Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2014 |
Fair Value of Financial Instruments [Abstract] | ' |
Fair Value of Financial Instruments | ' |
Note 7: Fair Value of Financial Instruments |
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Management uses its best judgment in estimating the fair value of the Company's financial instruments, however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. |
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The Company follows the guidance issued under ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for measuring fair value under GAAP, and identifies required disclosures on fair value measurements. |
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ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are as follows: |
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Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
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Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. |
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Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). |
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An asset or liability's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. |
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For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2014 and December 31, 2013 were as follows: |
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| | | | | (Level 1) | | | (Level 2) | | | (Level 3) | | | | | |
| | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | | | | |
| Total | | | | | | | |
| | | | | | | | |
(dollars in thousands) | | | | | | | | |
| | | | | | | | | | | | | | | | |
30-Jun-14 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Collateralized mortgage obligations | | $ | 143,723 | | | $ | - | | | $ | 143,723 | | | $ | - | | | | | |
Mortgage-backed securities | | | 14,200 | | | | - | | | | 14,200 | | | | - | | | | | |
Municipal securities | | | 11,944 | | | | - | | | | 11,944 | | | | - | | | | | |
Corporate bonds | | | 27,618 | | | | - | | | | 24,612 | | | | 3,006 | | | | | |
Asset-backed securities | | | 19,047 | | | | - | | | | 19,047 | | | | - | | | | | |
Trust Preferred Securities | | | 2,977 | | | | - | | | | - | | | | 2,977 | | | | | |
Other securities | | | 125 | | | | - | | | | 125 | | | | - | | | | | |
Securities Available for Sale | | $ | 219,634 | | | $ | - | | | $ | 213,651 | | | $ | 5,983 | | | | | |
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31-Dec-13 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Collateralized mortgage obligations | | $ | 123,440 | | | $ | - | | | $ | 123,440 | | | $ | - | | | | | |
Mortgage-backed securities | | | 16,181 | | | | - | | | | 16,181 | | | | - | | | | | |
Municipal securities | | | 9,643 | | | | - | | | | 9,643 | | | | - | | | | | |
Corporate bonds | | | 33,253 | | | | - | | | | 30,247 | | | | 3,006 | | | | | |
Asset-backed securities | | | 19,407 | | | | - | | | | 19,407 | | | | - | | | | | |
Trust Preferred Securities | | | 2,850 | | | | - | | | | - | | | | 2,850 | | | | | |
Other securities | | | 117 | | | | - | | | | 117 | | | | - | | | | | |
Securities Available for Sale | | $ | 204,891 | | | $ | - | | | $ | 199,035 | | | $ | 5,856 | | | | | |
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The following table presents a reconciliation of the securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2014 and 2013: |
| | Three Months Ended | | | Three Months Ended | | | | | |
30-Jun-14 | 30-Jun-13 | | | | |
Level 3 Investments Only | | Trust | | | Corporate | | | Trust Preferred Securities | | | Corporate | | | | | |
(dollars in thousands) | Preferred Securities | Bonds | Bonds | | | | |
Balance, April 1st | | $ | 2,807 | | | $ | 3,006 | | | $ | 3,238 | | | $ | 3,007 | | | | | |
Unrealized gains (losses) | | | 177 | | | | - | | | | (65 | ) | | | (1 | ) | | | | |
Paydowns | | | - | | | | - | | | | (11 | ) | | | - | | | | | |
Impairment charges on Level 3 | | | (7 | ) | | | - | | | | - | | | | - | | | | | |
Balance, June 30th | | $ | 2,977 | | | $ | 3,006 | | | $ | 3,162 | | | $ | 3,006 | | | | | |
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| | Six Months Ended | | | Six Months Ended | | | | | |
30-Jun-14 | 30-Jun-13 | | | | |
Level 3 Investments Only | | Trust | | | Corporate | | | Trust Preferred Securities | | | Corporate | | | | | |
(dollars in thousands) | Preferred Securities | Bonds | Bonds | | | | |
Balance, January 1st | | $ | 2,850 | | | $ | 3,006 | | | $ | 3,187 | | | $ | 3,007 | | | | | |
Unrealized gains (losses) | | | 134 | | | | - | | | | (7 | ) | | | (1 | ) | | | | |
Paydowns | | | - | | | | - | | | | (18 | ) | | | - | | | | | |
Impairment charges on Level 3 | | | (7 | ) | | | - | | | | - | | | | - | | | | | |
Balance, June 30th | | $ | 2,977 | | | $ | 3,006 | | | $ | 3,162 | | | $ | 3,006 | | | | | |
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For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2014 and December 31, 2013 were as follows: |
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| | | | | (Level 1) | | | (Level 2) | | | (Level 3) | | | | | |
| | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | | | | |
| | | | | | | | |
| Total | | | | | | | |
(dollars in thousands) | | | | | | | | |
June 30, 2014: | | | | | | | | | | | | | | | | |
Impaired loans | | $ | 16,355 | | | $ | - | | | $ | - | | | $ | 16,355 | | | | | |
Other real estate owned | | | 1,059 | | | | - | | | | - | | | | 1,059 | | | | | |
SBA servicing assets | | | 4,067 | | | | - | | | | - | | | | 4,067 | | | | | |
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December 31, 2013: | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | $ | 17,474 | | | $ | - | | | $ | - | | | $ | 17,474 | | | | | |
Other real estate owned | | | 3,921 | | | | - | | | | - | | | | 3,921 | | | | | |
SBA servicing assets | | | 3,477 | | | | - | | | | - | | | | 3,477 | | | | | |
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The table below presents additional quantitative information about level 3 assets measured at fair value on a nonrecurring basis (dollars in thousands): |
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| | Quantitative Information about Level 3 Fair Value Measurements | | | | | | | | | | | | | |
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Asset Description | | Fair Value | | Valuation | Unobservable Input | Range Weighted | | | | | | | | | | | | | |
Technique | Average | | | | | | | | | | | | | |
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June 30, 2014: | | | | | | | | | | | | | | | | | | | | |
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Impaired loans | | $ | 16,355 | | Fair Value of | Appraised Value (2) | 0% - 78% (29%) (4) | | | | | | | | | | | | | |
Collateral (1) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Other real estate owned | | $ | 1,059 | | Fair Value of | Appraised Value (2) | 8% - 38% (33%)(4) | | | | | | | | | | | | | |
Collateral (1) | Sales Price | | | | | | | | | | | | | |
SBA Servicing Assets | | $ | 4,067 | | | Individual Loan | -3 | | | | | | | | | | | | | |
Fair Value | Valuation (3) | | | | | | | | | | | | | |
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December 31, 2013: | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | $ | 17,474 | | Fair Value of | Appraised Value (2) | 0% - 40% (23%) (4) | | | | | | | | | | | | | |
Collateral (1) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Other real estate owned | | $ | 3,921 | | Fair Value of | Appraised Value (2) | 4% - 77% (17%) (4) | | | | | | | | | | | | | |
Collateral (1) | Sales Price | | | | | | | | | | | | | |
SBA Servicing Assets | | $ | 3,477 | | | Individual Loan | -3 | | | | | | | | | | | | | |
Fair Value | Valuation (3) | | | | | | | | | | | | | |
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-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that are not identifiable. | | | | | | | | | | | | | | | | | | | |
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | | | | | | | | | | | | | | | | | | | |
(3) | There is a lack of transactional data in this market place for the non-guaranteed portion of SBA loans. | | | | | | | | | | | | | | | | | | | |
(4) | The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. | | | | | | | | | | | | | | | | | | | |
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The significant unobservable inputs for impaired loans and other real estate owned are the appraised value or an agreed upon sales price. These values are adjusted for estimated costs to sell which are incremental direct costs to transact a sale such as broker commissions, legal fees, closing costs and title transfer fees. The costs must be considered essential to the sale and would not have been incurred if the decision to sell had not been made. The costs to sell are based on costs associated with the Company's actual sales of other real estate owned which are assessed annually. |
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The following table presents an analysis of the activity in the SBA servicing assets for the three and six months ended June 30, 2014 and 2013: |
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(dollars in thousands) | | Three Months Ended June 30, | | | Six Months Ended June 30, | | | | | |
| | 2014 | | | 2013 | | | 2014 | | | 2013 | | | | | |
Beginning balance | | $ | 3,805 | | | $ | 2,491 | | | $ | 3,477 | | | $ | 2,340 | | | | | |
Additions | | | 271 | | | | 482 | | | | 575 | | | | 628 | | | | | |
Fair value adjustments | | | (9 | ) | | | (69 | ) | | | 15 | | | | (64 | ) | | | | |
Ending balance | | $ | 4,067 | | | $ | 2,904 | | | $ | 4,067 | | | $ | 2,904 | | | | | |
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Fair Value Assumptions |
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The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company's financial instruments at June 30, 2014 and December 31, 2013. |
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Cash and Cash Equivalents (Carried at Cost) |
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The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets' fair values. |
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Investment Securities |
