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Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
OPERATING ACTIVITIES    
Net income $ 1,722 $ 1,360
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 1,565 1,129
Investment securities gains ( losses), net 22 (27)
Depreciation and amortization 425 381
Amortization of premium and discount on investment securities 151 (104)
Amortization of deferred loan fees, net (80) (18)
Earnings on bank-owned life insurance (139) (132)
Deferred income taxes (329) (403)
Stock based compensation expense 59  
Losses on other real estate owned 303 214
Increase (decrease) in accrued interest receivable 118 (27)
Increase (decrease) in accrued interest payable (35) 27
Decrease in prepaid federal deposit insurance 423 363
Other, net (715) (1,046)
Net cash provided by operating activities 3,490 1,718
Investment securities available for sale:    
Proceeds from repayments and maturities 21,260 15,067
Proceeds from sale of securities 10,072 5,140
Purchases (19,989) (59,185)
Increase in loans, net (14,080) (11,855)
Proceeds from the sale of other real estate owned 414 540
Purchase of premises and equipment (66) (269)
Net cash used for investing activities (2,389) (50,562)
FINANCING ACTIVITIES    
Net increase in deposits 4,494 45,990
Increase (decrease) in short-term borrowings, net (845) 401
Repayment of other borrowings (627) (825)
Common stock issuance 716  
Proceeds from dividend reinvestment & purchase plan 281 282
Cash dividends (850) (816)
Net cash provided by financing activities 3,169 45,032
Increase (decrease) in cash and cash equivalents 4,270 (3,812)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 30,635 41,153
CASH AND CASH EQUIVALENTS AT END OF PERIOD 34,904 37,341
Cash paid during the year for:    
Interest on deposits and borrowings 4,681 5,588
Income taxes 515 750
Non-cash investing transactions:    
Transfers from loans to other real estate owned $ 560 $ 476