10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________________________ to _____________________________

Commission File Number: 000-51166

Community Shores Bank Corporation

(Exact name of registration as specified in its charter)

Michigan	38-3423227
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1030 W. Norton Avenue, Muskegon, MI	49441
(Address of principal executive offices)	(Zip Code)

(231) 780-1800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

The aggregate value of the common equity held by non-affiliates (persons other than directors and executive officers) of the registrant, computed by reference to the closing price of the common stock, and number of shares held, as of the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $3,562,000.

As of March 15, 2014, there were issued and outstanding 1,468,800 shares of the registrant’s common stock.

DOCUMENTS INCORPORATED BY REFERENCE

None

EXPLANATORY NOTE

The purpose of this Amendment No. 1 on Form 10-K/A is to amend the Annual Report on Form 10-K of Community Shores Bank Corporation for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2014 (the “Form 10-K”), for the sole purpose of furnishing the Interactive Data Files as Exhibit 101 in accordance with Rule 405 of Regulation S-T to the form 10-K. Exhibit 101 provides the financial statements and related notes from the Form 10-K formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-K. This Amendment No. 1 to the Form 10-K continues to speak as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-K.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(b) Exhibits:

EXHIBIT NO.	EXHIBIT DESCRIPTION
31.1	Rule 13a-14(a) Certification of the principal executive officer.
31.2	Rule 13a-14(a) Certification of the principal financial officer.
32.1	Section 1350 Certification of the Chief Executive Officer.
32.2	Section 1350 Certification of the Chief Financial Officer.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.DEF	XBRL Taxonomy Extension Definition
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

2

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on May 15, 2015.

COMMUNITY SHORES BANK CORPORATION

/s/ Heather D. Brolick

Heather D. Brolick

President and Chief Executive Officer 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on May 15, 2015.

/s/ Gary F. Bogner	/s/ Bruce J. Essex
Gary F. Bogner, Chairman of the Board	Bruce J. Essex , Director
(non-officer)
/s/ Heather D. Brolick	/s/ Julie K. Greene
Heather D. Brolick, President, Chief Executive Officer and Director (principal executive officer)	Julie K. Greene , Director
/s/ Stanley L. Boelkins	/s/ Tracey A. Welsh
Stanley L. Boelkins, Director	Tracey A. Welsh, Senior Vice President, Chief Financial Officer and Treasurer (principal financial and accounting officer)
/s/ Robert L. Chandonnet
Robert L. Chandonnet, Vice Chairman of the Board (non-officer)

3

EX-31.1

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Heather D. Brolick, President, Chief Executive Officer and Secretary of Community Shores Bank Corporation, certify that:

1. I have reviewed this report on Form 10-K of Community Shores Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:     May 15, 2015	/s/ Heather D. Brolick
	Heather D. Brolick
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Tracey A. Welsh, Senior Vice President, Chief Financial Officer and Treasurer of Community Shores Bank Corporation, certify that:

1. I have reviewed this report on Form 10-K of Community Shores Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:       May 15, 2015	/s/ Tracey A. Welsh
	Tracey A. Welsh
	Senior Vice President, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the annual report on Form 10-K for the year ended December 31, 2013 (the "Form 10-K") of Community Shores Bank Corporation (the "Issuer").

I, Heather D. Brolick, President and Chief Executive Officer of the Issuer, certify that:

(i) the Form 10-K fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(ii) to my knowledge, the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of and for the period covered by the report.

Dated: May 15, 2015

/s/ Heather D. Brolick

Heather D. Brolick

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the annual report on Form 10-K for the year ended December 31, 2013 (the "Form 10-K") of Community Shores Bank Corporation (the "Issuer").

I, Tracey A. Welsh, Senior Vice President, Chief Financial Officer and Treasurer of the Issuer, certify that:

(i) the Form 10-K fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(ii) to my knowledge, the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of and for the period covered by the report.

Dated: May 15, 2015

/s/ Tracey A. Welsh

Tracey A. Welsh

Senior Vice President, Chief Financial Officer and Treasurer

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets measured at fair value on a recurring basis are summarized below for the years ended December 31, 2013 and 2012:

			Fair Value Measurements Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
December 31, 2013	Total		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
US Treasury	$	2,542,032	$	2,542,032	$	0	$	0
US Government and federal agency		15,867,406		0		15,867,406		0
Municipals		1,591,141		0		1,591,141		0
Mortgage-backed and collateralized mortgage obligations– residential		11,229,667		0		11,229,667		0
Total	$	31,230,246	$	2,542,032	$	28,688,214	$	0
Servicing assets	$	37,217			$	37,217
December 31, 2012
Available for sale securities:
US Treasury	$	4,094,532	$	4,094,532	$	0	$	0
US Government and federal agency		20,259,743		0		20,259,743		0
Municipals		2,333,741		0		2,333,741		0
Mortgage-backed and collateralized mortgage obligations– residential		14,772,380		0		14,772,380		0
Total	$	41,460,396	$	4,094,532	$	37,365,864	$	0
Servicing assets	$	41,650	$	0	$	41,650	$	0

Fair Value Measurements, Nonrecurring [Table Text Block]

Assets measured at fair value on a non-recurring basis are summarized below. Impaired loans and foreclosed assets are included if the fair value of such assets was revised during the quarterly period then ended.

			Significant
			Unobservable Inputs
	Total		(Level 3)
December 31, 2013
Impaired loans:
Commercial	$	23,820	$	23,820
Commercial Real Estate:
General		0		0
Consumer:
Lines of credit		140,859		140,859
Other		0		0
Residential		599,607		599,607
Total	$	764,286	$	764,286
Foreclosed assets:
Commercial Real Estate:
General	$	513,000	$	513,000
Residential		20,215		20,215
Total	$	533,215	$	533,215

			Significant
			Unobservable Inputs
	Total		(Level 3)
December 31, 2012
Impaired loans:
Commercial	$	84,755	$	84,755
Commercial Real Estate:
General		786,282		786,282
Residential		140,269		140,269
Total	$	1,011,306	$	1,011,306
Foreclosed assets:
Commercial Real Estate:
General	$	141,596	$	141,596
Construction		380,142		380,142
Total	$	521,738	$	521,738

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents information as of December 31, 2013 about significant unobservable inputs related to the Bank’s individually material¹ Level 3 financial assets, by class, measured on a non-recurring basis:

			Valuation		Significant Unobservable		Range			Weighted
	Fair Value		Technique (s)		Inputs		of Inputs			Average
December 31, 2013
Impaired loans:						Adjustments for differences between
Residential	$	536,524		Sales comparison approach		the comparable sales		17.1-29.8	%		23.8	%
						Adjustments for differences between
				Discounted cash flow		NPV of cash flow and RI		4.6-7.0	%		N/A
Total	$	572,682
Foreclosed assets:
Commercial Real Estate:						Adjustments for differences between
General	$	463,500		Sales comparison approach		the comparable sales		0-12.5	%		8.3	%
				Income approach				(20)-10	%		10	%
Total	$	463,500

¹ For purposes of this disclosure, only material Level 3 assets are disclosed. These assets are included in the total non-recurring Level 3 financial assets reported on page 77.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying amounts and estimated fair values of financial instruments, not previously presented above, were as follows at year-end:

			Fair Value Measurements
			at December 31, 2013 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets
Cash and cash equivalents	$	17,133	$	17,133	$	0	$	0	$	17,133
Loans held for sale		240		0		246		0		246
Loans, net (including impaired)		128,745		0		0		122,235		122,235
FHLB stock		451		N/A		N/A		N/A		N/A
Accrued interest receivable		467		8		117		342		467
Financial liabilities
Deposits		171,940		79,596		84,785		0		164,381
Federal funds purchased and repurchase agreements		8,428		0		8,428		0		8,428
Subordinated debentures		4,500		0		0		1,125		1,125
Notes payable		1,280		0		0		1,280		1,280
Accrued interest payable		506		4		32		137		173

			Fair Value Measurements
			at December 31, 2012 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets
Cash and cash equivalents	$	20,297	$	20,297	$	0	$	0	$	20,297
Loans held for sale		6,041		0		6,183		0		6,183
Loans, net (including impaired)		122,447		0		0		116,004		116,004
FHLB stock		451		N/A		N/A		N/A		N/A
Accrued interest receivable		592		12		163		417		592
Financial liabilities
Deposits		184,176		88,959		94,185		0		183,144
Federal funds purchased and repurchase agreements		10,190		0		10,190		0		10,190
Subordinated debentures		4,500		0		0		1,125		1,125
Notes payable		5,000		0		0		500		500
Accrued interest payable		1,156		4		64		81		149

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PREMISES AND EQUIPMENT (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Land & land improvements	$ 4,700,464	$ 4,700,464
Buildings & building improvements	6,201,507	6,132,163
Furniture, fixtures and equipment	3,864,940	3,800,460
Property, Plant and Equipment, Gross	14,766,911	14,633,087
Less: accumulated depreciation	5,621,444	5,212,201
Property, Plant and Equipment, Net	$ 9,145,467	$ 9,420,886

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LOANS (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
With a related allowance recorded, Recorded Investment	$ 9,596,934	$ 11,715,696
With a related allowance recorded, Unpaid Principal Balance	10,062,290	12,006,477
With a related allowance recorded, Related Allowance	1,610,904	1,810,376
With a related allowance recorded, Average Recorded Investment	9,604,753	13,252,818
With a related allowance recorded, Interest Income Recognized	311,905	369,644
With a related allowance recorded, Cash Basis Interest Recognized	308,281	294,061
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	1,049,046	2,147,075
With no related allowance recorded, Unpaid Principal Balance	1,059,514	2,295,401
With no related allowance recorded, Average Recorded Investment	1,326,391	2,413,625
With no related allowance recorded, Interest Income Recognized	36,446	66,634
With no related allowance recorded, Cash Basis Interest Recognized	34,382	56,123
With a related allowance recorded, Recorded Investment	116,684	1,141,219
With a related allowance recorded, Unpaid Principal Balance	116,194	1,139,885
With a related allowance recorded, Related Allowance	28,705	104,727
With a related allowance recorded, Average Recorded Investment	273,051	1,510,788
With a related allowance recorded, Interest Income Recognized	15,350	65,446
With a related allowance recorded, Cash Basis Interest Recognized	14,995	38,083
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	714,377	2,662,984
With no related allowance recorded, Unpaid Principal Balance	744,958	2,739,027
With no related allowance recorded, Average Recorded Investment	2,244,485	2,783,388
With no related allowance recorded, Interest Income Recognized	2,999	66,501
With no related allowance recorded, Cash Basis Interest Recognized	2,999	64,093
With a related allowance recorded, Recorded Investment	6,070,444	4,659,866
With a related allowance recorded, Unpaid Principal Balance	6,069,393	4,675,981
With a related allowance recorded, Related Allowance	1,302,677	1,489,569
With a related allowance recorded, Average Recorded Investment	4,634,901	5,228,456
With a related allowance recorded, Interest Income Recognized	226,872	142,583
With a related allowance recorded, Cash Basis Interest Recognized	226,872	112,299
Commercial Real Estate Construction Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	0	0
With no related allowance recorded, Unpaid Principal Balance	0	0
With no related allowance recorded, Average Recorded Investment	0	167,274
With no related allowance recorded, Interest Income Recognized	0	0
With no related allowance recorded, Cash Basis Interest Recognized	0	0
With a related allowance recorded, Recorded Investment	0	0
With a related allowance recorded, Unpaid Principal Balance	0	0
With a related allowance recorded, Related Allowance	0	0
With a related allowance recorded, Average Recorded Investment	0	21,201
With a related allowance recorded, Interest Income Recognized	0	0
With a related allowance recorded, Cash Basis Interest Recognized	0	0
Consumer Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	107,750	55,659
With no related allowance recorded, Unpaid Principal Balance	255,128	55,524
With no related allowance recorded, Average Recorded Investment	55,715	46,916
With no related allowance recorded, Interest Income Recognized	642	9,177
With no related allowance recorded, Cash Basis Interest Recognized	642	5,228
With a related allowance recorded, Recorded Investment	296,004	135,111
With a related allowance recorded, Unpaid Principal Balance	294,323	134,976
With a related allowance recorded, Related Allowance	155,095	40,180
With a related allowance recorded, Average Recorded Investment	191,689	176,507
With a related allowance recorded, Interest Income Recognized	10,289	3,897
With a related allowance recorded, Cash Basis Interest Recognized	9,097	3,431
Consumer Other Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	47,106	26,221
With no related allowance recorded, Unpaid Principal Balance	109,603	26,221
With no related allowance recorded, Average Recorded Investment	28,021	17,290
With no related allowance recorded, Interest Income Recognized	0	106
With no related allowance recorded, Cash Basis Interest Recognized	0	0
With a related allowance recorded, Recorded Investment	67,568	104,829
With a related allowance recorded, Unpaid Principal Balance	67,406	104,664
With a related allowance recorded, Related Allowance	36,792	48,870
With a related allowance recorded, Average Recorded Investment	89,464	114,664
With a related allowance recorded, Interest Income Recognized	1,877	2,048
With a related allowance recorded, Cash Basis Interest Recognized	1,877	1,923
Consumer Credit Card Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	0	0
With no related allowance recorded, Unpaid Principal Balance	0	0
With no related allowance recorded, Average Recorded Investment	0	0
With no related allowance recorded, Interest Income Recognized	0	0
With no related allowance recorded, Cash Basis Interest Recognized	0	0
With a related allowance recorded, Recorded Investment	0	0
With a related allowance recorded, Unpaid Principal Balance	0	0
With a related allowance recorded, Related Allowance	0	0
With a related allowance recorded, Average Recorded Investment	224	988
With a related allowance recorded, Interest Income Recognized	0	0
With a related allowance recorded, Cash Basis Interest Recognized	0	0
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	343,859	208,178
With no related allowance recorded, Unpaid Principal Balance	554,300	240,491
With no related allowance recorded, Average Recorded Investment	234,300	285,420
With no related allowance recorded, Interest Income Recognized	0	345
With no related allowance recorded, Cash Basis Interest Recognized	0	340
With a related allowance recorded, Recorded Investment	784,096	574,554
With a related allowance recorded, Unpaid Principal Balance	791,471	594,307
With a related allowance recorded, Related Allowance	87,635	127,030
With a related allowance recorded, Average Recorded Investment	526,512	486,301
With a related allowance recorded, Interest Income Recognized	17,430	12,907
With a related allowance recorded, Cash Basis Interest Recognized	17,417	12,541
Sub Total [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance recorded, Recorded Investment	2,262,138	5,100,117
With no related allowance recorded, Unpaid Principal Balance	2,723,503	5,356,664
With no related allowance recorded, Average Recorded Investment	3,888,912	5,713,913
With no related allowance recorded, Interest Income Recognized	40,087	142,763
With no related allowance recorded, Cash Basis Interest Recognized	38,023	125,784
With a related allowance recorded, Recorded Investment	7,334,796	6,615,579
With a related allowance recorded, Unpaid Principal Balance	7,338,787	6,649,813
With a related allowance recorded, Related Allowance	1,610,904	1,810,376
With a related allowance recorded, Average Recorded Investment	5,715,841	7,538,905
With a related allowance recorded, Interest Income Recognized	271,818	226,881
With a related allowance recorded, Cash Basis Interest Recognized	$ 270,258	$ 168,277

