Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis are as follows as of September 30, 2013:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	15,046,290	$	—
FFCB Securities	—		5,413,658		—
FNMA And FHLMC Bonds	—		2,974,860		—
SBA Bonds	—		101,025,228		—
Tax Exempt Municipal Bonds	—		56,913,461		—
Mortgage-Backed Securities	—		245,220,951		—
Equity Securities	—		252,350		—
Total	$	—	$	426,846,798	$	—

11. Carrying Amounts and Fair Value of Financial Instruments, Continued

Assets measured at fair value on a recurring basis are as follows as of December 31, 2012:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	6,164,670	$	—
SBA Bonds	—		96,462,270		—
Tax Exempt Municipal Bonds	—		37,482,148		—
Mortgage-Backed Securities	—		214,731,903		—
Equity Securities	—		75,225		—
Total	$	—	$	354,916,216	$	—

Fair value measurements, nonrecurring basis

The table below presents assets measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those measurements fall. There were no liabilities measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012.



Assets:	Level 1		Level 2		Level 3		Balance At September 30, 2013
Mortgage Loans Held For Sale	$	—	$	1,385,925	$	—	$	1,385,925
Collateral Dependent Impaired Loans	—		—		33,262,023		33,262,023
Foreclosed Assets	—		—		3,492,365		3,492,365
Total	$	—	$	1,385,925	$	36,754,388	$	38,140,313

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $439,000}



Assets:	Level 1		Level 2		Level 3		Balance At December 31, 2012
Mortgage Loans Held For Sale	$	—	$	4,770,760	$	—	$	4,770,760
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		39,506,538		39,506,538
Foreclosed Assets	—		—		6,754,425		6,754,425
Total	$	—	$	4,770,760	$	46,260,963	$	51,031,723

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF}^$440,000

Significant unobservable inputs used in the fair value measurements

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows:



	Fair Value			Significant
	September 30,		Valuation	Unobservable
	2013		Technique	Inputs	Range
Collateral Dependent Impaired Loans	$	33,262,023	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 70%
Foreclosed Assets	3,492,365		Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	0% - 83%

Summary of the carrying value and estimated fair value of financial instruments

The following tables are a summary of the carrying value and estimated fair value of the Company’s financial instruments as of September 30, 2013 and December 31, 2012 presented in accordance with the applicable accounting guidance.



	September 30, 2013
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash And Cash Equivalents	$	10,380	$	10,380	$	10,380	$	—	$	—
Certificates Of Deposits With Other Banks	1,480		1,480		—		1,480		—
Investment And Mortgage-Backed Securities	426,847		426,847		—		426,847		—
Loans Receivable, Net	364,923		365,955		—		—		365,955
FHLB Stock	4,675		4,675		4,675		—		—

Financial Liabilities:
Deposits:
Checking, Savings, And Money Market Accounts	$	406,479	$	406,479	$	406,479	$	—	$	—
Certificate Accounts	262,874		264,241		—		264,241		—
Advances From FHLB	78,144		83,721		—		83,721		—
Other Borrowed Money	9,873		9,873		9,873		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



	December 31, 2012
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash And Cash Equivalents	$	7,904	$	7,904	$	7,904	$	—	$	—
Certificates Of Deposits With Other Banks	1,729		1,729		—		1,729		—
Investment And Mortgage-Backed Securities	430,988		434,588		—		434,588		—
Loans Receivable, Net	397,706		397,360		—		—		397,360
FHLB Stock	6,179		6,179		6,179		—		—

Financial Liabilities:
Deposits:
Checking, Savings, And Money Market Accounts	$	383,534	$	383,534	$	383,534	$	—	$	—
Certificate Accounts	292,804		295,734		—		295,734		—
Advances From FHLB	105,257		113,471		—		113,471		—
Other Borrowed Money	9,317		9,317		9,317		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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