Carrying Amounts and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at March 31, 2020 and December 31, 2019:



	March 31, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Student Loan Pools	$	—	$	47,799,914	$	—	$	—	$	40,231,830	$	—
SBA Bonds	—		116,354,323		—		—		111,893,099		—
Tax Exempt Municipal Bonds	—		40,275,261		—		—		47,241,494		—
Taxable Municipal Bonds	—		27,514,184		—		—		14,840,410		—
Mortgage-Backed Securities	—		237,380,523		—		—		200,438,007		—
Total	$	—	$	469,324,205	$	—	$	—	$	414,644,840	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall.



	March 31, 2020
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	5,408,570	$	—	$	5,408,570
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		3,268,153		3,268,153
Foreclosed Assets	—		—		647,740		647,740
Total	$	—	$	5,408,570	$	3,915,893	$	9,324,463



	December 31, 2019
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	3,990,606	$	—	$	3,990,606
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		3,222,746		3,222,746
Foreclosed Assets	—		—		677,740		677,740
Total	$	—	$	3,990,606	$	3,900,486	$	7,891,092

^{(1) COLLATERAL IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES. THERE WERE NO SPECIFIC RESERVES AT MARCH 31, 2020 AND DECEMBER 31, 2019.}

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, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:



	Valuation	Significant	March 31, 2020	December 31, 2019
Level 3 Assets	Technique	Unobservable Inputs	Range	Range
Collateral Dependent Impaired Loans	Appraised Value	Discount Rates/ Discounts to Appraised Values	10% - 95%	8% - 92%
Foreclosed Assets	Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	18% - 42%	18% - 42%

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, 2020 and December 31, 2019 presented in accordance with the applicable accounting guidance.



March 31, 2020	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	15,462	$	15,462	$	15,462	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	487,611		488,520		—		488,520		—
Loans Receivable, Net	459,967		465,391		—		—		465,391
FHLB Stock	4,086		4,086		4,086		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	552,879	$	552,879	$	552,879	$	—	$	—
Certificate Accounts	223,121		224,691		—		224,691		—
Advances from FHLB	75,769		76,269		—		76,269		—
Borrowings from FRB	19,900		20,031		—		20,031		—
Other Borrowed Money	17,006		17,006		17,006		—		—
Subordinated Debentures	30,000		30,000		—		30,000		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—

10. Carrying Amounts and Fair Value of Financial Instruments, Continued



December 31, 2019	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	12,536	$	12,536	$	12,536	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	433,892		434,451		—		434,451		—
Loans Receivable, Net	452,859		450,796		—		—		450,796
FHLB Stock	2,537		2,537		2,537		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	541,954	$	541,954	$	541,954	$	—	$	—
Certificate Accounts	229,453		229,363		—		229,363		—
Advances from FHLB	38,138		38,233		—		38,233		—
Other Borrowed Money	11,580		11,580		11,580		—		—
Senior Convertible Debentures	6,044		6,044		—		6,044		—
Subordinated Debentures	30,000		30,000		—		30,000		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—