In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to individual markets and, in many cases, could not be realized in immediate settlement. SFAS 107 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Bank.
Federal funds sold - The carrying amount approximates fair value.
Investment securities - Fair values for securities are based on published market prices, if available. For unquoted securities, the fair value is estimated by the Company on the basis of financial and other information. The fair value of loans is estimated by discounting future cash flows, using the contractual rates in effect for such loans at the reporting date. Accrued interest receivable and payable - The carrying amount approximates fair value. Deposit liabilities - The fair values disclosed for demand and savings deposits are, by definition, equal to the amount payable on demand at the reporting date.