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Financial Instruments

3 Months Ended

Mar. 31, 2013

Certain financial assets and liabilities are accounted for at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.

The following table represents cash and the available-for-sale securities adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities as of March 31, 2013 and December 31, 2012:

	March 31, 2013
	Cost		Unrealized Gains		Unrealized Losses			Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	47,711,000	$	-	$	-		$	-	$	47,711,000	$	47,711,000	$	-

Level 1:
Money Market Accounts		1,519,000		-		-			-		1,519,000		1,519,000		-
Mutual Funds		1,067,000		19,000		(4,000	)		-		1,082,000		-		1,082,000
Corporate Equity Securities		1,767,000		550,000		(45,000	)		-		2,272,000		-		2,272,000
Government & Agency Securities		6,337,000		160,000		(2,000	)		30,000		6,525,000		-		6,525,000
		10,690,000		729,000		(51,000	)		30,000		11,398,000		1,519,000		9,879,000

Level 2:
Municipal Bonds		3,634,000		127,000		-			21,000		3,782,000		-		3,782,000
Corporate Bonds		5,849,000		111,000		(1,000	)		49,000		6,008,000		-		6,008,000
		9,483,000		238,000		(1,000	)		70,000		9,790,000		-		9,790,000

Total	$	67,884,000	$	967,000	$	(52,000	)	$	100,000	$	68,899,000	$	49,230,000	$	19,669,000

		December 31, 2012
		Cost		Unrealized Gains		Unrealized Losses			Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	38,977,000	$	-	$	-		$	-	$	38,977,000	$	38,977,000	$	-

Level 1:
Money Market Accounts		960,000		-		-			-		960,000		960,000		-
Mutual Funds		234,000		13,000		(1,000	)		-		246,000		-		246,000
Corporate Equity Securities		1,853,000		489,000		(46,000	)		-		2,296,000		-		2,296,000
Government & Agency Securities		7,004,000		180,000		(3,000	)		34,000		7,215,000		-		7,215,000
		10,051,000		682,000		(50,000	)		34,000		10,717,000		960,000		9,757,000

Level 2:
Municipal Bonds		4,197,000		124,000		(4,000	)		27,000		4,344,000		-		4,344,000
Corporate Bonds		5,772,000		136,000		(2,000	)		50,000		5,956,000		-		5,956,000
		9,969,000		260,000		(6,000	)		77,000		10,300,000		-		10,300,000

Total	$	58,997,000	$	942,000	$	(56,000	)	$	111,000	$	59,994,000	$	39,937,000	$	20,057,000