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Fair Values of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2015
Fair Values of Financial Instruments [Abstract]  
Financial assets accounted for at fair value on a nonrecurring and recurring basis
The following table sets forth financial assets that were accounted for at fair value on a nonrecurring and recurring basis by level within the fair value hierarchy as of March, 31, 2015 and December 31, 2014:

    
March 31, 2015
Fair Value Measurement Using:
 
  
March 31,
2015
  
Quoted Prices in Active Markets
For Identical
Assets
(Level 1)
  
Significant
Other
Observable
Inputs
(Level 2)
  
Significant
Unobservable
Inputs
(Level 3)
 
  
(dollars in thousands)
 
Nonrecurring fair value measurements
        
Impaired loans
 
$
14,519
  
$
-
  
$
-
  
$
14,519
 
Foreclosed real estate
  
2,211
   
-
   
-
   
2,211
 
Total nonrecurring fair value measurements
 
$
16,730
  
$
-
  
$
-
  
$
16,730
 
 
Recurring fair value measurements
                
Mortgage servicing rights
 
$
619
  
$
-
  
$
-
  
$
619
 
Rate lock commitments
 
$
7
  
$
-
  
$
7
  $  
Mandatory forward contracts
 
$
(27
)
 
$
-
  
$
(27
)
 $  
Total recurring fair value measurements
 
$
599
  
$
-
  
$
(20
)
 
$
619
 

    
December 31, 2014
Fair Value Measurement Using:
 
  
December 31,
 2014
  
Quoted Prices in Active Markets
For Identical
Assets
(Level 1)
  
Significant
Other
Observable
Inputs
(Level 2)
  
Significant
 Unobservable
Inputs
(Level 3)
 
  
(dollars in thousands)
 
Nonrecurring fair value measurements
        
Impaired loans
 
$
15,959
  
$
-
  
$
-
  
$
15,959
 
Foreclosed real estate
  
1,947
   
-
   
-
   
1,947
 
Total nonrecurring fair value measurements
 
$
17,906
  
$
-
  
$
-
  
$
17,906
 
 
Recurring fair value measurements
                
Mortgage servicing rights
 
$
658
  
$
-
      
$
658
 
Rate lock commitments
 
$
139
  
$
-
  
$
139
  
$
  
Mandatory forward contracts
 
$
(59
)
 
$
-
  
$
(59
)
 
$
  
Total recurring fair value measurements
 
$
738
  
$
-
  
$
80
  
$
658
 
Assets measured at fair value on a recurring and nonrecurring basis utilizing level 3 input
The following table presents additional quantitative information about assets measured at fair value on a recurring basis and for which Bancorp has utilized Level 3 inputs to determine fair value:

  
Quantitative Information about Level 3 Fair Value Measurements
 
  
Fair Value
 Estimate
 
Valuation
Techniques
Unobservable Input
 
Range (Weighted
 Average)
 
March 31, 2015
      
Mortgage servicing rights
 
$
619
 
Market approach
Weighted average prepayment speed
  
9.89
%
           
December 31, 2014
          
Mortgage servicing rights
 
$
658
 
Market approach
Weighted average prepayment speed
  
8.81
%

All appraisals are reviewed by the credit department; however, no modifications or adjustments are made to the appraisals received.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Bancorp has utilized Level 3 inputs to determine fair value:

  
Quantitative Information about Level 3 Fair Value Measurements
 
  
Fair Value
Estimate
 
Valuation
Techniques
Unobservable Input
 
Range (Weighted
 Average)
 
March 31, 2015
      
Impaired loans
 
$
14,519
 
PV of future cash flows (1)
Discount rate
  
-6.00
%
 
  
$
-
 
Appraisal of collateral (2)
Liquidation expenses (3)
  
-6.00
%
           
Foreclosed real estate
 
$
2,211
 
Appraisal of  collateral (2),(4)
Appraisal adjustments (3)
 
-6.74% to -100%
 (-18.17%)
 
