10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended        June 30, 2012     

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXHANGE ACT OF 1934

For the transition period from _______________ to _______________________

Commission File Number:   000-27905

MutualFirst Financial, Inc.

(Exact name of registrant specified in its charter)

Maryland	35-2085640
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
110 East Charles Street, Muncie, Indiana	47305
(Address of principal executive offices)	(Zip Code)

(765) 747-2800

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
  Yes ¨   No x

As of August 13, 2012, there were 6,992,029 shares of the registrant’s common stock outstanding.

This Form 10-Q/A (Amendment No. 1) amends the Quarterly Report on Form 10-Q of MutualFirst Financial, Inc. (the “Company”) for the quarter ended June 30, 2012 which was originally filed with the Securities and Exchange Commission on August 14, 2012, for the sole purpose of furnishing the Interactive Data File as Exhibit 101 in accordance with Rule 405(a)(2) of Regulation S-T.

No other changes have been made to the Form 10-Q for the period ended June 30, 2012.  This Form 10-Q/A speaks as of the original filing date of the Form 10-Q, does not reflect any events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures in the Form 10-Q.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  September 13, 2012	By:	/s/David W. Heeter
		David W. Heeter
		President and Chief Executive Officer
Date:  September 13, 2012	By:	/s/Christopher D. Cook
		Christopher D. Cook
		Senior Vice President, Treasurer and Chief Financial Officer

2

INDEX TO EXHIBITS

Number	Description
31.1	Rule 13(a)-14(a) Certification (Chief Executive Officer)
31.2	Rule 13(a)-14(a) Certification (Chief Financial Officer)
32	Section 1350 Certification
101	Financial Statements from the Company’s Form 10-Q for the year ended June 30, 2012, formatted in Extensive Business Reporting Language (XBRL); (i) Consolidated Condensed Balance Sheets as of June 30, 2012 and December 31, 2011; (ii) Consolidated Condensed Statements of Income for the Three and Six Months Ended June 30, 2012 and 2011; (iii) Consolidated Condensed Statement of Stockholders’ Equity for the Period Ended June 30, 2012; (iv) Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011; and (vi) Notes to Consolidated Financial Statements Three and Six Months Ended June 30, 2012 and 2011, as follows:
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

3

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, David W. Heeter, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MutualFirst Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  September 13, 2012	By:	/s/  David W. Heeter
		David W. Heeter
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Christopher D. Cook, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MutualFirst Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  September 13, 2012	By:	/s/  Christopher D. Cook
		Christopher D. Cook
		Senior Vice President, Treasurer and   Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32

EXHIBIT 32

SECTION 1350 CERTIFICATION

Each of the undersigned hereby certifies in his capacity as an officer of MutualFirst Financial, Inc. (the “Registrant”) that the quarterly report of the Registrant on Form 10-Q for the period ended June 30, 2012, fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the consolidated financial condition of the Registrant at the end of such period and the results of operations of the Registrant for such period.

Date:  September 13, 2012	By:	/s/David W. Heeter
		David W. Heeter
		President and Chief Executive Officer
Date:  September 13, 2012	By:	/s/Christopher D. Cook
		Christopher D. Cook
		Senior Vice President, Treasurer and Chief Financial Officer

XML

Non-Accrual Loans Segregated by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 955,868	$ 920,209
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	279,281	282,849
Commercial | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	196,776	197,390
Commercial | Construction and development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	18,226	20,831
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	64,279	64,628
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	478,481	434,976
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	198,106	202,384
Consumer loans | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	96,391	96,864
Consumer loans | Auto
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	14,482	15,203
Consumer loans | Boat/RV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	80,692	83,557
Consumer loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	6,541	6,760
Non-accrual loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	24,575	30,711
Non-accrual loans | Commercial | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,409	7,592
Non-accrual loans | Commercial | Construction and development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	6,478	9,314
Non-accrual loans | Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,139	1,160
Non-accrual loans | Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	9,732	10,080
Non-accrual loans | Consumer loans | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,956	2,081
Non-accrual loans | Consumer loans | Auto
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	40	24
Non-accrual loans | Consumer loans | Boat/RV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	765	371
Non-accrual loans | Consumer loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 56	$ 89

XML

Borrowings - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Debt Instrument [Line Items]
Repayment of other borrowings	$ 418	$ 395
Other borrowings	12,014		12,410
First Tennessee Bank, N.A.
Debt Instrument [Line Items]
Other borrowings	8,000
Subordinated debenture
Debt Instrument [Line Items]
Other borrowings	$ 4,000

XML

Troubled Debts Restructured (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012 Investment	Jun. 30, 2012 Investment
Commercial | Real estate
Financing Receivable, Modifications [Line Items]
No. of Loans	2	3
Pre-Modification Outstanding Recorded Balance	$ 518	$ 921
Post-Modification Outstanding Recorded Balance	678	1,081
Commercial | Other
Financing Receivable, Modifications [Line Items]
No. of Loans	2	3
Pre-Modification Outstanding Recorded Balance	119	216
Post-Modification Outstanding Recorded Balance	181	277
Residential Mortgage
Financing Receivable, Modifications [Line Items]
No. of Loans	10	19
Pre-Modification Outstanding Recorded Balance	1,008	1,736
Post-Modification Outstanding Recorded Balance	1,110	1,861
Consumer loans | Real estate
Financing Receivable, Modifications [Line Items]
No. of Loans	3	10
Pre-Modification Outstanding Recorded Balance	66	391
Post-Modification Outstanding Recorded Balance	67	393
Consumer loans | Auto
Financing Receivable, Modifications [Line Items]
No. of Loans	1	1
Pre-Modification Outstanding Recorded Balance	8	7
Post-Modification Outstanding Recorded Balance	8	7
Consumer loans | Boat/RV
Financing Receivable, Modifications [Line Items]
No. of Loans	2	3
Pre-Modification Outstanding Recorded Balance	48	58
Post-Modification Outstanding Recorded Balance	48	58
Consumer loans | Other
Financing Receivable, Modifications [Line Items]
No. of Loans	2	2
Pre-Modification Outstanding Recorded Balance	15	16
Post-Modification Outstanding Recorded Balance	$ 14	$ 15

XML

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 2,465	$ 2,924	$ 2,454	$ 2,645
Total realized and unrealized gains and losses
Included in net income				(193)
Included in other comprehensive loss	(201)	21	(178)	475
Purchases, issuances and settlements		13	(12)	31
Ending balance	2,264	2,958	2,264	2,958
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date				$ (193)

XML

Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Security obligations due, amortized cost, One to five years	$ 20,888
Security obligations due, amortized cost, Five to ten years	5,001
Security obligations due, amortized cost, After ten years	7,925
Total security obligations due	33,814
Available for sale, Amortized Cost	359,070	328,001
Security obligations due, Fair value, One to five years	20,941
Security obligations due, Fair value, Five to ten years	5,123
Security obligations due, Fair value, After ten years	3,571
Total Security obligations due, Fair value	29,635
Available for sale, Fair Value	365,396	330,878
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	208,737
Available for sale, Fair Value	215,667
Collateralized mortgage obligations
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	116,509
Available for sale, Fair Value	120,084
Small Business Administration
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	10	12
Available for sale, Fair Value	$ 10	$ 12

XML

Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Recorded Balance	$ 5,523		$ 6,966
Unpaid Principal Balance	7,742		7,764
Specific Allowance	43		209
Average Investment in Impaired Loans	6,338	5,665	5,307
Interest Income Recognized	109	73	211
Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Recorded Balance	9,591		12,943
Unpaid Principal Balance	13,042		19,082
Specific Allowance	1,296		1,437
Average Investment in Impaired Loans	11,273	13,738	13,226
Interest Income Recognized	60	164	581
Commercial | Other
Financing Receivable, Impaired [Line Items]
Recorded Balance	4,323		5,500
Unpaid Principal Balance	4,323		5,691
Specific Allowance	318		543
Average Investment in Impaired Loans	4,894	757	1,726
Interest Income Recognized	108		271
Residential Mortgage
Financing Receivable, Impaired [Line Items]
Recorded Balance	3,798		5,915
Unpaid Principal Balance	4,886		7,407
Specific Allowance	36		36
Average Investment in Impaired Loans	4,713	5,998	5,599
Interest Income Recognized	51	75	178
Quarter | Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	6,024	4,418
Interest Income Recognized	61	35
Quarter | Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	10,439	12,647
Interest Income Recognized	33	64
Quarter | Commercial | Other
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	4,592	754
Interest Income Recognized	55
Quarter | Residential Mortgage
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	4,111	5,690
Interest Income Recognized	20	29
Loans without a specific valuation allowance | Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Recorded Balance	5,005		4,883
Unpaid Principal Balance	7,224		5,275
Average Investment in Impaired Loans	6,165	3,611	4,221
Interest Income Recognized	109	30	137
Loans without a specific valuation allowance | Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Recorded Balance	3,082		5,872
Unpaid Principal Balance	5,992		11,801
Average Investment in Impaired Loans	4,531	5,983	9,451
Interest Income Recognized	33	9	348
Loans without a specific valuation allowance | Commercial | Other
Financing Receivable, Impaired [Line Items]
Recorded Balance	3,119		4,030
Unpaid Principal Balance	3,119		4,167
Average Investment in Impaired Loans	3,679	757	1,480
Interest Income Recognized	83		211
Loans without a specific valuation allowance | Residential Mortgage
Financing Receivable, Impaired [Line Items]
Recorded Balance	3,267		5,378
Unpaid Principal Balance	4,355		6,870
Average Investment in Impaired Loans	4,179	5,490	5,532
Interest Income Recognized	51	68	142
Loans without a specific valuation allowance | Quarter | Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	5,765	2,277
Interest Income Recognized	61	14
Loans without a specific valuation allowance | Quarter | Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	3,755	4,992
Interest Income Recognized	17
Loans without a specific valuation allowance | Quarter | Commercial | Other
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	3,380	754
Interest Income Recognized	42
Loans without a specific valuation allowance | Quarter | Residential Mortgage
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	3,579	5,182
Interest Income Recognized	20	27
Loans with a specific valuation allowance | Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Recorded Balance	518		2,083
Unpaid Principal Balance	518		2,489
Specific Allowance	43		209
Average Investment in Impaired Loans	173	2,054	1,086
Interest Income Recognized		43	74
Loans with a specific valuation allowance | Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Recorded Balance	6,509		7,071
Unpaid Principal Balance	7,050		7,281
Specific Allowance	1,296		1,437
Average Investment in Impaired Loans	6,742	7,755	3,775
Interest Income Recognized	27	155	233
Loans with a specific valuation allowance | Commercial | Other
Financing Receivable, Impaired [Line Items]
Recorded Balance	1,204		1,470
Unpaid Principal Balance	1,204		1,524
Specific Allowance	318		543
Average Investment in Impaired Loans	1,215		246
Interest Income Recognized	25		60
Loans with a specific valuation allowance | Residential Mortgage
Financing Receivable, Impaired [Line Items]
Recorded Balance	531		537
Unpaid Principal Balance	531		537
Specific Allowance	36		36
Average Investment in Impaired Loans	534	508	67
Interest Income Recognized		7	36
Loans with a specific valuation allowance | Quarter | Commercial | Real estate
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	259	2,141
Interest Income Recognized		21
Loans with a specific valuation allowance | Quarter | Commercial | Construction and development
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	6,684	7,655
Interest Income Recognized	16	64
Loans with a specific valuation allowance | Quarter | Commercial | Other
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	1,212
Interest Income Recognized	13
Loans with a specific valuation allowance | Quarter | Residential Mortgage
Financing Receivable, Impaired [Line Items]
Average Investment in Impaired Loans	532	508
Interest Income Recognized		$ 2

XML

Estimated Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Assets, carrying amount
Cash and cash equivalents	$ 23,590	$ 55,223	$ 34,287	$ 26,821
Interest-bearing deposits		1,415
Loans held for sale, carrying amount	8,598	1,441
Loans, carrying amount	938,420	900,460
FHLB stock, carrying amount	14,391	14,391
Interest receivable, carrying amount	3,723	4,248
Liabilities, carrying amount
Deposits, carrying amount	1,171,500	1,166,637
FHLB advances, carrying amount	136,574	101,451
Other borrowings, carrying amount	12,014	12,410
Interest payable, carrying amount	405	340
Advances by borrowers for taxes and insurance, carrying amount	2,013	1,720
Assets
Cash and cash equivalents	23,590	55,223
Interest-bearing deposits		1,415
Loans held for sale, fair value	8,915	1,459
Loans, fair value	972,673	921,212
FHLB stock, fair value	14,391	14,391
Interest receivable, fair value	3,723	4,248
Liabilities, fair value
Deposits, fair value	1,186,807	1,132,031
FHLB advances, fair value	138,119	103,980
Other borrowings, fair value	13,070	13,083
Interest payable, fair value	405	340
Advances by borrowers for taxes and insurance, fair value	2,013	1,720
Fair Value, Inputs, Level 1
Assets
Cash and cash equivalents	23,590
Liabilities, fair value
Deposits, fair value	577,464
Fair Value, Inputs, Level 2
Assets
Loans held for sale, fair value	8,915
FHLB stock, fair value	14,391
Interest receivable, fair value	3,723
Liabilities, fair value
FHLB advances, fair value	138,119
Other borrowings, fair value	13,070
Interest payable, fair value	405
Advances by borrowers for taxes and insurance, fair value	2,013
Fair Value, Inputs, Level 3
Assets
Loans, fair value	972,673
Liabilities, fair value
Deposits, fair value	$ 609,343

XML

Newly Restructured Loans by Type (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Commercial | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term		$ 403
Combination	678	678
Total modification	678	1,081
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term	181	97
Combination		80
Total modification	181	277
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Only		320
Term	71	133
Combination	1,039	1,408
Total modification	1,110	1,861
Consumer loans | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term	22	335
Combination	45	58
Total modification	67	393
Consumer loans | Auto
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term	8	7
Total modification	8	7
Consumer loans | Boat/RV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term	48	58
Total modification	48	58
Consumer loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term	8	8
Combination	6	7
Total modification	$ 14	$ 15

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation

Note 1:  Basis of Presentation

The consolidated condensed financial statements include the accounts of MutualFirst Financial, Inc. (MutualFirst or the “Company”), its wholly owned subsidiary MutualBank, an Indiana commercial bank (“Mutual” or the “Bank”), Mutual’s wholly owned subsidiaries, First MFSB Corporation, Mishawaka Financial Services, and Mutual Federal Investment Company (“MFIC”), and MFIC majority owned subsidiary, Mutual Federal REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation.

