INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 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 September 30, 2012 and December 31, 2011 were:

(Dollars in thousands)	Amortized Cost		Gross  Unrealized  Gains		Gross Unrealized  Losses			Fair Value
(Unaudited)
September 30, 2012
U.S. Agencies	$	1,363	$	7	$	—		$	1,370
Government sponsored MBS
Residential	57,605		679		(5		)	58,279
Non-Government sponsored MBS
Residential	98		3		—			101
Municipal securities
North Carolina	2,969		214		—			3,183
Total at September 30, 2012	$	62,035	$	903	$	(5	)	$	62,933
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 September 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 scheduled payment date. MBS may mature earlier because of principal prepayments.

(Dollars in thousands)	September 30, 2012
(Unaudited)	Fair Value		Amortized Cost
U.S. Agencies
Due after one year through five years	$	1,007	$	1,000
Due after five years through ten years	363		363
Total US Agencies	$	1,370	$	1,363
Government sponsored MBS
Residential
Due after one year through five years	$	147	$	137
Due after five years through ten years	181		169
Due after ten years	57,951		57,299
Total government sponsored MBS	$	58,279	$	57,605
Non-Government sponsored MBS
Residential
Due after ten years	$	101	$	98
Municipals (all North Carolina)
Due within one year	492		466
Due after one year through five years	$	2,082	$	1,895
Due after five years through ten years	609		608
Total municipals	$	3,183	$	2,969

Schedule of Unrealized Loss on Investments [Table Text Block]

As of September 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
September 30, 2012
Government sponsored MBS
Residential	$	2,535	$	(5	)	$	—	$	—	$	2,535	$	(5	)
Municipals
Total at September 30, 2012	$	2,535	$	(5	)	$	—	$	—	$	2,535	$	(5	)

(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	)