Consolidated Statements of Income (USD $) In Thousands, except Per Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Interest income
Loans, including fees	$ 9,483	$ 9,691	$ 18,825	$ 19,242
Interest and dividends on investments: Taxable interest	635	758	1,218	1,628
Interest and dividends on investments: Tax exempt interest	330	397	674	869
Interest and dividends on investments: Dividend income	26	10	51	27
Deposits and obligations of other banks	19	10	25	16
Total interest income	10,493	10,866	20,793	21,782
Interest expense
Deposits	1,755	2,204	3,424	4,563
Securities sold under agreements to repurchase	39	40	73	77
Short-term borrowings			1
Long-term debt	614	977	1,315	1,951
Total interest expense	2,408	3,221	4,813	6,591
Net interest income	8,085	7,645	15,980	15,191
Provision for loan losses	1,767	625	2,667	1,250
Net interest income after provision for loan losses	6,318	7,020	13,313	13,941
Noninterest income
Investment and trust services fees	1,058	1,007	1,990	2,024
Loan service charges	231	272	712	469
Mortgage banking activities	(45)	11	(35)	81
Deposit service charges and fees	597	593	1,134	1,171
Other service charges and fees	384	351	745	677
Increase in cash surrender value of life insurance	175	166	340	332
Other	81	22	106	70
OTTI losses on securities	(370)		(370)	(689)
Loss recognized in other comprehensive income (before taxes)	(315)		(315)	(434)
Net OTTI losses recognized in earnings	(55)		(55)	(255)
Securities gains, net		20	11	268
Total noninterest income	2,426	2,442	4,948	4,837
Noninterest Expense
Salaries and benefits	3,883	3,322	7,596	6,762
Net occupancy expense	496	496	1,028	1,019
Furniture and equipment expense	214	191	437	382
Advertising	351	283	643	583
Legal and professional fees	244	350	515	745
Data processing	487	502	868	879
Pennsylvania bank shares tax	173	152	337	308
Intangible amortization	111	114	224	229
FDIC insurance	256	288	567	580
Other	1,218	827	2,239	1,699
Total noninterest expense	7,433	6,525	14,454	13,186
Income before federal income taxes	1,311	2,937	3,807	5,592
Federal income tax (benefit) expense	(447)	778	199	1,459
Net income	1,758	2,159	3,608	4,133
Per share
Basic earnings per share	$ 0.45	$ 0.56	$ 0.92	$ 1.07
Diluted earnings per share	$ 0.45	$ 0.56	$ 0.92	$ 1.07
Cash dividends declared per share	$ 0.27	$ 0.27	$ 0.54	$ 0.54
The components of comprehensive income and related tax effedts are as follows:
Net income	1,758	2,159	3,608	4,133
Securities:
Unrealized gains (losses) arising during the period	1,254	(690)	1,992	744
Reclassification adjustment for losses (gains) included in net income	55	(20)	44	(13)
Net unrealized gains (losses)	1,309	(710)	2,036	731
Tax effect	(445)	241	(693)	(249)
Net of tax amount	864	(469)	1,343	482
Derivatives:
Unrealized (losses) gains arising during the period	(344)	(677)	(279)	(1,015)
Reclassification adjustment for losses included in net income	180	174	356	354
Net unrealized (losses) gains	(164)	(503)	77	(661)
Tax effect	56	171	(27)	226
Net of tax amount	(108)	(332)	50	(435)
Pension:
Change in plan assets and benefit obligations				(191)
Net unrealized losses				(191)
Tax effect				65
Net of tax amount				(126)
Total other comprehensive income (loss)	756	(801)	1,393	(79)
Total Comprehensive Income	$ 2,514	$ 1,358	$ 5,001	$ 4,054