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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Feb. 25, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	FARMERS & MERCHANTS BANCORP INC
Entity Central Index Key	0000792966
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 99,534,532.50
Entity Common Stock, Shares Outstanding		4,683,958

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Assets
Cash and due from banks (Note 1)	$ 37,561	$ 31,609
Federal Funds Sold	6,531	11,534
Total cash and cash equivalents	44,092	43,143
Securities - available for sale (Note 3)	355,905	327,519
Other Securities, at cost (Note 3)	4,365	4,365
Loans, net (Note 4)	496,178	501,124
Premises and equipment (Note 5)	17,599	16,984
Goodwill	4,074	4,074
Mortgage Servicing Rights (Note 6)	2,063	2,071
Other Real Estate Owned	2,310	3,572
Other assets (Note 2)	20,074	20,141
Total Assets	946,660	922,993
Deposits
Noninterest-bearing	103,966	84,567
Interest-bearing
NOW accounts	196,971	193,137
Savings	192,808	170,052
Time (Note 7)	269,507	291,626
Total deposits	763,252	739,382
Securities sold under agreement to repurchase (Note 8)	51,312	52,440
FHLB Advances (Note 9)	11,600	16,662
Dividend payable	931	890
Accrued expenses and other liabilities (Note 10)	9,326	8,528
Total liabilities	836,421	817,902
Stockholders' Equity (Note 14 and 15)
Common stock - No par value - 6,500,000 shares authorized; 5,200,000 shares issued & outstanding	12,677	12,677
Treasury Stock - 515,942 shares 2012, 483,663 shares 2011	(10,588)	(9,898)
Unearned Stock Awards - 30,670 shares 2012, 29,715 shares 2011	(584)	(564)
Retained earnings	102,641	96,495
Accumulated other comprehensive income	6,093	6,381
Total stockholders' equity	110,239	105,091
Total Liabilities and Stockholders' Equity	$ 946,660	$ 922,993

Consolidated Balance Sheet (Parenthetical) - $ / shares	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheet [Abstract]
Common stock, no par value
Common stock, shares authorized	6,500,000	6,500,000
Common stock, shares issued	5,200,000	5,200,000
Common stock, shares outstanding	5,200,000	5,200,000
Treasury stock, shares	515,942	483,663
Unearned stock awards, shares	30,670	29,715

Consolidated Statement of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Interest Income
Loans, including fees	$ 26,489	$ 29,840	$ 32,860
Debt securities:
U.S. Treasury and government agency	4,427	4,457	4,583
Municipalities	2,112	2,107	2,167
Dividends	199	185	188
Federal funds sold	20	19	26
Other	26	52	69
Total interest income	33,273	36,660	39,893
Interest Expense
Deposits	5,574	6,980	9,126
Federal funds purchased and securities sold under agreements to repurchase	242	293	278
Borrowed funds	434	883	1,459
Total interest expense	6,250	8,156	10,863
Net Interest Income - Before provision for loan losses	27,023	28,504	29,030
Provision for Loan Losses (Note 4)	738	1,715	5,325
Net Interest Income After Provision For Loan Losses	26,285	26,789	23,705
Noninterest Income
Customer service fees	5,204	3,313	2,487
Other service charges and fees	3,499	3,385	3,464
Net gain (loss) on sale of other assets owned	(634)	(1,169)	(109)
Net gain on sale of loans	2,041	807	1,395
Net gain on sale of securities (Note 3)	852	504	956
Total noninterest income	10,962	6,840	8,193
Noninterest Expenses
Salaries and Wages	9,039	9,212	8,773
Employee benefits (Note 11)	3,288	2,835	2,909
Net occupancy expense	1,419	1,501	1,456
Furniture and equipment	1,400	1,379	1,504
Data processing	1,119	978	953
Franchise taxes	946	892	863
FDIC Assessment	467	762	1,053
Mortgage servicing rights amortization (Note 6)	768	498	683
Other general and administrative	5,109	4,165	4,341
Total other operating expenses	23,555	22,222	22,535
Income Before Income Taxes	13,692	11,407	9,363
Income Taxes (Note 10)	3,904	2,893	2,382
Net Income	9,788	8,514	6,981
Other Comprehensive Income (Net of Tax):
Unrealized gains on securities	(288)	5,843	(1,976)
Comprehensive Income	$ 9,500	$ 14,357	$ 5,005
Earnings Per Share - Basic and Diluted	$ 2.08	$ 1.82	$ 1.48
Weighted Average Shares Outstanding	4,695,876	4,689,021	4,721,235

Consolidated Statement of Changes to Shareholders Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Unearned Stock Awards	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance, shares at Dec. 31, 2009		4,762,449
Beginning balance at Dec. 31, 2009	$ 93,584	$ 12,677	$ (9,082)	$ (573)	$ 88,048	$ 2,514
Comprehensive income (Note 1):
Net income	6,981				6,981
Change in net unrealized gain on securities available for sale, net of reclassification adjustment and tax effects	(1,976)					(1,976)
Comprehensive Income	$ 5,005
Purchase of Treasury Stock, shares	(48,130)
Purchase of Treasury Stock	$ (894)		(894)
Shares issued for vested stock awards	$ 151			151
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Shares	8,575
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Amount	$ 1		177	(158)	(18)
Cash dividends declared - $0.73, $0.76 and $0.78 per share for the year 2010, 2011 and 2012 respectively	$ (3,444)				(3,444)
Ending balance, shares at Dec. 31, 2010	4,722,894
Ending balance at Dec. 31, 2010	$ 94,403	$ 12,677	(9,799)	(580)	91,567	538
Comprehensive income (Note 1):
Net income	8,514				8,514
Change in net unrealized gain on securities available for sale, net of reclassification adjustment and tax effects	5,843					5,843
Comprehensive Income	14,357
Purchase of Treasury Stock, shares		(16,779)
Purchase of Treasury Stock	(310)		(310)
Shares issued for vested stock awards	202			202
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Shares		10,222
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Amount	2		211	(186)	(23)
Cash dividends declared - $0.73, $0.76 and $0.78 per share for the year 2010, 2011 and 2012 respectively	(3,563)				(3,563)
Ending balance, shares at Dec. 31, 2011		4,716,337
Ending balance at Dec. 31, 2011	105,091	$ 12,677	(9,898)	(564)	96,495	6,381
Comprehensive income (Note 1):
Net income	9,788				9,788
Change in net unrealized gain on securities available for sale, net of reclassification adjustment and tax effects	(288)					(288)
Comprehensive Income	9,500
Purchase of Treasury Stock, shares		(42,144)
Purchase of Treasury Stock	(894)		(894)
Shares issued for vested stock awards	178			178
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Shares		9,865
Grant of Restricted Stock Awards - 10,150, 11,000 and 11,000 shares (Net of Forfeiture - 1575, 778 and 1,135 for the period ended 2010, 2011 and 2012 respectively), Amount			204	(198)	(6)
Cash dividends declared - $0.73, $0.76 and $0.78 per share for the year 2010, 2011 and 2012 respectively	(3,636)				(3,636)
Ending balance, shares at Dec. 31, 2012		4,684,058
Ending balance at Dec. 31, 2012	$ 110,239	$ 12,677	$ (10,588)	$ (584)	$ 102,641	$ 6,093

Consolidated Statement of Changes to Shareholders Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restricted Stock Awards Shares	11,000	11,000	10,150
Restricted Stock Awards, Net of Forfeiture	1,135	778	1,575
Cash dividends declared, per share	$ 0.78	$ 0.76	$ 0.73
Common Stock
Restricted Stock Awards Shares	11,000	11,000	10,150
Restricted Stock Awards, Net of Forfeiture	1,135	778	1,575
Treasury Stock
Restricted Stock Awards Shares	11,000	11,000	10,150
Restricted Stock Awards, Net of Forfeiture	1,135	778	1,575
Unearned Stock Awards
Restricted Stock Awards Shares	11,000	11,000	10,150
Restricted Stock Awards, Net of Forfeiture	1,135	778	1,575
Retained Earnings
Restricted Stock Awards Shares	11,000	11,000	10,150
Restricted Stock Awards, Net of Forfeiture	1,135	778	1,575
Cash dividends declared, per share	$ 0.78	$ 0.76	$ 0.73

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash Flows from Operating Activities
Net income	$ 9,788	$ 8,514	$ 6,981
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	1,154	1,135	1,147
Amortization of servicing rights	768	498	683
Amortization of Core Deposit Intangible	312	312	235
Provision for loan loss	738	1,715	5,325
Gain on sale of loans held for sale	(2,041)	(807)	(1,395)
Originations of loans held for sale	(96,472)	(52,853)	(83,705)
Proceeds from sale of loans held for sale	95,435	53,631	82,315
Accretion and amortization of securities	3,075	2,902	1,595
Deferred income tax expense (benefit)	(126)	(165)	210
Loss on sale of other assets	634	1,169	109
Gain on sales of securities	(852)	(504)	(956)
Change in other assets and other liabilities, net	1,801	1,612	(1,109)
Net cash provided by operating activities	14,214	17,159	11,435
Activity in securities:
Sales	60,513	30,376	55,700
Maturities, prepayments and calls	42,851	53,661	104,602
Purchases	(134,435)	(117,744)	(244,812)
Loan and lease originations and principal collections, net	5,245	18,266	38,094
Proceeds from sales of assets	1,146	1,970	716
Additions to premises and equipment	(1,774)	(947)	(2,294)
Net cash paid for acquisition			(1,141)
Net cash used in investing activities	(26,454)	(14,418)	(49,135)
Cash Flows from Financing Activities
Net increase in deposits	23,870	14,869	48,069
Net change in federal funds purchased and securities sold under agreements to repurchase	(1,128)	1,199	7,984
Proceeds from issuance of long-term debt			9,000
Repayment of long-term debt	(5,062)	(13,212)	(13,326)
Purchase of Treasury Stock	(894)	(310)	(894)
Cash dividends paid on common stock	(3,597)	(3,567)	(3,402)
Net cash provided by (used) financing activities	13,189	(1,021)	47,431
Net Increase (Decrease) in Cash and Cash Equivalents	949	1,720	9,731
Cash and Cash Equivalents - Beginning of Year	45,099	43,379	33,648
Cash and Cash Equivalents - End of Year	44,092	45,099	43,379
Cash paid during the year for:
Interest	6,304	8,285	11,244
Income taxes	4,085	1,850	1,875
Noncash investing activities:
Transfer of loans to other real estate owned	$ 562	$ 2,236	$ 3,867

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1—Summary of Significant Accounting Policies

Nature of Operations

The Farmers & Merchants Bancorp, Inc. (the Company) through its bank subsidiary, The Farmers & Merchants State Bank (the Bank) provides a variety of financial services to individuals and small businesses through its offices in Northwest Ohio and Northeast Indiana.

Consolidation Policy

The consolidated financial statements include the accounts of Farmers & Merchants Bancorp, Inc. and its wholly-owned subsidiary, The Farmers & Merchants State Bank (the Bank), a commercial banking institution. All significant inter-company balances and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reporting period. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and the valuation of mortgage servicing rights, goodwill, available for sale investment securities, other real estate owned and impaired loans. Actual results could differ from those estimates.

The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral.

The Bank’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Bank has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions in the agricultural industry.

While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. This includes cash on hand, amounts due from banks, and federal funds sold. Generally, federal funds are purchased and sold for one day periods.

Restrictions on Cash and Amounts Due from Banks

The Bank is required to maintain average balances on hand with the Federal Reserve Bank. The aggregate reserve was $4.9 million for December 31, 2012 and it was $4.2 million for December 31, 2011.

The Company and its subsidiary maintain cash balances with high quality credit institutions. At times such balances may be in excess of the federally insured limits.

Securities

Debt securities are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses reported in other comprehensive income. Realized gains and losses on securities available for sale are included in other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains and losses on sales of securities are determined on the specific-identification method.

Declines in the fair value of securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The related write-downs are included in earnings as realized losses.

Other Securities

Other Securities consists of Federal Home Loan Bank of Cincinnati and Indianapolis stock and Farmer Mac stock. These stocks are carried at cost and are held to enable the Bank to conduct business with the entities. The Federal Home Loan Banks sell and purchase their stock at par; therefore cost approximates market value. The Federal Home Loan Bank of Cincinnati stock is held as collateral security for all indebtedness of the Bank to the Federal Home Loan Bank.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the amount of unpaid principal, reduced by unearned discounts and deferred loan fees and costs, as well as, by the allowance for loan losses. Interest income is accrued on a daily basis based on the principal outstanding.

Generally, a loan is classified as nonaccrual and the accrual of interest income is generally discontinued when a loan becomes ninety days past due as to principal or interest and these loans are placed on a “cash basis” for purposes of income recognition. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral is sufficient to cover the principal and accrued interest, and the loan is in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest receivable is charged against income.

Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as a net adjustment to the related loan’s yield. The Bank is generally amortizing these costs over the contractual life of such loans.

Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses charged to income. Loans deemed to be uncollectable and changes in the allowance relating to loans are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experiences, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are subject to revision as more information becomes available.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

At 120 days delinquent, secured consumer loans are charged down to the value of the collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency.

For the majority of the Bank’s impaired loans, the Bank will apply the observable market price methodology. However, the Bank may also utilize a measurement incorporating the present value of expected future cash flows discounted at the loan’s effective rate of interest. To determine observable market price, collateral asset values securing an impaired loan are periodically evaluated. Maximum time of re-evaluation is every 12 months for chattels and titled vehicles and every two years for real estate. In this process, third party evaluations are obtained and heavily relied upon. Until such time that updated appraisals are received, the Bank may discount the collateral value used.

Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment disclosures.

For more information regarding the actual composition and classification of loans involved in the establishment of the allowance for loan loss, please see Note 4 provided here with the notes to consolidated financial statements.

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized in a valuation allowance by charges to income.

Servicing Assets

Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into noninterest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in operating income as loan payments are received. Costs of servicing loans are charged to expense as incurred.

Goodwill and other Intangible Assets

Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually. If possible impairment is likely, the Bank will utilize the assistance of an independent third party for impairment and any such impairment is recognized in the period identified. The Bank considered the following qualitative factors to determine if impairment was likely: 1) The Bank continued to perform above peer and remains profitable with capital growth, 2) The Bank had improved asset quality and does not see any change in the trend, 3) The Bank had strong liquidity and capital positions, 4) In quantitative testing done by an independent source in 2011, the excess fair value of capital was almost $32 million or 36.19% over the carrying value and was almost 8 times the value of the goodwill being carried, and 5) The Bank was unaware of any likely circumstances that would indicate the fair value of the entity would be greatly decreased in the near future. Therefore, no impairment has been recognized from the goodwill established from the Bank’s acquisition which occurred on December 31, 2007.

Other intangible assets consist of core deposit intangible assets arising from business acquisitions. They are initially measured at fair value and then are amortized on a straight line method over their estimated useful lives.

Off Balance Sheet Instruments

In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded.

Foreclosed Real Estate

Foreclosed real estate held for sale is carried at the lower of fair value minus estimated costs to sell, or cost. Costs of holding foreclosed real estate are charged to expense in the current period, except for significant property improvements, which are capitalized. Valuations are periodically performed by management and an allowance is established by a charge to non-interest expense if the carrying value exceeds the fair value minus estimated costs to sell. Foreclosed real estate is classified as other real estate owned. The net income from operations of foreclosed real estate held for sale is reported in non-interest income. At December 31, the Bank’s holding of other real estate owned totaled approximately $2.3 and $3.6 million for 2012 and 2011 respectively.

Bank Premises and Equipment

Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various properties and is computed using straight line and accelerated methods. Costs for maintenance and repairs are charged to operations as incurred. Gains and losses on dispositions are included in current operations.

Federal Income Tax

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the various temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

Earnings Per Share

Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Beginning in 2012, restricted stock awards were included in the weighted average number of common shares outstanding and are included currently when granted. As of December 31, the Company held 30,670, 29,715 and 28,925 shares of anti-dilutive restricted stock awards for 2012, 2011 and 2010 respectively.

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale

securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income.

The components of other comprehensive income and related tax effects are as follows:


	(In Thousands)
	2012			2011			2010
Net unrealized gain (loss) on available-for-sale securities	$	417		$	9,357		$	(2,037	)
Reclassification adjustment for gain on sale of available-for-sale securities		(852	)		(504	)		(956	)

Net unrealized gains (losses)		(435	)		8,853			(2,993	)
Tax effect		(147	)		3,010			(1,017	)

Other comprehensive income (loss)	$	(288	)	$	5,843		$	(1,976	)

Reclassification

Certain amounts in the 2011 and 2010 consolidated financial statements have been reclassified to conform with the 2012 presentation.

Recent Accounting Pronouncements

Troubled Debt Restructurings – In April 2011, The FASB issued ASU 2011-02 “A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring”, which provides additional guidance to help creditors in determining whether a creditor has granted a concession and whether a debtor is experiencing financial difficulties for purposes of determining whether a restructuring constitutes a troubled debt restructuring. The update is effective for annual reporting periods ending on or after December 15, 2012, and later deferred by ASU 2011-1 until December 31, 2012 for the Corporation and is included in Note 4. Other than the additional disclosures, these updates did not have a significant impact on the financial statements.

Fair Value – In 2011. The FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820)- Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This update to Fair Value Measurement (Topic 820) results in common fair value measurement and disclosure requirements in U.S. GAAP and IFRS. The amendments in this update explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. However, this updated does require expanded disclosure related to the nature and significance of inputs that are used in estimating and measuring the fair value of financial instruments. The amendments in this update are to be applied prospectively and are effective for annual reporting periods beginning after December 15, 2011 (therefore, December 31, 2012, for the Corporation). This update did not have a significant impact on the financial statements.

Comprehensive Income – During 2012, the Company adopted new guidance related to the presentation of comprehensive income in the financial statements. Among other changes, the new guidance eliminated the option to only present comprehensive income in the statement of equity. The Company has elected to report comprehensive income in a single statement of operations and comprehensive income. The change in presentation has been applied retrospectively and the 2011 and 2010 financial statements have been restated to conform to the new presentation method. Other than the change in presentation of comprehensive income and related disclosures, the new guidance did not have a material effect on the financial statements.

Goodwill – In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment”. This standard gives an entity the option to assess qualitative factors to determine if goodwill is impaired. If the qualitative assessment indicates no impairment, a quantitative goodwill impairment test is not required. The standard is effective for fiscal years beginning after December 15, 2011, and early adoption is permitted. The Company completed its own qualitative assessment for 2012 and determined no impairment existed. The Company will utilize the services of an independent third party to assess the quantitative test when required.

Business Combination & Asset Purchase

12 Months Ended

Dec. 31, 2012

Business Combination & Asset Purchase [Abstract]

Business Combination & Asset Purchase

Note 2—Business Combination & Asset Purchase

On July 9, 2010 the Bank completed its purchase of a branch office in Hicksville, Ohio from First Place Bank. Deposits of approximately $28 million and loans of $14 million were included in the purchase. The new office is located within the Bank’s current market area, shortening the distance between offices in the Ohio and Indiana market area. The following table summarizes the estimated values of the assets acquired and the liabilities assumed:


($ in Thousands)
Cash	$	114
Loans, Net of Discount		13,792
Accrued Interest on Loans		64
Premises and Equipment		1,803
Core Deposit Intangible Asset		1,087
Other Assets		11

Total Assets Acquired	$	16,871

Deposits	$	27,749
Accrued Interest on Deposits		13
Other Liabilities		10

Total Liabilities Assumed	$	27,772

Net Liabilities Assumed	$	(10,901	)

In connection with a December 31, 2007 Knisely acquisition, the Company recognized a core deposit intangible asset of $1.1 million, which is being amortized on a straight line basis over 7 years, which represents the estimated remaining economic useful life of the deposits.

