Carrying Amounts and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at June 30, 2017 and December 31, 2016:



	June 30, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
FHLB Securities	$	—	$	—	$	—	$	—	$	998,000	$	—
SBA Bonds	—		127,789,420		—		—		101,906,059		—
Tax Exempt Municipal Bonds	—		84,047,997		—		—		71,535,149		—
Taxable Municipal Bonds	—		2,027,950		—		—		1,991,130		—
Mortgage-Backed Securities	—		187,272,697		—		—		185,261,091		—
State Tax Credit	—		56,800		—		—		—		—
Equity Securities	—		155,000		—		—		368,000		—
Total	$	—	$	401,349,864	$	—	$	—	$	362,059,429	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at June 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall.



	June 30, 2017
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	3,678,021	$	—	$	3,678,021
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		10,090,742		10,090,742
Foreclosed Assets	—		—		1,990,168		1,990,168
Total	$	—	$	3,678,021	$	12,080,910	$	15,758,931



	December 31, 2016
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	4,243,907	$	—	$	4,243,907
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		8,313,745		8,313,745
Foreclosed Assets	—		—		2,721,214		2,721,214
Total	$	—	$	4,243,907	$	11,034,959	$	15,278,866

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $19,566 AND}^$14,289

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, 2017, 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	$	10,090,742	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 72%

Foreclosed Assets	$	1,990,168	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 provide a summary of the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2017 and December 31, 2016 presented in accordance with the applicable accounting guidance.



	June 30, 2017
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	10,991	$	10,991	$	10,991	$	—	$	—
Certificates of Deposits with Other Banks	1,425		1,425		—		1,425		—
Investment and Mortgage-Backed Securities	428,546		428,662		—		428,662		—
Loans Receivable, Net	359,963		358,546		—		—		358,546
FHLB Stock	2,667		2,667		2,667		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	464,692	$	464,692	$	464,692	$	—	$	—
Certificate Accounts	226,732		225,210		—		225,210		—
Advances from FHLB	47,727		47,526		—		47,526		—
Other Borrowed Money	12,853		12,853		12,853		—		—
Note Payable	11,000		11,000		—		11,000		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



	December 31, 2016
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	9,375	$	9,375	$	9,375	$	—	$	—
Certificates of Deposits with Other Banks	2,445		2,445		—		2,445		—
Investment and Mortgage-Backed Securities	387,643		387,430		—		387,430		—
Loans Receivable, Net	359,723		357,457		—		—		357,457
FHLB Stock	2,777		2,777		2,777		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	438,559	$	438,559	$	438,559	$	—	$	—
Certificate Accounts	215,545		214,149		—		214,149		—
Advances from FHLB	48,395		48,153		—		48,153		—
Other Borrowed Money	9,338		9,338		9,338		—		—
Note Payable	13,000		13,000		—		13,000		—
Senior Convertible Debentures	5,155		5,155		—		5,155		—
Junior Subordinated Debentures	6,084		6,084		—		6,084		—