Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

Note 18 - Fair Values of Financial Instruments

(Table amounts in $ 000s)

The following methods and assumptions were used to estimate fair values for financial instruments.  Securities' fair values are based on quoted market prices or, if no quotes are available, on the rate and term of the security and or information about the issuer.  For loans, leases, deposits, securities sold under repurchase agreements and fixed rate FHLB advances, the fair value is estimated by discounted cash flow analysis using market rates for the estimated life and credit risk.  Fair values for impaired loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.  The fair value of off-balance sheet items is based on the fees or cost that would currently be charged to enter or terminate such arrangements, and the amount is not material. Fair value for cash and cash equivalents, accrued interest receivable, advances from borrowers for taxes and insurance and accrued interest payable are estimated at carrying value. The estimated fair value for Federal Home Loan Bank stock is equal to the carrying value based on the restricted nature of the stock.

The estimated year end fair values of financial instruments were:

2011	Carrying Value			Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	37,833		$	37,833
Securities available for sale		87,140			87,140
Loans and leases, net		303,729			313,338
Federal Home Loan Bank stock		1,801			1,801
Accrued interest receivable		1,401			1,401
Financial liabilities:
Deposits	$	(397,631	)	$	(397,885	)
Securities sold under repurchase agreements		(19,455	)		(19,417	)
Subordinated debentures		(10,310	)		(4,375	)
Advances from borrowers for taxes and insurance		(1,222	)		(1,222	)
Accrued interest payable		(1,127	)		(1,127	)

2010	Carrying Value			Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	30,357		$	30,357
Securities available for sale		91,830			91,830
Loans and leases, net		366,453			359,891
Federal Home Loan Bank stock		1,801			1,801
Accrued interest receivable		1,751			1,751
Financial liabilities:
Deposits	$	(446,551	)	$	(447,147	)
Securities sold under repurchase agreements		(35,517	)		(35,421	)
Subordinated debentures		(10,310	)		(5,904	)
Advances from borrowers for taxes and insurance		(1,109	)		(1,109	)
Accrued interest payable		(1,317	)		(1,317	)