           
December 31, 2014
          
Impaired loans
 
$
15,589
 
PV of future cash flows (1)
Discount rate
  
-6.00
%
 
  
$
370
 
Appraisal of collateral (2)
Liquidation expenses (3)
  
-6.00
%
           
Foreclosed real estate
 
$
1,947
 
Appraisal of  collateral (2),(4)
Appraisal adjustments (3)
 
-6.51% to -100%
(-13.94%)
 

(1)Cash flow which generally includes various level 3 inputs which are not identifiable.
(2)Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable.
(3)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.  The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
(4)Includes qualitative adjustments by management and estimated liquidation expenses.
Estimated fair values of financial instruments
The estimated fair values of Bancorp's financial instruments as of March 31, 2015 and December 31, 2014 were as follows:
 
    
Fair Value Measurement at
March 31, 2015
 
  
Carrying
Amount
  
Fair
Value
  
Quoted Prices
in Active
Markets
For Identical
Assets
(Level 1)
  
Significant Other
Observable
Inputs
(Level 2)
  
Significant Unobservable
Inputs
(Level 3)
 
Financial Assets
 
(dollars in thousands)
 
Cash and cash equivalents
 
$
51,644
  
$
51,644
  
$
51,644
  
$
-
  
$
-
 
Investment securities (HTM)
  
57,919
   
58,860
   
-
   
58,860
   
-
 
Loans held for sale
  
13,059
   
13,225
   
-
   
13,225
   
-
 
Loans receivable, net
  
618,627
   
635,567
   
-
   
-
   
635,567
 
FHLB stock
  
5,583
   
5,583
   
-
   
5,583
   
-
 
Accrued interest receivable
  
2,315
   
2,315
   
-
   
2,315
   
-
 
Mortgage servicing rights
  
619
   
619
   
-
   
-
   
619
 
Rate lock commitments
  
7
   
7
   
-
   
7
   
-
 
                     
Financial Liabilities
                    
Deposits
 
$
546,535
  
$
547,045
   
-
   
547,045
   
-
 
FHLB advances
  
115,000
   
108,743
   
-
   
108,743
   
-
 
Subordinated debentures
  
24,119
   
24,119
   
-
   
-
   
24,119
 
Accrued interest payable
  
2,343
   
2,343
   
-
   
2,343
   
-
 
Mandatory forward contracts
  
27
   
27
   
-
   
27
   
-
 
Off Balance Sheet Commitments
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 

    
Fair Value Measurement At
December 31, 2014
 
  
Carrying
Amount
  
Fair
Value
  
Quoted Prices
in Active Markets
For Identical
Assets
(Level 1)
  
Significant
Other
Observable
Inputs
(Level 2)
  
Significant
Unobservable
Inputs
(Level 3)
 
Financial Assets
 
(dollars in thousands)
 
Cash and cash equivalents
 
$
33,335
  
$
33,335
  
$
33,335
  
$
-
  
$
-
 
Investment securities (HTM)
  
59,616
   
60,123
   
-
   
60,123
   
-
 
Loans held for sale
  
7,165
   
7,211
   
-
   
7,211
   
-
 
Loans receivable, net
  
633,882
   
636,696
   
-
   
-
   
636,696
 
FHLB stock
  
5,936
   
5,936
   
-
   
5,936
   
-
 
Accrued interest receivable
  
2,297
   
2,297
   
-
   
2,297
   
-
 
Mortgage servicing rights
  
658
   
658
   
-
   
-
   
658
 
Rate lock commitments
  
139
   
139
   
-
   
139
   
-
 
                     
Financial Liabilities
                    
Deposits
 
$
543,814
  
$
544,751
   
-
   
544,751
   
-
 
FHLB advances
  
115,000
   
108,859
   
-
   
108,859
   
-
 
Subordinated debentures
  
24,119
   
24,119
   
-
   
-
   
24,119
 
Accrued interest payable
  
2,136
   
2,136
   
-
   
2,136
   
-
 
Mandatory forward contracts
  
59
   
59
   
-
   
59
   
-
 
Off Balance Sheet Commitments
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-