Carrying Amounts and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at June 30, 2019 and December 31, 2018:



	June 30, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Student Loan Pools	$	—	$	41,802,666	$	—	$	—	$	12,885,501	$	—
SBA Bonds	—		127,862,904		—		—		125,446,531		—
Tax Exempt Municipal Bonds	—		46,927,077		—		—		61,330,369		—
Taxable Municipal Bonds	—		1,034,330		—		—		1,977,885		—
Mortgage-Backed Securities	—		216,411,424		—		—		184,460,551		—
Equity Securities	—		155,000		—		—		155,000		—
Total	$	—	$	434,193,401	$	—	$	—	$	386,255,837	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall.



	June 30, 2019
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	3,750,815	$	—	$	3,750,815
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		4,155,630		4,155,630
Foreclosed Assets	—		—		734,140		734,140
Total	$	—	$	3,750,815	$	4,889,770	$	8,640,585



	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 $636,000 AND $739,000 AT JUNE 30, 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 June 30, 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	$	4,155,630	Appraised Value	Discount Rates/ Discounts to Appraised Values	4% - 97%
Foreclosed Assets	$	734,140	Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	16% - 68%

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, 2019 and December 31, 2018 presented in accordance with the applicable accounting guidance.



June 30, 2019	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	11,019	$	11,019	$	11,019	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	456,707		457,063		—		457,063		—
Loans Receivable, Net	441,576		438,290		—		—		438,290
FHLB Stock	3,401		3,401		3,401		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	535,901	$	535,901	$	535,901	$	—	$	—
Certificate Accounts	250,547		250,222		—		250,222		—
Advances from FHLB	60,700		60,785		—		60,785		—
Other Borrowed Money	15,754		15,754		15,754		—		—
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		—