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FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Assets measured at fair value on a recurring basis as of September 30, 2012 were:



(Dollars in thousands)
Description	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
US Agencies	$	1,370	$	—	$	1,370	$	—
Government sponsored MBS
Residential	58,279		—		58,279		—
Non-Government sponsored MBS
Residential	101		—		101		—
Municipal securities
North Carolina	3,183		—		3,183		—
Mortgage Servicing Rights	41		—		—		41
Total	$	62,974	$	—	$	62,933	$	41

Assets measured at fair value on a recurring basis as of December 31, 2011 were:



(Dollars in thousands)
Description	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
US Agencies	$	483	$	—	$	483	$	—
Government sponsored MBS
Residential	30,789		—		30,789		—
Non-Government sponsored MBS
Residential	135		—		135		—
Municipal securities
North Carolina	3,702		—		3,702		—
Out of state	2,486		—		2,486		—
Mortgage Servicing Rights	46		—		—		46
	$	37,641	$	—	$	37,595	$	46

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The table below displays the change in all recurring Level 3 Assets between December 31, 2011 and September 30, 2012:



(Dollars in thousands)	Mortgage Servicing Rights

Beginning balance (December 31, 2011)	$	46
Amortization	(3		)
Ending Balance (June 30, 2012)	$	43
Amortization	(2		)
Ending Balance (September 30, 2012)	$	41

Fair Value Schedule of Financial Assets Measured on a Nonrecurring Basis [Table Text Block]

Assets measured at fair value on a nonrecurring basis as of September 30, 2012 and December 31, 2011 were:



(Dollars in thousands)
Description	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Nonrecurring:
Other real estate owned	$	3,072	$	—	$	—	$	3,072
Impaired and TDR Loans:
Commercial	590		—		—		590
Commercial real estate	8,821		—		—		8,821
Faith-based non-profit	13,505		—		—		13,505
Residential real estate	1,844		—		—		1,844
Total	$	27,832	$	—	$	—	$	27,832

Description	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Nonrecurring:
Other real estate owned	$	3,215	$	—	$	—	$	3,215
Impaired and TDR Loans:
Commercial	590		—		—		590
Commercial real estate	6,709		—		—		6,709
Faith-based non-profit	13,760		—		—		13,760
Residential real estate	1,637		—		—		1,637
Total	$	25,911	$	—	$	—	$	25,911

Fair Value, Measurement Inputs, Disclosure [Table Text Block]



Description	September 30, 2012		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Nonrecurring:
Other real estate owned	$	3,072	discounted appraisals	collateral discounts	6	-20%
Impaired and TDR loans	24,760		discounted appraisals	collateral discounts	6	-20%
Mortgage Servicing Rights	41		discounted cash flow	Public Securities Association ("PSA") speed	374	%
				cost to service	5.50	%
				investor yield	9.00	%
Total	$	27,873

Description	December 31, 2011		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Nonrecurring:
Other real estate owned	$	3,215	discounted appraisals	collateral discounts	6	-20%
Impaired and TDR loans	22,696		discounted appraisals	collateral discounts	6	-20%
Mortgage Servicing Rights	46		discounted cash flow	PSA speed	306	%
				cost to service	5.50	%
				investor yield	9.00	%
Total	$	25,957

Fair Value Schedule of Financial Assets and Liabilities measured on a recurring and nonrecurring basis [Table Text Block]

As of September 30, 2012 and December 31, 2011, the carrying amounts and associated estimated fair value of financial assets and liabilities of the Company are as follows:



(Dollars in thousands)	September 30, 2012
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	51,516	$	51,516	$	51,516	$	—	$	—
Marketable securities	62,933		62,933		—		62,933		—
Loans, net of allowances for loan losses	175,443		177,389		—		—		177,389
Accrued interest receivable	850		850		850		—		—
Liabilities:
Non-maturity deposits	$	123,304	$	123,304	$	123,304	$	—	$	—
Maturity deposits	138,068		137,853		—		137,853		—
Other borrowings	2,987		2,879		—		—		2,879
Accrued interest payable	81		81		81		—		—
	December 31, 2011
Assets:	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	61,296	$	61,296	$	61,296	$	—	$	—
Marketable securities	37,595		37,595		—		37,595		—
Loans, net of allowances for loan losses	184,234		188,545		—		—		188,545
Accrued interest receivable	764		764		764		—		—
Liabilities:
Non-maturity deposits	$	123,488	$	123,488	$	123,488	$	—	$	—
Maturity deposits	135,656		135,348		—		135,348		—
Other borrowings	2,939		2,676		—		—		2,676
Accrued interest payable	196		196		196		—		—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

+ Details