10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

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 EXCHANGE ACT OF 1934

For the transition period from ______________to______________________

Commission file number: 333-90273

FIDELITY D & D BANCORP, INC.

STATE OF INCORPORATION:	IRS EMPLOYER IDENTIFICATION NO:
PENNSYLVANIA	23-3017653

Address of principal executive offices:

BLAKELY & DRINKER ST.

DUNMORE, PENNSYLVANIA 18512

TELEPHONE:

570-342-8281

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 subjected to such filing requirements for the past 90 days. x YES ¨ 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). x YES ¨ 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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨ YES x NO

The number of outstanding shares of Common Stock of Fidelity D & D Bancorp, Inc. on July 31, 2012, the latest practicable date, was 2,290,515 shares.

Explanatory Note

The sole purpose of this Amendment No. 1 to Fidelity D & D Bancorp, Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed with the Securities and Exchange Commission on August 10, 2012 (the “Form 10-Q”), is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405(a) (2) (ii) of Regulation S-T. Exhibit 101 consists of the interactive data files that were not included in the Form 10-Q, as allowed by the 30-day grace period for the first quarterly period in which detailed footnote tagging is required.

This Amendment No. 1 does not otherwise change or update the disclosures set forth in the Form 10-Q as originally filed and does not otherwise reflect events occurring after the original filing of the Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files contained in Exhibit 101 are not deemed filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections.

Signatures

FIDELITY D & D BANCORP, INC.

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

	Fidelity D & D Bancorp, Inc.
Date: September 10, 2012	/s/ Daniel J. Santaniello
	Daniel J. Santaniello,
	President and Chief Executive Officer

	Fidelity D & D Bancorp, Inc.
Date: September 10, 2012	/s/ Salvatore R. DeFrancesco, Jr.
	Salvatore R. DeFrancesco, Jr.,
	Treasurer and Chief Financial Officer

Item 6. Exhibits

*31.1 Rule 13a-14(a) Certification of Principal Executive Officer.

*31.2 Rule 13a-14(a) Certification of Principal Financial Officer.

*32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

**101 Interactive data files: The following, from Fidelity D&D Bancorp, Inc.’s. Quarterly Report on Form 10- Q for the quarter ended June 30, 2012, is formatted in XBRL (eXtensible Business Reporting Language): Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011; Consolidated Statements of Income for the three- and six-months ended June 30, 2012 and June 30, 2011; Consolidated Statements of Comprehensive Income for the three- and six- months ended June 30, 2012 and June 30, 2011; Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2012 and June 30, 2011, Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and June 30, 2011 and Notes to Consolidated Financial Statements.

________________________________________________

* These exhibits were previously included or incorporated by reference in the Form 10-Q filed on August 10, 2012.

** Furnished with this report.

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Earnings Per Share (Narrative) (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Earnings Per Share [Abstract]
Diluted potential common shares	151	151

XML

Fair Value Measurements (Changes In Level 3 Financial Instruments) (Tables) (Details) (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]
Net impairment losses on investment securities recognized in earnings	$ 31	$ 0	$ 136	$ 75
Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance At Beginning Of Period			1,466	1,453
Net impairment losses on investment securities recognized in earnings			(136)	(75)
Gains	410	206	410	206
Losses	108	243	108	243
Pay Down / Settlement			(47)	(28)
Interest Paid In Kind	14	6	14	6
Accretion	2	2	2	2
Balance At End Of Period	$ 1,601	$ 1,321	$ 1,601	$ 1,321

XML

Loans (Non-Accrual Loans Table) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 13,486	$ 13,962
Commercial and industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	273	458
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,357	2,406
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	5,817	6,288
Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,138	656
Consumer: Home equity installment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	835	1,017
Consumer: Home equity line of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	435	730
Consumer: Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	20
Residential: Real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,541	2,329
Residential: Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 70	$ 78

XML

Investment Securities (Unrealized Gain/Loss On Investments) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Held-to-maturity Securities	$ 338	$ 389
Available-for-sale Securities, Amortized Cost Basis	110,983	109,836
Available-For-Sale Securities Gross Unrealized Gain	4,441	3,794
Available-For-Sale Securities Gross Unrealized Losses	4,953	5,476
Total Available-For-Sale Securities Fair Value	110,471	108,154
Agency - GSE [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	24,741	25,773
Available-For-Sale Securities Gross Unrealized Gain	93	108
Available-For-Sale Securities Gross Unrealized Losses	9	8
Total Available-For-Sale Securities Fair Value	24,825	25,873
Obligations of states and political subdivisions [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	28,415	28,402
Available-For-Sale Securities Gross Unrealized Gain	2,410	1,937
Available-For-Sale Securities Gross Unrealized Losses		180
Total Available-For-Sale Securities Fair Value	30,825	30,159
Pooled trust preferred securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	6,407	6,574
Available-For-Sale Securities Gross Unrealized Gain	128	123
Available-For-Sale Securities Gross Unrealized Losses	4,934	5,231
Total Available-For-Sale Securities Fair Value	1,601	1,466
MBS - GSE [Member]
Schedule of Investments [Line Items]
Held-to-maturity Securities	338	389
Held-To-Maturity Securities Gross Unrealized Gain	39	42
Held-To-Maturity Securities Fair Value	377	431
Available-for-sale Securities, Amortized Cost Basis	51,125	48,792
Available-For-Sale Securities Gross Unrealized Gain	1,660	1,482
Available-For-Sale Securities Gross Unrealized Losses	10	57
Total Available-For-Sale Securities Fair Value	52,775	50,217
Total debt securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	110,688	109,541
Available-For-Sale Securities Gross Unrealized Gain	4,291	3,650
Available-For-Sale Securities Gross Unrealized Losses	4,953	5,476
Total Available-For-Sale Securities Fair Value	110,026	107,715
Equity securities - financial services [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	295	295
Available-For-Sale Securities Gross Unrealized Gain	150	144
Total Available-For-Sale Securities Fair Value	$ 445	$ 439

XML

Fair Value Measurements (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0
Owned Pooled Trust Preferred Securities	13
Available-for-sale Securities, Amortized Cost Basis	110,983,000	109,836,000
Available-for-sale Securities	110,471,000	108,154,000
Fair Value Inputs, Loss Severity	100.00%
Fair Value Inputs, Prepayment Rate	0.00%
Pooled trust preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Original Par Value	22,300,000
Available-for-sale Securities, Amortized Cost Basis	6,407,000	6,574,000
Available-for-sale Securities	$ 1,601,000	$ 1,466,000
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Probability of Default	4.62%
Fair Value Inputs, Adjustment to Appraisal Value	(54.50%)
Fair Value Inputs, Comparability Adjustments	(32.20%)
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Probability of Default	4.50%
Fair Value Inputs, Discount Rate	0.00%
Fair Value Inputs, Adjustment to Appraisal Value	0.00%
Fair Value Inputs, Comparability Adjustments	(15.00%)
Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Adjustment to Appraisal Value	(24.70%)
Fair Value Inputs, Comparability Adjustments	(23.70%)
Same Industry Default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Probability of Default	50.00%
Across Industry Default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Probability of Default	30.00%

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Loans (Credit Quality Indicator Table) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 426,118	$ 406,294
Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	68,733	68,372
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	80,611	79,475
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	75,363	76,611
Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	12,021	9,387
Consumer: Home equity installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	34,339	36,390
Consumer: Home equity line of credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	32,670	32,486
Consumer: Auto [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	16,609	13,539
Consumer: Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,760	5,833
Residential: Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	95,646	80,091
Residential: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,366	4,110
Pass [Member] | Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	64,954	64,064
Pass [Member] | Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	69,175	65,819
Pass [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	65,562	66,298
Pass [Member] | Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	9,470	6,911
Special Mention [Member] | Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,209	2,953
Special Mention [Member] | Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	3,547	5,681
Special Mention [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,466	1,627
Special Mention [Member] | Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,388	1,246
Substandard [Member] | Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,570	1,355
Substandard [Member] | Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	7,889	7,975
Substandard [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	8,335	8,686
Substandard [Member] | Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,163	1,230
Performing [Member] | Consumer: Home equity installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	33,504	35,373
Performing [Member] | Consumer: Home equity line of credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	32,235	31,756
Performing [Member] | Consumer: Auto [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	16,589	13,539
Performing [Member] | Consumer: Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,738	5,833
Performing [Member] | Residential: Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	92,991	77,497
Performing [Member] | Residential: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,296	4,032
Non-performing [Member] | Consumer: Home equity installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	835	1,017
Non-performing [Member] | Consumer: Home equity line of credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	435	730
Non-performing [Member] | Consumer: Auto [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	20
Non-performing [Member] | Consumer: Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	22
Non-performing [Member] | Residential: Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,655	2,594
Non-performing [Member] | Residential: Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 70	$ 78

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Fair Value Measurements (Schedule Of Financial Instruments Measured On Non-Recurring Basis By Hierarchy Fair Value Levels) (Tables) (Details) (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]
Impaired loans	$ 18,794	$ 19,276
Fair Value, Measurements, Nonrecurring [Member] | Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	8,601	10,102
Other real estate owned	1,800	902
Assets, Fair Value Disclosure, Nonrecurring	10,401	11,004
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	8,601	10,102
Other real estate owned	1,800	902
Assets, Fair Value Disclosure, Nonrecurring	$ 10,401	$ 11,004

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements

2. New Accounting Pronouncements

In 2011, the Financial Accounting Standards Board (FASB) issued, and in 2012 the Company adopted, an accounting update related to Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This update amends existing Fair Value Measurements, to bring U.S. GAAP for fair value measurements in line with International Accounting Standards. The update clarifies existing guidance for items such as: the application of the highest and best use concept to non-financial assets and liabilities; the application of fair value measurement to financial instruments classified in a reporting entity's stockholder's equity; and disclosure requirements regarding quantitative information about unobservable inputs used in the fair value measurements of level 3 assets. The guidance also creates an exception to existing guidance for entities which carry financial instruments within a portfolio or group, under which the entity is now permitted to base the price used for fair valuation upon a price that would be received to sell the net asset position or transfer a net liability position in an orderly transaction. The guidance also allows for the application of premiums and discounts in a fair value measurement if the financial instrument is categorized in level 2 or 3 of the fair value hierarchy. It also contains new disclosure requirements regarding fair value amounts categorized as level 3 in the fair value hierarchy such as: disclosure of the valuation process used; effects of and relationships between unobservable inputs; usage of non-financial assets for purposes other than their highest and best use when that is the basis of the disclosed fair value; and categorization by level of items disclosed at fair value, but not measured at fair value for financial statement purposes. For public entities, this update is effective for interim and annual periods beginning after December 15, 2011. The adoption of the new accounting guidance did not have an impact on the Company's consolidated financial statements.

In June, 2011, the FASB issued an accounting update related to, Presentation of Comprehensive Income. The provisions of this update amend the accounting topic to facilitate the continued alignment of U.S. GAAP with International Accounting Standards. The update prohibits the presentation of the components of comprehensive income in the statement of stockholder's equity. Reporting entities are allowed to present either: a statement of comprehensive income, which reports both net income and other comprehensive income; or separate, but consecutive, statements of net income and other comprehensive income. Under previous GAAP, all three presentations were acceptable. Regardless of the presentation selected, the reporting entity is required to present all reclassifications between other comprehensive and net income on the face of the new statement or statements. For public entities, the provisions of this update are effective for fiscal years and interim periods beginning after December 31, 2011. The adoption of this accounting update did not have an impact on the Company's consolidated financial statements.

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Fair Value Measurements (Fair Value By Balance Sheet Grouping) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held-for-sale	$ 0	$ 4,661
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	22,791	52,165
Held-to-maturity securities	338	389
Available-for-sale securities	110,471	108,154
FHLB stock	3,339	3,699
Loans, net	417,967	398,186
Loans held-for-sale		4,537
Accrued interest	2,143	2,082
Deposit liabilities	512,070	515,802
Short-term borrowings	8,106	9,507
Long-term debt	16,000	21,000
Accrued interest	232	293
Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	22,791	52,165
Held-to-maturity securities	377	431
Available-for-sale securities	110,471	108,154
FHLB stock	3,339	3,699
Loans, net	426,686	400,100
Loans held-for-sale		4,661
Accrued interest	2,143	2,082
Deposit liabilities	510,706	513,729
Short-term borrowings	8,106	9,507
Long-term debt	18,909	24,272
Accrued interest	232	293
Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	22,791
Available-for-sale securities	445
Accrued interest	2,143
Deposit liabilities	389,307
Short-term borrowings	8,106
Accrued interest	232
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities	377
Available-for-sale securities	108,425
Deposit liabilities	121,399
Long-term debt	18,909
Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	1,601
Loans, net	$ 426,686

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Investment Securities (Non-Accrual Pooled Trust Preferred Securities (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Pre TSL V - Mezzanine Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Fair Value	$ 25	$ 25
Pre TSL VII - Mezzanine Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Fair Value	79	79
Pre TSL IX - B-1, B-3 Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	1,547	1,605
Non-Accruing Available-For-Sale Securities, Fair Value	489	529
Pre TSL XI - B-3 Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	1,112	1,119
Non-Accruing Available-For-Sale Securities, Fair Value	303	357
Pre TSL XV - B-1 Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Fair Value	24	20
Pre TSL XVIII - C Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	167	285
Non-Accruing Available-For-Sale Securities, Fair Value		5
Pre TSL XIX - C Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	316	316
Non-Accruing Available-For-Sale Securities, Fair Value		8
Pre TSL XXIV - B-1 Class [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	407	407
Non-Accruing Available-For-Sale Securities, Fair Value	15	15
Pooled trust preferred securities [Member]
Schedule of Investments [Line Items]
Non-Accruing Available-For-Sale Securities, Amortized Cost Basis	3,549	3,732
Non-Accruing Available-For-Sale Securities, Fair Value	$ 935	$ 1,038

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Investment Securities (Other Than Temporary Impairment, Credit Losses Recognized in Earnings) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Pre TSL IX - B-1, B-3 Class [Member]
Schedule of Investments [Line Items]
OTTI Recognized In Earnings, By Security		$ 18
Pre TSL XVIII - C Class [Member]
Schedule of Investments [Line Items]
OTTI Recognized In Earnings, By Security	31	118
Pre TSL XXIV - B-1 Class [Member]
Schedule of Investments [Line Items]
OTTI Recognized In Earnings, By Security			75
Pooled trust preferred securities [Member]
Schedule of Investments [Line Items]
OTTI Recognized In Earnings, By Security	$ 31	$ 136	$ 75

XML

Fair Value Measurements (Schedule of Financial Instruments Measured at Fair Value) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	$ 110,471	$ 108,154
Agency - GSE [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	24,825	25,873
Obligations of states and political subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	30,825	30,159
Pooled trust preferred securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	1,601	1,466
MBS - GSE [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	52,775	50,217
Equity securities - financial services [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	445	439
Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	445	439
Quoted Prices in Active Markets (Level 1) [Member] | Equity securities - financial services [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	445	439
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	108,425	106,249
Significant Other Observable Inputs (Level 2) [Member] | Agency - GSE [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	24,825	25,873
Significant Other Observable Inputs (Level 2) [Member] | Obligations of states and political subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	30,825	30,159
Significant Other Observable Inputs (Level 2) [Member] | MBS - GSE [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	52,775	50,217
Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	1,601	1,466
Significant Other Unobservable Inputs (Level 3) [Member] | Pooled trust preferred securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale Securities	$ 1,601	$ 1,466

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Investment Securities (Pooled Trust Preferred Securities) (Tables) (Details) (USD $)			6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Pre TSL IV - Mezzanine [Member]		Jun. 30, 2012 Pre TSL V - Mezzanine Class [Member]		Jun. 30, 2012 Pre TSL VII - Mezzanine Class [Member]		Jun. 30, 2012 Pre TSL IX - B-1, B-3 Class [Member]		Jun. 30, 2012 Pre TSL XI - B-3 Class [Member]		Jun. 30, 2012 Pre TSL XV - B-1 Class [Member]		Jun. 30, 2012 Pre TSL XVI - C Class [Member]		Jun. 30, 2012 Pre TSL XVII - C Class [Member]		Jun. 30, 2012 Pre TSL XVIII - C Class [Member]		Jun. 30, 2012 Pre TSL XIX - C Class [Member]		Jun. 30, 2012 Pre TSL XXIV - B-1 Class [Member]		Jun. 30, 2012 Pre TSL XXV - C-1 Class [Member]		Jun. 30, 2012 Pre TSL XXVII - B Class [Member]		Jun. 30, 2012 Pooled trust preferred securities [Member]	Dec. 31, 2011 Pooled trust preferred securities [Member]
Schedule of Investments [Line Items]
Book value	$ 110,983,000	$ 109,836,000	$ 412,000						$ 1,547,000		$ 1,112,000								$ 167,000		$ 316,000		$ 407,000				$ 2,446,000		$ 6,407,000	$ 6,574,000
Fair value	110,471,000	108,154,000	400,000		25,000		79,000		489,000		303,000		24,000										15,000				266,000		1,601,000	1,466,000
Unrealized gain (loss)			(12,000)		25,000		79,000		(1,058,000)		(809,000)		24,000						(167,000)		(316,000)		(392,000)				(2,180,000)		(4,806,000)
Moody's/Fitch ratings			Caa2/CCC	[1]	C / D	[1]	Ca / C	[1]	Ca / C	[1]	Ca / C	[1]	C / C	[1]	C / C	[1]	C / C	[1]	Ca / C	[1]	C / C	[1]	Ca / CC	[1]	C / C	[1]	Ca / CC	[1]
Current Number of Bank / Insurance Companies			6 / -		3 / -		17 / -		47 / -		62 / -		63 / 8		49 / 7		50 / 6		66 / 13		55 / 14		77 / 12		58 / 9		42 / 7
Actual Deferrals and Defaults			18,000,000		28,950,000		135,000,000		134,510,000		185,280,000		195,200,000		273,478,000		179,270,000		200,340,000		179,150,000		346,300,000		271,100,000		91,800,000
Actual deferrals and defaults as a % of current collateral			27.10%		100.00%		64.00%		31.80%		32.30%		33.80%		47.70%		37.90%		30.40%		27.60%		34.30%		34.20%		28.10%
Excess Subordination			$ 10,214,000		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0
Excess Subordination as a % of Current Performing Collateral			19.70%	[2]
Effective Subordination as a % of Current Performing Collateral			37.60%	[3]																			15.00%	[3]			23.80%	[3]

[1] (1) All ratings have been updated through June 30, 2012.

