Disclosures about Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements of Assets on a Recurring Basis

The following table presents the fair value measurements of assets recognized in the accompanying consolidated condensed balance sheet measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2015 and December 31, 2014 (dollars in thousands):


			Fair Value Measurements Using
Available-for-sale securities:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2015:
Ginnie Mae and GSE mortgage-backed pass-through securities	$	44,739	$	—	$	44,739	$	—
Ginnie Mae collateralized mortgage obligations		1,961		—		1,961		—
Mutual fund		1,894		1,894		—		—

	$	48,594	$	1,894	$	46,700	$	—

At December 31, 2014:
Ginnie Mae and GSE mortgage-backed pass-through securities	$	44,198	$	—	$	44,198	$	—
Ginnie Mae collateralized mortgage obligations		2,019		—		2,019		—
Mutual fund		1,867		1,867		—		—

	$	48,084	$	1,867	$	46,217	$	—

Fair Value Measurements of Assets on a Nonrecurring Basis

The following table presents the fair value measurements of assets recognized in the accompanying balance sheet measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall at March 31, 2015 and December 31, 2014:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2015:
Impaired loans	$	824	$	—	$	—	$	824
Other real estate owned		—		—		—		—
At December 31, 2014:
Impaired loans	$	940	$	—	$	—	$	940
Other real estate owned		1,166		—		—		1,166
Mortgage servicing rights		530						530

Unobservable Inputs Used in Recurring and Nonrecurring Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at March 31, 2015 (dollars in thousands):

Fair Value

Valuation Technique

Unobservable Inputs

Rate/Rate Range

Impaired loans

824

Third party valuations

Discount to reflect realizable value

0.0% - 24.9

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2014 (dollars in thousands):


	Fair Value		Valuation Technique	Unobservable Inputs	Rate/Rate Range
Impaired loans	$	940	Third party valuations	Discount to reflect realizable value		0.6% - 64.9	%
Other real estate owned		1,166	Third party valuations	Discount to reflect realizable value		6.4% - 7.0	%
Mortgage servicing rights		530	Third party valuations	Discount rate		5.06% - 6.08	%
				Prepayment speed		10.22% - 22.74	%

Estimates of Fair Value of Financial Instruments

The following table presents the estimates of fair value of financial instruments and the level within the fair value hierarchy in which the fair value measurements fall (dollars in thousands) at March 31, 2015:

Fair Value Measurements Using

Carrying
Value

Fair
Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Assets

Cash and cash equivalents

35,266

—

Interest-bearing time deposits

4,164

4,183

—

Investment securities held to maturity

9,936

9,997

—

4,578

5,419

Loans held for sale

748

—

748

—

Loans

319,888

327,145

—

316,297

10,848

Stock in FHLB

3,753

—

3,753

—

Mortgage servicing rights

522

—

522

Interest and dividends receivable

1,163

—

1,163

—

Liabilities

Deposits

390,577

391,266

255,661

135,605

—

Borrowings

42,810

38,841

—

32,604

6,237

Drafts payable

1,129

—

1,129

—

Interest and dividends payable

416

—

416

—


Fair Value Measurements Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents	$	33,142	$	33,142	$	33,142	$	—	$	—
Interest-bearing time deposits		4,164		4,162		4,162		—		—
Investment securities held to maturity		7,082		7,110		—		4,756		2,354
Loans held for sale		332		332		—		332		—
Loans		316,113		322,035		—		311,196		10,839
Stock in FHLB		3,753		3,753		—		3,753		—
Mortgage servicing rights		530		530		—		—		530
Interest and dividends receivable		1,179		1,179		—		1,179		—
Liabilities
Deposits		378,947		379,339		241,918		137,421		—
Borrowings		45,810		41,605		—		35,543		6,062
Drafts payable		1,298		1,298		—		1,298		—
Interest and dividends payable		97		97		—		97		—