FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2019

Summary of assets measured at fair value on recurring basis

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


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
September 30, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	255	$	—	$	—	$	255
GNMA		—		45,735		—		45,735
FNMA		—		3,309		—		3,309
Securities issued by US. Government sponsored entities and agencies		—		—		—		—
Corporate CMO and MBS		—		12,192		—		12,192
Total securities available-for-sale	$	255	$	61,236	$	—	$	61,491
Equity securities	$	718	$	—	$	—	$	718
Interest rate lock and forward delivery commitments	$	—	$	2,148	$	—	$	2,148


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


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

Total impaired loans:
Commercial and industrial	$	—	$	—	$	342	$	342


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


	Carrying		Fair Value Measurements Using:
September 30, 2019	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	146,176	$	146,176	$	—	$	—
Securities available-for-sale		61,491		255		61,236		—
Loans, net		918,911		—		—		899,750
Mortgage loans held for sale		69,231		—		69,231		—
Accrued interest receivable		2,968		—		2,968		—
Other assets		718		718		—		—
Liabilities:
Deposits		1,108,904		—		1,111,853		—
Borrowings:
FHLB Topeka Borrowings – fixed rate		10,000		—		9,983		—
2016 Subordinated notes – fixed-to-floating rate		6,560		—		—		6,110
Accrued interest payable		356		—		356		—


	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		—