SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2012

Summary Of Significant Accounting Policies Tables

Schedule of stock option plans, changes in options outstanding

For the Corporation’s stock option plans, changes in options outstanding during the nine months ended September 30, 2012 were as follows:

						Weighted
				Weighted		Average		Aggregate
				Average		Remaining		Intrinsic
	Number of			Exercise		Contractual		Value
	Options			Price		Term		(In Thousands)
Balance, January 1, 2012		577,782		$	23.45
Granted during 2012		62,560			11.01
Exercised during 2012		(2,190	)		11.10
Expired during 2012		(12,338	)		25.51
Forfeited during 2012		(1,018	)		15.02
Balance, September 30, 2012		624,796		$	22.22		4.27 years	$	591
Vested and expected to vest (1)		594,387		$	22.71		4.27 years	$	513
Exercisable at September 30, 2012		455,858		$	25.57		2.80 years	$	80

(1) Does not include shares which are not expected to vest as a result of anticipated forfeitures.

Schedule of weighted average assumption

For the third quarter of 2012, the per share weighted-average fair value of stock options granted was $5.29 as compared to $3.68 for the same quarter of 2011. The per share weighted-average fair value of stock options granted during the first nine months of 2012 and 2011 was $3.91 and $3.88, respectively on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Dividend Yield		1.24	%		2.02	%		1.47	%		1.60	%
Expected volatility		39	%		38	%		39	%		32	%
Expected life		7 years			7 years			7 years			7 years
Risk-free interest rate		1.08	%		2.02	%		1.43	%		2.08	%

Schedule of Changes in nonvested shares

Changes in non-vested, restricted common shares for 2012 were as follows:

				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Balance, January 1, 2012		84,725		$	13.46
Granted during 2012		36,263			10.72
Vested during 2012		(22,393	)		10.75
Balance, September 30, 2012		98,595		$	13.07

Schedule of reconciliation of the calculation of basic and diluted earnings per share

The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per common share is calculated by dividing net income available to common shareholders by the weighted average common shares outstanding during the reporting period. Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all common shares underlying potentially dilutive stock options were issued or restricted stock would vest during the reporting period utilizing the Treasury stock method.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands, except per share data)	2012		2011		2012		2011
Net income to common shareholders	$	2,832	$	5,113	$	8,164	$	8,633
Basic weighted-average common shares outstanding		8,778,649		8,742,955		8,775,022		8,739,482
Plus:  common stock equivalents		40,782		110		30,837		1,620
Diluted weighted-average common shares outstanding		8,819,431		8,743,065		8,805,859		8,741,102
Net income per common share
Basic	$	0.32	$	0.58	$	0.93	$	0.98
Diluted		0.32		0.58		0.93		0.98