CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	9 Months Ended
Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,940	$ 2,909
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Amortization of premiums and accretion of discounts on securities, net	695	666
Depreciation and amortization expense	608	683
Deferred income taxes	(54)	108
Increase in cash value of life insurance	(154)	(164)
Provision for loan losses	1,325	1,470
Loss on sale of securities	8
Proceeds from sales of mortgage loans	18,343	26,245
Mortgage loans originated for sale	(14,270)	(27,840)
Net gain on sale of mortgage loans	(394)	(473)
(Increase) decrease in accrued interest receivable	(47)	100
Decrease in accrued interest payable	(195)	(329)
Net change in other assets/liabilities	499	794
Net Cash Provided By Operating Activities	9,304	4,169
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available for sale	(27,542)	(42,006)
Proceeds from maturities of securities available for sale	14,355	32,304
Proceeds from maturities of securities held to maturity	14	21
Proceeds from sales of securities available for sale	1,399	0
Principal collected on mortgage-backed obligations	7,124	9,661
Net decrease in loans receivable	7,389	7,885
Proceeds from sale of foreclosed real estate	559	798
Proceeds from redemption of Federal Home Loan Bank stock	374	0
Purchase of premises and equipment	(323)	(194)
Net Cash Provided By Investing Activities	3,349	8,469
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(15,878)	(4,703)
Net increase in retail repurchase agreements	496	1,274
Net decrease in advances from Federal Home Loan Bank	(2,379)	(2,047)
Exercise of stock options	0	282
Purchase of treasury stock	(27)	(43)
Dividends paid	(1,602)	(1,547)
Net Cash Used In Financing Activities	(19,390)	(6,784)
Net Increase (Decrease) in Cash and Cash Equivalents	(6,737)	5,854
Cash and cash equivalents at beginning of period	21,575	15,857
Cash and Cash Equivalents at End of Period	$ 14,838	$ 21,711

The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 28

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585