Fair value (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
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 September 30, 2017 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
 
$
31,991
 
$
-
 
$
31,991
 
$
-
 
Mortgage-backed securities
 
 
10,518
 
 
-
 
 
10,518
 
 
-
 
Other investments
 
 
2,325
 
 
1,000
 
 
1,325
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets - Non-Recurring
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
 
15,574
 
 
-
 
 
14,039
 
 
1,535
 
Assets held for sale
 
 
841
 
 
-
 
 
-
 
 
841
 
Real estate owned
 
 
1,788
 
 
-
 
 
1,788
 
 
-
 
 
 
 
Fair Value Measurement
 
 
 
at December 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
 
$
32,246
 
$
2,103
 
$
30,143
 
$
-
 
Mortgage-backed securities
 
 
11,648
 
 
9,450
 
 
2,198
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets - Non-Recurring
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
 
15,441
 
 
-
 
 
14,467
 
 
974
 
Assets held for sale
 
 
841
 
 
-
 
 
-
 
 
841
 
Real estate owned
 
 
2,926
 
 
-
 
 
2,926
 
 
-
 
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 September 30, 2017 and December 31, 2016 (dollars in thousands):
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
Range
 
 
 
Fair Value
 
Valuation
 
Unobservable
 
(Weighted
 
 
 
Estimate
 
Techniques
 
Input
 
Average)
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans - real estate secured
 
$
287
 
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
 
$
1,248
 
Appraisal (1) or Discounted Cash Flow
 
Selling costs
 
10%
 
 
 
 
 
 
 
 
Discount for lack of marketability or practical life
 
0%-50% (20%)
 
Assets held for sale
 
$
841
 
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
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Range
 
 
 
Fair Value
 
Valuation
 
Unobservable
 
(Weighted
 
 
 
Estimate
 
Techniques
 
Input
 
Average)
 
 
 
 
 
 
 
 
 
 
 
Impaired loans - real estate secured
 
$
517
 
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
 
$
457
 
Appraisal (1) or Discounted Cash Flow
 
Selling costs
 
10%
 
 
 
 
 
 
 
 
Discount for lack of  marketability or practical life
 
0%-50% (20%)
 
Assets held for sale
 
$
841
 
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.
 
 
 
 
 
September 30,
 
December 31,
 
 
 
 
 
2017
 
2016
 
 
 
Level in Fair
 
 
 
 
 
 
 
 
 
 
 
Value
 
Carrying
 
Estimated
 
Carrying
 
Estimated
 
 
 
Hierarchy
 
Value
 
Fair Value
 
Value
 
Fair Value
 
 
 
(In thousands)
 
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
Level 1
 
$
15,684
 
$
15,684
 
$
10,848
 
$
10,848
 
Cash equivalents
 
Level 2
 
 
15,026
 
 
15,026
 
 
948
 
 
948
 
Investment securities available for sale
 
Level 1
 
 
1,000
 
 
1,000
 
 
11,553
 
 
11,553
 
Investment securities available for sale
 
Level 2
 
 
43,834
 
 
43,834
 
 
32,341
 
 
32,341
 
Federal Home Loan Bank stock
 
Level 2
 
 
466
 
 
466
 
 
512
 
 
512
 
Loans held for sale
 
Level 2
 
 
5,641
 
 
5,641
 
 
14,784
 
 
14,784
 
Loans
 
Level 2
 
 
331,428
 
 
330,874
 
 
321,659
 
 
322,386
 
Impaired loans
 
Level 2
 
 
14,039
 
 
14,039
 
 
14,467
 
 
14,467
 
Impaired loans
 
Level 3
 
 
1,535
 
 
1,535
 
 
974
 
 
974
 
Assets held for sale
 
Level 3
 
 
841
 
 
841
 
 
841
 
 
841
 
Other real estate owned
 
Level 2
 
 
1,788
 
 
1,788
 
 
2,926
 
 
2,926
 
Bank owned life insurance
 
Level 3
 
 
7,222
 
 
7,222
 
 
7,093
 
 
7,093
 
Accrued interest receivable
 
Level 2
 
 
2,516
 
 
2,516
 
 
2,274
 
 
2,274
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
Level 2
 
 
407,404
 
 
407,503
 
 
383,277
 
 
383,985
 
FHLB borrowings
 
Level 2
 
 
1,600
 
 
1,600
 
 
2,400
 
 
2,402
 
Trust preferred securities
 
Level 2
 
 
8,764
 
 
9,380
 
 
8,764
 
 
8,565
 
Other borrowings
 
Level 2
 
 
-
 
 
-
 
 
81
 
 
81
 
Accrued interest payable
 
Level 2
 
 
142
 
 
142
 
 
70
 
 
70