The Company also recognized core deposit intangible assets of $1.09 million with the purchase of the Hicksville office. These are being amortized over an estimated remaining economic useful life of the deposits of 7 years on a straight line basis.

The estimated amortization expense for the years ended December 31, 2012, 2011 and 2010 was $312, $312 and $235 thousand, respectively.

Amortization expense of the core deposit intangible assets remaining is as follows:


	(In Thousands)
	Knisley		Hicksville		Total
2013	$	157	$	156	$	313
2014		157		156		313
2015		—		155		155
2016		—		155		155
2017		—		77		77
Thereafter		—		—		—

Total	$	314	$	699	$	1,013

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Paragraph F4
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-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.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
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-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.

+ Details

Securities

12 Months Ended

Dec. 31, 2012

Securities [Abstract]

Securities

Note 3—Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:


	(In Thousands)
	2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	10,604	$	—	$	(36	)	$	10,568
U.S. Government agency		216,466		3,905		(171	)		220,200
Mortgage-backed securities		51,581		1,425		—			53,006
State and local governments		68,022		4,129		(20	)		72,131

Total available-for-sale securities	$	346,673	$	9,459	$	(227	)	$	355,905


	(In Thousands)
	2011
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	26,050	$	641	$	—		$	26,691
U.S. Government agency		174,545		3,270		(18	)		177,797
Mortgage-backed securities		54,113		1,318		(18	)		55,413
State and local governments		63,143		4,476		(1	)		67,618

Total available-for-sale securities	$	317,851	$	9,705	$	(37	)	$	327,519

Investment securities will at times depreciate to an unrealized loss position. The Bank utilizes the following criteria to assess whether impairment is other than temporary. No one item by itself will necessarily signal that a security should be recognized as an other than temporary impairment.

The fair value of the security has significantly declined from book value.

A downgrade has occurred that lowered the credit rating to below investment grade (below Baa3 by Moody and BBB – by Standard and Poors.)

Dividends have been reduced or eliminated or scheduled interest payments have not been made.

The underwater security has longer than 10 years to maturity and the loss position had existed for more than 3 years.

Management does not possess both the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.

If the impairment is judged to be other than temporary, the cost basis of the individual security shall be written down to fair value, thereby establishing a new cost basis. The new cost basis shall not be changed for subsequent recoveries in fair value. The amount of the write down shall be included in current earnings as a realized loss. The recovery in fair value, if any, shall be recognized in earnings when the security is sold. The table below is presented by category of security and length of time in a continuous loss position. The Bank currently does not hold any securities with other than temporary impairment.

Information pertaining to securities with gross unrealized losses at December 31, 2012 and 2011, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:


	2012
	(In Thousands)					(In Thousands)
	Less Than Twelve Months					Twelve Months & Over
	Gross					Gross
	Unrealized			Fair		Unrealized		Fair
	Losses			Value		Losses		Value
U.S. Treasury	$	(36	)	$	10,568	$	—	$	—
U.S. Government agency		(171	)		33,034		—		—
Mortgage-backed securities		—			—		—		—
State and local governments		(20	)		2,903		—		—

Total available-for-sales securities	$	(227	)	$	46,505	$	—	$	—


	2011
	(In Thousands)					(In Thousands)
	Less Than Twelve Months					Twelve Months & Over
	Gross					Gross
	Unrealized			Fair		Unrealized		Fair
	Losses			Value		Losses		Value
U.S. Treasury	$	—		$	—	$	—	$	—
U.S. Government agency		(18	)		12,192		—		—
Mortgage-backed securities		(18	)		—		—		—
State and local governments		(1	)		652		—		—

Total available-for-sales securities	$	(37	)	$	12,844	$	—	$	—

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality and the Bank has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

Sales of $60.5, $30.3 and $55.7 million for 2012, 2011 and 2010 respectively, generated gross realized gains and losses for the years ended December 31, as presented below:


	(In Thousands)
	2012		2011		2010
Gross realized gains	$	852	$	504	$	956
Gross realized losses		—		—		—

Net realized gains	$	852	$	504	$	956

Tax expense related to net realized gains	$	290	$	171	$	325

The amortized cost and fair value of debt securities at December 31, 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	(In Thousands)
	Amortized
	Cost		Fair Value
One year or less	$	43,350	$	43,633
After one year through five years		152,321		156,763
After five years through ten years		90,278		91,978
After ten years		9,143		10,525

Total	$	295,092	$	302,899
Mortgage-backed securities		51,581		53,006

Total	$	346,673	$	355,905

Investments with a carrying value and fair value of $196.9 million at December 31, 2012 and $194.7 million at December 31, 2011 were pledged to secure public deposits and securities sold under repurchase agreements.

Other securities include Federal Home Loan Bank of Cincinnati and Indianapolis stock and Farmer Mac stock as of December 31, 2012. The stock is carried at cost, which approximates fair value.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-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.

+ Details

Loans

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Loans

Note 4—Loans

The Company had $2.5 million in loans held for sale in 2012 as compared to $987 thousand in loans held for sale in 2011. Due to materiality, these loans are included in the Consumer Real Estate loan numbers.

Loans at December 31 are summarized below:


	(In Thousands)
Loans:	2012			2011
Commercial real estate	$	199,999		$	198,266
Agricultural real estate		40,143			31,993
Consumer real estate		80,287			84,477
Commercial and industrial		101,624			114,497
Agricultural		57,770			52,598
Consumer		20,413			23,375
Industrial Development Bonds		1,299			1,196

	$	501,535		$	506,402
Less: Net deferred loan fees and costs		(133	)		(187	)

		501,402			506,215
Less: Allowance for loan losses		(5,224	)		(5,091	)

Loans—Net	$	496,178		$	501,124

The following is a maturity schedule by major category of loans:


	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years		Total
Commercial Real Estate	$	25,448	$	103,857	$	70,694	$	199,999
Agricultural Real Estate		3,337		10,136		26,670		40,143
Consumer Real Estate		9,535		14,424		56,328		80,287
Commercial and industrial		58,744		39,716		3,164		101,624
Agricultural		37,153		18,116		2,501		57,770
Consumer		5,345		13,238		1,830		20,413
Industrial Development Bonds		417		490		392		1,299

	$	139,979	$	199,977	$	161,579	$	501,535

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of December 31, 2012:


	(In Thousands)
	Fixed		Variable
	Rate		Rate
Commercial Real Estate	$	118,367	$	81,632
Agricultural Real Estate		28,861		11,282
Consumer Real Estate		65,916		14,371
Commercial and industrial loans		79,493		22,131
Agricultural		53,429		4,341
Consumer, Master Card and Overdrafts		15,941		4,472
Industrial Development Bonds		1,299		—

As of December 31, 2012 and 2011 one to four family residential mortgage loans amounting to $26.8 million and $67.4 million, respectively, have been pledged as security for loans the Bank has received from the Federal Home Loan Bank.

The percentage of delinquent loans has trended downward since the beginning of 2010 from a high of 2.85% of total loans in January to a low of 0.67% as of the end of December 2011. As of December 31, 2012, the percentage stood at .96%. These percentages do not include nonaccrual loans which are not past due. This level of delinquency is due in part to an adherence to sound underwriting practices over the course of time, an improvement in the financial status of companies to which the Bank extends credit, continued financial stability in the agricultural loan portfolio, and the writing down of uncollectable credits in a timely manner.

Industrial Development Bonds are included in the commercial and industrial category for the remainder of the tables in this Note 4.

The following table represents the contractual aging of the recorded investment in past due loans by portfolio segment of loans as of December 31, 2012 and 2011 net of deferred fees:


	(In Thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
2012
Residential	$	575	$	—	$	648	$	1,223	$	79,064	$	80,287	$	—
Ag RE		—		—		—		—		40,143		40,143		—
Ag		11		—		—		11		57,759		57,770		—
Commercial Real Estate		—		—		877		877		199,122		199,999		—
Commercial and Industrial		78		—		2,567		2,645		100,278		102,923		—
Consumer		51		1		—		52		20,228		20,280		1

Total	$	715	$	1	$	4,092	$	4,808	$	496,594	$	501,402	$	1

2011
Residential	$	799	$	248	$	441	$	1,488	$	82,989	$	84,477	$	—
Ag RE		—		—		—		—		31,993		31,993		—
Ag		7		—		—		7		52,591		52,598		—
Commercial Real Estate		—		611		927		1,538		196,728		198,266		—
Commercial and Industrial		77		—		421		498		115,195		115,693		—
Consumer		24		—		—		24		23,164		23,188		—

Total	$	907	$	859	$	1,789	$	3,555	$	502,660	$	506,215	$	—

The following table presents the recorded investment in nonaccrual loans by portfolio segment of loans as of December 31, 2012 and December 31, 2011:


	(In Thousands)
	2012		2011
Consumer real estate	$	964	$	700
Agricultural real estate		—		—
Agriculture		—		7
Commercial real estate		877		1,003
Commercial		2,987		421
Consumer		—		—

Total	$	4,828	$	2,131

The Bank uses a nine tier risk rating system to grade its loans. The grade of a loan may change during the life of the loan. The risk ratings are described as follows.

Zero (0) Unclassified. Any loan which has not been assigned a classification.

One (1) Excellent. Credit to premier customers having the highest credit rating based on an extremely strong financial condition, which compares favorably with industry standards (upper quartile of The Risk Management Association ratios). Financial statements indicate a sound earnings and financial ratio trend for several years with satisfactory profit margins and excellent liquidity exhibited. Prime credits may also be borrowers with loans fully secured by highly liquid collateral such as traded stocks, bonds, certificates of deposit, savings account, etc. No credit or collateral exceptions exist and the loan adheres to the Bank’s loan policy in every respect. Financing alternatives would be readily available and would qualify for unsecured credit. This grade is summarized by high liquidity, minimum risk, strong ratios, and low handling costs.

Two (2) Good. Desirable loans of somewhat less stature than Grade 1, but with strong financial statements. Loan supported by financial statements containing strong balance sheets, generally with a leverage position less than 1.50, and a history of profitability. Probability of serious financial deterioration is unlikely. Possessing a sound repayment source (and a secondary source), which would allow repayment in a reasonable period of time. Individual loans backed by liquid personal assets, established history and unquestionable character.

Three (3) Satisfactory. Satisfactory loans of average or slightly above average risk – having some deficiency or vulnerability to changing economic conditions, but still fully collectible. Projects should normally demonstrate acceptable debt service coverage. Generally, customers should have a leverage position less than 2.00. May be some weakness but with offsetting features of other support readily available. Loans are meeting the terms of repayment.

Loans may be graded 3 when there is no recent information on which to base a current risk evaluation and the following conditions apply:

At inception, the loan was properly underwritten and did not possess an unwarranted level of credit risk;

At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss;

The loan exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance;

During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the business is in an industry which is known to be experiencing problems. If any of the credit weaknesses is observed, a lower risk grade is warranted.

Four (4) Satisfactory / Monitored. A “4” (Satisfactory/Monitored) risk grade may be established for a loan considered satisfactory but which is of average credit risk due to financial weakness or uncertainty. The loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in Satisfactory/Monitored classification is considered acceptable and within normal underwriting guidelines, so long as the loan is given management supervision.

Five (5) Special Mention. Loans that possess some credit deficiency or potential weakness which deserves close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. The key distinctions of a 5 (Special Mention) classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered “potential”, versus “defined”, impairments to the primary source of loan repayment and collateral.

Six (6) Substandard. One or more of the following characteristics may be exhibited in loans classified substandard:

Loans, which possess a defined credit weakness and the likelihood that a loan will be paid from the primary source, are uncertain. Financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss.

Loans are inadequately protected by the current net worth and paying capacity of the borrower.

The primary source of repayment is weakened, and the Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees.

Loans are characterized by the distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.

Unusual courses of action are needed to maintain a high probability of repayment.

The borrower is not generating enough cash flow to repay loan principal; however, continues to make interest payments.

The lender is forced into a subordinate position or unsecured collateral position due to flaws in documentation.

Loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms.

The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan

There is significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions.

Seven (7) Doubtful. One or more of the following characteristics may be exhibited in loans classified Doubtful:

Loans have all of the weaknesses of those classified as Substandard. Additionally, however, these weaknesses make collection or liquidation in full based on existing conditions improbable.

The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

The possibility of loss is high, but, because of certain important pending factors which may strengthen the loan, loss classification is deferred until its exact status is known. A Doubtful classification is established deferring the realization of the loss.

Eight (8) Loss. Loans are considered uncollectable and of such little value that continuing to carry them as assets on the institution’s financial statements is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

The following table represents the risk category of loans by portfolio segment based on the most recent analysis performed as of the time periods shown of December 31, 2012 and December 31, 2011.


	(In Thousands)
	Agriculture Real Estate				Agriculture				Commercial Real Estate				Commercial				Industrial Development Bonds
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
1-2	$	2,719	$	1,058	$	5,022	$	1,500	$	4,046	$	3,545	$	750	$	710	$	97	$	188
3		15,111		12,613		23,525		25,019		42,467		23,283		21,750		22,506		859		622
4		21,481		17,256		29,188		26,008		137,537		159,959		71,228		82,745		343		386
5		794		383		35		57		8,984		6,098		3,385		3,897		—		—
6		38		683		—		7		6,295		4,677		2,202		4,219		—		—
7		—		—		—		7		670		704		2,309		420		—		—
8		—		—		—		—		—		—		—		—		—		—

Total	$	40,143	$	31,993	$	57,770	$	52,598	$	199,999	$	198,266	$	101,624	$	114,497	$	1,299	$	1,196

For consumer residential real estate, and other, the Company also evaluates credit quality based on the aging status of the loan, which was previously stated, and by payment activity. The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of December 31, 2012 and December 31, 2011.


	(In Thousands)
	Consumer Real Estate
	2012		2011
Grade
Pass	$	79,766	$	83,954
Special mention (5)		—		—
Substandard (6)		110		240
Doubtful (7)		411		283

Total	$	80,287	$	84,477


	(In Thousands)
	Consumer—Credit Card				Consumer—Other
	2012		2011		2012		2011
Performing	$	3,470	$	3,607	$	16,775	$	19,531
Nonperforming		3		—		32		50

Total	$	3,473	$	3,607	$	16,807	$	19,581

Information about impaired loans as of and for the years ended December 31, 2012 and 2011 are as follows:


	(In Thousands)
	2012		2011
Impaired loans without a valuation allowance	$	730	$	446
Impaired loans with a valuation allowance		3,861		1,408

Total impaired loans	$	4,591	$	1,854

Valuation allowance related to impaired loans	$	865	$	175

Total non-accrual loans	$	4,828	$	2,131

Total loans past-due ninety days or more and still accruing	$	1	$	—


	(In Thousands)
	2012		2011		2010
Average investment in impaired loans	$	3,436	$	5,466	$	10,136

Interest income recognized on impaired loans	$	26	$	1,230	$	61

Interest income recognized on a cash basis on impaired loans	$	21	$	1,175	$	41

No additional funds are committed to be advanced in connection with impaired loans.

The Bank had approximately $627.3 thousand of its impaired loans classified as trouble debt restructured as of December 31, 2012 as compared to $207 thousand of its impaired loans classified as trouble debt restructured as of December 31, 2011.

The following table represents three months ended and year ended December 31, 2012.

Pre-

Post-

Pre-

Post-

Number of

Modification

Number of

Modification

Contracts

Outstanding

Contracts

Outstanding

December 31, 2012

Modified in the

Recorded

December 31, 2012

Modified in the

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Troubled Debt Restructurings

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

1,937

1,921

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

420

Number of

Contracts

Troubled Debt Restructurings

Modified in the

Recorded

Troubled Debt Restructurings

Modified in the

Recorded

That Subsequently Defaulted

Last 3 Months

Investment

That Subsequently Defaulted

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

—

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

The following table represents three months ended and year ended December 31, 2011.

Pre-

Post-

Pre-

Post-

Number of

Modification

Number of

Modification

Contracts

Outstanding

Contracts

Outstanding

December 31, 2011

Modified in the

Recorded

December 31, 2011

Modified in the

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Troubled Debt Restructurings

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

923

702

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

Number of

Contracts

Troubled Debt Restructurings

Modified in the

Recorded

Troubled Debt Restructurings

Modified in the

Recorded

That Subsequently Defaulted

Last 3 Months

Investment

That Subsequently Defaulted

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

207

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge down in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 120 days delinquent, secured consumer loans are charged down to the value of the collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. Commercial and agricultural credits are charged down at 120 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized.

The following table presents loans individually evaluated for impairment by portfolio segment of loans as of December 31, 2012 and 2011:


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized
2012
With no related allowance recorded:
Residential	$	236	$	236	$	—	$	269	$	12
Agriculture real estate		—		—		—				—
Agriculture		—		—		—		—		—
Commercial real estate		207		384		—		206		—
Commercial		287		334		—		212		—
Consumer		—		—		—		—		—
With a specific allowance recorded:
Residential		411		512		70		454		1
Agriculture real estate		—		—		—		—		—
Agriculture		—		—		—		—		—
Commercial real estate		670		916		25		657		—
Commercial		2,780		2,780		770		1,636		13
Consumer		—		—		—		2		—

Totals:
Residential	$	647	$	748	$	70	$	723	$	13

Agriculture real estate	$	—	$	—	$	—	$	—	$	—

Agriculture	$	—	$	—	$	—	$	—	$	—

Commercial real estate	$	877	$	1,300	$	25	$	863	$	—

Commercial	$	3,067	$	3,114	$	770	$	1,848	$	13

Consumer	$	—	$	—	$	—	$	2	$	—


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized
2011
With no related allowance recorded:
Residential	$	239	$	239	$	—	$	195	$	36
Agriculture real estate		—		—		—		180		15
Agriculture		—		—		—		2,683		1,156
Commercial real estate		207		384		—		1,357		22
Commercial		—		—		—		55		1
Consumer		—		—		—		1		—
With a specific allowance recorded:
Residential		283		308		54		369		—
Agriculture real estate		—		—		—		—		—
Agriculture		—		—		—		—		—
Commercial real estate		704		854		29		188		—
Commercial		420		420		91		438		—
Consumer		—		—		—		—		—

Totals:
Residential	$	522	$	547	$	54	$	564	$	36

Agriculture real estate	$	—	$	—	$	—	$	180	$	15

Agriculture	$	—	$	—	$	—	$	2,683	$	1,156

Commercial real estate	$	911	$	1,238	$	29	$	1,545	$	22

Commercial	$	420	$	420	$	91	$	493	$	1

Consumer	$	—	$	—	$	—	$	1	$	—

The ALLL has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense. The following tables summarize the activities in the allowance for credit losses.

