FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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	$	29,816	$	—	$	29,816	$	—
Mortgage-backed securities		90,299		—		90,299		—
Corporate securities		10,017		—		10,017		—
		130,132				130,132
Nonrecurring Basis:
Assets
Collateral Dependent Impaired loans:
Commercial Real Estate	$	7,446	$	—	$	—	$	7,446
Single-family Residential		527		—		—		527
Construction and Development		220		—		—		220
Other real estate owned		4,601		—		—		4,601
		12,794						12,794

	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 September 30, 2014, the significant unobservable inputs used in the fair value measurements were as follows (dollars in thousands):

	Fair Value at		Valuation	Unobservable
(Dollars in thousands)	September 30, 2014		Technique	Inputs	Range
Collateral Dependent Impaired Loans:
Commercial Real Estate	$	7,446	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
Single-family Residential	$	527	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
Construction & Development	$	220	Appraised Value	Negative adjustment for selling costs and changes in market conditions since appraisal	5% - 20%
OREO	$	4,601	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 September 30, 2014 (in thousands):

	September 30, 2014
	Carrying		Fair Value Measurements
	Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks		2,860		2,860		2,860		—		—
Interest-bearing deposits with banks		52,636		52,636		52,636		—		—
Certificates of deposit		350		350		350		—		—
Investment securities		130,372		130,373		—		130,373		—
Other investments		792		792		792		—		—
Loans—net		184,044		183,150		—		—		183,958
Cash surrender value of life insurance		10,196		10,196		10,196		—		—
Financial liabilities:
Deposits		347,941		337,768		207,751		141,121		—
Advances from Federal Home Loan Bank		259		259		—		259		—
		Notional		Estimated
		Amount		Fair Value
Off-balance-sheet financial instruments:
Commitments to extend credit		28,092		—
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		—