Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2011

Fair Value of Financial Instruments [Abstract]

(6) Fair Value of Financial Instruments

Generally accepted accounting principles require interim reporting period disclosure about the fair value of financial instruments, including assets, liabilities and off-balance sheet items for which it is practicable to estimate fair value. The fair value estimates are made based upon relevant market information, if available, and upon the characteristics of the financial instruments themselves. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based upon judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. The estimated fair value of the Company’s financial instruments as of June 30, 2011 and December 31, 2010 are shown below.


	June 30, 2011						December 31, 2010
	Carrying		Estimated		Contract		Carrying			Estimated			Contract
(Dollars in thousands)	amount		fair value		amount		amount			fair value			amount

Financial assets:
Cash and cash equivalents	$	26,724		26,724				20,981			20,981
Securities available for sale		134,247		134,247				151,564			151,564
Loans held for sale		1,075		1,075				2,728			2,728
Loans receivable, net		601,787		598,597				664,241			655,508
Federal Home Loan Bank stock		5,574		5,574				6,743			6,743
Accrued interest receivable		2,932		2,932				3,311			3,311
Financial liabilities:
Deposits		647,115		647,115				683,230			683,230
Federal Home Loan Bank advances		85,000		90,546				122,500			129,893
Accrued interest payable		898		898				1,092			1,092
Off-balance sheet financial instruments:
Commitments to extend credit		10		10		94,313		56			56			92,313
Commitments to sell loans		12		12		3,066		(1	)		(1	)		3,413