Fair Value Measurement Disclosures

3 Months Ended

Jun. 30, 2012

Fair Value Measurement Disclosures [Abstract]

Fair Value Measurement Disclosures

NOTE 9 – Fair Value Measurement Disclosures

     The following table presents the fair value disclosures of assets and liabilities in accordance with ASC 820-10 which became effective for the Company's consolidated financial statements on April 1, 2008. The fair value hierarchy established by this guidance is based on observable and unobservable inputs participants use to price an asset or liability. ASC 820-10 has prioritized these inputs into the following fair value hierarchy:

     Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that are available at the measurement date.

     Level 2 Inputs – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

     Level 3 Inputs – Unobservable inputs for determining the fair value of the asset or liability and are based on the entity's own assumptions about the assumptions that market participants would use to price the asset or liability.

The following summarizes assets measured at fair value on a recurring basis for the period ending:

		Fair Value Measurements at Reporting date Using:
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable
				Assets		Inputs		Inputs
		Total		Level 1		Level 2		Level 3
June 30, 2012:
Debt securities issued by the U.S.
Treasury and other U.S.
government corporations and
agencies	$	4,611	$	350	$	4,261	$	--
Debt securities issued by states of
the United States and political
subdivisions of the states		26,529		828		25,282		419
Mortgage-backed securities		26,682		--		26,682		--
Total	$	57,822	$	1,178	$	56,225	$	419
March 31, 2012
Debt securities issued by the U.S.
Treasury and other U.S.
government corporations and
agencies	$	6,470	$	1,369	$	5,101	$	--
Debt securities issued by states of
the United States and political
subdivisions of the states		25,361		1,941		23,420		--
Mortgage-backed securities		29,756		10		29,746		--
Total	$	61,587	$	3,320	$	58,267	$	--

     Under certain circumstances we make adjustments to fair value for our assets and liabilities although they are not measured at fair value on an ongoing basis. The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at June 30, 2012, for which a nonrecurring change in fair value has been recorded.

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in			Significant		Significant
			Active Markets for			Other Observable		Unobservable
			Identical Assets			Inputs		Inputs
		Total	Level 1			Level 2		Level 3
				(In thousands)
Impaired loans	$	6,294	$	--	$	--	$	6,294
Other real estate owned		931		--		--		931
Total	$	7,225	$	--	$	--	$	7,225

     The following are the carrying amounts and estimated fair values of the Company's financial assets and liabilities at June 30, 2012:

	June 30, 2012
		Carrying
		Amount	Fair Value
				Level 1		Level 2	Level 3			Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	66,938	$	66,938	$	--	$	--	$	66,938
Available-for-sale securities		57,822		1,178		56,228		416		57,822
Federal Home Loan Bank stock		4,100		4,100		--		--		4,100
Loans, net		559,562		--		--		569,813		569,813
Loans held for sale		140		146		--		--		146
Accrued interest receivable		2,329		2,329		--		--		2,329
Financial liabilities:
Deposits	$	587,488	$	--	$	591,639	$	--	$	591,639
Advanced payments by borrowers for taxes
and insurance		2,830		2,830		--		--		2,830
FHLB advances		32,508		--		34,607		--		34,607
Securities sold under agreements
to repurchase		28,477		-		28,478		--		28,478
Subordinated debentures		3,929		--		1,449		--		1,449
Due to Broker		1,178		1,178		--		--		1,178

     The following are the carrying amounts and estimated fair values of the Company's financial assets and liabilities at March 31, 2012:

	March 31, 2012
		Carrying
		Amount	Fair Value
				Level 1		Level 2	Level 3			Total
						(In thousands)
Financial Assets:
Cash and cash equivalents	$	62,064	$	62,064	$	--	$	--	$	62,064
Available-for-sale securities		61,587		3,320		58,267		--		61,587
Federal Home Loan Bank stock		4,100		4,100		--		--		4,100
Loans, net		552,246		--		--		564,037		564,037
Loans held for sale		--		--		--		--		--
Accrued interest receivable		2,392		2,392		--		--		2,392
Financial liabilities:
Deposits	$	581,268	$	--	$	585,961	$	--	$	585,961
Advanced payments by borrowers for taxes
and insurance		1,504		1,504		--		--		1,504
FHLB advances		33,044		--		35,314		--		35,314
Securities sold under agreements
to repurchase		27,752		-		27,753		--		27,753
Subordinated debentures		3,927		--		1,441		--		1,441
Due to Broker		1,119		1,119		--		--		1,119