LOANS (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans are summarized as follows:

	September 30,		December 31,
(Dollars in thousands)	2013		2012

Commercial Real Estate (CRE):
Other-CRE other than Land
Development and Building Lots	$	263,509	$	290,424
Land Development		22,395		28,310
Building Lots		1,599		2,151
Residential mortgage		101,281		110,025
Consumer and home equity		53,988		57,888
Commercial		20,394		19,931
Indirect consumer		12,938		16,211
		476,104		524,940
Less:
Net deferred loan origination fees		(73)		(105)
Allowance for loan losses		(12,224)		(17,265)
		(12,297)		(17,370)

Net Loans	$	463,807	$	507,570

Allowance for Credit Losses on Financing Receivables by Portfolio Segment [Table Text Block]

The following tables present the activity in the allowance for loan losses by portfolio segment for the quarter and nine months ending September 30, 2013 and 2012:

Three Months Ended
September 30, 2013			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Beginning Balance	$	908	$	14,054	$	375	$	396	$	214	$	15,947
Provision for loan losses		177		(790)		49		67		(3)		(500)
Charge-offs		(48)		(3,076)		(73)		(111)		(45)		(3,353)
Recoveries		10		63		13		8		36		130
Total ending allowance balance	$	1,047	$	10,251	$	364	$	360	$	202	$	12,224

Nine Months Ended
September 30, 2013			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Beginning Balance	$	1,236	$	14,815	$	501	$	442	$	271	$	17,265
Provision for loan losses		(95)		(1,175)		(81)		90		(64)		(1,325)
Charge-offs		(142)		(3,528)		(73)		(209)		(102)		(4,054)
Recoveries		48		139		17		37		97		338
Total ending allowance balance	$	1,047	$	10,251	$	364	$	360	$	202	$	12,224

Three Months Ended
September 30, 2012			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Beginning Balance	$	1,483	$	12,169	$	803	$	525	$	320	$	15,300
Provision for loan losses		(156)		2,831		16		37		(57)		2,671
Change in allowance associated with probable
branch divestitures		18		212		(30)		1		-		201
Charge-offs		(126)		(234)		-		(53)		(58)		(471)
Recoveries		13		51		-		(39)		98		123
Total ending allowance balance	$	1,232	$	15,029	$	789	$	471	$	303	$	17,824

Nine Months Ended
September 30, 2012			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Beginning Balance	$	1,422	$	13,830	$	922	$	610	$	397	$	17,181
Provision for loan losses		66		4,504		(36)		135		(71)		4,598
Change in allowance associated with probable
branch divestitures		(7)		(369)		(36)		(56)		-		(468)
Charge-offs		(313)		(3,038)		(62)		(229)		(157)		(3,799)
Recoveries		64		102		1		11		134		312
Total ending allowance balance	$	1,232	$	15,029	$	789	$	471	$	303	$	17,824

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2013 and 2012 and December 31, 2012:

September 30, 2013			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	197	$	3,550	$	68	$	51	$	-	$	3,866
Collectively evaluated for impairment		850		6,701		296		309		202		8,358

Total ending allowance balance	$	1,047	$	10,251	$	364	$	360	$	202	$	12,224

Loans:
Loans individually evaluated for impairment	$	1,353	$	40,629	$	3,015	$	620	$	-	$	45,617
Loans collectively evaluated for impairment		19,041		246,874		98,266		53,368		12,938		430,487

Total ending loans balance	$	20,394	$	287,503	$	101,281	$	53,988	$	12,938	$	476,104

December 31, 2012			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	252	$	7,593	$	86	$	51	$	-	$	7,982
Collectively evaluated for impairment		984		7,222		415		391		271		9,283

Total ending allowance balance	$	1,236	$	14,815	$	501	$	442	$	271	$	17,265

Loans:
Loans individually evaluated for impairment	$	1,071	$	43,513	$	213	$	188	$	-	$	44,985
Loans collectively evaluated for impairment		18,860		277,372		109,812		57,700		16,211		479,955

Total ending loans balance	$	19,931	$	320,885	$	110,025	$	57,888	$	16,211	$	524,940

September 30, 2012			Commercial		Residential		Consumer &		Indirect
	Commercial		Real Estate		Mortgage		Home Equity		Consumer		Total
(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	229	$	8,000	$	378	$	95	$	7	$	8,709
Collectively evaluated for impairment		1,003		7,029		411		376		296		9,115
Loans held for sale		-		-		-		-		-		-

