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FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
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.

  

          Quoted Prices in              
          Active Markets for     Significant Other     Significant  
    March 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2013     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
Government-sponsored mortgage-backed residential   $ 142,524     $ -     $ 142,524     $ -  
Government-sponsored collateralized mortgage obligations     110,922               110,922          
State and municipal     14,866       -       14,866       -  
Corporate bonds     55,728       -       55,728       -  
                                 
Total   $ 324,040     $ -     $ 324,040     $ -  

 

          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 obligations     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     $ -  
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 period ended March 31, 2012. We did not have any Level 3 assets measured at fair value on a recurring basis at March 31, 2013.

  

    Fair Value Measurements  
    Using Significant  
    Unobservable Inputs  
    (Level 3)  
       
    Three Months Ended  
    March 31,  
(Dollars in thousands)     2012  
         
Beginning balance   $ 264  
Total gains or losses:        
Impairment charges on securities     -  
Included in other comprehensive income     4  
Purchases     -  
Sales or calls     -  
Settlements     -  
Transfers in and/or out of Level 3     -  
Ending balance   $ 268  
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  
    March 31,     Identical Assets     Observable Inputs     Unobservable Inputs  
(Dollars in thousands)   2013     (Level 1)     (Level 2)     (Level 3)  
                         
Assets:                                
Impaired loans:                                
Commercial   $ 1     $ -     $ -     $ 1  
Commercial Real Estate:                                
Land Development     1,775       -       -       1,775  
Other     14,761       -       -       14,761  
Residential Mortgage     266       -       -       266  
Consumer and Home Equity     264       -       -       264  
Real estate acquired                                
through foreclosure:                              
Commercial Real Estate:                                
Land Development     994       -       -       994  
Building Lots     118       -       -       118  
Other     7,492       -       -       7,492  
Residential Mortgage     89       -       -       89  

 

          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
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 March 31, 2013.

 

    Fair     Valuation   Unobservable   Range (Weighted  
(Dollars in thousands)   Value     Technique(s)   Input(s)   Average)  
                     
Impaired loans:                        
   Commercial   $ 1     Market value approach   Adjustment for receivables     0.00% (1)  
                   and inventory discounts        
   Commercial Real Estate:                        
       Land Development     1,107     Income approach   Discount or capitalization rate     25.00% (1)  
      668     Sales comparison approach   Adjustment for differences     3.39% (1)  
                  between comparable sales        
                         
       Other     13,517     Income approach   Discount or capitalization rate     8.50%-11.00% (9.19%)  
      1,244     Sales comparison approach   Adjustment for differences     10.00%-21.87% (19.69%)  
                  between comparable sales        
                         
   Residential Mortgage     266     Sales comparison approach   Adjustment for differences     0.00%-3.87% (1.06%)  
                  between comparable sales        
                         
   Consumer and Home Equity     264     Sales comparison approach   Adjustment for differences     0.00%-2.25% (1.82%)  
                  between comparable sales        
                         
Real estate acquired through                        
  foreclosure:                        
   Commercial Real Estate:                        
       Land Development     312     Income approach   Discount or capitalization rate     8.50%-17.50% (11.24%)  
      682     Sales comparison approach   Adjustment for differences     25.00% (1)  
                  between comparable sales        
                         
       Building Lots     118     Sales comparison approach   Adjustment for differences     11.00% (1)  
                  between comparable sales        
                         
       Other     6,826     Income approach   Discount or capitalization rate     8.50%-10.50% (8.91%)  
      666     Sales comparison approach   Adjustment for differences     2.75%-9.00% (4.26%)  
                  between comparable sales        
                         
   Residential Mortgage     89     Sales comparison approach   Adjustment for differences     6.40% (1)  
                  between comparable sales        

  

 

(1) Unobservable inputs with a single discount listed include only one property.
Fair Value, by Balance Sheet Grouping [Table Text Block]

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

 

          March 31, 2013  
(Dollars in thousands)   Carrying     Fair Value Measurements  
    Value     Total     Level 1     Level 2     Level 3  
Financial assets:                                        
Cash and due from banks   $ 48,391     $ 48,391     $ 6,006     $ 42,385     $ -  
Mortgage loans held for sale     1,490       1,515       -       1,515       -  
Loans, net     473,051       476,126       -       -       476,126  
Accrued interest receivable     2,460       2,460       -       -       2,460  
FHLB stock     4,430       N/A       N/A       N/A        N/A  
                                         
Financial liabilities:                                        
Deposits     855,207       867,229       -       867,229       -  
Advances from Federal Home Loan Bank     12,561       13,883       -       13,883       -  
Subordinated debentures     18,000       13,013       -       -       13,013  
Accrued interest payable     3,461       3,461       -       3,461       -  

 

          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       -