FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2019

FAIR VALUE

Summary of assets measured at fair value on recurring basis

The following presents assets measured on a recurring basis at June 30, 2019 and December 31, 2018 (in thousands):

	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
June 30, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	255	$	—	$	—	$	255
GNMA		—		38,537		—		38,537
FNMA		—		3,493		—		3,493
Securities issued by US. Government sponsored entities and agencies		—		4,293		—		4,293
Corporate CMO and MBS		—		5,120		—		5,120
Total securities available-for-sale	$	255	$	51,443	$	—	$	51,698
Equity securities	$	712	$	—	$	—	$	712
Interest rate lock and forward delivery commitments	$	—	$	739	$	—	$	739

	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 June 30, 2019 and December 31, 2018 (in thousands):

	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
June 30, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Other real estate owned:
Commercial properties	$	—	$	—	$	658	$	658
Total impaired loans:
Commercial and industrial	$	—	$	—	$	95	$	95

	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 impaired loans:
Commercial and industrial	$	—	$	—	$	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 June 30, 2019 and December 31, 2018 (in thousands):

	Carrying		Fair Value Measurements Using:
June 30, 2019	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	92,769	$	92,769	$	—	$	—
Securities available-for-sale		51,698		255		51,443		—
Loans, net		931,820		—		—		912,965
Mortgage loans held for sale		36,269		—		36,269		—
Accrued interest receivable		3,184		—		3,184		—
Other assets		712		712		—		—
Liabilities:
Deposits	$	1,005,177	$	—	$	1,008,032	$	—
Borrowings:
FHLB Topeka Borrowings – fixed rate		36,060		—		36,022		—
2016 Subordinated notes –  fixed-to-floating rate		6,560		—		—		6,217
Accrued interest payable		274		—		274		—

	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		—