FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2018

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis.



Financial Assets	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
Investment securities and loan available for sale
As of September 30, 2018
Corporate debt obligations	$	—	$	1,021	$	—	$	1,021
Residential mortgage-backed securities	—		31,495		—		31,495
Collateralized mortgage-backed securities	—		64		—		64
Loans held for sale	—		2,217		—		2,217
Total	$	—	$	34,797	$	—	$	34,797
As of December 31, 2017
Corporate debt obligations	$	—	$	1,033	$	—	$	1,033
Residential mortgage-backed securities	—		36,863		—		36,863
Collateralized mortgage-backed securities	—		95		—		95
Loans held for sale	—		1,541		—		1,541
Total	$	—	$	39,532	$	—	$	39,532

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the three and nine months ended September 30, 2017:



	Investment Securities and Loan Available for Sale
September 30, 2017	Three Months			Nine Months
	(amounts in thousands)
Beginning balance	$	421		$	437
Total net losses included in:
Settlements	(3		)	(19		)
Ending balance	$	418		$	418

Fair Value on a Non-recurring Basis

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).



Financial Assets	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
As of September 30, 2018
Collateral-dependent impaired loans	$	—	$	—	$	7,325	$	7,325
OREO	—		—		5,014		5,014
As of December 31, 2017
Collateral-dependent impaired loans	$	—	$	—	$	9,093	$	9,093
OREO	—		—		7,248		7,248

Summary of Carrying Value and Fair Value of Financial Instruments

The following table summarizes the carrying amounts and fair values for financial instruments at September 30, 2018 and December 31, 2017:



September 30, 2018	Carrying Amount		Fair Value
September 30, 2018	Carrying Amount		Total		Level 1	Level 2		Level 3
	(amounts in thousands)
Financial Assets:
Cash and cash equivalents	$	86,735	$	86,735	86,735	$	—	$	—
Investment securities AFS	$	32,580	32,580		—	32,580		—
Investment securities HTM	$	1,099	1,253		—	1,253		—
Restricted stock	$	5,858	5,858		—	5,858		—
Loans held for sale	$	2,217	2,217		—	2,217		—
Loans, net	$	1,161,931	1,147,491		—	1,124,799		22,692
Accrued interest receivable	$	4,869	4,869		—	4,869		—

Financial Liabilities:
Non-time deposits	$	624,456	624,456		—	624,456		—
Time deposits	$	440,746	443,039		—	443,039		—
Borrowings	$	118,053	115,135		—	115,135		—
Accrued interest payable	$	1,211	1,211		—	1,211		—



December 31, 2017	Carrying Amount		Fair Value
December 31, 2017	Carrying Amount		Total		Level 1		Level 2		Level 3
	(amounts in thousands)
Financial Assets:
Cash and cash equivalents	$	42,113	$	42,113	$	42,113	$	—	$	—
Investment securities AFS	37,991		37,991		—		37,991		—
Investment securities HTM	2,268		2,468		—		2,468		—
Restricted stock	6,172		6,172		—		6,172		—
Loans held for sale	1,541		1,541		—		1,541		—
Loans, net	995,184		1,001,655		—		976,660		24,995
Accrued interest receivable	4,025		4,025		—		4,025		—

Financial Liabilities:
Non-time deposits	$	498,522	$	498,522	$	—	$	498,522	$	—
Time deposits	367,861		368,863		—		368,863		—
Borrowings	128,053		127,552		—		127,552		—
Accrued interest payable	719		719		—		719		—