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for year ended December 31, 2011, filed with the Securities and Exchange Commission on March 16, 2012.

The interim consolidated financial statements at June 30, 2012, have not been audited by independent accountants, but in the opinion of management, reflect all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for such periods. The results of operations for the period are not necessarily indicative of the results to be expected for the full year.

The Consolidated Condensed Balance Sheet of the Company as of December 31, 2011 has been derived from the Audited Consolidated Balance Sheet of the Company as of that date.

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Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 955,868	$ 920,209
Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	279,281	282,849
Commercial | Real estate
Financing Receivable, Recorded Investment [Line Items]
Loans	196,776	197,390
Commercial | Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	173,242	167,991
Commercial | Real estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans	10,675	11,940
Commercial | Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	12,393	16,488
Commercial | Real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans	366	971
Commercial | Construction and development
Financing Receivable, Recorded Investment [Line Items]
Loans	18,226	20,831
Commercial | Construction and development | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	8,971	8,093
Commercial | Construction and development | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans	172	538
Commercial | Construction and development | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	9,055	12,105
Commercial | Construction and development | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans	28	95
Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	64,279	64,628
Commercial | Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	57,608	56,691
Commercial | Other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans	312	880
Commercial | Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	5,588	6,260
Commercial | Other | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans	771	797
Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Loans	478,481	434,976
Residential Mortgage | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	462,635	417,772
Residential Mortgage | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans	2,051	2,473
Residential Mortgage | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	13,795	14,731
Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Loans	198,106	202,384
Consumer loans | Real estate
Financing Receivable, Recorded Investment [Line Items]
Loans	96,391	96,864
Consumer loans | Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	93,771	94,066
Consumer loans | Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	2,620	2,798
Consumer loans | Auto
Financing Receivable, Recorded Investment [Line Items]
Loans	14,482	15,203
Consumer loans | Auto | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	14,427	15,135
Consumer loans | Auto | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	55	68
Consumer loans | Boat/RV
Financing Receivable, Recorded Investment [Line Items]
Loans	80,692	83,557
Consumer loans | Boat/RV | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	79,508	82,639
Consumer loans | Boat/RV | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	1,184	918
Consumer loans | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	6,541	6,760
Consumer loans | Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	6,470	6,680
Consumer loans | Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 71	$ 80

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Bank's Investment in Trust Preferred Securities (Parenthetical) (Detail)	Jun. 30, 2012
Banks, thrifts or other depository institutions
Investment Holdings [Line Items]
Collateral recovery probability percentage	10.00%
Insurance Companies
Investment Holdings [Line Items]
Collateral recovery probability percentage	15.00%

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Bank's Investment in Trust Preferred Securities (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011	Dec. 31, 2011
Investment Holdings [Line Items]
Book Value	$ 359,070			$ 328,001
Fair Value	365,396			330,878
Recognized Losses	0		0
Pooled Trust Preferred Securities
Investment Holdings [Line Items]
Original Par	8,000
Book Value	6,741
Fair Value	2,264
Unrealized Loss	4,477
Recognized Losses
Pooled Trust Preferred Securities | Alesco Preferred Funding IX
Investment Holdings [Line Items]
Class	A2A
Original Par	1,000
Book Value	901
Fair Value	363
Unrealized Loss	538
Recognized Losses
Lowest Rating	CCC-
Number of Banks/Insurance Companies Currently Performing	43
Actual Deferrals/Defaults (as a % of original collateral)	18.14%
Total Projected Defaults (as a % of performing collateral)	19.96%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	45.76%	[2]
Pooled Trust Preferred Securities | Preferred Term Securities XIII
Investment Holdings [Line Items]
Class	B1
Original Par	1,000
Book Value	822
Fair Value	207
Unrealized Loss	615
Recognized Losses
Lowest Rating	Ca
Number of Banks/Insurance Companies Currently Performing	39
Actual Deferrals/Defaults (as a % of original collateral)	36.89%
Total Projected Defaults (as a % of performing collateral)	31.65%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	0.00%	[2]
Pooled Trust Preferred Securities | Preferred Term Securities XVIII
Investment Holdings [Line Items]
Class	C
Original Par	1,000
Book Value	917
Fair Value	217
Unrealized Loss	700
Recognized Losses
Lowest Rating	Ca
Number of Banks/Insurance Companies Currently Performing	49
Actual Deferrals/Defaults (as a % of original collateral)	28.69%
Total Projected Defaults (as a % of performing collateral)	15.45%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	3.94%	[2]
Pooled Trust Preferred Securities | Preferred Term Securities XXVII
Investment Holdings [Line Items]
Class	C1
Original Par	1,000
Book Value	710
Fair Value	166
Unrealized Loss	544
Recognized Losses
Lowest Rating	Ca
Number of Banks/Insurance Companies Currently Performing	33
Actual Deferrals/Defaults (as a % of original collateral)	28.14%
Total Projected Defaults (as a % of performing collateral)	24.88%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	5.62%	[2]
Pooled Trust Preferred Securities | U.S. Capital Funding I
Investment Holdings [Line Items]
Class	B1
Original Par	3,000
Book Value	2,891
Fair Value	1,092
Unrealized Loss	1,799
Recognized Losses
Lowest Rating	Caa1
Number of Banks/Insurance Companies Currently Performing	30
Actual Deferrals/Defaults (as a % of original collateral)	15.90%
Total Projected Defaults (as a % of performing collateral)	15.13%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	2.06%	[2]
Pooled Trust Preferred Securities | U.S. Capital Funding III
Investment Holdings [Line Items]
Class	B1
Original Par	1,000
Book Value	500
Fair Value	219
Unrealized Loss	281
Recognized Losses
Lowest Rating	Ca
Number of Banks/Insurance Companies Currently Performing	29
Actual Deferrals/Defaults (as a % of original collateral)	26.22%
Total Projected Defaults (as a % of performing collateral)	16.76%	[1]
Excess Subordination (after taking into account best estimate of future deferrals/defaults	0.00%	[2]

[1] A 10% recovery is applied to all projected defaults. A 15% recovery is applied to all projected insurance defaults. No recovery is applied to current defaults.

[2] Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.

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Activity in Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, beginning of period	$ 16,634	$ 15,797	$ 16,815	$ 16,372	$ 16,372
Provision charged to expense	1,850	1,700	3,200	5,900	13,100
Losses charged off	2,916	1,764	4,783	6,836	13,818
Recoveries	435	224	771	521	1,161
Allowance for loan losses, end of period	16,003	15,957	16,003	15,957	16,815
Allowance for loan losses, individually evaluated for impairment, ending balance	1,693		1,693		2,225
Allowance for loan losses, collectively evaluated for impairment, ending balance	14,310		14,310		14,590
Loans, individually evaluated for impairment, ending balance	23,235		23,235		31,324
Loans, collectively evaluated for impairment, ending balance	932,633		932,633		888,885
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, beginning of period	10,244	9,501	10,602	10,124	10,124
Provision charged to expense	1,035	580	1,425	3,230	8,592
Losses charged off	1,649	292	2,550	3,565	8,260
Recoveries	374	1	527	1	146
Allowance for loan losses, end of period	10,004	9,790	10,004	9,790	10,602
Allowance for loan losses, individually evaluated for impairment, ending balance	1,657		1,657		2,189
Allowance for loan losses, collectively evaluated for impairment, ending balance	8,347		8,347		8,413
Loans, individually evaluated for impairment, ending balance	19,437		19,437		25,409
Loans, collectively evaluated for impairment, ending balance	259,844		259,844		257,440
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, beginning of period	3,471	2,195	3,444	2,212	2,212
Provision charged to expense	625	700	1,091	2,000	4,390
Losses charged off	706	819	1,147	2,180	3,432
Recoveries	2	59	4	103	274
Allowance for loan losses, end of period	3,392	2,135	3,392	2,135	3,444
Allowance for loan losses, individually evaluated for impairment, ending balance	36		36		36
Allowance for loan losses, collectively evaluated for impairment, ending balance	3,356		3,356		3,408
Loans, individually evaluated for impairment, ending balance	3,798		3,798		5,915
Loans, collectively evaluated for impairment, ending balance	474,683		474,683		429,061
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, beginning of period	2,919	4,101	2,769	4,036	4,036
Provision charged to expense	190	420	684	670	118
Losses charged off	561	653	1,086	1,091	2,126
Recoveries	59	164	240	417	741
Allowance for loan losses, end of period	2,607	4,032	2,607	4,032	2,769
Allowance for loan losses, collectively evaluated for impairment, ending balance	2,607		2,607		2,769
Loans, collectively evaluated for impairment, ending balance	$ 198,106		$ 198,106		$ 202,384

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Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Credit losses on debt securities held, beginning of year	$ (1,205)	$ (1,205)	$ (1,205)	$ (1,179)
Additions related to increases in previously recognized other-than-temporary losses				(26)
Credit losses on debt securities held, end of period	$ (1,205)	$ (1,205)	$ (1,205)	$ (1,205)

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Accumulated Other Comprehensive Gain (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss) on securities available-for-sale	$ 10,266	$ 7,177
Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income	(3,940)	(4,299)
Net unrealized loss on derivative used for cash flow hedges	(458)	(472)
Net unrealized loss relating to defined benefit plan liability	(448)	(448)
Accumulated Other Comprehensive Income (Loss), Before Taxes, Total	5,420	1,958
Tax expense (benefit)	1,961	755
Net-of-tax amount	$ 3,459	$ 1,203

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Consolidated Condensed Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities
Net income	$ 3,070	$ 988
Items not requiring (providing) cash
Provision for loan losses	3,200	5,900
Depreciation and amortization	2,966	3,077
Deferred income tax	72	(511)
Loans originated for sale	(15,199)	(10,830)
Proceeds from sales of loans held for sale	12,269	20,743
Gains on sales of loans held for sale	(847)	(441)
Gain on sale of securities-available-for sale	(480)	(75)
Loss on other real estate and repossessed assets	553	336
Loss on other-than-temporary impairment, securities	0	193
Other equity adjustments	218	170
Change in
Prepaid FDIC premium	585	780
Interest receivable and other assets	1,237	674
Interest payable and other liabilities	293	207
Cash value of life insurance	(677)	(725)
Other adjustments	292	1,667
Net cash provided by operating activities	7,551	22,153
Investing Activities
Net change in interest earning assets	1,415
Purchases of securities available-for-sale	(76,553)	(74,016)
Proceeds from maturities and paydowns of securities available-for-sale	31,809	19,006
Proceeds from sale of securities-available for sale	13,184	3,011
Redemption of Federal Home Loan Bank Stock		2,292
Net change in loans	(52,165)	16,728
Proceeds from sales of loans transferred to held for sale	3,669
Purchases of premises and equipment	(921)	(405)
Proceeds from real estate owned sales	2,019	2,366
Other investing activities	(22)	(37)
Net cash used in investing activities	(77,565)	(31,055)
Net change in
Noninterest-bearing, interest-bearing demand and savings deposits	51,245	46,654
Certificates of deposit	(46,381)	(6,652)
Proceeds from FHLB advances	237,451	11,000
Repayment of FHLB advances	(202,279)	(32,785)
Repayment of other borrowings	(418)	(395)
Cash dividends paid	(1,561)	(1,648)
Other financing activities	324	194
Net cash provided by financing activities	38,381	16,368
Net Change in Cash and Cash Equivalents	(31,633)	7,466
Cash and Cash Equivalents, Beginning of Period	55,223	26,821
Cash and Cash Equivalents, End of Period	23,590	34,287
Additional Cash Flows Information
Interest paid	7,845	10,358
Income tax paid
Transfers from loans to foreclosed real estate	3,617	6,296
Mortgage servicing rights capitalized	$ 114	$ 357

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Fair Value Measurement of Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 365,396	$ 330,878
Mortgage-backed securities, Government sponsored agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	215,667	202,846
Collateralized mortgage obligations, Government sponsored agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	120,084	100,061
Federal agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,020	2,002
Municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,412	3,558
Small Business Administration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	10	12
Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	23,203	22,399
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	363,132	328,424
Fair Value, Inputs, Level 2 | Mortgage-backed securities, Government sponsored agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	215,667	202,846
Fair Value, Inputs, Level 2 | Collateralized mortgage obligations, Government sponsored agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	120,084	100,061
Fair Value, Inputs, Level 2 | Federal agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,020	2,002
Fair Value, Inputs, Level 2 | Municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,412	3,558
Fair Value, Inputs, Level 2 | Small Business Administration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	10	12
Fair Value, Inputs, Level 2 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	20,939	19,945
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2,264	2,454
Fair Value, Inputs, Level 3 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 2,264	$ 2,454

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Age Analysis of Past Due Loans Segregated by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 14,792	$ 19,967
60-89 Days Past Due	4,573	10,585
Greater Than 90 Days	20,845	26,146
Total Past Due	40,210	56,698
Current	915,658	863,511
Total Loans Receivable	955,868	920,209
Total Loans > 90 Days and Accruing	290	1,127	1,038
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	279,281	282,849
Commercial | Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	397	1,173
60-89 Days Past Due	711	1,439
Greater Than 90 Days	3,703	6,569
Total Past Due	4,811	9,181
Current	191,965	188,209
Total Loans Receivable	196,776	197,390
Commercial | Construction and development
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,199	845
60-89 Days Past Due	116	3,595
Greater Than 90 Days	5,613	4,850
Total Past Due	6,928	9,290
Current	11,298	11,541
Total Loans Receivable	18,226	20,831
Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	147	791
60-89 Days Past Due	197	99
Greater Than 90 Days	869	955
Total Past Due	1,213	1,845
Current	63,066	62,783
Total Loans Receivable	64,279	64,628
Residential Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	10,304	13,309
60-89 Days Past Due	2,702	3,427
Greater Than 90 Days	8,496	11,207
Total Past Due	21,502	27,943
Current	456,979	407,033
Total Loans Receivable	478,481	434,976
Total Loans > 90 Days and Accruing	290	1,127
Consumer loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	198,106	202,384
Consumer loans | Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,051	1,395
60-89 Days Past Due	340	1,167
Greater Than 90 Days	1,696	2,081
Total Past Due	3,087	4,643
Current	93,304	92,221
Total Loans Receivable	96,391	96,864
Consumer loans | Auto
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	52	143
60-89 Days Past Due	11	28
Greater Than 90 Days	32	24
Total Past Due	95	195
Current	14,387	15,008
Total Loans Receivable	14,482	15,203
Consumer loans | Boat/RV
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,515	2,084
60-89 Days Past Due	461	825
Greater Than 90 Days	419	371
Total Past Due	2,395	3,280
Current	78,297	80,277
Total Loans Receivable	80,692	83,557
Consumer loans | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	127	227
60-89 Days Past Due	35	5
Greater Than 90 Days	17	89
Total Past Due	179	321
Current	6,362	6,439
Total Loans Receivable	$ 6,541	$ 6,760

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Consolidated Condensed Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Assets
Cash	$ 7,246	$ 7,710
Interest-bearing demand deposits	16,344	47,513
Cash and cash equivalents	23,590	55,223
Interest-bearing deposits		1,415
Investment securities available for sale	365,396	330,878
Loans held for sale	8,598	1,441
Loans	954,423	917,275
Allowance for loan losses	(16,003)	(16,815)
Net loans	938,420	900,460
Premises and equipment	32,022	32,025
Federal Home Loan Bank of Indianapolis stock, at cost	14,391	14,391
Investment in limited partnerships	2,858	3,113
Deferred income tax benefit	16,107	17,386
Income tax receivable	360	1,344
Cash surrender value of life insurance	47,737	47,023
Prepaid FDIC premium	2,236	2,821
Core deposit and other intangibles	2,863	3,373
Foreclosed real estate	7,364	6,525
Other assets	9,506	9,775
Total assets	1,471,448	1,427,193
Deposits
Non-interest-bearing	129,976	122,215
Interest-bearing	1,041,524	1,044,422
Total deposits	1,171,500	1,166,637
Federal Home Loan Bank advances	136,574	101,451
Other borrowings	12,014	12,410
Other liabilities	14,719	14,068
Total liabilities	1,334,807	1,294,566
Stockholders' Equity
Preferred stock, $.01 par value Authorized - 5,000,000 shares Issued and outstanding - 28,923 shares; liquidation preference $1,000 per share	1	1
Common stock, $.01 par value Authorized - 20,000,000 shares Issued and outstanding - 6,992,029 and 6,987,586 shares	70	70
Additional paid-in capital - preferred stock	28,923	28,923
Additional paid-in capital - common stock	71,886	71,796
Retained earnings	32,779	31,270
Accumulated other comprehensive income	3,459	1,203
Unearned employee stock ownership plan (ESOP) shares	(477)	(636)
Total stockholders' equity	136,641	132,627
Total liabilities and stockholders' equity	$ 1,471,448	$ 1,427,193

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Non-Performing Assets excluding Restructured Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 24,575		$ 23,652
Accruing loans 90 days + past due	290	1,127	1,038
Total non-performing loans	24,865		24,690
Foreclosed real estate	7,364	6,525	7,151
Other repossessed assets	601		937
Total non-performing assets	$ 32,830		$ 32,778

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Consolidated Condensed Statement of Stockholders' Equity (USD $) In Thousands, except Share data	Total	Common Stock	Additional paid-in capital	Preferred Stock	Additional paid-in capital	Retained Earnings	Accumulated Other Comprehensive Income	Unearned ESOP shares
Beginning Balance at Dec. 31, 2011	$ 132,627	$ 70	$ 71,796	$ 1	$ 28,923	$ 31,270	$ 1,203	$ (636)
Beginning Balance (in shares) at Dec. 31, 2011		6,987,586		28,923
Net income for the period	3,070					3,070
Other comprehensive income, net of tax	2,256						2,256
ESOP shares earned	150		(9)					159
Stock options vested	68		68
Stock options exercised (in shares)		4,443
Stock options exercised	31		31
Cash dividends ($.12 per common share)	(838)					(838)
Cash dividends - preferred stock	(723)					(723)
Ending Balance at Jun. 30, 2012	$ 136,641	$ 70	$ 71,886	$ 1	$ 28,923	$ 32,779	$ 3,459	$ (477)
Ending Balance (in shares) at Jun. 30, 2012		6,992,029		28,923

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Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	$ 3,011	$ 16,511
Foreclosed real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	1,937	202
Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	2,109	2,626
Fair Value, Inputs, Level 3 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	3,011	16,511
Fair Value, Inputs, Level 3 | Foreclosed real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	1,937	202
Fair Value, Inputs, Level 3 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on non recurring basis	$ 2,109	$ 2,626

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Earning Per Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic Earnings Per Share
Net income	$ 1,644	$ 1,681	$ 3,070	$ 988
Dividends and accretion on preferred stock	(362)	(451)	(723)	(902)
Income available to common stockholders	1,282	1,230	2,347	86
Diluted Earnings Per Share
Income available to common stockholders and assumed conversions	$ 1,282	$ 1,230	$ 2,347	$ 86
Weighted-Average Shares, basic	6,933,255	6,903,151	6,933,255	6,898,195
Weighted-Average Shares, adjustment	55,624	102,731	83,738	126,725
Weighted-Average Shares, diluted	6,988,879	7,005,882	7,016,993	7,024,920
Basic Earnings Per Share, Per-Share Amount	$ 0.18	$ 0.18	$ 0.34	$ 0.01
Diluted Earnings Per Share, Per-Share Amount	$ 0.18	$ 0.18	$ 0.33	$ 0.01

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Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Pooled Trust Preferred Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,264
Valuation Technique	Discounted cash flow
Pooled Trust Preferred Securities | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	9.00%
Cumulative projected prepayments	0.00%
Probability of default	1.60%
Projected cures given deferral	0.00%
Loss severity	56.70%
Pooled Trust Preferred Securities | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	18.00%
Constant prepayment rate	2.00%
Cumulative projected prepayments	20.00%
Probability of default	2.50%
Projected cures given deferral	15.00%
Loss severity	81.40%
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	3,011
Valuation Technique	Third party valuations
Impaired loans | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.00%
Impaired loans | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	40.00%
Foreclosed real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,937
Valuation Technique	Third party valuations
Foreclosed real estate | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount to reflect realizable value less estimated selling costs	0.00%
Foreclosed real estate | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount to reflect realizable value less estimated selling costs	25.00%

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Amortized Cost and Fair Values of Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 359,070	$ 328,001
Gross Unrealized Gains	11,026	7,986
Gross Unrealized Loss	(4,700)	(5,109)
Fair Value	365,396	330,878
Mortgage-backed securities, Government sponsored agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	208,737	198,039
Gross Unrealized Gains	6,930	4,813
Gross Unrealized Loss		(6)
Fair Value	215,667	202,846
Collateralized mortgage obligations, Government sponsored agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	116,509	97,098
Gross Unrealized Gains	3,582	2,963
Gross Unrealized Loss	(7)
Fair Value	120,084	100,061
Federal agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,000	2,000
Gross Unrealized Gains	20	2
Gross Unrealized Loss	0
Fair Value	3,020	2,002
Municipals
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,185	3,364
Gross Unrealized Gains	252	208
Gross Unrealized Loss	(25)	(14)
Fair Value	3,412	3,558
Small Business Administration
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10	12
Fair Value	10	12
Corporate obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,629	27,488
Gross Unrealized Gains	242
Gross Unrealized Loss	(4,668)	(5,089)
Fair Value	$ 23,203	$ 22,399

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Consolidated Condensed Statement of Stockholders' Equity (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Cash dividends, per common share	$ 0.06	$ 0.06	$ 0.12	$ 0.12

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Consolidated Condensed Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	28,923	28,923
Preferred stock, shares outstanding	28,923	28,923
Preferred stock, liquidation preference	$ 1,000	$ 1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	6,992,029	6,987,586
Common stock, shares outstanding	6,992,029	6,987,586

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share

Earnings per share were computed as follows:

	Three Months Ended June 30,
	2012							2011
				Weighted-							Weighted-
	Net			Average		Per-Share		Net			Average		Per-Share
	Income			Shares		Amount		Income			Shares		Amount
Basic Earnings Per Share
Net income	$	1,644			6,933,255			$	1,681			6,903,151	$	0.24
Dividends and accretion on preferred stock		(362	)						(451	)
Income available to common stockholders	$	1,282			6,933,255	$	0.18	$	1,230			6,903,151	$	0.18
Effect of Dilutive securities
Stock options and RRP grants					55,624							102,731
Diluted Earnings Per Share
Income available to common stockholders and assumed conversions	$	1,282			6,988,879	$	0.18	$	1,230			7,005,882	$	0.18

	Six Months Ended June 30,
	2012							2011
				Weighted-							Weighted-
	Net			Average		Per-Share		Net			Average		Per-Share
	Income			Shares		Amount		Income			Shares		Amount
Basic Earnings Per Share
Net income	$	3,070			6,933,255			$	988			6,898,195
Dividends and accretion on preferred stock		(723	)						(902	)
Income available to common stockholders	$	2,347			6,933,255	$	0.34	$	86			6,898,195	$	0.01
Effect of Dilutive securities
Stock options and RRP grants					83,738							126,725
Diluted Earnings Per Share
Income available to common stockholders and assumed conversions	$	2,347			7,016,993	$	0.33	$	86			7,024,920	$	0.01

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 13, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	MFSF
Entity Registrant Name	MUTUALFIRST FINANCIAL INC
Entity Central Index Key	0001094810
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,992,029

XML

Investments (Tables)

6 Months Ended

Jun. 30, 2012

Amortized Cost and Fair Values of Securities

The amortized cost and approximate fair values of securities as of June 30, 2012 and December 31, 2011 are as follows.

