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The carrying amounts of variable rate time deposit accounts and certificates of deposit approximate their fair values at the report date. Fair values of fixed rate time deposits are estimated by discounting the future cash flows using interest rates currently being offered and a schedule of aggregated expected maturities. The carrying amount of accrued interest approximates its fair value. 

Short-term borrowings: The carrying amounts of short-term borrowings such as Federal funds purchased, securities sold under agreements to repurchase, borrowings from the 

Financial assets Cash and due from banks Interest-bearing deposits with banks Federal funds sold Securities available for sale Investments held to maturity Loans, net of allowance 

Financial liabilities Deposits Short-term borrowings Long-term debt 

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Federal Home Loan Bank and treasury, tax and loan notes approximate their fair values. 

Long-term debt: The carrying amounts of variable rate debt approximate their fair values at the report date. Fair values of fixed rate debt are estimated by discounting the future cash flows using the Corporation’ s estimated incremental borrowing rate for similar types of borrowing arrangements. 

The following table presents carrying amounts and estimated fair values of the Corporation’ s financial instruments at December 31, 2001 and 2000: 

