NOTE H — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013, follows:

($ in thousands)

	September 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	32,573	$	84	$	130	$	32,527
Tax-exempt and taxable obligations of states and municipal subdivisions		110,052		1,842		1,527		110,367
Mortgage-backed securities		81,526		871		1,365		81,032
Corporate obligations		28,398		233		1,713		26,918
Other		1,255		-		286		969
Total	$	253,804	$	3,030	$	5,021	$	251,813
Held-to-maturity securities:
Mortgage-backed securities	$	2,446	$	-	$	66	$	2,380
Taxable obligations of states and municipal subdivisions		6,000		1,061		-		7,061
Total	$	8,446	$	1,061	$	66	$	9,441