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FAIR VALUE (Tables)
 12 Months Ended
Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Assets measured at fair value on a recurring basis are summarized below: There were no transfers between Level 1 and Level 2 during the periods presented. During 2012 all five of the trust preferred securities we held were called for early redemption or were sold.

          Quoted Prices in              
          Active Markets for     Significant Other     Significant  
    December 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2012     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
U.S. Treasury and agencies   $ 8,278     $ -     $ 8,278     $ -  
Government-sponsored mortgage-backed residential     144,889       -       144,889       -  
Government-sponsored collateralized mortgage obligation     150,147               150,147          
Private asset backed     5,132       -       5,132       -  
State and municipal     12,718       -       12,718       -  
Corporate bonds     32,967       -       32,967       -  
                                 
Total   $ 354,131     $ -     $ 354,131     $ -  

 

    Quoted Prices in              
          Active Markets for     Significant Other     Significant  
    December 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2011     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
U.S. Treasury and agencies   $ 25,028     $ -     $ 25,028     $ -  
Government-sponsored mortgage-backed residential     264,691       -       264,691       -  
State and municipal     23,794       -       23,794       -  
Trust preferred securities     264       -       -       264  
                                 
Total   $ 313,777     $ -     $ 313,513     $ 264
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods ended December 31, 2012 and 2011. Our Level 3 trust preferred securities were called or sold in the fourth quarter of 2012 and had no securities of this nature at December 31, 2012.

 

    Fair Value Measurements  
    Using Significant  
    Unobservable Inputs  
    (Level 3)  
       
    Year Ended  
    December 31,  
(Dollars in thousands)   2012     2011  
             
Beginning balance   $ 264     $ 346  
Total gains or losses:                
Impairment charges on securities     -       (83 )
Included in other comprehensive income     18       292  
Purchases     -       -  
Sales or calls     (282 )     (291 )
Settlements     -       -  
Transfers in and/or out of Level 3     -       -  
Ending balance   $ -     $ 264
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]

The table below summarizes changes in unrealized gains and losses recorded in earnings for the year ended December 31 for Level 3 assets and liabilities that are still held at December 31.

 

    Changes in Unrealized Gains/Losses  
    Relating to Assets Still Held at Reporting  
    Date for the Year Ended  
    December 31,  
(Dollars in thousands)   2011  
       
Interest income on securities   $ -  
Other changes in fair value     83  
Total   $ 83
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

Assets measured at fair value on a nonrecurring basis are summarized below:

 

          Quoted Prices in              
          Active Markets for     Significant Other     Significant  
    December 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2012     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
Impaired loans:                                
Commercial   $ 231     $ -     $ -     $ 231  
Commercial Real Estate:                                
Land Development     1,775       -       -       1,775  
Other     12,560       -       -       12,560  
Residential Mortgage     127       -       -       127  
Consumer and Home Equity     137       -       -       137  
Real estate acquired through foreclosure:                                
Commercial Real Estate:                                
Land Development     2,459       -       -       2,459  
Building Lots     2,220       -       -       2,220  
Other     8,350       -       -       8,350  
Residential Mortgage     224       -       -       224  

          Quoted Prices in              
          Active Markets for     Significant Other     Significant  
    December 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2011     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
Impaired loans:                                
Commercial   $ 666     $ -     $ -     $ 666  
Commercial Real Estate:                                
Land Development     2,510       -       -       2,510  
Building Lots     212       -       -       212  
Other     14,454       -       -       14,454  
Residential Mortgage     1,200       -       -       1,200  
Consumer and Home Equity     84       -       -       84  
Indirect Consumer     84       -       -       84  
Real estate acquired through foreclosure:                                
Commercial     728       -       -       728  
Commercial Real Estate:                                
Land Development     4,285       -       -       4,285  
Building Lots     5,369       -       -       5,369  
Other     6,300       -       -       6,300  
Residential Mortgage     172       -       -       172  
Trust preferred security held-to-maturity     24       -       -       24  
Loans held for sale     45,829       -       45,829       -
Fair Value, by Balance Sheet Grouping [Table Text Block]

The estimated fair value of financial instruments, not previously presented, is as follows:

 

                December 31, 2012  
(Dollars in thousands)   Carrying           Fair Value Measurements  
    Value     Total     Level 1     Level 2     Level 3  
Financial assets:                                        
Cash and due from banks   $ 63,103     $ 63,103     $ 6,468     $ 56,635     $ -  
Mortgage loans held for sale     3,887       3,967       -       3,967       -  
Loans, net     492,740       493,998       -       -       493,998  
Accrued interest receivable     2,690       2,690       -       -       2,690  
FHLB stock     4,805       N/A       N/A       N/A       N/A  
                                         
Financial liabilities:                                        
Deposits     922,620       934,637       -       934,637       -  
Advances from Federal Home Loan Bank     12,596       13,944       -       13,944       -  
Subordinated debentures     18,000       12,695       -       -       12,695  
Accrued interest payable     3,121       3,121       -       3,121       -  

 

    December 31, 2011  
    Carrying     Fair  
    Value     Value  
Financial assets:                
Cash and due from banks   $ 92,236     $ 92,236  
Securities held-to-maturity     -       -  
Mortgage loans held for sale     10,187       10,326  
Loans, net     654,862       657,280  
Accrued interest receivable     3,168       3,168  
FHLB stock     4,805       N/A  
                 
Financial liabilities:                
Deposits     1,122,794       1,134,843  
Advances from Federal Home Loan Bank     27,736       30,888  
Subordinated debentures     18,000       12,448  
Accrued interest payable     1,817       1,817
Fair Value, Measurements, Nonrecurring [Member]
  
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2012.

 

    Fair     Valuation   Unobservable   Range (Weighted
(Dollars in thousands)   Value     Technique(s)   Input(s)   Average)
                   
Impaired loans:                    
Commercial   $ 231     Market value approach   Adjustment for receivables and inventory discounts   50.00% (1)
Commercial Real Estate:                    
Land Development     1,107     Income approach   Discount or capitalization rate   25.00% (1)
      668     Sales comparison approach   Adjustment for differences between comparable sales   3.39% (1)
                     
Other     10,820     Income approach   Discount or capitalization rate   8.50%-16.00% (9.92%)
      1,740     Sales comparison approach   Adjustment for differences between comparable sales   5.90%-21.87% (16.09%)
                     
Residential Mortgage     127     Sales comparison approach   Adjustment for differences between comparable sales   0.00%-3.87% (1.76%)
                     
Consumer and Home Equity     137     Sales comparison approach   Adjustment for differences between comparable sales   0.00%-2.25% (1.30%)
                     
Real estate acquired through foreclosure:                    
Commercial Real Estate:                    
Land Development     1,649     Income approach   Discount or capitalization rate   8.50%-24.00% (21.96%)
      810     Sales comparison approach   Adjustment for differences between comparable sales   25.00% (1)
                     
Building Lots     2,102     Income approach   Discount or capitalization rate   26.00% (1)
      118     Sales comparison approach   Adjustment for differences between comparable sales   11.00% (1)
                     
Other     7,413     Income approach   Discount or capitalization rate   8.50%-10.50% (8.95%)
      937     Sales comparison approach   Adjustment for differences between comparable sales   2.75%-9.00% (5.62%)
                     
Residential Mortgage     224     Sales comparison approach   Adjustment for differences between comparable sales   0.00%-8.30% (5.79%)

 

(1) Unobservable inputs with a single discount listed include only one property.