Note 6 - Federal Reserve Bank and Federal Home Loan Bank Stock	6 Months Ended
Jun. 30, 2012
Fair Value Measurements, Valuation Techniques	NOTE 6 -- FEDERAL RESERVE BANK AND FEDERAL HOME LOAN BANK STOCK The subsidiary bank held $2,373,000 in Federal Home Loan Bank stock at June 30, 2012 and December 31, 2011. The subsidiary bank also held $906,000 and $2,127,000 in Federal Reserve Bank stock at June 30, 2012 and December 31, 2011, respectively. The decrease in Federal Reserve Bank stock outstanding was the result of stock redemptions during 2012. Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment is based on a predetermined formula. The Federal Home Loan Bank of Chicago (FHLB) was operating under a Consent Order (the “FHLB Consent Order”) from its regulator, the Federal Housing Finance Board. However, on April 18, 2012, they announced that the Federal Housing Financing Agency (the “FHFA”) had agreed to terminate the FHLB Consent Order effective immediately. The FHLB’s new capital structure and repurchase plan were approved by the FHFA. This new capital structure established two subclasses of stock effective January 1, 2012 and the repurchase plan allows members to request that the FHLB repurchase all or a portion of their excess FHLB stock. The FHLB continues to provide liquidity and funding through advances. With regard to dividends, the FHLB will continue to assess its dividend capacity each quarter and make appropriate request for approval. The FHLB did not pay a dividend in calendar year 2010; however, in calendar year 2011 the FHLB declared and paid four quarterly dividends at an annualized rate of 10 basis points per share. Management performed an analysis as of June 30, 2012 and December 31, 2011 and deemed the cost method of investment in FHLB stock was ultimately recovered. For the first quarter of 2012, the FHLB declared a cash dividend at an annualized rate of 0.25% per share. For the second quarter of 2012, the FHLB declared a cash dividend at an annualized rate of .30% per share.

The subsidiary bank held $2,373,000 in Federal Home Loan Bank stock at June 30, 2012 and December 31, 2011. The subsidiary bank also held $906,000 and $2,127,000 in Federal Reserve Bank stock at June 30, 2012 and December 31, 2011, respectively. The decrease in Federal Reserve Bank stock outstanding was the result of stock redemptions during 2012. Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment is based on a predetermined formula. The Federal Home Loan Bank of Chicago (FHLB) was operating under a Consent Order (the “FHLB Consent Order”) from its regulator, the Federal Housing Finance Board. However, on April 18, 2012, they announced that the Federal Housing Financing Agency (the “FHFA”) had agreed to terminate the FHLB Consent Order effective immediately. The FHLB’s new capital structure and repurchase plan were approved by the FHFA. This new capital structure established two subclasses of stock effective January 1, 2012 and the repurchase plan allows members to request that the FHLB repurchase all or a portion of their excess FHLB stock. The FHLB continues to provide liquidity and funding through advances. With regard to dividends, the FHLB will continue to assess its dividend capacity each quarter and make appropriate request for approval. The FHLB did not pay a dividend in calendar year 2010; however, in calendar year 2011 the FHLB declared and paid four quarterly dividends at an annualized rate of 10 basis points per share. Management performed an analysis as of June 30, 2012 and December 31, 2011 and deemed the cost method of investment in FHLB stock was ultimately recovered. For the first quarter of 2012, the FHLB declared a cash dividend at an annualized rate of 0.25% per share. For the second quarter of 2012, the FHLB declared a cash dividend at an annualized rate of .30% per share.