XML 36 R26.htm IDEA: XBRL DOCUMENT

Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Fair value measurements, recurring basis

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


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




Student Loan Pools	$	—	$	60,080,844	$	—	$	—	$	40,231,830	$	—
SBA Bonds	—		122,910,571		—		—		111,893,099		—
Tax Exempt Municipal Bonds	—		44,216,002		—		—		47,241,494		—
Taxable Municipal Bonds	—		35,940,559		—		—		14,840,410		—
Mortgage-Backed Securities	—		241,621,313		—		—		200,438,007		—
State Tax Credit	—		33,034		—		—		—		—
Total	$	—	$	504,802,323	$	—	$	—	$	414,644,840	$	—

Fair value measurements, nonrecurring basis

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


	September 30, 2020
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	$	7,495,183	$	—	$	7,495,183
Collateral Dependent Impaired Loans (1)	—		—		3,213,891		3,213,891
Foreclosed Assets	—		—		164,700		164,700
Total	$	—	$	7,495,183	$	3,378,591	$	10,873,774


	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) REPORTED NET OF SPECIFIC RESERVES. THERE WERE NO SPECIFIC RESERVES AT SEPTEMBER 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 September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:

Valuation

Significant

September 30, 2020

December 31, 2019

Level 3 Assets

Technique

Unobservable Inputs

Range

Collateral Dependent Impaired Loans

Appraised Value

Discount Rates/ Discounts to Appraised Values

13% - 96%

8% - 92%

Foreclosed Assets

Appraised Value/Comparable Sales

Discount Rates/ Discounts to Appraised Values

11%

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


September 30, 2020	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:	Dollars in thousands
Cash and Cash Equivalents	$	15,607	$	15,607	$	15,607	$	—	$	—
Certificates of Deposits with Other Banks	950		950		—		950		—
Investment and Mortgage-Backed Securities	520,650		521,649		—		521,649		—
Loans Receivable, Net	527,870		531,056		—		—		531,056
FHLB Stock	2,354		2,354		2,354		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	700,893	$	700,893	$	700,893	$	—	$	—
Certificate Accounts	203,899		205,077		—		205,077		—
Advances from FHLB	35,000		35,413		—		35,413		—
Borrowings from FRB	16,025		16,214		—		16,214		—
Other Borrowed Money	19,768		19,768		19,768		—		—


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		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		—