FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2020

Summary of assets measured at fair value on recurring basis

The following presents assets measured on a recurring basis at March 31, 2020 and December 31, 2019 (in thousands):


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
March 31, 2020	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	258	$	—	$	—	$	258
GNMA		—		40,871		—		40,871
FNMA		—		2,735		—		2,735
Corporate CMO and MBS		—		8,636		—		8,636
Total securities available-for-sale	$	258	$	52,242	$	—	$	52,500
Equity securities	$	726	$	—	$	—	$	726
Interest rate lock and forward delivery commitments	$	—	$	4,025	$	—	$	4,025


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
December 31, 2019	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	254	$	—	$	—	$	254
GNMA		—		45,312		—		45,312
FNMA		—		2,917		—		2,917
Corporate CMO and MBS		—		10,420		—		10,420
Total securities available-for-sale	$	254	$	58,649	$	—	$	58,903
Equity securities	$	713	$	—	$	—	$	713
Interest rate lock and forward delivery commitments	$	—	$	1,184	$	—	$	1,184

Mutual funds

Summary of assets measured at fair value on nonrecurring basis

The following presents assets measured on a nonrecurring basis as of March 31, 2020 and December 31, 2019 (in thousands):


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
March 31, 2020	(Level 1)		(Level 2)		(Level 3)		Balance
Other real estate owned:
Commercial properties	$	—	$	—	$	658	$	658

Total impaired loans:
Commercial and industrial	$	—	$	—	$	3,455	$	3,455


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

Total impaired loans:
Commercial and industrial	$	—	$	—	$	3,579	$	3,579

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, 2020 and December 31, 2019 (in thousands):


	Carrying		Fair Value Measurements Using:
March 31, 2020	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	118,514	$	118,514	$	—	$	—
Securities available-for-sale		52,500		258		52,242		—
Loans, net		1,035,709		—		—		1,024,928
Mortgage loans held for sale		64,120		—		64,120		—
Accrued interest receivable		3,107		—		3,107		—
Other assets		726		726		—		—
Liabilities:
Deposits		1,178,450		—		1,180,755		—
Borrowings:
FHLB Topeka borrowings – fixed rate		10,000		—		10,060		—
Subordinated notes – fixed-to-floating rate		14,459		—		—		13,800
Accrued interest payable	$	417	$	—	$	417	$	—


	Carrying		Fair Value Measurements Using:
December 31, 2019	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	78,638	$	78,638	$	—	$	—
Securities available-for-sale		58,903		254		58,649		—
Loans, net		990,132		—		—		974,142
Mortgage loans held for sale		48,312		—		48,312		—
Accrued interest receivable		3,048		—		3,048		—
Other assets		713		713		—		—
Liabilities:
Deposits		1,086,784		—		1,089,261		—
Borrowings:
FHLB Topeka borrowings – fixed rate		10,000		—		10,003		—
Subordinated notes – fixed-to-floating rate		6,560		—		—		6,004
Accrued interest payable	$	299	$	—	$	299	$	—