Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements

Summary of significant assets and liabilities carried at fair value and placement in the fair value hierarchy

	March 31, 2015
(Dollars in thousands)	(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Loans held for sale	$	—	$	11,583	$	—
Derivative loan commitments	—		—		158
Liabilities measured on a recurring basis:
Forward loan sale commitments	—		—		36
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	—		—		1,034

	December 31, 2014
(Dollars in thousands)	(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Derivative loan commitments	$	—	$	—	$	98
Liabilities measured on a recurring basis:
Forward loan sale commitments	—		—		96
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	—		—		2,075
Foreclosed real estate	—		—		1,285
Real estate held for sale	—		—		3,831

Schedule of change in Level 3 assets and liabilities that are measured on a recurring basis

	Derivative Loan Commitments and Forward Loan Sale Commitments
(Dollars in thousands)	2015			2014
Balance at beginning of period	$	2		$	244
Total realized and unrealized gains (losses) included in net income	121			(11		)
Settlements and closed loans	(1		)	73
Balance at end of period	122			306
Total unrealized gains (losses) relating to instruments still held at period end	$	121		$	(11	)

Schedule of additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis for which the bank utilized Level 3 inputs to determine fair value

March 31, 2015

(Dollars in thousands)	Fair Value			Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Assets measured on a recurring basis:
Derivative loan commitments	$	158		Investor pricing	Pull-through rate	82.5-100%
					Pricing spreads	98.58-106.86%
Liabilities measured on a recurring basis:
Forward loan sale commitments	(36		)	Investor pricing	Pull-through rate	82.5-100%
					Pricing spreads	98.58-107.66%
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	1,034			Appraisal of collateral	Collateral discounts/selling costs	5% - 30%

December 31, 2014

Assets measured on a recurring basis:
Derivative commitments	$	98		Investor pricing	Pull-through rate	82.5-100%
					Pricing spreads	99.30-107.46%
Liabilities measured on a recurring basis:
Forward loan sale commitments	(96		)	Investor pricing	Pull-through rate	82.5-100%
					Pricing spreads	99.33-108.00%
Assets measured on a non-recurring basis:
Impaired loans (collateral dependent)	2,075			Appraisal of collateral	Collateral discounts/selling costs	5% - 30%
Foreclosed real estate	1,285			Appraisal of collateral	Collateral discounts/selling costs	5% - 30%
Real estate held for sale	3,831			Appraisal of collateral	Selling costs	5% - 6%

Summary of carrying values, estimated fair values and placement in the fair value hierarchy of the Company's financial instruments

	March 31, 2015 (unaudited)				Fair value measurement
(Dollars in thousands)	Carrying Amount		Fair Value		Level 1 inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:
Loans, net	$	391,242	$	398,137	$	—	$	—	$	398,137
FHLB stock	3,207		N/A		—		—		N/A
Financial liabilities:
Certificates of deposit	117,116		118,560		—		118,560		—
Borrowed funds	37,000		37,000		—		37,000		—

	December 31, 2014				Fair value measurement
(Dollars in thousands)	Carrying Amount		Fair Value		Level 1 inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:
Loans, net	$	383,909	$	387,560	$	—	$	—	$	387,560
Loans held for sale	10,995		11,173		—		—		11,173
FHLB stock	3,207		N/A		—		—		N/A
Financial liabilities:
Certificates of deposit	118,206		119,987		—		119,987		—
Borrowed funds	47,800		47,809		—		47,809		—

(1)  Excluded from this table are certain financial instruments that approximate fair value, as they wereshort-term in nature or payable on demand.  These include cash and cash equivalents, certificates of deposit, accrued interest receivable, non-term deposit accounts, and accrued interest payable.  The respective carrying values of cash and cash equivalents, certificates of deposit and non-term deposit accounts would all be considered to be classified within Level 1 of their fair value hierarchy.  The $1.3 million carrying value of accrued interest receivable on loans would generally be considered Level 3 in the fair value hierarchy and the carrying value of accrued interest payable of $9,000 would be considered Level 2