Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 13 – Fair Value of Financial Instruments

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments:

	June 30, 2011				December 31, 2010
	Carrying				Carrying
(In thousands)	Amount		Fair Value		Amount		Fair Value
Balance sheet assets:
Cash and cash equivalents	$	204,132	$	204,132	$	138,929	$	138,929
Investment securities		264,218		264,218		264,569		264,569
Loans, net		705,558		712,111		696,742		710,294
Accrued interest receivable		5,866		5,866		5,857		5,857
Total	$	1,179,774	$	1,186,327	$	1,106,097	$	1,119,649
Balance sheet liabilities:
Deposits	$	521,712	$	521,712	$	518,590	$	518,590
Accounts and drafts payable		600,606		600,606		516,107		516,107
Short-term borrowings		—		—		9		9
Accrued interest payable		197		197		208		208
Total	$	1,122,515	$	1,122,515	$	1,034,914	$	1,034,914

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and Other Short-term Instruments – For cash and cash equivalents, accrued interest receivable, accounts and drafts payable, short-term borrowings and accrued interest payable, the carrying amount is a reasonable estimate of fair value because of the demand nature or short maturities of these instruments.

Loans – The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits – The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits.