INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015		2014		2013
Current tax expense (benefit):
Federal	$	247	$	-	$	(459)
State		287		225		90
		534		225		(369)
Deferred income tax expense (benefit):
Federal		3,369		2,516		(4,592)
State		505		320		(1,540)
		3,874		2,836		(6,132)

Total income tax expense (benefit)	$	4,408	$	3,061	$	(6,501)

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)	2015			2014			2013
Tax at federal statutory rate		34.0	%		34.0	%		(34.0)	%
Tax effect of:
Tax-exempt income		(0.4)			(0.9)			(0.4)
Other non-deductible expenses		0.2			0.3			0.2
State income taxes, net of federal benefit		4.5			4.4			(5.9)
Other		(0.1)			(0.1)			(0.2)

Actual income tax expense (benefit) rate		38.2	%		37.7	%		(40.3)	%

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)	2015		2014
Deferred tax assets:
Allowance for credit losses	$	3,316	$	3,072
Reserve for off-balance sheet commitments		121		121
Net operating loss carry forward		9,069		13,265
Write-downs of other real estate owned		308		355
Deferred income		1,155		1,132
Unrealized gains on available-for-sale securities		48		-
Accrued expenses		946		918
Other		191		80
Total deferred tax assets		15,154		18,943
Deferred tax liabilities:
Depreciation		271		372
Amortization on loans FMV adjustment		140		-
Purchase accounting adjustments		1,988		1,751
Deferred capital gain on branch sale		411		425
Unrealized gains on available-for-sale securities		-		214
Other		212		437
Total deferred tax liabilities		3,022		3,199
Net deferred tax assets	$	12,132	$	15,744