REGULATORY MATTERS

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

18. REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements.  Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and to average assets (as defined).

As of December 31, 2011, the most recent notifications from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage capital ratios as set forth in the table (in thousands). There are no conditions or events since those notifications that management believes has changed the Bank's category.

The Company's and the Bank's actual capital amounts and ratios are presented in the table below (in thousands):

	Actual					Required for  Minimum Capital  Adequacy Purposes					To be Well Capitalized Under Prompt Corrective  Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011:
Total capital to risk weighted assets:
Company	$	144,439		16.97	%	$	68,085		8.00	%		N/A		N/A
Bank	$	116,988		13.75	%	$	68,071		8.00	%	$	85,089		10.00	%
Tier I capital to risk weighted assets:
Company	$	136,979		16.10	%	$	34,043		4.00	%		N/A		N/A
Bank	$	109,528		12.87	%	$	34,036		4.00	%	$	51,054		6.00	%
Tier I capital to average assets:
Company	$	136,979		11.14	%	$	49,193		4.00	%		N/A		N/A
Bank	$	109,528		8.91	%	$	49,149		4.00	%	$	73,723		6.00	%

	Actual					Required for Minimum Capital  Adequacy Purposes					To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2010:
Total capital to risk weighted assets:
Company	$	146,272		22.36	%	$	52,332		8.00	%		N/A		N/A
Bank	$	114,328		17.49	%	$	52,296		8.00	%	$	65,370		10.00	%
Tier I capital to risk weighted assets:
Company	$	138,085		21.11	%	$	26,166		4.00	%		N/A		N/A
Bank	$	106,147		16.24	%	$	26,148		4.00	%	$	39,222		6.00	%
Tier I capital to average assets:
Company	$	138,085		14.00	%	$	39,440		4.00	%		N/A		N/A
Bank	$	106,147		10.78	%	$	39,404		4.00	%	$	59,106		6.00	%