FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2018:

	(in thousands)
March 31, 2018	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	25,225	$	25,225	$	—	$	—
Securities of U.S. government agencies and corporations		34,984		—		34,984		—
Obligations of states and political subdivisions		21,898		—		21,898		—
Collateralized mortgage obligations		64,881		—		64,881		—
Mortgage-backed securities		144,178		—		144,178		—
Total investments at fair value	$	291,166	$	25,225	$	265,941	$	—

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:

	(in thousands)
December 31, 2017	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	18,464	$	18,464	$	—	$	—
Securities of U.S. government agencies and corporations		21,109		—		21,109		—
Obligations of states and political subdivisions		23,208		—		23,208		—
Collateralized mortgage obligations		66,083		—		66,083		—
Mortgage-backed securities		151,877		—		151,877		—
Total investments at fair value	$	280,741	$	18,464	$	262,277	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2017:

	(in thousands)
December 31, 2017	Carrying Value		Level 1		Level 2		Level 3
Impaired loans	$	1,468	$	—	$	—	$	1,468
Total assets at fair value	$	1,468	$	—	$	—	$	1,468

Key Methods and Assumptions Used in Measuring Fair Value of Impaired Loans and Loan Servicing Rights

Key methods and assumptions used in measuring the fair value of impaired loans as of December 31, 2017 were as follows:

	Method		Assumption Inputs
Impaired loans	Collateral, market, income, enterprise, liquidation and discounted Cash Flows		External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging from 6% to 7%.

Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments for the periods ended March 31, 2018 and December 31, 2017 were approximately as follows:

			March 31, 2018				December 31, 2017
	Level		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets:
Cash and cash equivalents		1	$	148,511	$	148,511	$	152,892	$	152,892
Certificates of deposit		2		1,984		1,981		1,984		1,983
Stock in Federal Home Loan Bank and other equity securities		3		5,567		5,567		5,567		5,567
Loans receivable:
Net loans		3		720,559		679,423		739,112		736,292
Loans held-for-sale		2		430		443		1,040		1,060
Interest receivable		2		3,917		3,917		4,117		4,117
Mortgage servicing rights		3		1,679		2,040		1,712		1,876
Financial liabilities:
Deposits		3		1,092,794		963,567		1,104,740		993,425
Interest payable		2		75		75		72		72