Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at June 30, 2019 and December 31, 2018:



	Fair Value Measurements at June 30, 2019
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	23,716	$	—	$	23,716	$	—
Freddie Mac	6,387		—		6,387		—
Ginnie Mae	22,438		—		22,438		—
Other	11,864		—		11,864		—
Municipal bonds	7,889		—		7,889		—
U.S. Government agencies	45,947		—		45,947		—
Corporate bonds	23,340		—		23,340		—
Total available-for-sale investments	141,581		—		141,581		—
Derivative fair value asset	450		—		450		—
Total	$	142,031	$	—	$	142,031	$	—



	Fair Value Measurements at December 31, 2018
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	23,643	$	—	$	23,643	$	—
Freddie Mac	6,287		—		6,287		—
Ginnie Mae	22,061		—		22,061		—
Other	8,979		—		8,979		—
Municipal bonds	10,544		—		10,544		—
U.S. Government agencies	47,438		—		47,438		—
Corporate bonds	23,218		—		23,218		—
Total available-for-sale investments	142,170		—		142,170		—
Derivative fair value asset	1,662		—		1,662		—
Total	$	143,832	$	—	$	143,832	$	—

Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at June 30, 2019, and December 31, 2018:



	Fair Value Measurements at June 30, 2019
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Impaired loans (included in loans receivable, net) ⁽¹⁾	$	18,427	$	—	$	—	$	18,427
OREO	454		—		—		454
Total	$	18,881	$	—	$	—	$	18,881

_____________

⁽¹⁾Total fair value of impaired loans is net of $38,000 of specific reserves on performing TDRs.



	Fair Value Measurements at December 31, 2018
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Impaired loans (included in loans receivable, net) ⁽¹⁾	$	10,087	$	—	$	—	$	10,087
OREO	483		—		—		483
Total	$	10,570	$	—	$	—	$	10,570

_____________

⁽¹⁾Total fair value of impaired loans is net of $62,000 of specific reserves on performing TDRs.

Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018:



	June 30, 2019
	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired Loans	$	18,427	Market approach	Appraised value discounted by market or borrower conditions	0.0% (0.00%)

OREO	$	454	Market approach	Appraised value less selling costs	0.0% (0.00%)



	December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
	(Dollars in thousands)
Impaired Loans	$	10,087	Market approach	Appraised value discounted by market or borrower conditions	0.0% (0.0%)

OREO	$	483	Market approach	Appraised value less selling costs	0.0% (0.0%)

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated:



	June 30, 2019
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	8,119	$	8,119	$	8,119	$	—	$	—
Interest-earning deposits with banks	22,579		22,579		22,579		—		—
Investments available-for-sale	141,581		141,581		—		141,581		—
Loans receivable, net	1,052,676		1,044,364		—		—		1,044,364
FHLB stock	5,701		5,701		—		5,701		—
Accrued interest receivable	4,650		4,650		—		4,650		—
Derivative fair value asset	450		450		—		450		—

Financial Liabilities:
Deposits	432,813		432,813		432,813		—		—
Certificates of deposit, retail	412,134		416,959		—		416,959		—
Certificates of deposit, brokered	180,763		181,127		—		181,127		—
Advances from the FHLB	105,000		105,555		—		105,555		—
Accrued interest payable	461		461		—		461		—



	December 31, 2018
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	8,122	$	8,122	$	8,122	$	—	$	—
Interest-earning deposits with banks	8,888		8,888		8,888		—		—
Investments available-for-sale	142,170		142,170		—		142,170		—
Loans receivable, net	1,022,904		1,012,114		—		—		1,012,114
FHLB stock	7,310		7,310		—		7,310		—
Accrued interest receivable	4,068		4,068		—		4,068		—
Derivative fair value asset	1,662		1,662		—		1,662		—

Financial Liabilities:
Deposits	450,033		450,033		450,033		—		—
Certificates of deposit, retail	391,174		390,101		—		390,101		—
Certificates of deposit, brokered	97,825		97,466		—		97,466		—
Advances from the FHLB	146,500		146,357		—		146,357		—
Accrued interest payable	478		478		—		478		—