[2] (2) Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds.

[3] (3) Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest. This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral.

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Loans (Narrative) (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Deferred Income	$ 900,000	$ 800,000
Mortgages Serviced	198,500,000	193,500,000
Non-Accrual Balance	13,486,000	13,962,000
Troubled Debt Status [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled Debt Restructuring Balance	6,400,000	6,700,000
Impaired Loan Status [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled Debt Restructuring Balance	5,300,000	5,300,000
Non-Accrual Balance	13,500,000	14,000,000
Nonaccrual Status [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled Debt Restructuring Balance	$ 1,100,000	$ 1,400,000

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Nature Of Operations And Critical Accounting Policies

6 Months Ended

Jun. 30, 2012

Nature Of Operations And Critical Accounting Policies [Abstract]

Nature of operations and critical accounting policies

1.   Nature of operations and critical accounting policies

Nature of operations

Fidelity Deposit and Discount Bank (the Bank) is a commercial bank chartered in the Commonwealth of Pennsylvania and a wholly-owned subsidiary of Fidelity D & D Bancorp, Inc. (the Company or collectively, the Company). Having commenced operations in 1903, the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne counties.

Principles of consolidation

The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company's assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company.

In the opinion of management, the consolidated balance sheets as of June 30, 2012 and December 31, 2011 and the related consolidated statements of income for the three- and six-month periods ended June 30, 2012 and 2011, and consolidated statements of comprehensive income, consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the six months ended June 30, 2012 and 2011 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2011 financial statements to conform to the 2012 presentation.

This Quarterly Report on Form 10-Q should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2011, and the notes included therein, included within the Company's Annual Report filed on Form 10-K.

Critical accounting policies

The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect many of the reported amounts and disclosures. Actual results could differ from these estimates.

A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at June 30, 2012 is adequate and reasonable. Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance value. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination.

Another material estimate is the calculation of fair values of the Company's investment securities. Except for the Company's investment in corporate bonds, consisting of pooled trust preferred securities, fair values of the other investment securities are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. For the pooled trust preferred securities, management is unable to obtain readily attainable and realistic pricing from market traders due to a lack of active market participants and therefore management has determined the market for these securities to be inactive. In order to determine the fair value of the pooled trust preferred securities, management relied on the use of an income valuation approach (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs, the results of which are more representative of fair value than the market approach valuation technique used for the other investment securities.

Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company's investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders' equity as a component of accumulated other comprehensive income (loss) (OCI).

The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these rare circumstances, pricing may be obtained from other entities and the loans are transferred at the lower of cost or market value and simultaneously sold. As of December 31, 2011, loans classified as HFS consisted of residential mortgages. There were no loans classified as HFS as of June 30, 2012.

For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions.  For the six months ended June 30, 2012 and 2011, the Company paid interest of $1.8 million and $2.7 million, respectively.  The Company was required to pay income taxes of $1.2 million and $1.0 million during the six months of 2012 and 2011, respectively.  Transfers from loans to foreclosed assets held-for-sale amounted to $­­1.2 million during the six months ended June 30, 2012.  There were no transfers from loans to foreclosed assets held-for-sale during the six months ended June 30, 2011.  During the same respective periods, transfers from loans to loans HFS amounted to $2.0 million and $3.3 million.  Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of bank premises and equipment.

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Loans (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	$ 426,118		$ 406,294
Loans and Leases Receivable, Allowance	(8,151)	(8,320)	(8,108)	(8,144)	(8,224)	(7,898)
Total Loans Receivables	417,967		398,186
Commercial and industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	68,733		68,372
Loans and Leases Receivable, Allowance	(1,195)	(1,206)	(1,221)	(1,492)	(1,571)	(1,368)
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	80,611		79,475
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	75,363		76,611
Commercial real estate: Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	12,021		9,387
Consumer: Home equity installment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	34,339		36,390
Consumer: Home equity line of credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	32,670		32,486
Consumer: Auto [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	16,609		13,539
Consumer: Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	5,760		5,833
Residential: Real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	95,646		80,091
Residential: Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans Receivable	$ 4,366		$ 4,110

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Earnings Per Share (Tables) (Details) (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
Earnings Per Share [Abstract]
Net income	$ 1,317	$ 1,289	$ 2,574	$ 2,516
Weighted-average common shares outstanding	2,277,423	2,203,550	2,269,402	2,194,569
Earnings Per Share	$ 0.57	$ 0.59	$ 1.13	$ 1.15
Diluted potential common shares	151		151
Weighted Average Number of Shares Outstanding, Diluted	2,277,574	2,203,550	2,269,553	2,194,569
Diluted Earnings Per Share	$ 0.57	$ 0.59	$ 1.13	$ 1.15

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Assets:
Cash and due from banks	$ 12,063	$ 15,158
Interest-bearing deposits with financial institutions	10,728	37,007
Total cash and cash equivalents	22,791	52,165
Available-for-sale securities	110,471	108,154
Held-to-maturity securities	338	389
Federal Home Loan Bank Stock	3,339	3,699
Loans, net (allowance for loan losses of $8,151 in 2012; $8,108 in 2011)	417,967	398,186
Loans held-for-sale (fair value $4,441 in 2011)	0	4,537
Foreclosed assets held-for-sale	2,086	1,169
Bank premises and equipment, net	13,686	13,575
Cash surrender value of bank owned life insurance	9,901	9,740
Accrued interest receivable	2,143	2,082
Other assets	13,014	13,046
Total assets	595,736	606,742
Liabilities:
Deposits: Interest-bearing	401,787	419,647
Deposits: Non-interest bearing	110,283	96,155
Total deposits	512,070	515,802
Accrued interest payable and other liabilities	2,997	6,809
Short-term borrowings	8,106	9,507
Long-term debt	16,000	21,000
Total liabilities	539,173	553,118
Shareholders' Equity:
Preferred stock authorized 5,000,000 shares with no par value; none issued	0	0
Capital stock, no par value (10,000,000 shares authorized; shares issued and outstanding; 2,290,515 in 2012 and 2,254,542 in 2011)	23,080	22,354
Retained earnings	33,821	32,380
Accumulated other comprehensive loss	(338)	(1,110)
Total shareholders' equity	56,563	53,624
Total liabilities and shareholders' equity	$ 595,736	$ 606,742

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Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale Securities	$ 110,471	$ 108,154
loss given default rate	100.00%
prepayment rate	0.00%
recovery rate	0.00%
Pooled trust preferred securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale Securities	1,601	1,466
Fair Value Measurements, Valuation Processes, Description	discounted cash flow
structural behavior	issuer specific
Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale Securities	1,601	1,466
Significant Other Unobservable Inputs (Level 3) [Member] | Pooled trust preferred securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale Securities	$ 1,601	$ 1,466
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Probability of Default	4.62%
correlation analysis among issuers	50.00%
Maximum [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
credit adjusted cash flow discount rate	54.40%
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Probability of Default	4.50%
correlation analysis among issuers	30.00%
credit adjusted cash flow discount rate	0.00%
Minimum [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
credit adjusted cash flow discount rate	0.00%

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Consolidated Statements of Changes in Shareholders' Equity (USD $) In Thousands, except Share data	Capital stock [Member]	Retained earnings [Member]	Accumulated other comprehensive loss [Member]	Total
Balance (value) at Dec. 31, 2010	$ 21,047	$ 29,545	$ (3,817)	$ 46,775
Balance (shares) at Dec. 31, 2010	2,178,028
Comprehensive income		2,516	1,461	3,977
Issuance of common stock through Employee Stock Purchase Plan	67			67
Issuance of common stock, shares, through Employee Stock Purchase Plan	4,801
Issuance of common stock through Dividend Reinvestment Plan	600			600
Issuance of common stock, shares, through Dividend Reinvestment Plan	34,623
Stock-based compensation expense	24			24
Cash dividends declared		(1,096)		(1,096)
Balance (value) at Jun. 30, 2011	21,738	30,965	(2,356)	50,347
Balance (shares) at Jun. 30, 2011	2,217,452
Balance (value) at Dec. 31, 2011	22,354	32,380	(1,110)	53,624
Balance (shares) at Dec. 31, 2011	2,254,542
Comprehensive income		2,574	772	3,346
Issuance of common stock through Employee Stock Purchase Plan	67			67
Issuance of common stock, shares, through Employee Stock Purchase Plan	3,874
Issuance of common stock through Dividend Reinvestment Plan	644			644
Issuance of common stock, shares, through Dividend Reinvestment Plan	32,099
Stock-based compensation expense	15			15
Cash dividends declared		(1,133)		(1,133)
Balance (value) at Jun. 30, 2012	$ 23,080	$ 33,821	$ (338)	$ 56,563
Balance (shares) at Jun. 30, 2012	2,290,515

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Loans (Past Due Loans Table) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	$ 2,613	$ 3,211
60 - 89 Days Past Due	1,149	1,147
Past Due 90 Days Or More	13,693	14,227
Total Past Due	17,455	18,585
Current	408,663	387,709
Total Loans Receivable	426,118	406,294
Recorded Investment Past Due More Than 90 Days and Accruing	207	265
Commercial and industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	93	61
60 - 89 Days Past Due	295	20
Past Due 90 Days Or More	278	458
Total Past Due	666	539
Current	68,067	67,833
Total Loans Receivable	68,733	68,372
Recorded Investment Past Due More Than 90 Days and Accruing	5
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	832	1,802
60 - 89 Days Past Due		386
Past Due 90 Days Or More	2,357	2,406
Total Past Due	3,189	4,594
Current	77,422	74,881
Total Loans Receivable	80,611	79,475
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	155	134
60 - 89 Days Past Due	567	71
Past Due 90 Days Or More	5,883	6,288
Total Past Due	6,605	6,493
Current	68,758	70,118
Total Loans Receivable	75,363	76,611
Recorded Investment Past Due More Than 90 Days and Accruing	66
Commercial real estate: Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 90 Days Or More	1,138	656
Total Past Due	1,138	656
Current	10,883	8,731
Total Loans Receivable	12,021	9,387
Consumer: Home equity installment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	285	450
60 - 89 Days Past Due	42	161
Past Due 90 Days Or More	835	1,017
Total Past Due	1,162	1,628
Current	33,177	34,762
Total Loans Receivable	34,339	36,390
Consumer: Home equity line of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	33	11
Past Due 90 Days Or More	435	730
Total Past Due	468	741
Current	32,202	31,745
Total Loans Receivable	32,670	32,486
Consumer: Auto [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	413	437
60 - 89 Days Past Due	167	181
Past Due 90 Days Or More	20
Total Past Due	600	618
Current	16,009	12,921
Total Loans Receivable	16,609	13,539
Recorded Investment Past Due More Than 90 Days and Accruing	20
Consumer: Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	8	19
60 - 89 Days Past Due	78	11
Past Due 90 Days Or More	22
Total Past Due	108	30
Current	5,652	5,803
Total Loans Receivable	5,760	5,833
Recorded Investment Past Due More Than 90 Days and Accruing	2
Residential: Real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	794	297
60 - 89 Days Past Due		317
Past Due 90 Days Or More	2,655	2,594
Total Past Due	3,449	3,208
Current	92,197	76,883
Total Loans Receivable	95,646	80,091
Recorded Investment Past Due More Than 90 Days and Accruing	114	265
Residential: Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 90 Days Or More	70	78
Total Past Due	70	78
Current	4,296	4,032
Total Loans Receivable	$ 4,366	$ 4,110

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Carrying Amount and Estimated Fair Value by Balance Sheet Grouping [Table Text Block]

		June 30, 2012					December 31, 2011
				Quoted prices	Significant	Significant
				in active	other	other
		Carrying	Estimated	markets	observable inputs	unobservable inputs	Carrying	Estimated
(dollars in thousands)		amount	fair value	(Level 1)	(Level 2)	(Level 3)	amount	fair value
Financial assets:
	Cash and cash equivalents	$  22,791	$ 22,791	$       22,791	$                         -	$                         -	$   52,165	$   52,165
	Held-to-maturity securities	338	377	-	377	-	389	431
	Available-for-sale securities	110,471	110,471	445	108,425	1,601	108,154	108,154
	FHLB Stock	3,339	3,339	-	-	-	3,699	3,699
	Loans, net	417,967	426,686	-	-	426,686	398,186	400,100
	Loans held-for-sale	-	-	-	-	-	4,537	4,661
	Accrued interest	2,143	2,143	2,143	-	-	2,082	2,082
Financial liabilities:
	Deposit liabilities	512,070	510,706	389,307	121,399	-	515,802	513,729
	Short-term borrowings	8,106	8,106	8,106	-	-	9,507	9,507
	Long-term debt	16,000	18,909	-	18,909	-	21,000	24,272
	Accrued interest	232	232	232	-	-	293	293

Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

				Quoted prices
				in active	Significant other	Significant other
			Total carrying value	markets	observable inputs	unobservable inputs
(dollars in thousands)			June 30, 2012	(Level 1)	(Level 2)	(Level 3)
Available-for-sale securities:
	Agency - GSE		$                   24,825	$                              -	$                   24,825	$                              -
	Obligations of states and political subdivisions		30,825	-	30,825	-
	Corporate bonds:
		Pooled trust preferred securities	1,601	-	-	1,601
	MBS - GSE residential		52,775	-	52,775	-
	Equity securities - financial services		445	445	-	-
	Total available-for-sale securities		$                 110,471	$                         445	$                 108,425	$                     1,601
				Quoted prices
				in active	Significant other	Significant other
			Total carrying value	markets	observable inputs	unobservable inputs
(dollars in thousands)			December 31, 2011	(Level 1)	(Level 2)	(Level 3)
Available-for-sale securities:
	Agency - GSE		$                    25,873	$                              -	$                    25,873	$                              -
	Obligations of states and political subdivisions		30,159	-	30,159	-
	Corporate bonds:
		Pooled trust preferred securities	1,466	-	-	1,466
	MBS - GSE residential		50,217	-	50,217	-
	Equity securities - financial services		439	439	-	-
	Total available-for-sale securities		$                  108,154	$                          439	$                 106,249	$                      1,466

Assets Measured at Fair Value On a Recurring Basis Using Level 3 Inputs [Table Text Block]

	Quantitative information about Level 3 fair value measurements as of June 30, 2012:
		Fair	Valuation	Unobservable	Input
(dollars in thousands)		value	technique	input	utilized
Available-for-sale securities:
Pooled trust preferred securities		$ 1,601	discounted cash flow	- structural behavior;	issuer specific
				- estimated probability of default	4.50% - 4.62%
				- correlation analysis among issuers	50%-30%
				- loss given default rate	100%
				- prepayment rate	0%
				- recovery rate	0%
				- credit adjusted cash flow discount rate	0% - 54.4%

Changes in Level 3 Financial Instruments [Table Text Block]

		As of and for the six months ended June 30,
(dollars in thousands)			2012	2011
Balance at beginning of period			$                    1,466	$                      1,453
Realized losses in earnings			(136)	(75)
Unrealized gains (losses) in OCI:
	Gains		410	206
	Losses		(108)	(243)
Pay down / settlement			(47)	(28)
Interest paid in kind			14	6
Accretion			2	2
Balance at end of period			$                    1,601	$                      1,321

Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels [Table Text Block]

(dollars in thousands)
			Quoted prices in	Significant other	Significant other
		Total carrying value	active markets	observable inputs	unobservable inputs
		at June 30, 2012	(Level 1)	(Level 2)	(Level 3)
Impaired loans		$                   8,601	$                        -	$                        -	$                 8,601
Other real estate owned		1,800	-	-	1,800
	Total	$                 10,401	$                        -	$                        -	$               10,401
(dollars in thousands)
			Quoted prices in	Significant other	Significant other
		Total carrying value	active markets	observable inputs	unobservable inputs
		at December 31, 2011	(Level 1)	(Level 2)	(Level 3)
Impaired loans		$                   10,102	$                         -	$                         -	$                10,102
Other real estate owned		902	-	-	902
	Total	$                   11,004	$                         -	$                         -	$                11,004

XML

Loans (Impaired Loans Table) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	$ 20,163	$ 19,670
Recorded Investment With Allowance	10,400	11,637
Recorded Investment With No Allowance	8,394	7,639
Total Recorded Investment	18,794	19,276
Related Allowance	1,799	1,535
Average Recorded Investment	16,071	12,921
Interest Income Recognized	181	326
Cash Interest Income Recognized		77
Commercial and industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	322	549
Recorded Investment With Allowance	95	322
Recorded Investment With No Allowance	220	179
Total Recorded Investment	315	501
Related Allowance	34	63
Average Recorded Investment	431	355
Interest Income Recognized	2	2
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	5,428	5,434
Recorded Investment With Allowance	1,037	3,144
Recorded Investment With No Allowance	4,230	2,176
Total Recorded Investment	5,267	5,320
Related Allowance	314	301
Average Recorded Investment	4,318	3,026
Interest Income Recognized	94	53
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	8,830	8,538
Recorded Investment With Allowance	6,807	5,730
Recorded Investment With No Allowance	1,366	2,915
Total Recorded Investment	8,173	8,645
Related Allowance	1,048	792
Average Recorded Investment	6,777	4,953
Interest Income Recognized	75	108
Cash Interest Income Recognized		14
Commercial real estate: Construction [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	1,138	656
Recorded Investment With Allowance	662	656
Recorded Investment With No Allowance	476
Total Recorded Investment	1,138	656
Related Allowance	187	152
Average Recorded Investment	735	375
Consumer: Home equity installment [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	987	1,050
Recorded Investment With Allowance	285	395
Recorded Investment With No Allowance	550	622
Total Recorded Investment	835	1,017
Related Allowance	44	88
Average Recorded Investment	868	751
Interest Income Recognized		6
Cash Interest Income Recognized		3
Consumer: Home equity line of credit [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	479	730
Recorded Investment With Allowance	162	229
Recorded Investment With No Allowance	273	501
Total Recorded Investment	435	730
Related Allowance	41	55
Average Recorded Investment	473	488
Interest Income Recognized		2
Cash Interest Income Recognized		1
Consumer: Auto [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		3
Consumer: Other [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	20
Recorded Investment With No Allowance	20
Total Recorded Investment	20
Average Recorded Investment	17	12
Residential: Real estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	2,865	2,619
Recorded Investment With Allowance	1,282	1,083
Recorded Investment With No Allowance	1,259	1,246
Total Recorded Investment	2,541	2,329
Related Allowance	108	84
Average Recorded Investment	2,371	2,867
Interest Income Recognized	10	155
Cash Interest Income Recognized		59
Residential: Construction [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance	94	94
Recorded Investment With Allowance	70	78
Total Recorded Investment	70	78
Related Allowance	23
Average Recorded Investment	$ 81	$ 91

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Investment Securities (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2012

Jun. 30, 2011

Schedule of Investments [Line Items]

Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Methodology

To determine credit-related OTTI, the Company analyzes the collateral of each individual tranche within each of the 13 individual pools in the Company's portfolio of pooled trust preferred securities (PreTSLs). The Company engaged a third party structured finance firm to: review the underlying collateral of each PreTSL; research trustee reports to update relevant data and credit ratings of the underlying collateral; project default rates and cash flows of the collateral and simulate 10,000 Monte Carlo time-to-default scenarios, performed quarterly to arrive at the single best estimate of future cash flow for each tranche.

The sub-topics of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320 provide the scope, steps and accounting guidance for impairment: 1) determine whether an investment is impaired; 2) evaluate whether impairment is other-than-temporary; then 3) recognition of OTTI. The guidance in ASC 320 retains and emphasizes the objective of OTTI assessment and the related disclosure requirements by aligning the OTTI methodology for certain securitizations. ASC 325 provides a scope exception for investments that were considered of high credit quality (i.e. rated "AA" or higher) at the time of acquisition. The application of the guidance contained in ASC 320 is used for two investments considered of high credit quality and ASC 325 is used for the remaining eleven securities. The quarterly evaluations indicated there was a significant adverse change in cash flows in two of the securities, thereby signifying the likelihood of the Company not being able to recover its principal. As a result, $0.1 million of credit related OTTI was recorded during the six months ended June 30, 2012.

The guidance prescribed in ASC 320 is used for investments that, upon purchase, were rated of high credit quality, "AA" or higher, by a nationally recognized statistical rating organization.  The Company has two PreTSLs (XXIV and XXVII) that were of high credit quality, "AA" rated, upon acquisition.  The PreTSL XXVII evaluation proved a high probability that the Company will be able to collect all amounts due, both principal and interest, by maturity and thus, determined the impairment is temporary.  PreTSL XXIV was evaluated under ASC 320 to determine if the Company expects to recover the remaining amortized cost basis and if OTTI is deemed to have occurred.  An adverse change or short-fall in the expected cash flows compared to the amortized cost would be recorded as credit-related OTTI.  To assess the likelihood of recoverability, the present value of the best estimate of future cash flows is compared to the amortized cost.  In this situation, the discount rate used was the interest rate implicit in the security at the date of acquisition.  The application of the guidance on this security did not result  in an adverse change in cash flows when compared quarterly to the last measurement date of March 31, 2012 and therefore, no credit related OTTI was recorded in the first half  of 2012.  

The remaining eleven PreTSLs were rated "A" by a nationally recognized statistical rating organization at the date of acquisition and as such are considered beneficial interests of securitized financial assets.  For these securities, the Company applies the guidance of ASC 325.  Under this and other relevant guidance, if the fair value is below amortized cost and the present value of the best estimate of future cash flows declines significantly, evidencing a probable material adverse change in cash flows since the last measurement date, credit-related OTTI is deemed to exist and written down to the determined present value through a charge to current earnings.  The discount rate used under ASC 325 is the yield to accrete beneficial interest, which is representative of the resulting interest from the total gross estimated future cash flows less the current amortized cost.  In applying this guidance to the remaining securities, PreTSLs IX and XVIII measured an adverse change in cash flows when compared to the last estimate and credit related OTTI of $18,000 and $118,000, respectively, was recorded in the first half of 2012.     

Agency - GSE [Member]

Schedule of Investments [Line Items]

Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature

Agency - GSE and MBS - GSE residential

Agency – GSE and MBS – GSE residential securities consist of medium- and long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB) and Government National Mortgage Association (GNMA). These securities have interest rates that are largely fixed-rate issues, have varying mid- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government.

Obligations of states and political subdivisions [Member]

Schedule of Investments [Line Items]

Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature

Obligations of states and political subdivisions

The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues.

In the above security types, the change in fair value is attributable to changes in interest rates and those instruments with unrealized losses were not caused by deterioration of credit quality. Accordingly, as of June 30, 2012, recognition of OTTI on these securities was unnecessary.

Pooled trust preferred securities [Member]

Schedule of Investments [Line Items]

Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature

Pooled trust preferred securities

A Pooled Trust Preferred Collateralized Debt Obligation (CDO) is a type of investment security collateralized by trust preferred securities (TPS) issued by banks, insurance companies and real estate investment trusts. The primary collateral type is a TPS issued by a bank. A TPS is a hybrid security that consists of both debt and equity characteristics which includes the ability of the issuer to voluntarily defer interest payments for up to 20 consecutive quarters. A TPS is considered a junior security in the capital structure of the issuer.

There are various investment classes or tranches issued by the CDO. The most senior tranche has the lowest yield but the most protection from credit losses. Conversely, the most junior tranche has the highest yield and the most risk of credit loss. Junior tranches are subordinate to senior tranches and losses are generally allocated from the lowest tranche with the equity component holding the most risk of credit loss and then subordinate tranches in reverse order up to the most senior tranche. The allocation of losses is defined in the indenture when the CDO was formed.

Unrealized losses in the pooled trust preferred securities (PreTSLs) are caused mainly by the following factors: (1) collateral deterioration due to bank failures and credit concerns across the banking sector; (2) widening of credit spreads and (3) illiquidity in the market. The Company's review of its portfolio of pooled trust preferred securities determined that in 2012, credit-related OTTI be recorded on two holdings, both of which are contained in the Company's AFS securities portfolio, from credit quality downgrades on the underlying collateral, including the collateral of four banks deferring interest payments within these two securities and one bank fully redeeming which removes all future earnings cash flow.

OTTI Recognized In Earnings, By Security

$ 31

$ 136

$ 75

Pre TSL IX - B-1, B-3 Class [Member]

Schedule of Investments [Line Items]

OTTI Recognized In Earnings, By Security

18

Pre TSL XVIII - C Class [Member]

Schedule of Investments [Line Items]

OTTI Recognized In Earnings, By Security

31

118

Pre TSL XXIV - B-1 Class [Member]

Schedule of Investments [Line Items]

OTTI Recognized In Earnings, By Security

$ 75

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income	$ 2,574	$ 2,516
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	1,750	1,587
Provision for loan losses	1,300	850
Deferred income tax (benefit) expense	(225)	40
Stock-based compensation expense	15	24
Proceeds from sale of loans held-for-sale	39,972	13,625
Originations of loans held-for-sale	(32,995)	(10,483)
Write-down of foreclosed assets held-for-sale	60	66
Earnings on bank-owned life insurance	(161)	(155)
Net gain from sales of loans	(829)	(339)
Net gain from sale and recoveries of investment securities	(261)	(16)
Net loss (gain) on sale of foreclosed assets held-for-sale	15	(18)
Loss on disposal of equipment	1	0
Other-than-temporary impairment on securities	136	75
Change in:
Accrued interest receivable	(61)	(79)
Other assets	51	500
Accrued interest payable and other liabilities	(3,812)	(409)
Net cash provided by operating activities	7,530	7,784
Cash flows from investing activities:
Held-to-maturity securities: Proceeds from maturities, calls, and principal pay-downs	52	48
Available-for-sale securities: Proceeds from sales	3,581	823
Available-for-sale securities: Proceeds from maturities, calls and principal pay-downs	15,505	12,745
Available-for-sale securities: Purchases	(20,885)	(27,403)
Decrease in FHLB stock	361	443
Net (increase) decrease in loans	(24,191)	5,572
Acquisition of bank premises and equipment	(936)	(178)
Proceeds from sale of foreclosed assets held-for-sale	164	366
Net cash used in investing activities	(26,349)	(7,584)
Cash flows from financing activities:
Net (decrease) increase in deposits	(3,733)	24,480
Net increase in short-term borrowings	(1,401)	(542)
Repayments of long-term debt	(5,000)	0
Proceeds from employee stock purchase plan participants	67	67
Dividends paid, net of dividends reinvested	(748)	(734)
Proceeds from dividend reinvestment plan participants	260	239
Net cash (used) provided by financing activities	(10,555)	23,510
Net (decrease) increase in cash and cash equivalents	(29,374)	23,710
Cash and cash equivalents, beginning	52,165	22,967
Cash and cash equivalents, ending	$ 22,791	$ 46,677

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets
Loans, Allowance for Loan Losses	$ 8,151	$ 8,108
Loans Held-for-sale, Fair Value Disclosure	$ 0	$ 4,661
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, No Par Value
Preferred Stock, Shares Issued	0	0
Common Stock, No Par Value
Common Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	2,290,515	2,254,542
Common Stock, Shares, Outstanding	2,290,515	2,254,542

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Earnings Per Share (Policy)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share Policy

In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and unvested restricted stock. Under the treasury stock method, the assumed proceeds received from shares issued, in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Pursuant to the accounting guidance for earnings per share, proceeds include: proceeds from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized; and any "windfall" tax benefits that would be credited directly to shareholders' equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity).

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Registrant Name	FIDELITY D & D BANCORP INC
Entity Central Index Key	0001098151
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,290,515

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Stock Plans (Policy)

6 Months Ended

Jun. 30, 2012

Stock Plans [Abstract]

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards, and applies the fair value method of accounting for stock-based compensation provided under the current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the common stock of the Company to secure, retain and motivate employees who may be responsible for the operation and for the management of the affairs of the Company and to secure, retain and motivate the members of the Company's board of directors, thereby aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified) stock appreciation rights (SARs) or restricted stock.

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Consolidated 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: Taxable	$ 5,292	$ 5,760	$ 10,572	$ 11,568
Loans: Nontaxable	116	133	252	260
Interest-bearing deposits with financial institutions	15	22	43	39
Investment securities:
U.S. government agency and corporations	240	366	521	665
States and political subdivisions (nontaxable)	310	300	619	588
Other securities	18	16	36	28
Total interest income	5,991	6,597	12,043	13,148
Interest expense:
Deposits	617	1,015	1,301	2,057
Securities sold under repurchase agreements	8	7	23	26
Long-term debt	213	258	452	514
Total interest expense	838	1,280	1,776	2,597
Net interest income	5,153	5,317	10,267	10,551
Provision for loan losses	600	375	1,300	850
Net interest income after provision for loan losses	4,553	4,942	8,967	9,701
Other income:
Service charges on deposit accounts	424	443	843	860
Interchange fees	268	250	522	467
Fees from trust fiduciary activities	149	107	307	201
Fees from financial services	118	152	286	299
Service charges on loans	357	213	651	333
Fees and other revenue	101	109	175	189
Earnings on bank-owned life insurance	81	78	161	155
Gain (loss) on sale, recovery or disposal of:
Loans	434	93	829	339
Investment securities	7	16	261	16
Premises and equipment	(1)	0	(1)	0
Foreclosed assets held-for-sale	0	3	(15)	18
Write-down of foreclosed assets held-for-sale	(35)	(66)	(60)	(66)
Impairment losses on investment securities:
Other-than-temporary impairment on investment securities	(31)	(91)	(241)	(306)
Non-credit-related losses on investment securities not expected to be sold (recognized in other comprehensive income/(loss))	0	91	105	231
Net impairment losses on investment securities recognized in earnings	(31)	0	(136)	(75)
Total other income	1,872	1,398	3,823	2,736
Other expenses:
Salaries and employee benefits	2,294	2,194	4,651	4,419
Premises and equipment	806	918	1,704	1,894
Advertising and marketing	243	199	395	350
Professional services	365	359	671	613
FDIC assessment	127	199	249	429
Loan collection	180	125	301	140
Other real estate owned	73	30	90	55
Office supplies and postage	93	124	212	236
Other	497	472	1,118	974
Total other expenses	4,678	4,620	9,391	9,110
Income before income taxes	1,747	1,720	3,399	3,327
Provision for income taxes	430	431	825	811
Net income	$ 1,317	$ 1,289	$ 2,574	$ 2,516
Per share data:
Net income - basic	$ 0.57	$ 0.59	$ 1.13	$ 1.15
Net income - diluted	$ 0.57	$ 0.59	$ 1.13	$ 1.15
Dividends	$ 0.25	$ 0.25	$ 0.5	$ 0.5

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Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings per share

5. Earnings per share

Basic earnings per share (EPS) is computed by dividing income available to common shareholders by the weighted-average number of common stock outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but reflects the potential dilution that could occur from the grant of stock-based compensation awards. As more fully described in Note 6, "Stock plans," the Company maintains two share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options, dilution would occur if Company-issued stock options were exercised and converted into common stock. Since the average share market prices of the Company's common stock, during the three- and six-months ended June 30, 2012 and 2011, were below the strike prices of all unexercised outstanding options, there were no potentially dilutive shares outstanding in any of the reportable periods related to stock options. For restricted stock, dilution occurs based on the unvested number of shares outstanding or 151 shares for the three and six months ended June 30, 2012.

In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and unvested restricted stock. Under the treasury stock method, the assumed proceeds received from shares issued, in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Pursuant to the accounting guidance for earnings per share, proceeds include: proceeds from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized; and any "windfall" tax benefits that would be credited directly to shareholders' equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity).

