COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2011

Comprehensive Income [Abstract]

Comprehensive Income

NOTE 9 - COMPREHENSIVE INCOME

Comprehensive income includes net income and any changes in equity from non-owner sources that are not recorded in the income statement (such as changes in net unrealized gains (losses) on securities).  The purpose of reporting comprehensive income is to report a measure of all changes in equity of an enterprise that result from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners.

The components of comprehensive income are as follows:

	Three months						Nine months
Periods ended September 30, (in thousands)	2011			2010			2011			2010
Net income	$	1,039		$	947		$	2,864		$	2,420
Other comprehensive income
Net unrealized gains on securities available-for-sale		2,544			3,291			6,144			6,600
Reclassification of net realized gains in net income		-			(16	)		11			(16	)
Unrealized gains on securities available-for-sale		2,544			3,275			6,155			6,584
Income tax expense		(865	)		(587	)		(2,093	)		(2,238	)
Unrealized gains on securities available-for-sale, net of tax		1,679			2,688			4,062			4,346
Pension plan income		17			17			50			52
Income tax expense		(6	)		(6	)		(17	)		(18	)
Pension plan income, net of tax		11			11			33			34
Other comprehensive income, net of tax		1,690			2,699			4,095			4,380
Comprehensive income	$	2,729		$	3,646		$	6,959		$	6,800

The components of accumulated other comprehensive losses are as follows:

September 30, (in thousands)	2011			2010
Unrealized losses on securities available-for-sale, net of tax	$	1,480		$	515
Unrecognized pension plan expense, net of tax		(1,154	)		(1,213	)
Accumulated other comprehensive loss, net	$	326		$	(698	)