Derivative Instruments  Off-balance sheet Instruments  NOTE 19: RELATED PARTY TRANSACTIONS December 31, 2011 December 31, 2010 Carrying  Estimated Carrying  Estimated (Dollars in thousands) amount fair value amount fair value Financial Assets: Cash and cash equivalents $ 55,428 $ 55,428 $ 21,424 $ 21,424 Securities available-for-sale 299,582 299,582 315,220 315,220 Loans held for sale 3,346 3,346 4,281 4,281 Loans, net 363,344 371,433 366,539 372,869 Derivative assets 1,325 1,325 1,101 1,101 Financial Liabilities: Deposits $ 619,552 $ 624,835 $ 607,127 $ 615,300 Short-term borrowings 2,805 2,805 2,685 2,685 Long-term debt 85,313 93,360 93,331 99,505 Derivative liabilities 1,325 1,325 1,101 1,101 (Dollars in thousands) Amount Loans outstanding at December 31, 2010 $ 4,048 New loans/advances 4,749 Repayments (3,347) Loans outstanding at December 31, 2011 $ 5,450 page 74 During 2011 and 2010, certain executive officers and directors of the Company and the Bank, including companies  with which they are affiliated, were deposit customers of the bank. Total deposits for these persons at December 31, 2011  and 2010 amounted to $18.4 million and $18.7 million, respectively. The Bank has made, and expects in the future to continue to make in the ordinary course of business, loans to directors  and executive officers of the Company, the Bank, and their affiliates. In management’s opinion, these loans were made in the  ordinary course of business at normal credit terms, including interest rate and collateral requirements, and do not represent  more than normal credit risk. An analysis of such outstanding loans is presented below. Another executive officer and director of the Company is the owner of a heating and air conditioning company that the  Company contracted with during 2011 for the replacement and improvement of the heating and cooling systems in the  Bank’s 23,000 square foot operations center. Total payments made to the heating and air conditioning company under the  terms of the contract were $200 thousand for the year ended December 31, 2011. A director of the Company is an officer in a construction company that the Company contracted with during 2011 and  2008 for the construction of two new branch facilities. Total payments made to the construction company under the terms of  the construction contracts were $844 thousand and $587 thousand for the years ended December 31, 2011 and December 31,  2009, respectively. No payments were made to the construction company for the year ended December 31, 2010.  The carrying value and related estimated fair value of the Company’s financial instruments at December 31, 2011 and  2010 are presented below. The fair values of the Company’s off-balance-sheet financial instruments are based on fees charged to enter into similar  agreements. However, commitments to extend credit do not represent a significant value to the Company until such  commitments are funded. The Company has determined that the estimated fair value of commitments to extend credit  approximates the carrying amount and is immaterial to the financial statements. From time to time, the Company enters into interest rate swaps to meet the financing, interest rate and equity risk  management needs of its customers. The carrying amounts of these derivative instruments represent their fair value.