The following table illustrates the data used in computing basic EPS and a reconciliation to derive at the components of diluted EPS for the periods indicated:

		Three months ended June 30,		Six months ended June 30,
		2012	2011	2012	2011
(dollars in thousands except per share data)
Basic EPS:
Net income available to common shareholders		$            1,317	$            1,289	$             2,574	$           2,516
Weighted-average common shares outstanding		2,277,423	2,203,550	2,269,402	2,194,569
Basic EPS		$          0.57	$          0.59	$           1.13	$             1.15
Diluted EPS:
Net income available to common shareholders		$            1,317	$            1,289	$             2,574	$           2,516
Weighted-average common shares outstanding		2,277,423	2,203,550	2,269,402	2,194,569
Potentially dilutive common shares		151	-	151	-
Weighted-average common and potentially
	dilutive shares outstanding	2,277,574	2,203,550	2,269,553	2,194,569
Diluted EPS		$          0.57	$          0.59	$           1.13	$             1.15

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Loans

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Loans

4. Loans

The classifications of loans at June 30, 2012 and December 31, 2011 are summarized as follows:

(dollars in thousands)				June 30, 2012	December 31, 2011
Commercial and industrial				$  68,733	$  68,372
Commercial real estate:
	Non-owner occupied			80,611	79,475
	Owner occupied			75,363	76,611
	Construction			12,021	9,387
Consumer:
	Home equity installment			34,339	36,390
	Home equity line of credit			32,670	32,486
	Auto			16,609	13,539
	Other			5,760	5,833
Residential:
	Real estate			95,646	80,091
	Construction			4,366	4,110
		Total		426,118	406,294
Less:
	Allowance for loan losses			(8,151)	(8,108)
			Loans, net	$  417,967	$  398,186

Net deferred loan costs of $0.9 million and $0.8 million have been added to the carrying values of loans at June 30, 2012 and December 31, 2011, respectively.

The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate amount of mortgages serviced amounted to $198.5 million as of June 30, 2012 and $193.5 million as of December 31, 2011.

The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the Board of Directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company's policies and procedures.

Non-accrual loans

The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. Commercial and industrial and commercial real estate loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged off when the loan is 90 days or more past due as to principal and interest.

.

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

(dollars in thousands)			June 30, 2012	December 31, 2011
Commercial and industrial			$  273	$ 458
Commercial real estate:
	Non-owner occupied		2,357	2,406
	Owner occupied		5,817	6,288
	Construction		1,138	656
Consumer:
	Home equity installment		835	1,017
	Home equity line of credit		435	730
	Auto		-	-
	Other		20	-
Residential:
	Real estate		2,541	2,329
	Construction		70	78
		Total	$  13,486	$  13,962

Troubled Debt Restructuring

A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession.  The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted.  Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans.  Additional collateral, a co-borrower, or a guarantor is often requested.  Commercial real estate and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor.  Construction loans modified in a TDR may also involve extending the interest-only payment period.  Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for an extended period of time.  After the lowered monthly payment period ends, the borrower would revert back to paying principal and interest per the original terms with the maturity date adjusted accordingly.  Home equity modifications and automobile loan modifications are typically not made and therefore standard terms do not exist for loans of this type.

Loans modified in a TDR may or may not be placed in non-accrual status. As of June 30, 2012, total TDRs amounted to $6.4 million of which $1.1 million were on non-accrual status. As of December 31, 2011, total TDRs amounted to $6.7 million of which $1.4 million were on non-accrual status. Partial charge-offs may be taken against the outstanding loan balance, but, only in rare instances.  As a result, loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance for loan losses associated with the loan.  The Company considers all TDRs to be impaired loans. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the loan's observable market price.  If the loan is collateral dependent, the estimated fair value of the collateral, less any selling costs, is used to establish the allowance. Management exercises significant judgment in developing these estimates.

There were no loans modified in a TDR during the three and six months ended June 30, 2012. The following presents by class, loans modified as TDRs during the twelve months ended June 30, 2012 that subsequently defaulted (i.e., 90 days or more past due following a modification) during the three- and six-months ended June 30, 2012:

Loans modified as a TDR within the previous twelve months that subsequently defaulted during the:
(dollars in thousands)	Three months ended June 30, 2012			Six months ended June 30, 2012
		Number of	Recorded		Number of	Recorded
		contracts	investment		contracts	investment
Commercial real estate - owner occupied		-	$                         -		1	$                     1,118

In the above table, the period end balance is inclusive of all partial pay downs and charge-offs since the modification date.

The $1.1 million commercial real estate loan TDR that subsequently defaulted had been modified to lower payments. The Company has been applying all payments during this time to principal.  An updated appraisal was obtained on the collateral during the first quarter of 2012 which necessitated an increase in the reserve for loan losses on this loan. The borrower has recently resumed making payments under a new agreement.

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment.  The allowance may be increased, adjustments may be made in the allocation of the allowance or partial charge offs may be taken to further write-down the carrying value of the loan.

Past due loans

Loans are considered past due when the contractual principal and/or interest is not received by the due date.

An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands):

									Recorded
					Past due			Total	investment  past
			30 - 59 Days	60 - 89 Days	90 days	Total		loans	due ≥ 90 days
June 30, 2012			past due	past due	or more *	past due	Current	receivables	and accruing
Commercial and industrial			$                93	$             295	$             278	$             666	$        68,067	$        68,733	$                  5
Commercial real estate:
	Non-owner occupied		832	-	2,357	3,189	77,422	80,611	-
	Owner occupied		155	567	5,883	6,605	68,758	75,363	66
	Construction		-	-	1,138	1,138	10,883	12,021	-
Consumer:
	Home equity installment		285	42	835	1,162	33,177	34,339	-
	Home equity line of credit		33	-	435	468	32,202	32,670	-
	Auto		413	167	20	600	16,009	16,609	20
	Other		8	78	22	108	5,652	5,760	2
Residential:
	Real estate		794	-	2,655	3,449	92,197	95,646	114
	Construction		-	-	70	70	4,296	4,366	-
		Total	$         2,613	$          1,149	$      13,693	$      17,455	$     408,663	$     426,118	$             207

*Includes $13.5 millionof non-accrual loans.

.

									Recorded
					Past due			Total	investment  past
			30 - 59 Days	60 - 89 Days	90 days	Total		loans	due ≥ 90 days
December 31, 2011			past due	past due	or more *	past due	Current	receivables	and accruing
Commercial and industrial			$                 61	$                 20	$               458	$               539	$          67,833	$       68,372	$                   -
Commercial real estate:
	Non-owner occupied		1,802	386	2,406	4,594	74,881	79,475	-
	Owner occupied		134	71	6,288	6,493	70,118	76,611	-
	Construction		-	-	656	656	8,731	9,387	-
Consumer:
	Home equity installment		450	161	1,017	1,628	34,762	36,390	-
	Home equity line of credit		11	-	730	741	31,745	32,486	-
	Auto		437	181	-	618	12,921	13,539	-
	Other		19	11	-	30	5,803	5,833	-
Residential:
	Real estate		297	317	2,594	3,208	76,883	80,091	265
	Construction		-	-	78	78	4,032	4,110	-
		Total	$             3,211	$            1,147	$          14,227	$          18,585	$        387,709	$        406,294	$              265

*Includes $14.0 million of non-accrual loans.

.

Impaired loans

A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower's prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans and other loans deemed to be impaired based on the aforementioned factors.

 At June 30, 2012, impaired loans consisted of TDRs totaling $5.3 million in addition to the $13.5 million of non-accrual loans. At December 31, 2011, impaired loans consisted of TDRs totaling $5.3 million in addition to the $14.0 million of non-accrual loans. Payments received on non-accrual loans are recognized on a cash basis. Payments are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income.

Impaired loans, segregated by class, as of the period indicated are detailed below:

				Recorded	Recorded					Cash basis
			Unpaid	investment	investment	Total		Average	Interest	interest
			principal	with	with no	recorded	Related	recorded	income	income
(dollars in thousands)			balance	allowance	allowance	investment	allowance	investment	recognized	recognized
June 30, 2012
Commercial & industrial			$             322	$               95	$            220	$            315	$              34	$             431	$                2	$                 -
Commercial real estate:
	Non-owner occupied		5,428	1,037	4,230	5,267	314	4,318	94	-
	Owner occupied		8,830	6,807	1,366	8,173	1,048	6,777	75	-
	Construction		1,138	662	476	1,138	187	735	-	-
Consumer:
	Home equity installment		987	285	550	835	44	868	-	-
	Home equity line of credit		479	162	273	435	41	473	-	-
	Auto		-	-	-	-	-	-	-	-
	Other		20	-	20	20	-	17	-	-
Residential:
	Real Estate		2,865	1,282	1,259	2,541	108	2,371	10	-
	Construction		94	70	-	70	23	81	-	-
		Total	$       20,163	$       10,400	$        8,394	$      18,794	$         1,799	$       16,071	$            181	$                 -

				Recorded	Recorded					Cash basis
			Unpaid	investment	investment	Total		Average	Interest	interest
			principal	with	with no	recorded	Related	recorded	income	income
(dollars in thousands)			balance	allowance	allowance	investment	allowance	investment	recognized	recognized
December 31, 2011
Commercial & industrial			$             549	$            322	$            179	$            501	$              63	$             355	$                2	$                 -
Commercial real estate:
	Non-owner occupied		5,434	3,144	2,176	5,320	301	3,026	53	-
	Owner occupied		8,538	5,730	2,915	8,645	792	4,953	108	14
	Construction		656	656	-	656	152	375	-	-
Consumer:
	Home equity installment		1,050	395	622	1,017	88	751	6	3
	Home equity line of credit		730	229	501	730	55	488	2	1
	Auto		-	-	-	-	-	3	-	-
	Other		-	-	-	-	-	12	-	-
Residential:
	Real Estate		2,619	1,083	1,246	2,329	84	2,867	155	59
	Construction		94	78	-	78	-	91	-	-
		Total	$        19,670	$        11,637	$         7,639	$         19,276	$         1,535	$        12,921	$            326	$              77

Credit Quality Indicators

Commercial and industrial and commercial real estate

The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the commercial and industrial and commercial real estate portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the commercial and industrial and commercial real estate portfolios.

The following is a description of each risk rating category the Company uses to classify each of its commercial and industrial and commercial real estate loans:

Pass

Loans in this category have an acceptable level of risk and are graded in range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be good, and there is some depth existing. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality.

Special Mention

Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Loans in this category should not remain on the list for an inordinate period of time (no more than one year) and then the loan should be passed or classified appropriately. Cash flow may not be sufficient to support total debt service requirements.

Substandard

Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Loans 90+ days past due unless otherwise fully supported should be classified substandard. Also, borrowers that are bankrupt are substandard.

Doubtful

Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term.  Many of the weaknesses present in a substandard loan exist.  Liquidation of collateral, if any, is likely.  Any loan graded lower than an eight is considered to be uncollectible and charged-off.         

Consumer and Residential

For these portfolios, the Company utilizes payment activity, history and recency of payment. Therefore, the consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. Non-performing loans are considered to be loans past due 90 days or more and accruing and non-accrual loans. All loans not classified as non-performing are considered performing.

The following table presents loans, segregated by class, categorized into the appropriate credit quality indicator category as of the period indicated:

Commercial credit exposure
Credit risk profile by creditworthiness category
				Commercial real estate -		Commercial real estate -		Commercial real estate -
		Commercial and industrial		non-owner occupied		owner occupied		construction
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011
Pass		$           64,954	$           64,064	$         69,175	$           65,819	$         65,562	$           66,298	$           9,470	$              6,911
Special mention		2,209	2,953	3,547	5,681	1,466	1,627	1,388	1,246
Substandard		1,570	1,355	7,889	7,975	8,335	8,686	1,163	1,230
Doubtful		-	-	-	-	-	-	-	-
	Total	$           68,733	$           68,372	$         80,611	$           79,475	$         75,363	$           76,611	$         12,021	$              9,387

Consumer credit exposure
Credit risk profile based on payment activity
		Home equity installment		Home equity line of credit		Auto		Other
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011
Performing		$          33,504	$           35,373	$         32,235	$           31,756	$         16,589	$           13,539	$           5,738	$             5,833
Non-performing		835	1,017	435	730	20	-	22	-
	Total	$          34,339	$           36,390	$         32,670	$           32,486	$         16,609	$           13,539	$           5,760	$             5,833

Mortgage lending credit exposure
Credit risk profile based on payment activity
		Residential real estate		Residential construction
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011
Performing		$           92,991	$        77,497	$        4,296	$          4,032
Non-performing		2,655	2,594	70	78
	Total	$           95,646	$        80,091	$        4,366	$              4,110

Allowance for loan losses

Management continually evaluates the credit quality of the Company's loan portfolio and performs a formal review of the adequacy of the allowance for loan losses (the allowance) on a quarterly basis. The allowance reflects management's best estimate of the amount of credit losses in the loan portfolio. Management's judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received.

Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows:

§identification of specific impaired loans by loan category;

§specific loans that are not impaired, but have an identified potential for loss;

§calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence;

§determination of homogenous pools by loan category and eliminating the impaired loans;

§application of historical loss percentages (two-year average) to pools to determine the allowance allocation;

§application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. Qualitative factor adjustments include:

olevels of and trends in delinquencies and non-accrual loans;

olevels of and trends in charge-offs and recoveries;

otrends in volume and terms of loans;

ochanges in risk selection and underwriting standards;

ochanges in lending policies, procedures and practices;

oexperience, ability and depth of lending management;

onational and local economic trends and conditions; and

ochanges in credit concentrations.

Allocation of the allowance for different categories of loans is based on the methodology as explained above.  A key element of the methodology to determine the allowance is the Company's credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans.  Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company's assessment of conditions that affect the borrower's ability to meet its contractual obligations under the loan agreement.  That process includes reviewing borrowers' current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower.  Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be.  The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted.  The credit risk grades for the commercial and industrial and commercial real estate loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades.  The loss factors applied are based upon the Company's historical experience as well as what we believe to be best practices and common industry standards.    Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs.  The changes in allocations in the commercial and industrial and commercial real estate loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio.

Each quarter, management performs an assessment of the allowance for loan losses. The Company's Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount based on current accounting guidance. The Special Assets Committee's focus is on ensuring the pertinent facts are considered and the reserve amounts pursuant to the accounting principles are reasonable. The assessment process includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company's Credit Administration function have assigned a criticized or classified risk rating. In 2012, the Company did not change its policy or methodology in calculating the allowance for loan losses from the policy or methodology used in 2011.

The Company's policy is to charge off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged off at the point in time when the Company deems the balance to be uncollectible.

