HVBC 2016 Annual Report

HV Bancorp, Inc. and Subsidiary Notes to the Consolidated Financial Statements Years Ended June 30, 2017 and 2016 82 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 338 $ 338 Real estate owned — — 115 115 $ — $ — $ 453 $ 453 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Balances as of June 30, 2017 Qualities Information about Level 3 Fair Value Measurements Range Valuation Unobservable (Weighted (Dollars in thousands) Fair Value Techniques Input Average) Impaired loans $ 158 Appraisal of collateral (1) Liquidation expenses/ borrower negotiations 5.0% - 5.0% (5.0%) Balances as of June 30, 2016 Qualities Information about Level 3 Fair Value Measurements Range Valuation Unobservable (Weighted (Dollars in thousands) Fair Value Techniques Input Average) Impaired loans $ 338 Appraisal of collateral (1) Liquidation expenses/ borrower negotiations 5.0%- 16.3% (11.2%) Other real estate owned $ 115 Appraisal of collateral (1) Liquidation expenses 7.0% to 8.0% (7.5%) (1) Appraisals may be discounted for qualitative factors such as age of appraisal, interior condition of the property, and liquidation expenses. Fair value may also be based on negotiated settlements with the borrowers.