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RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]
Related Party Deposit Liabilities	$ 4,583,666	$ 6,885,332

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PREMISES AND EQUIPMENT (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Depreciation	$ 408,990	$ 397,832
Gain (Loss) on Disposition of Property Plant Equipment	1,000	220,889
Public Utilities, Property, Plant and Equipment, Land	2,500
Land [Member]
Property, Plant and Equipment [Line Items]
Gain (Loss) on Disposition of Property Plant Equipment	218,389
Proceeds from Sale of Land Held-for-use	$ 790,135

XML

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net income	$ 5,539,994	$ 267,838
Cash flows from financing activities
Net change in cash and cash equivalents	(3,164,374)	11,377,547
Beginning cash and cash equivalents	20,297,115	8,919,568
Ending cash and cash equivalents	17,132,741	20,297,115
Parent Company [Member]
Cash flows from operating activities
Net income	5,539,994	267,838
Equity in undistributed subsidiary income	(673,222)	(755,862)
Net realized gain on the extinguishment of debt	(5,263,653)	0
Net change in:
Other assets	(1,735)	20,578
Other liabilities	247,971	430,029
Net cash used by operating activities	(149,645)	(37,417)
Cash flows from (for) investing activities
Capital investment (into) redeemed from subsidiaries	(28,565)	11,230
Net cash from (used by) investing activities	(28,565)	11,230
Cash flows from financing activities
Draws on notes payable and line of credit	1,280,000	0
Repayment of note payable	(500,000)	0
Net cash from financing activities	780,000	0
Net change in cash and cash equivalents	601,790	(26,187)
Beginning cash and cash equivalents	7,746	33,933
Ending cash and cash equivalents	$ 609,536	$ 7,746

XML

LOANS (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Allowance for loan losses:
Beginning balance	$ 3,382,977	$ 5,299,454
Charge-offs	(672,970)	(2,141,187)
Recoveries	99,635	149,675
Provision for loan losses	0	(75,035)
Ending balance	2,809,642	3,382,977
Commercial Portfolio Segment [Member]
Allowance for loan losses:
Beginning balance	582,198	1,309,632
Charge-offs	(66,048)	(1,042,700)
Recoveries	80,507	86,663
Provision for loan losses	(257,609)	228,603
Ending balance	339,048	582,198
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses:
Beginning balance	2,266,302	3,386,433
Charge-offs	(25,025)	(954,701)
Recoveries	0	37,164
Provision for loan losses	(423,274)	(202,594)
Ending balance	1,818,003	2,266,302
Consumer Portfolio Segment [Member]
Allowance for loan losses:
Beginning balance	331,459	410,001
Charge-offs	(316,995)	(132,394)
Recoveries	19,128	25,848
Provision for loan losses	391,232	28,004
Ending balance	424,824	331,459
Residential Portfolio Segment [Member]
Allowance for loan losses:
Beginning balance	203,018	193,388
Charge-offs	(264,902)	(11,392)
Recoveries	0	0
Provision for loan losses	289,651	21,022
Ending balance	$ 227,767	$ 203,018

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The consolidated provision for federal income tax expense at December 31, 2013 and 2012 was as follows:

	2013		2012
Current payable	$	105,000	$	0
Deferred liability		0		0
	$	105,000	$	0

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

The net deferred tax asset includes the following amounts of deferred tax assets and liabilities as of December 31, 2013 and 2012:

	2013		2012
Deferred tax asset
Allowance for loan losses	$	527,146	$	720,764
Non-accrual loans		84,892		122,734
Deferred loan costs, net		18,477		18,918
AMT credit carryforward		85,306		0
Accrued Expenses (461h)		20,163		0
Foreclosed assets		1,069,467		1,359,106
Other		1,916		20,497
Net operating loss carryforward		2,555,381		3,971,753
		4,362,748		6,213,772
Deferred tax liabilities
Depreciation	$	(215,388)	$	(236,196)
Accretion on securities		(2,695)		(1,520)
Unrealized gain on securities available for sale		(217,229)		(217,229)
Prepaid expenses		(24,856)		(43,003)
Other		(11,645)		(11,645)
		(471,813)		(509,593)
	$	3,890,935	$	5,704,179
Valuation allowance		(3,890,935)		(5,704,179)
Net deferred tax asset	$	0	$	0

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

A reconciliation of the difference between federal income tax expense and the amount computed by applying the statutory rate of 34% in 2013 and 2012 is as follows:

	2013		2012
Tax at statutory rate	$	1,919,298	$	91,065
Tax-exempt interest income		(22,650)		(28,643)
Other		21,596		10,184
Change in valuation allowance		(1,813,244)		(72,606)
Federal income tax expense	$	105,000	$	0

XML

FAIR VALUE MEASUREMENTS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Available for sale securities:
Fair Value Measurements	$ 31,230,246	$ 41,460,396
Servicing assets	37,217	41,650
Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Fair Value Measurements	2,542,032	4,094,532
Servicing assets		0
Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Fair Value Measurements	28,688,214	37,365,864
Servicing assets	37,217	41,650
Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Fair Value Measurements	0	0
Servicing assets		0
Mortgage-backed and collateralized mortgage obligations- residential [Member]
Available for sale securities:
Fair Value Measurements	11,229,667	14,772,380
Mortgage-backed and collateralized mortgage obligations- residential [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Fair Value Measurements	0	0
Mortgage-backed and collateralized mortgage obligations- residential [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Fair Value Measurements	11,229,667	14,772,380
Mortgage-backed and collateralized mortgage obligations- residential [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Fair Value Measurements	0	0
Municipals [Member]
Available for sale securities:
Fair Value Measurements	1,591,141	2,333,741
Municipals [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Fair Value Measurements	0	0
Municipals [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Fair Value Measurements	1,591,141	2,333,741
Municipals [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Fair Value Measurements	0	0
US Treasury [Member]
Available for sale securities:
Fair Value Measurements	2,542,032	4,094,532
US Treasury [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Fair Value Measurements	2,542,032	4,094,532
US Treasury [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Fair Value Measurements	0	0
US Treasury [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Fair Value Measurements	0	0
US Government and federal agency [Member]
Available for sale securities:
Fair Value Measurements	15,867,406	20,259,743
US Government and federal agency [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Fair Value Measurements	0	0
US Government and federal agency [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Fair Value Measurements	15,867,406	20,259,743
US Government and federal agency [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Fair Value Measurements	$ 0	$ 0

XML

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Total Capital (Tier 1 and Tier 2) to risk-weighted assets of the Bank
Actual Amount	$ 11,420,073	$ 10,760,348
Actual Ratio	8.48%	7.88%
Minimum Required For Capital Adequacy Purposes Amount	10,769,246	10,928,836
Minimum Required For Capital Adequacy Purposes Ratio	8.00%	8.00%
Minimum Required Under Consent Order Amount	14,807,713	15,027,149
Minimum Required Under Consent Order Ratio	11.00%	11.00%
Tier 1 (Core) Capital to risk-weighted assets of the Bank
Actual Amount	9,723,466	9,032,034
Actual Ratio	7.22%	6.61%
Minimum Required For Capital Adequacy Purposes Amount	5,384,623	5,464,418
Minimum Required For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 (Core) Capital to average assets of the Bank
Actual Amount	9,723,466	9,032,034
Actual Ratio	5.24%	4.53%
Minimum Required For Capital Adequacy Purposes Amount	7,423,426	7,976,194
Minimum Required For Capital Adequacy Purposes Ratio	4.00%	4.00%
Minimum Required Under Consent Order Amount	$ 15,774,781	$ 16,949,413
Minimum Required Under Consent Order Ratio	8.50%	8.50%

XML

DEPOSITS (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
2014	$ 37,160,846
2015	31,894,144
2016	11,762,926
2017	3,019,839
2018	510,030
Time Deposits	$ 84,347,785	$ 93,418,910

XML

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 17,132,741		$ 20,297,115	$ 8,919,568
Other assets	810,590		715,200
Total assets	190,779,338		204,231,363
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable	1,280,000		5,000,000
Subordinated debentures	4,500,000		4,500,000
Shareholders' equity	3,662,869	4,000,000	(1,239,096)	(1,420,382)
Total liabilities and shareholders' equity	190,779,338		204,231,363
Parent Company [Member]
ASSETS
Cash and cash equivalents	609,536		7,746	33,933
Investment in subsidiaries	9,408,524		9,344,766
Other assets	3,110		1,375
Total assets	10,021,170		9,353,887
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued expenses and other liabilities	578,301		1,092,983
Notes payable	1,280,000		5,000,000
Subordinated debentures	4,500,000		4,500,000
Shareholders' equity	3,662,869		(1,239,096)
Total liabilities and shareholders' equity	$ 10,021,170		$ 9,353,887

XML

FAIR VALUE MEASUREMENTS (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013
Impaired Loans Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 572,682
Impaired Loans Receivable [Member] | Sales Comparison Approach [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	536,524
Fair Value Measurements, Valuation Techniques	Sales comparison approach
Fair Value Measurements Unobservable Inputs	Adjustments for differences between the comparable sales
Impaired Loans Receivable [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	29.80%
Impaired Loans Receivable [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	17.10%
Impaired Loans Receivable [Member] | Sales Comparison Approach [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	23.80%
Impaired Loans Receivable [Member] | Discounted cash flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	Discounted cash flow
Fair Value Measurements Unobservable Inputs	Adjustments for differences between NPV of cash flow and RI
Impaired Loans Receivable [Member] | Discounted cash flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	7.00%
Impaired Loans Receivable [Member] | Discounted cash flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	4.60%
Foreclosed Assets Held For Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	463,500
Foreclosed Assets Held For Sale [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	(20.00%)
Foreclosed Assets Held For Sale [Member] | Sales Comparison Approach [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 463,500
Fair Value Measurements, Valuation Techniques	Sales comparison approach
Fair Value Measurements Unobservable Inputs	Adjustments for differences between the comparable sales
Foreclosed Assets Held For Sale [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	12.50%
Foreclosed Assets Held For Sale [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	0.00%
Foreclosed Assets Held For Sale [Member] | Sales Comparison Approach [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	8.30%
Foreclosed Assets Held For Sale [Member] | Income Approach [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	Income approach
Foreclosed Assets Held For Sale [Member] | Income Approach [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	10.00%
Foreclosed Assets Held For Sale [Member] | Income Approach [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Comparability Adjustments	10.00%

XML

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest expense	$ (1,232,623)	$ (1,889,064)
Federal income tax expense	105,000	0
Net income	5,539,994	267,838
Other comprehensive loss	(638,029)	(86,552)
Comprehensive income	4,901,965	181,286
Parent Company [Member]
Other income	227	83
Gain on the extinguishment of debt	5,263,653	0
Interest expense	(199,767)	(429,959)
Other expense	(92,341)	(58,148)
Income (loss) before income tax benefit and undistributed subsidiary income	4,971,772	(488,024)
Equity in undistributed subsidiary income	673,222	755,862
Federal income tax expense	105,000	0
Net income	5,539,994	267,838
Other comprehensive loss	(638,029)	(86,552)
Comprehensive income	$ 4,901,965	$ 181,286

XML

STOCK OPTIONS (Details) (USD $)	12 Months Ended
	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding at beginning of year	15,300
Options, Granted	0
Options, Exercised	0
Options, Forfeited or expired	(9,300)
Options Outstanding at end of year	6,000
Options, Exercisable at end of year	6,000
Weighted Average Exercise Price,Outstanding at beginning of year	$ 11.94
Weighted Average Exercise Price, Granted	$ 0
Weighted Average Exercise Price, Exercised	$ 0
Weighted Average Exercise Price, Forfeited or expired	$ (10.25)
Weighted Average Exercise Price, Outstanding at end of year	$ 14.54
Weighted Average Exercise Price, Exercisable at end of year	$ 14.54
Weighted Average Remaining Contractual Term, Outstanding at end of year	1 year 11 months 8 days
Weighted Average Remaining Contractual Term, Exercisable at end of year	1 year 11 months 8 days
Aggregate Intrinsic Value, Outstanding at end of year	$ 0	[1]
Aggregate Intrinsic Value, Exercisable at end of year	$ 0	[1]

[1] The stock price at December 31, 2013 did not exceed the weighted average option exercise price.

XML

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 18 - FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Securities: The fair values of securities are obtained from a third party who utilizes quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing (Level 2 inputs), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Servicing Rights: The fair value of SBA servicing rights is obtained from a third party using assumptions provided by the Company. The individual servicing rights are valued individually taking into consideration the original term to maturity, the current age of the loan and the remaining term to maturity. The valuation methodology utilized for the servicing rights begins with projecting future cash flows for each servicing asset, based on its unique characteristics and market-based assumptions for prepayment speeds. The present value of the future cash flows are then calculated utilizing a market-based discount rate assumption. These inputs are generally observable in the marketplace resulting in a Level 2 classification.

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals or internal evaluations. Management may add discounts to third party appraisals. The appraisals are generally obtained annually and are performed by qualified licensed appraisers approved by the Board of Directors. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Such adjustments can be significant and result in a Level 3 classification of the inputs for determining fair value.

Non-real estate collateral may be valued using appraisals, independent valuation tools, net book value per the borrower’s financial statements, or aging reports.  To determine the fair value, these values are adjusted or discounted based on several factors, including but not limited to: the Bank’s historical losses within that particular asset category;  knowledge of the collateral, including age and condition; and  changes in market conditions from the time of the valuation,  resulting in a Level 3 fair value classification.  Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Foreclosed Assets: Commercial and residential real estate properties classified as foreclosed assets are measured at fair value, less costs to sell. Fair values are generally based on recent real estate appraisals or internal evaluations. Management may add discounts to third party appraisals. The appraisals are generally obtained annually and are performed by qualified licensed appraisers approved by the Board of Directors. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments of the carrying amount utilizing this process result in a Level 3 classification.