Information related to the change in the allowance for loan losses and the Company's recorded investment in loans by portfolio segment as of the period indicated is as follows:

As of and for the six months ended June 30, 2012
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$              1,221	$            3,979	$           1,435	$          1,051	$             422	$               8,108
		Charge-offs	65	739	435	45	-	1,284
		Recoveries	12	-	15	-	-	27
		Provision	27	903	410	327	(367)	1,300
	Ending balance		$              1,195	$            4,143	$           1,425	$          1,333	$                55	$                8,151
	Ending balance: individually
		evaluated for impairment	$                   34	$            1,549	$                85	$              131		$                1,799
	Ending balance: collectively
		evaluated for impairment	$              1,161	$            2,594	$           1,340	$          1,202		$                6,297
Loans Receivables:
	Ending balance		$           68,733	$       167,995	$        89,378	$      100,012		$           426,118
	Ending balance: individually
		evaluated for impairment	$                 315	$         14,578	$           1,290	$          2,611		$              18,794
	Ending balance: collectively
		evaluated for impairment	$           68,418	$       153,417	$        88,088	$        97,401		$            407,324

As of and for the three months ended June 30, 2012
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$              1,206	$           4,041	$           1,453	$          1,198	$             422	$               8,320
		Charge-offs	65	464	228	28	-	785
		Recoveries	4	-	12	-	-	16
		Provision	50	566	188	163	(367)	600
	Ending balance		$              1,195	$           4,143	$           1,425	$          1,333	$                55	$               8,151

As of and for the year ended December 31, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,368	$              4,239	$            1,248	$               863	$               180	$                 7,898
		Charge-offs	128	699	654	577	-	2,058
		Recoveries	407	37	17	7	-	468
		Provision	(426)	402	824	758	242	1,800
	Ending balance		$               1,221	$              3,979	$            1,435	$            1,051	$               422	$                 8,108
	Ending balance: individually
		evaluated for impairment	$                    63	$              1,245	$               143	$                 84		$                  1,535
	Ending balance: collectively
		evaluated for impairment	$               1,158	$             2,734	$            1,292	$               967		$                  6,151
Loans Receivables:
	Ending balance		$             68,372	$         165,473	$          88,248	$          84,201		$              406,294
	Ending balance: individually
		evaluated for impairment	$                  501	$            14,621	$            1,747	$            2,407		$                19,276
	Ending balance: collectively
		evaluated for impairment	$             67,871	$          150,852	$          86,501	$          81,794		$              387,018

Information related to the change in the allowance for loan losses as of and for the three and six months ended June 30, 2011 is a follows:

As of and for the six months ended June 30, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,368	$            4,239	$            1,248	$               863	$               180	$                 7,898
		Charge-offs	-	193	370	99	-	662
		Recoveries	7	30	14	7	-	58
		Provision	117	48	351	98	236	850
	Ending balance		$               1,492	$            4,124	$            1,243	$               869	$               416	$                 8,144

As of and for the three months ended June 30, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,571	$              4,281	$            1,251	$               870	$               251	$                 8,224
		Charge-offs	-	193	303	-	-	496
		Recoveries	3	30	8	-	-	41
		Provision	(82)	6	287	(1)	165	375
	Ending balance		$               1,492	$              4,124	$            1,243	$               869	$                416	$                  8,144

XML

Nature Of Operations and Critical Accounting Policies (Narrative) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Nature Of Operations And Critical Accounting Policies [Abstract]
Year Founded	1903
Interest Paid	$ 1.8	$ 2.7
Income Taxes Paid, Net	1.2	1.0
Transfer to Other Real Estate	1.2	0
Transfer of Portfolio Loans and Leases to Held-for-sale	$ 2.0	$ 3.3

XML

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Investment Securities [Abstract]

Unrealized Gain (Loss) on Investments [Table Text Block]

				Gross	Gross
			Amortized	unrealized	unrealized	Fair
(dollars in thousands)			cost	gains	losses	value
June 30, 2012
Held-to-maturity securities:
	MBS - GSE residential		$             338	$               39	$                  -	$            377
Available-for-sale securities:
	Agency - GSE		$       24,741	$               93	$                 9	$       24,825
	Obligations of states and
		political subdivisions	28,415	2,410	-	30,825
	Corporate bonds:
		Pooled trust preferred securities	6,407	128	4,934	1,601
	MBS - GSE residential		51,125	1,660	10	52,775
		Total debt securities	110,688	4,291	4,953	110,026
	Equity securities - financial services		295	150	-	445
		Total available-for-sale securities	$     110,983	$          4,441	$          4,953	$     110,471
				Gross	Gross
			Amortized	unrealized	unrealized	Fair
(dollars in thousands)			cost	gains	losses	value
December 31, 2011
Held-to-maturity securities:
	MBS - GSE residential		$             389	$                42	$                   -	$             431
Available-for-sale securities:
	Agency - GSE		$        25,773	$             108	$                  8	$        25,873
	Obligations of states and
		political subdivisions	28,402	1,937	180	30,159
	Corporate bonds:
		Pooled trust preferred securities	6,574	123	5,231	1,466
	MBS - GSE residential		48,792	1,482	57	50,217
		Total debt securities	109,541	3,650	5,476	107,715
	Equity securities - financial services		295	144	-	439
		Total available-for-sale securities	$     109,836	$          3,794	$          5,476	$     108,154

Investments Classified by Contractual Maturity Date [Table Text Block]

		Amortized	Fair
(dollars in thousands)		cost	value
Held-to-maturity securities:
MBS - GSE residential		$                 338	$                 377
Available-for-sale securities:
Debt securities:
	Due in one year or less	$              4,122	$              4,127
	Due after one year through five years	20,135	20,215
	Due after five years through ten years	3,548	3,740
	Due after ten years	31,758	29,169
Total debt securities		59,563	57,251
MBS - GSE residential		51,125	52,775
Total available-for-sale debt securities		$         110,688	$         110,026

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

			Less than 12 months		More than 12 months		Total
			Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
(dollars in thousands)			value	losses	value	losses	value	losses
June 30, 2012
Agency - GSE			$   3,068	$            9	$            -	$             -	$  3,068	$            9
Obligations of states and political subdivisions			-	-	-	-	-	-
Corporate bonds:
	Pooled trust preferred securities		-	-	1,473	4,934	1,473	4,934
MBS - GSE residential			3,777	10	-	-	3,777	10
		Total temporarily impaired securities	$   6,845	$         19	$   1,473	$    4,934	$  8,318	$    4,953
Number of securities			5		8		13
December 31, 2011
Agency - GSE			$   4,011	$            8	$            -	$             -	$  4,011	$             8
Obligations of states and political subdivisions			-	-	941	180	941	180
Corporate bonds:
	Pooled trust preferred securities		-	-	1,343	5,231	1,343	5,231
MBS - GSE residential			6,126	57	-	-	6,126	57
		Total temporarily impaired securities	$   10,137	$          65	$   2,284	$   5,411	$   12,421	$      5,476
Number of securities			7		9		16

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

The following table summarizes the amount of OTTI recognized in earnings, by security during the periods indicated:

	Three months ended		Six months ended,
	June 30,		June 30,
(dollars in thousands)	2012	2011	2012	2011
Pooled trust preferred securities:
PreTSL IX, B1, B3	$           -	$            -	$         18	$            -
PreTSL XVIII, C	31	-	118	-
PreTSL XXIV, B1	-	-	-	75
Total	$         31	$            -	$      136	$           75

The following is a tabular roll-forward of the cumulative amount of credit-related OTTI recognized in earnings:

	Six months ended
	June 30, 2012
(dollars in thousands)	HTM	AFS	Total
Beginning balance of credit-related OTTI	$           -	$  (15,280)	$  (15,280)
Additions for credit-related OTTI
not previously recognized	-	-	-
Additional credit-related OTTI
previously recognized when there
is no intent to sell before recovery of
amortized cost basis	-	(136)	(136)
Ending balance of credit-related OTTI	$           -	$  (15,416)	$  (15,416)

Non-Accrual Pooled Trust Preferred Securities [Table Text Block]

(dollars in thousands)		June 30, 2012		December 31, 2011
		Book	Fair	Book	Fair
Deal	Class	value	value	value	value
Pre TSL V	Mezzanine	$               -	$           25	$              -	$           25
Pre TSL VII	Mezzanine	-	79	-	79
Pre TSL IX	B-1,B-3	1,547	489	1,605	529
Pre TSL XI	B-3	1,112	303	1,119	357
Pre TSL XV	B-1	-	24	-	20
Pre TSL XVIII	C	167	-	285	5
Pre TSL XIX	C	316	-	316	8
Pre TSL XXIV	B-1	407	15	407	15
		$        3,549	$         935	$      3,732	$      1,038

Pooled Trust Preferred Securities [Table Text Block]

(dollars in thousands)
						Current		Actual		Excess	Effective
						number		deferrals		subordination (2)	subordination (3)
						of		and defaults		as a % of	as a % of
					Moody's /	banks /	Actual	as a % of		current	current
		Book	Fair	Unrealized	Fitch	insurance	deferrals	current	Excess	performing	performing
Deal	Class	value	value	gain (loss)	ratings (1)	companies	and defaults	collateral	subordination	collateral	collateral
Pre TSL IV	Mezzanine	$          412	$          400	$         (12)	Caa2/CCC	6 / -	$     18,000	27.1	$         10,214	19.7	37.6
Pre TSL V	Mezzanine	-	25	25	C / D	3 / -	28,950	100.0	None	N/A	N/A
Pre TSL VII	Mezzanine	-	79	79	Ca / C	17 / -	135,000	64.0	None	N/A	N/A
Pre TSL IX	B-1,B-3	1,547	489	(1,058)	Ca / C	47 / -	134,510	31.8	None	N/A	N/A
Pre TSL XI	B-3	1,112	303	(809)	Ca / C	62 / -	185,280	32.3	None	N/A	N/A
Pre TSL XV	B-1	-	24	24	C / C	63 / 8	195,200	33.8	None	N/A	N/A
Pre TSL XVI	C	-	-	-	C / C	49 / 7	273,478	47.7	None	N/A	N/A
Pre TSL XVII	C	-	-	-	C / C	50 / 6	179,270	37.9	None	N/A	N/A
Pre TSL XVIII	C	167	-	(167)	Ca / C	66 / 13	200,340	30.4	None	N/A	N/A
Pre TSL XIX	C	316	-	(316)	C / C	55 / 14	179,150	27.6	None	N/A	N/A
Pre TSL XXIV	B-1	407	15	(392)	Ca /  CC	77 / 12	346,300	34.3	None	N/A	15.0
Pre TSL XXV	C-1	-	-	-	C / C	58 / 9	271,100	34.2	None	N/A	N/A
Pre TSL XXVII	B	2,446	266	(2,180)	Ca / CC	42 / 7	91,800	28.1	None	N/A	23.8
		$      6,407	$      1,601	$    (4,806)

(1)   All ratings have been updated through June 30, 2012.

(2)   Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds. 

(3)   Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest.  This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral.

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Nature Of Operations and Critical Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2012

Nature Of Operations And Critical Accounting Policies [Abstract]

Principles of consolidation

The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company's assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company.

In the opinion of management, the consolidated balance sheets as of June 30, 2012 and December 31, 2011 and the related consolidated statements of income for the three- and six-month periods ended June 30, 2012 and 2011, and consolidated statements of comprehensive income, consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the six months ended June 30, 2012 and 2011 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2011 financial statements to conform to the 2012 presentation.

This Quarterly Report on Form 10-Q should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2011, and the notes included therein, included within the Company's Annual Report filed on Form 10-K.

Use of estimates

The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect many of the reported amounts and disclosures. Actual results could differ from these estimates.

A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at June 30, 2012 is adequate and reasonable. Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance value. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination.

Another material estimate is the calculation of fair values of the Company's investment securities. Except for the Company's investment in corporate bonds, consisting of pooled trust preferred securities, fair values of the other investment securities are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. For the pooled trust preferred securities, management is unable to obtain readily attainable and realistic pricing from market traders due to a lack of active market participants and therefore management has determined the market for these securities to be inactive. In order to determine the fair value of the pooled trust preferred securities, management relied on the use of an income valuation approach (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs, the results of which are more representative of fair value than the market approach valuation technique used for the other investment securities.

Fair value measurement

Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company's investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders' equity as a component of accumulated other comprehensive income (loss) (OCI).

The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these rare circumstances, pricing may be obtained from other entities and the loans are transferred at the lower of cost or market value and simultaneously sold. As of December 31, 2011, loans classified as HFS consisted of residential mortgages. There were no loans classified as HFS as of June 30, 2012.

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Stock Plans

6 Months Ended

Jun. 30, 2012

Stock Plans [Abstract]

Stock plans

6. Stock plans

The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards, and applies the fair value method of accounting for stock-based compensation provided under the current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the common stock of the Company to secure, retain and motivate employees who may be responsible for the operation and for the management of the affairs of the Company and to secure, retain and motivate the members of the Company's board of directors, thereby aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified) stock appreciation rights (SARs) or restricted stock.

In conjunction with the annual shareholders' meeting held on May 1, 2012, the shareholders of the Company approved and therefore the Company adopted the 2012 Omnibus Stock Incentive Plan and the 2012 Director Stock Incentive Plan (collectively, the 2012 stock incentive plans).  The 2012 stock incentive plans have replaced the 2000 Independent Directors Stock Option Plan and the 2000 Stock Incentive Plan (collectively, the 2000 stock incentive plans), both of which expired in 2011.  Unless previously terminated by the Company's board of directors, the 2012 stock incentive plans shall terminate on, and no options shall be granted after the tenth anniversary – or in the year 2022.  Previously issued and currently outstanding options under the 2000 stock incentive plans may be exercised pursuant to the terms of the stock option plans existing at the time of grant.  However, the outstanding options under the 2000 stock incentive plans may be cancelled and replaced with grants under the new 2012 stock incentive plans.   

For the 2012 Omnibus Stock Incentive Plan, the Company has reserved 500,000 shares of its no-par common stock for issuance under the plan. On June 5, 2012, the Company granted one share of restricted stock to each of its qualifying employees, or a total of 151 shares. The shares will vest one-year from date of grant and the Company has projected a forfeiture rate of 28%. On the date of grant, the value of the Company's common stock was $21.50 per share and share-based compensation expense of $2,300 was recognized. Typically, the Company recognizes the share-based compensation expense over the requisite service or vesting period, however due to immateriality the Company has chosen to recognize all of the expense in the current period. Share-based compensation expense is included as a component of salaries and employee benefits in the consolidated statements of income. There were no stock-based awards granted to employees under any of the Company's stock compensation plans in all of 2011.

For the 2012 Director Stock Incentive Plan, the Company has reserved 500,000 shares of its no-par common stock for issuance under the plan. For the three- and six-months ended June 30, 2012, no stock-based awards were granted to the Company's directors. In addition, there were no stock-based awards granted to directors under any of the Company's stock compensation plans in all of 2011.

In addition to the two stock option plans, the Company established the 2002 Employee Stock Purchase Plan (the ESPP) and reserved 110,000 shares of its un-issued capital stock for issuance. The plan was designed to promote broad-based employee ownership of the Company's stock and to motivate employees to improve job performance and enhance the financial results of the Company. Under the ESPP, employees use automatic payroll withholdings to purchase the Company's capital stock at a discounted price based on the fair market value of the capital stock as measured on either the commencement date or termination date. As of June 30, 2012, 25,700 shares have been issued under the ESPP. The ESPP is considered a compensatory plan and as such, is required to comply with the provisions of authoritative accounting guidance. The Company recognizes compensation expense on its ESPP on the date the shares are purchased which occurs during the Company's first calendar quarter. For the six months ended June 30, 2012 and 2011, compensation expense related to the ESPP approximated $12,000 and $24,000, respectively, and is included as a component of salaries and employee benefits in the consolidated statements of income.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair value measurements

7. Fair value measurements

The accounting guidelines establish a framework for measuring and disclosing information about fair value measurements. The guidelines of fair value reporting instituted a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument;

Level 3 inputs are unobservable inputs based on the Company's own assumptions to measure assets and liabilities at fair value. Level 3 pricing for securities may also include unobservable inputs based upon broker-traded transactions.

A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The Company uses fair value to measure certain assets and, if necessary, liabilities on a recurring basis when fair value is the primary measure for accounting. Thus, the Company uses fair value for AFS securities. Fair value is used on a non-recurring basis to measure certain assets when adjusting carrying values to market values, such as impaired loans and other real estate owned.

The following table represents the carrying amount and estimated fair value of the Company's financial instruments as of the periods indicated:

		June 30, 2012					December 31, 2011
				Quoted prices	Significant	Significant
				in active	other	other
		Carrying	Estimated	markets	observable inputs	unobservable inputs	Carrying	Estimated
(dollars in thousands)		amount	fair value	(Level 1)	(Level 2)	(Level 3)	amount	fair value
Financial assets:
	Cash and cash equivalents	$  22,791	$ 22,791	$       22,791	$                         -	$                         -	$   52,165	$   52,165
	Held-to-maturity securities	338	377	-	377	-	389	431
	Available-for-sale securities	110,471	110,471	445	108,425	1,601	108,154	108,154
	FHLB Stock	3,339	3,339	-	-	-	3,699	3,699
	Loans, net	417,967	426,686	-	-	426,686	398,186	400,100
	Loans held-for-sale	-	-	-	-	-	4,537	4,661
	Accrued interest	2,143	2,143	2,143	-	-	2,082	2,082
Financial liabilities:
	Deposit liabilities	512,070	510,706	389,307	121,399	-	515,802	513,729
	Short-term borrowings	8,106	8,106	8,106	-	-	9,507	9,507
	Long-term debt	16,000	18,909	-	18,909	-	21,000	24,272
	Accrued interest	232	232	232	-	-	293	293

The carrying value of short-term financial instruments, as listed above, approximates their fair value. These instruments generally have limited credit exposure, no stated or short-term maturities and carry interest rates that approximate market:

·Cash and cash equivalents;

·Non-interest bearing deposit accounts;

·Savings, NOW and money market accounts;

·Short-term borrowings and

·Accrued interest

Securities: With the exception of pooled trust preferred securities, fair values on the other debt investment securities (level 2) are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. The fair values of pooled trust preferred securities are determined based on an income approach, present value technique.

FHLB stock: The Company considers the fair value of FHLB stock is equal to its carrying value, or cost since there is no market value available and investments in and transactions for the stock are restricted and limited to the FHLB and its member-banks.

Loans, net: The fair value of loans is estimated by the net present value of the future expected cash flows discounted at the current offering rates. Current offering rates consider, among other things, credit risk. The carrying value that fair value is compared to is net of the allowance for loan losses and since there is a significant judgment included in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy.

Loans held-for-sale: The fair value of loans held-for-sale is estimated using rates currently offered for similar loans and is typically obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank of Pittsburgh (FHLB).

Certificates of deposit: The fair values of certificates of deposit are based on discounted cash flows using rates which approximate Level 2 market rates for deposits of similar maturities.

Long-term debt: Fair value is estimated using the rates currently offered for similar borrowings.

