FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2012

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities

	Fair Value Measurements at September 30, 2012 Using Significant Other Observable Inputs (Level 2)
Financial Assets:
Securities available for sale:
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities—residential	$	1,671
Collateralized mortgage obligations		12,629
Total securities available for sale	$	14,300
Loans held for sale	$	2,571
Yield maintenance provisions (embedded derivatives)	$	1,054
Interest rate lock commitments	$	45
Financial Liabilities:
Interest-rate swaps	$	1,054

	Fair Value Measurements at December 31, 2011 Using Significant Other Observable Inputs (Level 2)
Financial Assets:
Securities available for sale:
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities—residential	$	1,673
Collateralized mortgage obligations		16,843
Total securities available for sale	$	18,516
Loans held for sale	$	1,210
Yield maintenance provisions (embedded derivatives)	$	999
Interest rate lock commitments	$	39
Financial Liabilities:
Interest-rate swaps	$	999

Assets and liabilities measured at fair value on a non-recurring basis

	Fair Value Measurements at September 30, 2012 Using
	Significant Other Observable  Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Loan servicing rights	$	5
Impaired loans:
Commercial			$	121
Real Estate:
Multi-family residential				3,937
Commercial:
Non-owner occupied				1,839
Owner occupied				1,293
Land				159
Total impaired loans			$	7,349
Foreclosed assets
Real Estate:
Commercial:
Non-owner occupied			$	967
Land				447
Total foreclosed assets			$	1,414

	Fair Value Measurements at December 31, 2011 Using
	Significant Other  Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Loan servicing rights	$	9
Impaired loans:
Commercial			$	108
Real Estate:
Multi-family residential				3,065
Commercial:
Non-owner occupied				2,887
Owner occupied				516
Land				233
Total impaired loans			$	6,809
Foreclosed assets
Real Estate:
Commercial:
Land			$	1,209
Total foreclosed assets			$	1,209

Financial instruments measured at fair value on a non-recurring basis

	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range (Weighted Average)
Impaired loans:
Commercial	$	121	Income approach	Adjustment for differences in net operating income expectations	-10.0%
Commercial real estate:
Multi-family residential		3,937	Comparable sales approach	Adjustment for differences between the comparable market transactions	-39.0% to -27.1% (-32.7%)
Commercial:
Non-owner occupied		1,839	Comparable sales approach	Adjustment for differences between the comparable market transactions	-9.7% to 16.7% (3.2%)
Owner occupied		1,293	Comparable sales approach	Adjustment for differences between the comparable market transactions	-6.3% to 8.1% (5.4%)
Land		159	Income approach	Adjustment for differences in net operating income expectations	0.0%
			Comparable sales approach	Adjustment for differences between the comparable market transactions	8.1%
Foreclosed assets:
Real-estate
Commercial:
Non-owner occupied		967	Market approach	See note (1)	0.0%
Land		447	Comparable sales approach	Adjustment for differences between the comparable market transactions	-31.7%

Aggregate fair value, contractual balance (including accrued interest) and gain or loss

	September 30, 2012		December 31, 2011
Aggregate fair value	$	2,571	$	1,210
Contractual balance		2,544		1,196
Gain		27		14

Amount of gains and losses from changes in fair value included in earnings

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Interest income	$	15	$	11	$	34	$	29
Interest expense		—		—		—		—
Change in fair value		9		20		13		8
Total change in fair value	$	24	$	31	$	47	$	37

Carrying amounts and estimated fair values of financial instruments

	Fair Value Measurements at September 30, 2012 Using:
	Carrying Value			Level 1			Level 2			Level 3		Total
Financial assets
Cash and cash equivalents	$	65,147		$	65,147		$	—		$	—	$	65,147
Interest-bearing deposits in other financial institutions		1,984			1,984						—		1,984
Securities available for sale		14,300			—			14,300			—		14,300
Loans held for sale		2,571			—			2,571			—		2,571
Loans, net		122,940			—			—			126,360		126,360
FHLB stock		1,942			—			—			—		n/a
Accrued interest receivable		68			11			57			—		68
Yield maintenance provisions (embedded derivatives)		1,054			—			1,054			—		1,054
Interest rate lock commitments		45			—			45			—		45
Financial liabilities
Deposits	$	(179,578	)	$	(76,931	)	$	(104,763	)	$	—	$	(181,694	)
FHLB advances		(10,000	)		—			(10,403	)		—		(10,403	)
Subordinated debentures		(5,155	)		—			(3,071	)		—		(3,071	)
Accrued interest payable		(451	)		—			(451	)		—		(451	)
Interest-rate swaps		(1,054	)		—			(1,054	)		—		(1,054	)

The carrying amounts and estimated fair values of financial instruments at December 31, 2011 were as follows:

	December 31, 2011
	Carrying			Fair
	Amount			Value
Financial assets
Cash and cash equivalents	$	61,436		$	61,436
Interest-bearing deposits in other financial institutions		1,984			1,984
Securities available for sale		18,516			18,516
Loans held for sale		1,210			1,210
Loans, net		151,160			155,159
FHLB stock		1,942			n/a
Accrued interest receivable		92			92
Yield maintenance provisions (embedded derivatives)		999			999
Interest rate lock commitments		39			39
Financial liabilities
Deposits	$	(217,049	)	$	(219,235	)
FHLB advances		(15,742	)		(16,327	)
Subordinated debentures		(5,155	)		(2,810	)
Accrued interest payable		(300	)		(300	)
Interest-rate swaps		(999	)		(999	)