The following is an analysis of the allowance for credit losses:


	(In Thousands)
	2012			2011			2010
Allowance for Loan Losses
Balance at beginning of year	$	5,091		$	5,706		$	6,008
Provision for loan loss		738			1,715			5,325
Loans charged off		(891	)		(2,681	)		(6,422	)
Recoveries		286			351			795

Balance at ending of year	$	5,224		$	5,091		$	5,706

Allowance for Unfunded Loan Commitments & Letters of Credit	$	162		$	130		$	153

Total Allowance for Credit Losses	$	5,386		$	5,221		$	5,859

The Company segregates its Allowance for Loan and Lease Losses (ALLL) into two reserves: The ALLL and the Allowance for Unfunded Loan Commitments and Letters of Credit (AULC). When combined, these reserves constitute the total Allowance for Credit Losses (ACL).

The AULC is reported within other liabilities on the balance sheet while the ALLL is netted within the loans, net asset line. The ACL presented above represents the full amount of reserves available to absorb possible credit losses.

The following table breaks down the activity within ALLL for each loan portfolio segment and shows the contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs.

Additional analysis related to the allowance for credit losses as of December 31, 2012 and 2011 is as follows:


	(In Thousands)
	Consumer Real Estate			Agriculture Real Estate			Agriculture			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
2012
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	261		$	140		$	266		$	2,088		$	1,947		$	315		$	130	$	74	$	5,221
Charge Offs		(246	)		—			(6	)		(98	)		(47	)		(494	)		—		—		(891	)
Recoveries		61			—			12			7			30			176			—		—		286
Provision		292			(27	)		18			(248	)		253			271			—		179		738
Other Non-interest expense related to unfunded		—			—			—			—			—			—			32		—		32

Ending Balance	$	368		$	113		$	290		$	1,749		$	2,183		$	268		$	162	$	253	$	5,386

Ending balance: individually evaluated for impairment	$	70		$	—		$	—		$	25		$	770		$	—		$	—	$	—	$	865

Ending balance: collectively evaluated for impairment	$	298		$	113		$	290		$	1,724		$	1,413		$	268		$	162	$	253	$	4,521

Ending balance: loans acquired with deteriorated credit quality	$	1		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	1

FINANCING RECEIVABLES:
Ending balance	$	80,287		$	40,143		$	57,770		$	199,999		$	102,923		$	20,280		$	—	$	—	$	501,402

Ending balance: individually evaluated for impairment	$	648		$	—		$	—		$	877		$	3,066		$	—		$	—	$	—	$	4,591

Ending balance: collectively evaluated for impairment	$	79,639		$	40,143		$	57,770		$	199,122		$	99,857		$	20,280		$	—	$	—	$	496,811

Ending balance: loans acquired with deteriorated credit quality	$	548		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	548


	(In Thousands)
	Consumer Real Estate			Agriculture Real Estate		Agriculture			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated			Total
2011
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	258		$	122	$	327		$	1,868		$	2,354		$	380		$	153		$	397		$	5,859
Charge Offs		(422	)		—		(24	)		(360	)		(1,500	)		(375	)		—			—			(2,681	)
Recoveries		61			—		67			32			19			172			—			—			351
Provision		364			18		(104	)		548			1,074			138			—			(323	)		1,715
Other Non-interest expense related to unfunded		—			—		—			—			—			—			(23	)		—			(23	)

Ending Balance	$	261		$	140	$	266		$	2,088		$	1,947		$	315		$	130		$	74		$	5,221

Ending balance: individually evaluated for impairment	$	55		$	—	$	—		$	29		$	91		$	—		$	—		$	—		$	175

Ending balance: collectively evaluated for impairment	$	206		$	140	$	266		$	2,059		$	1,856		$	315		$	130		$	74		$	5,046

Ending balance: loans acquired with deteriorated credit quality	$	2		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	2

FINANCING RECEIVABLES:
Ending balance	$	84,477		$	31,993	$	52,598		$	198,266		$	115,693		$	23,188		$	—		$	—		$	506,215

Ending balance: individually evaluated for impairment	$	523		$	—	$	—		$	911		$	420		$	—		$	—		$	—		$	1,854

Ending balance: collectively evaluated for impairment	$	83,954		$	31,993	$	52,598		$	197,355		$	115,273		$	23,188		$	—		$	—		$	504,361

Ending balance: loans acquired with deteriorated credit quality	$	856		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	856

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph 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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

+ Details

Premises and Equipment

12 Months Ended

Dec. 31, 2012

Premises and Equipment [Abstract]

Premises and Equipment

Note 5—Premises and Equipment

The major categories of banking premises and equipment and accumulated depreciation at December 31 are summarized below:


	(In Thousands)
	2012			2011
Land	$	4,337		$	3,635
Buildings (useful life 15-39 years)		19,130			18,979
Construction in Progress		274			—
Furnishings (useful life 3-15 years)		10,361			9,994

		34,102			32,608
Less: Accumulated depreciation		(16,503	)		(15,624	)

Premises and Equipment (Net)	$	17,599		$	16,984

The construction contract for our new Waterville office, which is in progress, has an amount yet to be paid of $605 thousand totaling a completed contract of $825 thousand. The architect contract totals $54 thousand with $15 thousand yet to be paid.

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 amounted to $1.2, $1.1, and $1.1 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Servicing

12 Months Ended

Dec. 31, 2012

Servicing [Abstract]

Servicing

Note 6—Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others were $280 and $273 million at December 31, 2012 and 2011, respectively.

The balance of capitalized servicing rights included in other assets at December 31, 2012 and 2011, was $2.1. The capitalized addition of servicing rights is included in net gain on sale of loans on the consolidated statement of income. The capitalized additions are as shown in the table following.

The fair market value of the capitalized servicing rights as of December 31, 2012 and 2011 was $2.4 million and $2.8 million, respectively. The valuations were completed by stratifying the loans into like groups based on loan type and term. Impairment was measured by estimating the fair value of each stratum, taking into consideration an estimated level of prepayment based upon current market conditions. An average constant prepayment rate of 18.9 and 12.6 were utilized for 2012 and 2011, respectively. All stratums showed positive values compared to carrying value using a discount yield of 7.75% for 2012 and for 2011.

The following summarizes mortgage servicing rights capitalized and amortized during each year:


	(In Thousands)
	2012			2011
Beginning Year	$	2,071		$	2,178
Capitalized Additions		760			391
Amortization		(768	)		(498	)
Valuation Allowance		—			—

End of Year	$	2,063		$	2,071

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107207-111719

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
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-URI http://asc.fasb.org/extlink&oid=7519067&loc=SL6226443-111709

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
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-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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 17
-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.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
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-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.

+ Details

Deposits

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Deposits

Note 7—Deposits

Time deposits at December 31 consist of the following:


	(In Thousands)
	2012		2011
Time deposits under $100,000	$	147,732	$	163,726
Time deposits of $100,000 or more		121,775		127,900

	$	269,507	$	291,626

At December 31, 2012 the scheduled maturities for time deposits are as follows:


	(In Thousands)
2012	$	132,584
2013		74,298
2014		38,750
2015		15,661
2016		6,492
thereafter		1,722

	$	269,507

- Definition

The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity.

+ References + Details

Securities Sold Under Agreement to Repurchase

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Securities Sold Under Agreement to Repurchase

Note 8— Securities Sold Under Agreement to Repurchase

The Bank’s policy requires qualifying securities to be used as collateral for the underlying repurchase agreements. As of December 31, 2012 and 2011 securities with a book value of $69.0 million and $61.6 million, respectively, were pledged to secure the repurchase agreements. The table below presents the daily securities sold under agreement to repurchase and the term repurchase agreements.


	Daily Securities Sold Under Agreement to Repurchase
	Amount		Weighted			Maximum Amount		Approximate		Approximate
	Outstanding		Average			Borrowings		Average		Weighted Average
	at End		Rate End			Outstanding		Outstanding in		Interest Rate
	of Period (000’s)		of Period			Month End (000’s)		Period (000’s)		For the Period
2012	$	35,173		0.10	%	$	41,876	$	38,725		0.18	%
2011	$	38,209		0.15	%	$	42,154	$	36,910		0.30	%
2010	$	37,191		0.36	%	$	37,501	$	34,046		0.36	%

	Term CD’s Sold Under Agreement to Repurchase
	Amount		Weighted			Maximum Amount		Approximate		Approximate
	Outstanding		Average			Borrowings		Average		Weighted Average
	at End		Rate End			Outstanding		Outstanding in		Interest Rate
	of Period (000’s)		of Period			Month End (000’s)		Period (000’s)		For the Period
2012	$	16,139		1.25	%	$	16,139	$	14,184		1.22	%
2011	$	14,231		1.28	%	$	15,095	$	14,606		1.25	%
2010	$	14,050		1.28	%	$	14,050	$	12,493		1.24	%

Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Federal Home Loan Bank Advances

Note 9— Federal Home Loan Bank Advances

Long term debt consists of various loans from the Federal Home Loan Bank. Repayment structures vary, ranging from monthly installments, annual payments or upon maturity. Interest payments are due monthly with interest rates on the loans varying from 1.77% to 2.70%. Total borrowings were $11.6 million and $16.7 million for 2012 and 2011, respectively. The advances are secured by $26.8 and $67.4 million of mortgage loans as of December 31, 2012 and 2011, respectively under a blanket collateral agreement.

The advances are subject to prepayment penalties and the provisions and conditions of the credit policy of the Federal Home Loan Bank. Future obligations of the advances are as follows at December 31, 2012:


	(In Thousands)
2013	$	7,100
2014		4,500

	$	11,600

- Definition

The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 45
-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6802200&loc=d3e1835-112601

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.13(a))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 47
-Paragraph 17
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 14
-Subparagraph h
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 37
-IssueDate 2006-05-01
-Chapter 15
-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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 15, 18
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

+ Details

Federal Income Taxes

12 Months Ended

Dec. 31, 2012

Federal Income Taxes [Abstract]

Federal Income Taxes

Note 10—Federal Income Taxes

The components of income tax expense (benefit) for the years ended December 31 are as follows:


	(In Thousands)
	2012			2011			2010
Current:
Federal	$	4,030		$	3,058		$	2,172

Deferred:
Federal		(126	)		(165	)		210

	$	3,904		$	2,893		$	2,382

The following is a reconciliation of the statutory federal income tax rate to the effective tax rate:


	(In Thousands)
	2012			2011			2010
Income tax at statutory rates	$	4,655		$	3,878		$	3,183
Increase(decrease) resulting from:
Tax exempt interest		(677	)		(689	)		(744	)

Change in prior estimates and other		(74	)		(296	)		(57	)

	$	3,904		$	2,893		$	2,382

Deferred tax assets and liabilities at December 31 are comprised of the following:


	(In Thousands)
	2012			2011
Deferred Tax Assets:
Allowance for loan losses	$	1,776		$	1,731
Other		766			860

Total deferred tax assets		2,542			2,591
Deferred Tax Liabilities:
Accreted discounts on bonds		55			62
FHLB stock dividends		859			859
Mortgage servicing rights		701			704
Other		1,094			1,007
Net unrealized gain on available-for-sale securities		3,139			3,287

Total deferred tax liabilities		5,848			5,919

Net Deferred Tax Liability	$	(3,306	)	$	(3,328	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-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.

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 11—Employee Benefit Plans

The Bank has established a 401(k) profit sharing plan, which allows eligible employees to save at a minimum one percent of eligible compensation on a pre-tax basis, subject to certain Internal Revenue Service limitations. The Bank will match 50% of employee 401(k) contributions up to four percent of total eligible compensation. In addition, the Bank may make a discretionary contribution from time to time. A participant is 100% vested in the participant’s deferral contributions and employer matching contributions. A six-year vesting schedule applies to employer discretionary contributions. Contributions to the 401(k) profit sharing plan for both the employer matching contribution and the discretionary contribution were $744, $680 and $551 thousand for 2012, 2011 and 2010, respectively.

Restricted Stock Awards

The Company has a Long-Term Stock Incentive Plan under which 11,000 shares of restricted stock were issued to 54 employees during 2012, 11,000 shares of restricted stock were issued to 56 employees and 10,150 shares to 53 employees during 2011 and 2010, respectively. Under the plan, the shares vest 100% in three years. During the 3 year vesting period, the employees received dividends or dividend equivalent compensation on the shares. Due to employee termination, there were 1,135, 778 and 1,575 shares forfeited during 2012, 2011 and 2010, respectively. During 2012, 8,700 shares awarded in 2009 were vested 100%, and 41 employees received the stock. Due to retirement, one employee received 210 shares from awards granted in 2009, 2010 and 2011. The majority of shares, 8,875, awarded in 2008 were vested 100% during 2011 and 44 employees received the stock. Three employees received 557 shares from awards granted in 2008, 2009 and 2010 due to retirement. During 2010, 7,425 shares awarded in 2007 were vested 100%. Forty employees were still employed and received the stock. Compensation expense applicable to the restricted stock totaled $219, $202, and $191 thousand for the year ending December 31, 2012, 2011 and 2010, respectively.

The following table summarizes the activity of restricted stock awards:


	2012			2011			2010
Beginning of period		29,715			28,925			27,775
Granted		11,000			11,000			10,150
Vested		(8,910	)		(9,432	)		(7,425	)
Forfeited		(1,135	)		(778	)		(1,575	)

Nonvested, end of period		30,670			29,715			28,925

As of December 31, 2012, there was $334 thousand of unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-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.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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-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.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-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.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
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-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-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.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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-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.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-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.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-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.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
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-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.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-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.

+ Details

Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions

Note 12—Related Party Transactions

In the ordinary course of business, the Bank has granted loans to senior officers and directors and their affiliated companies amounting to $6.5 and $6.9 million at December 31, 2012 and 2011, respectively. New loans approved during 2012 were $827 thousand. During 2012, subsequent advances totaled $13.3 million and payments of $13.7 million were received. The difference in related borrowings amounted to $446 thousand, net reduction. Deposits of directors, executive officers and companies in which they have a direct or indirect ownership as of December 31, 2012 and 2011, amounted to $4.2 million and $4.0 million, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-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.

+ Details

Off Balance Sheet Activities

12 Months Ended

Dec. 31, 2012

Off Balance Sheet Activities [Abstract]

Off Balance Sheet Activities

Note 13—Off Balance Sheet Activities

Credit Related Financial Instruments

The Bank is a party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing need of its customers. These financial instruments include commitments to extend credit, Standby Letters of Credit, and Commercial Letters of Credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss is represented by the contractual amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet instruments. The allowance for credit losses as it relates to unfunded loan commitments (AULC) is included under other liabilities. The AULC as of December 31, 2012 and 2011 was $163 thousand and $130 thousand, respectively. At December 31, 2012 and 2011, the following financial instruments were outstanding whose contract amounts represent credit risk:


	(In Thousands)
	2012		2011
Commitments to extend credit	$	191,790	$	146,598
Credit card arrangements		14,451		14,152
Standby letters of credit		1,470		1,038

Commitments to extend credit, credit card arrangements and Standby Letters of Credit all include exposure to some credit loss in the event of nonperformance of the customer. The Bank’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded in the financial statements. Due to the fact that these instruments have fixed maturity dates, and because many of them expire without being drawn upon, they generally do not present any significant liquidity risk to the Bank.

Collateral Requirements

To reduce credit risk related to the use of credit-related financial instruments, the Bank might deem it necessary to obtain collateral. The amount and nature of the collateral obtained is based on the Bank’s credit evaluation of the customer. Collateral held varies but may include cash, securities, accounts receivable, inventory, property, plant, and real estate.

Legal Contingencies

Various legal claims also arise from time to time in the normal course of business, which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-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.

+ Details

Minimum Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Minimum Regulatory Capital Requirements

Note 14—Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) 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 Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their 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. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of: total risk-based capital and Tier I capital to risk-weighted assets (as defined in the regulations), and Tier I capital to adjusted total assets (as defined). Management believes, as of December 31, 2012, that the Bank meets all the capital adequacy requirements to which it is subject.

As of December 31, 2012 the most recent notification from the FDIC indicated the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as disclosed in the table to follow. There are no conditions or events since the most recent notification that management believes have changed the Bank’s prompt corrective action category.

The Company and the Bank’s actual and required capital amounts and ratios as of December 31, 2012 and 2011 are as follows:


											To Be Well Capitalized
											Under the Prompt
						For Capital					Corrective Action
	Actual					Adequacy Purposes					Provisions
	(000’s)					(000’s)					(000’s)
As of December 31, 2012	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Risk-Based Capital (to Risk Weighted Assets) Consolidated	$	104,446		17.35	%	$	48,167		8.00	%		N/A		N/A
Farmers & Merchants State Bank		88,746		14.74	%		48,167		8.00	%	$	60,208		10.00	%
Tier 1 Capital (to Risk Weighted Assets) Consolidated		99,059		16.45	%		24,084		4.00	%		N/A		N/A
Farmers & Merchants State Bank		83,359		13.85	%		24,083		4.00	%		36,125		6.00	%
Tier 1 Capital (to Adjusted Total Assets) Consolidated		99,059		10.67	%		37,152		4.00	%		N/A		N/A
Farmers & Merchants State Bank		83,359		8.92	%		37,368		4.00	%		46,710		5.00	%


											To Be Well Capitalized
											Under the Prompt
						For Capital					Corrective Action
	Actual					Adequacy Purposes					Provisions
	(000’s)					(000’s)					(000’s)
As of December 31, 2011	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Risk-Based Capital (to Risk Weighted Assets) Consolidated	$	98,531		16.54	%	$	47,657		8.00	%		N/A		N/A
Farmers & Merchants State Bank		85,618		14.37	%		47,656		8.00	%	$	59,570		10.00	%
Tier 1 Capital (to Risk Weighted Assets) Consolidated		93,310		15.66	%		23,829		4.00	%		N/A		N/A
Farmers & Merchants State Bank		77,397		12.99	%		23,828		4.00	%		35,742		6.00	%
Tier 1 Capital (to Adjusted Total Assets) Consolidated		93,310		10.25	%		36,398		4.00	%		N/A		N/A
Farmers & Merchants State Bank		77,397		8.48	%		36,509		4.00	%		45,636		5.00	%

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=7881181&loc=d3e65071-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958574-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958573-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958575-112826

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 15, 16, 17
-IssueDate 2006-05-01
-Chapter 17
-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.

+ Details

Restrictions of Dividends & Inter-company Borrowings

12 Months Ended

Dec. 31, 2012

Restrictions of Dividends & Inter-company Borrowings [Abstract]

Restrictions of Dividends & Inter-company Borrowings

Note 15—Restrictions of Dividends & Inter-company Borrowings

The Bank is restricted as to the amount of dividends that can be paid. Dividends declared by the Bank that exceed the net income for the current year plus retained income for the preceding two years must be approved by federal and state regulatory agencies. Under this formula dividends of $12.6 million may be paid without prior regulatory approval. Regardless of formal regulatory restrictions, the Bank may not pay dividends that would result in its capital levels being reduced below the minimum requirements shown above. Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may make to the Company. These loans are subject to qualifying collateral requirements on which the amount of the loan may be based.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 16—Fair Value of Financial Instruments

Fair values of financial instruments are management’s estimate of the values at which the instruments could be exchanged in a transaction between willing parties. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including deferred tax assets, premises, equipment and intangibles. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of the estimates.

The following assumptions and methods were used in estimating the fair value for financial instruments:

Cash and Cash Equivalents

The carrying amounts reported in the balance sheet for cash, cash equivalents and federal funds sold approximate their fair values. Also included in this line item are the carrying amounts of interest-bearing deposits maturing within ninety days which approximate their fair values. Fair values of other interest-bearing deposits are estimated using discounted cash flow analyses based on current rates for similar types of deposits.

