INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2. INVESTMENT SECURITIES

The following table provides information on the amortized cost and estimated fair values of investment securities.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
December 31, 2013:
U.S. Treasury	$	5,342	$	1	$	-	$	5,343
U.S. Government agencies		60,754		62		372		60,444
Mortgage-backed		81,130		520		937		80,713
Equity		609		-		8		601
Total	$	147,835	$	583	$	1,317	$	147,101
December 31, 2012:
U.S. Treasury	$	-	$	-	$	-	$	-
U.S. Government agencies		35,213		903		9		36,107
Mortgage-backed		106,524		2,464		208		108,780
Equity		596		25		-		621
Total	$	142,333	$	3,392	$	217	$	145,508
Held-to-maturity securities:
December 31, 2013:
U.S. Government agencies	$	2,975	$	-	$	222	$	2,753
States and political subdivisions		2,210		99		-		2,309
Total	$	5,185	$	99	$	222	$	5,062
December 31, 2012:
U.S. Government agencies	$	-	$	-	$	-	$	-
States and political subdivisions		2,657		227		-		2,884
Total	$	2,657	$	227	$	-	$	2,884

The following table provides information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2013.

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Available-for-sale securities:
U.S. Government agencies	$	33,004	$	372	$	-	$	-	$	33,004	$	372
Mortgage-backed		28,694		416		19,121		521		47,815		937
Equity		601		8		-		-		601		8
Total	$	62,299	$	796	$	19,121	$	521	$	81,420	$	1,317
Held-to-maturity securities:
U.S. Government agencies	$	2,753	$	222	$	-	$	-	$	2,753	$	222

All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2013.

	Available for sale				Held to maturity
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	2,038	$	2,045	$	267	$	270
Due after one year through five years		63,667		63,521		433		453
Due after five years through ten years		3,624		3,640		1,006		1,069
Due after ten years		77,897		77,294		3,479		3,270
		147,226		146,500		5,185		5,062
Equity securities		609		601		-		-
Total	$	147,835	$	147,101	$	5,185	$	5,062

The maturity dates for debt securities are determined using contractual maturity dates.

The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio.

	December 31, 2013				December 31, 2012
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Pledged available-for-sale securities	$	101,070	$	100,507	$	91,814	$	94,391

There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2013 or 2012.

Proceeds from sales of investment securities were $40.4 million, $6.3 million, and $20.8 million for the years ended December 31, 2013, 2012, and 2011, respectively. Gross gains from sales of investment securities were $913 thousand, $278 thousand and $595 thousand for the years ended December 31, 2013, 2012, and 2011, respectively. There were no gross losses in 2013 and 2012 and $32 thousand in 2011.