INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2014

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, 2014:
U.S. Treasury	$	5,210	$	5	$	-	$	5,215
U.S. Government agencies		75,220		87		347		74,960
Mortgage-backed		154,525		1,230		452		155,303
Equity		624		6		-		630
Total	$	235,579	$	1,328	$	799	$	236,108
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
Held-to-maturity securities:
December 31, 2014:
U.S. Government agencies	$	2,791	$	-	$	83	$	2,708
States and political subdivisions		1,839		147		-		1,986
Total	$	4,630	$	147	$	83	$	4,694
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

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, 2014.

	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:
December 31, 2014
U.S. Government agencies	$	41,574	$	138	$	6,954	$	209	$	48,528	$	347
Mortgage-backed		12,933		44		26,828		408		39,761		452
Equity		-		-		630		-		630		-
Total	$	54,507	$	182	$	34,412	$	617	$	88,919	$	799
Held-to-maturity securities:
December 31, 2014
U.S. Government agencies	$	-	$	-	$	2,708	$	83	$	2,708	$	83
	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:
December 31, 2013
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:
December 31, 2013
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, 2014.

	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	$	2,001	$	2,002	$	221	$	223
Due after one year through five years		75,099		74,981		712		764
Due after five years through ten years		11,361		11,405		403		459
Due after ten years		146,494		147,090		3,294		3,248
		234,955		235,478		4,630		4,694
Equity securities		624		630		-		-
Total	$	235,579	$	236,108	$	4,630	$	4,694

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, 2014				December 31, 2013
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Pledged available-for-sale securities	$	115,162	$	115,458	$	101,070	$	100,507

There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2014 or 2013.

Proceeds from sales of investment securities were $988 thousand, $40.4 million, and $6.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. Gross gains from sales of investment securities were $23 thousand, $913 thousand and $278 thousand for the years ended December 31, 2014, 2013, and 2012, respectively. There were no gross losses in 2014, 2013 and 2012.