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available for Sale Securities
Mortgage-backed securities
Government sponsored agencies	$	208,737	$	6,930	$	-		$	215,667
Collateralized mortgage obligations
Government sponsored agencies		116,509		3,582		(7	)		120,084
Federal agencies		3,000		20		0			3,020
Municipals		3,185		252		(25	)		3,412
Small Business Administration		10		-		-			10
Corporate obligations		27,629		242		(4,668	)		23,203
Total	$	359,070	$	11,026	$	(4,700	)	$	365,396

	December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available for Sale Securities
Mortgage-backed securities
Government sponsored agencies	$	198,039	$	4,813	$	(6	)	$	202,846
Collateralized mortgage obligations
Government sponsored agencies		97,098		2,963		—			100,061
Federal agencies		2,000		2		—			2,002
Municipals		3,364		208		(14	)		3,558
Small Business Administration		12		-		—			12
Corporate obligations		27,488		-		(5,089	)		22,399
Total	$	328,001	$	7,986	$	(5,109	)	$	330,878

Amortized Cost and Fair Value of Available for Sale Securities by Contractual Maturity

The amortized cost and fair value of available-for-sale securities at June 30, 2012, by contractual maturity, are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized		Fair
Description Securities	Cost		Value
Security obligations due
One to five years	$	20,888	$	20,941
Five to ten years		5,001		5,123
After ten years		7,925		3,571
		33,814		29,635
Mortgage-backed securities		208,737		215,667
Collateralized mortgage obligations		116,509		120,084
Small Business Administration		10		10
Totals	$	359,070	$	365,396

Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position

The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2012 and December 31, 2011:

	June 30, 2012
	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
Mortgage-backed securities
Government sponsored agencies	$	2,987	$	(7	)	$	-	$	-		$	2,987	$	(7	)
Municipals		866		(25	)		-		-			866		(25	)
Corporate obligations		7,642		(189	)		2,264		(4,479	)		9,906		(4,668	)
Total temporarily impaired securities	$	11,495	$	(221	)	$	2,264	$	(4,479	)	$	13,759	$	(4,700	)

	December 31, 2011
	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
Mortgage-backed securities
Government sponsored agencies	$	5,076	$	(6	)	$	-	$	-		$	5,076	$	(6	)
Municipals		971		(14	)		-		-			971		(14	)
Corporate obligations		19,957		(790	)		2,454		(4,299	)		22,411		(5,089	)
Total temporarily impaired securities	$	26,004	$	(810	)	$	2,454	$	(4,299	)	$	28,458	$	(5,109	)

Bank's Investment in Trust Preferred Securities

The following table provides additional information related to the Bank’s investment in trust preferred securities as of June 30, 2012:

Deal	Class	Original Par		Book Value		Fair Value		Unrealized Loss		Recognized Losses 2012		Lowest Rating	Number of Banks/Insurance Companies Currently Performing		Actual Deferrals/Defaults (as % of original collateral)			Total Projected Defaults (as a % of performing collateral)a			Excess Subordination (after taking into account best estimate of future deferrals/defaults)b
Alesco Preferred Funding IX	A2A	$	1,000	$	901	$	363	$	538	$	-	CCC-		43		18.14	%		19.96	%		45.76	%
Preferred Term Securities XIII	B1		1,000		822		207		615		-	Ca		39		36.89	%		31.65	%		0.00	%
Preferred Term Securities XVIII	C		1,000		917		217		700		-	Ca		49		28.69	%		15.45	%		3.94	%
Preferred Term Securities XXVII	C1		1,000		710		166		544		-	Ca		33		28.14	%		24.88	%		5.62	%
U.S. Capital Funding I	B1		3,000		2,891		1,092		1,799		-	Caa1		30		15.90	%		15.13	%		2.06	%
U.S. Capital Funding III	B1		1,000		500		219		281		-	Ca		29		26.22	%		16.76	%		0.00	%
Total		$	8,000	$	6,741	$	2,264	$	4,477	$	-

(a) A 10% recovery is applied to all projected defaults.  A 15% recovery is applied to all projected insurance defaults.  No recovery is applied to current defaults.

(b) Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.

Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income.

	Accumulated Credit Losses Three Months Ended June 30,
	2012			2011
Credit losses on debt securities held
Beginning of period	$	(1,205	)	$	(1,205	)
Additions related to increases in previously recognized other-than-temporary losses for the three months ended		-			-
As of June 30,	$	(1,205	)	$	(1,205	)

	Accumulated Credit Losses Six Months Ended June 30,
	2012			2011
Credit losses on debt securities held
Beginning of year	$	(1,205	)	$	(1,179	)
Additions related to increases in previously recognized other-than-temporary losses for the six months ended		-			(26	)
As of June 30,	$	(1,205	)	$	(1,205	)

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Consolidated Condensed Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest Income
Loans receivable, including fees	$ 11,648	$ 13,415	$ 23,228	$ 27,099
Investment securities:
Mortgage-backed securities	2,123	2,108	4,107	3,841
Federal Home Loan Bank stock	107	102	216	208
Other investments	216	151	433	290
Deposits with financial institutions	6	30	15	52
Total interest income	14,100	15,806	27,999	31,490
Interest Expense
Passbook savings	13	36	26	72
Certificates of deposit	2,624	3,718	5,509	7,548
Daily Money Market accounts	92	121	200	243
Demand and NOW accounts	227	323	448	594
Federal Home Loan Bank advances	597	844	1,200	1,744
Other interest expense	197	209	397	420
Total interest expense	3,750	5,252	7,780	10,621
Net Interest Income	10,350	10,554	20,219	20,869
Provision for losses on loans	1,850	1,700	3,200	5,900
Net Interest Income After Provision for Loan Losses	8,500	8,854	17,019	14,969
Other Income
Service fee income	1,752	1,726	3,405	3,331
Net realized gain on sale of securities	283	1	480	75
Equity in losses of limited partnerships	(128)	(116)	(248)	(149)
Commissions	1,036	1,005	2,054	1,956
Net gains on sales of loans	715	349	847	441
Net servicing fees (loss)	(142)	18	(110)	44
Increase in cash surrender value of life insurance	336	374	677	725
Loss on sale of other real estate and repossessed assets	(160)	(62)	(553)	(336)
Other-than-temporary losses on securities
Total other-than-temporary losses				(723)
Portion of loss recognized in other comprehensive income (before taxes)				530
Net impairment losses recognized in earnings			0	(193)
Other income	13	18	81	66
Total other income	3,705	3,313	6,633	5,960
Other Expenses
Salaries and employee benefits	5,293	5,340	10,637	10,863
Net occupancy expenses	527	659	1,103	1,335
Equipment expenses	493	502	891	982
Data processing fees	387	379	818	780
Automated teller machine	257	228	485	535
Deposit insurance	314	332	627	840
Professional fees	426	376	768	736
Advertising and promotion	372	300	725	600
Software subscriptions and maintenance	395	313	762	631
Intangible amortization	255	305	516	614
Other real estate and repossessed assets	281	306	444	467
Other expenses	933	961	1,750	1,819
Total other expenses	9,933	10,001	19,526	20,202
Income Before Income Tax	2,272	2,166	4,126	727
Income tax expense (benefit)	628	485	1,056	(261)
Net Income	1,644	1,681	3,070	988
Preferred stock dividends and amortization	362	451	723	902
Net Income Available to Common Shareholders	$ 1,282	$ 1,230	$ 2,347	$ 86
Basic earnings per common share	$ 0.18	$ 0.18	$ 0.34	$ 0.01
Diluted earnings per common share	$ 0.18	$ 0.18	$ 0.33	$ 0.01
Dividends per common share	$ 0.06	$ 0.06	$ 0.12	$ 0.12

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Investments

6 Months Ended

Jun. 30, 2012

Investments

Note 4: Investments

The amortized cost and approximate fair values of securities as of June 30, 2012 and December 31, 2011 are as follows.

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available for Sale Securities
Mortgage-backed securities
Government sponsored agencies	$	208,737	$	6,930	$	-		$	215,667
Collateralized mortgage obligations
Government sponsored agencies		116,509		3,582		(7	)		120,084
Federal agencies		3,000		20		0			3,020
Municipals		3,185		252		(25	)		3,412
Small Business Administration		10		-		-			10
Corporate obligations		27,629		242		(4,668	)		23,203
Total	$	359,070	$	11,026	$	(4,700	)	$	365,396

	December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available for Sale Securities
Mortgage-backed securities
Government sponsored agencies	$	198,039	$	4,813	$	(6	)	$	202,846
Collateralized mortgage obligations
Government sponsored agencies		97,098		2,963		—			100,061
Federal agencies		2,000		2		—			2,002
Municipals		3,364		208		(14	)		3,558
Small Business Administration		12		-		—			12
Corporate obligations		27,488		-		(5,089	)		22,399
Total	$	328,001	$	7,986	$	(5,109	)	$	330,878

The amortized cost and fair value of available-for-sale securities at June 30, 2012, by contractual maturity, are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized		Fair
Description Securities	Cost		Value
Security obligations due
One to five years	$	20,888	$	20,941
Five to ten years		5,001		5,123
After ten years		7,925		3,571
		33,814		29,635
Mortgage-backed securities		208,737		215,667
Collateralized mortgage obligations		116,509		120,084
Small Business Administration		10		10
Totals	$	359,070	$	365,396

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $2.6 million at June 30, 2012.

Gross gains of $480,000 and $75,000 resulting from sales of securities were realized for the six months ended June 30, 2012 and 2011, respectively.  There were no losses recognized on the sale of securities during this period in either 2012 or 2011.  Other-than-temporary impairment losses were recognized on securities for the six months ended June 30, 2012 and 2011 of $0 and $193,000, respectively.

Certain investments in debt and marketable equity securities are reported in the financial statements at an amount less than their historical cost.  Total fair value of these investments at June 30, 2012, was $13.8 million, a decrease from $28.5 million at December 31, 2011, which is approximately 4% and 9%, respectively, of the Bank's portfolio.  The Bank has continued to see an improvement since year-end due to increased market values.

Based on evaluation of available evidence, including recent changes in market interest rates, management believes the declines in fair value for these securities, other than those discussed below, are temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2012 and December 31, 2011:

	June 30, 2012
	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
Mortgage-backed securities
Government sponsored agencies	$	2,987	$	(7	)	$	-	$	-		$	2,987	$	(7	)
Municipals		866		(25	)		-		-			866		(25	)
Corporate obligations		7,642		(189	)		2,264		(4,479	)		9,906		(4,668	)
Total temporarily impaired securities	$	11,495	$	(221	)	$	2,264	$	(4,479	)	$	13,759	$	(4,700	)

	December 31, 2011
	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
Mortgage-backed securities
Government sponsored agencies	$	5,076	$	(6	)	$	-	$	-		$	5,076	$	(6	)
Municipals		971		(14	)		-		-			971		(14	)
Corporate obligations		19,957		(790	)		2,454		(4,299	)		22,411		(5,089	)
Total temporarily impaired securities	$	26,004	$	(810	)	$	2,454	$	(4,299	)	$	28,458	$	(5,109	)

Mortgage-Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO)

The unrealized losses on the Company’s investment in MBSs and CMOs were caused by interest rate changes.  The Company expects to recover the amortized cost basis over the term of the securities.  Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is more likely than not the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2012.

Corporate Obligations

The Company’s unrealized loss on investments in corporate obligations primarily relates to investments in pooled trust preferred securities. The unrealized losses were primarily caused by (a) a decrease in performance and regulatory capital at the underlying banks resulting from exposure to subprime mortgages and (b) a sector downgrade by several industry analysts. The Company currently expects some of the securities to settle at a price less than the amortized cost basis of the investment (that is, the Company expects to recover less than the entire amortized cost basis of the security). The Company has recognized a loss equal to the credit loss for these securities, establishing a new, and lower amortized cost basis. The credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. Because the Company does not intend to sell the investments and it is likely the Company will not be required to sell the investments before recovery of its new, lower amortized cost basis, which may be maturity, it does not consider the remainder of the investments to be other-than-temporarily impaired at June 30, 2012.

Mutual evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis. During the quarter ended June 30, 2012, the Bank’s evaluation indicated that there was no other-than-temporary impairment of securities. Impairment on securities is determined after analyzing the estimated cash flows to be received, underlying collateral and determining the amount of additional losses needed in the individual pools to create a shortfall in interest or principal payments. All trust preferred securities were valued using a discounted cash flow analysis as of June 30, 2012.

Other-than-temporary Impairment

Upon acquisition of a security, the Company decides whether it is within the scope of the accounting guidance for beneficial interests in securitized financial assets or will be evaluated for impairment under the accounting guidance for investments in debt and equity securities.

The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the debt securities within the scope of the guidance for investments in debt and equity securities. For securities where the security is a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model. Where the security is not a beneficial interest in securitized financial assets, the Company uses the debt and equity securities impairment model.

The Company routinely conducts reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred.  Economic models are used to determine whether an other-than-temporary impairment has occurred on these securities.  While all securities are considered, the securities primarily impacted by other-than-temporary impairment testing are pooled trust preferred securities.  For each pooled trust preferred security in the investment portfolio (including but not limited to those whose fair value is less than their amortized cost basis), an extensive, regular review is conducted to determine if an other-than-temporary impairment has occurred.  Various inputs to the economic models are used to determine if an unrealized loss is other-than-temporary.

The Bank’s trust preferred securities valuation was prepared by an independent third party.  The approach to determining fair value involved several steps including:

· Detailed credit and structural evaluation of each piece of collateral in the trust preferred securities;

· Collateral performance projections for each piece of collateral in the trust preferred security;

· Terms of the trust preferred structure, as laid out in the indenture; and

· Discounted cash flow modeling.

MutualFirst uses market-based yield indicators as a baseline for determining appropriate discount rates, and then adjusts the resulting discount rates on the basis of its credit and structural analysis of specific trust preferred securities.  The primary focus is on the returns a fixed income investor would require in order to allocate capital on a risk adjusted basis.  There is currently no active market for pooled trust preferred securities; however, the Company looks principally to market yields for stand-alone trust preferred securities issued by banks, thrifts and insurance companies for which there is an active and liquid market.  The next step is to make a series of adjustments to reflect the differences that exist between these products (both credit and structural) and, most importantly, to reflect idiosyncratic credit performance differences (both actual and projected) between these products and the underlying collateral in the specific trust preferred security.  Importantly, as part of the analysis described above, MutualFirst considers the fact that structured instruments frequently exhibit leverage not present in stand-alone instruments, and make adjustments as necessary to reflect this additional risk.

 The default and recovery probabilities for each piece of collateral were formed based on the evaluation of the collateral credit and a review of historical industry default data and current/near-term operating conditions.  For collateral that has already defaulted, the Company assumed no recovery.  For collateral that was in deferral, the Company assumed a recovery of 10% of par for banks, thrifts or other depository institutions, and 15% of par for insurance companies.  Although the Company conservatively assumed that the majority of the deferring collateral continues to defer and eventually defaults, we also recognize there is a possibility that some deferring collateral may become current at some point in the future.

