Fair Value Measurement |
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Fair Value Measurement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | 3. Fair Value Measurement The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair market value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table sets forth by Level, within the fair value hierarchy, the fair value of the Company’s assets as of December 31, 2022:
The following table sets forth by Level, within the fair value hierarchy, the fair value of the Company’s assets as of December 31, 2021:
Following is a description of the methodologies used for assets measured at fair value: Stocks and ETFs(level 1 and 2): Valued at the closing price reported in the active market in which the individual securities are traded. Mutual funds(level 1 and 2): Valued at the daily closing price reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset values and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. Debt securities: Valued at the closing price reported in the active market in which the individual securities are traded. Real estate owned: The Company estimates fair values of real estate owned using market information such as recent sales contracts, appraisals, recent sales, assessed values or discounted cash value models. See Note 5 for the roll forward of real estate owned – level 3 assets. Impact of Fair Value of AFS Securities on OCI The carrying value of the Company’s financial instruments approximates fair value genrally due to the relative short-term nature of such instruments. Our other financial assets and financial liabilities have fair value that approximate their carrying value. The following table presents the impact of the Company's Available-For-Sale (AFS) securities - debt securities on its Other Comprehensive Income (OCI) for the years ended December 31, 2022 and 2021:
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