Annual report pursuant to Section 13 and 15(d)

Fair Values of Financial Instruments (Tables)

v3.10.0.1
Fair Values of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]
The table below shows the credit loss roll forward for the Bancorp’s pooled trust preferred securities that have been classified with other-than-temporary impairment:
 
 
 
(Dollars in thousands)
 
 
 
Collateralized debt obligations
 
 
 
other-than-temporary impairment
 
Ending balance, December 31, 2017
 
$
271
 
Reduction due to sale of security
 
 
(36
)
Ending balance, December 31, 2018
 
$
235
 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
There were no transfers to or from Levels 1 and 2 during the years ended December 31, 2018 and 2017. Changes in Level 3 assets
assets relate to the result of changes in estimated fair values, payments received, and sales of securities that have been classified as
as Level 3 during all of 2018 and 2017. Assets measured at fair value on a recurring basis are summarized below:
 
         
(Dollars in thousands)
 
         
Fair Value Measurements at December 31, 2018 Using
 
(Dollars in thousands)
 
Estimated
Fair
Value
   
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
   
Significant Other
Observable Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Available-for-sale debt securities:                                
Money market fund   $ 2,480     $ 2,480     $ -     $ -  
U.S. government sponsored entities     7,894       -       7,894       -  
Collateralized mortgage obligations and residential mortgage-backed securities     135,281       -       135,281       -  
Municipal securities     94,064       -       94,064       -  
Collateralized debt obligations     2,049       -       -       2,049  
Total securities available-for-sale   $ 241,768     $ 2,480     $ 237,239     $ 2,049  
 
         
(Dollars in thousands)
 
         
Fair Value Measurements at December 31, 2017 Using
 
(Dollars in thousands)
 
Estimated
Fair
Value
   
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
   
Significant Other
Observable Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Available-for-sale debt securities:                                
Money market fund   $ 476     $ 476     $ -     $ -  
U.S. government sponsored entities     3,890       -       3,890       -  
Collateralized mortgage obligations and residential mortgage-backed securities     132,938       -       132,938       -  
Municipal securities     103,747       -       103,747       -  
Collateralized debt obligations     3,439       -       -       3,439  
Total securities available-for-sale   $ 244,490     $ 476     $ 240,575     $ 3,439  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
A reconciliation of available-for-sale securities, which require significant adjustment based on unobservable data, is presented below:
 
 
 
(Dollars in thousands)
 
 
 
Estimated Fair Value
Measurements Using
Significant Unobservable
Inputs
(Level 3)
 
 
 
Available-for-
sale securities
 
Beginning balance, January 1, 2017
 
$
2,409
 
Principal payments
 
 
(154
)
Total unrealized gains, included in other comprehensive income
 
 
1,184
 
Transfers in and/or (out) of Level 3
 
 
-
 
Ending balance, December 31, 2017
 
$
3,439
 
 
 
 
 
 
Beginning balance, January 1, 2018
 
$
3,439
 
Principal payments
 
 
(51
)
Total unrealized losses, included in other comprehensive income
 
 
(36
)
Sale out of Level 3
 
 
(1,303
)
Ending balance, December 31, 2018
 
$
2,049
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]
Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Fair Value Measurements at December 31, 2018 Using
 
(Dollars in thousands)
 
Estimated

Fair

Value
 
 
Quoted Prices in

Active Markets for

Identical Assets

(Level 1)
 
 
Significant Other

Observable Inputs

(Level 2)
 
 
Significant

Unobservable

Inputs

(Level 3)
 
Impaired loans
 
$
5,536
 
 
$
-
 
 
$
-
 
 
$
5,536
 
Foreclosed real estate
 
 
1,627
 
 
 
-
 
 
 
-
 
 
 
1,627
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
Fair Value Measurements at December 31, 2017 Using
 
(Dollars in thousands)
 
Estimated

Fair

Value
 
 
Quoted Prices in

Active Markets for

Identical Assets

(Level 1)
 
 
Significant Other

Observable Inputs

(Level 2)
 
 
Significant

Unobservable

Inputs

(Level 3)
 
Impaired loans
 
$
1,818
 
 
$
-
 
 
$
-
 
 
$
1,818
 
Foreclosed real estate
 
 
1,699
 
 
 
-
 
 
 
-
 
 
 
1,699
 
Fair Value, by Balance Sheet Grouping [Table Text Block]
The following table shows carrying values and related estimated fair values of financial instruments as of the dates indicated. Estimated fair values are further categorized by the inputs used to measure fair value. Items that are not financial instruments are not included.
 