The following tables illustrate the financial instruments measured at fair value on a recurring basis segregated by hierarchy fair value levels as of the period indicated:

				Quoted prices
				in active	Significant other	Significant other
			Total carrying value	markets	observable inputs	unobservable inputs
(dollars in thousands)			June 30, 2012	(Level 1)	(Level 2)	(Level 3)
Available-for-sale securities:
	Agency - GSE		$                   24,825	$                              -	$                   24,825	$                              -
	Obligations of states and political subdivisions		30,825	-	30,825	-
	Corporate bonds:
		Pooled trust preferred securities	1,601	-	-	1,601
	MBS - GSE residential		52,775	-	52,775	-
	Equity securities - financial services		445	445	-	-
	Total available-for-sale securities		$                 110,471	$                         445	$                 108,425	$                     1,601
				Quoted prices
				in active	Significant other	Significant other
			Total carrying value	markets	observable inputs	unobservable inputs
(dollars in thousands)			December 31, 2011	(Level 1)	(Level 2)	(Level 3)
Available-for-sale securities:
	Agency - GSE		$                    25,873	$                              -	$                    25,873	$                              -
	Obligations of states and political subdivisions		30,159	-	30,159	-
	Corporate bonds:
		Pooled trust preferred securities	1,466	-	-	1,466
	MBS - GSE residential		50,217	-	50,217	-
	Equity securities - financial services		439	439	-	-
	Total available-for-sale securities		$                  108,154	$                          439	$                 106,249	$                      1,466

Equity securities in the AFS portfolio are measured at fair value using quoted market prices for identical assets and are classified within Level 1 of the valuation hierarchy. Other than the Company's investment in corporate bonds, consisting of pooled trust preferred securities, all other debt securities in the AFS portfolio are measured at fair value using market quotations provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Assets classified as Level 2 use valuation techniques that are common to bond valuations. That is, in active markets whereby bonds of similar characteristics frequently trade, quotes for similar assets are obtained. For the six months ended June 30, 2012, there were no transfers to and from Level 1 and Level 2 fair value measurements for financial assets measured on a recurring basis.

The Company's pooled trust preferred securities include both observable and unobservable inputs to determine fair value and, therefore, are considered Level 3 inputs. The accounting pronouncement related to fair value measurement provides guidance on estimating fair value when the volume and level of activity for an asset or liability have significantly decreased in relation to normal market activity such as is the case with the Company's investment in pooled trust preferred securities. The requirements of fair value measurement also call for additional disclosures on fair value measurements.

The following table presents and summarizes quantitative information about assets measured at fair value on a recurring basis whereby the Company uses Level 3 inputs to determine fair value:

	Quantitative information about Level 3 fair value measurements as of June 30, 2012:
		Fair	Valuation	Unobservable	Input
(dollars in thousands)		value	technique	input	utilized
Available-for-sale securities:
Pooled trust preferred securities		$ 1,601	discounted cash flow	- structural behavior;	issuer specific
				- estimated probability of default	4.50% - 4.62%
				- correlation analysis among issuers	50%-30%
				- loss given default rate	100%
				- prepayment rate	0%
				- recovery rate	0%
				- credit adjusted cash flow discount rate	0% - 54.4%

The Company owns 13 issues of $22.3 million, original par value, pooled trust preferred securities. As of June 30, 2012, the amortized cost and fair values amounted to $6.4 million and $1.6 million, respectively. The market for these securities is inactive – no new issues since late 2007, financial institutions with less than $10 billion in assets qualify for new issue Tier 1 capital treatment which further limits the already low possibility of a new issue coming to market, trading is sparse and consummated mostly by speculative hedge funds. Observable pricing market inputs such as broker models, S&P pricing based on interpolated available market activity and Bloomberg fair value models for corporate issues are available, however, such inputs to be used as indicators of fair value would require significant adjustments. Therefore, management has determined that a fair value modeled income approach (discounted cash flow) is more representative of fair value than the market approach. This technique strives to maximize the use of observable inputs and minimizes the use of unobservable inputs. The Company uses the Moody's Wall Street Analytics methodology of valuation and analysis of collateralized "TruPS", and their proprietary software to help analyze and value the Company's pooled trust preferred securities portfolio. The major unobservable input assumptions used in the cash flow analysis include:

• Credit quality estimated using issuer specific probability of default;
• Correlation analysis or the potential for the tendency of companies to default once other companies in the same industry default: 50% for same industry and 30% for across industries;
• Loss given default or cash lost to investor.  Assumed to be 100% with no recovery:
• Cash flows were forecast for the underlying collateral and applied to each tranche to determine the resulting distribution among securities, capturing the credit risk element of the collateral, and to determine the estimated fundamental value of the security.  No prepayments are assumed and the tranche coupon rate is used as the discount rate; and   
• Finally, the orderly liquid exit values (OLEV) are calculated for valuation purposes.  The OLEV considers a new issuance spread as if the market was both liquid and active utilizing the current risk profile of the security and regression analysis across a large sample of tranches based on historical data.  The discount rates determined on an overall basis ranged from 0% to 54% as of June 30, 2012 and applied to the fundamental  cash flow value (as determined above) of the security to determine fair value.

The following table illustrates the changes in Level 3 financial instruments, consisting of the Company's investment in pooled trust preferred securities, measured at fair value on a recurring basis for the periods indicated:

		As of and for the six months ended June 30,
(dollars in thousands)			2012	2011
Balance at beginning of period			$                    1,466	$                      1,453
Realized losses in earnings			(136)	(75)
Unrealized gains (losses) in OCI:
	Gains		410	206
	Losses		(108)	(243)
Pay down / settlement			(47)	(28)
Interest paid in kind			14	6
Accretion			2	2
Balance at end of period			$                    1,601	$                      1,321

The following table illustrates the financial instruments measured at fair value on a non-recurring basis segregated by hierarchy fair value levels as of the periods indicated:

(dollars in thousands)
			Quoted prices in	Significant other	Significant other
		Total carrying value	active markets	observable inputs	unobservable inputs
		at June 30, 2012	(Level 1)	(Level 2)	(Level 3)
Impaired loans		$                   8,601	$                        -	$                        -	$                 8,601
Other real estate owned		1,800	-	-	1,800
	Total	$                 10,401	$                        -	$                        -	$               10,401
(dollars in thousands)
			Quoted prices in	Significant other	Significant other
		Total carrying value	active markets	observable inputs	unobservable inputs
		at December 31, 2011	(Level 1)	(Level 2)	(Level 3)
Impaired loans		$                   10,102	$                         -	$                         -	$                10,102
Other real estate owned		902	-	-	902
	Total	$                   11,004	$                         -	$                         -	$                11,004

From time-to-time, the Company may be required to record at fair value financial instruments on a non-recurring basis, such as impaired loans and other real estate owned (ORE). These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting on write downs of individual assets.

The following describes valuation methodologies used for financial instruments measured at fair value on a non-recurring basis.

A loan is considered impaired when, based upon current information and events; it is probable that the Company will be unable to collect all scheduled payments in accordance with the contractual terms of the loan. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for loan losses, and as such are carried at the lower of net recorded investment or the estimated fair value. Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and estimates and assumptions developed by management. For other real estate owned fair value is generally determined through independent appraisals of the underlying properties which generally include various Level 3 inputs which are not identifiable. The appraisals may be adjusted by management for qualitative reasons and estimated liquidation expenses. Management's assumptions may include consideration of location and occupancy of the property and current economic conditions. At June 30, 2012 to account for these factors, adjustments to the appraisal values ranged from 0.0% to -54.5% (weighted average -24.7%). Valuation techniques for impaired loans are generally determined through independent appraisals of the underlying collateral which generally include various Level 3 inputs which are not identifiable. The appraisals may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates are utilized. The range of liquidation expenses and other appraisal adjustments of the impaired loans at June 30, 2012 was -15.0% to -32.2% (weighted-average -23.7%). Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used by appraisers, the Company recognizes that valuations could differ across a wide spectrum of valuation techniques employed and accordingly, fair value estimates for impaired loans are classified as Level 3.

The fair value for ORE is estimated in the same manner as impaired loans and, as such, is also classified as Level 3. As these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs to reflect decreases in estimated values resulting from sales price observations and the impact of changing economic and market conditions.

Management of the Company concluded that the inputs used to determine fair value of its non-recurring financial instruments, including valuations received from third party certified appraisers, industry standard liquidation rates and other subjective inputs from management, contain a number of assumptions that are unobservable in the marketplace.

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Loans (Policy)

6 Months Ended

Jun. 30, 2012

Financing Receivable, Recorded Investment [Line Items]

Non-Accrual Loan Status

Non-accrual loans

The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. Commercial and industrial and commercial real estate loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged off when the loan is 90 days or more past due as to principal and interest.

Troubled Debt Restructuring Status

Troubled Debt Restructuring

A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession.  The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted.  Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans.  Additional collateral, a co-borrower, or a guarantor is often requested.  Commercial real estate and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor.  Construction loans modified in a TDR may also involve extending the interest-only payment period.  Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for an extended period of time.  After the lowered monthly payment period ends, the borrower would revert back to paying principal and interest per the original terms with the maturity date adjusted accordingly.  Home equity modifications and automobile loan modifications are typically not made and therefore standard terms do not exist for loans of this type.

Past Due Loan Status

Past due loans

Loans are considered past due when the contractual principal and/or interest is not received by the due date.

Impaired Loan Status

Impaired loans

A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower's prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans and other loans deemed to be impaired based on the aforementioned factors.

Allowance For Loan Losses Status

Allowance for loan losses

Management continually evaluates the credit quality of the Company's loan portfolio and performs a formal review of the adequacy of the allowance for loan losses (the allowance) on a quarterly basis. The allowance reflects management's best estimate of the amount of credit losses in the loan portfolio. Management's judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received.

Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows:

§identification of specific impaired loans by loan category;

§specific loans that are not impaired, but have an identified potential for loss;

§calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence;

§determination of homogenous pools by loan category and eliminating the impaired loans;

§application of historical loss percentages (two-year average) to pools to determine the allowance allocation;

§application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. Qualitative factor adjustments include:

olevels of and trends in delinquencies and non-accrual loans;

olevels of and trends in charge-offs and recoveries;

otrends in volume and terms of loans;

ochanges in risk selection and underwriting standards;

ochanges in lending policies, procedures and practices;

oexperience, ability and depth of lending management;

onational and local economic trends and conditions; and

ochanges in credit concentrations.

Allocation of the allowance for different categories of loans is based on the methodology as explained above.  A key element of the methodology to determine the allowance is the Company's credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans.  Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company's assessment of conditions that affect the borrower's ability to meet its contractual obligations under the loan agreement.  That process includes reviewing borrowers' current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower.  Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be.  The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted.  The credit risk grades for the commercial and industrial and commercial real estate loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades.  The loss factors applied are based upon the Company's historical experience as well as what we believe to be best practices and common industry standards.    Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs.  The changes in allocations in the commercial and industrial and commercial real estate loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio.

Each quarter, management performs an assessment of the allowance for loan losses. The Company's Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount based on current accounting guidance. The Special Assets Committee's focus is on ensuring the pertinent facts are considered and the reserve amounts pursuant to the accounting principles are reasonable. The assessment process includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company's Credit Administration function have assigned a criticized or classified risk rating. In 2012, the Company did not change its policy or methodology in calculating the allowance for loan losses from the policy or methodology used in 2011.

The Company's policy is to charge off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged off at the point in time when the Company deems the balance to be uncollectible.

Credit Quality Indicators [Member]

Financing Receivable, Recorded Investment [Line Items]

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Commercial and industrial and commercial real estate

The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the commercial and industrial and commercial real estate portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the commercial and industrial and commercial real estate portfolios.

The following is a description of each risk rating category the Company uses to classify each of its commercial and industrial and commercial real estate loans:

Pass

Loans in this category have an acceptable level of risk and are graded in range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be good, and there is some depth existing. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality.

Special Mention

Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Loans in this category should not remain on the list for an inordinate period of time (no more than one year) and then the loan should be passed or classified appropriately. Cash flow may not be sufficient to support total debt service requirements.

Substandard

Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Loans 90+ days past due unless otherwise fully supported should be classified substandard. Also, borrowers that are bankrupt are substandard.

Doubtful

Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term.  Many of the weaknesses present in a substandard loan exist.  Liquidation of collateral, if any, is likely.  Any loan graded lower than an eight is considered to be uncollectible and charged-off.         

Consumer and Residential

For these portfolios, the Company utilizes payment activity, history and recency of payment. Therefore, the consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. Non-performing loans are considered to be loans past due 90 days or more and accruing and non-accrual loans. All loans not classified as non-performing are considered performing.

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Loans (Modified as TDR Table) (Details) (Commercial Real Estate Non-Owner Occupied [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Commercial Real Estate Non-Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	1
Recorded investment	$ 1,118

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Basic And Diluted Earnings Per Share Calculation

		Three months ended June 30,		Six months ended June 30,
		2012	2011	2012	2011
(dollars in thousands except per share data)
Basic EPS:
Net income available to common shareholders		$            1,317	$            1,289	$             2,574	$           2,516
Weighted-average common shares outstanding		2,277,423	2,203,550	2,269,402	2,194,569
Basic EPS		$          0.57	$          0.59	$           1.13	$             1.15
Diluted EPS:
Net income available to common shareholders		$            1,317	$            1,289	$             2,574	$           2,516
Weighted-average common shares outstanding		2,277,423	2,203,550	2,269,402	2,194,569
Potentially dilutive common shares		151	-	151	-
Weighted-average common and potentially
	dilutive shares outstanding	2,277,574	2,203,550	2,269,553	2,194,569
Diluted EPS		$          0.57	$          0.59	$           1.13	$             1.15

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Investment Securities (Investment Classified By Contractual Maturity Date) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Amortized cost: Due in one year or less	$ 4,122
Amortized cost: Due after one year through five years	20,135
Amortized cost: Due after five years through ten years	3,548
Amortized cost: Due after ten years	31,758
Total debt Securities, Amortized cost	59,563
Available-for-sale Securities, Amortized Cost Basis	110,983	109,836
Fair value: Due in one year or less	4,127
Fair value: Due after one year through five years	20,215
Fair value: Due after fine years through ten years	3,740
Fair value: Due after ten years	29,169
Total Debt Securities, Fair Value	57,251
Available-for-sale Securities	110,471	108,154
Total debt securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	110,688	109,541
Available-for-sale Securities	110,026	107,715
MBS - GSE [Member]
Schedule of Investments [Line Items]
MBS- GSE residental, Amortized cost	338
MBS- GSE residental, Fair value	377
MBS- GSE Residental, Amortized Cost	51,125
Available-for-sale Securities, Amortized Cost Basis	51,125	48,792
MBS- GSE Residental, Fair value	52,775
Available-for-sale Securities	$ 52,775	$ 50,217

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Stock Plans (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended		6 Months Ended
	Jun. 05, 2012	Jun. 30, 2012 Director Stock Incentive Plan - 2012 [Member]	Jun. 30, 2012 Director Stock Incentive Plan - 2012 [Member]	Dec. 31, 2011 Director Stock Incentive Plan - 2012 [Member]	Jun. 30, 2012 The 2012 Omnibus Stock Incentive Plan [Member]	Dec. 31, 2011 The 2012 Omnibus Stock Incentive Plan [Member]	Dec. 31, 2011 The 2000 Stock Option Plans [Member]	Jun. 30, 2012 Employee Stock Purchase Plan [Member]	Jun. 30, 2011 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Shares Authorized		500,000	500,000		500,000			110,000
Awarded Stock Options		$ 0	$ 0	$ 0		$ 0
2000 Stock Option Plan Expiration Date							2011
Number Of Shares Issued In The Period								25,700
Allocated Share-based Compensation Expense					$ 2,300			$ 12,000	$ 24,000
Restricted Stock Shares	151
Share Price	$ 21.50
Forfeiture Rate	28.00%

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Consolidated 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
Consolidated Statements of Comprehensive Income
Net income	$ 1,317	$ 1,289	$ 2,574	$ 2,516
Other comprehensive income, before tax:
Unrealized holding gains on available-for-sale securities	545	1,570	1,149	2,283
Reclassification adjustment for gains realized in income	(7)	(16)	(261)	(16)
Net unrealiized gains	538	1,554	888	2,267
Tax effect	(183)	(528)	(302)	(771)
Unrealized gains, net of tax	355	1,026	586	1,496
Non-credit-related impairment gains (losses) on investment securities not expected to be sold	238	(58)	282	(53)
Tax effect	(81)	20	(96)	18
Net non-credit-related impairment gains (losses) on investment securities	157	(38)	186	(35)
Other comprehensive income, net of tax	512	988	772	1,461
Total comprehensive income, net of tax	$ 1,829	$ 2,277	$ 3,346	$ 3,977

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Investment Securities

6 Months Ended

Jun. 30, 2012

Investment Securities [Abstract]

Investment Securities

3. Investment securities

The amortized cost and fair value of investment securities at June 30, 2012 and December 31, 2011 are summarized as follows:

				Gross	Gross
			Amortized	unrealized	unrealized	Fair
(dollars in thousands)			cost	gains	losses	value
June 30, 2012
Held-to-maturity securities:
	MBS - GSE residential		$             338	$               39	$                  -	$            377
Available-for-sale securities:
	Agency - GSE		$       24,741	$               93	$                 9	$       24,825
	Obligations of states and
		political subdivisions	28,415	2,410	-	30,825
	Corporate bonds:
		Pooled trust preferred securities	6,407	128	4,934	1,601
	MBS - GSE residential		51,125	1,660	10	52,775
		Total debt securities	110,688	4,291	4,953	110,026
	Equity securities - financial services		295	150	-	445
		Total available-for-sale securities	$     110,983	$          4,441	$          4,953	$     110,471
				Gross	Gross
			Amortized	unrealized	unrealized	Fair
(dollars in thousands)			cost	gains	losses	value
December 31, 2011
Held-to-maturity securities:
	MBS - GSE residential		$             389	$                42	$                   -	$             431
Available-for-sale securities:
	Agency - GSE		$        25,773	$             108	$                  8	$        25,873
	Obligations of states and
		political subdivisions	28,402	1,937	180	30,159
	Corporate bonds:
		Pooled trust preferred securities	6,574	123	5,231	1,466
	MBS - GSE residential		48,792	1,482	57	50,217
		Total debt securities	109,541	3,650	5,476	107,715
	Equity securities - financial services		295	144	-	439
		Total available-for-sale securities	$     109,836	$          3,794	$          5,476	$     108,154

The amortized cost and fair value of debt securities at June 30, 2012 by contractual maturity are summarized below:

		Amortized	Fair
(dollars in thousands)		cost	value
Held-to-maturity securities:
MBS - GSE residential		$                 338	$                 377
Available-for-sale securities:
Debt securities:
	Due in one year or less	$              4,122	$              4,127
	Due after one year through five years	20,135	20,215
	Due after five years through ten years	3,548	3,740
	Due after ten years	31,758	29,169
Total debt securities		59,563	57,251
MBS - GSE residential		51,125	52,775
Total available-for-sale debt securities		$         110,688	$         110,026

Expected maturities will differ from contractual maturities because issuers and borrowers may have the right to call or repay obligations with or without call or prepayment penalty. Federal agency and municipal securities are included based on their original stated maturity. Mortgage-backed securities, which are based on weighted-average lives and subject to monthly principal pay-downs, are listed in total.