Securities and Other Securities

Fair values for securities, excluding Federal Home Loan Bank stock, are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank.

Loans

For those variable-rate loans that re-price frequently, and with no significant change in credit risk, fair values are based on carrying values. The fair values of the fixed rate and all other loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality.

Deposits

The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amount payable on demand. The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair value at the reporting date. Fair value for fixed-rate certificates of deposit are estimated using a discounted cash flow analysis that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Short-Term Borrowings

The carrying value of short-term borrowings approximates fair values.

FHLB Advances

Fair values or FHLB advances are estimated using discounted cash flow analysis based on the Company’s current incremental borrowing rates for similar types or borrowing arrangements.

Accrued Interest Receivable and Payable

The carrying amounts of accrued interest approximate fair values.

Dividends Payable

The carrying amounts of dividends payable approximate their fair values and are generally paid within forty days of declaration.

Off Balance Sheet Financial Instruments

Fair values for off-balance-sheet, credit related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of December 31, 2012 and 2011, are reflected below. The aggregate fair values in the table below do not represent the total market value of the Bank’s assets and liabilities. The table excludes the following:

Bank Premises and Equipment, Goodwill, Mortgage Servicing Rights, Other Real Estate Owned, Other Assets, Other Liabilities and Accrued Expenses.


	(In Thousands)
	December 2012										December 2011
	Carrying		Fair								Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3		Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	44,092	$	44,092	$	44,092	$	—	$	—	$	43,143	$	43,143	$	43,143	$	—	$	—
Securities—available for sale		355,905		355,905		10,568		328,929		16,408		327,519		327,519		26,691		287,127		13,701
Other Securities		4,365		4,365		—		—		4,365		4,365		4,365		—		—		4,365
Loans, net		496,178		502,125		—		—		502,125		501,124		504,629		—		—		504,629
Interest receivable		3,603		3,603		—		—		3,603		3,218		3,218		—		—		3,218

Total Assets	$	904,143	$	910,090	$	54,660	$	328,929	$	526,501	$	876,151	$	882,874	$	69,834	$	287,127	$	525,913

Financial Liabilities:
Interest bearing Deposits	$	389,779	$	390,066	$	—	$	—	$	390,066	$	363,189	$	363,727	$	—	$	—	$	363,727
Non-interest bearing Deposits		103,966		104,529		—		104,529		—		84,567		85,517		—		85,517		—
Time Deposits		269,507		272,591		—		—		272,591		291,626		292,731		—		—		292,731

Total Deposits	$	763,252	$	767,186	$	—	$	104,529	$	662,657	$	739,382	$	741,975	$	—	$	85,517	$	656,458
Short-term debt		51,312		51,312		—		—		51,312		52,440		52,440		—		—		52,440
Federal Home Loan Bank advances		11,600		11,012		—		—		11,012		16,662		16,638		—		—		16,638
Interest payable		288		288		—		—		288		342		342		—		—		342
Dividends payable		931		931		—		931		—		890		890		—		890		—

Total Liabilities	$	827,383	$	830,729	$	—	$	105,460	$	725,269	$	809,716	$	812,285	$	—	$	86,407	$	725,878

Fair Value Measurements

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2012 and 2011, and the valuation techniques used by the Company to determine those fair values.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities in active markets that the Company has the ability to access.

Available-for-sale securities—When quoted prices are available in an active market, securities are valued using the quoted price and are classified as Level 1. The quoted prices are not adjusted.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.

Available-for-sale securities classified as Level 2 are valued using the prices obtained from an independent pricing service. The prices are not adjusted. Securities of obligations of state and political subdivisions are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. Substantially all assumptions used by the independent pricing service are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. The Bank holds some local municipals that the Bank evaluates based on the credit strength of the underlying project such as hospital or retirement housing. The fair value is determined by valuing similar credit payment streams at similar rates.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset.

The following summarizes financial assets measured at fair value on a recurring basis as of December 31, 2012 and December 31, 2011 segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:


($ in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
December 31, 2012
Assets-(Securities Available for Sale)
U.S. Treasury	$	10,568	$	—	$	—
U.S. Government agency		—		220,200		—
Mortgage-backed securities		—		53,006		—
State and local governments		—		55,723		16,408

Total Securities Available for Sale	$	10,568	$	328,929	$	16,408


($ in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
December 31, 2011
Assets-(Securities Available for Sale)
U.S. Treasury	$	26,691	$	—	$	—
U.S. Government agency		—		177,797		—
Mortgage-backed securities		—		55,413		—
State and local governments		—		53,917		13,701

Total Securities Available for Sale	$	26,691	$	287,127	$	13,701

Most of the Company’s available for sale securities, including any bonds issued by local municipalities, have CUSIP numbers or have similar characteristics of those in the municipal markets, making them marketable and comparable as Level 2.

The Company also has assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis. At December 31, 2012 and 2011, such assets consist primarily of impaired loans. Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Company estimates the fair value of the loans based on the present value of expected future cash flows using management’s best estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals).

At December 31, 2012 and 2011, impaired loans categorized as Level 3 were $4.6 and $1.9 million, respectively. The specific allocation for impaired loans was $865 and $175 thousand as of December 31, 2012 and 2011, respectively, which are accounted for in the allowance for loan losses (see Note 4).

Other real estate is reported at the lower of either the fair value of the real estate, minus the estimated costs to sell the asset, or the cost of the asset. The determination of the fair value of the real estate relies primarily on appraisals from third parties. If the fair value of the real estate, minus the estimated costs to sell the asset, is less than the asset’s cost, the deficiency is recognized as a valuation allowance against the asset through a charge to expense. The valuation allowance is therefore increased or decreased, through charges or credits to expense, for changes in the asset’s fair value or estimated selling costs.

The following table presents impaired loans and other real estate owned as recorded at fair value:


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012
($ in Thousands)	Balance at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Change in fair value for twelve-month period ended Dec. 31, 2012
Impaired loans	$	4,591	$	—	$	—	$	4,591	$	(76	)
Other real estate owned—residential mortgages		783		—		—		783		(62	)
Other real estate owned—commercial		1,526		—		—		1,526		(214	)

Total change in fair value									$	(352	)


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2011
($ in Thousands)	Balance at December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Change in fair value for twelve-month period ended Dec. 31, 2011
Impaired loans	$	1,854	$	—	$	—	$	1,854	$	(150	)
Other real estate owned—residential mortgages		958		—		—		958		(145	)
Other real estate owned—commercial		2,614		—		—		2,614		(633	)

Total change in fair value									$	(928	)

The Company also has other assets, which under certain conditions, are subject to measurement at fair value. These assets include loans held for sale, bank owned life insurance, and mortgage servicing rights. The Company estimated the fair values of these assets utilizing Level 3 inputs, including, the discounted present value of expected future cash flows. At December 31, 2012, the Company estimates that there is no impairment of these assets and therefore, no impairment charge to other expense was required to adjust these assets to their estimated fair values.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-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.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-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.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-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.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-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.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-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.

+ Details

Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2012

Condensed Financial Statements of Parent Company [Abstract]

Condensed Financial Statements of Parent Company

Note 17 — Condensed Financial Statements of Parent Company

Balance Sheet


	(In Thousands)
	2012		2011
Assets
Cash	$	1,173	$	983
Related party receivables:
Dividends & Accounts receivable from subsidiary		954		1,214
Note receivable from Bank subsidiary		15,000		15,000
Investment in subsidiary		94,540		89,178

Total Assets	$	111,667	$	106,375

Liabilities
Accrued expenses	$	497	$	394
Dividends payable		931		890

		1,428		1,284

Stockholders’ Equity
		110,239		105,091

Total Liabilities and Stockholders’ Equity	$	111,667	$	106,375

Statement of Income


	(In Thousands)
	2012		2011		2010
Income
Dividends from subsidiary	$	3,870	$	4,000	$	4,205
Interest		713		713		713

Total Income		4,583		4,713		4,918

Operating Expenses		305		499		472

Income Before Income Taxes and Equity in Undistributed Earnings (Distributions in excess of earnings) and Subsidiary		4,278		4,214		4,446
Income Taxes		139		72		82

		4,139		4,142		4,364
Equity in undistributed earnings (Distributions in excess of earnings) of subsidiary		5,649		4,372		2,617

Net Income	$	9,788	$	8,514	$	6,981

Statements of Cash Flows


	(In Thousands)
	2012			2011			2010
Cash Flows from Operating Activities
Net income	$	9,788		$	8,514		$	6,981
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Equity in undistributed net income (Distributions in excess earnings) of subsidiaries		(5,649	)		(4,372	)		(2,617	)
Changes in Assets and Liabilities:
Dividends receivable		260			(111	)		(42	)
Other Liabilities		282			231			101

Net Cash Provided by
Operating Activities		4,681			4,262			4,423
Cash Flows from Investing Activities
Return of Capital from Investment in Subsidiary		—			—			—
Cash Flows from Financing Activities
Payment of dividends		(3,597	)		(3,567	)		(3,402	)
Purchase of Treasury Stock		(894	)		(310	)		(894	)

Net Change in Cash and
Cash Equivalents		190			385			127
Cash and Cash Equivalents
Beginning of year		983			598			471

Cash and Cash Equivalents
End of year	$	1,173		$	983		$	598

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data [Abstract]

Quarterly Financial Data

Note 18 — Quarterly Financial Data

Quarterly Financial Data—UNAUDITED


	(000’s omitted except per share data) Quarter Ended in 2012
	Mar 31			June 30			Sep 30			Dec 31
Summary of Income:
Interest income	$	8,476		$	8,525		$	8,278		$	7,994
Interest expense		1,624			1,653			1,532			1,441

Net Interest Income		6,852			6,872			6,746			6,553
Provision for loan loss		128			78			236			296

Net interest income after provision of loan loss		6,724			6,794			6,510			6,257
Other income (expense)		(3,510	)		(3,236	)		(3,122	)		(2,725	)

Net income before income taxes		3,214			3,558			3,388			3,532
Income taxes		930			1,020			947			1,007

Net income	$	2,284		$	2,538		$	2,441		$	2,525

Earnings per Common Share	$	0.48		$	0.54		$	0.52		$	0.54

Average common shares outstanding		4,714,197			4,695,151			4,685,879			4,688,467


	Quarter Ended in 2011
	Mar 31			June 30			Sep 30			Dec 31
Summary of Income:
Interest income	$	9,655		$	8,844		$	8,855		$	9,306
Interest expense		2,221			2,109			1,991			1,835

Net Interest Income		7,434			6,735			6,864			7,471
Provision for loan loss		772			657			93			193

Net interest income after provision for loan loss		6,662			6,078			6,771			7,278
Other income (expense)		(4,235	)		(3,885	)		(3,971	)		(3,291	)

Net income before income taxes		2,427			2,193			2,800			3,987
Income taxes		446			626			719			1,102

Net income	$	1,981		$	1,567		$	2,081		$	2,885

Earnings per common share	$	0.42		$	0.34		$	0.44		$	0.62

Average common shares outstanding		4,693,080			4,686,008			4,687,169			4,689,883

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Consolidation Policy

Consolidation Policy

Use of Estimates

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents

Restrictions on Cash and Amounts Due from Banks

Restrictions on Cash and Amounts Due from Banks

The Bank is required to maintain average balances on hand with the Federal Reserve Bank. The aggregate reserve was $4.9 million for December 31, 2012 and it was $4.2 million for December 31, 2011.

The Company and its subsidiary maintain cash balances with high quality credit institutions. At times such balances may be in excess of the federally insured limits.

Securities

Securities

Other Securities

Other Securities

Loans

Loans

Allowance for Loan Losses

Allowance for Loan Losses

Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment disclosures.

Loans Held for Sale

Loans Held for Sale

Servicing Assets

Servicing Assets

Goodwill and other Intangible Assets

Goodwill and other Intangible Assets

Off Balance Sheet Instruments

Off Balance Sheet Instruments

Foreclosed Real Estate

Foreclosed Real Estate

Bank Premises and Equipment

Bank Premises and Equipment

Federal Income Tax

Federal Income Tax

Earnings Per Share

Earnings Per Share

Comprehensive Income

Comprehensive Income

securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income.

The components of other comprehensive income and related tax effects are as follows:


	(In Thousands)
	2012			2011			2010
Net unrealized gain (loss) on available-for-sale securities	$	417		$	9,357		$	(2,037	)
Reclassification adjustment for gain on sale of available-for-sale securities		(852	)		(504	)		(956	)

Net unrealized gains (losses)		(435	)		8,853			(2,993	)
Tax effect		(147	)		3,010			(1,017	)

Other comprehensive income (loss)	$	(288	)	$	5,843		$	(1,976	)

Reclassification

Reclassification

Certain amounts in the 2011 and 2010 consolidated financial statements have been reclassified to conform with the 2012 presentation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Components of other comprehensive income and related tax effects


	(In Thousands)
	2012			2011			2010
Net unrealized gain (loss) on available-for-sale securities	$	417		$	9,357		$	(2,037	)
Reclassification adjustment for gain on sale of available-for-sale securities		(852	)		(504	)		(956	)

Net unrealized gains (losses)		(435	)		8,853			(2,993	)
Tax effect		(147	)		3,010			(1,017	)

Other comprehensive income (loss)	$	(288	)	$	5,843		$	(1,976	)

Business Combination & Asset Purchase (Tables)

12 Months Ended

Dec. 31, 2012

Business Combination & Asset Purchase [Abstract]

Estimated values of assets acquired and liabilities assumed


($ in Thousands)
Cash	$	114
Loans, Net of Discount		13,792
Accrued Interest on Loans		64
Premises and Equipment		1,803
Core Deposit Intangible Asset		1,087
Other Assets		11

Total Assets Acquired	$	16,871

Deposits	$	27,749
Accrued Interest on Deposits		13
Other Liabilities		10

Total Liabilities Assumed	$	27,772

Net Liabilities Assumed	$	(10,901	)

Amortization expense of core deposit intangible assets


	(In Thousands)
	Knisley		Hicksville		Total
2013	$	157	$	156	$	313
2014		157		156		313
2015		—		155		155
2016		—		155		155
2017		—		77		77
Thereafter		—		—		—

Total	$	314	$	699	$	1,013

Securities (Tables)

12 Months Ended

Dec. 31, 2012

Securities [Abstract]

Amortized cost and fair value of securities with gross unrealized gains and losses


	(In Thousands)
	2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	10,604	$	—	$	(36	)	$	10,568
U.S. Government agency		216,466		3,905		(171	)		220,200
Mortgage-backed securities		51,581		1,425		—			53,006
State and local governments		68,022		4,129		(20	)		72,131

Total available-for-sale securities	$	346,673	$	9,459	$	(227	)	$	355,905


	(In Thousands)
	2011
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	26,050	$	641	$	—		$	26,691
U.S. Government agency		174,545		3,270		(18	)		177,797
Mortgage-backed securities		54,113		1,318		(18	)		55,413
State and local governments		63,143		4,476		(1	)		67,618

Total available-for-sale securities	$	317,851	$	9,705	$	(37	)	$	327,519

Gross unrealized losses, aggregated by investment category and length of time


	2012
	(In Thousands)					(In Thousands)
	Less Than Twelve Months					Twelve Months & Over
	Gross					Gross
	Unrealized			Fair		Unrealized		Fair
	Losses			Value		Losses		Value
U.S. Treasury	$	(36	)	$	10,568	$	—	$	—
U.S. Government agency		(171	)		33,034		—		—
Mortgage-backed securities		—			—		—		—
State and local governments		(20	)		2,903		—		—

Total available-for-sales securities	$	(227	)	$	46,505	$	—	$	—


	2011
	(In Thousands)					(In Thousands)
	Less Than Twelve Months					Twelve Months & Over
	Gross					Gross
	Unrealized			Fair		Unrealized		Fair
	Losses			Value		Losses		Value
U.S. Treasury	$	—		$	—	$	—	$	—
U.S. Government agency		(18	)		12,192		—		—
Mortgage-backed securities		(18	)		—		—		—
State and local governments		(1	)		652		—		—

Total available-for-sales securities	$	(37	)	$	12,844	$	—	$	—

Gross realized gains and losses


	(In Thousands)
	2012		2011		2010
Gross realized gains	$	852	$	504	$	956
Gross realized losses		—		—		—

Net realized gains	$	852	$	504	$	956

Tax expense related to net realized gains	$	290	$	171	$	325

Amortized cost and fair value of debt securities, by contractual maturity


	(In Thousands)
	Amortized
	Cost		Fair Value
One year or less	$	43,350	$	43,633
After one year through five years		152,321		156,763
After five years through ten years		90,278		91,978
After ten years		9,143		10,525

Total	$	295,092	$	302,899
Mortgage-backed securities		51,581		53,006

Total	$	346,673	$	355,905

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-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.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-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.

