Carrying Amounts and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at June 30, 2016:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FNMA Bonds	$	—	$	1,023,914	$	—
SBA Bonds	—		100,885,681		—
Tax Exempt Municipal Bonds	—		85,957,882		—
Taxable Municipal Bonds			1,044,260
Mortgage-Backed Securities	—		198,731,529		—
Equity Securities	—		310,346		—
Total	$	—	$	387,953,612	$	—

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

Assets measured at fair value on a recurring basis were as follows at December 31, 2015:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	1,932,088	$	—
FFCB Securities	—		1,987,936		—
FNMA Bonds	—		1,004,331		—
SBA Bonds	—		111,416,782		—
Tax Exempt Municipal Bonds	—		76,065,619		—
Mortgage-Backed Securities	—		182,797,212		—
Equity Securities	—		309,902		—
Total	$	—	$	375,513,870	$	—

Fair value measurements, nonrecurring basis

The table below presents assets measured at fair value on a nonrecurring basis at June 30, 2016 and December 31, 2015, aggregated by the level in the fair value hierarchy within which those measurements fall.



Assets:	Level 1		Level 2		Level 3		Balance at June 30, 2016
Mortgage Loans Held For Sale	$	—	$	1,682,094	$	—	$	1,682,094
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		9,570,790		9,570,790
Foreclosed Assets	—		—		2,377,793		2,377,793
Total	$	—	$	1,682,094	$	11,948,583	$	13,630,677

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $}^34,200



Assets:	Level 1		Level 2		Level 3		Balance at December 31, 2015
Mortgage Loans Held For Sale	$	—	$	2,462,559	$	—	$	2,462,559
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		12,565,728		12,565,728
Foreclosed Assets	—		—		4,361,411		4,361,411
Total	$	—	$	2,462,559	$	16,927,139	$	19,389,698

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF}^$81,600

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 at June 30, 2016, the significant unobservable inputs used in the fair value measurements were as follows:



			Valuation	Significant
	Fair Value		Technique	Unobservable Inputs	Range
Collateral Dependent Impaired Loans	$	9,570,790	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 16%
Foreclosed Assets	2,377,793		Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	16% - 100%

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 at June 30, 2016 and December 31, 2015 presented in accordance with the applicable accounting guidance.



	June 30, 2016
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	8,883	$	8,883	$	8,883	$	—	$	—
Certificates of Deposits with Other Banks	3,445		3,445		—		3,445		—
Investment and Mortgage-Backed Securities	416,462		416,916		—		416,916		—
Loans Receivable, Net	335,036		336,358		—		—		336,358
FHLB Stock	2,048		2,048		2,048		—		—

Financial Liabilities:
Deposits:
Checking, Savings, and Money Market Accounts	$	426,227	$	426,227	$	426,227	$	—	$	—
Certificate Accounts	231,375		231,673		—		231,673		—
Advances from FHLB	29,110		29,494		—		29,494		—
Other Borrowed Money	9,385		9,385		9,385		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



	December 31, 2015
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	8,382	$	8,382	$	8,382	$	—	$	—
Certificates of Deposits with Other Banks	3,445		3,445		—		3,445		—
Investment and Mortgage-Backed Securities	405,387		405,196		—		405,196		—
Loans Receivable, Net	330,573		327,460		—		—		327,460
FHLB Stock	2,215		2,215		2,215		—		—

Financial Liabilities:
Deposits:
Checking, Savings, and Money Market Accounts	$	415,975	$	415,975	$	415,975	$	—	$	—
Certificate Accounts	236,122		235,476		—		235,476		—
Advances from FHLB	34,640		35,676		—		35,676		—
Other Borrowed Money	6,412		6,412		6,412		—		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—