11. FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2012

	Carrying		Fair Value Measurements Using:
September 30, 2012	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	28,651	$	28,651					$	28,651
Interest-bearing deposits in banks		1,000			$	998				998
Available-for-sale securities		227,906		2		227,904				227,906
Held-to-maturity securities		2,740				2,916				2,916
FHLB stock		3,254		N/A		N/A		N/A		N/A
Net loans and leases:		270,196						267,134		267,134
Accrued interest receivable		1,786						1,786		1,786
Financial liabilities:
Deposits:
Noninterest-bearing	$	137,289	$	137,289					$	137,289
Savings		51,254		51,254						51,254
Money market		126,445		126,445						126,445
NOW accounts		52,254		52,254						52,254
Time, $100,000 or more		72,760				73,507				73,507
Other time		26,723				26,970				26,970
Short-term borrowings		2,000		2,000						2,000
Long-term borrowings		16,000				16,177				16,177
Accrued interest payable		147				147				147

	Carrying		Fair Value Measurements Using:
December 31, 2011	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	23,768	$	23,768					$	23,768
Interest-bearing deposits in banks		1,250			$	1,254				1,254
Available-for-sale securities		208,711		9		208,702				208,711
Held-to-maturity securities		4,010				4,231				4,231
FHLB stock		3,093		N/A		N/A		N/A		N/A
Net loans and leases:		293,731					$	290,505		290,505
Accrued interest receivable		1,952						1,952		1,952
Financial liabilities:
Deposits:
Noninterest-bearing	$	133,440	$	133,440					$	133,440
Savings		47,919		47,919						47,919
Money market		139,244		139,244						139,244
NOW accounts		43,959		43,959						43,959
Time, $100,000 or more		69,464				70,143				70,143
Other time		28,259				28,513				28,513
Short-term borrowings		5,000		5,000						5,000
Long-term borrowings		14,000				14,326				14,326
Accrued interest payable		226				226				226

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

Description			Fair Value Measurements Using						Total Gains
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3		(Losses)
September 30, 2012
Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
Mortgage-backed securities	$	196,430	$	—	$	196,430	$	—	$	—
Obligations of states and political subdivisions		29,857		—		29,857		—		—
Corporate bonds		1,558		—		1,558		—		—
Corporate stock		61		2		59
Total recurring	$	227,906	$	2	$	227,906	$	—	$	—
Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Commercial	$	1,326	$	—	$	—	$	1,326	$	(64	)
Real estate:
Commercial		786		—		—		786		73
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Residential		—		—		—		—		—
Other:
Agriculture		389		—		—		389		276
Consumer		—		—		—		—		—
Other real estate owned		13,681		—		—		13,681		(627	)
Total nonrecurring	$	16,182	$	—	$	—	$	16,182	$	(342	)

Description			Fair Value Measurements Using						Total Gains
(dollars in thousands)	Fair Value		Level 1		Level 2			Level 3	(Losses)
December 31, 2011
Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
Mortgage-backed securities	$	179,454	$	—	$	179,454	$	—	$	—
Obligations of states and political subdivisions		29,188		—		29,188		—		—
Corporate stock		69		9		60		—		—
Total recurring	$	208,711	$	9	$	208,702	$	—	$	—
Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Commercial	$	1,828	$	—	$	—	$	1,828	$	(181	)
Real estate:
Commercial		7,982		—		—		7,982		(489	)
Construction		2,083		—		—		2,083		(422	)
Other:
Agriculture		597		—		—		597		(330	)
Consumer		565		—		—		565		(66	)
Other real estate owned		8,190		—		—		8,190		(1,002	)
Total nonrecurring	$	21,245	$	—	$	—	$	21,245	$	(2,490	)