Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 12 – Fair Value of Financial Instruments

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

	June 30, 2012				December 31, 2011
	Carrying				Carrying
(In thousands)	Amount		Fair Value		Amount		Fair Value
Balance sheet assets:
Cash and cash equivalents	$	156,662	$	156,662	$	235,962	$	235,962
Investment securities		322,789		322,789		310,612		310,612
Loans, net		680,789		685,323		658,611		665,348
Accrued interest receivable		6,151		6,151		6,125		6,125
Total	$	1,166,391	$	1,170,925	$	1,211,310	$	1,218,047
Balance sheet liabilities:
Deposits	$	511,063	$	511,557	$	548,368	$	548,985
Accounts and drafts payable		592,819		592,819		595,201		595,201
Accrued interest payable		133		133		159	$	159
Total	$	1,104,015	$	1,104,509	$	1,143,728	$	1,144,345

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 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.

Investment Securities – The fair value is measured using Level 2 valuations.

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.

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the six months ended June 30, 2012 and 2011. No financial instruments are measured using Level 3 inputs for the six months ended June 30, 2012 and 2011.