Pooled Trust Preferred Securities

At June 30, 2012, MutualFirst had an amortized cost in pooled trust preferred securities of $6.7 million, which had an original par value of $8.0 million.  These securities had a fair value of $2.3 million at June 30, 2012.  The following table provides additional information related to the Bank’s investment in trust preferred securities as of June 30, 2012:

Deal	Class	Original Par		Book Value		Fair Value		Unrealized Loss		Recognized Losses 2012		Lowest Rating	Number of Banks/Insurance Companies Currently Performing		Actual Deferrals/Defaults (as % of original collateral)			Total Projected Defaults (as a % of performing collateral)a			Excess Subordination (after taking into account best estimate of future deferrals/defaults)b
Alesco Preferred Funding IX	A2A	$	1,000	$	901	$	363	$	538	$	-	CCC-		43		18.14	%		19.96	%		45.76	%
Preferred Term Securities XIII	B1		1,000		822		207		615		-	Ca		39		36.89	%		31.65	%		0.00	%
Preferred Term Securities XVIII	C		1,000		917		217		700		-	Ca		49		28.69	%		15.45	%		3.94	%
Preferred Term Securities XXVII	C1		1,000		710		166		544		-	Ca		33		28.14	%		24.88	%		5.62	%
U.S. Capital Funding I	B1		3,000		2,891		1,092		1,799		-	Caa1		30		15.90	%		15.13	%		2.06	%
U.S. Capital Funding III	B1		1,000		500		219		281		-	Ca		29		26.22	%		16.76	%		0.00	%
Total		$	8,000	$	6,741	$	2,264	$	4,477	$	-

(a) A 10% recovery is applied to all projected defaults.  A 15% recovery is applied to all projected insurance defaults.  No recovery is applied to current defaults.

(b) Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.

Credit Losses Recognized on Investments

Certain debt securities have experienced fair value deterioration due to credit losses, as well as due to other market factors, but are not otherwise other-than-temporarily impaired.

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income.

	Accumulated Credit Losses Three Months Ended June 30,
	2012			2011
Credit losses on debt securities held
Beginning of period	$	(1,205	)	$	(1,205	)
Additions related to increases in previously recognized other-than-temporary losses for the three months ended		-			-
As of June 30,	$	(1,205	)	$	(1,205	)

	Accumulated Credit Losses Six Months Ended June 30,
	2012			2011
Credit losses on debt securities held
Beginning of year	$	(1,205	)	$	(1,179	)
Additions related to increases in previously recognized other-than-temporary losses for the six months ended		-			(26	)
As of June 30,	$	(1,205	)	$	(1,205	)

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Impact of Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

Impact of Accounting Pronouncements

Note 3:  Impact of Accounting Pronouncements

The FASB has issued Accounting Standards Update (ASU) No. 2011-04,Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU represents the converged guidance of the FASB and the IASB (the Boards) on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term “fair value.” The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs.

The amendments to the FASB Accounting Standards Codification (Codification) in this ASU are to be applied prospectively. For public entities, the amendments were effective during interim and annual periods beginning after December 15, 2011, and did not have a material impact on the Company’s financial statements.

The FASB has issued Accounting Standards Update (ASU) No. 2011-05,Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU amendment allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments to the Codification in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 is to be applied retrospectively. For public entities, the amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of ASU No. 2011-05 did not have a material impact on the Company’s financial statements.

The FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.  This ASU defers the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income for all periods presented. The ASU does not change the other requirements of FASB ASU No. 2011-05,  Presentation of Comprehensive Income . Entities are still required to present reclassification adjustments within other comprehensive income either on the face of the statement that reports other comprehensive income or in the notes to the financial statements. The requirement to present comprehensive income in either a single continuous statement or two consecutive condensed statements remains for both annual and interim reporting. The deferral of the requirement for the presentation of reclassification adjustments is intended to be temporary until the FASB reconsiders the operational concerns and needs of financial statement users.

The Company adopted the amendments in this Update at the same time as ASU 2011-05, which became effective beginning in the interim period ended March 31, 2012. As the Company had no reclassifications adjustments within other comprehensive income, ASU No. 2011-12 had no impact on its financial statements.

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Earning Per share - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation	266,185	434,887
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation		625,135
Antidilutive securities excluded from earnings per share computation, per share price		7.77

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2012

Accumulated Other Comprehensive Gain (Loss)

The following table represents the components of accumulated other comprehensive income:

	June 30,			December 31,
	2012			2011
Net unrealized gain on securities available-for-sale	$	10,266		$	7,177
Net unrealized loss on securities available-for-sale for which a portion of other-than-temporary impairment has been recognized in income		(3,940	)		(4,299	)
Net unrealized loss on derivative used for cash flow hedges		(458	)		(472	)
Net unrealized loss relating to defined benefit plan liability		(448	)		(448	)
		5,420			1,958
Tax expense		1,961			755
Net-of-tax amount	$	3,459		$	1,203

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Loans

6 Months Ended

Jun. 30, 2012

Loans

Note 7: Loans

Categories of loans at June 30, 2012 and December 31, 2011 include:

	June 30,			December 31,
	2012			2011
Commercial
Real estate	$	196,776		$	197,390
Construction and development		18,226			20,831
Other		64,279			64,628
		279,281			282,849
Residential Mortgage
One- to four- family		478,481			434,976
Consumer loans
Auto		14,482			15,203
Residential		96,391			96,864
Boat/RVs		80,692			83,557
Other		6,541			6,760
		198,106			202,384
Total loans		955,868			920,209
Undisbursed loans in process		(3,847	)		(5,352	)
Unamortized deferred loan costs, net		2,402			2,418
Allowance for loan losses		(16,003	)		(16,815	)
Net loans	$	938,420		$	900,460

The risk characteristics of each loan portfolio segment are as follows:

Commercial

Commercial real estate

These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

Construction and Development

Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates and financial analyses of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

Commercial other

Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Mortgage and Consumer

With respect to residential loans that are secured by 1-4 family residences and are primarily owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires PMI if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Nonaccrual and Past Due Loans. 

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.  The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection.  Past due status is based on contractual terms of the loan.  In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income.  The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual.  Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Non-accrual loans, segregated by class of loans, as of June 30, 2012 and December 31, 2011 are as follows:

	June 30,		December 31,
	2012		2011
Commercial
Real Estate	$	4,409	$	7,592
Construction and development		6,478		9,314
Other		1,139		1,160
Residential Mortgage		9,732		10,080
Consumer
Real estate		1,956		2,081
Auto		40		24
Boat/RV		765		371
Other		56		89
	$	24,575	$	30,711

An age analysis of Company’s past due loans, segregated by class of loans, as of June 30, 2012 and December 31, 2011 is as follows:

	June 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
Commercial
Real Estate	$	397	$	711	$	3,703	$	4,811	$	191,965	$	196,776	$	-
Construction and development		1,199		116		5,613		6,928		11,298		18,226		-
Other		147		197		869		1,213		63,066		64,279		-
Residential Mortgage		10,304		2,702		8,496		21,502		456,979		478,481		290
Consumer
Real estate		1,051		340		1,696		3,087		93,304		96,391		-
Auto		52		11		32		95		14,387		14,482		-
Boat/RV		1,515		461		419		2,395		78,297		80,692		-
Other		127		35		17		179		6,362		6,541		-
	$	14,792	$	4,573	$	20,845	$	40,210	$	915,658	$	955,868	$	290

	December 31, 2011
													Total Loans
					Greater						Total		> 90 Days
	30-59 Days		60-89 Days		Than 90		Total Past				Loans		and
	Past Due		Past Due		Days		Due		Current		Receivable		Accruing
Commercial
Real Estate	$	1,173	$	1,439	$	6,569	$	9,181	$	188,209	$	197,390	$	-
Construction  and development		845		3,595		4,850		9,290		11,541		20,831		-
Other		791		99		955		1,845		62,783		64,628		-
Residential Mortgage		13,309		3,427		11,207		27,943		407,033		434,976		1,127
Consumer
Real estate		1,395		1,167		2,081		4,643		92,221		96,864		-
Auto		143		28		24		195		15,008		15,203		-
Boat/RV		2,084		825		371		3,280		80,277		83,557		-
Other		227		5		89		321		6,439		6,760		-
	$	19,967	$	10,585	$	26,146	$	56,698	$	863,511	$	920,209	$	1,127

Impaired Loans.  

Loans are considered impaired in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.  Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties.  These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.

Loans are individually evaluated for impairment based on internal limits outlined in our lending policies. The current threshold for these evaluations is set at $250,000. Although all troubled debt restructurings are considered impaired loans they are not necessarily individually evaluated for impairment based on the guidelines noted previously.

Interest on impaired loans is recorded based on the performance of the loan.  All interest received on impaired loans that are on nonaccrual is accounted for on the cash-basis method until qualifying for return to accrual.  Interest is accrued per contract for impaired loans that are performing.

The following tables present impaired loans for the three and six month periods ended June 30, 2012 and 2011 and the year ended December 31, 2011.

	June 30, 2012
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans - Quarter		Average Investment in Impaired Loans - YTD		Interest Income Recognized - Quarter		Interest Income Recognized - YTD
Loans without a specific valuation allowance
Commercial
Real estate	$	5,005	$	7,224	$	-	$	5,765	$	6,165	$	61	$	109
Construction and development		3,082		5,992		-		3,755		4,531		17		33
Other		3,119		3,119		-		3,380		3,679		42		83
Residential Mortgage		3,267		4,355		-		3,579		4,179		20		51
Loans with a specific valuation allowance
Commercial
Real estate		518		518		43		259		173		-		-
Construction and development		6,509		7,050		1,296		6,684		6,742		16		27
Other		1,204		1,204		318		1,212		1,215		13		25
Residential Mortgage		531		531		36		532		534		-		-
Total
Commercial
Real estate	$	5,523	$	7,742	$	43	$	6,024	$	6,338	$	61	$	109
Construction and development	$	9,591	$	13,042	$	1,296	$	10,439	$	11,273	$	33	$	60
Other	$	4,323	$	4,323	$	318	$	4,592	$	4,894	$	55	$	108
Residential Mortgage	$	3,798	$	4,886	$	36	$	4,111	$	4,713	$	20	$	51

	December 31, 2011
							Average
			Unpaid				Investment in		Interest
	Recorded		Principal		Specific		Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
Loans without a specific valuation allowance
Commercial
Real estate	$	4,883	$	5,275	$	-	$	4,221	$	137
Construction and development		5,872		11,801		-		9,451		348
Other		4,030		4,167		-		1,480		211
Residential Mortgage		5,378		6,870		-		5,532		142
Loans with a specific valuation allowance
Commercial
Real estate		2,083		2,489		209		1,086		74
Construction and development		7,071		7,281		1,437		3,775		233
Other		1,470		1,524		543		246		60
Residential Mortgage		537		537		36		67		36
Total
Commercial
Real estate	$	6,966	$	7,764	$	209	$	5,307	$	211
Construction and development	$	12,943	$	19,082	$	1,437	$	13,226	$	581
Other	$	5,500	$	5,691	$	543	$	1,726	$	271
Residential Mortgage	$	5,915	$	7,407	$	36	$	5,599	$	178

	June 30, 2011
	Average Investment in Impaired Loans  - Quarter		Average Investment in Impaired  Loans - YTD		Interest Income Recognized - Quarter		Interest Income Recognized -  YTD
Loans without a specific valuation allowance
Commercial
Real estate	$	2,277	$	3,611	$	14	$	30
Construction and development		4,992		5,983		-		9
Other		754		757		-		-
Residential Mortgage		5,182		5,490		27		68
Loans with a specific valuation allowance
Commercial
Real estate		2,141		2,054		21		43
Construction and development		7,655		7,755		64		155
Residential Mortgage		508		508		2		7
Total
Commercial
Real estate	$	4,418	$	5,665	$	35	$	73
Construction and development	$	12,647	$	13,738	$	64	$	164
Other	$	754	$	757	$	-	$	-
Residential Mortgage	$	5,690	$	5,998	$	29	$	75

Commercial Loan Grades

Definition of Loan Grades.  Loan grades are numbered 1 through 8.  Grades 1-4 are "pass" credits, grade 5 [Special Mention] loans are "criticized" assets, and grades 6 [Substandard], 7 [Doubtful] and 8 [Loss] are "classified" assets.  The use and application of these grades by the Bank are uniform and conform to the Bank's policy and regulatory definitions.

Pass.  Pass credits are loans in grades prime through fair.  These are at least considered to be credits with acceptable risks and would be granted in the normal course of lending operations.

Special Mention.  Special mention credits have potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date.  If weaknesses cannot be identified, classifying as special mention is not appropriate.  Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification.  No apparent loss of principal or interest is expected.

Substandard.  Credits which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged.  Financial statements normally reveal some or all of the following:  poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection.  Credits so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful.  An  extension of credit “doubtful” has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.  The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.  Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.  A Doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded Substandard.  

Retail Loan Grades

Pass.  Pass credits are loans that are currently performing as agreed and are not troubled debt restructurings.

Substandard.  Substandard credits are loans that have reason to be considered to have a well defined weakness and placed on non-accrual.  This would include all retail loans over 90 days and troubled debt restructurings which were delinquent at the time of modification.

The following information presents the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2012 and December 31, 2011.

