INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2013

Investment Securities Tables

Schedule of Investment Securities

The amortized cost, gross unrealized gains and losses and fair values of investment securities at June 30, 2013 and December 31, 2012 were:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Unaudited)
June 30, 2013
US government agencies	$	2,000	$	—	$	(108	)	$	1,892
Government sponsored MBS
Residential		52,654		303		(206	)		52,751
Municipal securities
North Carolina		1,491		34		(35	)		1,490
Total at June 30, 2013	$	56,145	$	337	$	(349	)	$	56,133
December 31, 2012
US government agencies	$	1,322	$	5		—		$	1,327
Government sponsored MBS
Residential		57,333		627		(29	)		57,931
Municipal securities
North Carolina		1,497		56		—			1,553
Total at December 31, 2012	$	60,152	$	688	$	(29	)	$	60,811

Schedule of Investment Securities maturities

(Dollars in thousands)	As of June 30, 2013
(Unaudited)	Fair Value		Amortized Cost
US government agencies
Due after five years through ten years	$	1,892	$	2,000
Total US government agencies	$	1,892	$	2,000
Government sponsored MBS
Residential
Due within one year	$	15,869	$	15,824
Due after one year through five years		26,178		26,119
Due after five years through ten years		7,218		7,222
Due after ten years		3,486		3,489
Total government sponsored MBS	$	52,751	$	52,654
Municipal bonds
North Carolina
Due within one year	$	480	$	466
Due after one year through five years		443		424
Due after five years through ten years		567		601
Total North Carolina municipal bonds	$	1,490	$	1,491

(Dollars in thousands)	As of December 31, 2012
(Unaudited)	Fair Value		Amortized Cost
US government agencies
Due within one year	$	1,005	$	1,000
Due after one year through five years		322		322
Total US government agencies	$	1,327	$	1,322
Government sponsored MBS
Residential
Due after one year through five years	$	135	$	126
Due after five years through ten years		171		161
Due after ten years		57,625		57,046
Total government sponsored MBS	$	57,931	$	57,333
Municipal bonds
North Carolina
Due within one year	$	488	$	466
Due after one year through five years		458		425
Due after five years through ten years		607		606
Total North Carolina municipal bonds	$	1,553	$	1,497

Schedule of Securities in an unrealized los position

As of June 30, 2013 and December 31, 2012, the fair value of securities with gross unrealized losses by length of time that the individual securities have been in an unrealized loss position is as follows:

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater				Total
(Unaudited)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2013
US government agencies	$	1,892	$	(108	)	$	—	$	—	$	1,892	$	(108	)
Government sponsored MBS
Residential		21,255		(206	)		21		—		21,276		(206	)
Municipal securities
North Carolina		567		(35	)		—		—		567		(35	)
Total at June 30, 2013	$	23,714	$	(349	)	$	21	$	—	$	23,735	$	(349	)

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2012
Government sponsored MBS
Residential	$	8,027	$	(29	)	$	21	$	—	$	8,048	$	(29	)
Total at December 31, 2012	$	8,027	$	(29	)	$	21	$	—	$	8,048	$	(29	)