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The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted prices. For certain securities, which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments, are generally based on available market evidence (Level 3). In the absence of such evidence, management's best estimate is used. Management's best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. |
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The types of instruments valued based on matrix pricing in active markets include all of the Company's U.S. government and agency securities, corporate bonds, asset backed securities, and municipal obligations. Such instruments are generally classified within Level 2 of the fair value hierarchy. As required by ASC 820-10, the Company does not adjust the matrix pricing for such instruments. |
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Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, and may be adjusted to reflect illiquidity and/or non-transferability, with such adjustment generally based on available market evidence. In the absence of such evidence, management's best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. The Level 3 investment securities classified as available for sale are comprised of various issues of trust preferred securities and a single corporate bond. |
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The trust preferred securities are pools of similar securities that are grouped into an asset structure commonly referred to as collateralized debt obligations ("CDOs") which consist of the debt instruments of various banks, diversified by the number of participants in the security as well as geographically. The secondary market for these securities has become inactive, and therefore these securities are classified as Level 3 securities. The fair value analysis does not reflect or represent the actual terms or prices at which any party could purchase the securities. There is currently a limited secondary market for the securities and there can be no assurance that any secondary market for the securities will expand. |
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An independent, third party pricing service is used to estimate the current fair market value of each CDO held in the investment securities portfolio. The calculations used to determine fair value are based on the attributes of the trust preferred securities, the financial condition of the issuers of the trust preferred securities, and market based assumptions. The INTEX CDO Deal Model Library was utilized to obtain information regarding the attributes of each security and its specific collateral as of June 30, 2014 and December 31, 2013. Financial information on the issuers was also obtained from Bloomberg, the FDIC, the Office of Thrift Supervision and SNL Financial. Both published and unpublished industry sources were utilized in estimating fair value. Such information includes loan prepayment speed assumptions, discount rates, default rates, and loss severity percentages. Due to the current state of the global capital and financial markets, the fair market valuation is subject to greater uncertainty than would otherwise exist. |
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The fair market valuation for each CDO was determined based on discounted cash flow analyses. The cash flows are primarily dependent on the estimated speeds at which the trust preferred securities are expected to prepay, the estimated rates at which the trust preferred securities are expected to defer payments, the estimated rates at which the trust preferred securities are expected to default, and the severity of the losses on securities that do default. |
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Increases (decreases) in actual or expected issuer defaults tend to decrease (increase) the fair value of the Company's senior and mezzanine tranches of CDOs. The values of the Company's mezzanine tranches of CDOs are also affected by expected future interest rates. However, due to the structure of each security, timing of cash flows, and secondary effects on the financial performance of the underlying issuers, the effects of changes in future interest rates on the fair value of the Company's holdings are not quantifiably estimable. |
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Also included in Level 3 investment securities classified as available for sale is a single-issuer corporate bond since the bond is not actively traded. Impairment would depend on the repayment ability of the underlying issuer, which is assessed through a detailed quarterly review of the issuer's financial statements. The issuer is a "well capitalized" financial institution as defined by federal banking regulations and has demonstrated the ability to raise additional capital, when necessary, through the public capital markets. The fair value of this corporate bond is estimated by obtaining a price of a comparable floating rate debt instrument through Bloomberg. |
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Loans Held For Sale (Carried at Lower of Cost or Fair Value) |
