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1039 - Disclosure - Fair Value Measurement (Tables)
(http://www.bankwithheritage.com/taxonomy/role/NotesToFinancialStatementsFairValueDisclosuresTextBlockTables)
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Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and Liabilities Measured on a Recurring Basis

The assets and liabilities measured at fair value on a recurring basis are summarized below:

 

December 31, 2016

   Total carrying
value in the
consolidated
     Quoted Prices
In Active
Markets for
     Significant
Other
Observable
    

Significant

Unobservable

 

Description

   balance sheet at
December 31, 2016
     Identical Assets
(Level 1)
     Inputs
(Level 2)
     Inputs
(Level 3)
 

Assets

           

Available for sale securities

   $ 209,480        2,001        205,662        1,817  

 

December 31, 2015

   Total carrying
value in the
consolidated
     Quoted Prices
In Active
Markets for
     Significant
Other
Observable
    

Significant

Unobservable

 

Description

   balance sheet at
December 31, 2015
     Identical Assets
(Level 1)
     Inputs
(Level 2)
     Inputs
(Level 3)
 

Assets

           

Available for sale securities

   $ 237,177        2,000        233,312        1,865  
 
 
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The assets and liabilities measured at fair value on a non-recurring basis are summarized below:

 

December 31, 2016

   Total carrying
value in the
     Quoted Prices
In Active
     Significant
Other
     Significant  

Description

   consolidated
balance sheet at
12/31/2016
     Markets for
Identical Assets
(Level 1)
     Observable
Inputs
(Level 2)
     Unobservable
Inputs
(Level 3)
 

Assets

           

Foreclosed assets

   $ 2,397        —          —          2,397  

Impaired loans, net of allowance of $1,148

   $ 6,123        —          —          6,123  

 

December 31, 2015

   Total carrying
value in the
     Quoted Prices
In Active
     Significant
Other
     Significant  

Description

   consolidated
balance sheet at
12/31/2015
     Markets for
Identical Assets
(Level 1)
     Observable
Inputs
(Level 2)
     Unobservable
Inputs
(Level 3)
 

Assets

           

Foreclosed assets

   $ 1,736        —          —          1,736  

Impaired loans, net of allowance of $630

   $ 3,319        —          —          3,319  
 
 
Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Reoccurring and Non-reoccurring Basis

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a reoccuring and non-reoccuring basis at December 31, 2016 and 2015:

 

Level 3 Significant Unobservable Input Assumptions

 
     Fair
Value
    

Valuation

Technique

  

Unobservable

Input

   Quantitative Range
of Unobservable
Inputs
 

December 31, 2016

           

Assets measured on a non-recurring basis

     

Foreclosed assets

     2,397      Discount to appraised value of collateral    Appraisal comparability adjustments      30% to 55%  

Impaired loans

     7,271      Discount to appraised value of collateral    Appraisal comparability adjustments      10% to 25%  

Asset measured on a recurring basis

     

Trust preferred securities

     1,817     

Discounted cash flow

Spread to Libor swap curve

  

Compare to quotes for sale

when available

    

One month libor

4% to 6%

 

 

December 31, 2015

           

Assets measured on a non-recurring basis

     

Foreclosed assets

     1,736      Discount to appraised value of collateral    Appraisal comparability adjustments      10% to 15%  

Impaired loans

     3,949      Discount to appraised value of collateral    Appraisal comparability adjustments      10% to 15%  

Asset measured on a recurring basis

     

Trust preferred securities

     1,865     

Discounted cash flow

Spread to Libor swap curve

  

Compare to quotes for sale

when available

    

One month libor

4% to 6%

 

 

 
 
Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items

The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2016 and 2015, (including the change in fair value) for assets and liabilities classified by the Company within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.

 

     Year ended
December 31,
 
     2016      2015  
     Other      Other  
     Assets      Assets  

Fair value, December 31,

   $ 1,865      $ 1,489  

Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31,

     (65      359  

Other than temporary impairment charge

     —          —    

Recovery of prior impairment charge

     17        17  

Purchases, issuances and settlements, net

     —          —    

Transfers in and/or out of Level 3

     —          —    
  

 

 

    

 

 

 

Fair value, December 31,

   $ 1,817      $ 1,865  
  

 

 

    

 

 

 
 
 
Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows at December 31, 2016:

 

                          Using         
                   Quoted Prices      Significant         
                   In Active Markets      Other      Significant  
            Estimated      for Identical      Observable      Unobservable  
     Carrying      Fair      Assets      Inputs      Inputs  
     Amount      Value      Level 1      Level 2      Level 3  

Financial Assets:

  

Cash and due from banks

   $ 21,779        21,779        21,779        —          —    

Interest-bearing deposits in banks

     3,970        3,970        3,970        —          —    

Securities available for sale

     209,480        209,480        2,001        205,662        1,817  

Federal Home Loan Bank stock

     4,428        4,428        —          4,428        —    

Loans held for sale

     1,094        1,094        —          1,094        —    

Loans receivable

     604,286        593,257        —          —          593,257  

Accrued interest receivable

     3,799        3,799        —          3,799        —    

Financial Liabilities:

              

Deposits

     732,882        732,942        —          732,942        —    

Advances from borrowers for taxes and insurance

     766        766        —          766        —    

Advances from Federal Home Loan Bank

     11,000        10,979        —          10,979        —    

Repurchase agreements

     47,655        47,655        —          47,655        —    

Subordinated debentures

     10,310        10,099        —          —          10,099  

The estimated fair values of financial instruments were as follows at December 31, 2015:

 

                          Using         
                   Quoted Prices      Significant         
                   In Active Markets      Other      Significant  
            Estimated      for Identical      Observable      Unobservable  
     Carrying      Fair      Assets      Inputs      Inputs  
     Amount      Value      Level 1      Level 2      Level 3  

Financial Assets:

  

Cash and due from banks

   $ 46,926        46,926        46,926        —          —    

Interest-bearing deposits in banks

     7,772        7,772        7,772        —          —    

Securities available for sale

     237,177        237,177        2,000        233,312        1,865  

Federal Home Loan Bank stock

     4,428        4,428        —          4,428        —    

Loans held for sale

     2,792        2,792        —          2,792        —    

Loans receivable

     556,349        552,981        —          —          552,981  

Accounts receivable

     4,139        4,139        —          4,139        —    

Financial Liabilities:

              

Deposits

     739,406        724,877        —          724,877        —    

Advances from borrowers for taxes and insurance

     614        614        —          614        —    

Advances from Federal Home Loan Bank

     15,000        14,985        —          14,985        —    

Repurchase agreements

     45,770        45,931        —          45,931        —    

Subordinated debentures

     10,310        10,099        —          —          10,099  
 
 
Foreclosed Assets that were Re-measured and Reported at Fair Value

The following table presents foreclosed assets that were re-measured and reported at fair value:

 

     Years Ended December 31,  
     2016      2015      2014  

Beginning balance

   $ 1,736        1,927        1,674  

Foreclosed assets measured at initial recognition:

        

Carrying value of foreclosed assets prior to acquisition

     2,935        986        1,816  

Proceeds from sale of foreclosed assets

     (1,623      (344      (1,118

Charge-offs recognized in the allowance for loan loss

     (672      (117      (237

Gains (losses) included in non-interest expense

     21        (716      (208
  

 

 

    

 

 

    

 

 

 

Fair value

   $ 2,397        1,736        1,927