Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair value measurements, recurring basis

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



	September 30, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
FHLB Securities	$	—	$	—	$	—	$	—	$	998,000	$	—
FHLMC Bond	—		965,646		—		—		$	—	—
SBA Bonds	—		124,803,549		—		—		101,906,059		—
Tax Exempt Municipal Bonds	—		80,815,027		—		—		71,535,149		—
Taxable Municipal Bonds	—		2,012,590		—		—		1,991,130		—
Mortgage-Backed Securities	—		179,834,621		—		—		185,261,091		—
State Tax Credit	—		56,800		—		—		—		—
Equity Securities	—		155,000		—		—		368,000		—
Total	$	—	$	388,643,233	$	—	$	—	$	362,059,429	$	—

Fair value measurements, nonrecurring basis

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



	September 30, 2017
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	1,270,410	$	—	$	1,270,410
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		9,890,138		9,890,138
Foreclosed Assets	—		—		1,907,637		1,907,637
Total	$	—	$	1,270,410	$	11,797,775	$	13,068,185



	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}^$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 September 30, 2017, the significant unobservable inputs used in the fair value measurements were as follows:



			Valuation	Significant
Level 3 Assets	Fair Value		Technique	Unobservable Inputs	Range
Collateral Dependent Impaired Loans	$	9,890,138	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 72%
Foreclosed Assets	$	1,907,637	Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	13% - 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 September 30, 2017 and December 31, 2016 presented in accordance with the applicable accounting guidance.



	September 30, 2017
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	15,159	$	15,159	$	15,159	$	—	$	—
Certificates of Deposits with Other Banks	1,350		1,350		—		1,350		—
Investment and Mortgage-Backed Securities	413,981		414,212		—		414,212		—
Loans Receivable, Net	375,711		374,295		—		—		374,295
FHLB Stock	2,474		2,474		2,474		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	463,741	$	463,741	$	463,741	$	—	$	—
Certificate Accounts	237,873		236,225		—		236,225		—
Advances from FHLB	41,000		40,775		—		40,775		—
Other Borrowed Money	12,356		12,356		12,356		—		—
Note Payable	9,700		9,700		—		9,700		—
Senior Convertible Debentures	6,064		6,064		—		6,064		—
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		—