FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on Recurring Basis

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of September 30,2012 and December 31, 2011 (in thousands):

September 30, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of
U. S. Government Agencies	$	46,712	$	-	$	46,712	$	-
Municipal securities		99,783		-		99,783		-
Mortgage-backed securities		64,557		-		64,557		-
Corporate obligations		21,596		-		18,665		2,931
Other		973		973		-		-
Total	$	233,621	$	973	$	229,717	$	2,931

December 31, 2011

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of
U. S. Government Agencies	$	43,673	$	-	$	43,673	$	-
Municipal securities		94,259		-		94,259		-
Mortgage-backed securities		59,330		-		59,330		-
Corporate obligations		14,293		-		12,041		2,252
Other		974		974		-		-
Total	$	212,529	$	974	$	209,303	$	2,252

Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)	Bank-Issued Trust Preferred Securities
	2012		2011
Balance, January 1	$	2,252	$	2,619
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		(4	)
Unrealized gain (loss) included in comprehensive income		679		(363	)
Balance at September 30, 2012 and December 31, 2011	$	2,931	$	2,252

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2012 and December 31, 2011.

September 30, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	3,135	$	-	$	3,135	$	-
Other real estate owned		8,008		-		8,008		-

December 31, 2011

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	5,125	$	-	$	5,125	$	-
Other real estate owned		4,353		-		4,353		-

Financial Instruments with No Distinguishable Fair Value

	As of				As of
	September 30, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	36,712	$	36,712	$	23,181	$	23,181
Securities available-for-sale		233,621		233,621		212,529		212,529
Securities held-to-maturity		8,478		9,996		6,002		6,002
Other securities		2,638		2,638		2,645		2,645
Loans, net		388,560		400,908		383,417		396,905
Liabilities:
Noninterest-bearing deposits	$	110,051	$	110,051	$	107,129	$	107,129
Interest-bearing deposits		511,882		512,258		466,265		467,198
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		16,781		16,781		27,032		27,032