Value of Financial Instruments

6 Months Ended

Jun. 30, 2017

Investments, All Other Investments [Abstract]

Value of Financial Instruments

(8) Fair Value of Financial Instruments. The estimated fair values and fair value measurement method with respect to the Company’s financial instruments were as follows (in thousands):

	At June 30, 2017							At December 31, 2016
	Carrying Amount		Fair Value			Level		Carrying Amount		Fair Value			Level
Financial assets:
Cash and cash equivalents	$	19,736	$	19,736			1	$	17,640	$	17,640			1
Securities available for sale		19,161		19,161			2		20,222		20,222			2
Loans		69,256		69,155			3		76,999		76,829			3
Federal Home Loan Bank stock		979		979			3		1,113		1,113			3
Accrued interest receivable		343		343			3		380		380			3
Financial liabilities:
Deposit liabilities		81,650		82,081			3		86,009		86,364			3
Federal Home Loan Bank advances		20,500		20,475			3		23,500		23,500			3
Junior subordinated debenture		5,155		N/A	(1)		3		5,155		N/A	(1)		3
Off-balance sheet financial instruments		—		—			—		—		—			—

(1)	The Company is unable to determine the fair value based on significant unobservable inputs required in the calculation refer to Note 10 for further information.
	The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments.
	The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.
	Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the counterparty.
	As of June 30, 2017, commitments to extend credit totaled $3.3 million.