INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

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)	2014		2013		2012
Current tax expense (benefit):
Federal	$	-	$	(459)	$	(2,007)
State		225		90		210
		225		(369)		(1,797)
Deferred income tax expense (benefit):
Federal		2,516		(4,592)		(3,110)
State		320		(1,540)		(1,658)
		2,836		(6,132)		(4,768)

Total income tax expense (benefit)	$	3,061	$	(6,501)	$	(6,565)

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 (benefit) for each of the three years ended December 31.

(Dollars in thousands)	2014		2013		2012
Tax at federal statutory rate	34.0	%	(34.0)	%	(34.0)	%
Tax effect of:
Tax-exempt income	(0.9)		(0.4)		(0.6)
Other non-deductible expenses	0.3		0.2		0.2
State income taxes, net of federal benefit	4.4		(5.9)		(5.9)
Other	(0.1)		(0.2)		(0.2)

Actual income tax expense (benefit) rate	37.7	%	(40.3)	%	(40.5)	%

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)	2014		2013
Deferred tax assets:
Allowance for credit losses	$	3,072	$	4,298
Reserve for off-balance sheet commitments		121		180
Net operating loss carry forward		13,265		14,430
Write-downs of other real estate owned		355		400
Deferred income		1,132		1,108
Accrued expenses		918		936
Unrealized losses on available-for-sale securities		-		296
Other		80		83
Total deferred tax assets		18,943		21,731
Deferred tax liabilities:
Depreciation		372		463
Purchase accounting adjustments		1,751		1,305
Deferred capital gain on branch sale		425		438
Unrealized gains on available-for-sale securities		214		-
Other		437		435
Total deferred tax liabilities		3,199		2,641
Net deferred tax assets	$	15,744	$	19,090