SECURITIES

9 Months Ended

Sep. 30, 2011

Investments, Debt and Equity Securities [Abstract]

SECURITIES

NOTE 3 – SECURITIES

The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at September 30, 2011 and December 31, 2010 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Securities Available for Sale	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized Losses			Estimated Fair Value
September 30, 2011
U.S. Treasury securities	$	14,525	$	8	$	----		$	14,533
U.S. Government sponsored entity securities		2,501		88		----			2,589
Obligations of states and political subdivisions		703		----		(26	)		677
Agency mortgage-backed securities, residential		66,460		1,782		----			68,242
Total securities	$	84,189	$	1,878	$	(26	)	$	86,041
December 31, 2010
U.S. Treasury securities	$	17,081	$	6	$	(8	)	$	17,079
U.S. Government sponsored entity securities		7,513		230		(12	)		7,731
Agency mortgage-backed securities, residential		60,916		383		(270	)		61,029
Total securities	$	85,510	$	619	$	(290	)	$	85,839

Securities Held to Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Estimated Fair Value
September 30, 2011
Obligations of states and political subdivisions	$	21,110	$	463	$	(584	)	$	20,989
Agency mortgage-backed securities, residential		24		----		----			24
Total securities	$	21,134	$	463	$	(584	)	$	21,013
December 31, 2010
Obligations of states and political subdivisions	$	22,149	$	130	$	(1,109	)	$	21,170
Agency mortgage-backed securities, residential		29		----		(1	)		28
Total securities	$	22,178	$	130	$	(1,110	)	$	21,198

The amortized cost and estimated fair value of the investment securities portfolio at September 30, 2011, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities.  Securities not due at a single maturity are shown separately.

	Available for Sale				Held to Maturity
Debt Securities:	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	17,026	$	17,122	$	556	$	558
Due in one to five years		----		----		5,042		4,946
Due in five to ten years		703		677		7,529		7,692
Due after ten years		----		----		7,983		7,793
Agency mortgage-backed securities, residential		66,460		68,242		24		24
Total debt securities	$	84,189	$	86,041	$	21,134	$	21,013

The following table summarizes the investment securities with unrealized losses at September 30, 2011 and December 31, 2010 by aggregated major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months						12 Months or More				Total
September 30, 2011		Fair Value		Unrealized Loss			Fair Value		Unrealized  Loss		Fair Value		Unrealized  Loss
Securities Available for Sale
Obligations of states and
political subdivisions		$	677	$	(26	)	$	----	$	----	$	677	$	(26	)
Total available for sale		$	677	$	(26	)	$	----	$	----	$	677	$	(26	)

	Less Than 12 Months					12 Months or More					Total
		Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss
Securities Held to Maturity
Obligations of states and
political subdivisions		$	----	$	----	$	3,547	$	(584	)	$	3,547	$	(584	)
Total held to maturity		$	----	$	----	$	3,547	$	(584	)	$	3,547	$	(584	)

 Less Than 12 Months 12 Months or More Total

December 31, 2010	Fair Value		Unrealized Loss			Fair Value		Unrealized  Loss		Fair Value		Unrealized  Loss
Securities Available for Sale
U.S. Treasury securities	$	9,041	$	(8	)	$	----	$	----	$	9,041	$	(8	)
U.S. Government sponsored
entity securities		1,990		(12	)		----		----		1,990		(12	)
Agency mortgage-backed
securities, residential		27,953		(270	)		----		----		27,953		(270	)
Total available for sale	$	38,984	$	(290	)	$	----	$	----	$	38,984	$	(290	)

	Less Than 12 Months						12 Months or More					Total
		Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss
Securities Held to Maturity
Obligations of states and
political subdivisions		$	7,510	$	(690	)	$	970	$	(419	)	$	8,480	$	(1,109	)
Agency mortgage-backed
securities, residential			----		----			21		(1	)		21		(1	)
Total held to maturity		$	7,510	$	(690	)	$	991	$	(420	)	$	8,501	$	(1,110	)

Unrealized losses on the Company's debt securities have not been recognized into income because the issuers' securities are of high credit quality and management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery.  Management does not believe any individual unrealized loss at September 30, 2011 represents an other-than-temporary impairment.