Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	At December 31, 2019
Financial Assets	Level 1		Level 2		Level 3		Total
Securities available-for-sale
U.S. agency securities	$	—	$	9,066	$	—	$	9,066
Corporate securities		—		9,546		1,024		10,570
Municipal bonds		—		20,982		138		21,120
Mortgage-backed securities		—		62,850		—		62,850
U.S. Small Business Administration securities		—		22,451		—		22,451
Mortgage loans held for sale, at fair value		—		69,699		—		69,699
Derivatives
Interest rate lock commitments with customers		—		—		557		557
Total assets measured at fair value	$	—	$	194,594	$	1,719	$	196,313
Financial Liabilities
Derivatives
Individual forward sale commitments with investors	$	—	$	(8)	$	(195)	$	(203)
Total liabilities measured at fair value	$	—	$	(8)	$	(195)	$	(203)

	At December 31, 2018
Financial Assets	Level 1		Level 2		Level 3		Total
Securities available-for-sale
U.S. agency securities	$	—	$	15,887	$	—	$	15,887
Corporate securities		—		6,865		—		6,865
Municipal bonds		—		14,194		—		14,194
Mortgage-backed securities		—		44,836		—		44,836
U.S. Small Business Administration securities		—		15,423		—		15,423
Mortgage loans held for sale, at fair value		—		51,195		—		51,195
Derivatives
Interest rate lock commitments with customers		—		—		503		503
Total assets measured at fair value	$	—	$	148,400	$	503	$	148,903
Financial Liabilities
Derivatives
Individual forward sale commitments with investors	$	—	$	(540)	$	(34)	$	(574)
Total liabilities measured at fair value	$	—	$	(540)	$	(34)	$	(574)

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets

The following table presents impaired loans, OREO, and servicing rights measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting periods indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated.

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	3,128	$	3,128
OREO		—		—		168		168
Servicing rights		—		—		13,255		13,255

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	3,894	$	3,894
OREO		—		—		689		689
Servicing rights		—		—		14,593		14,593

Fair value reconciliation - Level 3 on recurring basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2019 and 2018.

											Net change in fair
											value for gains/
											(losses) relating to
			Purchases								items held at end of
	Beginning		and			Sales and	Transfers		Ending		year included in
	Balance		Issuances			Settlements	In		Balance		income
2019
Interest rate lock commitments with customers	$	503	$	11,063	$	(11,009)	$	—	$	557	$	54
Individual forward sale commitments with investors		(34)		(1,444)		1,283		—		(195)		(161)
Securities available-for-sale, at fair value		—		—		—		1,162		1,162		—
2018
Interest rate lock commitments with customers	$	726	$	9,722	$	(9,945)	$	—	$	503	$	(223)
Individual forward sale commitments with investors		51		850		(935)		—		(34)		(85)

Fair Value, by Balance Sheet Grouping

The following table provides estimated fair values of the Company’s financial instruments at December 31, 2019 and 2018, whether or not recognized at fair value in the Consolidated Balance Sheets:

	December 31,				December 31,
	2019				2018
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Level 1 inputs:
Cash and cash equivalents	$	45,778	$	45,778	$	32,779	$	32,779
Certificates of deposit at other financial institutions		20,902		20,902		22,074		22,074
Level 2 inputs:
Securities available-for-sale, at fair value		124,895		124,895		97,205		97,205
Loans held for sale, at fair value		69,699		69,699		51,195		51,195
FHLB stock, at cost		8,045		8,045		9,887		9,887
Accrued interest receivable		5,908		5,908		5,761		5,761
Level 3 inputs:
Securities available-for-sale, at fair value		1,162		1,162		—		—
Loans receivable, gross		1,351,893		1,377,408		1,326,238		1,320,341
Servicing rights, held at lower of cost or fair value		11,560		13,255		10,429		14,593
Fair value interest rate locks with customers		557		557		503		503
Financial Liabilities
Level 2 inputs:
Deposits		1,392,408		1,385,658		1,274,219		1,261,096
Borrowings		84,864		85,268		137,149		136,873
Subordinated note		9,885		10,599		9,865		10,242
Accrued interest payable		273		273		344		344
Paired off commitments with investors		71		71		64		64
Individual forward sale commitments with investors		8		8		540		540
Level 3 inputs:
Individual forward sale commitments with investors		195		195		34		34

Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Valuation assumptions

Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at December 31, 2019 and 2018:

Level 3		Significant		Weighted Average
Fair Value	Valuation	Unobservable		December 31,		December 31,
Instruments	Techniques	Inputs	Range	2019		2018
RECURRING
Interest rate lock commitments with customers	Quoted market prices	Pull-through expectations	80% - 99%	94.5	%	95.2	%
Individual forward sale commitments with investors	Quoted market prices	Pull-through expectations	80% - 99%	94.5	%	95.2	%
Corporate securities	Discounted cash flows	Discount rate	2.1%	2.1	%	—
Municipal bonds	Discounted cash flows	Discount rate	3.0% - 3.7%	3.4	%	—
NONRECURRING
Impaired loans	Fair value of underlying collateral	Discount applied to the obtained appraisal	0% - 50%	10.0	%	10.0	%
OREO	Fair value of collateral	Discount applied to the obtained appraisal	0% - 75%	10.0	%	10.0	%
Servicing rights	Industry sources	Pre-payment speeds	0% - 50%	17.1	%	9.4	%