June 30, 2012
Commercial Credit Exposure Credit Risk Profile
Internal Rating	Real estate		Construction and Development		Other
Pass	$	173,242	$	8,971	$	57,608
Special Mention		10,675		172		312
Substandard		12,393		9,055		5,588
Doubtful		366		28		771
Total	$	196,776	$	18,226	$	64,279

Retail Credit Exposure Credit Risk Profile
	Mortgage		Consumer
	Residential		Real Estate		Auto		Boat/RV		Other
Pass	$	462,635	$	93,771	$	14,427	$	79,508	$	6,470
Special Mention		2,051		-		-		-		-
Substandard		13,795		2,620		55		1,184		71
Total	$	478,481	$	96,391	$	14,482	$	80,692	$	6,541

December 31, 2011
Commercial Credit Exposure Credit Risk Profile
			Construction
			and
Internal Rating	Real estate		Development		Other
Pass	$	167,991	$	8,093	$	56,691
Special Mention		11,940		538		880
Substandard		16,488		12,105		6,260
Doubtful		971		95		797
Total	$	197,390	$	20,831	$	64,628

Retail Credit Exposure Credit Risk Profile
	Mortgage		Consumer
	Residential		Real Estate		Auto		Boat/RV		Other
Pass	$	417,772	$	94,066	$	15,135	$	82,639	$	6,680
Special Mention		2,473		-		-		-		-
Substandard		14,731		2,798		68		918		80
Total	$	434,976	$	96,864	$	15,203	$	83,557	$	6,760

Allowance for Loan Losses.

We maintain an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the estimated losses inherent in the loan portfolio.  Our methodology for assessing the appropriateness of the allowance consists of several key elements, including the general allowance and specific allowances for identified problem loans and portfolio segments.  In addition, the allowance incorporates the results of measuring impaired loans as provided in FASB ASC 310, Receivables.  These accounting standards prescribe the measurement methods, income recognition and disclosures related to impaired loans. The general allowance is calculated by applying loss factors to outstanding loans based on the internal risk evaluation of such loans or pools of loans. Changes in risk evaluations of both performing and nonperforming loans affect the amount of the general allowance. Loss factors are based on our historical loss experience as well as on significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date.

The appropriateness of the allowance is reviewed by management based upon its evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions, such as credit quality trends (including trends in non-performing loans expected to result from existing conditions), collateral values, loan volumes and concentrations, specific industry conditions within portfolio segments and recent loss experience in particular segments of the portfolio that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan.  Senior management reviews these conditions quarterly in discussions with our senior credit officers.  To the extent that any of these conditions is evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s estimate of the effect of such condition may be reflected as a specific allowance applicable to such credit or portfolio segment.  Where any of these conditions is not evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s evaluation of the loss related to this condition is reflected in the general allowance for loan losses.  The evaluation of the inherent loss with respect to these conditions is subject to a higher degree of uncertainty because they are not identified with specific problem credits or portfolio segments.

The allowance for loan losses is based on estimates of losses inherent in the loan portfolio.  Actual losses can vary significantly from the estimated amounts.  Our methodology as described permits adjustments to any loss factor used in the computation of the general allowance in the event that, in management’s judgment, significant factors which affect the collectability of the portfolio as of the evaluation date are not reflected in the loss factors.  By assessing the probable incurred losses inherent in the loan portfolio on a quarterly basis, we are able to adjust specific and inherent loss estimates based upon any more recent information that has become available.  Due to the loss of numerous manufacturing jobs in the communities we serve during recent years and the increase in higher risk loans, like consumer and commercial loans, as a percentage of total loans, management has concluded that our allowance for loan losses should be greater than historical loss experience and specifically identified losses would otherwise indicate.

The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2012 and 2011 and year ended December 31, 2011.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments.

	Three Months Ended June 30, 2012
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	10,244	$	3,471	$	2,919	$	16,634
Provision charged to expense		1,035		625		190		1,850
Losses charged off		1,649		706		561		2,916
Recoveries		374		2		59		435
Balance, end of period	$	10,004	$	3,392	$	2,607	$	16,003

	Six Months Ended June 30, 2012
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,602	$	3,444	$	2,769	$	16,815
Provision charged to expense		1,425		1,091		684		3,200
Losses charged off		2,550		1,147		1,086		4,783
Recoveries		527		4		240		771
Balance, end of period	$	10,004	$	3,392	$	2,607	$	16,003
Ending balance:
Individually evaluated for impairment	$	1,657	$	36	$	-	$	1,693
Collectively evaluated for impairment	$	8,347	$	3,356	$	2,607	$	14,310
Loans:
Ending balance
Individually evaluated for impairment	$	19,437	$	3,798	$	-	$	23,235
Collectively evaluated for impairment	$	259,844	$	474,683	$	198,106	$	932,633

	Year Ended December 31, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,124	$	2,212	$	4,036	$	16,372
Provision charged to expense		8,592		4,390		118		13,100
Losses charged off		8,260		3,432		2,126		13,818
Recoveries		146		274		741		1,161
Balance, end of period	$	10,602	$	3,444	$	2,769	$	16,815
Ending balance:
Individually evaluated for impairment	$	2,189	$	36	$	-	$	2,225
Collectively evaluated for impairment	$	8,413	$	3,408	$	2,769	$	14,590
Loans:
Ending balance
Individually evaluated for impairment	$	25,409	$	5,915	$	-	$	31,324
Collectively evaluated for impairment	$	257,440	$	429,061	$	202,384	$	888,885

	Three Months Ended June 30, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	9,501	$	2,195	$	4,101	$	15,797
Provision charged to expense		580		700		420		1,700
Losses charged off		292		819		653		1,764
Recoveries		1		59		164		224
Balance, end of period	$	9,790	$	2,135	$	4,032	$	15,597

	Six Months Ended June 30, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,124	$	2,212	$	4,036	$	16,372
Provision charged to expense		3,230		2,000		670		5,900
Losses charged off		3,565		2,180		1,091		6,836
Recoveries		1		103		417		521
Balance, end of period	$	9,790	$	2,135	$	4,032	$	15,957

Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral.

For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge-down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged-off.

Information on non-performing assets, excluding performing restructured loans, is provided below:

	June 30,
	2012		2011
Non-performing assets
Non-accrual loans	$	24,575	$	23,652
Accruing loans 90 days + past due		290		1,038
Total non-performing loans		24,865		24,690
Foreclosed real estate		7,364		7,151
Other repossessed assets		601		937
Total non-performing assets	$	32,830	$	32,778

Troubled Debt Restructurings

Included in certain loan categories of impaired loans are certain loans that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties.  These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions.  Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances.

When we modify loans in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a specific reserve or a charge-off to the allowance.

Loans retain their accrual status at the time of their modification.  As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual until a period of satisfactory performance, generally six months, is obtained.  If a loan is on accrual at the time of the modification, the loan is evaluated to determine the collection of principal and interest is reasonably assured and generally stays on accrual.

The following tables provide detail regarding troubled debts restructured in the last three and six month periods.

	Three Months Ended June 30, 2012
			Pre- Modification		Post- Modification
			Outstanding		Outstanding
	No. of Loans		Recorded Balance		Recorded Balance
Commercial
Real Estate		2	$	518	$	678
Other		2		119		181
Residential Mortgage		10		1,008		1,110
Consumer
Real estate		3		66		67
Auto		1		8		8
Boat/RV		2		48		48
Other		2		15		14

	Six Months Ended June 30, 2012
			Pre- Modification		Post- Modification
			Outstanding		Outstanding
	No. of Loans		Recorded Balance		Recorded Balance
Commercial
Real Estate		3	$	921	$	1,081
Other		3		216		277
Residential Mortgage		19		1,736		1,861
Consumer
Real estate		10		391		393
Auto		1		7		7
Boat/RV		3		58		58
Other		2		16		15

The impact to the allowance for loan losses due to these modifications was insignificant.

Newly restructured loans by types are as follows:

	Three Months Ended June 30, 2012
	Interest Only		Term		Combination		Total Modification
Commercial
Real Estate	$	-	$	-	$	678	$	678
Other		-		181		-		181
Residential Mortgage		-		71		1,039		1,110
Consumer
Real estate		-		22		45		67
Auto		-		8		-		8
Boat/RV		-		48		-		48
Other		-		8		6		14

	Six Months Ended June 30, 2012
	Interest Only		Term		Combination		Total Modification
Commercial
Real Estate	$	-	$	403	$	678	$	1,081
Other		-		97		80		277
Residential Mortgage		320		133		1,408		1,861
Consumer
Real estate		-		335		58		393
Auto		-		7		-		7
Boat/RV		-		58		-		58
Other		-		8		7		15

We have had no defaults of any loans modified as troubled debt restructurings made since July 1, 2011. Default is defined as any loan that becomes more than 90 days past due.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2012

Accumulated Other Comprehensive Income

Note 5: Accumulated Other Comprehensive Income

The following table represents the components of accumulated other comprehensive income:

	June 30,			December 31,
	2012			2011
Net unrealized gain on securities available-for-sale	$	10,266		$	7,177
Net unrealized loss on securities available-for-sale for which a portion of other-than-temporary impairment has been recognized in income		(3,940	)		(4,299	)
Net unrealized loss on derivative used for cash flow hedges		(458	)		(472	)
Net unrealized loss relating to defined benefit plan liability		(448	)		(448	)
		5,420			1,958
Tax expense		1,961			755
Net-of-tax amount	$	3,459		$	1,203

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Disclosures About Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2012

Disclosures About Fair Value of Assets and Liabilities

Note 6: Disclosures About Fair Value of Assets and Liabilities

FASB Codification Topic 820 (ASC 820),Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  

The standard describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Items Measured at Fair Value on a Recurring Basis

Following is a description of the valuation methodologies and inputs used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.  The Company uses a third-party provider to provide market prices on its securities.  Level 1 securities include the marketable equity securities.  If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.  Level 2 securities include mortgage-backed, collateralized mortgage obligations, small business administration, marketable equity, municipal, federal agency and certain corporate obligation securities.  In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include certain corporate obligation securities.

Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on investment securities relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3.

Fair value determinations for Level 3 measurements of securities are the responsibility of the Treasury function of the Company.  The Company contracts with a pricing specialist to generate fair value estimates on a monthly basis.  The Treasury function of the Company challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States, analyzes the changes in fair value and compares these changes to internally developed expectations and monitors these changes for appropriateness.

The following table presents the fair value measurement of assets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy used for such fair value measurements:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2012
Mortgage-backed securities
Government sponsored agencies	$	215,667	$	-	$	215,667	$	-
Collateralized mortgage obligations
Government sponsored agencies		120,084		-		120,084		-
Federal agencies		3,020		-		3,020		-
Municipals		3,412		-		3,412		-
Small Business Administration		10		-		10		-
Corporate obligations		23,203		-		20,939		2,264
Available-for-sale securities	$	365,396	$	-	$	363,132	$	2,264
December 31, 2011
Mortgage-backed securities
Government sponsored agencies	$	202,846	$	-	$	202,846	$	-
Collateralized mortgage obligations
Government sponsored agencies		100,061		-		100,061		-
Federal agencies		2,002		-		2,002		-
Municipals		3,558		-		3,558		-
Small Business Administration		12		-		12		-
Corporate obligations		22,399		-		19,945		2,454
Available-for-sale securities	$	330,878	$	-	$	328,424	$	2,454

The following is a reconciliation of the beginning and ending balances for the three months ended June 30, 2012 and 2011 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2012			2011
Beginning balance	$	2,465		$	2,924
Total realized and unrealized gains and losses
Included in net income		-			-
Included in other comprehensive loss		(201	)		21
Purchases, issuances and settlements		-			13
Ending balance	$	2,264		$	2,958
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-		$	-

The following is a reconciliation of the beginning and ending balances for the six months ended June 30, 2012 and 2011 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2012			2011
Beginning balance	$	2,454		$	2,645
Total realized and unrealized gains and losses
Included in net income		-			(193	)
Included in other comprehensive loss		(178	)		475
Purchases, issuances and settlements		(12	)		31
Ending balance	$	2,264		$	2,958
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-		$	(193	)

Items Measured at Fair Value on a Non-Recurring Basis

From time to time, certain assets may be recorded at fair value on a non-recurring basis.  These non-recurring fair value adjustments typically are a result of the application of lower of cost or fair value accounting or a write-down occurring during the period.  The following is a description of the valuation methodologies used for certain assets that are recorded at fair value.

Impaired Loans (Collateral Dependent)

Loans for which it is probable that Mutual will not collect all principal and interest due according to contractual terms are measured for impairment.  Allowable methods for determining the amount of impairment include estimating fair value include using the fair value of the collateral for collateral dependent loans.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized.  This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.

Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Other Real Estate Owned

The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis.

The estimated fair value of other real estate owned is based on current appraisal, less discount to reflect realizable value and estimated cost to sell.  Other real estate owned is classified within Level 3 of the fair value hierarchy.  Appraisals of other real estate owned are obtained when the real estate is acquired and subsequently as deemed necessary by the asset classification committee.  The Risk Management division reviews the appraisals for accuracy and consistency.  Appraisals are selected from the list of approved appraisers maintained by the Board.  The reductions in fair value of other real estate owned was $413,000 and $268,000 for the six months ended June 30, 2012 and 2011, respectively. The changes were recorded as adjustments to current earnings through other real estate owned related expenses.

