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## Federal Funds Purchased and Short -Term Borrowings (Carried at Cost) 

The carrying amounts of federal funds purchased and short -term borrowings approximate their fair values. 

## Long -Term Borrowings (Carried at Cost) 

Fair values of long -term borrowings are estimated using discounted cash flow analysis, based on rates currently available to the Bank for advances from the FHLB with similar terms and remaining maturities. 

## Off - Balance Sheet Financial Instruments (Disclosed at Cost) 

Fair values for the Bank’ s off - balance sheet financial instruments ([ ending commitments and letters of credit) are based on fees currently charged to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. 

The information presented is based on pertinent information available as of December 31, 2013 and 2012. Although the Bank is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since that time and current estimated fair value of these financial instruments might have changed significantly (in thousands). 

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