Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair value measurements, recurring basis

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



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FNMA Bonds	$	—	$	1,017,681	$	—
SBA Bonds	—		102,198,130		—
Tax Exempt Municipal Bonds	—		82,956,495		—
Taxable Municipal Bonds			1,040,660
Mortgage-Backed Securities	—		193,426,007		—
Equity Securities	—		331,334		—
Total	$	—	$	380,970,307	$	—

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

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



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 September 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 September 30, 2016
Mortgage Loans Held For Sale	$	—	$	4,143,431	$	—	$	4,143,431
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		9,604,060		9,604,060
Foreclosed Assets	—		—		2,327,345		2,327,345
Total	$	—	$	4,143,431	$	11,931,405	$	16,074,836

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $}^147,705



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 September 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	$	9,604,060	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 16%

Foreclosed Assets	2,327,345		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 September 30, 2016 and December 31, 2015 presented in accordance with the applicable accounting guidance.



	September 30, 2016
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	11,352	$	11,352	$	11,352	$	—	$	—
Certificates of Deposits with Other Banks	3,445		3,445		—		3,445		—
Investment and Mortgage-Backed Securities	408,454		409,060		—		409,060		—
Loans Receivable, Net	351,819		353,269		—		—		353,269
FHLB Stock	2,675		2,675		2,675		—		—

Financial Liabilities:
Deposits:
Checking, Savings, and Money Market Accounts	$	429,109	$	429,109	$	429,109	$	—	$	—
Certificate Accounts	221,189		220,988		—		220,988		—
Advances from FHLB	46,000		46,069		—		46,069		—
Other Borrowed Money	12,598		12,598		12,598		—		—
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		—