Mortgage-Servicing Rights

We initially measure our mortgage servicing rights at fair value, and amortize them over the period of estimated net servicing income. They are periodically assessed for impairment based on fair value at the reporting date. Mortgage-servicing rights do not trade in an active market with readily observable prices. Accordingly, the fair value is estimated based on a valuation model which calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates and other ancillary income, including late fees. The fair value measurements are classified as Level 3.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2012
Impaired loans (collateral dependent)	$	3,011	$	-	$	-	$	3,011
Foreclosed real estate		1,937		-		-		1,937
Mortgage-servicing rights		2,109		-		-		2,109
December 31, 2011
Impaired loans (collateral dependent)	$	16,511	$	-	$	-	$	16,511
Foreclosed real estate		202		-		-		202
Mortgage-servicing rights		2,626		-		-		2,626

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

	Fair Value at June 30, 2012		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,264	Discounted cash flow	Discount rate	9.0% - 18.0%
				Constant prepayment rate	2%
				Cumulative projected prepayments	0.0%-20.0%
				Probability of default	1.6%-2.5%
				Projected cures given deferral	0%-15.0%
				Loss severity	56.7% – 81.4%
Impaired loans (collateral dependent)	$	3,011	Third party valuations	Discount to reflect realizable value	0%-40%
Foreclosed real estate	$	1,937	Third party valuations	Discount to reflect realizable value less estimated selling costs	0%-25%

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated condensed balance sheets as of dates noted below are as follows:

					Fair Value Measurements Using
June 30,  2012	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	23,590	$	23,590	$	23,590	$	-	$	-
Loans held for sale		8,598		8,915		-		8,915		-
Loans		938,420		972,673		-		-		972,673
FHLB stock		14,391		14,391		-		14,391		-
Interest receivable		3,723		3,723		-		3,723		-
Liabilities
Deposits		1,171,500		1,186,807		577,464		-		609,343
FHLB advances		136,574		138,119		-		138,119		-
Other borrowings		12,014		13,070		-		13,070		-
Interest payable		405		405		-		405		-
Advances by borrowers for taxes and insurance		2,013		2,013		-		2,013		-

	December 31, 2011
	Carrying Amount		Fair Value
Assets
Cash and cash equivalents	$	55,223	$	55,223
Interest-bearing deposits		1,415		1,415
Loans held for sale		1,441		1,459
Loans		900,460		921,212
FHLB stock		14,391		14,391
Interest receivable		4,248		4,248
Liabilities
Deposits	$	1,166,637	$	1,132,031
FHLB advances		101,451		103,980
Other borrowings		12,410		13,083
Interest payable		340		340
Advances by borrowers for taxes and insurance		1,720		1,720

The following methods and assumptions were used to estimate the fair value of each class of financial instruments listed above:

Cash and Cash Equivalents - The fair value of cash and cash equivalents approximates carrying value.

Interest-Bearing Deposits - The fair value of interest-bearing deposits approximates carrying value.

Loans Held For Sale - Fair values are based on current investor purchase commitments.

Loans - The fair value for loans is estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

FHLB Stock - Fair value of FHLB stock is based on the price at which it may be resold to the FHLB.

Interest Receivable/Payable - The fair values of interest receivable/payable approximate carrying values.

Deposits - The fair values of noninterest-bearing, interest-bearing demand and savings accounts are equal to the amount payable on demand at the balance sheet date.  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on such time deposits.

Federal Home Loan Bank Advances - The fair value of these borrowings are estimated using a discounted cash flow calculation, based on current rates for similar debt for periods comparable to the remaining terms to maturity of these advances.

Other Borrowings - The fair value of other borrowings are estimated using a discount calculation based on current rates.

Advances by Borrowers for Taxes and Insurance - The fair value approximates carrying value.

Off-Balance Sheet Commitments - Commitments include commitments to purchase and originate mortgage loans, commitments to sell mortgage loans, and standby letters of credit and are generally of a short-term nature.  The fair values of such commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.  The fair value of commitments is immaterial.

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Borrowings

6 Months Ended

Jun. 30, 2012

Borrowings

Note 8: Borrowings

Other borrowings decreased $418,000 in the first half of 2012.  These other borrowings consisted of a note from First Tennessee Bank, N.A. of $8.0 million and a subordinated debenture of $4.0 million.

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Disclosures About Fair Value of Assets and Liabilities - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Reductions in fair value of other real estate owned	$ 413,000	$ 268,000

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Loans (Tables)

6 Months Ended

Jun. 30, 2012

Categories of Loans

Categories of loans at June 30, 2012 and December 31, 2011 include:

	June 30,			December 31,
	2012			2011
Commercial
Real estate	$	196,776		$	197,390
Construction and development		18,226			20,831
Other		64,279			64,628
		279,281			282,849
Residential Mortgage
One- to four- family		478,481			434,976
Consumer loans
Auto		14,482			15,203
Residential		96,391			96,864
Boat/RVs		80,692			83,557
Other		6,541			6,760
		198,106			202,384
Total loans		955,868			920,209
Undisbursed loans in process		(3,847	)		(5,352	)
Unamortized deferred loan costs, net		2,402			2,418
Allowance for loan losses		(16,003	)		(16,815	)
Net loans	$	938,420		$	900,460

Non-Accrual Loans Segregated by Class of Loans

Non-accrual loans, segregated by class of loans, as of June 30, 2012 and December 31, 2011 are as follows:

	June 30,		December 31,
	2012		2011
Commercial
Real Estate	$	4,409	$	7,592
Construction and development		6,478		9,314
Other		1,139		1,160
Residential Mortgage		9,732		10,080
Consumer
Real estate		1,956		2,081
Auto		40		24
Boat/RV		765		371
Other		56		89
	$	24,575	$	30,711

Age Analysis of Past Due Loans Segregated by Class of Loans

An age analysis of Company’s past due loans, segregated by class of loans, as of June 30, 2012 and December 31, 2011 is as follows:

	June 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
Commercial
Real Estate	$	397	$	711	$	3,703	$	4,811	$	191,965	$	196,776	$	-
Construction and development		1,199		116		5,613		6,928		11,298		18,226		-
Other		147		197		869		1,213		63,066		64,279		-
Residential Mortgage		10,304		2,702		8,496		21,502		456,979		478,481		290
Consumer
Real estate		1,051		340		1,696		3,087		93,304		96,391		-
Auto		52		11		32		95		14,387		14,482		-
Boat/RV		1,515		461		419		2,395		78,297		80,692		-
Other		127		35		17		179		6,362		6,541		-
	$	14,792	$	4,573	$	20,845	$	40,210	$	915,658	$	955,868	$	290

	December 31, 2011
													Total Loans
					Greater						Total		> 90 Days
	30-59 Days		60-89 Days		Than 90		Total Past				Loans		and
	Past Due		Past Due		Days		Due		Current		Receivable		Accruing
Commercial
Real Estate	$	1,173	$	1,439	$	6,569	$	9,181	$	188,209	$	197,390	$	-
Construction  and development		845		3,595		4,850		9,290		11,541		20,831		-
Other		791		99		955		1,845		62,783		64,628		-
Residential Mortgage		13,309		3,427		11,207		27,943		407,033		434,976		1,127
Consumer
Real estate		1,395		1,167		2,081		4,643		92,221		96,864		-
Auto		143		28		24		195		15,008		15,203		-
Boat/RV		2,084		825		371		3,280		80,277		83,557		-
Other		227		5		89		321		6,439		6,760		-
	$	19,967	$	10,585	$	26,146	$	56,698	$	863,511	$	920,209	$	1,127

Impaired Loans

The following tables present impaired loans for the three and six month periods ended June 30, 2012 and 2011 and the year ended December 31, 2011.

	June 30, 2012
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans - Quarter		Average Investment in Impaired Loans - YTD		Interest Income Recognized - Quarter		Interest Income Recognized - YTD
Loans without a specific valuation allowance
Commercial
Real estate	$	5,005	$	7,224	$	-	$	5,765	$	6,165	$	61	$	109
Construction and development		3,082		5,992		-		3,755		4,531		17		33
Other		3,119		3,119		-		3,380		3,679		42		83
Residential Mortgage		3,267		4,355		-		3,579		4,179		20		51
Loans with a specific valuation allowance
Commercial
Real estate		518		518		43		259		173		-		-
Construction and development		6,509		7,050		1,296		6,684		6,742		16		27
Other		1,204		1,204		318		1,212		1,215		13		25
Residential Mortgage		531		531		36		532		534		-		-
Total
Commercial
Real estate	$	5,523	$	7,742	$	43	$	6,024	$	6,338	$	61	$	109
Construction and development	$	9,591	$	13,042	$	1,296	$	10,439	$	11,273	$	33	$	60
Other	$	4,323	$	4,323	$	318	$	4,592	$	4,894	$	55	$	108
Residential Mortgage	$	3,798	$	4,886	$	36	$	4,111	$	4,713	$	20	$	51

	December 31, 2011
							Average
			Unpaid				Investment in		Interest
	Recorded		Principal		Specific		Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
Loans without a specific valuation allowance
Commercial
Real estate	$	4,883	$	5,275	$	-	$	4,221	$	137
Construction and development		5,872		11,801		-		9,451		348
Other		4,030		4,167		-		1,480		211
Residential Mortgage		5,378		6,870		-		5,532		142
Loans with a specific valuation allowance
Commercial
Real estate		2,083		2,489		209		1,086		74
Construction and development		7,071		7,281		1,437		3,775		233
Other		1,470		1,524		543		246		60
Residential Mortgage		537		537		36		67		36
Total
Commercial
Real estate	$	6,966	$	7,764	$	209	$	5,307	$	211
Construction and development	$	12,943	$	19,082	$	1,437	$	13,226	$	581
Other	$	5,500	$	5,691	$	543	$	1,726	$	271
Residential Mortgage	$	5,915	$	7,407	$	36	$	5,599	$	178

	June 30, 2011
	Average Investment in Impaired Loans  - Quarter		Average Investment in Impaired  Loans - YTD		Interest Income Recognized - Quarter		Interest Income Recognized -  YTD
Loans without a specific valuation allowance
Commercial
Real estate	$	2,277	$	3,611	$	14	$	30
Construction and development		4,992		5,983		-		9
Other		754		757		-		-
Residential Mortgage		5,182		5,490		27		68
Loans with a specific valuation allowance
Commercial
Real estate		2,141		2,054		21		43
Construction and development		7,655		7,755		64		155
Residential Mortgage		508		508		2		7
Total
Commercial
Real estate	$	4,418	$	5,665	$	35	$	73
Construction and development	$	12,647	$	13,738	$	64	$	164
Other	$	754	$	757	$	-	$	-
Residential Mortgage	$	5,690	$	5,998	$	29	$	75

Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating

The following information presents the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2012 and December 31, 2011.

June 30, 2012
Commercial Credit Exposure Credit Risk Profile
Internal Rating	Real estate		Construction and Development		Other
Pass	$	173,242	$	8,971	$	57,608
Special Mention		10,675		172		312
Substandard		12,393		9,055		5,588
Doubtful		366		28		771
Total	$	196,776	$	18,226	$	64,279

Retail Credit Exposure Credit Risk Profile
	Mortgage		Consumer
	Residential		Real Estate		Auto		Boat/RV		Other
Pass	$	462,635	$	93,771	$	14,427	$	79,508	$	6,470
Special Mention		2,051		-		-		-		-
Substandard		13,795		2,620		55		1,184		71
Total	$	478,481	$	96,391	$	14,482	$	80,692	$	6,541

December 31, 2011
Commercial Credit Exposure Credit Risk Profile
			Construction
			and
Internal Rating	Real estate		Development		Other
Pass	$	167,991	$	8,093	$	56,691
Special Mention		11,940		538		880
Substandard		16,488		12,105		6,260
Doubtful		971		95		797
Total	$	197,390	$	20,831	$	64,628

Retail Credit Exposure Credit Risk Profile
	Mortgage		Consumer
	Residential		Real Estate		Auto		Boat/RV		Other
Pass	$	417,772	$	94,066	$	15,135	$	82,639	$	6,680
Special Mention		2,473		-		-		-		-
Substandard		14,731		2,798		68		918		80
Total	$	434,976	$	96,864	$	15,203	$	83,557	$	6,760

Activity in Allowance for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2012 and 2011 and year ended December 31, 2011.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments.

