This excerpt taken from the NHTB 10-Q filed May 14, 2009.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Impaired Loans. Certain impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from collateral. Collateral values are estimated using Level 2 inputs based on appraisals of similar properties obtained from a third party valuation service.
The following summarizes assets measured at fair value for the period ending March 31, 2009.