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Carrying Amounts and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at June 30, 2020 and December 31, 2019:


	June 30, 2020										December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3




Student Loan Pools	$	—	$	51,184,667	$	—	$	—	$	40,231,830	$	—
SBA Bonds	—		110,487,183		—		—		111,893,099		—
Tax Exempt Municipal Bonds	—		44,093,279		—		—		47,241,494		—
Taxable Municipal Bonds	—		28,585,740		—		—		14,840,410		—
Mortgage-Backed Securities	—		237,514,685		—		—		200,438,007		—
State Tax Credit	—		66,069		—		—		—		—
Total	$	—	$	471,931,623	$	—	$	—	$	414,644,840	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall.


	June 30, 2020
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	6,155,830	$	—	$	6,155,830
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		3,546,165		3,546,165
Foreclosed Assets	—		—		184,300		184,300
Total	$	—	$	6,155,830	$	3,730,465	$	9,886,295


	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 JUNE 30, 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 June 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:

Valuation

Significant

June 30, 2020

December 31, 2019

Level 3 Assets

Technique

Unobservable Inputs

Range

Collateral Dependent Impaired Loans

Appraised Value

Discount Rates/ Discounts to Appraised Values

12% - 95%

8% - 92%

Foreclosed Assets

Appraised Value/Comparable Sales

Discount Rates/ Discounts to Appraised Values

11% - 40%

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 June 30, 2020 and December 31, 2019 presented in accordance with the applicable accounting guidance.


June 30, 2020	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:	Dollars in thousands
Cash and Cash Equivalents	$	534,446	$	534,446	$	534,446	$	—	$	—
Certificates of Deposits with Other Banks	950,005		950		—		950		—
Investment and Mortgage-Backed Securities	488,790		489,765		—		489,765		—
Loans Receivable, Net	534,446		540,345		—		—		540,345
FHLB Stock	2,673		2,673		2,673		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	663,357	$	663,357	$	663,357	$	—	$	—
Certificate Accounts	211,828		213,407		—		213,407		—
Advances from FHLB	42,500		43,104		—		43,104		—
Borrowings from FRB	9,700		9,838		—		9,838		—
Other Borrowed Money	20,953		20,953		20,953		—		—


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
	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:	Dollars in thousands
Cash and Cash Equivalents	$	12,536	$	12,536	$	12,536	$	—	$	—
Certificates of Deposits with Other Banks	950,005		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		—