INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Provision For Income Taxes [Table Text Block]

Provision for income taxes is as follows:

	Year Ended December 31,
(Dollars in thousands)	2012			2011			2010
Current	$	(18	)	$	(2,853	)	$	239
Deferred		(906	)		(3,179	)		(3,244	)
Net Operating Loss		(2,907	)		(5,269	)		-
		(3,831	)		(11,301	)		(3,005	)
Valuation allowance		3,813			8,318			4,791
Total income tax expense/(benefit)	$	(18	)	$	(2,983	)	$	1,786

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision for income taxes differs from the amount computed at the statutory rates as follows:

	Year Ended December 31,
(Dollars in thousands)	2012			2011			2010
Federal statutory rate		34.0	%		34.0	%		34.0	%
Change in valuation allowance		(45.3	)		(31.8	)		(63.0	)
Tax-exempt interest income		1.2			1.3			3.8
Increase in cash surrender value of life insurance		1.5			0.4			1.6
Stock option expense		(0.5	)		(0.1	)		(0.5	)
Effect of state tax expense recorded		-			-			0.5
Low income Housing tax credits		12.7			7.1			-
Other		(3.4	)		0.5			0.1
Effective rate		0.2	%		11.4	%		-23.5	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of deferred income taxes relate to the following:

	December 31,
(Dollars in thousands)	2012			2011
Deferred tax assets:
Allowance for loan losses	$	5,965		$	6,029
Net operating loss carryforward		8,176			5,269
AMT credit carryforward		196			196
Low income housing credits		2,922			1,862
Intangibles and fair value adjustments		120			90
Other than temporary impairment		-			718
Writedowns of real estate owned		3,917			3,560
Nonaccrual loan interest		1,253			1,024
Accrued liabilities and other		230			330
Total deferred tax assets		22,779			19,078
Deferred tax liabilities:
Depreciation		1,982			2,134
Net unrealized gain on securities available-for-sale		1,299			1,318
Federal Home Loan Bank stock		1,049			1,049
Deferred gain on like-kind exchange		4			8
Other		290			227
Total deferred tax liabilities		4,624			4,736
Net temporary differences		18,155			14,342
Valuation allowance		(18,155	)		(14,342	)
Net deferred tax assets	$	-		$	-