NOTES TO FINANCIAL STATEMENTS (continued) Loans Receivable (Carried at Cost) Impaired Loans (Generally Carried at Fair Value) Restricted Investment in Bank Stocks (Carried at Cost) Accrued Interest Receivable and Payable (Carried at Cost) Deposits (Carried at Cost) FHLB Advances (Carried at Cost) Collateralized Borrowings (Carried at Cost) Off-Balance Sheet Financial Instruments Note 16 - Fair Value Measurements and Fair Values of Financial Instruments (Continued)  The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate risk inherent in the loans. Projected future cash flows are calculated based upon contractual  maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The Bank generally measures impaired loans based on the fair value of the loan’s collateral. Fair value is generally determined  based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds.  These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amount of restricted investment in bank stocks approximates fair value, and considers the limited marketability of  such securities.  The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair value.  The fair values disclosed for nonmaturity deposits (e.g., interest and non-interest checking, savings and money market accounts)  are,by definition,equal to the amount payable on demand at the reporting date (i.e.,their carrying amounts). Fair values for time  deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market  on time deposits to a schedule of aggregated expected monthly maturities on time deposits. Fair values of FHLB advances are estimated using a discounted cash flow analysis, based on quoted prices for new FHLB advances  with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a  market value that is deemed to represent the transfer price if the liability were assumed by a third party.  The carrying amount of collateralized borrowings approximates its fair value. Fair values for off-balance sheet financial instruments (lending commitments and letters of credit are disclosed in Note 14) are  based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the  agreements and the counterparties’ credit standing. The fair value of these instruments is considered immaterial. 36