The following tables present the fair value and gross unrealized losses of investment securities aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of June 30, 2012 and December 31, 2011:

			Less than 12 months		More than 12 months		Total
			Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
(dollars in thousands)			value	losses	value	losses	value	losses
June 30, 2012
Agency - GSE			$   3,068	$            9	$            -	$             -	$  3,068	$            9
Obligations of states and political subdivisions			-	-	-	-	-	-
Corporate bonds:
	Pooled trust preferred securities		-	-	1,473	4,934	1,473	4,934
MBS - GSE residential			3,777	10	-	-	3,777	10
		Total temporarily impaired securities	$   6,845	$         19	$   1,473	$    4,934	$  8,318	$    4,953
Number of securities			5		8		13
December 31, 2011
Agency - GSE			$   4,011	$            8	$            -	$             -	$  4,011	$             8
Obligations of states and political subdivisions			-	-	941	180	941	180
Corporate bonds:
	Pooled trust preferred securities		-	-	1,343	5,231	1,343	5,231
MBS - GSE residential			6,126	57	-	-	6,126	57
		Total temporarily impaired securities	$   10,137	$          65	$   2,284	$   5,411	$   12,421	$      5,476
Number of securities			7		9		16

Most of the securities in the investment portfolio have fixed rates or have predetermined scheduled rate changes, and many have call features that allow the issuer to call the security at par before its stated maturity, without penalty. Management believes the cause of the unrealized losses is related to changes in interest rates, instability in the capital markets or the limited trading activity due to illiquid conditions in the debt market and is not directly related to credit quality.

Management conducts a formal review of investment securities on a quarterly basis for the presence of other-than-temporary impairment (OTTI). The accounting guidance related to OTTI requires the Company to assess whether OTTI is present when the fair value of a debt security is less than its amortized cost at the balance sheet date. Under these circumstances, OTTI is considered to have occurred if: (1) the entity has intent to sell the security; (2) more likely than not the entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost.

The accounting guidance requires that credit-related OTTI be recognized in earnings while non-credit-related OTTI on securities not expected to be sold be recognized in other comprehensive income (loss) (OCI). Non-credit-related OTTI is based on other factors affecting market conditions, including illiquidity. Presentation of OTTI is made in the consolidated statements of income on a gross basis with an offset for the amount of non-credit-related OTTI recognized in OCI.

The Company's OTTI evaluation process also follows the guidance set forth in topics related to debt and equity securities. The guidance set forth in these pronouncements require the Company to take into consideration current market conditions, fair value in relationship to cost, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, current analysts' evaluations, all available information relevant to the collectability of debt securities, the ability and intent to hold investments until a recovery of fair value which may be maturity and other factors when evaluating for the existence of OTTI. The guidance requires that OTTI be recognized as a realized loss through earnings when there has been an adverse change in the holder's expected cash flows such that the full amount (principal and interest) will probably not be received. This requirement is consistent with the impairment model in the guidance for accounting for debt and equity securities.

For all security types discussed below, as of June 30, 2012, the Company applied the criteria provided in the recognition and presentation guidance related to OTTI. That is, management has no intent to sell the securities and no conditions were identified by management that more likely than not would require the Company to sell the securities before recovery of their amortized cost basis. The results indicated there was no presence of OTTI for the Company's portfolios of Agency – Government Sponsored Enterprise (GSE), Mortgage-backed securities (MBS) – GSE residential and Obligations of states and political subdivisions

Agency - GSE and MBS - GSE residential

Agency – GSE and MBS – GSE residential securities consist of medium- and long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB) and Government National Mortgage Association (GNMA). These securities have interest rates that are largely fixed-rate issues, have varying mid- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government.

Obligations of states and political subdivisions

The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues.

In the above security types, the change in fair value is attributable to changes in interest rates and those instruments with unrealized losses were not caused by deterioration of credit quality. Accordingly, as of June 30, 2012, recognition of OTTI on these securities was unnecessary.

Pooled trust preferred securities

A Pooled Trust Preferred Collateralized Debt Obligation (CDO) is a type of investment security collateralized by trust preferred securities (TPS) issued by banks, insurance companies and real estate investment trusts. The primary collateral type is a TPS issued by a bank. A TPS is a hybrid security that consists of both debt and equity characteristics which includes the ability of the issuer to voluntarily defer interest payments for up to 20 consecutive quarters. A TPS is considered a junior security in the capital structure of the issuer.

There are various investment classes or tranches issued by the CDO. The most senior tranche has the lowest yield but the most protection from credit losses. Conversely, the most junior tranche has the highest yield and the most risk of credit loss. Junior tranches are subordinate to senior tranches and losses are generally allocated from the lowest tranche with the equity component holding the most risk of credit loss and then subordinate tranches in reverse order up to the most senior tranche. The allocation of losses is defined in the indenture when the CDO was formed.

Unrealized losses in the pooled trust preferred securities (PreTSLs) are caused mainly by the following factors: (1) collateral deterioration due to bank failures and credit concerns across the banking sector; (2) widening of credit spreads and (3) illiquidity in the market. The Company's review of its portfolio of pooled trust preferred securities determined that in 2012, credit-related OTTI be recorded on two holdings, both of which are contained in the Company's AFS securities portfolio, from credit quality downgrades on the underlying collateral, including the collateral of four banks deferring interest payments within these two securities and one bank fully redeeming which removes all future earnings cash flow.

The following table summarizes the amount of OTTI recognized in earnings, by security during the periods indicated:

	Three months ended		Six months ended,
	June 30,		June 30,
(dollars in thousands)	2012	2011	2012	2011
Pooled trust preferred securities:
PreTSL IX, B1, B3	$           -	$            -	$         18	$            -
PreTSL XVIII, C	31	-	118	-
PreTSL XXIV, B1	-	-	-	75
Total	$         31	$            -	$      136	$           75

The following is a tabular roll-forward of the cumulative amount of credit-related OTTI recognized in earnings:

	Six months ended
	June 30, 2012
(dollars in thousands)	HTM	AFS	Total
Beginning balance of credit-related OTTI	$           -	$  (15,280)	$  (15,280)
Additions for credit-related OTTI
not previously recognized	-	-	-
Additional credit-related OTTI
previously recognized when there
is no intent to sell before recovery of
amortized cost basis	-	(136)	(136)
Ending balance of credit-related OTTI	$           -	$  (15,416)	$  (15,416)

To determine credit-related OTTI, the Company analyzes the collateral of each individual tranche within each of the 13 individual pools in the Company's portfolio of pooled trust preferred securities (PreTSLs). The Company engaged a third party structured finance firm to: review the underlying collateral of each PreTSL; research trustee reports to update relevant data and credit ratings of the underlying collateral; project default rates and cash flows of the collateral and simulate 10,000 Monte Carlo time-to-default scenarios, performed quarterly to arrive at the single best estimate of future cash flow for each tranche.

The sub-topics of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320 provide the scope, steps and accounting guidance for impairment: 1) determine whether an investment is impaired; 2) evaluate whether impairment is other-than-temporary; then 3) recognition of OTTI. The guidance in ASC 320 retains and emphasizes the objective of OTTI assessment and the related disclosure requirements by aligning the OTTI methodology for certain securitizations. ASC 325 provides a scope exception for investments that were considered of high credit quality (i.e. rated "AA" or higher) at the time of acquisition. The application of the guidance contained in ASC 320 is used for two investments considered of high credit quality and ASC 325 is used for the remaining eleven securities. The quarterly evaluations indicated there was a significant adverse change in cash flows in two of the securities, thereby signifying the likelihood of the Company not being able to recover its principal. As a result, $0.1 million of credit related OTTI was recorded during the six months ended June 30, 2012.

The guidance prescribed in ASC 320 is used for investments that, upon purchase, were rated of high credit quality, "AA" or higher, by a nationally recognized statistical rating organization.  The Company has two PreTSLs (XXIV and XXVII) that were of high credit quality, "AA" rated, upon acquisition.  The PreTSL XXVII evaluation proved a high probability that the Company will be able to collect all amounts due, both principal and interest, by maturity and thus, determined the impairment is temporary.  PreTSL XXIV was evaluated under ASC 320 to determine if the Company expects to recover the remaining amortized cost basis and if OTTI is deemed to have occurred.  An adverse change or short-fall in the expected cash flows compared to the amortized cost would be recorded as credit-related OTTI.  To assess the likelihood of recoverability, the present value of the best estimate of future cash flows is compared to the amortized cost.  In this situation, the discount rate used was the interest rate implicit in the security at the date of acquisition.  The application of the guidance on this security did not result  in an adverse change in cash flows when compared quarterly to the last measurement date of March 31, 2012 and therefore, no credit related OTTI was recorded in the first half  of 2012.  

The remaining eleven PreTSLs were rated "A" by a nationally recognized statistical rating organization at the date of acquisition and as such are considered beneficial interests of securitized financial assets.  For these securities, the Company applies the guidance of ASC 325.  Under this and other relevant guidance, if the fair value is below amortized cost and the present value of the best estimate of future cash flows declines significantly, evidencing a probable material adverse change in cash flows since the last measurement date, credit-related OTTI is deemed to exist and written down to the determined present value through a charge to current earnings.  The discount rate used under ASC 325 is the yield to accrete beneficial interest, which is representative of the resulting interest from the total gross estimated future cash flows less the current amortized cost.  In applying this guidance to the remaining securities, PreTSLs IX and XVIII measured an adverse change in cash flows when compared to the last estimate and credit related OTTI of $18,000 and $118,000, respectively, was recorded in the first half of 2012.     

The following table is the composition of the Company's non-accrual PreTSL securities as of the period indicated:

(dollars in thousands)		June 30, 2012		December 31, 2011
		Book	Fair	Book	Fair
Deal	Class	value	value	value	value
Pre TSL V	Mezzanine	$               -	$           25	$              -	$           25
Pre TSL VII	Mezzanine	-	79	-	79
Pre TSL IX	B-1,B-3	1,547	489	1,605	529
Pre TSL XI	B-3	1,112	303	1,119	357
Pre TSL XV	B-1	-	24	-	20
Pre TSL XVIII	C	167	-	285	5
Pre TSL XIX	C	316	-	316	8
Pre TSL XXIV	B-1	407	15	407	15
		$        3,549	$         935	$      3,732	$      1,038

The securities included in the above table, have experienced impairment of principal, and interest was "paid-in-kind". When these two conditions exist, the security is placed on non-accrual status. Quarterly, each of the other PreTSL issues is evaluated for the presence of these two conditions and if necessary placed on non-accrual status.

The following table provides additional information with respect to the Company's pooled trust preferred securities as of June 30, 2012:

(dollars in thousands)
						Current		Actual		Excess	Effective
						number		deferrals		subordination (2)	subordination (3)
						of		and defaults		as a % of	as a % of
					Moody's /	banks /	Actual	as a % of		current	current
		Book	Fair	Unrealized	Fitch	insurance	deferrals	current	Excess	performing	performing
Deal	Class	value	value	gain (loss)	ratings (1)	companies	and defaults	collateral	subordination	collateral	collateral
Pre TSL IV	Mezzanine	$          412	$          400	$         (12)	Caa2/CCC	6 / -	$     18,000	27.1	$         10,214	19.7	37.6
Pre TSL V	Mezzanine	-	25	25	C / D	3 / -	28,950	100.0	None	N/A	N/A
Pre TSL VII	Mezzanine	-	79	79	Ca / C	17 / -	135,000	64.0	None	N/A	N/A
Pre TSL IX	B-1,B-3	1,547	489	(1,058)	Ca / C	47 / -	134,510	31.8	None	N/A	N/A
Pre TSL XI	B-3	1,112	303	(809)	Ca / C	62 / -	185,280	32.3	None	N/A	N/A
Pre TSL XV	B-1	-	24	24	C / C	63 / 8	195,200	33.8	None	N/A	N/A
Pre TSL XVI	C	-	-	-	C / C	49 / 7	273,478	47.7	None	N/A	N/A
Pre TSL XVII	C	-	-	-	C / C	50 / 6	179,270	37.9	None	N/A	N/A
Pre TSL XVIII	C	167	-	(167)	Ca / C	66 / 13	200,340	30.4	None	N/A	N/A
Pre TSL XIX	C	316	-	(316)	C / C	55 / 14	179,150	27.6	None	N/A	N/A
Pre TSL XXIV	B-1	407	15	(392)	Ca /  CC	77 / 12	346,300	34.3	None	N/A	15.0
Pre TSL XXV	C-1	-	-	-	C / C	58 / 9	271,100	34.2	None	N/A	N/A
Pre TSL XXVII	B	2,446	266	(2,180)	Ca / CC	42 / 7	91,800	28.1	None	N/A	23.8
		$      6,407	$      1,601	$    (4,806)

(1)   All ratings have been updated through June 30, 2012.

(2)   Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds. 

(3)   Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest.  This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral.

 For a further discussion on the fair value determination of the Company's investment in PreTSLs and other financial instruments, see Note 7, "Fair value measurements".