+ Details

Loans (Tables)

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Loans:


	(In Thousands)
Loans:	2012			2011
Commercial real estate	$	199,999		$	198,266
Agricultural real estate		40,143			31,993
Consumer real estate		80,287			84,477
Commercial and industrial		101,624			114,497
Agricultural		57,770			52,598
Consumer		20,413			23,375
Industrial Development Bonds		1,299			1,196

	$	501,535		$	506,402
Less: Net deferred loan fees and costs		(133	)		(187	)

		501,402			506,215
Less: Allowance for loan losses		(5,224	)		(5,091	)

Loans—Net	$	496,178		$	501,124

Maturity schedule by major category of loans


	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years		Total
Commercial Real Estate	$	25,448	$	103,857	$	70,694	$	199,999
Agricultural Real Estate		3,337		10,136		26,670		40,143
Consumer Real Estate		9,535		14,424		56,328		80,287
Commercial and industrial		58,744		39,716		3,164		101,624
Agricultural		37,153		18,116		2,501		57,770
Consumer		5,345		13,238		1,830		20,413
Industrial Development Bonds		417		490		392		1,299

	$	139,979	$	199,977	$	161,579	$	501,535

Distribution of fixed rate loans and variable rate loans by major loan category


	(In Thousands)
	Fixed		Variable
	Rate		Rate
Commercial Real Estate	$	118,367	$	81,632
Agricultural Real Estate		28,861		11,282
Consumer Real Estate		65,916		14,371
Commercial and industrial loans		79,493		22,131
Agricultural		53,429		4,341
Consumer, Master Card and Overdrafts		15,941		4,472
Industrial Development Bonds		1,299		—

Contractual aging of the recorded investment in past due loans by portfolio segment of loans


	(In Thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
2012
Residential	$	575	$	—	$	648	$	1,223	$	79,064	$	80,287	$	—
Ag RE		—		—		—		—		40,143		40,143		—
Ag		11		—		—		11		57,759		57,770		—
Commercial Real Estate		—		—		877		877		199,122		199,999		—
Commercial and Industrial		78		—		2,567		2,645		100,278		102,923		—
Consumer		51		1		—		52		20,228		20,280		1

Total	$	715	$	1	$	4,092	$	4,808	$	496,594	$	501,402	$	1

2011
Residential	$	799	$	248	$	441	$	1,488	$	82,989	$	84,477	$	—
Ag RE		—		—		—		—		31,993		31,993		—
Ag		7		—		—		7		52,591		52,598		—
Commercial Real Estate		—		611		927		1,538		196,728		198,266		—
Commercial and Industrial		77		—		421		498		115,195		115,693		—
Consumer		24		—		—		24		23,164		23,188		—

Total	$	907	$	859	$	1,789	$	3,555	$	502,660	$	506,215	$	—

Recorded investment in nonaccrual loans by portfolio segment of loans


	(In Thousands)
	2012		2011
Consumer real estate	$	964	$	700
Agricultural real estate		—		—
Agriculture		—		7
Commercial real estate		877		1,003
Commercial		2,987		421
Consumer		—		—

Total	$	4,828	$	2,131

Risk category of loans by portfolio segment


	(In Thousands)
	Agriculture Real Estate				Agriculture				Commercial Real Estate				Commercial				Industrial Development Bonds
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
1-2	$	2,719	$	1,058	$	5,022	$	1,500	$	4,046	$	3,545	$	750	$	710	$	97	$	188
3		15,111		12,613		23,525		25,019		42,467		23,283		21,750		22,506		859		622
4		21,481		17,256		29,188		26,008		137,537		159,959		71,228		82,745		343		386
5		794		383		35		57		8,984		6,098		3,385		3,897		—		—
6		38		683		—		7		6,295		4,677		2,202		4,219		—		—
7		—		—		—		7		670		704		2,309		420		—		—
8		—		—		—		—		—		—		—		—		—		—

Total	$	40,143	$	31,993	$	57,770	$	52,598	$	199,999	$	198,266	$	101,624	$	114,497	$	1,299	$	1,196

Recorded investment in those classes based on payment activity and assigned risk grading


	(In Thousands)
	Consumer Real Estate
	2012		2011
Grade
Pass	$	79,766	$	83,954
Special mention (5)		—		—
Substandard (6)		110		240
Doubtful (7)		411		283

Total	$	80,287	$	84,477


	(In Thousands)
	Consumer—Credit Card				Consumer—Other
	2012		2011		2012		2011
Performing	$	3,470	$	3,607	$	16,775	$	19,531
Nonperforming		3		—		32		50

Total	$	3,473	$	3,607	$	16,807	$	19,581

Schedule of Impaired loans


	(In Thousands)
	2012		2011
Impaired loans without a valuation allowance	$	730	$	446
Impaired loans with a valuation allowance		3,861		1,408

Total impaired loans	$	4,591	$	1,854

Valuation allowance related to impaired loans	$	865	$	175

Total non-accrual loans	$	4,828	$	2,131

Total loans past-due ninety days or more and still accruing	$	1	$	—


	(In Thousands)
	2012		2011		2010
Average investment in impaired loans	$	3,436	$	5,466	$	10,136

Interest income recognized on impaired loans	$	26	$	1,230	$	61

Interest income recognized on a cash basis on impaired loans	$	21	$	1,175	$	41

Impaired loans classified as troubled debt restructured

Pre-

Post-

Pre-

Post-

Number of

Modification

Number of

Modification

Contracts

Outstanding

Contracts

Outstanding

December 31, 2012

Modified in the

Recorded

December 31, 2012

Modified in the

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Troubled Debt Restructurings

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

1,937

1,921

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

420

Number of

Contracts

Troubled Debt Restructurings

Modified in the

Recorded

Troubled Debt Restructurings

Modified in the

Recorded

That Subsequently Defaulted

Last 3 Months

Investment

That Subsequently Defaulted

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

—

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

Pre-

Post-

Pre-

Post-

Number of

Modification

Number of

Modification

Contracts

Outstanding

Contracts

Outstanding

December 31, 2011

Modified in the

Recorded

December 31, 2011

Modified in the

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Troubled Debt Restructurings

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

923

702

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

Number of

Contracts

Troubled Debt Restructurings

Modified in the

Recorded

Troubled Debt Restructurings

Modified in the

Recorded

That Subsequently Defaulted

Last 3 Months

Investment

That Subsequently Defaulted

Last 12 Months

Investment

Commercial Real Estate

—

Commercial Real Estate

207

Ag Real Estate

—

Ag Real Estate

—

Commercial and Industrial

—

Commercial and Industrial

—

Loans individually evaluated for impairment by portfolio segment of loans


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized
2012
With no related allowance recorded:
Residential	$	236	$	236	$	—	$	269	$	12
Agriculture real estate		—		—		—				—
Agriculture		—		—		—		—		—
Commercial real estate		207		384		—		206		—
Commercial		287		334		—		212		—
Consumer		—		—		—		—		—
With a specific allowance recorded:
Residential		411		512		70		454		1
Agriculture real estate		—		—		—		—		—
Agriculture		—		—		—		—		—
Commercial real estate		670		916		25		657		—
Commercial		2,780		2,780		770		1,636		13
Consumer		—		—		—		2		—

Totals:
Residential	$	647	$	748	$	70	$	723	$	13

Agriculture real estate	$	—	$	—	$	—	$	—	$	—

Agriculture	$	—	$	—	$	—	$	—	$	—

Commercial real estate	$	877	$	1,300	$	25	$	863	$	—

Commercial	$	3,067	$	3,114	$	770	$	1,848	$	13

Consumer	$	—	$	—	$	—	$	2	$	—


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized
2011
With no related allowance recorded:
Residential	$	239	$	239	$	—	$	195	$	36
Agriculture real estate		—		—		—		180		15
Agriculture		—		—		—		2,683		1,156
Commercial real estate		207		384		—		1,357		22
Commercial		—		—		—		55		1
Consumer		—		—		—		1		—
With a specific allowance recorded:
Residential		283		308		54		369		—
Agriculture real estate		—		—		—		—		—
Agriculture		—		—		—		—		—
Commercial real estate		704		854		29		188		—
Commercial		420		420		91		438		—
Consumer		—		—		—		—		—

Totals:
Residential	$	522	$	547	$	54	$	564	$	36

Agriculture real estate	$	—	$	—	$	—	$	180	$	15

Agriculture	$	—	$	—	$	—	$	2,683	$	1,156

Commercial real estate	$	911	$	1,238	$	29	$	1,545	$	22

Commercial	$	420	$	420	$	91	$	493	$	1

Consumer	$	—	$	—	$	—	$	1	$	—

Analysis of the allowance for credit losses


	(In Thousands)
	2012			2011			2010
Allowance for Loan Losses
Balance at beginning of year	$	5,091		$	5,706		$	6,008
Provision for loan loss		738			1,715			5,325
Loans charged off		(891	)		(2,681	)		(6,422	)
Recoveries		286			351			795

Balance at ending of year	$	5,224		$	5,091		$	5,706

Allowance for Unfunded Loan Commitments & Letters of Credit	$	162		$	130		$	153

Total Allowance for Credit Losses	$	5,386		$	5,221		$	5,859

Contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs


	(In Thousands)
	Consumer Real Estate			Agriculture Real Estate			Agriculture			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
2012
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	261		$	140		$	266		$	2,088		$	1,947		$	315		$	130	$	74	$	5,221
Charge Offs		(246	)		—			(6	)		(98	)		(47	)		(494	)		—		—		(891	)
Recoveries		61			—			12			7			30			176			—		—		286
Provision		292			(27	)		18			(248	)		253			271			—		179		738
Other Non-interest expense related to unfunded		—			—			—			—			—			—			32		—		32

Ending Balance	$	368		$	113		$	290		$	1,749		$	2,183		$	268		$	162	$	253	$	5,386

Ending balance: individually evaluated for impairment	$	70		$	—		$	—		$	25		$	770		$	—		$	—	$	—	$	865

Ending balance: collectively evaluated for impairment	$	298		$	113		$	290		$	1,724		$	1,413		$	268		$	162	$	253	$	4,521

Ending balance: loans acquired with deteriorated credit quality	$	1		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	1

FINANCING RECEIVABLES:
Ending balance	$	80,287		$	40,143		$	57,770		$	199,999		$	102,923		$	20,280		$	—	$	—	$	501,402

Ending balance: individually evaluated for impairment	$	648		$	—		$	—		$	877		$	3,066		$	—		$	—	$	—	$	4,591

Ending balance: collectively evaluated for impairment	$	79,639		$	40,143		$	57,770		$	199,122		$	99,857		$	20,280		$	—	$	—	$	496,811

Ending balance: loans acquired with deteriorated credit quality	$	548		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	548


	(In Thousands)
	Consumer Real Estate			Agriculture Real Estate		Agriculture			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated			Total
2011
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	258		$	122	$	327		$	1,868		$	2,354		$	380		$	153		$	397		$	5,859
Charge Offs		(422	)		—		(24	)		(360	)		(1,500	)		(375	)		—			—			(2,681	)
Recoveries		61			—		67			32			19			172			—			—			351
Provision		364			18		(104	)		548			1,074			138			—			(323	)		1,715
Other Non-interest expense related to unfunded		—			—		—			—			—			—			(23	)		—			(23	)

Ending Balance	$	261		$	140	$	266		$	2,088		$	1,947		$	315		$	130		$	74		$	5,221

Ending balance: individually evaluated for impairment	$	55		$	—	$	—		$	29		$	91		$	—		$	—		$	—		$	175

Ending balance: collectively evaluated for impairment	$	206		$	140	$	266		$	2,059		$	1,856		$	315		$	130		$	74		$	5,046

Ending balance: loans acquired with deteriorated credit quality	$	2		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	2

FINANCING RECEIVABLES:
Ending balance	$	84,477		$	31,993	$	52,598		$	198,266		$	115,693		$	23,188		$	—		$	—		$	506,215

Ending balance: individually evaluated for impairment	$	523		$	—	$	—		$	911		$	420		$	—		$	—		$	—		$	1,854

Ending balance: collectively evaluated for impairment	$	83,954		$	31,993	$	52,598		$	197,355		$	115,273		$	23,188		$	—		$	—		$	504,361

Ending balance: loans acquired with deteriorated credit quality	$	856		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	856

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Premises and Equipment [Abstract]

Major categories of banking premises and equipment and accumulated depreciation


	(In Thousands)
	2012			2011
Land	$	4,337		$	3,635
Buildings (useful life 15-39 years)		19,130			18,979
Construction in Progress		274			—
Furnishings (useful life 3-15 years)		10,361			9,994

		34,102			32,608
Less: Accumulated depreciation		(16,503	)		(15,624	)

Premises and Equipment (Net)	$	17,599		$	16,984

Servicing (Tables)

12 Months Ended

Dec. 31, 2012

Servicing [Abstract]

Summary of mortgage servicing rights capitalized and amortized


	(In Thousands)
	2012			2011
Beginning Year	$	2,071		$	2,178
Capitalized Additions		760			391
Amortization		(768	)		(498	)
Valuation Allowance		—			—

End of Year	$	2,063		$	2,071

- Definition

Tabular disclosure of the activity in the balance of servicing assets subsequently measured at amortized value (including a description of where changes in carrying value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (through purchases of servicing assets and servicing assets that result from transfers of financial assets), disposals, amortization, application of valuation allowances, other-than-temporary impairments, and other changes that affect the balance along with a description of those changes.

+ References + Details

Deposits (Tables)

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Time deposits


	(In Thousands)
	2012		2011
Time deposits under $100,000	$	147,732	$	163,726
Time deposits of $100,000 or more		121,775		127,900

	$	269,507	$	291,626

Scheduled maturities for time deposits


	(In Thousands)
2012	$	132,584
2013		74,298
2014		38,750
2015		15,661
2016		6,492
thereafter		1,722

	$	269,507

Securities Sold Under Agreement to Repurchase (Tables)

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Daily securities under agreement to repurchase


	Daily Securities Sold Under Agreement to Repurchase
	Amount		Weighted			Maximum Amount		Approximate		Approximate
	Outstanding		Average			Borrowings		Average		Weighted Average
	at End		Rate End			Outstanding		Outstanding in		Interest Rate
	of Period (000’s)		of Period			Month End (000’s)		Period (000’s)		For the Period
2012	$	35,173		0.10	%	$	41,876	$	38,725		0.18	%
2011	$	38,209		0.15	%	$	42,154	$	36,910		0.30	%
2010	$	37,191		0.36	%	$	37,501	$	34,046		0.36	%

	Term CD’s Sold Under Agreement to Repurchase
	Amount		Weighted			Maximum Amount		Approximate		Approximate
	Outstanding		Average			Borrowings		Average		Weighted Average
	at End		Rate End			Outstanding		Outstanding in		Interest Rate
	of Period (000’s)		of Period			Month End (000’s)		Period (000’s)		For the Period
2012	$	16,139		1.25	%	$	16,139	$	14,184		1.22	%
2011	$	14,231		1.28	%	$	15,095	$	14,606		1.25	%
2010	$	14,050		1.28	%	$	14,050	$	12,493		1.24	%

Federal Home Loan Bank Advances (Tables)

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Future obligations of the advances


	(In Thousands)
2013	$	7,100
2014		4,500

	$	11,600

- Definition

Tabular disclosure of advances by federal home loan bank by branch.

+ References + Details

Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Federal Income Taxes [Abstract]

Components of income tax expense (benefit)


	(In Thousands)
	2012			2011			2010
Current:
Federal	$	4,030		$	3,058		$	2,172

Deferred:
Federal		(126	)		(165	)		210

	$	3,904		$	2,893		$	2,382

Reconciliation of the statutory federal income tax rate to the effective tax rate


	(In Thousands)
	2012			2011			2010
Income tax at statutory rates	$	4,655		$	3,878		$	3,183
Increase(decrease) resulting from:
Tax exempt interest		(677	)		(689	)		(744	)

Change in prior estimates and other		(74	)		(296	)		(57	)

	$	3,904		$	2,893		$	2,382

Components of Deferred tax assets and liabilities


	(In Thousands)
	2012			2011
Deferred Tax Assets:
Allowance for loan losses	$	1,776		$	1,731
Other		766			860

Total deferred tax assets		2,542			2,591
Deferred Tax Liabilities:
Accreted discounts on bonds		55			62
FHLB stock dividends		859			859
Mortgage servicing rights		701			704
Other		1,094			1,007
Net unrealized gain on available-for-sale securities		3,139			3,287

Total deferred tax liabilities		5,848			5,919

Net Deferred Tax Liability	$	(3,306	)	$	(3,328	)

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

Activity of restricted stock awards


	2012			2011			2010
Beginning of period		29,715			28,925			27,775
Granted		11,000			11,000			10,150
Vested		(8,910	)		(9,432	)		(7,425	)
Forfeited		(1,135	)		(778	)		(1,575	)

Nonvested, end of period		30,670			29,715			28,925

Off Balance Sheet Activities (Tables)

12 Months Ended

Dec. 31, 2012

Off Balance Sheet Activities [Abstract]

Outstanding financial instruments whose contract amounts represent credit risk


	(In Thousands)
	2012		2011
Commitments to extend credit	$	191,790	$	146,598
Credit card arrangements		14,451		14,152
Standby letters of credit		1,470		1,038

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined) which are not recognized in the financial statements (off-balance sheet) because they fail to meet some other criterion for recognition.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3
-Subparagraph a
-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.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a
-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.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 7
-Subparagraph a
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 7, 10
-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.

+ Details

Minimum Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2012

Deposits, Securities Sold Under Agreement to Repurchase, Federal Home Loan Bank Advances and Minimum Regulatory Capital Requirements [Abstract]

Summary of Bank's actual and required capital amounts and ratios


											To Be Well Capitalized
											Under the Prompt
						For Capital					Corrective Action
	Actual					Adequacy Purposes					Provisions
	(000’s)					(000’s)					(000’s)
As of December 31, 2012	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Risk-Based Capital (to Risk Weighted Assets) Consolidated	$	104,446		17.35	%	$	48,167		8.00	%		N/A		N/A
Farmers & Merchants State Bank		88,746		14.74	%		48,167		8.00	%	$	60,208		10.00	%
Tier 1 Capital (to Risk Weighted Assets) Consolidated		99,059		16.45	%		24,084		4.00	%		N/A		N/A
Farmers & Merchants State Bank		83,359		13.85	%		24,083		4.00	%		36,125		6.00	%
Tier 1 Capital (to Adjusted Total Assets) Consolidated		99,059		10.67	%		37,152		4.00	%		N/A		N/A
Farmers & Merchants State Bank		83,359		8.92	%		37,368		4.00	%		46,710		5.00	%


											To Be Well Capitalized
											Under the Prompt
						For Capital					Corrective Action
	Actual					Adequacy Purposes					Provisions
	(000’s)					(000’s)					(000’s)
As of December 31, 2011	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Risk-Based Capital (to Risk Weighted Assets) Consolidated	$	98,531		16.54	%	$	47,657		8.00	%		N/A		N/A
Farmers & Merchants State Bank		85,618		14.37	%		47,656		8.00	%	$	59,570		10.00	%
Tier 1 Capital (to Risk Weighted Assets) Consolidated		93,310		15.66	%		23,829		4.00	%		N/A		N/A
Farmers & Merchants State Bank		77,397		12.99	%		23,828		4.00	%		35,742		6.00	%
Tier 1 Capital (to Adjusted Total Assets) Consolidated		93,310		10.25	%		36,398		4.00	%		N/A		N/A
Farmers & Merchants State Bank		77,397		8.48	%		36,509		4.00	%		45,636		5.00	%

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Estimated fair values and related carrying or notional amounts


	(In Thousands)
	December 2012										December 2011
	Carrying		Fair								Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3		Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	44,092	$	44,092	$	44,092	$	—	$	—	$	43,143	$	43,143	$	43,143	$	—	$	—
Securities—available for sale		355,905		355,905		10,568		328,929		16,408		327,519		327,519		26,691		287,127		13,701
Other Securities		4,365		4,365		—		—		4,365		4,365		4,365		—		—		4,365
Loans, net		496,178		502,125		—		—		502,125		501,124		504,629		—		—		504,629
Interest receivable		3,603		3,603		—		—		3,603		3,218		3,218		—		—		3,218

Total Assets	$	904,143	$	910,090	$	54,660	$	328,929	$	526,501	$	876,151	$	882,874	$	69,834	$	287,127	$	525,913

Financial Liabilities:
Interest bearing Deposits	$	389,779	$	390,066	$	—	$	—	$	390,066	$	363,189	$	363,727	$	—	$	—	$	363,727
Non-interest bearing Deposits		103,966		104,529		—		104,529		—		84,567		85,517		—		85,517		—
Time Deposits		269,507		272,591		—		—		272,591		291,626		292,731		—		—		292,731

Total Deposits	$	763,252	$	767,186	$	—	$	104,529	$	662,657	$	739,382	$	741,975	$	—	$	85,517	$	656,458
Short-term debt		51,312		51,312		—		—		51,312		52,440		52,440		—		—		52,440
Federal Home Loan Bank advances		11,600		11,012		—		—		11,012		16,662		16,638		—		—		16,638
Interest payable		288		288		—		—		288		342		342		—		—		342
Dividends payable		931		931		—		931		—		890		890		—		890		—

Total Liabilities	$	827,383	$	830,729	$	—	$	105,460	$	725,269	$	809,716	$	812,285	$	—	$	86,407	$	725,878

Financial assets measured at fair value on a recurring basis


($ in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
December 31, 2012
Assets-(Securities Available for Sale)
U.S. Treasury	$	10,568	$	—	$	—
U.S. Government agency		—		220,200		—
Mortgage-backed securities		—		53,006		—
State and local governments		—		55,723		16,408

Total Securities Available for Sale	$	10,568	$	328,929	$	16,408


($ in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Observable Inputs (Level 3)
December 31, 2011
Assets-(Securities Available for Sale)
U.S. Treasury	$	26,691	$	—	$	—
U.S. Government agency		—		177,797		—
Mortgage-backed securities		—		55,413		—
State and local governments		—		53,917		13,701

