Financial Instruments

12 Months Ended

Dec. 31, 2012

(8)	Financial Instruments The estimated fair values of the Company's financial instruments were as follows (in thousands):

	At December 31, 2012				At December 31, 2011
Financial assets:	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	23,611	$	23,611	$	22,776	$	22,776
Securities available for sale		18,648		18,648		28,907		28,907
Loans		85,209		85,046		89,217		89,069
Federal Home Loan Bank stock		1,478		1,478		2,159		2,159
Accrued interest receivable		499		499		499		499

Financial liabilities:
Deposit liabilities		101,611		101,985		107,895		108,461
Federal Home Loan Bank advances		27,700		29,633		31,700		33,920
Junior subordinated debenture		5,155		4,836		5,155		4,734
Off-balance sheet financial instruments		0		0		0		0

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the consolidated balance sheet. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments.

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management's credit evaluation of the counterparty.

As of December 31, 2012, commitments to extend credit totaled $5,195,000.