California Bank of Commerce NOTES TO FINANCIAL STATEMENTS 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued) 2.  FAIR VALUE MEASUREMENTS In June 2011, the FASB amended existing guidance and eliminated the option to present the  components of other comprehensive income as part of the statement of changes in shareholder’s  equity. The amendment requires that comprehensive income be presented in either a single continuous  statement or in two separate consecutive statements. Early adoption is permitted. The adoption of  this amendment will change the presentation of the components of comprehensive income for the  Bank as part of the statement of changes in shareholder’s equity and comprehensive income. The  guidance will be adopted by the Bank effective for the year ended December 31, 2012. In May, 2011, the FASB issued an amendment to achieve common fair value measurement and  disclosure requirements between U.S. and International accounting principles. Overall, the guidance  is consistent with existing U.S. accounting principles; however, there are some amendments that  change a particular principle or requirement for measuring fair value or for disclosing information about  fair value measurements. The Bank will adopt this guidance effective for the year ended December  31, 2012, and its adoption is not expected to have a material impact on the Bank’s operating results  or financial condition. The estimated carrying and fair values of the Bank’s financial instruments are as follows: December 31, 2011  December 31, 2010  Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents  $ 46,962,082 $ 46,962,082 $ 10,223,291 $ 10,223,291  Investment  securities  36,349,666 36,349,666 50,359,618 50,359,618  Loans  held  for  sale  372,173 373,062 1,390,100 1,395,653 Loans, net   203,572,096 230,720,589 170,073,533 189,012,475 Federal Home Loan Bank stock  1,178,200 N/A 846,000 N/A The Independent Banker’s Bank  stock  50,419 N/A 50,419 N/A Pacific Coast Banker’s Bank  stock  190,000 N/A 190,000 N/A  Accrued  interest  receivable  979,809 979,809 795,475 795,475 Financial liabilities: Deposits   243,903,390 243,684,501 183,616,664 183,524,127  Other  borrowings  18,000,000 17,462,090 28,000,000 27,641,054  Accrued  interest  payable  59,853 59,853 7,962 7,962 26 Adoption of New Accounting Standards (Continued) Fair Value of Financial Instruments