Fair Value Financial Instruments

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Fair Value Financial Instruments

8. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company is required to disclose the fair value information about financial instruments, where it is practicable to estimate that value. Because assumptions used in these valuation techniques are inherently subjective in nature, the estimated fair values cannot always be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument.

The fair value estimates presented herein are based on relevant information available to management for the periods ended September 30, 2020 and December 31, 2019, respectively. Management is not aware of any factors that would significantly affect these estimated fair value amounts. As these reporting requirements exclude certain financial instruments and all non-financial instruments, the aggregate fair value amounts presented herein do not represent management’s estimate of the underlying value of the Company.

The estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows:

	September 30, 2020		December 31, 2019
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
Cash and equivalents	$     269,401	$    269,401	$     191,987	$    191,987
Accounts receivable	109,612	109,612	125,539	125,539
Interest receivable	179,747	179,747	185,190	185,190
Mortgage loans receivable	18,462,121	23,108,195	22,425,177	24,573,176
Bond portfolio	18,284,135	18,284,135	16,055,937	16,055,937
Secured investor certificates	24,158,250	29,896,202	26,850,000	32,389,253