Assets measured at fair value on a recurring basis are summarized below for the years ended December 31, 2013 and 2012:

			Fair Value Measurements Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
December 31, 2013	Total		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
US Treasury	$	2,542,032	$	2,542,032	$	0	$	0
US Government and federal agency		15,867,406		0		15,867,406		0
Municipals		1,591,141		0		1,591,141		0
Mortgage-backed and collateralized mortgage obligations– residential		11,229,667		0		11,229,667		0
Total	$	31,230,246	$	2,542,032	$	28,688,214	$	0
Servicing assets	$	37,217			$	37,217
December 31, 2012
Available for sale securities:
US Treasury	$	4,094,532	$	4,094,532	$	0	$	0
US Government and federal agency		20,259,743		0		20,259,743		0
Municipals		2,333,741		0		2,333,741		0
Mortgage-backed and collateralized mortgage obligations– residential		14,772,380		0		14,772,380		0
Total	$	41,460,396	$	4,094,532	$	37,365,864	$	0
Servicing assets	$	41,650	$	0	$	41,650	$	0

There were no transfers between Level 1 and Level 2 during 2013 or 2012.

Assets measured at fair value on a non-recurring basis are summarized below. Impaired loans and foreclosed assets are included if the fair value of such assets was revised during the quarterly period then ended.

			Significant
			Unobservable Inputs
	Total		(Level 3)
December 31, 2013
Impaired loans:
Commercial	$	23,820	$	23,820
Commercial Real Estate:
General		0		0
Consumer:
Lines of credit		140,859		140,859
Other		0		0
Residential		599,607		599,607
Total	$	764,286	$	764,286
Foreclosed assets:
Commercial Real Estate:
General	$	513,000	$	513,000
Residential		20,215		20,215
Total	$	533,215	$	533,215

			Significant
			Unobservable Inputs
	Total		(Level 3)
December 31, 2012
Impaired loans:
Commercial	$	84,755	$	84,755
Commercial Real Estate:
General		786,282		786,282
Residential		140,269		140,269
Total	$	1,011,306	$	1,011,306
Foreclosed assets:
Commercial Real Estate:
General	$	141,596	$	141,596
Construction		380,142		380,142
Total	$	521,738	$	521,738

The following describes the impairment charges recognized during the period:

The method used to determine the valuation of impaired loans depends on the anticipated source of repayment. Collateral dependent impaired loans are measured using the fair value of the collateral which was determined using independent appraisals or internal evaluations and was adjusted for anticipated disposition costs. At December 31, 2013, impaired loans carried at fair value had a recorded investment of $1,022,525 and a valuation allowance of $258,239, resulting in additional provision of $199,427. At December 31, 2012, impaired loans carried at fair value had a recorded investment of $2,394,211 and a valuation allowance of $1,382,905 resulting in additional provision of $13,000.

Foreclosed assets carried at fair value at December 31, 2013 and 2012 were $533,215 and $521,738, respectively. During 2013, three properties included in this total were written down by $55,524. During 2012, three properties included in this total were written down by $128,139. The fair value of other real estate owned was determined primarily using independent appraisals or internal evaluations and was adjusted for anticipated disposition costs.

The following table presents information as of December 31, 2013 about significant unobservable inputs related to the Bank’s individually material¹ Level 3 financial assets, by class, measured on a non-recurring basis:

			Valuation		Significant Unobservable		Range			Weighted
	Fair Value		Technique (s)		Inputs		of Inputs			Average
December 31, 2013
Impaired loans:						Adjustments for differences between
Residential	$	536,524		Sales comparison approach		the comparable sales		17.1-29.8	%		23.8	%
						Adjustments for differences between
				Discounted cash flow		NPV of cash flow and RI		4.6-7.0	%		N/A
Total	$	572,682
Foreclosed assets:
Commercial Real Estate:						Adjustments for differences between
General	$	463,500		Sales comparison approach		the comparable sales		0-12.5	%		8.3	%
				Income approach				(20)-10	%		10	%
Total	$	463,500

¹ For purposes of this disclosure, only material Level 3 assets are disclosed. These assets are included in the total non-recurring Level 3 financial assets reported on page 77.

The carrying amounts and estimated fair values of financial instruments, not previously presented above, were as follows at year-end:

			Fair Value Measurements
			at December 31, 2013 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets
Cash and cash equivalents	$	17,133	$	17,133	$	0	$	0	$	17,133
Loans held for sale		240		0		246		0		246
Loans, net (including impaired)		128,745		0		0		122,235		122,235
FHLB stock		451		N/A		N/A		N/A		N/A
Accrued interest receivable		467		8		117		342		467
Financial liabilities
Deposits		171,940		79,596		84,785		0		164,381
Federal funds purchased and repurchase agreements		8,428		0		8,428		0		8,428
Subordinated debentures		4,500		0		0		1,125		1,125
Notes payable		1,280		0		0		1,280		1,280
Accrued interest payable		506		4		32		137		173

			Fair Value Measurements
			at December 31, 2012 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets
Cash and cash equivalents	$	20,297	$	20,297	$	0	$	0	$	20,297
Loans held for sale		6,041		0		6,183		0		6,183
Loans, net (including impaired)		122,447		0		0		116,004		116,004
FHLB stock		451		N/A		N/A		N/A		N/A
Accrued interest receivable		592		12		163		417		592
Financial liabilities
Deposits		184,176		88,959		94,185		0		183,144
Federal funds purchased and repurchase agreements		10,190		0		10,190		0		10,190
Subordinated debentures		4,500		0		0		1,125		1,125
Notes payable		5,000		0		0		500		500
Accrued interest payable		1,156		4		64		81		149

The methods and assumptions, not previously presented above, used to estimate fair values are described as follows:

(a) Cash and cash equivalents

The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.

(b) FHLB stock

It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

(c) Loans

Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

(d) Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(e) Federal funds purchased and repurchase agreements

The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification.

(f) Subordinated debentures and Notes payable

The fair value of the Company’s subordinated debentures is estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements and consideration of the Company’s liquidity, resulting in a Level 3 classification. The fair value of the Company’s notes payable is based upon an expected agreement for settlement of the loan with the creditor resulting in a Level 3 classification.

(g) Accrued interest receivable/payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 1, 2 or 3 classification, depending on the associated asset or liability.

(h) Off-balance sheet instruments

Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

XML

LOANS (Details 5) (USD $)	12 Months Ended
	Dec. 31, 2013 Number	Dec. 31, 2012 Number
Troubled Debt Restructurings:
Number of Loans	6	12
Pre-Modification Outstanding Recorded Investment	$ 512,458	$ 3,835,355
Post-Modification Outstanding Recorded Investment	502,747	3,197,232
Number of Loans, Subsequently Defaulted	1	0
Recorded Investment at time of default	155,258	0
Commercial Portfolio Segment [Member]
Troubled Debt Restructurings:
Number of Loans	1	2
Pre-Modification Outstanding Recorded Investment	143,136	101,880
Post-Modification Outstanding Recorded Investment	133,425	101,880
Number of Loans, Subsequently Defaulted	1	0
Recorded Investment at time of default	155,258	0
Commercial Real Estate Portfolio Segment [Member]
Troubled Debt Restructurings:
Number of Loans	0	5
Pre-Modification Outstanding Recorded Investment	0	3,446,269
Post-Modification Outstanding Recorded Investment	0	2,808,146
Number of Loans, Subsequently Defaulted	0	0
Recorded Investment at time of default	0	0
Consumer Lines of Credit [Member]
Troubled Debt Restructurings:
Number of Loans	4	3
Pre-Modification Outstanding Recorded Investment	205,208	142,894
Post-Modification Outstanding Recorded Investment	205,208	142,894
Residential Portfolio Segment [Member]
Troubled Debt Restructurings:
Number of Loans	1	2
Pre-Modification Outstanding Recorded Investment	164,114	144,312
Post-Modification Outstanding Recorded Investment	$ 164,114	$ 144,312

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SECURITIES AVAILABLE FOR SALE (Details 1) (USD $)	Dec. 31, 2013
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
Due in one year or less	$ 4,020,681
Due from one to five years	15,540,166
Due from five to ten years	351,539
Due in more than ten years	0
Mortgage-backed and collateralized mortgage obligations - residential	11,354,185
Available-for-sale Debt Securities, Amortized Cost Basis	31,266,571
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Due in one year or less	4,038,324
Due from one to five years	15,601,541
Due from five to ten years	360,714
Due in more than ten years	0
Mortgage-backed and collateralized mortgage obligations - residential	11,229,667
Available-for-sale Securities, Debt Securities	$ 31,230,246

XML

OFF-BALANCE SHEET ACTIVITIES (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Fixed Rate [Member] | Unused standby letters of credit [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	$ 0	$ 0
Fixed Rate [Member] | Unused lines of credit [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	1,711,768	1,103,553
Fixed Rate [Member] | Commitments To Make Loans [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	243,721	253,000
Variable Rate [Member] | Unused standby letters of credit [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	1,262,000	1,262,000
Variable Rate [Member] | Unused lines of credit [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	19,602,468	20,452,062
Variable Rate [Member] | Commitments To Make Loans [Member]
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	$ 0	$ 0

XML

OFF-BALANCE SHEET ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

The contractual amount of unfunded financial instruments with off-balance sheet risk was as follows at December 31, 2013 and 2012:

	2013				2012
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Unused lines of credit	$	1,711,768	$	19,602,468	$	1,103,553	$	20,452,062
Unused standby letters of credit		0		1,262,000		0		1,262,000
Commitments to make loans		243,721		0		253,000		0

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LOANS (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Allowance for Credit Losses, Change in Method of Calculating Impairment	$ 1,539,865	$ 1,699,851
Receivables, Change in Method of Calculating Impairment, Recorded Investment	8,452,163	10,441,218
Additional Allowance for Credit Losses Change in Method of Calculating Impairment	80,000	72,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	10,000	638,000
Financing Receivable, Credit Quality, Additional Information	All commercial and commercial real estate loans exceeding $500,000 are formally reviewed at least annually. Once a loan is graded a 5M or greater number, and is over $100,000, the loan grade will be reanalyzed once a quarter to assess the borrowers compliance with the Banks documented action plan.
Financing Receivables Troubled Debt Restructuring		654,000
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Allowance for Credit Losses, Change in Method of Calculating Impairment	$ 180,557	$ 184,364

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INCOME TAXES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Tax at statutory rate	$ 1,919,298	$ 91,065
Tax-exempt interest income	(22,650)	(28,643)
Other	21,596	10,184
Change in valuation allowance	(1,813,244)	(72,606)
Federal income tax expense	$ 105,000	$ 0

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FEDERAL HOME LOAN BANK BORROWINGS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	$ 2,657,121
Residential Portfolio Segment [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	$ 3,709,600	$ 2,665,434

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LOANS (Details 2) (USD $)	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Allowance for loan losses:
Individually evaluated for impairment	$ 1,610,904	[1]	$ 1,810,376	[1]
Collectively evaluated for impairment	1,198,738		1,572,601
Unallocated	104,810		0
Total ending allowance balance	2,809,642		3,382,977		5,299,454
Loans:
Individually evaluated for impairment	9,596,934	[1]	11,715,696	[1]
Collectively evaluated for impairment	122,298,661		114,523,679
Total ending loans balance	131,895,595		126,239,375
Commercial Portfolio Segment [Member]
Allowance for loan losses:
Individually evaluated for impairment	28,705	[1]	104,727	[1]
Collectively evaluated for impairment	310,343		477,471
Unallocated	0		0
Total ending allowance balance	339,048		582,198		1,309,632
Loans:
Individually evaluated for impairment	1,165,730	[1]	3,288,294	[1]
Collectively evaluated for impairment	46,016,674		36,739,269
Total ending loans balance	47,182,404		40,027,563
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses:
Individually evaluated for impairment	1,302,677	[1]	1,489,569	[1]
Collectively evaluated for impairment	515,326		776,733
Unallocated	0		0
Total ending allowance balance	1,818,003		2,266,302		3,386,433
Loans:
Individually evaluated for impairment	6,784,821	[1]	7,322,850	[1]
Collectively evaluated for impairment	52,490,365		49,391,498
Total ending loans balance	59,275,186		56,714,348
Consumer Portfolio Segment [Member]
Allowance for loan losses:
Individually evaluated for impairment	191,887	[1]	89,050	[1]
Collectively evaluated for impairment	232,937		242,409
Unallocated	0		0
Total ending allowance balance	424,824		331,459		410,001
Loans:
Individually evaluated for impairment	518,428	[1]	321,820	[1]
Collectively evaluated for impairment	9,267,130		11,329,495
Total ending loans balance	9,785,558		11,651,315
Residential Portfolio Segment [Member]
Allowance for loan losses:
Individually evaluated for impairment	87,635	[1]	127,030	[1]
Collectively evaluated for impairment	140,132		75,988
Unallocated	0		0
Total ending allowance balance	227,767		203,018		193,388
Loans:
Individually evaluated for impairment	1,127,955	[1]	782,732	[1]
Collectively evaluated for impairment	14,524,492		17,063,417
Total ending loans balance	15,652,447		17,846,149
Unallocated Financing Receivables [Member]
Allowance for loan losses:
Individually evaluated for impairment	0	[1]	0	[1]
Collectively evaluated for impairment	0		0
Unallocated	104,810		0
Total ending allowance balance	104,810		0
Loans:
Individually evaluated for impairment	0	[1]	0	[1]
Collectively evaluated for impairment	0		0
Total ending loans balance	$ 0		$ 0

[1] Loans that are specifically identified.

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SECURITIES AVAILABLE FOR SALE

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The following tables represent the securities held in the Company’s portfolio at December 31, 2013 and 2012:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
2013
US Treasury	$	2,525,481	$	16,551	$	0	$	2,542,032
US Government and federal agency		15,823,511		90,497		(46,602)		15,867,406
Municipals		1,563,394		27,747		0		1,591,141
Mortgage-backed and collateralized mortgage obligations– residential		11,354,185		132,797		(257,315)		11,229,667
	$	31,266,571	$	267,592	$	(303,917)	$	31,230,246
2012
US Treasury	$	4,044,909	$	49,623	$	0	$	4,094,532
US Government and federal agency		20,013,843		250,523		(4,623)		20,259,743
Municipals		2,260,272		73,469		0		2,333,741
Mortgage-backed and collateralized mortgage obligations– residential		14,539,668		264,090		(31,378)		14,772,380
	$	40,858,692	$	637,705	$	(36,001)	$	41,460,396

The amortized cost and fair value of the securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment fees. Below is the schedule of contractual maturities for securities held at December 31, 2013:

	Amortized		Fair
2013	Cost		Value
Due in one year or less	$	4,020,681	$	4,038,324
Due from one to five years		15,540,166		15,601,541
Due from five to ten years		351,539		360,714
Due in more than ten years		0		0
Mortgage-backed and collateralized mortgage obligations – residential		11,354,185		11,229,667
	$	31,266,571	$	31,230,246

Below is the table of securities with unrealized losses, aggregated by investment category and length of time such securities were in an unrealized loss position at December 31, 2013 and 2012:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
2013	Value		Losses		Value		Losses		Value		Losses
US Government and federal agency	$	2,439,145	$	(38,342)	$	1,031,280	$	(8,260)	$	3,470,425	$	(46,602)
Mortgage-backed and collateralized mortgage obligations - residential		5,604,925		(191,440)		1,473,265		(65,875)		7,078,190		(257,315)
	$	8,044,070	$	(229,782)	$	2,504,545	$	(74,135)	$	10,548,615	$	(303,917)

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
2012	Value		Losses		Value		Losses		Value		Losses
US Government and federal agency	$	3,050,187	$	(4,623)	$	0	$	0	$	3,050,187	$	(4,623)
Mortgage-backed and collateralized mortgage obligations - residential		3,882,818		(21,580)		269,692		(9,798)		4,152,510		(31,378)
	$	6,933,005	$	(26,203)	$	269,692	$	(9,798)	$	7,202,697	$	(36,001)

Other-Than-Temporary-Impairment

Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI will be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI will be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

At both year-end 2013 and 2012, all of the mortgage-backed securities and collateralized mortgage obligations held by the Company were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae, Freddie Mac, and Ginnie Mae, institutions which the government has affirmed its commitment to support. At December 31, 2013, 16 debt securities had unrealized losses with aggregate depreciation of 2.80% from the amortized cost basis. Six of the 16 securities are issued by government agencies and ten are issued by a government-sponsored entity. It is likely that these debt securities will be retained given the fact that they are pledged to various public funds. The reported decline in value is not material and is deemed to be market driven. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2013.

