		10,500		-		10,489		-		10,489