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Investment Securities (Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Tables) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Less Than 12 Months: Fair Value	$ 6,845	$ 10,137
Less Than 12 Months: Unrealized Losses	19	65
12 Months Or More: Fair Value	1,473	2,284
12 Months Or More: Unrealized Losses	4,934	5,411
Total Fair Value	8,318	12,421
Total Unrealized Losses	4,953	5,476
Available-For-Sale Securities In Unrealized Loss Positions, Qualitative Disclosure, Number Of Positions Less Than 12 Months	5	7
Available-For-Sale Securities In Unrealized Loss Positions, Qualitative Disclosure, Number Of Positions More Than 12 Months	8	9
Total Available-For-Sale Securities In Unrealized Loss Positions, Qualitative Disclosure, Number Of Positions	13	16
Agency - GSE [Member]
Schedule of Investments [Line Items]
Less Than 12 Months: Fair Value	3,068	4,011
Less Than 12 Months: Unrealized Losses	9	8
Total Fair Value	3,068	4,011
Total Unrealized Losses	9	8
Obligations of states and political subdivisions [Member]
Schedule of Investments [Line Items]
12 Months Or More: Fair Value		941
12 Months Or More: Unrealized Losses		180
Total Fair Value		941
Total Unrealized Losses		180
Pooled trust preferred securities [Member]
Schedule of Investments [Line Items]
12 Months Or More: Fair Value	1,473	1,343
12 Months Or More: Unrealized Losses	4,934	5,231
Total Fair Value	1,473	1,343
Total Unrealized Losses	4,934	5,231
MBS - GSE [Member]
Schedule of Investments [Line Items]
Less Than 12 Months: Fair Value	3,777	6,126
Less Than 12 Months: Unrealized Losses	10	57
Total Fair Value	3,777	6,126
Total Unrealized Losses	$ 10	$ 57

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Loans (Allowance For Loan Loss Table) (Details) (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
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	$ 8,320	$ 8,224	$ 8,108	$ 7,898	$ 7,898
Charge-offs	785	496	1,284	662	2,058
Recoveries	16	41	27	58	468
Provisions	600	375	1,300	850	1,800
Loans and Leases Receivable, Allowance, Ending Balance	8,151	8,144	8,151	8,144	8,108
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,799		1,799		1,535
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	6,297		6,297		6,151
Loans Receivables, Ending Balance	426,118		426,118		406,294
Financing Receivable, Individually Evaluated for Impairment	18,794		18,794		19,276
Financing Receivable, Collectively Evaluated for Impairment	407,324		407,324		387,018
Commercial and industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	1,206	1,571	1,221	1,368	1,368
Charge-offs	65		65		128
Recoveries	4	3	12	7	407
Provisions	50	(82)	27	117	(426)
Loans and Leases Receivable, Allowance, Ending Balance	1,195	1,492	1,195	1,492	1,221
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	34		34		63
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,161		1,161		1,158
Loans Receivables, Ending Balance	68,733		68,733		68,372
Financing Receivable, Individually Evaluated for Impairment	315		315		501
Financing Receivable, Collectively Evaluated for Impairment	68,418		68,418		67,871
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	4,041	4,281	3,979	4,239	4,239
Charge-offs	464	193	739	193	699
Recoveries		30		30	37
Provisions	566	6	903	48	402
Loans and Leases Receivable, Allowance, Ending Balance	4,143	4,124	4,143	4,124	3,979
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,549		1,549		1,245
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	2,594		2,594		2,734
Loans Receivables, Ending Balance	167,995		167,995		165,473
Financing Receivable, Individually Evaluated for Impairment	14,578		14,578		14,621
Financing Receivable, Collectively Evaluated for Impairment	153,417		153,417		150,852
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	1,453	1,251	1,435	1,248	1,248
Charge-offs	228	303	435	370	654
Recoveries	12	8	15	14	17
Provisions	188	287	410	351	824
Loans and Leases Receivable, Allowance, Ending Balance	1,425	1,243	1,425	1,243	1,435
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	85		85		143
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,340		1,340		1,292
Loans Receivables, Ending Balance	89,378		89,378		88,248
Financing Receivable, Individually Evaluated for Impairment	1,290		1,290		1,747
Financing Receivable, Collectively Evaluated for Impairment	88,088		88,088		86,501
Residential real estate total [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	1,198	870	1,051	863	863
Charge-offs	28		45	99	577
Recoveries				7	7
Provisions	163	(1)	327	98	758
Loans and Leases Receivable, Allowance, Ending Balance	1,333	869	1,333	869	1,051
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	131		131		84
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,202		1,202		967
Loans Receivables, Ending Balance	100,012		100,012		84,201
Financing Receivable, Individually Evaluated for Impairment	2,611		2,611		2,407
Financing Receivable, Collectively Evaluated for Impairment	97,401		97,401		81,794
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Beginning Balance	422	251	422	180	180
Provisions	(367)	165	(367)	236	242
Loans and Leases Receivable, Allowance, Ending Balance	$ 55	$ 416	$ 55	$ 416	$ 422

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Loans (Tables)

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Loan Classifications [Table Text Block]

(dollars in thousands)				June 30, 2012	December 31, 2011
Commercial and industrial				$  68,733	$  68,372
Commercial real estate:
	Non-owner occupied			80,611	79,475
	Owner occupied			75,363	76,611
	Construction			12,021	9,387
Consumer:
	Home equity installment			34,339	36,390
	Home equity line of credit			32,670	32,486
	Auto			16,609	13,539
	Other			5,760	5,833
Residential:
	Real estate			95,646	80,091
	Construction			4,366	4,110
		Total		426,118	406,294
Less:
	Allowance for loan losses			(8,151)	(8,108)
			Loans, net	$  417,967	$  398,186

Non-Accrual Loans [Table Text Block]

(dollars in thousands)			June 30, 2012	December 31, 2011
Commercial and industrial			$  273	$ 458
Commercial real estate:
	Non-owner occupied		2,357	2,406
	Owner occupied		5,817	6,288
	Construction		1,138	656
Consumer:
	Home equity installment		835	1,017
	Home equity line of credit		435	730
	Auto		-	-
	Other		20	-
Residential:
	Real estate		2,541	2,329
	Construction		70	78
		Total	$  13,486	$  13,962

Troubled Debt Restructuring Loans [Table Text Block]

Loans modified as a TDR within the previous twelve months that subsequently defaulted during the:
(dollars in thousands)	Three months ended June 30, 2012			Six months ended June 30, 2012
		Number of	Recorded		Number of	Recorded
		contracts	investment		contracts	investment
Commercial real estate - owner occupied		-	$                         -		1	$                     1,118

Past Due Loans [Table Text Block]

An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands):

									Recorded
					Past due			Total	investment  past
			30 - 59 Days	60 - 89 Days	90 days	Total		loans	due ≥ 90 days
June 30, 2012			past due	past due	or more *	past due	Current	receivables	and accruing
Commercial and industrial			$                93	$             295	$             278	$             666	$        68,067	$        68,733	$                  5
Commercial real estate:
	Non-owner occupied		832	-	2,357	3,189	77,422	80,611	-
	Owner occupied		155	567	5,883	6,605	68,758	75,363	66
	Construction		-	-	1,138	1,138	10,883	12,021	-
Consumer:
	Home equity installment		285	42	835	1,162	33,177	34,339	-
	Home equity line of credit		33	-	435	468	32,202	32,670	-
	Auto		413	167	20	600	16,009	16,609	20
	Other		8	78	22	108	5,652	5,760	2
Residential:
	Real estate		794	-	2,655	3,449	92,197	95,646	114
	Construction		-	-	70	70	4,296	4,366	-
		Total	$         2,613	$          1,149	$      13,693	$      17,455	$     408,663	$     426,118	$             207

*Includes $13.5 millionof non-accrual loans.

.

									Recorded
					Past due			Total	investment  past
			30 - 59 Days	60 - 89 Days	90 days	Total		loans	due ≥ 90 days
December 31, 2011			past due	past due	or more *	past due	Current	receivables	and accruing
Commercial and industrial			$                 61	$                 20	$               458	$               539	$          67,833	$       68,372	$                   -
Commercial real estate:
	Non-owner occupied		1,802	386	2,406	4,594	74,881	79,475	-
	Owner occupied		134	71	6,288	6,493	70,118	76,611	-
	Construction		-	-	656	656	8,731	9,387	-
Consumer:
	Home equity installment		450	161	1,017	1,628	34,762	36,390	-
	Home equity line of credit		11	-	730	741	31,745	32,486	-
	Auto		437	181	-	618	12,921	13,539	-
	Other		19	11	-	30	5,803	5,833	-
Residential:
	Real estate		297	317	2,594	3,208	76,883	80,091	265
	Construction		-	-	78	78	4,032	4,110	-
		Total	$             3,211	$            1,147	$          14,227	$          18,585	$        387,709	$        406,294	$              265

*Includes $14.0 million of non-accrual loans.

Impaired Loans [Table Text Block]

				Recorded	Recorded					Cash basis
			Unpaid	investment	investment	Total		Average	Interest	interest
			principal	with	with no	recorded	Related	recorded	income	income
(dollars in thousands)			balance	allowance	allowance	investment	allowance	investment	recognized	recognized
June 30, 2012
Commercial & industrial			$             322	$               95	$            220	$            315	$              34	$             431	$                2	$                 -
Commercial real estate:
	Non-owner occupied		5,428	1,037	4,230	5,267	314	4,318	94	-
	Owner occupied		8,830	6,807	1,366	8,173	1,048	6,777	75	-
	Construction		1,138	662	476	1,138	187	735	-	-
Consumer:
	Home equity installment		987	285	550	835	44	868	-	-
	Home equity line of credit		479	162	273	435	41	473	-	-
	Auto		-	-	-	-	-	-	-	-
	Other		20	-	20	20	-	17	-	-
Residential:
	Real Estate		2,865	1,282	1,259	2,541	108	2,371	10	-
	Construction		94	70	-	70	23	81	-	-
		Total	$       20,163	$       10,400	$        8,394	$      18,794	$         1,799	$       16,071	$            181	$                 -

				Recorded	Recorded					Cash basis
			Unpaid	investment	investment	Total		Average	Interest	interest
			principal	with	with no	recorded	Related	recorded	income	income
(dollars in thousands)			balance	allowance	allowance	investment	allowance	investment	recognized	recognized
December 31, 2011
Commercial & industrial			$             549	$            322	$            179	$            501	$              63	$             355	$                2	$                 -
Commercial real estate:
	Non-owner occupied		5,434	3,144	2,176	5,320	301	3,026	53	-
	Owner occupied		8,538	5,730	2,915	8,645	792	4,953	108	14
	Construction		656	656	-	656	152	375	-	-
Consumer:
	Home equity installment		1,050	395	622	1,017	88	751	6	3
	Home equity line of credit		730	229	501	730	55	488	2	1
	Auto		-	-	-	-	-	3	-	-
	Other		-	-	-	-	-	12	-	-
Residential:
	Real Estate		2,619	1,083	1,246	2,329	84	2,867	155	59
	Construction		94	78	-	78	-	91	-	-
		Total	$        19,670	$        11,637	$         7,639	$         19,276	$         1,535	$        12,921	$            326	$              77

Credit Quality Indicator Loan Categories [Table Text Block]

Commercial credit exposure
Credit risk profile by creditworthiness category
				Commercial real estate -		Commercial real estate -		Commercial real estate -
		Commercial and industrial		non-owner occupied		owner occupied		construction
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011
Pass		$           64,954	$           64,064	$         69,175	$           65,819	$         65,562	$           66,298	$           9,470	$              6,911
Special mention		2,209	2,953	3,547	5,681	1,466	1,627	1,388	1,246
Substandard		1,570	1,355	7,889	7,975	8,335	8,686	1,163	1,230
Doubtful		-	-	-	-	-	-	-	-
	Total	$           68,733	$           68,372	$         80,611	$           79,475	$         75,363	$           76,611	$         12,021	$              9,387

Consumer credit exposure
Credit risk profile based on payment activity
		Home equity installment		Home equity line of credit		Auto		Other
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011	6/30/2012	12/31/2011
Performing		$          33,504	$           35,373	$         32,235	$           31,756	$         16,589	$           13,539	$           5,738	$             5,833
Non-performing		835	1,017	435	730	20	-	22	-
	Total	$          34,339	$           36,390	$         32,670	$           32,486	$         16,609	$           13,539	$           5,760	$             5,833

Mortgage lending credit exposure
Credit risk profile based on payment activity
		Residential real estate		Residential construction
(dollars in thousands)		6/30/2012	12/31/2011	6/30/2012	12/31/2011
Performing		$           92,991	$        77,497	$        4,296	$          4,032
Non-performing		2,655	2,594	70	78
	Total	$           95,646	$        80,091	$        4,366	$              4,110

Allowance for loan losses

Management continually evaluates the credit quality of the Company's loan portfolio and performs a formal review of the adequacy of the allowance for loan losses (the allowance) on a quarterly basis. The allowance reflects management's best estimate of the amount of credit losses in the loan portfolio. Management's judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received.

Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows:

§identification of specific impaired loans by loan category;

§specific loans that are not impaired, but have an identified potential for loss;

§calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence;

§determination of homogenous pools by loan category and eliminating the impaired loans;

§application of historical loss percentages (two-year average) to pools to determine the allowance allocation;

§application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. Qualitative factor adjustments include:

olevels of and trends in delinquencies and non-accrual loans;

olevels of and trends in charge-offs and recoveries;

otrends in volume and terms of loans;

ochanges in risk selection and underwriting standards;

ochanges in lending policies, procedures and practices;

oexperience, ability and depth of lending management;

onational and local economic trends and conditions; and

ochanges in credit concentrations.

Allocation of the allowance for different categories of loans is based on the methodology as explained above.  A key element of the methodology to determine the allowance is the Company's credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans.  Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company's assessment of conditions that affect the borrower's ability to meet its contractual obligations under the loan agreement.  That process includes reviewing borrowers' current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower.  Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be.  The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted.  The credit risk grades for the commercial and industrial and commercial real estate loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades.  The loss factors applied are based upon the Company's historical experience as well as what we believe to be best practices and common industry standards.    Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs.  The changes in allocations in the commercial and industrial and commercial real estate loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio.

Each quarter, management performs an assessment of the allowance for loan losses. The Company's Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount based on current accounting guidance. The Special Assets Committee's focus is on ensuring the pertinent facts are considered and the reserve amounts pursuant to the accounting principles are reasonable. The assessment process includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company's Credit Administration function have assigned a criticized or classified risk rating. In 2012, the Company did not change its policy or methodology in calculating the allowance for loan losses from the policy or methodology used in 2011.

The Company's policy is to charge off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged off at the point in time when the Company deems the balance to be uncollectible.

Allowance For Loan Losses [Table Text Block]

Information related to the change in the allowance for loan losses and the Company's recorded investment in loans by portfolio segment as of the period indicated is as follows:

As of and for the six months ended June 30, 2012
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$              1,221	$            3,979	$           1,435	$          1,051	$             422	$               8,108
		Charge-offs	65	739	435	45	-	1,284
		Recoveries	12	-	15	-	-	27
		Provision	27	903	410	327	(367)	1,300
	Ending balance		$              1,195	$            4,143	$           1,425	$          1,333	$                55	$                8,151
	Ending balance: individually
		evaluated for impairment	$                   34	$            1,549	$                85	$              131		$                1,799
	Ending balance: collectively
		evaluated for impairment	$              1,161	$            2,594	$           1,340	$          1,202		$                6,297
Loans Receivables:
	Ending balance		$           68,733	$       167,995	$        89,378	$      100,012		$           426,118
	Ending balance: individually
		evaluated for impairment	$                 315	$         14,578	$           1,290	$          2,611		$              18,794
	Ending balance: collectively
		evaluated for impairment	$           68,418	$       153,417	$        88,088	$        97,401		$            407,324

As of and for the three months ended June 30, 2012
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$              1,206	$           4,041	$           1,453	$          1,198	$             422	$               8,320
		Charge-offs	65	464	228	28	-	785
		Recoveries	4	-	12	-	-	16
		Provision	50	566	188	163	(367)	600
	Ending balance		$              1,195	$           4,143	$           1,425	$          1,333	$                55	$               8,151

As of and for the year ended December 31, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,368	$              4,239	$            1,248	$               863	$               180	$                 7,898
		Charge-offs	128	699	654	577	-	2,058
		Recoveries	407	37	17	7	-	468
		Provision	(426)	402	824	758	242	1,800
	Ending balance		$               1,221	$              3,979	$            1,435	$            1,051	$               422	$                 8,108
	Ending balance: individually
		evaluated for impairment	$                    63	$              1,245	$               143	$                 84		$                  1,535
	Ending balance: collectively
		evaluated for impairment	$               1,158	$             2,734	$            1,292	$               967		$                  6,151
Loans Receivables:
	Ending balance		$             68,372	$         165,473	$          88,248	$          84,201		$              406,294
	Ending balance: individually
		evaluated for impairment	$                  501	$            14,621	$            1,747	$            2,407		$                19,276
	Ending balance: collectively
		evaluated for impairment	$             67,871	$          150,852	$          86,501	$          81,794		$              387,018

Information related to the change in the allowance for loan losses as of and for the three and six months ended June 30, 2011 is a follows:

As of and for the six months ended June 30, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,368	$            4,239	$            1,248	$               863	$               180	$                 7,898
		Charge-offs	-	193	370	99	-	662
		Recoveries	7	30	14	7	-	58
		Provision	117	48	351	98	236	850
	Ending balance		$               1,492	$            4,124	$            1,243	$               869	$               416	$                 8,144

As of and for the three months ended June 30, 2011
			Commercial &	Commercial		Residential
(dollars in thousands)			industrial	real estate	Consumer	real estate	Unallocated	Total
Allowance for Loan Losses:
	Beginning balance		$               1,571	$              4,281	$            1,251	$               870	$               251	$                 8,224
		Charge-offs	-	193	303	-	-	496
		Recoveries	3	30	8	-	-	41
		Provision	(82)	6	287	(1)	165	375
	Ending balance		$               1,492	$              4,124	$            1,243	$               869	$                416	$                  8,144