Total ending allowance balance	$	1,232	$	15,029	$	789	$	471	$	303	$	17,824

Loans:
Loans individually evaluated for impairment	$	1,029	$	57,655	$	1,093	$	255	$	57	$	60,089
Loans collectively evaluated for impairment		20,070		303,891		112,800		58,117		18,423		513,301
Loans held for sale		(775)		(36,878)		(3,583)		(5,616)		-		(46,852)

Total ending loans balance	$	20,324	$	324,668	$	110,310	$	52,756	$	18,480	$	526,538

Impaired Financing Receivables [Table Text Block]

The following tables’ present loans individually evaluated for impairment by class of loans as of September 30, 2013 and 2012 and December 31, 2012. The difference between the unpaid principal balance and recorded investment represents partial write downs/charge offs taken on individual impaired credits. The recorded investment and average recorded investment in loans exclude accrued interest receivable and loan origination fees.

							Three Months Ended						Nine Months Ended
							September 30, 2013						September 30, 2013
September 30, 2013	Unpaid				Allowance for		Average		Interest		Cash Basis		Average			Interest		Interest
	Principal		Recorded		Loan Losses		Recorded		Income		Interest		Recorded			Income		Income
(Dollars in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment			Recognized		Recognized

With no related allowance recorded:
Commercial	$	1,177	$	973	$	-	$	1,001	$	9	$	9	$	815	$	18	$	18
Commercial Real Estate:
Land Development		2,220		2,195		-		2,253		27		27		3,125		114		114
Building Lots		477		212		-		212		-		-		212		-		-
Other		25,475		20,048		-		14,964		161		161		14,042		444		444
Residential Mortgage		2,525		2,525		-		2,733		21		21		2,212		45		45
Consumer and Home Equity		357		357		-		376		3		3		293		6		6
Indirect Consumer		-		-		-		-		-		-		-		-		-

With an allowance recorded:
Commercial		380		380		197		283		2		2		310		7		7
Commercial Real Estate:
Land Development		2,206		2,206		1,015		2,568		31		31		2,621		95		95
Building Lots		-		-		-		-		-		-		-		-		-
Other		15,970		15,968		2,535		18,183		195		195		18,980		599		599
Residential Mortgage		514		490		68		484		4		4		375		8		8
Consumer and Home Equity		281		263		51		266		2		2		269		6		6
Indirect Consumer		-		-		-		-		-		-		-		-		-

Total	$	51,582	$	45,617	$	3,866	$	43,323	$	455	$	455	$	43,254	$	1,342	$	1,342

December 31, 2012	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
(Dollars in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	588	$	588	$	-	$	1,070	$	39	$	39
Commercial Real Estate:
Land Development		5,595		4,873		-		5,728		237		237
Building Lots		477		212		-		810		14		14
Other		22,121		16,500		-		25,051		961		961
Residential Mortgage		-		-		-		-		-		-
Consumer and Home Equity		-		-		-		-		-		-
Indirect Consumer		-		-		-		-		-		-

With an allowance recorded:
Commercial		483		483		252		564		21		21
Commercial Real Estate:
Land Development		2,674		2,674		899		2,436		101		101
Building Lots		-		-		-		191		3		3
Other		19,254		19,254		6,694		20,075		772		772
Residential Mortgage		213		213		86		1,191		24		24
Consumer and Home Equity		188		188		51		260		6		6
Indirect Consumer		-		-		-		54		1		1

Total	$	51,593	$	44,985	$	7,982	$	57,430	$	2,179	$	2,179

							Three Months Ended						Nine Months Ended
							September 30, 2012						September 30, 2012
September 30, 2012	Unpaid				Allowance for		Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest		Recorded		Income		Interest
(Dollars in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	844	$	722	$	-	$	857	$	6	$	6	$	1,191	$	34	$	34
Commercial Real Estate:
Land Development		8,780		6,290		-		6,031		71		71		5,941		177		177
Building Lots		1,036		683		-		857		7		7		959		13		13
Other		18,577		15,911		-		22,319		222		222		27,189		781		781
Residential Mortgage		-		-		-		-		-		-		-		-		-
Consumer and Home Equity		-		-		-		-		-		-		-		-		-
Indirect Consumer		-		-		-		-		-		-		-		-		-

With an allowance recorded:
Commercial		307		307		229		356		3		3		584		17		17
Commercial Real Estate:
Land Development		1,950		1,950		316		1,345		16		16		2,377		71		71
Building Lots		-		-		-		-		-		-		238		3		3
Other		34,027		32,821		7,684		26,524		264		264		20,281		583		583
Residential Mortgage		1,119		1,093		378		1,096		5		5		1,436		29		29
Consumer and Home Equity		255		255		95		279		1		1		278		4		4
Indirect Consumer		57		57		7		48		-		-		68		1		1

Total	$	66,952	$	60,089	$	8,709	$	59,712	$	595	$	595	$	60,542	$	1,713	$	1,713

Schedule of Recorded Investment in Restructured, Nonaccrual and Loans Past Due [Table Text Block]

The following tables present the recorded investment in restructured, non-accrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2013 and December 31, 2012.