At year-end 2013 and 2012, there were no holdings of securities of any one issuer, other than U.S. Government and federal agencies, in an amount greater than 10% of common stock and surplus.

Securities pledged at year-end 2013 had a carrying amount of $26,527,366 and were pledged to secure public fund customers, the FRB ACH debit activity and customer repurchase agreements. Pledged securities at year-end 2012 had a carrying amount of $27,020,908.

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SUBORDINATED DEBENTURES (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest Expense, Subordinated Notes and Debentures	$ 444,042	$ 325,911
Subordinated Debt [Member]
Number Of Subordinated Securities Issued	4,500
Subordinated Security Price Per Share	$ 1,000
Debt Instrument, Basis Spread on Variable Rate	2.05%
Subordinated Borrowing, Interest Rate	2.30%	2.36%
Debt Instrument, Maturity Date	Dec. 30, 2034

XML

SECURITIES AVAILABLE FOR SALE (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 8,044,070	$ 6,933,005
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(229,782)	(26,203)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	2,504,545	269,692
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(74,135)	(9,798)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	10,548,615	7,202,697
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(303,917)	(36,001)
US Government and federal agency [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	2,439,145	3,050,187
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(38,342)	(4,623)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,031,280	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(8,260)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,470,425	3,050,187
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(46,602)	(4,623)
Mortgage-backed and collateralized mortgage obligations - residential [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	5,604,925	3,882,818
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(191,440)	(21,580)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,473,265	269,692
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(65,875)	(9,798)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	7,078,190	4,152,510
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	$ (257,315)	$ (31,378)

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FORECLOSED ASSETS (Tables)

12 Months Ended

Dec. 31, 2013

Repossessed Assets [Abstract]

Foreclosed Assets [Table Text Block]

Foreclosed asset activity for the year ended December 31:

	2013		2012
Beginning of year	$	2,806,781	$	3,276,838
Additions		654,801		1,352,547
Reductions from sales		(706,633)		(1,442,520)
Direct write-downs		(196,650)		(380,084)
End of year	$	2,558,299	$	2,806,781

Expenses related to foreclosed assets include:

	2013		2012
Operating expenses, net of rental income	$	211,459	$	220,976

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LOANS (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

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

Outstanding loan balances by portfolio segment and class at December 31, 2013 and 2012 were as follows:

	2013		2012
Commercial	$	47,081,426	$	39,915,144
Commercial Real Estate:
General		57,101,939		53,096,828
Construction		2,065,308		3,464,366
Consumer:
Lines of credit		7,737,439		9,105,387
Other		1,560,384		2,015,234
Credit card		451,009		490,802
Residential		15,611,082		17,798,131
Net deferred loan fees		(54,343)		(55,642)
		131,554,244		125,830,250
Less:  Allowance for loan losses		(2,809,642)		(3,382,977)
Loans, net	$	128,744,602	$	122,447,273

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

The following tables present the activity in the allowance for loan losses for the years ending December 31, 2013 and 2012 by portfolio segment:

			Commercial
December 31, 2013	Commercial		Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Beginning balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	3,382,977
Charge-offs		(66,048)		(25,025)		(316,995)		(264,902)		(672,970)
Recoveries		80,507		0		19,128		0		99,635
Provision for loan losses		(257,609)		(423,274)		391,232		289,651		0
Ending balance	$	339,048	$	1,818,003	$	424,824	$	227,767	$	2,809,642

			Commercial
December 31, 2012	Commercial		Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Beginning balance	$	1,309,632	$	3,386,433	$	410,001	$	193,388	$	5,299,454
Charge-offs		(1,042,700)		(954,701)		(132,394)		(11,392)		(2,141,187)
Recoveries		86,663		37,164		25,848		0		149,675
Provision for loan losses		228,603		(202,594)		28,004		21,022		75,035
Ending balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	3,382,977

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

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

			Commercial
2013	Commercial		Real Estate		Consumer		Residential		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment1	$	28,705	$	1,302,677	$	191,887	$	87,635	$	0	$	1,610,904
Collectively evaluated for impairment		310,343		515,326		232,937		140,132		0		1,198,738
Unallocated		0		0		0		0		104,810		104,810
Total ending allowance balance	$	339,048	$	1,818,003	$	424,824	$	227,767	$	104,810	$	2,809,642
Loans:
Individually evaluated for impairment1	$	1,165,730	$	6,784,821	$	518,428	$	1,127,955	$	0	$	9,596,934
Collectively evaluated for impairment		46,016,674		52,490,365		9,267,130		14,524,492		0		122,298,661
Total ending loans balance	$	47,182,404	$	59,275,186	$	9,785,558	$	15,652,447	$	0	$	131,895,595

			Commercial
2012	Commercial		Real Estate		Consumer		Residential		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment1	$	104,727	$	1,489,569	$	89,050	$	127,030	$	0	$	1,810,376
Collectively evaluated for impairment		477,471		776,733		242,409		75,988		0		1,572,601
Unallocated		0		0		0		0		0		0
Total ending allowance balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	0	$	3,382,977
Loans:
Individually evaluated for impairment1	$	3,288,294	$	7,322,850	$	321,820	$	782,732	$	0	$	11,715,696
Collectively evaluated for impairment		36,739,269		49,391,498		11,329,495		17,063,417		0		114,523,679
Total ending loans balance	$	40,027,563	$	56,714,348	$	11,651,315	$	17,846,149	$	0	$	126,239,375

¹ Loans that are specifically identified.

Schedule Of Non Performing Past Due And Accrual Status Of Impaired Loans [Table Text Block]

The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

			Unpaid				Average		Interest		Cash Basis
	Recorded		Principal		Related		Recorded		Income		Interest
2013	Investment		Balance		Allowance		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	1,049,046	$	1,059,514	$	0	$	1,326,391	$	36,446	$	34,382
Commercial Real Estate:
General		714,377		744,958		0		2,244,485		2,999		2,999
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		107,750		255,128		0		55,715		642		642
Other		47,106		109,603		0		28,021		0		0
Credit card		0		0		0		0		0		0
Residential		343,859		554,300		0		234,300		0		0
Subtotal	$	2,262,138	$	2,723,503	$	0	$	3,888,912	$	40,087	$	38,023
With an allowance recorded:
Commercial	$	116,684	$	116,194	$	28,705	$	273,051	$	15,350	$	14,995
Commercial Real Estate:
General		6,070,444		6,069,393		1,302,677		4,634,901		226,872		226,872
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		296,004		294,323		155,095		191,689		10,289		9,097
Other		67,568		67,406		36,792		89,464		1,877		1,877
Credit card		0		0		0		224		0		0
Residential		784,096		791,471		87,635		526,512		17,430		17,417
Subtotal	$	7,334,796	$	7,338,787	$	1,610,904	$	5,715,841	$	271,818	$	270,258
Total	$	9,596,934	$	10,062,290	$	1,610,904	$	9,604,753	$	311,905	$	308,281

			Unpaid				Average		Interest		Cash Basis
	Recorded		Principal		Related		Recorded		Income		Interest
2012	Investment		Balance		Allowance		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	2,147,075	$	2,295,401	$	0	$	2,413,625	$	66,634	$	56,123
Commercial Real Estate:
General		2,662,984		2,739,027		0		2,783,388		66,501		64,093
Construction		0		0		0		167,274		0		0
Consumer:
Lines of credit		55,659		55,524		0		46,916		9,177		5,228
Other		26,221		26,221		0		17,290		106		0
Credit card		0		0		0		0		0		0
Residential		208,178		240,491		0		285,420		345		340
Subtotal	$	5,100,117	$	5,356,664	$	0	$	5,713,913	$	142,763	$	125,784
With an allowance recorded:
Commercial	$	1,141,219	$	1,139,885	$	104,727	$	1,510,788	$	65,446	$	38,083
Commercial Real Estate:
General		4,659,866		4,675,981		1,489,569		5,228,456		142,583		112,299
Construction		0		0		0		21,201		0		0
Consumer:
Lines of credit		135,111		134,976		40,180		176,507		3,897		3,431
Other		104,829		104,664		48,870		114,664		2,048		1,923
Credit card		0		0		0		988		0		0
Residential		574,554		594,307		127,030		486,301		12,907		12,541
Subtotal	$	6,615,579	$	6,649,813	$	1,810,376	$	7,538,905	$	226,881	$	168,277
Total	$	11,715,696	$	12,006,477	$	1,810,376	$	13,252,818	$	369,644	$	294,061

Past Due Financing Receivables [Table Text Block]

The following tables present the aging of the recorded investment in past due and non accrual loans by class of loans as of December 31, 2013:

					Greater Than 90		Total Accruing				Total Recorded
	30-59 Days Past		60-89 Days Past		Days Past		Past Due		Current		Investment of
Accruing Loans	Due		Due		Due		Loans		Accruing Loans		Accruing Loans
Commercial	$	0	$	0	$	0	$	0	$	47,146,126	$	47,146,126
Commercial Real Estate:
General		0		0		0		0		54,827,857		54,827,857
Construction		0		0		0		0		2,071,737		2,071,737
Consumer:
Lines of credit		0		101,022		0		101,022		7,640,301		7,741,323
Other		1,583		10,824		0		12,407		1,500,086		1,512,493
Credit card		0		0		0		0		451,009		451,009
Residential		62,333		2,241		0		64,574		15,098,466		15,163,040
Total	$	63,916	$	114,087	$	0	$	178,003	$	128,735,582	$	128,913,585

					Greater Than 90		Total		Current		Total Non Accrual
	30-59 Days Past		60-89 Days Past		Days Past		Non Accrual		Non Accrual		Recorded
Non Accrual Loans	Due		Due		Due		Past Due Loans		Loans		Investment
Commercial	$	0	$	0	$	0	$	0	$	36,278	$	36,278
Commercial Real Estate:
General		0		0		0		0		2,375,592		2,375,592
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		0		0		25,568		25,568		0		25,568
Other		0		25,360		0		25,360		29,805		55,165
Credit card		0		0		0		0		0		0
Residential		97,482		0		224,185		321,667		167,740		489,407
Total	$	97,482	$	25,360	$	249,753	$	372,595	$	2,609,415	$	2,982,010

The following tables present the aging of the recorded investment in past due and non accrual loans by class of loans as of December 31, 2012:

					Greater Than 90		Total Accruing				Total Recorded
	30-59 Days Past		60-89 Days Past		Days Past		Past Due		Current		Investment of
Accruing Loans	Due		Due		Due		Loans		Accruing Loans		Accruing Loans
Commercial	$	1,956	$	0	$	0	$	1,956	$	39,465,435	$	39,467,391
Commercial Real Estate:
General		97,605		0		0		97,605		50,193,607		50,291,212
Construction		0		0		0		0		3,479,043		3,479,043
Consumer:
Lines of credit		26,037		44,866		0		70,903		8,963,308		9,034,211
Other		3,707		0		0		3,707		2,015,334		2,019,041
Credit card		2,010		0		0		2,010		488,792		490,802
Residential		0		85,242		0		85,242		17,456,776		17,542,018
Total	$	131,315	$	130,108	$	0	$	261,423	$	122,062,295	$	122,323,718

					Greater Than 90		Total		Current		Total Non Accrual
	30-59 Days Past		60-89 Days Past		Days Past		Non Accrual		Non Accrual		Recorded
Non Accrual Loans	Due		Due		Due		Past Due Loans		Loans		Investment
Commercial	$	8,958	$	20,469	$	320,592	$	350,019	$	210,153	$	560,172
Commercial Real Estate:
General		8,414		280,399		406,792		695,605		2,248,488		2,944,093
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		0		21,583		0		21,583		79,628		101,211
Other		0		0		6,050		6,050		0		6,050
Credit card		0		0		0		0		0		0
Residential		0		0		195,649		195,649		108,482		304,131
Total	$	17,372	$	322,451	$	929,083	$	1,268,906	$	2,646,751	$	3,915,657

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following table presents loans by class modified as troubled debt restructurings that occurred during the 12 month period ended December 31, 2013:

			Pre-Modification		Post-Modification
			Outstanding Recorded		Outstanding Recorded
2013	Number of Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial		1	$	143,136	$	133,425
Commercial Real Estate:
General		0		0		0
Consumer:
Lines of credit		4		205,208		205,208
Residential		1		164,114		164,114
Total		6	$	512,458	$	502,747

The following table presents loans by class modified as troubled debt restructurings that occurred during the 12 month period ended December 31, 2012:

			Pre-Modification		Post-Modification
			Outstanding Recorded		Outstanding Recorded
2012	Number of Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial		2	$	101,880	$	101,880
Commercial Real Estate:
General		5		3,446,269		2,808,146
Consumer:
Lines of credit		3		142,894		142,894
Residential		2		144,312		144,312
Total		12	$	3,835,355	$	3,197,232

For the 12 month period ended December 31, 2013, there was one troubled debt restructuring that experienced a payment default within 12 months following the modification. Below is a table which presents those loans by class:

			Recorded Investment
2013	Number of Loans		at time of default
Troubled Debt Restructurings
That Subsequently Defaulted:
Commercial		1	$	155,258
Commercial Real Estate:
General		0		0
Total		1	$	155,258

For the 12 month period ended December 31, 2012, there were no troubled debt restructurings that experienced a payment default within 12 months following the modification.