Total Securities Available for Sale	$	26,691	$	287,127	$	13,701

Impaired loans and other real estate


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012
($ in Thousands)	Balance at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Change in fair value for twelve-month period ended Dec. 31, 2012
Impaired loans	$	4,591	$	—	$	—	$	4,591	$	(76	)
Other real estate owned—residential mortgages		783		—		—		783		(62	)
Other real estate owned—commercial		1,526		—		—		1,526		(214	)

Total change in fair value									$	(352	)


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2011
($ in Thousands)	Balance at December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Change in fair value for twelve-month period ended Dec. 31, 2011
Impaired loans	$	1,854	$	—	$	—	$	1,854	$	(150	)
Other real estate owned—residential mortgages		958		—		—		958		(145	)
Other real estate owned—commercial		2,614		—		—		2,614		(633	)

Total change in fair value									$	(928	)

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Financial Statements of Parent Company [Abstract]

Balance Sheet

Balance Sheet


	(In Thousands)
	2012		2011
Assets
Cash	$	1,173	$	983
Related party receivables:
Dividends & Accounts receivable from subsidiary		954		1,214
Note receivable from Bank subsidiary		15,000		15,000
Investment in subsidiary		94,540		89,178

Total Assets	$	111,667	$	106,375

Liabilities
Accrued expenses	$	497	$	394
Dividends payable		931		890

		1,428		1,284

Stockholders’ Equity
		110,239		105,091

Total Liabilities and Stockholders’ Equity	$	111,667	$	106,375

Statement of Income

Statement of Income


	(In Thousands)
	2012		2011		2010
Income
Dividends from subsidiary	$	3,870	$	4,000	$	4,205
Interest		713		713		713

Total Income		4,583		4,713		4,918

Operating Expenses		305		499		472

Income Before Income Taxes and Equity in Undistributed Earnings (Distributions in excess of earnings) and Subsidiary		4,278		4,214		4,446
Income Taxes		139		72		82

		4,139		4,142		4,364
Equity in undistributed earnings (Distributions in excess of earnings) of subsidiary		5,649		4,372		2,617

Net Income	$	9,788	$	8,514	$	6,981

Statements of Cash Flows

Statements of Cash Flows


	(In Thousands)
	2012			2011			2010
Cash Flows from Operating Activities
Net income	$	9,788		$	8,514		$	6,981
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Equity in undistributed net income (Distributions in excess earnings) of subsidiaries		(5,649	)		(4,372	)		(2,617	)
Changes in Assets and Liabilities:
Dividends receivable		260			(111	)		(42	)
Other Liabilities		282			231			101

Net Cash Provided by
Operating Activities		4,681			4,262			4,423
Cash Flows from Investing Activities
Return of Capital from Investment in Subsidiary		—			—			—
Cash Flows from Financing Activities
Payment of dividends		(3,597	)		(3,567	)		(3,402	)
Purchase of Treasury Stock		(894	)		(310	)		(894	)

Net Change in Cash and
Cash Equivalents		190			385			127
Cash and Cash Equivalents
Beginning of year		983			598			471

Cash and Cash Equivalents
End of year	$	1,173		$	983		$	598

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data [Abstract]

Summary of Quarterly Financial Data


	(000’s omitted except per share data) Quarter Ended in 2012
	Mar 31			June 30			Sep 30			Dec 31
Summary of Income:
Interest income	$	8,476		$	8,525		$	8,278		$	7,994
Interest expense		1,624			1,653			1,532			1,441

Net Interest Income		6,852			6,872			6,746			6,553
Provision for loan loss		128			78			236			296

Net interest income after provision of loan loss		6,724			6,794			6,510			6,257
Other income (expense)		(3,510	)		(3,236	)		(3,122	)		(2,725	)

Net income before income taxes		3,214			3,558			3,388			3,532
Income taxes		930			1,020			947			1,007

Net income	$	2,284		$	2,538		$	2,441		$	2,525

Earnings per Common Share	$	0.48		$	0.54		$	0.52		$	0.54

Average common shares outstanding		4,714,197			4,695,151			4,685,879			4,688,467


	Quarter Ended in 2011
	Mar 31			June 30			Sep 30			Dec 31
Summary of Income:
Interest income	$	9,655		$	8,844		$	8,855		$	9,306
Interest expense		2,221			2,109			1,991			1,835

Net Interest Income		7,434			6,735			6,864			7,471
Provision for loan loss		772			657			93			193

Net interest income after provision for loan loss		6,662			6,078			6,771			7,278
Other income (expense)		(4,235	)		(3,885	)		(3,971	)		(3,291	)

Net income before income taxes		2,427			2,193			2,800			3,987
Income taxes		446			626			719			1,102

Net income	$	1,981		$	1,567		$	2,081		$	2,885

Earnings per common share	$	0.42		$	0.34		$	0.44		$	0.62

Average common shares outstanding		4,693,080			4,686,008			4,687,169			4,689,883

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Components of other comprehensive income and related tax effects
Net unrealized gain (loss) on available-for-sale securities	$ 417	$ 9,357	$ (2,037)
Reclassification adjustment for gain on sale of available-for-sale securities	(852)	(504)	(956)
Net unrealized gains (losses)	(435)	8,853	(2,993)
Tax effect	(147)	3,010	(1,017)
Other comprehensive income (loss)	$ (288)	$ 5,843	$ (1,976)

- Definition

Before tax amount of the appreciation (loss) in value of unsold available-for-sale securities attributable to the parent entity. Excludes amounts related to other than temporary impairment (OTTI) losses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-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.

+ Details

- Definition

Net of tax amount of the appreciation (loss) in value of unsold available-for-sale securities attributable to the parent entity. Excludes amounts related to other than temporary impairment (OTTI) losses.

+ References

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

- Definition

Tax effect of the appreciation (loss) in value of unsold available-for-sale securities attributable to the parent entity. Excludes amounts related to other than temporary impairment (OTTI) losses.

+ References

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

- Definition

Before tax amount of the income statement impact of the reclassification adjustment for unrealized gain (loss) realized upon the sale of available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6522872

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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 18, 19
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+ Details

- Definition

Before tax and reclassification adjustments amount of unrealized holding gain (loss) and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 10A
-Subparagraph (e)
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Maturity period of cash equivalents	3 months
Period for federal funds purchased and sold	1 day
Average aggregate reserve	$ 4,900	$ 4,200
Days to charged consumer loans to the value of the collateral	120 days
Maximum time for re-evaluation (in months)	12 months
Re-evaluation period for real estate	2 years
Excess fair value of goodwill amount		$ 32,000
Percentage of carrying value for excess fair value		36.19%
Factor multiplication of value of goodwill		8 times
Loan Non-Accrual Classification Period	90 days
Other real estate owned	$ 2,300	$ 3,600
Knisely [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Goodwill Impairment	$ 0
Restricted Stock [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Shares of anti-dilutive restricted stock awards	30,670	29,715	28,925

Business Combination & Asset Purchase (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Jul. 09, 2010
Estimated values of assets acquired and liabilities assumed
Cash			$ 114
Loans, Net of Discount			13,792
Accrued Interest on Loans			64
Premises and Equipment			1,803
Core Deposit Intangible Asset			1,087
Other Assets	$ 20,074	$ 20,141	11
Total Assets Acquired			16,871
Deposits	$ 763,252	$ 739,382	27,749
Accrued Interest on Deposits			13
Other Liabilities			10
Total Liabilities Assumed			27,772
Net Liabilities Assumed			$ (10,901)

Business Combination & Asset Purchase (Details 1) $ in Thousands	Dec. 31, 2012 USD ($)
Amortization expense of core deposit intangible assets
2013	$ 313
2014	313
2015	155
2016	155
2017	77
Thereafter
Total	1,013
Knisely [Member]
Amortization expense of core deposit intangible assets
2013	157
2014	157
Thereafter
Total	314
Hicksville [Member]
Amortization expense of core deposit intangible assets
2013	156
2014	156
2015	155
2016	155
2017	77
Thereafter
Total	$ 699

Business Combination & Asset Purchase (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2007	Jul. 09, 2010
Business Combination & Asset Purchase (Textual) [Abstract]
Deposits at close included in purchase					$ 28,000
Loans included in purchase					$ 14,000
Number of years amortized on straight line basis				7 years
Number of years amortized over an estimated remaining economic useful life of deposits	7 years
Amortization expense	$ 312	$ 312	$ 235
Knisely [Member]
Business Combination & Asset Purchase (Additional Textual) [Abstract]
Recognition of core deposit intangible asset with acquired purchase				$ 1,100
Hicksville [Member]
Business Combination & Asset Purchase (Additional Textual) [Abstract]
Recognition of core deposit intangible asset with acquired purchase	$ 1,090

Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Available-for-Sale:
Amortized Cost	$ 346,673	$ 317,851
Gross Unrealized Gains	9,459	9,705
Gross Unrealized Losses	(227)	(37)
Total available-for-sale securities	355,905	327,519
U.S. Treasury [Member]
Available-for-Sale:
Amortized Cost	10,604	26,050
Gross Unrealized Gains		641
Gross Unrealized Losses	(36)
Total available-for-sale securities	10,568	26,691
U.S. Government agency [Member]
Available-for-Sale:
Amortized Cost	216,466	174,545
Gross Unrealized Gains	3,905	3,270
Gross Unrealized Losses	(171)	(18)
Total available-for-sale securities	220,200	177,797
Mortgage-backed securities [Member]
Available-for-Sale:
Amortized Cost	51,581	54,113
Gross Unrealized Gains	1,425	1,318
Gross Unrealized Losses		(18)
Total available-for-sale securities	53,006	55,413
State and local governments [Member]
Available-for-Sale:
Amortized Cost	68,022	63,143
Gross Unrealized Gains	4,129	4,476
Gross Unrealized Losses	(20)	(1)
Total available-for-sale securities	$ 72,131	$ 67,618

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Securities (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Gross unrealized losses, aggregated by investment category and length of time
Gross unrealized losses, less than twelve months	$ (227)	$ (37)
Fair value, less than twelve months	46,505	12,844
Gross unrealized losses, twelve months & over
Fair value, twelve months & over
U.S. Treasury [Member]
Gross unrealized losses, aggregated by investment category and length of time
Gross unrealized losses, less than twelve months	(36)
Fair value, less than twelve months	10,568
Gross unrealized losses, twelve months & over
Fair value, twelve months & over
U.S. Government agency [Member]
Gross unrealized losses, aggregated by investment category and length of time
Gross unrealized losses, less than twelve months	(171)	(18)
Fair value, less than twelve months	33,034	12,192
Gross unrealized losses, twelve months & over
Fair value, twelve months & over
Mortgage-backed securities [Member]
Gross unrealized losses, aggregated by investment category and length of time
Gross unrealized losses, less than twelve months		(18)
Fair value, less than twelve months
Gross unrealized losses, twelve months & over
Fair value, twelve months & over
State and local governments [Member]
Gross unrealized losses, aggregated by investment category and length of time
Gross unrealized losses, less than twelve months	(20)	(1)
Fair value, less than twelve months	2,903	652
Gross unrealized losses, twelve months & over
Fair value, twelve months & over

Securities (Details 2) - USD ($) $ in Thousands	12 Months Ended
Securities (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Gross realized gains and losses
Gross realized gains	$ 852	$ 504	$ 956
Gross realized losses
Net realized gains	852	504	956
Tax expense related to net realized gains	$ 290	$ 171	$ 325

Securities (Details 3) $ in Thousands	Dec. 31, 2012 USD ($)
Amortized cost and fair value of debt securities, by contractual maturity
Amortized Cost, One year or less	$ 43,350
Amortized Cost, After one year through five years	152,321
Amortized Cost, After five years through ten years	90,278
Amortized Cost, After ten years	9,143
Amortized Cost, Total	295,092
Amortized Cost, Mortgage-backed securities	51,581
Total, amortized cost	346,673
Fair Value, One year or less	43,633
Fair Value, After one year through five years	156,763
Fair Value, After five years through ten years	91,978
Fair Value, After ten years	10,525
Fair Value, Total	302,899
Fair Value, Mortgage-backed securities	53,006
Total, fair Value	$ 355,905

Securities (Details Textual) - USD ($) $ in Millions	12 Months Ended
Securities (Details Textual) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Securities (Textual) [Abstract]
Underwater security	10 years
Loss position existed	3 years
Realized gains and losses on sales	$ 60.5	$ 30.3	$ 55.7
Investments with a carrying value and fair value	$ 196.9	$ 194.7

Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Loans:
Loans - Gross	$ 501,535	$ 506,402
Less: Net deferred loan fees and costs	(133)	(187)
Loans after net deferred loan fees and costs	501,402	506,215
Less: Allowance for loan losses	(5,224)	(5,091)	$ (5,706)	$ (6,008)
Loans - Net	496,178	501,124
Commercial Real Estate [Member]
Loans:
Loans - Gross	199,999	198,266
Agricultural Real Estate [Member]
Loans:
Loans - Gross	40,143	31,993
Consumer Real Estate [Member]
Loans:
Loans - Gross	80,287	84,477
Commercial and Industrial [Member]
Loans:
Loans - Gross	101,624	114,497
Agricultural [Member]
Loans:
Loans - Gross	57,770	52,598
Consumer [Member]
Loans:
Loans - Gross	20,413	23,375
Industrial Development Bonds [Member]
Loans:
Loans - Gross	$ 1,299	$ 1,196

Loans (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	$ 139,979
Maturity schedule by major category of loans, After One Year Within Five Years	199,977
Maturity schedule by major category of loans, After Five Years	161,579
Maturity schedule by major category of loans, Total	501,535	$ 506,402
Commercial Real Estate [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	25,448
Maturity schedule by major category of loans, After One Year Within Five Years	103,857
Maturity schedule by major category of loans, After Five Years	70,694
Maturity schedule by major category of loans, Total	199,999	198,266
Agricultural Real Estate [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	3,337
Maturity schedule by major category of loans, After One Year Within Five Years	10,136
Maturity schedule by major category of loans, After Five Years	26,670
Maturity schedule by major category of loans, Total	40,143	31,993
Consumer Real Estate [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	9,535
Maturity schedule by major category of loans, After One Year Within Five Years	14,424
Maturity schedule by major category of loans, After Five Years	56,328
Maturity schedule by major category of loans, Total	80,287	84,477
Commercial and Industrial [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	58,744
Maturity schedule by major category of loans, After One Year Within Five Years	39,716
Maturity schedule by major category of loans, After Five Years	3,164
Maturity schedule by major category of loans, Total	101,624	114,497
Agricultural [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	37,153
Maturity schedule by major category of loans, After One Year Within Five Years	18,116
Maturity schedule by major category of loans, After Five Years	2,501
Maturity schedule by major category of loans, Total	57,770	52,598
Consumer [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	5,345
Maturity schedule by major category of loans, After One Year Within Five Years	13,238
Maturity schedule by major category of loans, After Five Years	1,830
Maturity schedule by major category of loans, Total	20,413	23,375
Industrial Development Bonds [Member]
Maturity schedule by major category of loans
Maturity schedule by major category of loans, Within One Year	417
Maturity schedule by major category of loans, After One Year Within Five Years	490
Maturity schedule by major category of loans, After Five Years	392
Maturity schedule by major category of loans, Total	$ 1,299	$ 1,196

Loans (Details 2) $ in Thousands	Dec. 31, 2012 USD ($)
Commercial Real Estate [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	$ 118,367
Distribution of variable rate loans by major loan category, Variable Rate	81,632
Agricultural Real Estate [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	28,861
Distribution of variable rate loans by major loan category, Variable Rate	11,282
Consumer Real Estate [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	65,916
Distribution of variable rate loans by major loan category, Variable Rate	14,371
Commercial and Industrial [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	79,493
Distribution of variable rate loans by major loan category, Variable Rate	22,131
Agricultural [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	53,429
Distribution of variable rate loans by major loan category, Variable Rate	4,341
Consumer, Master Card and Overdrafts [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	15,941
Distribution of variable rate loans by major loan category, Variable Rate	4,472
Industrial Development Bonds [Member]
Distribution of fixed rate loans and variable rate loans by major loan category
Distribution of fixed rate loans by major loan category, Fixed Rate	$ 1,299

Loans (Details 3) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
30-59 Days Past Due	$ 715	$ 907
60-89 Days Past Due	1	859
Greater Than 90 Days	4,092	1,789
Total Past Due	4,808	3,555
Current	496,594	502,660
Total Financing Receivables	501,402	506,215
Recorded Investment greater than 90 Days and Accruing	1
Residential [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
30-59 Days Past Due	575	799
60-89 Days Past Due		248
Greater Than 90 Days	648	441
Total Past Due	1,223	1,488
Current	79,064	82,989
Total Financing Receivables	80,287	84,477
Recorded Investment greater than 90 Days and Accruing
Ag RE [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
Current	40,143	31,993
Total Financing Receivables	40,143	31,993
Recorded Investment greater than 90 Days and Accruing
Ag [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
30-59 Days Past Due	11	7
Total Past Due	11	7
Current	57,759	52,591
Total Financing Receivables	57,770	52,598
Recorded Investment greater than 90 Days and Accruing
Commercial Real Estate [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
60-89 Days Past Due		611
Greater Than 90 Days	877	927
Total Past Due	877	1,538
Current	199,122	196,728
Total Financing Receivables	199,999	198,266
Recorded Investment greater than 90 Days and Accruing
Commercial and Industrial [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
30-59 Days Past Due	78	77
Greater Than 90 Days	2,567	421
Total Past Due	2,645	498
Current	100,278	115,195
Total Financing Receivables	102,923	115,693
Recorded Investment greater than 90 Days and Accruing
Consumer [Member]
Contractual aging of the recorded investment in past due loans by portfolio segment of loans
30-59 Days Past Due	51	24
60-89 Days Past Due	1
Total Past Due	52	24
Current	20,228	23,164
Total Financing Receivables	20,280	23,188
Recorded Investment greater than 90 Days and Accruing	$ 1

Loans (Details 4) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans	$ 4,828	$ 2,131
Consumer Real Estate [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans	964	700
Agricultural Real Estate [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans
Agricultural [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans		7
Commercial Real Estate [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans	877	1,003
Commercial [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans	2,987	421
Consumer [Member]
Recorded investment in nonaccrual loans by portfolio segment of loans
Investment in nonaccrual loans

