Carrying Amounts and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at March 31, 2019 and December 31, 2018:



	March 31, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Student Loan Pools	$	—	$	22,911,658	$	—	$	—	$	12,885,501	$	—
SBA Bonds	—		124,865,995		—		—		125,446,531		—
Tax Exempt Municipal Bonds	—		59,788,776		—		—		61,330,369		—
Taxable Municipal Bonds	—		2,008,585		—		—		1,977,885		—
Mortgage-Backed Securities	—		192,621,678		—		—		184,460,551		—
Equity Securities	—		155,000		—		—		155,000		—
Total	$	—	$	402,351,692	$	—	$	—	$	386,255,837	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall.



	March 31, 2019
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	2,436,445	$	—	$	2,436,445
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		4,849,902		4,849,902
Foreclosed Assets	—		—		809,341		809,341
Total	$	—	$	2,436,445	$	5,659,243	$	8,095,688



	December 31, 2018
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	1,781,985	$	—	$	1,781,985
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		8,613,570		8,613,570
Foreclosed Assets	—		—		722,442		722,442
Total	$	—	$	1,781,985	$	9,336,012	$	11,117,997

^{(1) COLLATERAL IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $637,000 AND $739,000 AT MARCH 31, 2019 AND DECEMBER 31, 2018, RESPECTIVELY.}

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 March 31, 2019, 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	$	4,849,902	Appraised Value	Discount Rates/ Discounts to Appraised Values	3% - 97%
Foreclosed Assets	$	809,341	Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	14% - 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 March 31, 2019 and December 31, 2018 presented in accordance with the applicable accounting guidance.



March 31, 2019	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	19,120	$	19,120	$	19,120	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	425,790		425,871		—		425,871		—
Loans Receivable, Net	429,314		424,599		—		—		424,599
FHLB Stock	1,926		1,926		1,926		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	535,123	$	535,123	$	535,123	$	—	$	—
Certificate Accounts	253,735		252,129		—		252,129		—
Advances from FHLB	26,000		25,854		—		25,854		—
Other Borrowed Money	14,044		14,044		14,044		—		—
Note Payable	1,513		1,513		—		1,513		—
Senior Convertible Debentures	6,044		6,044		—		6,044		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



December 31, 2018	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	12,706	$	12,706	$	12,706	$	—	$	—
Certificates of Deposits with Other Banks	1,200		1,200		—		1,200		—
Investment and Mortgage-Backed Securities	409,894		409,505		—		409,505		—
Loans Receivable, Net	430,054		421,379		—		—		421,379
FHLB Stock	2,204		2,204		2,204		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	529,043	$	529,043	$	529,043	$	—	$	—
Certificate Accounts	238,454		236,103		—		236,103		—
Advances from FHLB	34,030		33,771		—		33,771		—
Other Borrowed Money	10,698		10,698		10,698		—		—
Note Payable	2,363		2,363		—		2,363		—
Senior Convertible Debentures	6,064		6,064		—		6,064		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—