			Recorded Investment
2012	Number of Loans		at time of default
Troubled Debt Restructurings
That Subsequently Defaulted:
Commercial		0	$	0
Commercial Real Estate:
General		0		0
Total		0	$	0

Financing Receivable Credit Quality Indicators [Table Text Block]

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

					Commercial Real Estate				Commercial Real Estate
	Commercial				General				Construction
	2013		2012		2013		2012		2013		2012
1	$	0	$	0	$	0	$	0	$	0	$	0
2		94,676		298,200		0		0		0		0
3		8,623,409		2,004,476		5,524,989		4,141,391		0		0
4		13,898,810		14,017,221		18,675,411		12,911,811		441,114		384,848
5		17,539,364		16,373,423		20,604,611		22,177,734		233,302		1,695,990
5M		4,255,639		3,318,016		5,114,931		3,675,131		1,397,321		1,398,205
6		1,699,009		2,180,119		4,908,058		7,365,970		0		0
7		1,052,903		1,369,803		229,576		287,682		0		0
8		18,594		466,305		2,145,873		2,675,586		0		0
Total	$	47,182,404	$	40,027,563	$	57,203,449	$	53,235,305	$	2,071,737	$	3,479,043

The following tables present the recorded investment in residential and consumer loans based on payment activity as of December 31, 2013 and 2012:

	Residential
	2013		2012
Performing	$	14,524,492	$	17,063,417
Impaired		1,127,955		782,732
Total	$	15,652,447	$	17,846,149

	Consumer – Lines of credit				Consumer – Other				Consumer – Credit card
	2013		2012		2013		2012		2013		2012
Performing	$	7,363,137	$	8,944,652	$	1,452,984	$	1,894,041	$	451,009	$	490,802
Impaired		403,754		190,770		114,674		131,050		0		0
Total	$	7,766,891	$	9,135,422	$	1,567,658	$	2,025,091	$	451,009	$	490,802

XML

DEPOSITS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Non-interest-bearing DDA	$ 33,313,136	$ 40,271,190
Interest-bearing DDA	24,861,560	22,865,704
Money market	19,202,665	18,602,302
Savings	10,214,719	9,018,387
Certificate of deposit	84,347,785	93,418,910
Total Deposits	$ 171,939,865	$ 184,176,493

XML

SECURITIES AVAILABLE FOR SALE (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Securities Held as Collateral, at Fair Value	26,527,366	$ 27,020,908
Other Than Temporary Impairment [Member]
Percentage Of Aggregate Depreciation	2.80%
US Treasury and Government [Member]
Maximum Percentage Of Common Stock And Surplus	10.00%

XML

PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Period end premises and equipment were as follows at December 31:

	2013		2012
Land & land improvements	$	4,700,464	$	4,700,464
Buildings & building improvements		6,201,507		6,132,163
Furniture, fixtures and equipment		3,864,940		3,800,460
		14,766,911		14,633,087
Less:  accumulated depreciation		5,621,444		5,212,201
	$	9,145,467	$	9,420,886

XML

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2013

Banking and Thrift [Abstract]

Schedule Of Deposit Liabilities Disclosures [Table Text Block]

The components of the outstanding deposit balances at December 31, 2013 and 2012 were as follows:

	2013		2012
Non-interest-bearing DDA	$	33,313,136	$	40,271,190
Interest-bearing DDA		24,861,560		22,865,704
Money market		19,202,665		18,602,302
Savings		10,214,719		9,018,387
Certificate of deposit		84,347,785		93,418,910
	$	171,939,865	$	184,176,493

Scheduled Maturities Of Time Deposits [Table Text Block]

Scheduled maturities of time deposits, as of December 31, 2013, were as follows:

2014	$	37,160,846
2015		31,894,144
2016		11,762,926
2017		3,019,839
2018		510,030
	$	84,347,785

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of Community Shores Bank Corporation (the “Company”) and its wholly-owned subsidiaries, Community Shores Financial Services (“CS Financial Services”), and Community Shores Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, Community Shores Mortgage Company (the “Mortgage Company”) and the Mortgage Company’s wholly-owned subsidiary, Berryfield Development, LLC (“Berryfield”), after elimination of significant intercompany transactions and accounts.

NATURE OF OPERATIONS: The Company was incorporated on July 23, 1998 under Michigan law and is a bank holding company owning all of the common stock of the Bank. The Bank is a Michigan banking corporation with depository accounts insured by the FDIC. The Bank provides a range of commercial and consumer banking services in West Michigan, primarily in Muskegon County, which includes the cities of Muskegon and North Muskegon, and Northern Ottawa County, which includes the city of Grand Haven. Those services reflect the Bank’s strategy of serving small to medium-sized businesses, and individual customers in its market area. Services for businesses include traditional business accounts and both commercial and commercial real estate loans. At year-end 2013, the loan portfolio was 36% commercial and 45% commercial real estate. Slightly more than 1% of total commercial real estate loans were classified as land development. The remaining 19% of the portfolio is more retail oriented and consists of residential real estate and consumer loans. There are no significant concentrations of loans to any one industry or customer; however, the borrowers’ ability to repay their loans is affected by the real estate market and general market conditions in the Bank’s market area. Management centers the Bank’s retail banking strategy on providing traditional banking products and services, automated teller machines, internet banking, telephone banking and electronic bill-paying services to individuals and businesses in the Bank’s market area. The Bank began operations on January 18, 1999.

The Mortgage Company, a wholly-owned subsidiary of the Bank, was formed on March 1, 2002 by transferring a majority of the Bank’s commercial and residential real estate loans at that date in exchange for 100% of the equity capital of the Mortgage Company. On the day of formation, the Mortgage Company commenced operations and became legally able to originate residential mortgage loans. The Bank services the entire portfolio of loans held by the Mortgage Company pursuant to a servicing agreement.

Berryfield, a wholly-owned subsidiary of the Mortgage Company, is a limited liability company that was created in October 2010. The entity’s sole purpose is to oversee the development and sale of vacant lots that have been foreclosed on by the Mortgage Company.

The Company filed an election to become a financial holding company pursuant to Title I of the Gramm-Leach-Bliley Act and on September 27, 2002 received regulatory approval. At that time the Company formed CS Financial Services. Currently the only source of revenue that CS Financial Services receives is referral fee income from a local insurance agency, Lakeshore Employee Benefits. Lakeshore Employee Benefits offers, among other things, employer-sponsored benefit plans. CS Financial Services has the opportunity to earn a referral fee for each sale of employer-sponsored benefits that is transacted by Lakeshore Employee Benefits as a result of a referral made by CS Financial Services. On April 16, 2009, the Company withdrew its election to be a financial holding company. The election was acknowledged by the Federal Reserve Bank of Chicago (“FRB”). The passive income derived from CS Financial Services affiliation with Lakeshore Employee Benefits is unaffected by this change.

Community Shores Capital Trust I, (“the Trust”) was formed in December 2004. The Company owns all of the common securities of this special purpose trust. The Trust is not consolidated because it is a variable interest entity and the Company is not the primary beneficiary. It exists solely to issue capital securities.

USE OF ESTIMATES: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The primary estimates incorporated into the Company’s consolidated financial statements, which are susceptible to change in the near term, include the allowance for loan losses; the fair value of financial instruments, the carrying value of foreclosed assets and a valuation allowance on deferred tax assets.

CASH FLOW REPORTING: Cash and cash equivalents includes cash, demand deposits with other financial institutions, short-term investments (securities with daily put provisions) and federal funds sold. Cash flows are reported net for customer loan and deposit transactions, interest-bearing time deposits with other financial institutions and short-term borrowings with maturities of 90 days or less.

INTEREST-BEARING DEPOSITS IN OTHER FINANCIAL INSTITUTIONS: Interest-bearing deposits in other financial institutions are carried at cost.

SECURITIES: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are expected. Gains and losses on sales are based on the amortized cost of the security sold.

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when the economic conditions warrant such evaluation.

In assessing OTTI losses, management considers: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuer, and whether the Company has the intent to sell or is likely to be required to sell the security before its anticipated recovery. See Note 2.

LOANS: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Loans held for sale consisted of residential mortgage loans at year-end 2013, but at year-end 2012 also included Small Business Administration (“SBA”) and United States Department of Agriculture (“USDA”) guaranteed loans. Loans held for sale are reported at the lower of cost or fair value, on an aggregated basis. Residential mortgage loans are sold to outside investors servicing released. There were loans held for sale totaling $240,055 at December 31, 2013 compared to $6,040,869 at December 31, 2012. During 2013, $5.9 million of loans were transferred from held for sale into the held for investment portfolio. The loans that were transferred consisted of SBA and USDA loans. The transfer was based on management’s re-evaluation of the Bank’s intent to sell these loans in the short-term.

The loan portfolio consists of the following segments:

Commercial- Loans to businesses that are sole proprietorships, partnerships, limited liability companies and corporations. These loans are for commercial, industrial, or professional purposes. The risk characteristics of these loans vary based on the borrowers business and industry as repayment is typically dependent on cash flows generated from the underlying business.

Commercial Real Estate- Loans to individuals or businesses that are secured by improved and unimproved vacant land, farmland, commercial real property, multifamily residential properties, and all other conforming, nonresidential properties. Proceeds may be used for land acquisition, development or construction. These loans typically fall into two general categories: property that is owner occupied and income or investment property. Owner occupied commercial real estate loans typically involve the same risks as commercial and industrial loans however the underlying collateral is the real estate which is subject to changes in market value after the loan’s origination. Adverse economic events and changes in real estate market valuations generally describe the risks that accompany commercial real estate loans involving income or investment property. The ability of the borrower to repay tends to depend on the success of the underlying project or the ability of the borrower to sell or lease the property at certain anticipated values.

Consumer- Term loans or lines of credit for the purchase of consumer goods, vehicles or home improvement. The risk characteristics of the loans in this segment vary depending on the type of collateral but for the most part repayment is expected from an individual continuing to generate a cash flow that supports the calculated payment obligation. Secondary support could involve liquidation of collateral.

Residential- Loans to purchase or refinance single family residences. The risks associated with this segment are similar to the risks for consumer loans as far as individual payment obligations however the underlying collateral is the real estate. Real estate is subject to changes in market valuation and can be unstable for a variety of reasons.

For all loan segments, interest income is accrued on the unpaid principal using the interest method assigned to the loan product and includes amortization of net deferred loan fees and costs over the loan term. Interest income is not reported when full loan repayment is in doubt. A loan is moved to non-accrual status when it is past due over 90 days unless the loan is well secured and in the process of collection. If a loan is not past due but deemed to be impaired it will also be moved to non-accrual status. These rules apply to loans in all segments. However certain classes of loans in the consumer segment may simply get charged-off as opposed to moving to non-accrual status.

All interest accrued but not received for a loan placed on non-accrual is reversed against interest income at the time the loan is assigned non-accrual status. Payments received on such loans are applied to principal when there is doubt about recovering the full principal outstanding. Loans are eligible to return to accrual status after six months of timely payment and future payments are reasonably assured.

ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased by the provision for loan losses and from recoveries of previously charged-off loans and decreased by charge-offs.

The allowance for loan loss analysis is performed monthly. Management’s methodology consists of specific and general components. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors.

The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over the most recent 12 quarters. The historical loss experience is recalculated at the end of each quarter. This actual loss experience is supplemented with current economic factors based on the risks present for each portfolio segment. These current economic factors are also reassessed at the end of each quarter and include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; quality of loan review system; degree of oversight by the Board of Directors; national and local economic trends and conditions; industry conditions; competition and legal and regulatory requirements; and effects of changes in credit concentrations. There were no significant changes to this methodology in 2013; only the addition of a defined minimum loss percentage as described below.

For the commercial and commercial real estate portfolio segments, the historical loss is tracked by original loan grade. The Bank utilizes a numeric grading system for commercial and commercial real estate loans. A grade is assigned to each commercial and commercial real estate loan by assessing information about the specific borrower’s situation and the estimated collateral values. The description of the loan grade criteria is included in Note 3. In 2013 and 2012, with charge-off activity lessening, the calculated historical loss factor assigned to general allocations was considerably reduced. The reduction was large enough that management prudently chose to define and implement a minimum loss percentage for these segments. The minimum specified was meant to ensure adequate coverage for loss expectation for non-impaired loans.

Within the commercial and industrial and commercial real estate portfolios, there are classes of loans with like risk characteristics that are periodically segregated because management has determined that the historical losses or current factors are unique and should be considered separately from the entire segment.

For the consumer segment, historical loss experience is based on the actual loss history of the following four classes; general consumer loans, personal lines of credit, home equity lines of credit and credit cards. The level of delinquencies and charge-off experience directly impacts the general allocations to the consumer classes.

For the residential segment loss experience is not segregated by grades or classes. The level of delinquencies, charge-off experience, and direction of real estate values directly impacts the general allocations to the residential real estate segment.

The specific component of the allowance for loan losses relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans

for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and are classified as impaired.

Factors considered by management in determining impairment include payment status and collateral value. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.

Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Any loan within a segment can be considered for individual impairment if it meets the above criteria. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell.

Allocations of the allowance may be made for specific loans and groups, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Loan balances are generally charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Statutorily, the Bank must charge-off any bad debt that reaches delinquency of 360 days. In the case of an impaired loan, management typically charges off any portion of the debt that is unsecured based on an internal analysis of future cash flows and or collateral.

There was no material change in these operating doctrines during 2013.

SERVICING RIGHTS: Servicing rights are recognized separately when they are acquired through the sales of loans where servicing is retained by the institution. At this time SBA guaranteed loans are the only loans that are sold where servicing is retained. When loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Under the fair value measurement method used by the Company, earnings are adjusted for the change in fair value and the amount is included with other non-interest income on the income statement. The Company seeks a third party valuation at least annually to adjust servicing assets to their fair value as of year-end. More frequent valuations may occur if management has reason to believe that there has been a meaningful change in data. The fair value of servicing rights is subject to fluctuation as a result of changes in the underlying assumptions used by the third party to conduct its valuation. Servicing rights were $37,217 at December 31, 2013 and $41,650 at December 31, 2012.

TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets, which include loan sales, are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

FEDERAL HOME LOAN BANK (FHLB) STOCK: The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends received are reported as income.

PREMISES AND EQUIPMENT: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years.

FORECLOSED ASSETS: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less estimated selling cost when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a direct write-down is recorded through non-interest expense. Operating costs after acquisition are expensed.

LONG-LIVED ASSETS: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

REPURCHASE AGREEMENTS: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. These balances are not deposits and are not covered by federal deposit insurance. Securities are pledged to cover these liabilities.

STOCK COMPENSATION: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

INCOME TAXES: Income tax expense is the total of the current year income tax due or refundable and the change in certain deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets, liabilities and net operating loss carryforwards, computed using enacted tax rates. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is subject to examinations of federal taxing authorities for years after 2009. The Company did not have any unrecognized tax benefits at December 31, 2013 or 2012 and does not expect any significant unrecognized tax benefits to arise in the next 12 months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense, but did not have any amounts accrued for interest and penalties at either December 31, 2013 or December 31, 2012.

