Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis are as follows as of September 30, 2014:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	11,157,355	$	—
FFCB Securities	—		5,572,974		—
FNMA Bonds	—		995,498		—
SBA Bonds	—		94,929,289		—
Tax Exempt Municipal Bonds	—		65,812,561		—
Mortgage-Backed Securities	—		250,058,896		—
Equity Securities	—		293,338		—
Total	$	—	$	428,819,911	$	—

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, 2013:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	12,670,450	$	—
FFCB Securities	—		5,366,180		—
FNMA Bonds	—		1,974,930		—
SBA Bonds	—		100,823,985		—
Tax Exempt Municipal Bonds	—		61,315,122		—
Mortgage-Backed Securities	—		248,596,535		—
Equity Securities	—		256,250		—
Total	$	—	$	431,003,452	$	—

Fair value measurements, nonrecurring basis

The table below presents assets measured at fair value on a nonrecurring basis as of September 30, 2014 and December 31, 2013, 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, 2014 and December 31, 2013.



Assets:	Level 1		Level 2		Level 3		Balance At September 30, 2014
Mortgage Loans Held For Sale	$	—	$	2,057,504	$	—	$	2,057,504
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		20,521,079		20,521,079
Foreclosed Assets	—		—		3,859,424		3,859,424
Total	$	—	$	2,057,504	$	24,380,503	$	26,438,007

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $307,000}



Assets:	Level 1		Level 2		Level 3		Balance At December 31, 2013
Mortgage Loans Held For Sale	$	—	$	1,234,158	$	—	$	1,234,158
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		30,252,256		30,252,256
Foreclosed Assets	—		—		3,947,226		3,947,226
Total	$	—	$	1,234,158	$	34,199,482	$	35,433,640

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF}^$1,103,000

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, 2014, the significant unobservable inputs used in the fair value measurements were as follows:



	Fair Value			Significant
	September 30,		Valuation	Unobservable
	2014		Technique	Inputs	Range
Collateral Dependent Impaired Loans	$	20,521,079	Appraised Value	Discount Rates/ Discounts to Appraised Values	6% - 70%
Foreclosed Assets	3,859,424		Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	9% - 76%

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, 2014 and December 31, 2013 presented in accordance with the applicable accounting guidance.



	September 30, 2014
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash And Cash Equivalents	$	8,211	$	8,211	$	8,211	$	—	$	—
Certificates Of Deposits With Other Banks	2,095		2,095		—		2,095		—
Investment And Mortgage-Backed Securities	428,820		428,820		—		428,820		—
Loans Receivable, Net	344,115		343,657		—		—		343,657
FHLB Stock	3,852		3,852		3,852		—		—

Financial Liabilities:
Deposits:
Checking, Savings, And Money Market Accounts	$	399,349	$	399,349	$	399,349	$	—	$	—
Certificate Accounts	247,115		247,124		—		247,124		—
Advances From FHLB	68,320		69,757		—		69,757		—
Other Borrowed Money	10,781		10,781		10,781		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



	December 31, 2013
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash And Cash Equivalents	$	7,630	$	7,630	$	7,630	$	—	$	—
Certificates Of Deposits With Other Banks	2,100		2,100		—		2,100		—
Investment And Mortgage-Backed Securities	431,003		431,003		—		431,003		—
Loans Receivable, Net	358,917		356,623		—		—		356,623
FHLB Stock	5,017		5,017		5,017		—		—

Financial Liabilities:
Deposits:
Checking, Savings, And Money Market Accounts	$	401,813	$	401,813	$	401,813	$	—	$	—
Certificate Accounts	256,884		257,883		—		257,883		—
Advances From FHLB	87,740		92,608		—		92,608		—
Other Borrowed Money	8,003		8,003		8,003		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—