FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2012

FAIR VALUE [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at  June 30, 2012 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)
Available for sale
Mortgage-backed securities
U. S. agency MBS - residential	$	44,022	$	-	$	44,022	$	-
U. S. agency CMO's - residential		217,082		-		217,082		-
Total mortgage-backed securities of government sponsored agencies		261,104		-		261,104		-
U. S. government sponsored agency securities		29,247		-		29,247		-
Obligations of states and political subdivisions		9,569		-		9,429		140
Other securities		5,448		-		5,448		-
Total available for sale	$	305,368	$	-	$	305,228	$	140

			Fair Value Measurements at  December 31, 2011 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)
Available for sale
Mortgage-backed securities
U. S. agency MBS - residential	$	40,255	$	-	$	40,255	$	-
U. S. agency CMO's - residential		205,738		-		205,738		-
Total mortgage-backed securities of government sponsored agencies		245,993		-		245,993		-
U. S. government sponsored agency securities		18,141		-		18,141		-
Obligations of states and political subdivisions		9,650		-		9,510		140
Other securities		4,695		-		4,695		-
Total available for sale	$	278,479	$	-	$	278,339	$	140

Carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2012 were as follows:

				Fair Value Measurements at June 30, 2012 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	85,192		$	85,192		$	-		$	-	$	85,192
Federal funds sold		12,022			12,022			-			-		12,022
Securities available for sale		305,368			-			305,228			140		305,368
Loans held for sale		221			-			221			-		221
Loans, net		660,406			-			-			657,902		657,902
Federal Home Loan Bank stock		4,405			n/a			n/a			n/a		n/a
Interest receivable		3,448			-			950			2,498		3,448
Financial liabilities
Deposits	$	(949,871	)	$	(571,632	)	$	(382,675	)	$	-	$	(954,307	)
Securities sold under agreements to repurchase		(19,707	)		-			(19,707	)-		-		(19,707	)
Federal Home Loan Bank advances		(6	)		-			(6	)		-		(6	)
Other borrowed funds		(17,094	)		-			(17,066	)		-		(17,066	)
Interest payable		(596	)		(6	)		(590	)		-		(596	)

The carrying amounts and estimated fair values of financial instruments at December 31, 2011 were as follows:

	Carrying Amount			Fair Value
Financial assets
Cash and due from banks	$	72,056		$	72,056
Federal funds sold		10,832			10,832
Securities available for sale		278,479			278,479
Loans held for sale		70			70
Loans, net		681,128			675,616
Federal Home Loan Bank stock		5,216			n/a
Interest receivable		3,497			3,497
Financial liabilities
Deposits	$	(925,078	)	$	(929,796	)
Securities sold under agreements to repurchase		(23,205	)		(23,205	)
Federal Home Loan Bank advances		(10,083	)		(10,141	)
Other borrowed funds		(18,130	)		(18,101	)
Interest payable		(712	)		(712	)

Assets and liabilities measured at fair value on a non-recurring basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at June 30, 2012 Using
	June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Residential Real Estate	$	4,503	$	-	$	-	$	4,503
Commercial Real Estate
Owner Occupied		502		-		-		502
Non-owner Occupied		1,255		-		-		1,255
Commercial and Industrial		7,654		-		-		7,654
All Other		497		-		-		497
Total impaired loans		14,411	$	-	$	-	$	14,411
Other real estate owned:
Residential Real Estate	$	265	$	-	$	-	$	265
Commercial Real Estate
Owner Occupied		100		-		-		100
Non-owner Occupied		2,931		-		-		2,931
All Other		224		-		-		224
Total OREO	$	3,520	$	-	$	-	$	3,520

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at December 31, 2011 Using
	Dec 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Residential Real Estate	$	4,297	$	-	$	-	$	4,297
Commercial Real Estate
Owner Occupied		1,168		-		-		1,168
Non-owner Occupied		1,269		-		-		1,269
Commercial and Industrial		1,038		-		-		1,038
All Other		4,386		-		-		4,386
Total impaired loans		12,158	$	-	$	-	$	12,158
Other real estate owned:
Residential Real Estate	$	1,608	$	-	$	-	$	1,608
Commercial Real Estate
Owner Occupied		701		-		-		701
Non-owner Occupied		2,931		-		-		2,931
Commercial and Industrial		55		-		-		55
All Other		8,788		-		-		8,788
Total OREO	$	14,083	$	-	$	-	$	14,083

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

Assets and Liabilities measured at fair value on a non-recurring basis are summarized below:

	June 30, 2012		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Residential Real Estate	$	4,503	sales comparison	adjustment for differences between the comparable sales		0.8%-49.9% (8.7%)
Commercial Real Estate
Owner Occupied		502	sales comparison	adjustment for limited saleablity of specialized property		40.0%-70.0% (44.1%)
Non-owner Occupied		1,255	sales comparison	adjustment for differences between the comparable sales		10.0%-59.0% (37.5%)
			income approach	capitalization rate		9.50%
Commercial and Industrial		7,654	sales comparison	adjustment for differences between the comparable sales		0.0%-43.3% (36.4%)
All Other		497	sales comparison	adjustment for percentage of completion of construction		35.0%-91.4% (38.4%)
Total impaired loans	$	14,411
Other real estate owned:
Residential Real Estate	$	265	sales comparison	adjustment for differences between the comparable sales		26.1%-47.8% (35.2%)
Commercial Real Estate
Owner Occupied		100	sales comparison	adjustment for estimated realizable value		17.9%-17.9% (17.9%)
Non-owner Occupied		2,931	sales comparison	adjustment for differences between the comparable sales		0.0%-82.7% (17.5%)
All Other		224	sales comparison	adjustment for estimated realizable value		0.0%-49.7% (23.8%)
Total OREO	$	3,250