Village Bank & Trust Financial Corp. - 10-Q filing on 2016-05-13

Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands):

	Fair Value Measurement
	at March 31, 2016 Using
			Quoted Prices
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets - Recurring
US Government Agencies	$	23,097	$	3,183	$	19,914	$	-
Mortgage-backed securities		2,849		-		2,849		-
Municipals		1,240		-		1,240		-

Financial Assets - Non-Recurring
Impaired loans		19,204		-		17,600		1,604
Assets held for sale		11,800		-		11,800		-
Real estate owned		6,134		-		6,075		59

	Fair Value Measurement
	at December 31, 2015 Using
			Quoted Prices
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets - Recurring
US Government Agencies	$	33,713	$	3,307	$	30,406	$	-
Mortgage-backed securities		3,001		-		3,001		-
Municipals		1,205		-		1,205		-

Financial Assets - Non-Recurring
Impaired loans		20,509		-		18,862		1,647
Assets held for sale		12,631		-		12,631		-
Real estate owned		6,249		-		6,190		59

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value at March 31, 2016 and December 31, 2015 (dollars in thousands):

	March 31, 2016
					Range
	Fair Value		Valuation	Unobservable	(Weighted
	Estimate		Techniques	Input	Average)
	(In thousands)

Impaired loans - real estate secured	$	983	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (10%)
Impaired loans - non-real estate secured	$	621	Appraisal (1) or Discounted Cash Flow	Selling costs	10%
				Discount for lack of marketability or practical life	0%-50% (20%)
Real estate owned	$	59	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (15%)
Assets held for sale	$	11,800	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (15%)

	December 31, 2015
					Range
	Fair Value		Valuation	Unobservable	(Weighted
	Estimate		Techniques	Input	Average)
	(In thousands)

Impaired loans - real estate secured	$	1,042	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (10%)
Impaired loans - non-real estate secured	$	605	Appraisal (1) or Discounted Cash Flow	Selling costs	10%
				Discount for lack of marketability or practical life	0%-50% (20%)
Real estate owned	$	59	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (15%)
Assets held for sale	$	12,631	Appraisal (1) or Internal Valuation (2)	Selling costs	6%-10% (7%)
				Discount for lack of marketability and age of appraisal	6%-30% (15%)

(1)

Fair Value is generally determined through independent appraisals of the underlying collateral, which generally included various Level 3 inputs which are not identifiable

(2)

Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying amounts of accrued interest receivable and payable approximate fair value.

		March 31,				December 31,
		2016				2015
	Level in Fair
	Value	Carrying		Estimated		Carrying		Estimated
	Hierarchy	Value		Fair Value		Value		Fair Value
	(In thousands)
Financial assets
Cash	Level 1	$	22,653	$	22,653	$	17,076	$	17,076
Cash equivalents	Level 2		8,069		8,069		186		186
Investment securities available for sale	Level 1		3,183		3,183		3,307		3,307
Investment securities available for sale	Level 2		24,003		24,003		34,612		34,612
Federal Home Loan Bank stock	Level 2		674		674		685		685
Loans held for sale	Level 2		9,150		9,150		14,373		14,373
Loans	Level 2		294,043		283,473		286,262		274,230
Impaired loans	Level 2		17,599		17,599		18,862		18,862
Impaired loans	Level 3		1,604		1,604		1,647		1,647
Assets held for sale	Level 2		11,800		11,800		12,631		12,631
Other real estate owned	Level 2		6,075		6,075		6,190		6,190
Other real estate owned	Level 3		59		59		59		59
Bank owned life insurance	Level 3		7,178		7,178		7,130		7,130
Accrued interest receivable	Level 2		2,038		2,038		2,060		2,060

Financial liabilities
Deposits	Level 2		369,084		369,544		364,848		365,294
FHLB borrowings	Level 2		5,000		5,000		6,000		6,004
Trust preferred securities	Level 2		8,764		8,984		8,764		8,984
Other borrowings	Level 2		558		558		508		508
Accrued interest payable	Level 2		91		91		1,346		1,346