Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Fair value measurements, recurring basis

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



	September 30, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Student Loan Pools	$	—	$	41,243,338	$	—	$	—	$	12,885,501	$	—
SBA Bonds	—		120,976,425		—		—		125,446,531		—
Tax Exempt Municipal Bonds	—		47,516,986		—		—		61,330,369		—
Taxable Municipal Bonds	—		2,017,055		—		—		1,977,885		—
Mortgage-Backed Securities	—		226,273,389		—		—		184,460,551		—
State Tax Credit	—		61,242		—		—		—		—
Equity Securities	—		155,000		—		—		155,000		—
Total	$	—	$	438,243,435	$	—	$	—	$	386,255,837	$	—

Fair value measurements, nonrecurring basis

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



	September 30, 2019
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	3,682,876	$	—	$	3,682,876
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		3,749,734		3,749,734
Foreclosed Assets	—		—		703,540		703,540
Total	$	—	$	3,682,876	$	4,453,274	$	8,136,150



	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 $565,000 AND $739,000 AT SEPTEMBER 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 September 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	$	3,749,734	Appraised Value	Discount Rates/ Discounts to Appraised Values	4% - 97%
Foreclosed Assets	$	703,540	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 September 30, 2019 and December 31, 2018 presented in accordance with the applicable accounting guidance.



September 30, 2019	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	13,793	$	13,793	$	13,793	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	459,660		460,197		—		460,197		—
Loans Receivable, Net	453,641		450,165		—		—		450,165
FHLB Stock	2,853		2,853		2,853		—		—
Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	534,622	$	534,622	$	534,622	$	—	$	—
Certificate Accounts	279,999		279,987		—		279,987		—
Advances from FHLB	47,800		47,920		—		47,920		—
Other Borrowed Money	14,989		14,989		14,989		—		—
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		—