Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value of Financial Instruments [Abstract]

Schedule of fair value measurements for assets and liabilities on a recurring basis

The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the three months ended March 31,  2019:

					Significant
					Other		Significant		Total Changes
			Quoted		Observable		Unobservable		In Fair Values
	Carrying		Prices		Inputs		Inputs		Included In
	Value		(Level 1)		(Level 2)		(Level 3)		Period Income
Assets:	(dollars in thousands)
AFS Securities - U.S. Treasury and government agency notes	$	10,992	$	1,988	$	9,004	$	—	$	—
Loans held for sale ("LHFS")		6,660		—		6,660		—		(75)
Mortgage servicing rights ("MSRs")		400		—		—		400		(37)
Interest-rate lock commitments ("IRLCs")		335		—		—		335		235
Liabilities:
Mandatory forward contracts		7		—		7		—		10
Best efforts forward contracts		16		—		16		—		(17)

The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2018:

					Significant
					Other		Significant		Total Changes
			Quoted		Observable		Unobservable		In Fair Values
	Carrying		Prices		Inputs		Inputs		Included In
	Value		(Level 1)		(Level 2)		(Level 3)		Period Income
Assets:	(dollars in thousands)
AFS Securities - U.S. Treasury and government agency notes	$	11,978	$	1,981	$	9,997	$	—	$	—
LHFS		9,686		—		9,686		—		192
MSRs		437		—		—		437		(40)
IRLCs		100		—		—		100		78
Liabilities:
Mandatory forward contracts		16		—		16		—		(30)
Best efforts forward contracts		—		—		—		—		(3)

Schedule of additional quantitative information about assets measured at fair value on a recurring basis

The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

	Fair Value		Valuation	Unobservable	Range
	Estimate		Technique	Input	(Weighted-Average)
March 31, 2019:	(dollars in thousands)
MSRs	$	400	Market Approach	Weighted average prepayment speed	10.70	%
IRLCs		335	Market Approach	Range of pull through rate	70% - 95	%
				Average pull through rate	80	%
December 31, 2018:
MSRs	$	437	Market Approach	Weighted average prepayment speed	9.80	%
IRLCs		100	Market Approach	Range of pull through rate	70% - 95	%
				Average pull through rate	84	%

Schedule of activity of servicing assets at fair value

The following table shows the activity in the MSRs:

	Three Months Ended March 31,
	2019		2018
		(dollars in thousands)
Beginning balance	$	437	$	477
Valuation adjustment		(37)		22
Ending balance	$	400	$	499

The following table shows the activity in the IRLCs:

	Three Months Ended March 31,
	2019		2018
		(dollars in thousands)
Beginning balance	$	100	$	22
Valuation adjustment		235		162
Ending balance	$	335	$	184

Schedule of assets measured at fair value on a nonrecurring basis

For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets:

	March 31, 2019
					Significant
					Other		Significant
			Quoted		Observable		Unobservable
	Carrying		Prices		Inputs		Inputs		Range of	Weighted
	Value		(Level 1)		(Level 2)		(Level 3)		Discount (1)	Average
	(dollars in thousands)
Impaired loans	$	5,577	$	—	$	—	$	5,577	0% - 15%	7	%
Real estate acquired through foreclosure		625		—		—		625	0% - 16%	16	%

(1) Discount based on current market conditions and estimated selling costs

	December 31, 2018
					Significant
					Other		Significant
			Quoted		Observable		Unobservable
	Carrying		Prices		Inputs		Inputs		Range of	Weighted
	Value		(Level 1)		(Level 2)		(Level 3)		Discount (1)	Average
	(dollars in thousands)
Impaired loans	$	5,678	$	—	$	—	$	5,678	0% - 16%	6.7	%

(1) Discount based on current market conditions and estimated selling costs

Estimated fair values of financial instruments

The carrying value and fair value of all financial instruments are summarized in the following tables:

	March 31, 2019
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	113,101	$	113,101	$	—	$	—	$	113,101
Certificates of deposit held for investment		8,780		8,780		—		—		8,780
AFS securities		10,992		1,988		9,004		—		10,992
HTM securities		35,793		2,008		33,390		—		35,398
LHFS		6,660		—		6,660		—		6,660
Loans receivable, net		666,135		—		—		668,511		668,511
Restricted stock investments		2,856		—		2,856		—		2,856
Accrued interest receivable		2,632		—		2,632		—		2,632
MSRs		400		—		—		400		400
IRLCs		335		—		—		335		335
Liabilities:
Deposits		709,873		—		711,905		—		711,905
Accrued interest payable		387		—		387		—		387
Borrowings		48,500		—		44,511		—		44,511
Subordinated debentures		20,619		—		—		20,619		20,619
Mandatory forward contracts		7		—		7		—		7
Best effort forward contracts		16		—		16		—		16

	December 31, 2018
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	188,340	$	188,340	$	—	$	—	$	188,340
Certificates of deposit held for investment		8,780		8,780		—		—		8,780
AFS securities		11,978		1,981		9,997		—		11,978
HTM securities		38,912		2,008		36,204		—		38,212
LHFS		9,686		—		9,686		—		9,686
Loans receivable, net		674,305		—		—		670,512		670,512
Restricted stock investments		3,766		—		3,766		—		3,766
Accrued interest receivable		2,848		—		2,848		—		2,848
MSRs		437		—		—		437		437
IRLCs		100		—		—		100		100
Liabilities:
Deposits		779,506		—		778,313		—		778,313
Accrued interest payable		419		—		419		—		419
Borrowings		73,500		—		69,210		—		69,210
Subordinated debentures		20,619		—		—		20,619		20,619
Mandatory forward contracts		16		—		16		—		16