7. Fair Value (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Schedule Of Fair Value Assets On Recurring Basis

Assets measured at fair value on a recurring basis and reflected in the balance sheet at the dates presented, segregated by fair value hierarchy, are summarized below:

September 30, 2012	Level 1		Level 2		Total
Assets: (market approach)
U.S. GSE debt securities	$	0	$	39,839,785	$	39,839,785
U.S. Government securities		7,117,656		0		7,117,656
U.S. GSE preferred stock		51,377		0		51,377
December 31, 2011
Assets: (market approach)
U.S. GSE debt securities	$	0	$	60,963,239	$	60,963,239
U.S. Government securities		5,043,555		0		5,043,555
U.S. GSE preferred stock		92,123		0		92,123
September 30, 2011
Assets: (market approach)
U.S. GSE debt securities	$	0	$	26,359,450	$	26,359,450
U.S. Government securities		4,041,970		1,003,480		5,045,450
U.S. GSE preferred stock		128,375		0		128,375

Schedule of Fair Value Assets Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis and reflected in the balance sheet at the dates presented, segregated by fair value hierarchy, are summarized below:

September 30, 2012	Level 2
Assets: (market approach)
Residential mortgage servicing rights	$	1,005,857
Impaired loans, net of related allowance		683,561
OREO		1,150,198
December 31, 2011
Assets: (market approach)
Residential mortgage servicing rights	$	1,167,808
Impaired loans, net of related allowance		3,463,540
OREO		90,000
September 30, 2011
Assets: (market approach)
Residential mortgage servicing rights	$	1,211,219
Impaired loans, net of related allowance		3,271,384
OREO		0

Schedule Of Estimated Fair Values Of Financial Instruments

The estimated fair values of the Company's financial instruments were as follows:

September 30, 2012	Carrying		Fair		Fair		Fair		Fair
	Amount		Value		Value		Value		Value
	(Dollars in Thousands)
Financial assets:			Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	9,524	$	9,524	$	0	$	0	$	9,524
Securities held-to-maturity		50,066		0		50,631		0		50,631
Securities available-for-sale		47,009		7,169		39,840		0		47,009
Restricted equity securities		4,021		0		4,021		0		4,021
Loans and loans held-for-sale
Commercial & industrial		47,485		0		0		48,187		48,187
Commercial real estate		136,017		0		0		137,753		137,753
Residential real estate - 1st lien		168,541		0		0		175,808		175,808
Residential real estate - Jr lien		46,029		0		0		46,954		46,954
Consumer		11,023		0		0		11,465		11,465
Mortgage servicing rights		1,005		0		1,006		0		1,006
Accrued interest receivable		1,810		0		1,810		0		1,810
Financial liabilities:
Deposits
Other deposits		443,008		0		445,472		0		445,472
Brokered deposits		14,094		0		14,101		0		14,101
Federal funds purchased and short term-borrowings		4,840		0		4,840		0		4,840
Long-term borrowings		12,010		0		12,327		0		12,327
Repurchase agreements		28,076		0		28,076		0		28,076
Capital lease obligations		790		0		790		0		790
Subordinated debentures		12,887		0		13,621		0		13,621
Accrued interest payable		121		0		121		0		121

	December 31, 2011				September 30, 2011
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	23,465	$	23,465	$	47,759	$	47,759
Securities held-to-maturity		29,702		30,289		36,898		37,397
Securities available-for-sale		66,099		66,099		31,533		31,533
Restricted equity securities		4,309		4,309		4,309		4,309
Loans and loans held-for-sale, net		384,793		395,386		387,104		398,640
Mortgage servicing rights		1,097		1,168		1,135		1,211
Accrued interest receivable		1,701		1,701		1,670		1,670
Financial liabilities:
Deposits		454,393		457,347		451,163		454,429
Federal funds purchased and other borrowed funds		18,010		18,404		18,010		18,437
Repurchase agreements		21,645		21,645		24,091		24,091
Capital lease obligations		833		833		800		800
Subordinated debentures		12,887		11,691		12,887		11,883
Accrued interest payable		150		150		138		138