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Standby letters of credit are considered guarantees and are recorded at fair value.

EARNINGS PER COMMON SHARE: Basic earnings per common share is net income (loss) divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. At year-end 2013, stock options for 6,000 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive. In 2012, 15,300 shares of common stock were not considered for the same reason.

COMPREHENSIVE INCOME (LOSS): Comprehensive income consists of net income (loss) and other comprehensive income (loss), net of income taxes. Other comprehensive income includes unrealized gains and losses on securities available for sale, which are also recognized as a separate component of shareholders’ equity.

LOSS CONTINGENCIES: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not currently believe there are such matters outstanding that will have a material effect on the consolidated financial statements.

RESTRICTIONS ON CASH: The Bank was required to have $1,426,000 of cash on hand, or on deposit, with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year-end 2013 and $1,750,000 at year-end 2012.

DIVIDEND RESTRICTIONS: Holders of the Company's common stock are entitled to receive dividends that the Board of Directors may declare from time to time. The Company may only pay dividends out of funds that are legally available for that purpose. The Company's ability to pay dividends to its shareholders depends primarily on the Bank’s ability to pay dividends to the Company. Dividend payments and extensions of credit to the Company from the Bank are subject to legal and regulatory limitations, generally based on capital levels and current and retained earnings.

On December 16, 2010, the Company entered into a Written Agreement with the FRB. The Written Agreement contained several provisions related to dividends and distributions. Essentially the Company shall not declare or pay any dividends without the prior written approval of the FRB, and the Company shall not accept dividends or any other form of payment from the Bank without the prior written approval of the FRB. Similarly the Bank is prohibited from paying dividends. The Bank entered into a Consent Order with the FDIC and DIFS, its primary banking regulators, which became effective on September 2, 2010. The Consent Order, among other things, explicitly prohibits the Bank from declaring or paying a dividend without the prior written consent of the regulators.

In addition, under the terms of the subordinated debentures, the Company is precluded from paying dividends on its common stock because the Company exercised its right to defer payments of interest on the subordinated debentures beginning in June of 2010. No dividends may be issued until the deferral ends and interest is brought current.

FAIR VALUE OF FINANCIAL INSTRUMENTS: Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in Note 18. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

ADOPTION OF NEW ACCOUNTING STANDARDS:

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which is intended to improve the reporting of reclassifications out of accumulated other comprehensive income.  The ASU requires an entity to report, either on the face of the income statement or in the notes to the financial statements, the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in the income statement.  This ASU was adopted by the Company prospectively in the first quarter of 2013.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors.  ASU 2014-04 clarifies when a creditor should be considered to have received physical possession of residential real estate property during a foreclosure.  ASU 2014-04 establishes a loan receivable should be derecognized and the real estate property recognized upon the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan.  The provisions of ASU 2014-04 are effective for annual periods beginning after December 15, 2014.  The adoption of this guidance should not have a material effect on the Corporation’s financial condition or results of operations.

Other issued but not yet effective accounting standards were reviewed and management has concluded that none apply or are material to the Company’s financial statements.

OPERATING SEGMENTS: While Management monitors the revenue streams of the various products and services, the identifiable segments are not material and operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered to be aggregated in one reportable segment, banking.

RECLASSIFICATION: Some items in the prior year financial statements may be reclassified to conform to the current presentation.

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SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Schedule of Repurchase Agreements [Table Text Block]

The Company’s short-term borrowings consisted entirely of repurchase agreements in 2013 and 2012. Information regarding repurchase agreements is summarized below:

	2013			2012
Outstanding at December 31,	$	8,428,046		$	10,190,059
Average interest rate at year end		0.56	%		0.59	%
Average balance during year		9,706,847			9,241,260
Average interest rate during year		0.58	%		0.75	%
Maximum month end balance during year		10,878,256			12,037,087

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FAIR VALUE MEASUREMENTS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Impaired Financing Receivable, Recorded Investment	$ 1,022,525	$ 2,394,211
Impaired Financing Receivable, Related Allowance	1,610,904	1,810,376
Loans Additional Provisions	199,427	13,000
Foreclosed Assets Fair Value Disclosure	533,215	521,738
Foreclosed Assets Written Down	$ 55,524	$ 128,139

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Line Items]
Percentage Of Loans Exchanged	100.00%
Servicing Asset at Fair Value, Amount	$ 37,217	$ 41,650
Cash Reserve Deposit Required and Made	1,426,000	1,750,000
Loans Receivable Held-for-sale, Amount	240,055	6,040,869
Transfer of Loans Held-for-sale to Portfolio Loans	$ 5,881,651	$ 0
Equity Option [Member]
Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,000	15,300
Land and Building [Member] | Maximum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Land and Building [Member] | Minimum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Commercial Portfolio Segment [Member]
Accounting Policies [Line Items]
Percentage Of Loans Classified To Each Portfolio	36.00%
Commercial Real Estate Portfolio Segment [Member]
Accounting Policies [Line Items]
Percentage Of Loans Classified To Each Portfolio	45.00%
Residential Portfolio Segment [Member]
Accounting Policies [Line Items]
Percentage Of Loans Classified To Each Portfolio	19.00%

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FORECLOSED ASSETS (Details) (Foreclosed Assets [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Foreclosed Assets [Member]
Beginning of year	$ 2,806,781	$ 3,276,838
Additions	654,801	1,352,547
Reductions from sales	(706,633)	(1,442,520)
Direct write-downs	(196,650)	(380,084)
End of period	2,558,299	2,806,781
Expenses related to foreclosed assets include:
Operating expenses, net of rental income	$ 211,459	$ 220,976

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STOCK OPTIONS (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	1 year 11 months 8 days
Employee Stock Option Plan of 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	53,000
Director Stock Option Plan of 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,000
Director Stock Option Plan of 2005 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	20,000

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CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from financial institutions	$ 3,758,535	$ 2,979,189
Interest-bearing deposits in other financial institutions	13,374,206	17,317,926
Cash and cash equivalents	17,132,741	20,297,115
Securities available for sale (at fair value)	31,230,246	41,460,396
Loans held for sale	240,055	6,040,869
Loans	131,554,244	125,830,250
Less: Allowance for loan losses	2,809,642	3,382,977
Net loans	128,744,602	122,447,273
Federal Home Loan Bank stock (at cost)	450,800	450,800
Premises and equipment, net	9,145,467	9,420,886
Accrued interest receivable	466,538	592,043
Foreclosed assets	2,558,299	2,806,781
Other assets	810,590	715,200
Total assets	190,779,338	204,231,363
Deposits
Non-interest-bearing	33,313,136	40,271,190
Interest-bearing	138,626,729	143,905,303
Total deposits	171,939,865	184,176,493
Federal funds purchased and repurchase agreements	8,428,046	10,190,059
Notes payable	1,280,000	5,000,000
Subordinated debentures	4,500,000	4,500,000
Accrued expenses and other liabilities	968,558	1,603,907
Total liabilities	187,116,469	205,470,459
Shareholders' equity
Preferred Stock, no par value: 1,000,000 shares authorized and none issued	0	0
Common Stock, no par value: 9,000,000 shares authorized; 1,468,800 issued and outstanding	13,296,691	13,296,691
Retained deficit	(9,276,599)	(14,816,593)
Accumulated other comprehensive (loss) income	(357,223)	280,806
Total shareholders’ equity	3,662,869	(1,239,096)
Total liabilities and shareholders’ equity (deficit)	$ 190,779,338	$ 204,231,363

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LOANS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Loans and Leases Receivable Disclosure [Abstract]
Net deferred loan fees	$ (54,343)	$ (55,642)
Loans	131,554,244	125,830,250
Less: Allowance for loan losses	(2,809,642)	(3,382,977)
Loans, net	128,744,602	122,447,273
Commercial Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	47,081,426	39,915,144
Commercial Real Estate Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	57,101,939	53,096,828
Commercial Real Estate Construction Financing Receivable [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	2,065,308	3,464,366
Consumer Lines of Credit [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	7,737,439	9,105,387
Consumer Other Financing Receivable [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	1,560,384	2,015,234
Consumer Credit Card Financing Receivable [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	451,009	490,802
Residential Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Abstract]
Loans	$ 15,611,082	$ 17,798,131

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2011	$ (1,420,382)	$ 13,296,691	$ (15,084,431)	$ 367,358
Balance (in Shares) at Dec. 31, 2011		1,468,800
Net income	267,838		267,838
Other comprehensive loss	(86,552)			(86,552)
Balance at Dec. 31, 2012	(1,239,096)	13,296,691	(14,816,593)	280,806
Balance (in Shares) at Dec. 31, 2012		1,468,800
Net income	5,539,994		5,539,994
Other comprehensive loss	(638,029)			(638,029)
Balance at Dec. 31, 2013	$ 3,662,869	$ 13,296,691	$ (9,276,599)	$ (357,223)
Balance (in Shares) at Dec. 31, 2013		1,468,800

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SHORT-TERM BORROWINGS (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Investment Repurchase Agreement [Abstract]
Outstanding	$ 8,428,046	$ 10,190,059
Average interest rate at year end	0.56%	0.59%
Average balance during year	9,706,847	9,241,260
Average interest rate during year	0.58%	0.75%
Maximum month end balance during year	$ 10,878,256	$ 12,037,087

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STOCK OPTIONS (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the activity in the plans for 2013 is as follows:

					Weighted
	Number of		Weighted		Average
	Shares		Average		Remaining		Aggregate
	Subject to		Exercise		Contractual		Intrinsic
	Options		Price		Term		Value*
Outstanding at beginning of year		15,300	$	11.94
Granted		0		0
Exercised		0		0
Forfeited or expired		(9,300)		(10.25)
Outstanding at end of year		6,000	$	14.54		1.94	$	0
Exercisable at end of year		6,000	$	14.54		1.94	$	0

*The stock price at December 31, 2013 did not exceed the weighted average option exercise price.

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INCOME TAXES (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Current payable	$ 105,000	$ 0
Deferred liability	0	0
Federal Income Tax expense	$ 105,000	$ 0

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CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

12 Months Ended

Dec. 31, 2013

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 15 - CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

Banks are subject to regulatory capital requirements administered by the federal banking agencies. Since the Company is a one-bank holding company with consolidated assets less than $500 million, regulatory minimum capital ratios are applied only to the Bank. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet various capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications, including well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is not well-capitalized, regulatory approval is required to accept brokered deposits. Subject to limited exceptions, a bank may not make a capital distribution if, after making the distribution, it would be undercapitalized. If a bank is undercapitalized, it is subject to being closely monitored by its principal federal regulator, its asset growth and expansion are restricted, acquisitions, new activities, new branches, payment of dividends or management fees are prohibited and plans for capital restoration are required. In addition, further specific types of restrictions may be imposed on the bank at the discretion of the federal regulator.

At December 31, 2012, the Bank was in the undercapitalized category; however, through earnings and a $25,000 capital contribution from the Company, the Bank was elevated to the adequately capitalized regulatory category as of March 31, 2013. At December 31, 2013, the total risk-based capital ratio of the Bank had risen to 8.48% and the Bank continues to be adequately capitalized.

The Bank’s Consent Order with the FDIC and the DIFS, its primary banking regulators, became effective on September 2, 2010. The Bank agreed to the terms of the Consent Order without admitting or denying any charge of unsafe or unsound banking practices relating to capital, asset quality, or earnings. The Consent Order imposes no fines or penalties on the Bank. The Consent Order will remain in effect and enforceable until it is modified, terminated, suspended, or set aside by the FDIC and DIFS.

The Consent Order required the Bank to implement a written profit plan, a written contingency funding plan, a written plan to reduce the Bank's reliance on brokered deposits, a comprehensive strategic plan; and to develop an analysis and assessment of the Bank's management needs. Under the Consent Order, the Bank is required to maintain higher capital levels than requested under prompt corrective action and the Bank may not declare or pay any dividend without the prior written consent of the regulators.

Prior to the issuance of the Consent Order, the Bank's Board of Directors and management had already commenced initiatives and strategies to address a number of the requirements of the Consent Order. The Bank continues to work in cooperation with its regulators. Our ability to fully comply with all of the requirements of the Consent Order, including achieving and maintaining specified capital levels, is not entirely within our control, and is not assured. Our ability to comply with the requirements of the Consent Order may be affected by many factors, including the availability of capital and other funds, the extent of repayment of loans by borrowers, declines in the value of collateral including real estate, the Bank's ability to realize on collateral, and actions by bank regulators. Failure to comply with provisions of the Consent Order may result in further regulatory action including additional regulatory restriction or receivership that could have a material adverse effect on us and our shareholders, as well as the Bank.

There were several directives related to loans contained in the Consent Order. All action plans were submitted to the FDIC as required. As of September 11, 2013, action plan submission is no longer required; however, management continues to update plans as needed and works diligently to mitigate and reduce associated credit risk.

Under the Consent Order, the Bank was required, within 90 days of September 2, 2010, to have and maintain its level of tier one capital, as a percentage of its total assets, at a minimum of 8.5%, and its level of qualifying total capital, as a percentage of risk-weighted assets, at a minimum of 11%. The Bank was not in compliance with this requirement at December 31, 2013 or either December 31, 2010, 2011 or 2012. Management continues to explore options to raise the capital required for full compliance. At year- end 2013, a capital contribution of $6,051,000 would have been needed to meet the capital ratios specified in the Consent Order.

Included in the tables are the actual capital amounts and ratios for the Bank and the required capital amounts and ratios for the Bank at December 31, 2013 and 2012.

						Minimum Required					Minimum Required
						For Capital					Under
	Actual					Adequacy Purposes					Consent Order
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital (Tier 1 and Tier 2) to risk-weighted assets of the Bank	$	11,420,073		8.48	%	$	10,769,246		8.00	%	$	14,807,713		11.00	%
Tier 1 (Core) Capital to risk-weighted assets of the Bank		9,723,466		7.22			5,384,623		4.00			N/A		N/A
Tier 1 (Core) Capital to average assets of the Bank		9,723,466		5.24			7,423,426		4.00			15,774,781		8.50

						Minimum Required					Minimum Required
						For Capital					Under
	Actual					Adequacy Purposes					Consent Order
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2012
Total Capital (Tier 1 and Tier 2) to risk-weighted assets of the Bank	$	10,760,348		7.88	%	$	10,928,836		8.00	%	$	15,027,149		11.00	%
Tier 1 (Core) Capital to risk-weighted assets of the Bank		9,032,034		6.61			5,464,418		4.00			N/A		N/A
Tier 1 (Core) Capital to average assets of the Bank		9,032,034		4.53			7,976,194		4.00			16,949,413		8.50

Federal Reserve guidelines limit the amount of allowance for loan losses that can be included in tier two capital. In general, only 1.25% of net risk-weighted assets are allowed to be included. At December 31, 2013, only $1,696,607 was counted as tier two capital and $1,113,035 was disallowed. At December 31, 2012, $1,728,314 was counted as tier two capital and $1,654,663 was disallowed.

