FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2019

Summary of assets measured at fair value on recurring basis

The following presents assets measured on a recurring basis at March 31, 2019 and December 31, 2018 (in thousands):


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
March 31, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	253	$	—	$	—	$	253
GNMA		—		39,423		—		39,423
FNMA		—		3,746		—		3,746
Securities issued by US. Government sponsored entities and agencies		—		4,400		—		4,400
Corporate CMO and MBS		—		5,788		—		5,788
Total securities available-for-sale	$	253	$	53,357	$	—	$	53,610
Equity securities	$	702	$	—	$	—	$	702
Interest rate lock and forward delivery commitments	$	—	$	1,525	$	—	$	1,525


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	250	$	—	$	—	$	250
GNMA		—		34,002		—		34,002
FNMA		—		3,870		—		3,870
Securities issued by US. Government sponsored entities and agencies		—		4,302				4,302
Corporate CMO and MBS		—		1,271		—		1,271
Total securities available-for-sale	$	250	$	43,445	$	—	$	43,695
Equity securities	$	693	$	—	$	—	$	693
Interest rate lock and forward delivery commitments	$	—	$	890	$	—	$	890

Summary of assets measured at fair value on nonrecurring basis

The following presents assets measured on a nonrecurring basis as of March 31, 2019 and December 31, 2018 (in thousands):


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
March 31, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Other real estate owned:
Commercial properties	$	—	$	—	$	658	$	658
Total other real estate owned	$	—	$	—	$	658	$	658

Total impaired loans:
Commercial and industrial		—		—		495		495
Total impaired loans	$	—	$	—	$	495	$	495


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Balance
Other real estate owned:
Commercial properties	$	—	$	—	$	658	$	658
Total other real estate owned	$	—	$	—	$	658	$	658

Total impaired loans:
Commercial and industrial	$	—		—		795		795
Total impaired loans	$	—	$	—	$	795	$	795

Summary of carrying amounts and estimated fair values of financial instruments

The following presents carrying amounts and estimated fair values for financial instruments as of March 31, 2019 and December 31, 2018 (in thousands):


	Carrying		Fair Value Measurements Using:
March 31, 2019	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	69,766	$	69,766	$	—	$	—
Securities available-for-sale		53,610		253		53,357		—
Loans, net		923,545		—		—		905,205
Mortgage loans held for sale		19,778		—		19,778		—
Accrued interest receivable		3,053		—		3,053		—
Other assets		702		702		—		—
Liabilities:
Deposits	$	978,101	$	—	$	980,258	$	—
Borrowings:
FHLB Topeka Borrowings – fixed rate		20,361		—		20,249		—
2016 Subordinated notes – fixed-to-floating rate		6,560		—		—		6,325
Accrued interest payable		329		—		329		—


	Carrying		Fair Value Measurements Using:
December 31, 2018	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	73,357	$	73,357	$	—	$	—
Securities available-for-sale		43,695		250		43,445		—
Loans, net		886,515		—		—		868,828
Mortgage loans held for sale		14,832		—		14,832		—
Accrued interest receivable		2,844		—		2,844		—
Other assets		693		693		—		—
Liabilities:
Deposits	$	937,758	$	—	$	940,039	$	—
Borrowings:
FHLB Topeka Borrowings – fixed rate		15,000		—		14,833		—
2016 Subordinated notes – fixed-to-floating rate		6,560		—		—		6,434
Accrued interest payable		231		—		231		—