Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (28,454,582)	$ 822,293
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	1,089,049	1,233,346
Net realized gains on securities available for sale	(198,325)	(1,499,481)
Net realized gains on securities held to maturity		(11,524)
Net amortization on available for sale securities	861,623	476,332
Increase in held to maturity due to accretion	(46,578)	(46,050)
Provision for loan losses	23,865,488	702,200
Net (gain) loss on other real estate	4,716,559	(283,400)
Gross mortgage loans originated for sale	(2,141,974)	(10,299,858)
Gross proceeds from sale of mortgage loans	1,958,632	9,369,399
Gain on sale of mortgage loans	(47,918)	(122,206)
Increase in cash surrender value of life insurance	(298,839)	(306,105)
Investment in partnership	(84,205)	(95,317)
Share-based compensation	76,950	69,820
Change in operating assets and liabilities:
Accrued interest receivable	177,301	1,148,927
Accrued interest payable	19,254	99,941
Other assets and liabilities	1,420,981	761,129
Net cash provided by operating activities	2,913,416	2,019,446
Activity in available-for-sale securities:
Proceeds from sales	11,350,632	103,501,336
Proceeds from maturities, prepayments and calls	15,884,337	333,006,249
Purchases	(24,372,750)	(366,111,112)
Activity in held-to-maturity securities:
Proceeds from sales		520,000
Purchases of restricted investments	(3,800)	(27,100)
Loan originations and principal collections, net	16,313,914	12,898,134
Purchase of premises and equipment	(165,758)	(235,739)
Proceeds from sale of other real estate	3,227,352	1,169,954
Net cash provided by investing activities	22,233,927	84,721,722
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(15,034,069)	(47,588,890)
Proceeds from Federal Reserve/Federal Home Loan Bank advances		43,000,000
Matured Federal Reserve/Federal Home Loan Bank advances		(50,700,000)
Net increase (decrease) in securities sold under agreements to repurchase	410,009	(1,020,723)
Net cash used in financing activities	(14,624,060)	(56,309,613)
NET INCREASE IN CASH AND CASH EQUIVALENTS	10,523,283	30,431,555
CASH AND CASH EQUIVALENTS, beginning of period	32,575,820	14,104,636
CASH AND CASH EQUIVALENTS, end of period	43,099,103	44,536,191
Cash paid for:
Interest	6,053,103	8,183,069
Income taxes		50,000
Non-cash investing and financing activities:
Transfers from loans to other real estate owned	4,598,624	3,176,944
Loans advanced for sales of other real estate	997,178	1,629,360
Transfers from held-to-maturity to available-for-sale securities		$ 439,097

MOUNTAIN NATIONAL BANCSHARES INC 10-Q