					Restructured
					Loans Past Due		Loans Past Due
September 30, 2013					Over 90 Days		Over 90 Days		Non-Accrual
	Restructured on		Restructured on		Still		Still		Excluding
(Dollars in thousands)	Non-Accrual Status		Accrual Status		Accruing		Accruing		Restructured

Commercial	$	-	$	183	$	-	$	-	$	434
Commercial Real Estate:
Land Development		-		1,892		-		-		302
Building Lots		-		-		-		-		212
Other		7,819		17,223		4,837		2,238		4,115
Residential Mortgage		108		192		-		-		1,162
Consumer and Home Equity		-		97		-		-		262
Indirect Consumer		-		-		-		-		24

Total	$	7,927	$	19,587	$	4,837	$	2,238	$	6,511

					Restructured
					Loans Past Due		Loans Past Due
December 31, 2012					Over 90 Days		Over 90 Days		Non-Accrual
	Restructured on		Restructured on		Still		Still		Excluding
(Dollars in thousands)	Non-Accrual Status		Accrual Status		Accruing		Accruing		Restructured

Commercial	$	31	$	221	$	-	$	-	$	562
Commercial Real Estate:
Land Development		675		3,053		-		-		695
Building Lots		-		170		-		-		212
Other		9,047		19,080		-		-		9,356
Residential Mortgage		-		303		-		-		827
Consumer and Home Equity		-		24		-		-		37
Indirect Consumer		-		-		-		-		13

Total	$	9,753	$	22,851	$	-	$	-	$	11,702

Past Due Financing Receivables [Table Text Block]

The following table presents the aging of the recorded investment in past due loans as of September 30, 2013 and December 31, 2012 by class of loans:

September 30, 2013	30-59		60-89		Greater than
	Days		Days		90 Days		Total		Loans Not
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Past Due		Total

Commercial	$	-	$	-	$	434	$	434	$	19,960	$	20,394
Commercial Real Estate:
Land Development		2,206		-		302		2,508		19,887		22,395
Building Lots		-		-		212		212		1,387		1,599
Other		3,861		23		19,009		22,893		240,616		263,509
Residential Mortgage		279		923		1,270		2,472		98,809		101,281
Consumer and Home Equity		324		28		262		614		53,374		53,988
Indirect Consumer		141		30		24		195		12,743		12,938

Total	$	6,811	$	1,004	$	21,513	$	29,328	$	446,776	$	476,104

December 31, 2012	30-59		60-89		Greater than
	Days		Days		90 Days		Total		Loans Not
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Past Due		Total

Commercial	$	-	$	95	$	562	$	657	$	19,274	$	19,931
Commercial Real Estate:
Land Development		361		-		1,228		1,589		26,721		28,310
Building Lots		-		-		212		212		1,939		2,151
Other		1,264		1,239		13,449		15,952		274,472		290,424
Residential Mortgage		3,588		995		827		5,410		104,615		110,025
Consumer and Home Equity		351		255		45		651		57,237		57,888
Indirect Consumer		246		130		13		389		15,822		16,211

Total	$	5,810	$	2,714	$	16,336	$	24,860	$	500,080	$	524,940

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables present loans by class modified as troubled debt restructurings that occurred during the periods ending September 30, 2013 and 2012:

	Three Months Ended					Three Months Ended
	September 30, 2013					September 30, 2012
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number	Recorded		Recorded		Number	Recorded		Recorded
(Dollars in thousands)	of Loans	Investment		Investment		of Loans	Investment		Investment

Troubled Debt Restructurings:
Commercial	-	$	-	$	-	-	$	-	$	-
Commercial Real Estate:
Land Development	-		-		-	-		-		-
Building Lots	-		-		-	-		-		-
Other	-		-		-	1		58		58
Residential Mortgage	-		-		-	-		-		-
Consumer and Home Equity	-		-		-	-		-		-
Indirect Consumer	-		-		-	-		-		-

