Condensed Consolidated Statements of Income (Unaudited) (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
INTEREST INCOME:
Loans, including fees	$ 6,804	$ 7,088	$ 13,601	$ 15,111
Debt Securities:
U.S. Treasury securities	92	107	173	207
Securities of U.S. Government Agencies	1,055	1,046	2,080	1,980
Municipalities	518	536	1,028	1,068
Dividends	46	48	95	97
Federal funds sold	4	3	11	9
Other	6	16	13	27
Total Interest Income	8,525	8,844	17,001	18,499
INTEREST EXPENSE:
Deposits	1,470	1,772	2,909	3,655
Federal Funds purchased and securities sold under agreements to repurchase	60	76	121	151
Borrowed funds	123	261	247	524
Total Interest Expense	1,653	2,109	3,277	4,330
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	6,872	6,735	13,724	14,169
PROVISION FOR LOAN LOSSES (Note 4)	78	657	206	1,429
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	6,794	6,078	13,518	12,740
NONINTEREST INCOME
Customer service fees	1,245	914	2,569	1,705
Other service charges and fees	860	837	1,618	1,613
Net gain (loss) on sale of other assets owned	(210)	(166)	(277)	(814)
Net gain on sale of loans	622	63	783	138
Net gain on sale of securities		33	169	372
Total Noninterest Income	2,517	1,681	4,862	3,014
NONINTEREST EXPENSE
Salaries and wages	2,193	2,155	4,479	4,408
Pension and other employee benefits	744	546	1,572	1,361
Occupancy expense (net)	386	457	791	770
Furniture and Equipment	349	352	701	744
Data processing	286	230	551	460
Franchise Taxes	236	224	473	442
FDIC Assessment	89	120	219	440
Mortgage servicing rights amortization	178	90	372	181
Other general and administrative	1,292	1,392	2,450	2,328
Total Noninterest Expense	5,753	5,566	11,608	11,134
INCOME BEFORE FEDERAL INCOME TAX	3,558	2,193	6,772	4,620
FEDERAL INCOME TAXES	1,020	626	1,950	1,072
NET INCOME	2,538	1,567	4,822	3,548
OTHER COMPREHENSIVE INCOME (NET OF TAX):
Unrealized gains on securities	1,159	2,029	6,764	2,614
COMPREHENSIVE INCOME	$ 3,697	$ 3,596	$ 11,586	$ 6,162
NET INCOME PER SHARE	$ 0.54	$ 0.33	$ 1.02	$ 0.76
Weighted Average Shares Outstanding	4,695,151	4,686,008	4,704,674	4,689,285
DIVIDENDS DECLARED	$ 0.19	$ 0.19	$ 0.38	$ 0.38

The periodic amortization (in proportion to and over the period of estimated net servicing income or loss) of capitalized servicing rights, which contractually entitle the servicer to receive fees and ancillary revenues for performing billing, collection, disbursement and recordkeeping services in connection with a mortgage portfolio. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 860

-SubTopic 50

-Section 50

-Paragraph 4

-Subparagraph (a)(4)

-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122739-111746

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 140

-Paragraph 17

-Subparagraph g(1)(d)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.