INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2012

INVESTMENT SECURITIES [Abstract]

Available-for-sale Securities [Table Text Block]

The amortized cost, gross unrealized gains and losses and fair values of investment securities at June 30, 2012 and December 31, 2011 were:

(Dollars in thousands)	Amortized Cost		Gross  Unrealized  Gains		Gross Unrealized  Losses			Fair Value
June 30, 2012
U.S. Agencies	$	406	$	—	$	—		$	406
Government sponsored MBS
Residential	51,209		449		(64		)	51,594
Non-Government sponsored MBS
Residential	112		2		—			114
Municipals
North Carolina	2,972		183		(13		)	3,142
Total at June 30, 2012	$	54,699	$	634	$	(77	)	$	55,256
December 31, 2011
U.S. Agencies	$	483	$	—	$	—		$	483
Government sponsored MBS
Residential	$	30,399	$	416	$	(26	)	$	30,789
Non-Government sponsored MBS
Residential	133		2		—			135
Municipals
North Carolina	3,505		197		—			3,702
Out of state	2,444		42		—			2,486
Total at December 31, 2011	$	36,964	$	657	$	(26	)	$	37,595

Marketable Securities [Table Text Block]

The amortized cost and estimated market value of securities as of June 30, 2012 by contractual maturities are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. MBS, which are not due at a single maturity date, are grouped based upon the final payment date. MBS may mature earlier because of principal prepayments.

(Dollars in thousands)	June 30, 2012
	Fair Value		Amortized Cost
U.S. Agencies
Due after five years through ten years	$	406	$	406
Total US Agencies	$	406	$	406
Government sponsored MBS
Residential
Due after one year through five years	$	68	$	64
Due after five years through ten years	316		295
Due after ten years	51,210		50,850
Total government sponsored MBS	$	51,594	$	51,209
Non-Government sponsored MBS
Residential
Due after ten years	$	114	$	112
Municipals
North Carolina
Due after one year through five years	2,545		2,362
Due after five years through ten years	597		610
Total North Carolina municipals	$	3,142	$	2,972

Schedule of Unrealized Loss on Investments [Table Text Block]

As of June 30, 2012 and December 31, 2011, 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
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2012
Government sponsored MBS
Residential	$	17,845	$	(64	)	$	—	$	—	$	17,845	$	(64	)
Municipals
North Carolina	597		(13		)	—		—		597		(13		)
Total at June 30, 2012	$	18,442	$	(77	)	$	—	$	—	$	18,442	$	(77	)

(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, 2011
Government sponsored MBS
Residential	$	9,669	$	(26	)	$	—	$	—	$	9,669	$	(26	)
Total at December 31, 2011	$	9,669	$	(26	)	$	—	$	—	$	9,669	$	(26	)