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Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2013
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:

March 31, 2013 December 31, 2012
Carrying Carrying      
(In thousands) Amount       Fair Value       Amount Fair Value
Balance sheet assets:
       Cash and cash equivalents $     166,367 $     166,367 $     141,088 $     141,088
       Investment securities 307,507 307,507 341,935 341,935
       Loans, net       668,858 669,565 675,376 676,675
       Accrued interest receivable 5,664 5,664 6,276 6,276
              Total $ 1,148,396 $ 1,149,103 $ 1,164,675 $ 1,165,974
Balance sheet liabilities:
       Deposits $ 536,346 $ 536,768 $ 563,708 $ 564,189
       Accounts and drafts payable 542,528 542,528 522,761 522,761
       Accrued interest payable 129 129 112 $ 112
              Total $ 1,079,003 $ 1,079,425 $ 1,086,581 $ 1,087,062
 

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 Cash Equivalents - The carrying amount approximates fair value.

Investment in Securities - The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 11, “Investment in Securities”, for fair value and unrealized gains and losses by investment type.

Loans - The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 2 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses results in a fair valuation.

Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or current appraised value and therefore, the fair value is a nonrecurring Level 3 valuation.

Accrued Interest Receivable - The carrying amount approximates fair value.

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 and therefore, is a Level 2 valuation. 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.

Accounts and Drafts Payable - The carrying amount approximates fair value.

Accrued Interest - The carrying amount approximates fair value.

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three months ended March 31, 2013 and 2012. No financial instruments are measured using Level 3 inputs for the three months ended March 31, 2013 and 2012.