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The fair values of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. The Company did not write down any loans held for sale during the six months ended June 30, 2014 and the year ended December 31, 2013. |
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Loans Receivable (Carried at Cost) |
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The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Due to the significant judgment involved in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy. |
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Impaired Loans (Carried at Lower of Cost or Fair Value) |
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Impaired loans are those that the Company has measured impairment based on the fair value of the loan's collateral. Fair value is generally determined based upon independent third party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less any valuation allowance. The valuation allowance amount is calculated as the difference between the recorded investment in a loan and the present value of expected future cash flows or it is calculated based on discounted collateral values if the loans are collateral dependent. |
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Other Real Estate Owned (Carried at Lower of Cost or Fair Value) |
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These assets are carried at the lower of cost or fair value. At June 30, 2014 and December 31, 2013 these assets are carried at current fair value. |
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SBA Servicing Asset (Carried at Fair Value) |
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The SBA servicing asset is initially recorded when loans are sold and the servicing rights are retained and recorded on the balance sheet. Updated fair values are obtained on a quarterly basis and adjustments are presented as loan advisory and servicing fees on the consolidated statement of income. The valuation begins with the projection of future cash flows for each asset based on their unique characteristics, our market-based assumptions for prepayment speeds and estimated losses and recoveries. The present value of the future cash flows are then calculated utilizing our market-based discount ratio assumptions. In all cases, we model expected payments for every loan for each quarterly period in order to create the most detailed cash flow stream possible. |
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The Company uses assumptions and estimates in determining the impairment of the SBA servicing asset. These assumptions include prepayment speeds and discount rates commensurate with the risks involved and comparable to assumptions used by participants to value and bid serving rights available for sale in the market. At June 30, 2014 and December 31, 2013, the sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% adverse changes in key assumptions are included in the accompanying table. |
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(dollars in thousands) | June 30, | | December 31, | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | |
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SBA Servicing Asset | | | | | | | | | | | | | | | | |
Fair Value of SBA Servicing Asset | | $ | 4,067 | | $ | 3,477 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Composition of SBA Loans Serviced for Others | | | | | | | | | | | | | | | | | | | | |
Fixed-rate SBA loans | | | 0 | % | | | 0 | % | | | | | | | | | | | | |
Adjustable-rate SBA loans | | | 100 | % | | | 100 | % | | | | | | | | | | | | |
Total | | | 100 | % | | | 100 | % | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted Average Remaining Term | 21.1 years | 21.4 years | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Prepayment Speed | | | 6.99 | % | | | 6.72 | % | | | | | | | | | | | | |
Effect on fair value of a 10% increase | | $ | (111 | ) | | $ | (83 | ) | | | | | | | | | | | | |
Effect on fair value of a 20% increase | | | (218 | ) | | | (163 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted Average Discount Rate | | | 11.59 | % | | | 13.59 | % | | | | | | | | | | | | |
Effect on fair value of a 10% increase | | $ | (203 | ) | | $ | (162 | ) | | | | | | | | | | | | |
Effect on fair value of a 20% increase | | | (391 | ) | | | (316 | ) | | | | | | | | | | | | |
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The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in value may not be linear. Also in this table, the effect of an adverse variation in a particular assumption on the value of the SBA servicing rights is calculated without changing any other assumption. While in reality, changes in one factor may magnify or counteract the effect of the change. |
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Restricted Stock (Carried at Cost) |
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The carrying amount of restricted stock approximates fair value, and considers the limited marketability of such securities. |
