FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2014

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
	September 30,		Identical Assets		Observable Inputs		Unobservable Inputs
(Dollars in thousands)	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Government-sponsored collateralized mortgage obligations	$	82,963	$	-	$	82,963	$	-
Government-sponsored mortgage-backed residential		78,263		-		78,263		-
Asset backed-collateralized loan obligations		14,465		-		14,465		-
Corporate bonds		12,333		2,782		9,551		-
State and municipal		8,638		-		8,638		-
U.S. Government-sponsored entities and agencies		8,329		-		8,329		-
Commercial mortgage backed		3,096		-		3,096		-
Total	$	208,087	$	2,782	$	205,305	$	-

			Quoted Prices in
			Active Markets for		Significant Other		Significant
	December 31,		Identical Assets		Observable Inputs		Unobservable Inputs
(Dollars in thousands)	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Government-sponsored collateralized mortgage obligations	$	100,816	$	-	$	100,816	$	-
Government-sponsored mortgage-backed residential		74,324		-		74,324		-
Corporate bonds		43,698		10,768		32,930		-
Asset backed-collateralized loan obligations		34,478		-		34,478		-
State and municipal		11,923		-		11,923		-
Commercial mortgage backed		4,043		-		4,043		-
Total	$	269,282	$	10,768	$	258,514	$	-

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
	September 30,		Identical Assets		Observable Inputs		Unobservable Inputs
(Dollars in thousands)	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Impaired loans:
Commercial Real Estate:
Land Development	$	127	$	-	$	-	$	127
Other		8,553		-		-		8,553
Residential Mortgage		43		-		-		43
Real estate acquired through foreclosure:
Commercial Real Estate:
Land Development		475		-		-		475
Other		1,574		-		-		1,574
Residential Mortgage		404		-		-		404
Other real estate owned:
Bank Lots		769		-		-		769

			Quoted Prices in
			Active Markets for		Significant Other		Significant
	December 31,		Identical Assets		Observable Inputs		Unobservable Inputs
(Dollars in thousands)	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Impaired loans:
Commercial Real Estate:
Land Development	$	625	$	-	$	-	$	625
Other		5,618		-		-		5,618
Residential Mortgage		56		-		-		56
Consumer and Home Equity		36		-		-		36
Real estate acquired through foreclosure:
Commercial Real Estate:
Land Development		947		-		-		947
Other		2,667		-		-		2,667
Residential Mortgage		634		-		-		634
Other real estate owned:
Bank Lots		792		-		-		792

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 September 30, 2014.

 

	Fair		Valuation	Unobservable	Range (Weighted
(Dollars in thousands)	Value		Technique(s)	Input(s)	Average)
Impaired loans:
Commercial Real Estate:
Land Development		127	Sales comparison approach	Adjustment for differences between comparable sales	3.00% (1)
Other		8,240	Income approach	Discount or capitalization rate	8.50%-9.75% (9.31%)
		313	Sales comparison approach	Adjustment for differences between comparable sales	17.00% (1)
Residential Mortgage		43	Sales comparison approach	Adjustment for differences between comparable sales	6.00% (1)
Real estate acquired through foreclosure:
Commercial Real Estate:
Land Development		461	Income approach	Discount or capitalization rate	27.00% (1)
		14	Sales comparison approach	Adjustment for differences between comparable sales	0.00% (1)
Other		968	Income approach	Discount or capitalization rate	9.40%-9.75% (9.68%)
		606	Sales comparison approach	Adjustment for differences between comparable sales	20.00%-25.00% (21.05%)
Residential Mortgage		404	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-8.00% (3.86%)
Real estate owned:
Bank Lots		769	Sales comparison approach	Adjustment for differences between comparable sales	10.00% (1)

(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:

			September 30, 2014
(Dollars in thousands)	Carrying		Fair Value Measurements
	Value		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	56,976	$	56,976	$	6,545	$	50,431	$	-
Mortgage loans held for sale		847		860		-		860		-
Loans, net		419,245		418,989		-		-		418,989
Accrued interest receivable		1,664		1,664		-		707		957
FHLB stock		4,080		N/A		N/A		N/A		N/A
Financial liabilities:
Deposits		673,747		675,867		-		675,867		-
Advances from Federal Home Loan Bank		12,236		12,709		-		12,709		-
Subordinated debentures		18,000		13,598		-		-		13,598
Accrued interest payable		5,516		5,516		-		5,516		-

			December 31, 2013
(Dollars in thousands)	Carrying		Fair Value Measurements
	Value		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	65,988	$	65,988	$	6,596	$	59,392	$	-
Mortgage loans held for sale		470		478		-		478		-
Loans, net		450,771		453,592		-		-		453,592
Accrued interest receivable		2,224		2,224		-		1,136		1,088
FHLB stock		4,430		N/A		N/A		N/A		N/A
Financial liabilities:
Deposits		783,487		788,230		-		788,230		-
Advances from Federal Home Loan Bank		12,389		13,315		-		13,315		-
Subordinated debentures		18,000		13,038		-		-		13,038
Accrued interest payable		4,485		4,485		-		4,485		-