INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table provides information on components of income tax expense for each of the three years ended December 31.

(Dollars in thousands)	2013		2012		2011
Current tax (benefit) expense:
Federal	$	(459)	$	(2,007)	$	656
State		90		210		236
		(369)		(1,797)		892
Deferred income tax benefit:
Federal		(4,592)		(3,110)		(1,233)
State		(1,540)		(1,658)		(317)
		(6,132)		(4,768)		(1,550)

Total income tax benefit	$	(6,501)	$	(6,565)	$	(658)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table provides a reconciliation of tax computed at the statutory federal tax rate of 34.0% to the actual tax expense for each of the three years ended December 31.

(Dollars in thousands)	2013		2012		2011
Tax at federal statutory rate	34.0	%	34.0	%	34.0	%
Tax effect of:
Tax-exempt income	0.4		0.6		8.8
Non-deductible goodwill impairment charges	-		-		(6.0)
Other non-deductible expenses	(0.2)		(0.2)		(2.1)
State income taxes, net of federal benefit	5.9		5.9		3.6
Other	0.2		0.2		4.0

Actual income tax expense rate	40.3	%	40.5	%	42.3	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of December 31.

(Dollars in thousands)	2013		2012
Deferred tax assets:
Allowance for credit losses	$	4,298	$	6,421
Reserve for off-balance sheet commitments		180		166
Net operating loss carry forward		14,430		3,367
Write-downs of other real estate owned		400		742
Deferred income		1,108		2,370
Accrued expenses		936		1,353
Loss on termination of cash flow hedge		-		540
Unrealized losses on interest rate caps		-		803
Unrealized losses on available-for-sale securities		296		-
Other		83		55
Total deferred tax assets		21,731		15,817
Deferred tax liabilities:
Depreciation		463		515
Purchase accounting adjustments		1,305		1,009
Deferred capital gain on branch sale		438		451
Deferred gains on interest rate swaps		-		169
Unrealized gains on available-for-sale securities		-		1,282
Other		435		208
Total deferred tax liabilities		2,641		3,634
Net deferred tax assets	$	19,090	$	12,183