FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2012

FAIR VALUE MEASUREMENTS AND DISCLOSURES [Abstract]

Fair Value of Assets on Recurring Basis Segregated by Level of Valuation Inputs

The following tables summarize assets measured at fair value on a recurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value:

	2012
								Total Fair
(In thousands)	Level 1		Level 2			Level 3		Value
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	6,183		$	-	$	6,183
State and political subdivisions		-		27,471			-		27,471
Corporate		-		23,006			-		23,006
Residential mortgage-backed - US agency		-		48,251			-		48,251
Residential mortgage-backed - private label		-		305			-		305
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		1,291		-			-		1,291
Large cap equity fund		1,081		-			-		1,081
Other mutual funds		-		319			-		319
Common stock - financial services industry		33		399			-		432
Total investment securities	$	2,405	$	105,934		$	-	$	108,339
Interest rate swap derivative	$	-	$	(195	)	$	-	$	(195	)

	2011
								Total Fair
(In thousands)	Level 1		Level 2			Level 3		Value
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	5,073		$	-	$	5,073
State and political subdivisions		-		20,304			-		20,304
Corporate		-		20,434			-		20,434
Residential mortgage-backed - US agency		-		51,056			-		51,056
Residential mortgage-backed - private label		-		519			-		519
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		1,298		-			-		1,298
Large cap equity fund		1,024		-			-		1,024
Other mutual funds		-		243			-		243
Common stock - financial services industry		25		419			-		444
Total investment securities	$	2,347	$	98,048		$	-	$	100,395
Interest rate swap derivative	$	-	$	(200	)	$	-	$	(200	)

Summary of Assets Measured at Fair Value on a Nonrecurring Basis Segregated by Level of Valuation Inputs

The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value:

	2012
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	1,951	$	1,951
Foreclosed real estate	$	-	$	-	$	301	$	301

	2011
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	1,608	$	1,608
Foreclosed real estate	$	-	$	-	$	165	$	165

Fair Value Inputs, Quantitative Information

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value.

		Quantitative Information about Level 3 Fair Value Measurements
	Valuation	Unobservable	Range
	Techniques	Input	(Weighted Avg.)
At December 31, 2012
Impaired loans	Appraisal of collateral	Appraisal Adjustments		5% - 30%	(21%)
		Costs to Sell		6% - 15%	(12%)
Foreclosed real estate	Appraisal of collateral	Appraisal Adjustments		15% - 15%	(15%)
		Costs to Sell		6% - 7%	(6%)

Carrying Amounts and Fair Value of Financial Instruments

The carrying amounts and fair values of the Company's financial instruments as of December 31 are presented in the following table:

			2012				2011
	Fair Value		Carrying				Carrying
(Dollars In thousands)	Hierarchy		Amounts		Fair Values		Amounts		Fair Values
Financial assets:
Cash and cash equivalents		1	$	8,665	$	8,665	$	10,218	$	10,218
Interest earning time deposits		1		2,000		2,000		2,000		2,000
Investment securities		1		2,405		2,405		2,347		2,347
Investment securities		2		105,934		105,934		98,048		98,048
Federal Home Loan Bank stock		2		1,929		1,929		1,528		1,528
Net loans		3		329,247		341,389		300,770		310,218
Accrued interest receivable		1		1,717		1,717		1,685		1,685
Financial liabilities:
Demand Deposits, Savings, NOW and MMDA		1	$	228,484	$	228,484	$	214,318	$	214,318
Time Deposits		2		163,321		165,491		151,811		154,836
Borrowings		2		34,964		36,054		26,074		27,322
Junior subordinated debentures		3		5,155		5,155		5,155		5,155
Accrued interest payable		1		140		140		145		145
Interest rate swap derivative		2		195		195		200		200
Off-balance sheet instruments:
Standby letters of credit			$	-	$	-	$	-	$	-
Commitments to extend credit			$	-	$	-	$	-	$	-