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Accrued Interest Receivable and Payable (Carried at Cost) |
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The carrying amount of accrued interest receivable and accrued interest payable approximates fair value. |
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Deposit Liabilities (Carried at Cost) |
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The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. |
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Subordinated Debt (Carried at Cost) |
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Fair values of subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Due to the significant judgment involved in developing the spreads used to value the subordinated debt, it is classified within level 3 of the fair value hierarchy. |
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Off-Balance Sheet Financial Instruments (Disclosed at notional amounts) |
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Fair values for the Company's off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties' credit standing. |
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The estimated fair values of the Company's financial instruments were as follows at June 30, 2014 and December 31, 2013: |
| | Fair Value Measurements at June 30, 2014 | |
| | Carrying | | | Fair | | | Quoted Prices | | | Significant | | | Significant Unobservable Inputs | |
(dollars in thousands) | Amount | Value | in Active | Other | (Level 3) |
| | | Markets for Identical Assets | Observable | |
| | | (Level 1) | Inputs | |
| | | | (Level 2) | |
Balance Sheet Data | | | | | | | | | | | | | | | |
Financial assets: | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 83,120 | | | $ | 83,120 | | | $ | 83,120 | | | $ | - | | | $ | - | |
Investment securities available for sale | | | 219,634 | | | | 219,634 | | | | - | | | | 213,651 | | | | 5,983 | |
Investment securities held to maturity | | | 21 | | | | 21 | | | | - | | | | 21 | | | | - | |
Restricted stock | | | 1,725 | | | | 1,725 | | | | - | | | | 1,725 | | | | - | |
Loans held for sale | | | 491 | | | | 491 | | | | - | | | | - | | | | 491 | |
Loans receivable, net | | | 706,806 | | | | 699,188 | | | | - | | | | - | | | | 699,188 | |
SBA servicing assets | | | 4,067 | | | | 4,067 | | | | - | | | | - | | | | 4,067 | |
Accrued interest receivable | | | 3,104 | | | | 3,104 | | | | - | | | | 3,104 | | | | - | |
| | | | | | | | | | | | | | | | | | | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | |
Demand, savings and money market | | $ | 843,875 | | | $ | 843,875 | | | $ | - | | | $ | 843,875 | | | $ | - | |
Time | | | 80,809 | | | | 81,235 | | | | - | | | | 81,235 | | | | - | |
Subordinated debt | | | 22,476 | | | | 18,224 | | | | - | | | | - | | | | 18,224 | |
Accrued interest payable | | | 292 | | | | 292 | | | | - | | | | 292 | | | | - | |
| | | | | | | | | | | | | | | | | | | | |
Off-Balance Sheet Data | | | | | | | | | | | | | | | | | | | | |
Commitments to extend credit | | | - | | | | - | | | | | | | | | | | | | |
Standby letters-of-credit | | | - | | | | - | | | | | | | | | | | | | |
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| | Fair Value Measurements at December 31, 2013 | |
| | Carrying | | | Fair | | | Quoted Prices | | | Significant | | | Significant Unobservable Inputs | |
(dollars in thousands) | Amount | Value | in Active | Other | (Level 3) |
| | | Markets for Identical Assets | Observable | |
| | | (Level 1) | Inputs | |
| | | | (Level 2) | |
Balance Sheet Data | | | | | | | | | | | | | | | |
Financial assets: | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 35,880 | | | $ | 35,880 | | | $ | 35,880 | | | $ | - | | | $ | - | |
Investment securities available for sale | | | 204,891 | | | | 204,891 | | | | - | | | | 199,035 | | | | 5,856 | |
Investment securities held to maturity | | | 21 | | | | 21 | | | | - | | | | 21 | | | | - | |
Restricted stock | | | 1,570 | | | | 1,570 | | | | - | | | | 1,570 | | | | - | |
Loans held for sale | | | 4,931 | | | | 5,225 | | | | - | | | | - | | | | 5,225 | |
Loans receivable, net | | | 667,048 | | | | 660,237 | | | | - | | | | - | | | | 660,237 | |
SBA servicing assets | | | 3,477 | | | | 3,477 | | | | - | | | | - | | | | 3,477 | |
Accrued interest receivable | | | 3,049 | | | | 3,049 | | | | - | | | | 3,049 | | | | - | |
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Financial liabilities: | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | |
Demand, savings and money market | | $ | 790,698 | | | $ | 790,698 | | | $ | - | | | $ | 790,698 | | | $ | - | |
Time | | | 78,836 | | | | 79,323 | | | | - | | | | 79,323 | | | | - | |
Subordinated debt | | | 22,476 | | | | 17,835 | | | | - | | | | - | | | | 17,835 | |
Accrued interest payable | | | 237 | | | | 237 | | | | - | | | | 237 | | | | - | |
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Off-Balance Sheet Data | | | | | | | | | | | | | | | | | | | | |
Commitments to extend credit | | | - | | | | - | | | | | | | | | | | | | |
Standby letters-of-credit | | | - | | | | - | | | | | | | | | | | | | |