Under the Consent Order, the Bank is restricted from declaring or paying dividends without prior written authorization of the FDIC. The Bank is in full compliance with this restriction.

As required by the Consent Order, the Bank adopted a detailed liquidity plan on November 17, 2010 which provided for intended liquidity sources to meet the Bank’s assessed liquidity needs over the time horizons of 6, 12 and 18 months. The liquidity plan was meant to address the stipulation in the Consent Order that prohibited the Bank from accepting brokered deposits. To meet this restriction, the Bank’s liquidity plan entailed replacing maturing brokered deposits with a combination of local deposits and internet based time deposits. Since the beginning of 2010, the Bank has successfully used this strategy. There were no brokered deposits outstanding at year-end 2013 or 2012. The Bank has been able to maintain sufficient liquidity for its required payments despite the restriction on issuing brokered deposits.

On August 17, 2011, the Bank was issued a Supervisory Prompt Corrective Action Directive (the “Directive”) because of its undercapitalized capital category at December 31, 2010, its failure to submit a capital restoration plan that satisfies the requirements stipulated in the FDIC Rules and Regulations, and the continued deterioration of the Bank. Through several quarters of earnings and a $25,000 capital contribution from the Company, the Bank reached an adequately capitalized regulatory capital category at March 31, 2013 and has maintained its adequately capitalized status since that time. The FDIC officially released the Directive in a letter to the board dated February 6, 2014.

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CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)

12 Months Ended

Dec. 31, 2013

Regulatory Capital Requirements [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

Included in the tables are the actual capital amounts and ratios for the Bank and the required capital amounts and ratios for the Bank at December 31, 2013 and 2012.

						Minimum Required					Minimum Required
						For Capital					Under
	Actual					Adequacy Purposes					Consent Order
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital (Tier 1 and Tier 2) to risk-weighted assets of the Bank	$	11,420,073		8.48	%	$	10,769,246		8.00	%	$	14,807,713		11.00	%
Tier 1 (Core) Capital to risk-weighted assets of the Bank		9,723,466		7.22			5,384,623		4.00			N/A		N/A
Tier 1 (Core) Capital to average assets of the Bank		9,723,466		5.24			7,423,426		4.00			15,774,781		8.50

						Minimum Required					Minimum Required
						For Capital					Under
	Actual					Adequacy Purposes					Consent Order
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2012
Total Capital (Tier 1 and Tier 2) to risk-weighted assets of the Bank	$	10,760,348		7.88	%	$	10,928,836		8.00	%	$	15,027,149		11.00	%
Tier 1 (Core) Capital to risk-weighted assets of the Bank		9,032,034		6.61			5,464,418		4.00			N/A		N/A
Tier 1 (Core) Capital to average assets of the Bank		9,032,034		4.53			7,976,194		4.00			16,949,413		8.50

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PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 17 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION 

Following are condensed parent company only financial statements:

CONDENSED BALANCE SHEETS

December 31,

	2013		2012
ASSETS
Cash and cash equivalents	$	609,536	$	7,746
Investment in subsidiaries		9,408,524		9,344,766
Other assets		3,110		1,375
Total assets	$	10,021,170	$	9,353,887
LIABILITIES AND EQUITY
Accrued expenses and other liabilities	$	578,301	$	1,092,983
Notes payable		1,280,000		5,000,000
Subordinated debentures		4,500,000		4,500,000
Shareholders’ equity (deficit)		3,662,869		(1,239,096)
Total liabilities and shareholders’ equity	$	10,021,170	$	9,353,887

 

CONDENSED STATEMENTS OF INCOME

Years Ended December 31,

	2013		2012
Other income	$	227	$	83
Gain on the extinguishment of debt		5,263,653		0
Interest expense		(199,767)		(429,959)
Other expense		(92,341)		(58,148)
Income (loss) before income tax benefit and undistributed subsidiary income		4,971,772		(488,024)
Equity in undistributed subsidiary income		673,222		755,862
Federal income tax expense		105,000		0
Net income		5,539,994		267,838
Other comprehensive loss		(638,029)		(86,552)
Comprehensive income	$	4,901,965	$	181,286

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31,

	2013		2012
Cash flows from operating activities
Net income	$	5,539,994	$	267,838
Equity in undistributed subsidiary income		(673,222)		(755,862)
Net realized gain on the extinguishment of debt		(5,262,653)		0
Net change in:
Other assets		(1,735)		20,578
Other liabilities		247,971		430,029
Net cash used by operating activities		(149,645)		(37,417)
Cash flows from (for) investing activities
Capital investment (into) redeemed from subsidiaries		(28,565)		11,230
Net cash from (used by) investing activities		(28,565)		11,230
Cash flows from financing activities
Draws on notes payable and line of credit		1,280,000		0
Repayment of note payable		(500,000)		0
Net cash from financing activities		780,000		0
Net change in cash and cash equivalents		601,790		(26,187)
Beginning cash and cash equivalents		7,746		33,933
Ending cash and cash equivalents	$	609,536	$	7,746

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INCOME TAXES (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 3,890,935	$ 5,704,179
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	7,466,000
Net Operating Loss Carryforwards Offset Future federal Taxable Income Expiration Term	2029
Federal Income Tax Expense (Benefit), Continuing Operations	105,000	0
Deferred Tax Assets Valuation Allowance [Member]
Income Tax [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 4,200,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net income	$ 5,539,994	$ 267,838
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	0	75,035
Depreciation and amortization	426,414	397,832
Net amortization of securities	364,524	320,645
Net realized gain on sale of securities	0	(21,522)
Net realized gain on sale of loans	(197,558)	(283,653)
Net realized gain on sale of premises and equipment	(1,000)	(220,889)
Net realized (gain) loss on sale of foreclosed assets	(218,137)	57,204
Net realized gain on the extinguishment of debt	(5,262,653)	0
Foreclosed asset impairment	196,650	380,084
Originations of loans for sale	(8,906,627)	(15,608,064)
Proceeds from loan sales	9,023,348	15,385,831
Net change in:
Accrued interest receivable and other assets	30,115	(174,576)
Accrued interest payable and other liabilities	127,304	392,205
Net cash from operating activities	1,122,374	967,970
Cash flows from investing activities
Sales	0	1,652,411
Maturities, prepayments and calls	9,227,597	11,231,294
Purchases	0	(20,157,673)
Loan originations and payments, net	(1,056,146)	20,587,970
Proceeds from the sale of premises and equipment	1,000	1,011,024
Additions to premises and equipment	(150,995)	(203,988)
Proceeds from the sale of foreclosed assets	910,437	1,281,968
Net cash from investing activities	8,931,893	15,403,006
Cash flows from financing activities
Net change in deposits	(12,236,628)	(7,368,743)
Net change in federal funds purchased and repurchase agreements	(1,762,013)	2,375,314
Other borrowing activity:
Repayment of note payable	(500,000)	0
Issuance of senior debt	1,280,000	0
Net cash used in financing activities	(13,218,641)	(4,993,429)
Net change in cash and cash equivalents	(3,164,374)	11,377,547
Beginning cash and cash equivalents	20,297,115	8,919,568
Ending cash and cash equivalents	17,132,741	20,297,115
Supplemental cash flows information:
Cash paid during the period for interest	1,119,820	1,470,959
Transfers from loans to foreclosed assets	654,801	1,352,547
Transfers from loans held for sale to portfolio loans	5,881,651	0
Foreclosed asset sales financed by the Bank	$ 14,333	$ 103,348

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Preferred Stock, par value (in Dollars per share)	$ 0	$ 0
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, par value (in Dollars per share)	$ 0	$ 0
Common Stock, Shares Authorized	9,000,000	9,000,000
Common Stock, Shares, Issued	1,468,800	1,468,800
Common Stock, Shares, Outstanding	1,468,800	1,468,800

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NOTES PAYABLE

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 10 – NOTES PAYABLE

On January 3, 2011, the Company’s $5,000,000 term loan with Fifth Third Bank (“Fifth Third”) matured. The Company did not have the resources to pay the amount due. The loan was in default at year-end 2012. In addition to the outstanding principal due, there was accrued interest of $763,000 at December 31, 2012. The outstanding principal had an interest rate of 6.00% per annum; 275 basis points above Fifth Third’s prime rate.

On March 20, 2013, the Company, with approval from the FRB, borrowed $1,280,000 from 1030 Norton LLC, a Michigan limited liability company owned by nine individuals; three directors of the Company-Gary F. Bogner, Robert L. Chandonnet and Bruce J. Essex, one former director and five local businessmen, and settled its debt in full with Fifth Third for $500,000. In addition to the payment to Fifth Third, the proceeds of the new senior debt will be used for interest carry, general operations and potential capital support for the Bank. The note bears interest at a fixed rate of 8.00% per annum until paid in full.

Interest is payable quarterly, in arrears. The note matures on March 31, 2015. The note is secured by a pledge of all of the issued and outstanding shares of the Bank as evidenced by a pledge agreement between the Company and 1030 Norton LLC. The accrued interest at December 31, 2013 was approximately $26,000. The entire interest balance due was paid on January 2, 2014.

Settling the Fifth Third debt resulted in a gain of approximately $5.3 million in the first quarter of 2013. As a result of this transaction, the Company was able to achieve positive shareholders’ equity of approximately $4 million at March 31, 2013.

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 15, 2014	Jun. 30, 2013
Document Information [Line Items]
Entity Registrant Name	COMMUNITY SHORES BANK CORP
Entity Central Index Key	0001070523
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CSHB
Entity Common Stock, Shares Outstanding		1,468,800
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 3,562,000

XML

BENEFIT PLANS

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 11 - BENEFIT PLANS

The Company’s 401(k) benefit plan allows employee contributions up to the dollar limit set by law which was $17,500 for 2013 and $17,000 for 2012. The Company may, at its discretion, make a matching contribution. The matching formula is 100% of the first 3% of compensation contributed and 50% of the next 3%. The Company did not make any matching contributions in 2012 or 2013. Upon reinstatement of the matching contribution, the plan will qualify as a Safe Harbor 401(k) Plan.

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FAIR VALUE MEASUREMENTS (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 764,286	$ 1,011,306
Foreclosed assets	533,215	521,738
Commercial Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	23,820	84,755
Commercial Real Estate Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	786,282
Foreclosed assets	513,000	141,596
Consumer Lines of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	140,859
Consumer Other Financing Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0
Consumer Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	599,607
Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		140,269
Foreclosed assets	20,215
Commercial Real Estate Construction Financing Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed assets		380,142
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	764,286	1,011,306
Foreclosed assets	533,215	521,738
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	23,820	84,755
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	786,282
Foreclosed assets	513,000	141,596
Fair Value, Inputs, Level 3 [Member] | Consumer Lines of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	140,859
Fair Value, Inputs, Level 3 [Member] | Consumer Other Financing Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0
Fair Value, Inputs, Level 3 [Member] | Consumer Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	599,607
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		140,269
Foreclosed assets	20,215
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed assets		$ 380,142

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CONSOLIDATED STATEMENTS OF INCOME (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest and dividend income
Loans, including fees	$ 6,998,864	$ 8,054,124
Securities	532,562	654,561
Federal funds sold, FHLB dividends and other income	48,236	64,318
Total interest and dividend income	7,579,662	8,773,003
Interest expense
Deposits	976,814	1,389,337
Repurchase agreements, federal funds purchased, and other debt	56,042	69,768
Federal Home Loan Bank advances and notes payable	199,767	429,959
Total interest expense	1,232,623	1,889,064
Net Interest Income	6,347,039	6,883,939
Provision for loan losses	0	75,035
Net Interest Income After Provision for Loan Losses	6,347,039	6,808,904
Non-interest income
Service charges on deposit accounts	609,306	680,441
Gain on sale of loans	197,558	283,653
Gain on sale of securities	0	21,522
Gain (loss) on sale of foreclosed assets	218,137	(57,204)
Gain on sale of premises and equipment	1,000	220,889
Gain on the extinguishment of debt	5,262,653	0
Other	654,313	537,339
Total non-interest income	6,942,967	1,686,640
Non-interest expense
Salaries and employee benefits	3,706,438	3,774,039
Occupancy	652,892	638,722
Furniture and equipment	387,074	401,591
Advertising	45,321	54,827
Data processing	611,060	568,703
Professional services	340,321	310,499
Foreclosed asset impairment	196,650	380,084
FDIC Insurance	435,206	710,939
Other	1,270,050	1,388,302
Total non-interest expense	7,645,012	8,227,706
Income Before Federal Income Taxes	5,644,994	267,838
Federal income tax expense	105,000	0
Net Income	$ 5,539,994	$ 267,838
Basic average shares outstanding (in shares)	1,468,800	1,468,800
Diluted average shares outstanding (in shares)	1,468,800	1,468,800
Basic earnings per share (in dollars per share)	$ 3.77	$ 0.18
Diluted earnings per share (in dollars per share)	$ 3.77	$ 0.18

XML

PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 5 - PREMISES AND EQUIPMENT

Period end premises and equipment were as follows at December 31:

	2013		2012
Land & land improvements	$	4,700,464	$	4,700,464
Buildings & building improvements		6,201,507		6,132,163
Furniture, fixtures and equipment		3,864,940		3,800,460
		14,766,911		14,633,087
Less:  accumulated depreciation		5,621,444		5,212,201
	$	9,145,467	$	9,420,886

During 2013, there was a gain of $1,000 on the sale of premises and equipment. During 2012, the Company recorded a $220,889 gain on sale of premises and equipment. In addition to $2,500 received for fully depreciated bank equipment, land with a carrying value of $790,135 was sold resulting in a gain of $218,389.

Depreciation expense was $408,990 for 2013 and $397,832 for 2012.

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FORECLOSED ASSETS

12 Months Ended

Dec. 31, 2013

Repossessed Assets [Abstract]

Foreclosed Assets [Text Block]

NOTE 4 – FORECLOSED ASSETS

Foreclosed asset activity for the year ended December 31:

	2013		2012
Beginning of year	$	2,806,781	$	3,276,838
Additions		654,801		1,352,547
Reductions from sales		(706,633)		(1,442,520)
Direct write-downs		(196,650)		(380,084)
End of year	$	2,558,299	$	2,806,781

Expenses related to foreclosed assets include:

	2013		2012
Operating expenses, net of rental income	$	211,459	$	220,976

A significant portion of the operating expenses is related to property taxes paid on the foreclosed assets. These amounts can vary from year-to-year depending on the number and types of foreclosed properties as well as the timing of the payments.

