7. Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

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 consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below:

September 30, 2013	Level 1		Level 2		Total
Assets: (market approach)
U.S. GSE debt securities	$	0	$	28,389,611	$	28,389,611
U.S. Government securities		7,062,460		0		7,062,460
December 31, 2012
Assets: (market approach)
U.S. GSE debt securities	$	0	$	33,785,469	$	33,785,469
U.S. Government securities		7,100,590		0		7,100,590
September 30, 2012
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

Schedule of Fair Value Assets Nonrecurring Basis

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

September 30, 2013	Level 2
Assets: (market approach)
Residential mortgage servicing rights	$	1,227,790
Impaired loans, net of related allowance		1,249,931
OREO		1,125,105

December 31, 2012	Level 2
Assets: (market approach)
Residential mortgage servicing rights	$	1,009,623
Impaired loans, net of related allowance		737,274
OREO		1,074,705

September 30, 2012	Level 2
Assets: (market approach)
Residential mortgage servicing rights	$	1,005,337
Impaired loans, net of related allowance		683,561
OREO		1,150,198

Schedule Of Estimated Fair Values Of Financial Instruments

The estimated fair values of commitments to extend credit and letters of credit were immaterial as of the dates presented in the tables below.  The estimated fair values of the Company's financial instruments were as follows:

September 30, 2013

			Fair		Fair		Fair		Fair
	Carrying		Value		Value		Value		Value
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and cash equivalents	$	13,382	$	13,382	$	0	$	0	$	13,382
Securities held-to-maturity		39,219		0		39,610		0		39,610
Securities available-for-sale		35,452		7,062		28,390		0		35,452
Restricted equity securities		3,633		0		3,633		0		3,633
Loans and loans held-for-sale
Commercial & industrial		54,994		0		319		56,038		56,357
Commercial real estate		145,266		0		1,601		148,401		150,002
Residential real estate - 1st lien		174,135		0		1,624		177,800		179,424
Residential real estate - Jr lien		44,739		0		483		45,272		45,755
Consumer		9,278		0		0		9,742		9,742
Mortgage servicing rights		1,228		0		1,228		0		1,228
Accrued interest receivable		1,633		0		1,633		0		1,633
Financial liabilities:
Deposits
Other deposits		454,521		0		455,772		0		455,772
Brokered deposits		16,029		0		16,038		0		16,038
Federal funds purchased and short-term borrowings		8,325		0		8,325		0		8,325
Repurchase agreements		23,686		0		23,686		0		23,686
Capital lease obligations		727		0		727		0		727
Subordinated debentures		12,887		0		12,872		0		12,872
Accrued interest payable		73		0		73		0		73

December 31, 2012

			Fair		Fair		Fair		Fair
	Carrying		Value		Value		Value		Value
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and cash equivalents	$	29,882	$	29,882	$	0	$	0	$	29,882
Securities held-to-maturity		41,866		0		42,291		0		42,291
Securities available-for-sale		40,886		7,101		33,785		0		40,886
Restricted equity securities		4,021		0		4,021		0		4,021
Loans and loans held-for-sale
Commercial & industrial		48,819		0		435		49,441		49,876
Commercial real estate		138,166		0		1,763		139,175		140,938
Residential real estate - 1st lien		169,424		0		1,507		175,559		177,066
Residential real estate - Jr lien		46,661		0		271		47,484		47,755
Consumer		10,495		0		0		11,079		11,079
Mortgage servicing rights		1,010		0		1,010		0		1,010
Accrued interest receivable		1,751		0		1,751		0		1,751
Financial liabilities:
Deposits
Other deposits		460,939		0		463,168		0		463,168
Brokered deposits		14,558		0		14,559		0		14,559
Long-term borrowings		6,000		0		6,004		0		6,004
Repurchase agreements		34,150		0		34,150		0		34,150
Capital lease obligations		775		0		775		0		775
Subordinated debentures		12,887		0		13,158		0		13,158
Accrued interest payable		93		0		93		0		93

September 30, 2012

			Fair		Fair		Fair		Fair
	Carrying		Value		Value		Value		Value
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
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		47,041		0		446		47,741		48,187
Commercial real estate		134,499		0		2,178		135,566		137,744
Residential real estate - 1st lien		166,947		0		1,150		174,547		175,697
Residential real estate - Jr lien		45,606		0		252		46,656		46,908
Consumer		10,886		0		0		11,465		11,465
Mortgage servicing rights		1,005		0		1,005		0		1,005
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