Loans (Details 5) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Risk category of loans by portfolio segment
Loans - Gross	$ 501,535	$ 506,402
Agricultural Real Estate [Member]
Risk category of loans by portfolio segment
Loans - Gross	40,143	31,993
Agricultural Real Estate [Member] \| 1-2 [Member]
Risk category of loans by portfolio segment
Loans - Gross	2,719	1,058
Agricultural Real Estate [Member] \| 3 [Member]
Risk category of loans by portfolio segment
Loans - Gross	15,111	12,613
Agricultural Real Estate [Member] \| 4 [Member]
Risk category of loans by portfolio segment
Loans - Gross	21,481	17,256
Agricultural Real Estate [Member] \| 5 [Member]
Risk category of loans by portfolio segment
Loans - Gross	794	383
Agricultural Real Estate [Member] \| 6 [Member]
Risk category of loans by portfolio segment
Loans - Gross	38	683
Agricultural Real Estate [Member] \| 7 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Agricultural Real Estate [Member] \| 8 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Agricultural [Member]
Risk category of loans by portfolio segment
Loans - Gross	57,770	52,598
Agricultural [Member] \| 1-2 [Member]
Risk category of loans by portfolio segment
Loans - Gross	5,022	1,500
Agricultural [Member] \| 3 [Member]
Risk category of loans by portfolio segment
Loans - Gross	23,525	25,019
Agricultural [Member] \| 4 [Member]
Risk category of loans by portfolio segment
Loans - Gross	29,188	26,008
Agricultural [Member] \| 5 [Member]
Risk category of loans by portfolio segment
Loans - Gross	35	57
Agricultural [Member] \| 6 [Member]
Risk category of loans by portfolio segment
Loans - Gross		7
Agricultural [Member] \| 7 [Member]
Risk category of loans by portfolio segment
Loans - Gross		7
Agricultural [Member] \| 8 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Commercial Real Estate [Member]
Risk category of loans by portfolio segment
Loans - Gross	199,999	198,266
Commercial Real Estate [Member] \| 1-2 [Member]
Risk category of loans by portfolio segment
Loans - Gross	4,046	3,545
Commercial Real Estate [Member] \| 3 [Member]
Risk category of loans by portfolio segment
Loans - Gross	42,467	23,283
Commercial Real Estate [Member] \| 4 [Member]
Risk category of loans by portfolio segment
Loans - Gross	137,537	159,959
Commercial Real Estate [Member] \| 5 [Member]
Risk category of loans by portfolio segment
Loans - Gross	8,984	6,098
Commercial Real Estate [Member] \| 6 [Member]
Risk category of loans by portfolio segment
Loans - Gross	6,295	4,677
Commercial Real Estate [Member] \| 7 [Member]
Risk category of loans by portfolio segment
Loans - Gross	670	704
Commercial Real Estate [Member] \| 8 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Commercial [Member]
Risk category of loans by portfolio segment
Loans - Gross	101,624	114,497
Commercial [Member] \| 1-2 [Member]
Risk category of loans by portfolio segment
Loans - Gross	750	710
Commercial [Member] \| 3 [Member]
Risk category of loans by portfolio segment
Loans - Gross	21,750	22,506
Commercial [Member] \| 4 [Member]
Risk category of loans by portfolio segment
Loans - Gross	71,228	82,745
Commercial [Member] \| 5 [Member]
Risk category of loans by portfolio segment
Loans - Gross	3,385	3,897
Commercial [Member] \| 6 [Member]
Risk category of loans by portfolio segment
Loans - Gross	2,202	4,219
Commercial [Member] \| 7 [Member]
Risk category of loans by portfolio segment
Loans - Gross	2,309	420
Commercial [Member] \| 8 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Industrial Development Bonds [Member]
Risk category of loans by portfolio segment
Loans - Gross	1,299	1,196
Industrial Development Bonds [Member] \| 1-2 [Member]
Risk category of loans by portfolio segment
Loans - Gross	97	188
Industrial Development Bonds [Member] \| 3 [Member]
Risk category of loans by portfolio segment
Loans - Gross	859	622
Industrial Development Bonds [Member] \| 4 [Member]
Risk category of loans by portfolio segment
Loans - Gross	343	386
Industrial Development Bonds [Member] \| 5 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Industrial Development Bonds [Member] \| 6 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Industrial Development Bonds [Member] \| 7 [Member]
Risk category of loans by portfolio segment
Loans - Gross
Industrial Development Bonds [Member] \| 8 [Member]
Risk category of loans by portfolio segment
Loans - Gross

Loans (Details 6) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Consumer Real Estate [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	$ 80,287	$ 84,477
Consumer Real Estate [Member] \| Pass [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	79,766	83,954
Consumer Real Estate [Member] \| Special mention (5) [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net
Consumer Real Estate [Member] \| Substandard (6) [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	110	240
Consumer Real Estate [Member] \| Doubtful (7) [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	411	283
Consumer - Credit Card [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	3,473	3,607
Consumer - Credit Card [Member] \| Performing [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	3,470	3,607
Consumer - Credit Card [Member] \| Nonperforming [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	3
Consumer - Other [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	16,807	19,581
Consumer - Other [Member] \| Performing [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	16,775	19,531
Consumer - Other [Member] \| Nonperforming [Member]
Recorded investment in those classes based on payment activity and assigned risk grading
Financing Receivable, Net	$ 32	$ 50

Loans (Details 7) - USD ($) $ in Thousands	12 Months Ended
Loans (Details 7) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Impaired loans as of and for the years ended
Impaired loans without a valuation allowance	$ 730	$ 446
Impaired loans with a valuation allowance	3,861	1,408
Total impaired loans	4,591	1,854
Valuation allowance related to impaired loans	865	175
Total non-accrual loans	4,828	2,131
Total loans past-due ninety days or more and still accruing	1
Average investment in impaired loans	3,436	5,466	$ 10,136
Interest income recognized on impaired loans	26	1,230	61
Interest income recognized on a cash basis on impaired loans	$ 21	$ 1,175	$ 41

Loans (Details 8) $ in Thousands	3 Months Ended		12 Months Ended
Loans (Details 8) $ in Thousands	Dec. 31, 2012 USD ($) Contracts	Dec. 31, 2011 USD ($) Contracts	Dec. 31, 2012 USD ($) Contracts	Dec. 31, 2011 USD ($) Contracts
Commercial Real Estate [Member]
Impaired loans classified as troubled debt restructured
Number of Contracts Modified, Troubled Debt Restructurings \| Contracts			1	2
Pre- Modification Outstanding Recorded Investment			$ 1,937	$ 923
Post- Modification Outstanding Recorded Investment			$ 1,921	$ 702
Number of Contracts Modified, Troubled Debt Restructurings That Subsequently Defaulted \| Contracts				1
Recorded Investment				$ 207
Ag RE [Member]
Impaired loans classified as troubled debt restructured
Number of Contracts Modified, Troubled Debt Restructurings \| Contracts
Pre- Modification Outstanding Recorded Investment
Post- Modification Outstanding Recorded Investment
Number of Contracts Modified, Troubled Debt Restructurings That Subsequently Defaulted \| Contracts
Recorded Investment
Commercial and Industrial [Member]
Impaired loans classified as troubled debt restructured
Number of Contracts Modified, Troubled Debt Restructurings \| Contracts			2
Pre- Modification Outstanding Recorded Investment			$ 420
Post- Modification Outstanding Recorded Investment			$ 420
Number of Contracts Modified, Troubled Debt Restructurings That Subsequently Defaulted \| Contracts
Recorded Investment

Loans (Details 9) - USD ($) $ in Thousands	12 Months Ended
Loans (Details 9) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Residential [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	$ 647	$ 522
Unpaid Principal Balance	748	547
Related Allowance	70	54
YTD Average Recorded Investment	723	564
YTD Interest Income Recognized	13	36
Residential [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	236	239
Unpaid Principal Balance	236	239
Related Allowance
YTD Average Recorded Investment	269	195
YTD Interest Income Recognized	12	36
Residential [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	411	283
Unpaid Principal Balance	512	308
Related Allowance	70	54
YTD Average Recorded Investment	454	369
YTD Interest Income Recognized	1
Agricultural Real Estate [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment		180
YTD Interest Income Recognized		15
Agricultural Real Estate [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment		180
YTD Interest Income Recognized		15
Agricultural Real Estate [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment
YTD Interest Income Recognized
Agricultural [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment		2,683
YTD Interest Income Recognized		1,156
Agricultural [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment		2,683
YTD Interest Income Recognized		1,156
Agricultural [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment
YTD Interest Income Recognized
Commercial Real Estate [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	877	911
Unpaid Principal Balance	1,300	1,238
Related Allowance	25	29
YTD Average Recorded Investment	863	1,545
YTD Interest Income Recognized		22
Commercial Real Estate [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	207	207
Unpaid Principal Balance	384	384
Related Allowance
YTD Average Recorded Investment	206	1,357
YTD Interest Income Recognized		22
Commercial Real Estate [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	670	704
Unpaid Principal Balance	916	854
Related Allowance	25	29
YTD Average Recorded Investment	657	188
Commercial [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	3,067	420
Unpaid Principal Balance	3,114	420
Related Allowance	770	91
YTD Average Recorded Investment	1,848	493
YTD Interest Income Recognized	13	1
Commercial [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	287
Unpaid Principal Balance	334
Related Allowance
YTD Average Recorded Investment	212	55
YTD Interest Income Recognized		1
Commercial [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment	2,780	420
Unpaid Principal Balance	2,780	420
Related Allowance	770	91
YTD Average Recorded Investment	1,636	438
YTD Interest Income Recognized	13
Consumer [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment	2	1
YTD Interest Income Recognized
Consumer [Member] \| With no related allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment		1
YTD Interest Income Recognized
Consumer [Member] \| With a specific allowance recorded [Member]
Loans individually evaluated for impairment by portfolio segment of loans
Recorded Investment
Unpaid Principal Balance
Related Allowance
YTD Average Recorded Investment	2
YTD Interest Income Recognized

Loans (Details 10) - USD ($) $ in Thousands	12 Months Ended
Loans (Details 10) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Allowance for Loan Losses
Balance at beginning of year	$ 5,091	$ 5,706	$ 6,008
Provision for loan loss	738	1,715	5,325
Loans charged off	(891)	(2,681)	(6,422)
Recoveries	286	351	795
Balance at ending of year	5,224	5,091	5,706
Allowance for Unfunded Loan Commitments & Letters of Credit	162	130	153
Total Allowance for Credit Losses	$ 5,386	$ 5,221	$ 5,859

- Definition

Amount of allowance to cover probable credit losses on loans and leases. Includes carryover of or adjustments to the allowance for loan losses in connection with business combinations. Excludes allowance for loans and leases covered under loss sharing agreements.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.7(d))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (b)(1)(ii)
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 8
-Subparagraph a(ii)
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 8, 9
-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.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Subparagraph d
-Article 9

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 114
-Paragraph 20
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section L
-Subsection 1

+ Details

Loans (Details 11) - USD ($) $ in Thousands	12 Months Ended
Loans (Details 11) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	$ 5,221	$ 5,859
Charge Offs	(891)	(2,681)
Recoveries	286	351
Provision	738	1,715
Other Non-interest expense related to unfunded	32	(23)
Ending Balance	5,386	5,221
Ending balance: individually evaluated for impairment	865	175
Ending balance: collectively evaluated for impairment	4,521	5,046
Ending balance: loans acquired with deteriorated credit quality	1	2
FINANCING RECEIVABLES:
Ending balance	501,402	506,215
Ending balance: individually evaluated for impairment	4,591	1,854
Ending balance: collectively evaluated for impairment	496,811	504,361
Ending balance: loans acquired with deteriorated credit quality	548	856
Consumer Real Estate [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	261	258
Charge Offs	(246)	(422)
Recoveries	61	61
Provision	292	364
Other Non-interest expense related to unfunded
Ending Balance	368	261
Ending balance: individually evaluated for impairment	70	55
Ending balance: collectively evaluated for impairment	298	206
Ending balance: loans acquired with deteriorated credit quality	1	2
FINANCING RECEIVABLES:
Ending balance	80,287	84,477
Ending balance: individually evaluated for impairment	648	523
Ending balance: collectively evaluated for impairment	79,639	83,954
Ending balance: loans acquired with deteriorated credit quality	548	856
Agricultural Real Estate [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	140	122
Provision	(27)	18
Other Non-interest expense related to unfunded
Ending Balance	113	140
Ending balance: collectively evaluated for impairment	113	140
FINANCING RECEIVABLES:
Ending balance	40,143	31,993
Ending balance: collectively evaluated for impairment	40,143	31,993
Agriculture [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	266	327
Charge Offs	(6)	(24)
Recoveries	12	67
Provision	18	(104)
Other Non-interest expense related to unfunded
Ending Balance	290	266
Ending balance: collectively evaluated for impairment	290	266
FINANCING RECEIVABLES:
Ending balance	57,770	52,598
Ending balance: collectively evaluated for impairment	57,770	52,598
Commercial Real Estate [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	2,088	1,868
Charge Offs	(98)	(360)
Recoveries	7	32
Provision	(248)	548
Other Non-interest expense related to unfunded
Ending Balance	1,749	2,088
Ending balance: individually evaluated for impairment	25	29
Ending balance: collectively evaluated for impairment	1,724	2,059
FINANCING RECEIVABLES:
Ending balance	199,999	198,266
Ending balance: individually evaluated for impairment	877	911
Ending balance: collectively evaluated for impairment	199,122	197,355
Commercial and Industrial [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	1,947	2,354
Charge Offs	(47)	(1,500)
Recoveries	30	19
Provision	253	1,074
Other Non-interest expense related to unfunded
Ending Balance	2,183	1,947
Ending balance: individually evaluated for impairment	770	91
Ending balance: collectively evaluated for impairment	1,413	1,856
FINANCING RECEIVABLES:
Ending balance	102,923	115,693
Ending balance: individually evaluated for impairment	3,066	420
Ending balance: collectively evaluated for impairment	99,857	115,273
Consumer [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	315	380
Charge Offs	(494)	(375)
Recoveries	176	172
Provision	271	138
Other Non-interest expense related to unfunded
Ending Balance	268	315
Ending balance: collectively evaluated for impairment	268	315
FINANCING RECEIVABLES:
Ending balance	20,280	23,188
Ending balance: collectively evaluated for impairment	20,280	23,188
Unfunded Loan Commitment and Letters of Credit [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	130	153
Other Non-interest expense related to unfunded	32	(23)
Ending Balance	162	130
Ending balance: collectively evaluated for impairment	162	130
FINANCING RECEIVABLES:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Unallocated [Member]
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance	74	397
Provision	179	(323)
Other Non-interest expense related to unfunded
Ending Balance	253	74
Ending balance: collectively evaluated for impairment	253	74
FINANCING RECEIVABLES:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality

Loans (Details Textual)	1 Months Ended	12 Months Ended
Loans (Details Textual)	Jan. 31, 2010	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Loans (Additional Textual) [Abstract]
Loans held for sale		$ 2,500,000	$ 987,000
Residential mortgage loan		$ 26,800,000	$ 67,400,000
Percentage of delinquent loan	2.85%	0.96%
Delinquent loans least percentage			0.67%
Impaired loans classified as troubled debt restructured		$ 627,300	$ 207,000
Maximum time for re-evaluation (in months)		12 months
Re-evaluation period for real estate		2 years
Unsecured consumer loans, credit card credits and overdraft lines of credit reach		90 days
Delinquent period for charging down consumer loans		120 days
Delinquent period for charging down commercial and agricultural credits		120 days
Minimum [Member]
Loans (Textual) [Abstract]
Repayment period of loan with a reasonable reduction of principal balance		2 years
Maximum [Member]
Loans (Textual) [Abstract]
Leverage position of balance sheet		1.50
Leverage position of customers		2.00

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Major categories of banking premises and equipment and accumulated depreciation
Premises and Equipment (Gross)	$ 34,102	$ 32,608
Less: Accumulated depreciation	(16,503)	(15,624)
Premises and Equipment (Net)	17,599	16,984
Land [Member]
Major categories of banking premises and equipment and accumulated depreciation
Premises and Equipment (Gross)	4,337	3,635
Buildings [Member]
Major categories of banking premises and equipment and accumulated depreciation
Premises and Equipment (Gross)	19,130	18,979
Construction in Progress [Member]
Major categories of banking premises and equipment and accumulated depreciation
Premises and Equipment (Gross)	274
Furnishings [Member]
Major categories of banking premises and equipment and accumulated depreciation
Premises and Equipment (Gross)	$ 10,361	$ 9,994

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Premises and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Premises and Equipment (Additional Textual) [Abstract]
Depreciation expense	$ 1,200	$ 1,100	$ 1,100
Construction Contracts [Member]
Premises and Equipment (Textual) [Abstract]
Amount yet to be paid on contract related to Waterville office	605
Completed contract amount related to Waterville office	825
Architect Contract [Member]
Premises and Equipment (Textual) [Abstract]
Amount yet to be paid on contract related to Waterville office	15
Completed contract amount related to Waterville office	$ 54
Buildings [Member] \| Minimum [Member]
Premises and Equipment (Textual) [Abstract]
Premises and Equipment, useful Life	15 years
Buildings [Member] \| Maximum [Member]
Premises and Equipment (Textual) [Abstract]
Premises and Equipment, useful Life	39 years
Furnishings [Member] \| Minimum [Member]
Premises and Equipment (Textual) [Abstract]
Premises and Equipment, useful Life	3 years
Furnishings [Member] \| Maximum [Member]
Premises and Equipment (Textual) [Abstract]
Premises and Equipment, useful Life	15 years

Servicing (Details) - USD ($) $ in Thousands	12 Months Ended
Servicing (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary of mortgage servicing rights capitalized and amortized
Beginning Year	$ 2,071
End of Year	2,063	$ 2,071
Mortgage Servicing Rights [Member]
Summary of mortgage servicing rights capitalized and amortized
Beginning Year	2,071	2,178
Capitalized Additions	760	391
Amortization	(768)	(498)
Valuation Allowance
End of Year	$ 2,063	$ 2,071

- Definition

Amortized carrying amount (balance) as of the balance sheet date of an asset representing net future revenues from contractually specified servicing fees, late charges, and other ancillary revenues, in excess of future costs related to servicing arrangements.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7524895&loc=d3e120260-111741

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6469459&loc=d3e122492-111745

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6469459&loc=d3e122501-111745

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 4
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122739-111746

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 13A, 13B
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph B10
-Subparagraph a(1)
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 17
-Subparagraph g(1)(a)
-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.

+ Details

Servicing (Details Textual) - USD ($) $ in Millions	12 Months Ended
Servicing (Details Textual) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Servicing (Textual) [Abstract]
Loans serviced for others unpaid principal amount	$ 280.0	$ 273.0
Capitalized service right assets included in other assets	2.1	2.1
Fair market value of the capitalized servicing rights	$ 2.4	$ 2.8
Prepayment rate	18.90%	12.60%
Discount yield	7.75%	7.75%

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Time deposits
Time deposits under $100,000	$ 147,732	$ 163,726
Time deposits of $100,000 or more	121,775	127,900
Total	$ 269,507	$ 291,626

Deposits (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Scheduled of maturities for time deposits
2012	$ 132,584
2013	74,298
2014	38,750
2015	15,661
2016	6,492
thereafter	1,722
Total	$ 269,507	$ 291,626

Securities Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Daily securities under agreement to repurchase
Amount Outstanding at End of Period	$ 51,312	$ 52,440
Daily Securities [Member]
Daily securities under agreement to repurchase
Amount Outstanding at End of Period	$ 35,173	$ 38,209	$ 37,191
Weighted Average Rate End of Period	0.10%	0.15%	0.36%
Maximum Amount Borrowings Outstanding Month End	$ 41,876	$ 42,154	$ 37,501
Approximate Average Outstanding in Period	$ 38,725	$ 36,910	$ 34,046
Approximate Weighted Average Interest Rate For the Period	0.18%	0.30%	0.36%
Certificates of deposit [Member]
Daily securities under agreement to repurchase
Amount Outstanding at End of Period	$ 16,139	$ 14,231	$ 14,050
Weighted Average Rate End of Period	1.25%	1.28%	1.28%
Maximum Amount Borrowings Outstanding Month End	$ 16,139	$ 15,095	$ 14,050
Approximate Average Outstanding in Period	$ 14,184	$ 14,606	$ 12,493
Approximate Weighted Average Interest Rate For the Period	1.22%	1.25%	1.24%

- Definition

The carrying value as of the balance sheet date of securities that an institution sells and agrees to repurchase (the identical or substantially the same securities) as a seller-borrower at a specified date for a specified price, also known as a repurchase agreement, or repo. Most repos involve obligations of the federal government or its agencies, but other financial instruments, such as commercial paper, banker's acceptances, and negotiable certificates of deposit, are sometimes used in repos.

