CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,683	$ 2,940
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	721	695
Depreciation and amortization expense	576	608
Deferred income taxes	(508)	(54)
Increase in cash value of life insurance	(138)	(154)
Provision for loan losses	1,125	1,325
(Gain) loss on sale of securities	(29)	8
Proceeds from sales of loans	29,144	18,343
Loans originated for sale	(27,829)	(14,270)
Gain on sale of loans	(712)	(394)
(Increase) decrease in accrued interest receivable	19	(47)
Decrease in accrued interest payable	(93)	(195)
Net change in other assets/liabilities	1,668	499
Net Cash Provided By Operating Activities	6,627	9,304
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available for sale	(54,833)	(27,542)
Proceeds from maturities of securities available for sale	27,825	14,355
Proceeds from maturities of securities held to maturity	0	14
Proceeds from sales of securities available for sale	2,927	1,399
Principal collected on mortgage-backed obligations	11,632	7,124
Net (increase) decrease in loans receivable	(6,693)	7,389
Proceeds from sale of foreclosed real estate	889	559
Proceeds from redemption of Federal Home Loan Bank stock	0	374
Purchase of premises and equipment	(416)	(323)
Net Cash Provided By (Used In) Investing Activities	(18,669)	3,349
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	19,693	(15,878)
Net increase (decrease) in advances from Federal Home Loan Bank	(2,250)	496
Net decrease in retail repurchase agreements	(13)	(2,379)
Purchase of treasury stock	(14)	(27)
Dividends paid	(1,602)	(1,602)
Net Cash Provided By (Used In) Financing Activities	15,814	(19,390)
Net Increase (Decrease) in Cash and Cash Equivalents	3,772	(6,737)
Cash and cash equivalents at beginning of period	18,923	21,575
Cash and Cash Equivalents at End of Period	$ 22,695	$ 14,838

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 Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

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

Reference 2: 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.