Total	-	$	-	$	-	1	$	58	$	58

	Nine Months Ended					Nine Months Ended
	September 30, 2013					September 30, 2012
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number	Recorded		Recorded		Number	Recorded		Recorded
(Dollars in thousands)	of Loans	Investment		Investment		of Loans	Investment		Investment

Troubled Debt Restructurings:
Commercial	-	$	-	$	-	1	$	1,094	$	1,094
Commercial Real Estate:
Land Development	-		-		-	3		4,143		4,002
Building Lots	-		-		-	2		370		370
Other	5		3,512		3,512	6		1,175		1,175
Residential Mortgage	-		-		-	-		-		-
Consumer and Home Equity	2		74		74	-		-		-
Indirect Consumer	-		-		-	-		-		-

Total	7	$	3,586	$	3,586	12	$	6,782	$	6,641

Troubled Debt Restructurings on Financing Receivables Subsequently Defaulted [Table Text Block]

The following tables present loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the periods ending September 30, 2013 and 2012:

	Three Months Ended			Three Months Ended
	September 30, 2013			September 30, 2012
	Number	Recorded		Number	Recorded
(Dollars in thousands)	of Loans	Investment		of Loans	Investment

Troubled Debt Restructurings:
Commercial	-	$	-	-	$	-
Commercial Real Estate:
Land Development	-		-	-		-
Building Lots	-		-	-		-
Other	-		-	-		-
Real Estate Construction	-		-	-		-
Residential Mortgage	-		-	-		-
Consumer and Home Equity	-		-	-		-
Indirect Consumer	-		-	-		-

Total	-	$	-	-	$	-

	Nine Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2012
	Number	Recorded		Number	Recorded
(Dollars in thousands)	of Loans	Investment		of Loans	Investment

Troubled Debt Restructurings:
Commercial	-	$	-	-	$	-
Commercial Real Estate:
Land Development	-		-	2		3,278
Building Lots	-		-	-		-
Other	-		-	1		10,068
Real Estate Construction	-		-	-		-
Residential Mortgage	-		-	-		-
Consumer and Home Equity	-		-	-		-
Indirect Consumer	-		-	-		-

Total	-	$	-	3	$	13,346

Financing Receivable Credit Quality Indicators [Table Text Block]

As of September 30, 2013and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

September 30, 2013
(Dollars in thousands)	Not Rated		Pass		Criticized		Substandard		Doubtful		Loss		Total

Commercial	$	-	$	19,041	$	-	$	1,353	$	-	$	-	$	20,394
Commercial Real Estate:
Land Development		-		14,706		3,288		4,401		-		-		22,395
Building Lots		-		931		456		212		-		-		1,599
Other		-		209,660		17,793		36,056		-		-		263,509
Residential Mortgage		97,421		-		845		3,015		-		-		101,281
Consumer and Home Equity		53,192		-		73		723		-		-		53,988
Indirect Consumer		12,899		-		1		38		-		-		12,938

Total	$	163,512	$	244,338	$	22,456	$	45,798	$	-	$	-	$	476,104

December 31, 2012
(Dollars in thousands)	Not Rated		Pass		Criticized		Substandard		Doubtful		Loss		Total

Commercial	$	-	$	16,736	$	2,000	$	1,195	$	-	$	-	$	19,931
Commercial Real Estate:
Land Development		-		17,744		3,059		7,507		-		-		28,310
Building Lots		-		1,447		492		212		-		-		2,151
Other		-		235,954		18,297		36,173		-		-		290,424
Residential Mortgage		105,148		-		442		4,435		-		-		110,025
Consumer and Home Equity		56,593		-		569		726		-		-		57,888
Indirect Consumer		16,129		-		10		72		-		-		16,211

Total	$	177,870	$	271,881	$	24,869	$	50,320	$	-	$	-	$	524,940

Schedule of Performing and Non Performing Loans by Class of Loans [Table Text Block]

The following table presents the unpaid principal balance in residential mortgage, consumer and home equity and indirect consumer loans based on payment activity as of September 30, 2013 and December 31, 2012:

September 30, 2013	Residential		Consumer &		Indirect
(Dollars in thousands)	Mortgage		Home Equity		Consumer

Performing	$	100,011	$	53,726	$	12,914
Restructured on non-accrual		108		-		-
Non-accrual		1,162		262		24

Total	$	101,281	$	53,988	$	12,938

December 31, 2012	Residential		Consumer &		Indirect
(Dollars in thousands)	Mortgage		Home Equity		Consumer

Performing	$	109,198	$	57,851	$	16,198
Restructured on non-accrual		-		-		-
Non-accrual		827		37		13

Total	$	110,025	$	57,888	$	16,211