 
 
December 31, 2018
 
 
Estimated Fair Value Measurements at December 31, 2018 Using
 
(Dollars in thousands)
 
Carrying
Value
 
 
Estimated
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
17,139
 
 
$
17,139
 
 
$
17,139
 
 
$
-
 
 
$
-
 
Certificates of deposit in other financial institutions
 
 
2,024
 
 
 
2,001
 
 
 
-
 
 
 
2,001
 
 
 
-
 
Securities available-for-sale
 
 
241,768
 
 
 
241,768
 
 
 
2,480
 
 
 
237,239
 
 
 
2,049
 
Loans held-for-sale
 
 
2,863
 
 
 
2,910
 
 
 
2,910
 
 
 
-
 
 
 
-
 
Loans receivable, net
 
 
756,438
 
 
 
747,553
 
 
 
-
 
 
 
-
 
 
 
747,553
 
Federal Home Loan Bank stock
 
 
3,460
 
 
 
3,460
 
 
 
-
 
 
 
3,460
 
 
 
-
 
Accrued interest receivable
 
 
3,632
 
 
 
3,632
 
 
 
-
 
 
 
3,632
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
 
 
127,277
 
 
 
127,277
 
 
 
127,277
 
 
 
-
 
 
 
-
 
Interest bearing deposits
 
 
802,509
 
 
 
800,349
 
 
 
543,617
 
 
 
256,732
 
 
 
-
 
Repurchase agreements
 
 
11,628
 
 
 
11,626
 
 
 
9,867
 
 
 
1,759
 
 
 
-
 
Borrowed funds
 
 
43,000
 
 
 
42,888
 
 
 
-
 
 
 
42,888
 
 
 
-
 
Accrued interest payable
 
 
186
 
 
 
186
 
 
 
-
 
 
 
186
 
 
 
-
 
 
 
 
December 31, 2017
 
 
Estimated Fair Value Measurements at December 31, 2017 Using
 
(Dollars in thousands)
 
Carrying
Value
 
 
Estimated
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
11,025
 
 
$
11,025
 
 
$
11,025
 
 
$
-
 
 
$
-
 
Certificates of deposit in other financial institutions
 
 
1,676
 
 
 
1,640
 
 
 
-
 
 
 
1,640
 
 
 
-
 
Securities available-for-sale
 
 
244,490
 
 
 
244,490
 
 
 
476
 
 
 
240,575
 
 
 
3,439
 
Loans held-for-sale
 
 
1,592
 
 
 
1,625
 
 
 
1,625
 
 
 
-
 
 
 
-
 
Loans receivable, net
 
 
612,729
 
 
 
608,506
 
 
 
-
 
 
 
-
 
 
 
608,506
 
Federal Home Loan Bank stock
 
 
3,000
 
 
 
3,000
 
 
 
-
 
 
 
3,000
 
 
 
-
 
Accrued interest receivable
 
 
3,262
 
 
 
3,262
 
 
 
-
 
 
 
3,262
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
 
 
120,556
 
 
 
120,556
 
 
 
120,556
 
 
 
-
 
 
 
-
 
Interest bearing deposits
 
 
672,448
 
 
 
670,967
 
 
 
488,528
 
 
 
182,439
 
 
 
-
 
Repurchase agreements
 
 
11,300
 
 
 
11,292
 
 
 
9,545
 
 
 
1,747
 
 
 
-
 
Borrowed funds
 
 
20,881
 
 
 
20,818
 
 
 
600
 
 
 
20,218
 
 
 
-
 
Accrued interest payable
 
 
42
 
 
 
42
 
 
 
-
 
 
 
42
 
 
 
-