	Three Months Ended June 30, 2012
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	10,244	$	3,471	$	2,919	$	16,634
Provision charged to expense		1,035		625		190		1,850
Losses charged off		1,649		706		561		2,916
Recoveries		374		2		59		435
Balance, end of period	$	10,004	$	3,392	$	2,607	$	16,003

	Six Months Ended June 30, 2012
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,602	$	3,444	$	2,769	$	16,815
Provision charged to expense		1,425		1,091		684		3,200
Losses charged off		2,550		1,147		1,086		4,783
Recoveries		527		4		240		771
Balance, end of period	$	10,004	$	3,392	$	2,607	$	16,003
Ending balance:
Individually evaluated for impairment	$	1,657	$	36	$	-	$	1,693
Collectively evaluated for impairment	$	8,347	$	3,356	$	2,607	$	14,310
Loans:
Ending balance
Individually evaluated for impairment	$	19,437	$	3,798	$	-	$	23,235
Collectively evaluated for impairment	$	259,844	$	474,683	$	198,106	$	932,633

	Year Ended December 31, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,124	$	2,212	$	4,036	$	16,372
Provision charged to expense		8,592		4,390		118		13,100
Losses charged off		8,260		3,432		2,126		13,818
Recoveries		146		274		741		1,161
Balance, end of period	$	10,602	$	3,444	$	2,769	$	16,815
Ending balance:
Individually evaluated for impairment	$	2,189	$	36	$	-	$	2,225
Collectively evaluated for impairment	$	8,413	$	3,408	$	2,769	$	14,590
Loans:
Ending balance
Individually evaluated for impairment	$	25,409	$	5,915	$	-	$	31,324
Collectively evaluated for impairment	$	257,440	$	429,061	$	202,384	$	888,885

	Three Months Ended June 30, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	9,501	$	2,195	$	4,101	$	15,797
Provision charged to expense		580		700		420		1,700
Losses charged off		292		819		653		1,764
Recoveries		1		59		164		224
Balance, end of period	$	9,790	$	2,135	$	4,032	$	15,597

	Six Months Ended June 30, 2011
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	10,124	$	2,212	$	4,036	$	16,372
Provision charged to expense		3,230		2,000		670		5,900
Losses charged off		3,565		2,180		1,091		6,836
Recoveries		1		103		417		521
Balance, end of period	$	9,790	$	2,135	$	4,032	$	15,957

Non-Performing Assets excluding Restructured Loans

Information on non-performing assets, excluding performing restructured loans, is provided below:

	June 30,
	2012		2011
Non-performing assets
Non-accrual loans	$	24,575	$	23,652
Accruing loans 90 days + past due		290		1,038
Total non-performing loans		24,865		24,690
Foreclosed real estate		7,364		7,151
Other repossessed assets		601		937
Total non-performing assets	$	32,830	$	32,778

Troubled Debts Restructured

The following tables provide detail regarding troubled debts restructured in the last three and six month periods.

	Three Months Ended June 30, 2012
			Pre- Modification		Post- Modification
			Outstanding		Outstanding
	No. of Loans		Recorded Balance		Recorded Balance
Commercial
Real Estate		2	$	518	$	678
Other		2		119		181
Residential Mortgage		10		1,008		1,110
Consumer
Real estate		3		66		67
Auto		1		8		8
Boat/RV		2		48		48
Other		2		15		14

	Six Months Ended June 30, 2012
			Pre- Modification		Post- Modification
			Outstanding		Outstanding
	No. of Loans		Recorded Balance		Recorded Balance
Commercial
Real Estate		3	$	921	$	1,081
Other		3		216		277
Residential Mortgage		19		1,736		1,861
Consumer
Real estate		10		391		393
Auto		1		7		7
Boat/RV		3		58		58
Other		2		16		15

Newly Restructured Loans by Types

Newly restructured loans by types are as follows:

	Three Months Ended June 30, 2012
	Interest Only		Term		Combination		Total Modification
Commercial
Real Estate	$	-	$	-	$	678	$	678
Other		-		181		-		181
Residential Mortgage		-		71		1,039		1,110
Consumer
Real estate		-		22		45		67
Auto		-		8		-		8
Boat/RV		-		48		-		48
Other		-		8		6		14

	Six Months Ended June 30, 2012
	Interest Only		Term		Combination		Total Modification
Commercial
Real Estate	$	-	$	403	$	678	$	1,081
Other		-		97		80		277
Residential Mortgage		320		133		1,408		1,861
Consumer
Real estate		-		335		58		393
Auto		-		7		-		7
Boat/RV		-		58		-		58
Other		-		8		7		15

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Investments - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Investment [Line Items]
Securities pledged as collateral	$ 2,600,000
Gross realized gain on sale of securities	480,000	75,000
Gross realized losses on sale of securities	0	0
Recognized other-than-temporary impairment losses	0	193,000
Fair value of Investments	13,800,000		28,500,000
Percentage of Bank portfolio	4.00%		9.00%
Pooled Trust Preferred Securities
Investment [Line Items]
Gross realized losses on sale of securities
Securities, amortized cost	6,741,000
Securities, par value	8,000,000
Securities, fair value	$ 2,264,000
Banks, thrifts or other depository institutions
Investment [Line Items]
Collateral recovery probability percentage	10.00%
Insurance Companies
Investment [Line Items]
Collateral recovery probability percentage	15.00%

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Loans - Additional Information (Detail) (USD $)	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold evaluations currently set	$ 250,000
Past due loans defined as default	90 days

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Consolidated Condensed Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income	$ 1,644	$ 1,681	$ 3,070	$ 988
Other comprehensive income:
Net unrealized holding gain on securities available-for-sale	2,030	5,612	4,081	7,922
Net unrealized losses on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income	(139)	862	(152)	282
Less: Reclassification adjustment for realized (gains) losses included in net income	(283)	(1)	(480)	118
Net unrealized gain on derivative used for cash flow hedges		(103)	14	(43)
Income taxes related to other comprehensive income	(570)	(2,269)	(1,207)	(2,920)
Other comprehensive income	1,038	4,101	2,256	5,359
Comprehensive income	$ 2,682	$ 5,782	$ 5,317	$ 6,347

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Earnings per share

6 Months Ended

Jun. 30, 2012

Earnings per share

Note 2: Earnings per share

Earnings per share were computed as follows:

	Three Months Ended June 30,
	2012							2011
				Weighted-							Weighted-
	Net			Average		Per-Share		Net			Average		Per-Share
	Income			Shares		Amount		Income			Shares		Amount
Basic Earnings Per Share
Net income	$	1,644			6,933,255			$	1,681			6,903,151	$	0.24
Dividends and accretion on preferred stock		(362	)						(451	)
Income available to common stockholders	$	1,282			6,933,255	$	0.18	$	1,230			6,903,151	$	0.18
Effect of Dilutive securities
Stock options and RRP grants					55,624							102,731
Diluted Earnings Per Share
Income available to common stockholders and assumed conversions	$	1,282			6,988,879	$	0.18	$	1,230			7,005,882	$	0.18

	Six Months Ended June 30,
	2012							2011
				Weighted-							Weighted-
	Net			Average		Per-Share		Net			Average		Per-Share
	Income			Shares		Amount		Income			Shares		Amount
Basic Earnings Per Share
Net income	$	3,070			6,933,255			$	988			6,898,195
Dividends and accretion on preferred stock		(723	)						(902	)
Income available to common stockholders	$	2,347			6,933,255	$	0.34	$	86			6,898,195	$	0.01
Effect of Dilutive securities
Stock options and RRP grants					83,738							126,725
Diluted Earnings Per Share
Income available to common stockholders and assumed conversions	$	2,347			7,016,993	$	0.33	$	86			7,024,920	$	0.01

Options to purchase 266,185 and 434,887 shares of common stock were outstanding at June 30, 2012 and 2011, respectively, but were not included in the computation of diluted EPS above, because the average exercise price of the options was greater than the average market price of the common shares. A warrant to purchase 625,135 shares of common stock at $7.77 per share was outstanding at June 30, 2011, but not included in the calculation above due to being anti-dilutive to earnings per share. As of June 30, 2012, there were no warrants outstanding.

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Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Collateralized mortgage obligations, Government sponsored agencies
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	$ 2,987	$ 5,076
Less than 12 months, Unrealized Losses	(7)	(6)
Total, Fair Value	2,987	5,076
Total, Unrealized Losses	(7)	(6)
Municipals
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	866	971
Less than 12 months, Unrealized Losses	(25)	(14)
Total, Fair Value	866	971
Total, Unrealized Losses	(25)	(14)
Corporate obligations
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	7,642	19,957
Less than 12 months, Unrealized Losses	(189)	(790)
12 months or more, Fair Value	2,264	2,454
12 months or more, Unrealized Losses	(4,479)	(4,299)
Total, Fair Value	9,906	22,411
Total, Unrealized Losses	(4,668)	(5,089)
Total temporarily impaired securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	11,495	26,004
Less than 12 months, Unrealized Losses	(221)	(810)
12 months or more, Fair Value	2,264	2,454
12 months or more, Unrealized Losses	(4,479)	(4,299)
Total, Fair Value	13,759	28,458
Total, Unrealized Losses	$ (4,700)	$ (5,109)

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Categories of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 955,868		$ 920,209
Undisbursed loans in process	(3,847)		(5,352)
Unamortized deferred loan costs, net	2,402		2,418
Allowance for loan losses	(16,003)	(16,634)	(16,815)	(15,957)	(15,797)	(16,372)
Net loans	938,420		900,460
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	279,281		282,849
Allowance for loan losses	(10,004)	(10,244)	(10,602)	(9,790)	(9,501)	(10,124)
Commercial | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	196,776		197,390
Commercial | Construction and development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	18,226		20,831
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	64,279		64,628
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	478,481		434,976
Allowance for loan losses	(3,392)	(3,471)	(3,444)	(2,135)	(2,195)	(2,212)
Residential Mortgage | One- to four- family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	478,481		434,976
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	198,106		202,384
Allowance for loan losses	(2,607)	(2,919)	(2,769)	(4,032)	(4,101)	(4,036)
Consumer loans | Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	96,391		96,864
Consumer loans | Auto
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	14,482		15,203
Consumer loans | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	96,391		96,864
Consumer loans | Boat/RV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	80,692		83,557
Consumer loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 6,541		$ 6,760

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Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurement of Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value measurement of assets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy used for such fair value measurements:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2012
Mortgage-backed securities
Government sponsored agencies	$	215,667	$	-	$	215,667	$	-
Collateralized mortgage obligations
Government sponsored agencies		120,084		-		120,084		-
Federal agencies		3,020		-		3,020		-
Municipals		3,412		-		3,412		-
Small Business Administration		10		-		10		-
Corporate obligations		23,203		-		20,939		2,264
Available-for-sale securities	$	365,396	$	-	$	363,132	$	2,264
December 31, 2011
Mortgage-backed securities
Government sponsored agencies	$	202,846	$	-	$	202,846	$	-
Collateralized mortgage obligations
Government sponsored agencies		100,061		-		100,061		-
Federal agencies		2,002		-		2,002		-
Municipals		3,558		-		3,558		-
Small Business Administration		12		-		12		-
Corporate obligations		22,399		-		19,945		2,454
Available-for-sale securities	$	330,878	$	-	$	328,424	$	2,454

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

The following is a reconciliation of the beginning and ending balances for the three months ended June 30, 2012 and 2011 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2012			2011
Beginning balance	$	2,465		$	2,924
Total realized and unrealized gains and losses
Included in net income		-			-
Included in other comprehensive loss		(201	)		21
Purchases, issuances and settlements		-			13
Ending balance	$	2,264		$	2,958
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-		$	-

The following is a reconciliation of the beginning and ending balances for the six months ended June 30, 2012 and 2011 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2012			2011
Beginning balance	$	2,454		$	2,645
Total realized and unrealized gains and losses
Included in net income		-			(193	)
Included in other comprehensive loss		(178	)		475
Purchases, issuances and settlements		(12	)		31
Ending balance	$	2,264		$	2,958
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-		$	(193	)

Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2012
Impaired loans (collateral dependent)	$	3,011	$	-	$	-	$	3,011
Foreclosed real estate		1,937		-		-		1,937
Mortgage-servicing rights		2,109		-		-		2,109
December 31, 2011
Impaired loans (collateral dependent)	$	16,511	$	-	$	-	$	16,511
Foreclosed real estate		202		-		-		202
Mortgage-servicing rights		2,626		-		-		2,626

Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

	Fair Value at June 30, 2012		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,264	Discounted cash flow	Discount rate	9.0% - 18.0%
				Constant prepayment rate	2%
				Cumulative projected prepayments	0.0%-20.0%
				Probability of default	1.6%-2.5%
				Projected cures given deferral	0%-15.0%
				Loss severity	56.7% – 81.4%
Impaired loans (collateral dependent)	$	3,011	Third party valuations	Discount to reflect realizable value	0%-40%
Foreclosed real estate	$	1,937	Third party valuations	Discount to reflect realizable value less estimated selling costs	0%-25%

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated condensed balance sheets as of dates noted below are as follows:

					Fair Value Measurements Using
June 30,  2012	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	23,590	$	23,590	$	23,590	$	-	$	-
Loans held for sale		8,598		8,915		-		8,915		-
Loans		938,420		972,673		-		-		972,673
FHLB stock		14,391		14,391		-		14,391		-
Interest receivable		3,723		3,723		-		3,723		-
Liabilities
Deposits		1,171,500		1,186,807		577,464		-		609,343
FHLB advances		136,574		138,119		-		138,119		-
Other borrowings		12,014		13,070		-		13,070		-
Interest payable		405		405		-		405		-
Advances by borrowers for taxes and insurance		2,013		2,013		-		2,013		-

	December 31, 2011
	Carrying Amount		Fair Value
Assets
Cash and cash equivalents	$	55,223	$	55,223
Interest-bearing deposits		1,415		1,415
Loans held for sale		1,441		1,459
Loans		900,460		921,212
FHLB stock		14,391		14,391
Interest receivable		4,248		4,248
Liabilities
Deposits	$	1,166,637	$	1,132,031
FHLB advances		101,451		103,980
Other borrowings		12,410		13,083
Interest payable		340		340
Advances by borrowers for taxes and insurance		1,720		1,720