FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2012

Assets and liabilities measured at fair value on a recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2012.

	(in thousands)
June 30, 2012	Total		Level 1		Level 2		Level 3
U.S. Treasury securities	$	2,058	$	2,058	$	-	$	-
Securities of U.S. government
agencies and corporations		27,560		-		27,560		-
Obligations of states and
political subdivisions		27,662		-		27,662		-
Collateralized mortgage obligations		5,304		-		5,304
Mortgage-backed securities		120,746		-		120,746		-

Total investments at fair value	$	183,330	$	2,058	$	181,272	$	-

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2011.

	(in thousands)
December 31, 2011	Total		Level 1		Level 2		Level 3
U.S. Treasury securities	$	2,314	$	2,314	$	-	$	-
Securities of U.S. government
agencies and corporations		37,014		-		37,014		-
Obligations of states and
political subdivisions		20,617		-		20,617		-
Mortgage-backed securities		100,296		-		100,296		-

Total investments at fair value	$	160,241	$	2,314	$	157,927	$	-

Assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of June 30, 2012.

	(in thousands)
June 30, 2012	Total		Level 1		Level 2		Level 3
Impaired loans	$	5,799	$	-	$	-	$	5,799
Loan servicing rights		1,301		-		-		1,301

Total assets at fair value	$	7,100	$	-	$	-	$	7,100

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2011.

	(in thousands)
December 31, 2011	Total		Level 1		Level 2		Level 3
Impaired loans	$	4,008	$	-	$	-	$	4,008
Other real estate owned		1,001		-		-		1,001
Loan servicing rights		1,289		-		-		1,289

Total assets at fair value	$	6,298	$	-	$	-	$	6,298

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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