FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of financial assets measured at fair value on a recurring and nonrecurring basis and the change in fair value for those specific financial instruments in which fair value has been elected

The following tables present financial assets measured at fair value on a recurring and nonrecurring basis and the change in fair value for those specific financial instruments in which fair value has been elected. (there were no financial liabilities measured at fair value for the periods being reported) (in thousands):

	Fair Value Measurements at March 31, 2014
			Quoted Prices
			In Active		Significant
			Markets for		Other		Significant
	Assets		Identical		Observable		Unobservable
	Measured at		Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Recurring Basis:
Assets
Securities available for sale:
State, county, and municipal securities	$	34,885	$	—	$	34,885	$	—
Mortgage-backed securities		93,509		—		93,509		—
Corporate securities		9,995		—		9,995		—
		138,389		—		138,389		—
Nonrecurring Basis:
Assets
Collateral Dependent Impaired loans:
Commercial Real Estate	$	10,886	$	—	$	—	$	10,886
Single-family Residential		479		—		—		479
Other real estate owned		6,752		—		—		6,752
		18,117		—		—		18,117

	Fair Value Measurements at December 31, 2013
			Quoted Prices
			In Active		Significant
			Markets for		Other		Significant
	Assets		Identical		Observable		Unobservable
	Measured at		Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Recurring Basis:
Assets
Securities available for sale:
State, county, and municipal securities	$	34,802	$	—	$	34,802	$	—
Mortgage-backed securities		96,267		—		96,267		—
Corporate securities		9,976		—		9,976		—
		141,045		—		141,045		—
Nonrecurring Basis:
Assets
Collateral Dependent Impaired loans:
Commercial Real Estate	$	10,702	$	—	$	—	$	10,702
Single-family Residential		360		—		—		360
Other real estate owned		7,404		—		—		7,404
		18,466		—		—		18,466

Significant unobservable inputs used for assets and liabilities measured at fair value on a recurring or non-recurring basis

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows (dollars in thousands):

	Fair Value at	Valuation	Unobservable
	March 31, 2014	Technique	Inputs	Range
Collateral Dependent Impaired Loans:
Commercial Real Estate	$                      10,886	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
Single-family Residential	$                            479	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
OREO	$                        6,752	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%

As of December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows (dollars in thousands):

	Fair Value at	Valuation	Unobservable
	December 31, 2013	Technique	Inputs	Range
Collateral Dependent Impaired Loans:
Commercial Real Estate	$                      10,702	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
Single-family Residential	$                            360	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
OREO	$                        7,404	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%

Schedule of carrying values and estimated fair values of the Company's financial instruments

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2014 (in thousands):

	March 31, 2014
	Carrying		Fair Value Measurements
	Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	5,322	$	5,322	$	5,322	$	—	$	—
Interest-bearing deposits with banks		43,889		43,889		43,889		—		—
Certificates of deposit		350		350		350		—		—
Investment securities		138,629		138,629		—		138,629		—
Other investments		748		748		748		—		—
Loans—net		178,127		178,797		—		—		178,797
Cash surrender value of life insurance		10,008		10,008		10,008		—		—
Financial liabilities:
Deposits		348,190		348,996		208,534		140,462		—
Advances from Federal Home Loan Bank		268		268		—		268		—
	Notional		Estimated
	Amount		Fair Value
Off-balance-sheet financial instruments:
Commitments to extend credit	$	24,499		—
Commercial letters of credit	$	2,027		—

The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2013 are as follows:

	December 31, 2013
	Carrying		Fair Value Measurements
	Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	6,340	$	6,340	$	6,340	$	—	$	—
Interest-bearing deposits with banks		22,827		22,827		22,827		—		—
Certificates of deposit		350		350		350		—		—
Investment securities		141,285		141,285		—		141,285		—
Other investments		874		874		874		—		—
Loans—net		182,119		183,150		—		—		183,150
Cash surrender value of life insurance		9,948		9,948		9,948		—		—
Financial liabilities:
Deposits		336,962		337,768		195,884		141,884		—
Advances from Federal Home Loan Bank		273		273		—		273		—
	Notional		Estimated
	Amount		Fair Value
Off-balance-sheet financial instruments:
Commitments to extend credit	$	26,313		—
Commercial letters of credit	$	2,125		—