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Carrying Amounts and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis were as follows at September 30, 2021 and December 31, 2020:


	September 30, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3




Student Loan Pools	$	—	$	70,581,171	$	—	$	—	$	61,081,465	$	—
SBA Bonds	—		139,325,350		—		—		153,305,025		—
Tax Exempt Municipal Bonds	—		49,770,320		—		—		48,816,442		—
Taxable Municipal Bonds	—		54,540,680		—		—		48,348,455		—
Mortgage-Backed Securities	—		313,616,148		—		—		277,773,014		—

Total	$	—	$	627,833,669	$	—	$	—	$	589,324,401	$	—

Fair value measurements, nonrecurring basis

The tables below present assets measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall.


	September 30, 2021
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	3,589,131		$	—	$	3,589,131
Collateral Dependent Impaired Loans (1)	—		—		2,483,766		2,483,766
Foreclosed Assets	—		—		129,700		129,700
Total	$	—	$	3,589,131	$	2,613,466	$	6,202,597


	December 31, 2020
Assets:	Level 1		Level 2		Level 3		Total
Mortgage Loans Held For Sale	$	—	5,693,400		$	—	$	5,693,400
Collateral Dependent Impaired Loans (1)	—		—		2,216,948		2,216,948
Foreclosed Assets	—		—		498,610		498,610
Total	$	—	$	5,693,400	$	2,715,558	$	8,408,958

(1) Reported net of specific reserves. There were no specific reserves at September 30, 2021 and December 31, 2020.

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, 2021 and December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:

Valuation

Significant

9/30/2021

12/31/2020

Level 3 Assets

Technique

Unobservable Inputs

Range of Inputs

Collateral Dependent Impaired Loans

Appraised Value/ Discounted Cash Flows

Discounts to appraised values or cash flows for estimated holding and/or selling costs or age of appraisal

—% - 14%

Foreclosed Assets

Appraised Value/Comparable Sales

Discounts to appraised values for estimated holding or selling costs

30%

11% - 72%

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, 2021 and December 31, 2020 presented in accordance with the applicable accounting guidance.


September 30, 2021	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:	Dollars in thousands
Cash and Cash Equivalents	$	13,555	$	13,555	$	13,555	$	—	$	—
Certificates of Deposits with Other Banks	100		100		—		100		—
Investment and Mortgage-Backed Securities	650,254		650,688		—		650,688		—
Loans Receivable, Net	500,601		500,748		—		—		500,748
FHLB Stock	963		963		963		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	861,081	$	861,081	$	861,081	$	—	$	—
Certificate Accounts	155,486		155,831		—		155,831		—
Advances from FHLB	10,000		10,068		—		10,068		—
Borrowings from FRB	15,375		15,480		—		15,480		—
Other Borrowed Money	26,608		26,608		26,608		—		—
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, 2020	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:	Dollars in thousands
Cash and Cash Equivalents	$	18,025	$	18,025	$	18,025	$	—	$	—
Certificates of Deposits with Other Banks	350		350		—		350		—
Investment and Mortgage-Backed Securities	607,579		608,530		—		608,530		—
Loans Receivable, Net	479,167		481,450		—		—		481,450
FHLB Stock	2,354		2,354		2,354		—		—

Financial Liabilities:
Deposits:
Checking, Savings & Money Market Accounts	$	737,571	$	737,571	$	737,571	$	—	$	—
Certificate Accounts	180,525		181,487		—		181,487		—
Advances from FHLB	35,000		35,200		—		35,200		—
Borrowings from FRB	48,700		48,978				48,978
Other Borrowed Money	13,117		13,117		13,117		—		—
Subordinated Debentures	30,000		30,000		—		30,000		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—