+ References + Details

Securities Sold Under Agreement to Repurchase (Details Textual) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Securities Sold Under Agreement to Repurchase (Textual) [Abstract]
Securities to be used as collateral for the underlying repurchase agreements	$ 69.0	$ 61.6

Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Future obligations of the advances
2013	$ 7,100
2014	4,500
Total	$ 11,600	$ 16,700

- Definition

Amount of federal home loan bank advances. Advances are loans from the federal home loan bank system to a member (shareholder).

+ References + Details

Federal Home Loan Bank Advances (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Federal Home Loan Bank Advances (Additional Textual) [Abstract]
Interest rates on the loans, Minimum	1.77%
Interest rates on the loans, Maximum	2.70%
Total borrowings	$ 11,600	$ 16,700
Mortgage Loans at Cost [Member]
Federal Home Loan Bank Advances (Textual) [Abstract]
Advances, secured by mortgage loans	$ 26,800	$ 67,400

- Definition

Amount of federal home loan bank advances. Advances are loans from the federal home loan bank system to a member (shareholder).

+ References + Details

Federal Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Federal Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ 4,030	$ 3,058	$ 2,172
Deferred:
Federal	(126)	(165)	210
Total	$ 3,904	$ 2,893	$ 2,382

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Paragraph Question 1-7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 8, 16, 17, 289
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-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.

+ Details

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to pretax Income or Loss from continuing operations; income tax expense or benefit may include interest and penalties on tax uncertainties based on the entity's accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45, 46
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 15, 16, 19
-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.

+ Details

Federal Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Federal Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of the statutory federal income tax rate to the effective tax rate:
Income tax at statutory rates	$ 4,655	$ 3,878	$ 3,183
Increase (decrease) resulting from:
Tax exempt interest	(677)	(689)	(744)
Change in prior estimates and other	(74)	(296)	(57)
Total	$ 3,904	$ 2,893	$ 2,382

- Definition

+ References

+ Details

Federal Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Deferred Tax Assets:
Allowance for loan losses	$ 1,776	$ 1,731
Other	766	860
Total deferred tax assets	2,542	2,591
Deferred Tax Liabilities:
Accreted discounts on bonds	55	62
FHLB stock dividends	859	859
Mortgage servicing rights	701	704
Other	1,094	1,007
Net unrealized gain on available-for-sale securities	3,139	3,287
Total deferred tax liabilities	5,848	5,919
Net Deferred Tax Liability	$ (3,306)	$ (3,328)

Employee Benefit Plans (Details) - Restricted Stock [Member] - shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Activity of restricted stock awards:
Beginning of period	29,715	28,925	27,775
Granted	11,000	11,000	10,150
Vested	(8,910)	(9,432)	(7,425)
Forfeited	(1,135)	(778)	(1,575)
Nonvested, end of period	30,670	29,715	28,925

Employee Benefit Plans (Details Textual) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details Textual) $ in Thousands	Dec. 31, 2012 USD ($) Employee shares	Dec. 31, 2011 USD ($) Employee shares	Dec. 31, 2010 USD ($) Employee shares	Dec. 31, 2009 shares	Dec. 30, 2008 shares
Employee Benefit Plans (Textual) [Abstract]
Vesting period	6 years
Restricted stock awards, shares issued	11,000	11,000	10,150
Employee Benefit Plans (Additional Textual) [Abstract]
Minimum percentage of eligible compensation on a pre-tax basis for eligible employees to save	1.00%
Percentage of total eligible compensation, contribution by Bank, maximum limit	4.00%
Employee contribution matching percentage	50.00%
Vesting percentage in participant's deferral contributions and employer matching contributions	100.00%
Employer matching contribution and the discretionary contribution \| $	$ 744	$ 680	$ 551
One employee received shares from awards granted due to retirement		210	210	210
Three employees received shares from awards granted due to retirement			557	557	557
Restricted Stock [Member]
Employee Benefit Plans (Textual) [Abstract]
Vesting period	3 years
Restricted stock awards, shares issued	11,000	11,000	10,150
Stock issued to number of employees \| Employee	54	56	53
Shares vest under the plan	100.00%	100.00%	100.00%
Shares forfeited due to employee termination	1,135	778	1,575
Number of shares vested	8,910	9,432	7,425
Number of employees, received the stock \| Employee	41	44	40
Compensation expense \| $	$ 219	$ 202	$ 191
Unrecognized compensation expense related to the nonvested portion of restricted stock awards under the plan \| $	$ 334

Related Party Transactions (Details) - Directors and Executive Officers [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Related Party Transactions (Textual) [Abstract]
Granted loans to affiliate companies	$ 6,500	$ 6,900
New loans approved	827
Subsequent advances	13,300
Payment received	13,700
Difference in related borrowings amounts	446
Ownership interest amount	$ 4,200	$ 4,000

Off Balance Sheet Activities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Commitments to extend credit [Member]
Outstanding financial instruments whose contract amounts represent credit risk
Concentration of Risk	$ 191,790	$ 146,598
Credit card arrangements [Member]
Outstanding financial instruments whose contract amounts represent credit risk
Concentration of Risk	14,451	14,152
Standby letters of credit [Member]
Outstanding financial instruments whose contract amounts represent credit risk
Concentration of Risk	$ 1,470	$ 1,038

Off Balance Sheet Activities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Off Balance Sheet Activities (Textual) [Abstract]
Allowance for credit losses relates to unfunded loan commitments	$ 163	$ 130

Minimum Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary of Bank's actual and required capital amounts and ratios
Total Risk-Based Capital to Risk Weighted Assets Actual, Amount	$ 104,446	$ 98,531
Tier 1 Capital to Risk Weighted Assets Actual, Amount	99,059	93,310
Tier 1 Capital to Adjusted Total Assets Actual, Amount	$ 99,059	$ 93,310
Total Risk-Based Capital to Risk Weighted Assets Actual, Ratio	17.35%	16.54%
Tier 1 Capital to Risk Weighted Assets Actual, Ratio	16.45%	15.66%
Tier 1 Capital to Adjusted Total Assets Actual, Ratio	10.67%	10.25%
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount	$ 48,167	$ 47,657
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount	24,084	23,829
Tier 1 Capital to Adjusted Total Assets For Capital Adequacy Purposes, Amount	$ 37,152	$ 36,398
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier 1 Capital to Adjusted Total Assets For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Farmers & Merchants State Bank [Member]
Summary of Bank's actual and required capital amounts and ratios
Total Risk-Based Capital to Risk Weighted Assets Actual, Amount	$ 88,746	$ 85,618
Tier 1 Capital to Risk Weighted Assets Actual, Amount	83,359	77,397
Tier 1 Capital to Adjusted Total Assets Actual, Amount	$ 83,359	$ 77,397
Total Risk-Based Capital to Risk Weighted Assets Actual, Ratio	14.74%	14.37%
Tier 1 Capital to Risk Weighted Assets Actual, Ratio	13.85%	12.99%
Tier 1 Capital to Adjusted Total Assets Actual, Ratio	8.92%	8.48%
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount	$ 48,167	$ 47,656
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount	24,083	23,828
Tier 1 Capital to Adjusted Total Assets For Capital Adequacy Purposes, Amount	$ 37,368	$ 36,509
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier 1 Capital to Adjusted Total Assets For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Risk-Based Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 66,208	$ 59,570
Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	36,125	35,742
Tier 1 Capital to Adjusted Total Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 46,710	$ 45,636
Total Risk-Based Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	6.00%	6.00%
Tier 1 Capital to Adjusted Total Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	5.00%	5.00%

Restrictions of Dividends & Inter-company Borrowings (Details) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)
Restrictions of Dividends & Inter-company Borrowings (Textual) [Abstract]
Dividends may be paid without prior regulatory approval	$ 12.6

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Jul. 09, 2010
Financial Assets:
Cash and Cash Equivalents	$ 44,092	$ 43,143
Other Securities	4,365	4,365
Financial Liabilities:
Total Deposits	763,252	739,382	$ 27,749
Dividends payable	931	890
Level 1 [Member]
Financial Assets:
Cash and Cash Equivalents	44,092	43,143
Securities - available for sale	10,568	26,691
Total Assets	54,660	69,834
Financial Liabilities:
Total Deposits
Short-term debt
Federal Home Loan Bank advances
Interest payable
Dividends payable
Total Liabilities
Level 1 [Member] \| Interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits
Level 1 [Member] \| Non-interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits
Level 1 [Member] \| Time Deposits [Member]
Financial Liabilities:
Total Deposits
Level 2 [Member]
Financial Assets:
Securities - available for sale	328,929	287,127
Total Assets	328,929	287,127
Financial Liabilities:
Total Deposits	104,529	85,517
Dividends payable	931	890
Total Liabilities	105,460	86,407
Level 2 [Member] \| Non-interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	104,529	85,517
Level 3 [Member]
Financial Assets:
Securities - available for sale	16,408	13,701
Other Securities	4,365	4,365
Loans, net	502,125	504,629
Interest receivable	3,603	3,218
Total Assets	526,501	525,913
Financial Liabilities:
Total Deposits	662,657	656,458
Short-term debt	51,312	52,440
Federal Home Loan Bank advances	11,012	16,638
Interest payable	288	342
Total Liabilities	725,269	725,878
Level 3 [Member] \| Interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	390,066	363,727
Level 3 [Member] \| Time Deposits [Member]
Financial Liabilities:
Total Deposits	272,591	292,731
Carrying Amount [Member]
Financial Assets:
Cash and Cash Equivalents	44,092	43,143
Securities - available for sale	355,905	327,519
Other Securities	4,365	4,365
Loans, net	496,178	501,124
Interest receivable	3,603	3,218
Total Assets	904,143	876,151
Financial Liabilities:
Total Deposits	763,252	739,382
Short-term debt	51,312	52,440
Federal Home Loan Bank advances	11,600	16,662
Interest payable	288	342
Dividends payable	931	890
Total Liabilities	827,383	809,716
Carrying Amount [Member] \| Interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	389,779	363,189
Carrying Amount [Member] \| Non-interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	103,966	84,567
Carrying Amount [Member] \| Time Deposits [Member]
Financial Liabilities:
Total Deposits	269,507	291,626
Fair Value [Member]
Financial Assets:
Cash and Cash Equivalents	44,092	43,143
Securities - available for sale	355,905	327,519
Other Securities	4,365	4,365
Loans, net	502,125	504,629
Interest receivable	3,603	3,218
Total Assets	910,090	882,874
Financial Liabilities:
Total Deposits	767,186	741,975
Short-term debt	51,312	52,440
Federal Home Loan Bank advances	11,012	16,638
Interest payable	288	342
Dividends payable	931	890
Total Liabilities	830,729	812,285
Fair Value [Member] \| Interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	390,066	363,727
Fair Value [Member] \| Non-interest bearing Deposits [Member]
Financial Liabilities:
Total Deposits	104,529	85,517
Fair Value [Member] \| Time Deposits [Member]
Financial Liabilities:
Total Deposits	$ 272,591	$ 292,731

Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	$ 355,905	$ 327,519
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	10,568	26,691
Significant Observable Inputs (Level 2) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	328,929	287,127
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	16,408	13,701
U.S. Treasury [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	10,568	26,691
U.S. Treasury [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	10,568	26,691
U.S. Government agency [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	220,200	177,797
U.S. Government agency [Member] \| Significant Observable Inputs (Level 2) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	220,200	177,797
Mortgage-backed securities [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	53,006	55,413
Mortgage-backed securities [Member] \| Significant Observable Inputs (Level 2) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	53,006	55,413
State and local governments [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	72,131	67,618
State and local governments [Member] \| Significant Observable Inputs (Level 2) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	55,723	53,917
State and local governments [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Fair Value on a Recurring Basis [Member]
Financial assets measured at fair value on a recurring basis
Total Securities Available for Sale	$ 16,408	$ 13,701

Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Impaired loans and other real estate
Change in fair value of assets and liabilities	$ (352)	$ (928)
Fair Value, Measurements, Nonrecurring [Member] \| Impaired loans [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	4,591	1,854
Change in fair value of assets and liabilities	(76)	(150)
Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - residential mortgages [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	783	958
Change in fair value of assets and liabilities	(62)	(145)
Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - commercial [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	1,526	2,614
Change in fair value of assets and liabilities	(214)	(633)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Impaired loans [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - residential mortgages [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - commercial [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Significant Observable Inputs (Level 2) [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Significant Observable Inputs (Level 2) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Impaired loans [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Significant Observable Inputs (Level 2) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - residential mortgages [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Significant Observable Inputs (Level 2) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - commercial [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Impaired loans [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	4,591	1,854
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - residential mortgages [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	783	958
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Other real estate owned - commercial [Member]
Impaired loans and other real estate
Assets measured at fair value on a nonrecurring basis, total	$ 1,526	$ 2,614

Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Fair Value of Financial Instruments (Textual) [Abstract]
Impaired Loans Categorized as Level 3	$ 4,591	$ 1,854
Specific Allocation for Impaired Loans	$ 865	175
Fair Value of Financial Instruments (Additional Textual) [Abstract]
Interest-Bearing Deposits Maturing	90 days
Carrying Amounts of Dividends Payable, Number of days	40 days
No Impairment Charge to Other Expense was Required to Adjust these Assets to their Estimated Fair Values	$ 0
Fair Value on a Recurring Basis [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Specific Allocation for Impaired Loans	865	175
Significant Unobservable Inputs (Level 3) [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Impaired Loans Categorized as Level 3	$ 4,600	$ 1,900

Condensed Financial Statements of Parent Company (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Jul. 09, 2010	Dec. 31, 2009
Assets
Cash				$ 114
Related party receivables:
Total Assets	$ 946,660	$ 922,993
Liabilities
Dividends payable	931	890
Total liabilities	836,421	817,902
Stockholders' Equity
Stockholders' Equity	110,239	105,091	$ 94,403		$ 93,584
Total Liabilities and Stockholders' Equity	946,660	922,993
Parent Company [Member]
Assets
Cash	1,173	983
Related party receivables:
Dividends & Accounts receivable from subsidiary	954	1,214
Note receivable from Bank subsidiary	15,000	15,000
Investment in subsidiary	94,540	89,178
Total Assets	111,667	106,375
Liabilities
Accrued expenses	497	394
Dividends payable	931	890
Total liabilities	1,428	1,284
Stockholders' Equity
Stockholders' Equity	110,239	105,091
Total Liabilities and Stockholders' Equity	$ 111,667	$ 106,375

Condensed Financial Statements of Parent Company (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income
Interest									$ 26,489	$ 29,840	$ 32,860
Total interest income	$ 7,994	$ 8,278	$ 8,525	$ 8,476	$ 9,306	$ 8,855	$ 8,844	$ 9,655	33,273	36,660	39,893
Income Before Income Taxes	3,532	3,388	3,558	3,214	3,987	2,800	2,193	2,427	13,692	11,407	9,363
Income Taxes	1,007	947	1,020	930	1,102	719	626	446	3,904	2,893	2,382
Net Income	$ 2,525	$ 2,441	$ 2,538	$ 2,284	$ 2,885	$ 2,081	$ 1,567	$ 1,981	9,788	8,514	6,981
Parent Company [Member]
Income
Dividends from subsidiary									3,870	4,000	4,205
Interest									713	713	713
Total interest income									4,583	4,713	4,918
Operating Expenses									305	499	472
Income Before Income Taxes									4,278	4,214	4,446
Income Taxes									139	72	82
Income from operation before equity in undistributed earnings of subsidiary									4,139	4,142	4,364
Equity in undistributed earnings (Distributions in excess of earnings) of subsidiary									5,649	4,372	2,617
Net Income									$ 9,788	$ 8,514	$ 6,981

Condensed Financial Statements of Parent Company (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash Flows from Operating Activities
Net income	$ 2,525	$ 2,441	$ 2,538	$ 2,284	$ 2,885	$ 2,081	$ 1,567	$ 1,981	$ 9,788	$ 8,514	$ 6,981
Changes in Assets and Liabilities:
Net cash provided by operating activities									14,214	17,159	11,435
Cash Flows from Financing Activities
Cash dividends paid on common stock									(3,597)	(3,567)	(3,402)
Purchase of Treasury Stock									(894)	(310)	(894)
Net Increase (Decrease) in Cash and Cash Equivalents									949	1,720	9,731
Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year				45,099				43,379	45,099	43,379	33,648
Cash and Cash Equivalents - End of Year	44,092				45,099				44,092	45,099	43,379
Parent Company [Member]
Cash Flows from Operating Activities
Net income									9,788	8,514	6,981
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Equity in undistributed net income (Distributions in excess earnings) of subsidiaries									(5,649)	(4,372)	(2,617)
Changes in Assets and Liabilities:
Dividends receivable									260	(111)	(42)
Other Liabilities									282	231	101
Net cash provided by operating activities									4,681	4,262	4,423
Cash Flows from Investing Activities
Return of Capital from Investment in Subsidiary
Cash Flows from Financing Activities
Cash dividends paid on common stock									(3,597)	(3,567)	(3,402)
Purchase of Treasury Stock									(894)	(310)	(894)
Net Increase (Decrease) in Cash and Cash Equivalents									190	385	127
Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year				$ 983				$ 598	983	598	471
Cash and Cash Equivalents - End of Year	$ 1,173				$ 983				$ 1,173	$ 983	$ 598

Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of Income:
Interest income	$ 7,994	$ 8,278	$ 8,525	$ 8,476	$ 9,306	$ 8,855	$ 8,844	$ 9,655	$ 33,273	$ 36,660	$ 39,893
Interest expense	1,441	1,532	1,653	1,624	1,835	1,991	2,109	2,221	6,250	8,156	10,863
Net Interest Income	6,553	6,746	6,872	6,852	7,471	6,864	6,735	7,434	27,023	28,504	29,030
Provision for loan loss	296	236	78	128	193	93	657	772	738	1,715	5,325
Net interest income after provision of loan loss	6,257	6,510	6,794	6,724	7,278	6,771	6,078	6,662	26,285	26,789	23,705
Other income (expense)	(2,725)	(3,122)	(3,236)	(3,510)	(3,291)	(3,971)	(3,885)	(4,235)
Net income before income taxes	3,532	3,388	3,558	3,214	3,987	2,800	2,193	2,427	13,692	11,407	9,363
Income Taxes	1,007	947	1,020	930	1,102	719	626	446	3,904	2,893	2,382
Net income	$ 2,525	$ 2,441	$ 2,538	$ 2,284	$ 2,885	$ 2,081	$ 1,567	$ 1,981	$ 9,788	$ 8,514	$ 6,981
Earnings per Common Share	$ 0.54	$ 0.52	$ 0.54	$ 0.48	$ 0.62	$ 0.44	$ 0.34	$ 0.42	$ 2.08	$ 1.82	$ 1.48
Average common shares outstanding	4,688,467	4,685,879	4,695,151	4,714,197	4,689,883	4,687,169	4,686,008	4,693,080	4,695,876	4,689,021	4,721,235