XML

OFF-BALANCE SHEET ACTIVITIES

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Off Balance Sheet Activities [Text Block]

NOTE 16 – OFF-BALANCE SHEET ACTIVITIES

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of unfunded financial instruments with off-balance sheet risk was as follows at December 31, 2013 and 2012:

	2013				2012
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Unused lines of credit	$	1,711,768	$	19,602,468	$	1,103,553	$	20,452,062
Unused standby letters of credit		0		1,262,000		0		1,262,000
Commitments to make loans		243,721		0		253,000		0

Commitments to make loans are generally made for periods of 60 days or less.

XML

INCOME TAXES

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 12- INCOME TAXES

The consolidated provision for federal income tax expense at December 31, 2013 and 2012 was as follows:

	2013		2012
Current payable	$	105,000	$	0
Deferred liability		0		0
	$	105,000	$	0

The net deferred tax asset includes the following amounts of deferred tax assets and liabilities as of December 31, 2013 and 2012:

	2013		2012
Deferred tax asset
Allowance for loan losses	$	527,146	$	720,764
Non-accrual loans		84,892		122,734
Deferred loan costs, net		18,477		18,918
AMT credit carryforward		85,306		0
Accrued Expenses (461h)		20,163		0
Foreclosed assets		1,069,467		1,359,106
Other		1,916		20,497
Net operating loss carryforward		2,555,381		3,971,753
		4,362,748		6,213,772
Deferred tax liabilities
Depreciation	$	(215,388)	$	(236,196)
Accretion on securities		(2,695)		(1,520)
Unrealized gain on securities available for sale		(217,229)		(217,229)
Prepaid expenses		(24,856)		(43,003)
Other		(11,645)		(11,645)
		(471,813)		(509,593)
	$	3,890,935	$	5,704,179
Valuation allowance		(3,890,935)		(5,704,179)
Net deferred tax asset	$	0	$	0

Accounting guidance related to income taxes requires that companies assess whether a valuation allowance should be established against their deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard.  In making such judgments, the Company considers both positive and negative evidence and analyzes changes in near-term market conditions as well as other factors which may impact future operating results. Significant weight is given to evidence that can be objectively verified. Consequently, the Company determined it necessary to carry a valuation allowance against our entire net deferred tax asset each reporting period since 2009.  

The realization of the Company’s deferred tax assets is largely dependent upon the ability to generate future income. Although the Company recognized a profit in 2013 and 2012, there must be a consistent trend of profitability in order to support the realization of deferred tax assets. The valuation allowance against the Company’s deferred tax assets may be reversed to income in future periods to the extent that the related deferred income tax assets are realized or the valuation allowance is otherwise no longer required.  The Company will continue to monitor its deferred tax assets quarterly for changes affecting their realizability.

A reconciliation of the difference between federal income tax expense and the amount computed by applying the statutory rate of 34% in 2013 and 2012 is as follows:

	2013		2012
Tax at statutory rate	$	1,919,298	$	91,065
Tax-exempt interest income		(22,650)		(28,643)
Other		21,596		10,184
Change in valuation allowance		(1,813,244)		(72,606)
Federal income tax expense	$	105,000	$	0

As a result of the large gain on the extinguishment of debt, the Company recorded income tax expense from operations in the amount of $105,000. This amount represents projected taxable earnings subject to alternative minimum taxation which may fluctuate in future periods with changes in operating results.

There were no unrecognized tax benefits at December 31, 2013, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next 12 months.

As of December 31, 2013, the Company has a net operating loss carryforward of $7,466,000 to be utilized to offset future taxable income that will begin expiring in 2029. The gain on the extinguishment of debt is primarily responsible for the $4.2 million reduction of net operation loss carry-forward since year-end 2012.

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FEDERAL HOME LOAN BANK BORROWINGS

12 Months Ended

Dec. 31, 2013

Federal Home Loan Banks [Abstract]

Federal Home Loan Bank, Advances [Text Block]

NOTE 8 – FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the FHLB of Indianapolis. Based on its current FHLB stock holdings and collateral, the Bank has the capacity to borrow $2,657,121. Each borrowing requires a direct pledge of securities and or loans. To support potential borrowings with the FHLB, the Bank had residential loans with a carrying value of $3,709,600 pledged at year-end 2013 and $2,665,434 pledged at year-end 2012. The Bank had no outstanding borrowings with the FHLB at either December 31, 2012 or 2013.

XML

SHORT-TERM BORROWINGS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Pledged Assets Separately Reported, Securities Pledged for Federal Home Loan Bank, at Fair Value	$ 10,561,358	$ 9,283,494
Home Equity Line of Credit [Member]
Available-for-sale Securities Pledged as Collateral	660,331
Discount Window [Member]
Available-for-sale Securities Pledged as Collateral	1,403,319
United States Department of Agriculture Loan [Member]
Available-for-sale Securities Pledged as Collateral	$ 2,283,752

XML

DEPOSITS

12 Months Ended

Dec. 31, 2013

Banking and Thrift [Abstract]

Deposit Liabilities Disclosures [Text Block]

NOTE 6 - DEPOSITS

The components of the outstanding deposit balances at December 31, 2013 and 2012 were as follows:

	2013		2012
Non-interest-bearing DDA	$	33,313,136	$	40,271,190
Interest-bearing DDA		24,861,560		22,865,704
Money market		19,202,665		18,602,302
Savings		10,214,719		9,018,387
Certificate of deposit		84,347,785		93,418,910
	$	171,939,865	$	184,176,493

Time deposits of $100,000 or more were $9,995,133 at year-end 2013 and $10,002,735 at year-end 2012.

There were no brokered deposits at either December 31, 2013 or December 31, 2012. Since the Bank was not categorized as “well-capitalized” at December 31, 2013 and is under a Consent Order, a regulatory waiver is required to accept, renew or rollover brokered deposits. The Bank has not issued brokered deposits since January 2010.

Scheduled maturities of time deposits, as of December 31, 2013, were as follows:

2014	$	37,160,846
2015		31,894,144
2016		11,762,926
2017		3,019,839
2018		510,030
	$	84,347,785

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SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

NOTE 7 – SHORT-TERM BORROWINGS

The Company’s short-term borrowings consisted entirely of repurchase agreements in 2013 and 2012. Information regarding repurchase agreements is summarized below:

	2013			2012
Outstanding at December 31,	$	8,428,046		$	10,190,059
Average interest rate at year end		0.56	%		0.59	%
Average balance during year		9,706,847			9,241,260
Average interest rate during year		0.58	%		0.75	%
Maximum month end balance during year		10,878,256			12,037,087

The Bank had securities of $10,561,358 pledged to repurchase agreements at December 31, 2013 and $9,283,494 pledged at December 31, 2012.

Another source of short-term borrowings is available through the Federal Reserve Discount Window (“Discount Window”).The Bank could request to borrow from the Discount Window under the secondary credit program. Any request to borrow would require approval by the FDIC and a pledge of collateral. At December 31, 2013, collateral available for Discount Window borrowings consisted of $1,403,319 in securities, $660,331 in home equity loans and $2,283,752 in one USDA loan. There have been no borrowings from the Discount Window since January 2010.

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SUBORDINATED DEBENTURES

12 Months Ended

Dec. 31, 2013

Subordinated Borrowings [Abstract]

Subordinated Borrowings Disclosure [Text Block]

NOTE 9 – SUBORDINATED DEBENTURES

The Trust, as defined in Note 1, sold 4,500 Cumulative Preferred Securities (“trust preferred securities”) at $1,000 per security in a December 2004 offering. The proceeds from the sale of the trust preferred securities were used by the Trust to purchase an equivalent amount of subordinated debentures from the Company. The trust preferred securities and subordinated debentures carry a floating rate of 2.05% over the 3-month LIBOR and was 2.30% at December 31, 2013 and 2.36% at December 31, 2012. The stated maturity is December 30, 2034. The trust preferred securities are redeemable at par value on any interest payment date and are, in effect, guaranteed by the Company. Interest on the subordinated debentures is payable quarterly on March 30^th, June 30^th, September 30^th and December 30^th. The Company is not considered the primary beneficiary of the Trust (under the variable interest entity rules), therefore the Trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability, and the interest expense is recorded on the Company’s consolidated statement of income.

The terms of the subordinated debentures, the trust preferred securities and the agreements under which they were issued, give the Company the right, from time to time, to defer payment of interest for up to 20 consecutive quarters, unless certain specified events of default have occurred and are continuing. The deferral of interest payments on the subordinated debentures results in the deferral of distributions on the trust preferred securities. In May 2010, the Company exercised its option to defer regularly scheduled quarterly interest payments beginning with the quarterly interest payment that was scheduled to be paid on June 30, 2010. The Company’s deferral of interest does not constitute an event of default.

During the deferral period, interest will continue to accrue on the subordinated debentures. Also, the deferred interest will accrue interest. At the expiration of the deferral period, all accrued and unpaid interest will become immediately due and payable. The end of the allowable deferral period will be March 31, 2015.

The indenture under which the subordinated debentures were issued prohibits certain actions by the Company during the deferral period. Among other things, during the deferral period and subject to certain exceptions, the Company is prohibited from declaring or paying any dividends or distributions on, or redeeming, purchasing, acquiring or making any liquidation payment with respect to, any shares of its capital stock. Although the Company has not determined the duration of the deferral period, as of December 16, 2010, under the FRB Written Agreement, the Company is prohibited from making any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities without prior FRB approval. The accrued interest payable on the subordinated debentures was $444,042 at December 31, 2013 and $325,911 at December 31, 2012 and is included in accrued expenses and other liabilities on the consolidated balance sheets at December 31, 2013 and 2012.

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BENEFIT PLANS (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount	$ 17,500	$ 17,000
Description Of Defined Contribution Plan Employer Matching Contribution Percent of Match	The Company may, at its discretion, make a matching contribution. The matching formula is 100% of the first 3% of compensation contributed and 50% of the next 3%.

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INCOME TAXES (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Deferred tax asset
Allowance for loan losses	$ 527,146	$ 720,764
Non-accrual loans	84,892	122,734
Deferred loan costs, net	18,477	18,918
AMT credit carryforward	85,306	0
Accrued Expenses (461h)	20,163	0
Foreclosed assets	1,069,467	1,359,106
Other	1,916	20,497
Net operating loss carryforward	2,555,381	3,971,753
Deferred Tax Assets, Gross	4,362,748	6,213,772
Deferred tax liabilities
Depreciation	(215,388)	(236,196)
Accretion on securities	(2,695)	(1,520)
Unrealized gain on securities available for sale	(217,229)	(217,229)
Prepaid expenses	(24,856)	(43,003)
Other	(11,645)	(11,645)
Deferred Tax Liabilities, Gross	(471,813)	(509,593)
Deferred Tax Assets, Net	3,890,935	5,704,179
Valuation allowance	(3,890,935)	(5,704,179)
Net deferred tax asset	$ 0	$ 0

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NOTES PAYABLE (Details Textual) (USD $)	1 Months Ended	3 Months Ended
	Mar. 20, 2013	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jan. 03, 2011
Notes Payable			$ 1,280,000	$ 5,000,000
Repayments of Debt	500,000
Gain (Loss) on Non-Recourse Debt		5,300,000
Stockholders' Equity Attributable to Parent		4,000,000	3,662,869	(1,239,096)	(1,420,382)
Fifth Third Bank [Member]
Notes Payable						5,000,000
Repayments of Debt	500,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%			6.00%
Interest Payable, Current				763,000
1030 Norton LLC [Member]
Notes Payable	1,280,000
Debt Instrument, Maturity Date	Mar. 31, 2015
Interest Payable, Current			$ 26,000

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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

Loans and commitments to principal officers, directors and their affiliates in 2013 and 2012 were as follows:

	2013		2012
Beginning balance	$	2,456,594	$	3,818,259
New loans and line advances		92,419		202,166
*Effect of changes in related parties		(99,000)		0
Repayments		0		(1,563,831)
Ending balance	$	2,450,013	$	2,456,594

*The effect of a director resigning from the board and is no longer considered a related party.

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LOANS (Details 6) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	$ 131,895,595	$ 126,239,375
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	47,182,404	40,027,563
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	59,275,186	56,714,348
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	2,071,737	3,479,043
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	15,652,447	17,846,149
Consumer Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	7,766,891	9,135,422
Consumer Other Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,567,658	2,025,091
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	451,009	490,802
Credit Rating One [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating One [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating One [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Two [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	94,676	298,200
Credit Rating Two [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Two [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Three [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	8,623,409	2,004,476
Credit Rating Three [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	5,524,989	4,141,391
Credit Rating Three [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Four [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	13,898,810	14,017,221
Credit Rating Four [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	18,675,411	12,911,811
Credit Rating Four [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	441,114	384,848
Credit Rating Five [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	17,539,364	16,373,423
Credit Rating Five [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	20,604,611	22,177,734
Credit Rating Five [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	233,302	1,695,990
Credit Rating Five M [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	4,255,639	3,318,016
Credit Rating Five M [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	5,114,931	3,675,131
Credit Rating Five M [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,397,321	1,398,205
Credit Rating Six [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,699,009	2,180,119
Credit Rating Six [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	4,908,058	7,365,970
Credit Rating Six [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Seven [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,052,903	1,369,803
Credit Rating Seven [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	229,576	287,682
Credit Rating Seven [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Credit Rating Eight [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	18,594	466,305
Credit Rating Eight [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	2,145,873	2,675,586
Credit Rating Eight [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	0	0
Performing Loans [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	14,524,492	17,063,417
Performing Loans [Member] | Consumer Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	7,363,137	8,944,652
Performing Loans [Member] | Consumer Other Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,452,984	1,894,041
Performing Loans [Member] | Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	451,009	490,802
Impaired Loans [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	1,127,955	782,732
Impaired Loans [Member] | Consumer Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	403,754	190,770
Impaired Loans [Member] | Consumer Other Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	114,674	131,050
Impaired Loans [Member] | Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Net	$ 0	$ 0

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STOCK OPTIONS

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 14 – STOCK OPTIONS

The Company has two share-based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $0 for both 2012 and 2013. Consequently, there was no income tax benefit recorded for either 2012 or 2013.

Stock Option Plans

Options to buy stock were granted to nonemployee directors of the Company under the Director Stock Option Plan of 2005. The plan provided for the issuance of options for up to 20,000 shares of stock of the Company. The exercise price for options issued under this plan was not less than the market price per share as of the date of grant. The maximum option term is ten years. Outstanding options under the plan were exercisable in full as of the date the options were granted.

A summary of the activity in the plans for 2013 is as follows:

					Weighted
	Number of		Weighted		Average
	Shares		Average		Remaining		Aggregate
	Subject to		Exercise		Contractual		Intrinsic
	Options		Price		Term		Value*
Outstanding at beginning of year		15,300	$	11.94
Granted		0		0
Exercised		0		0
Forfeited or expired		(9,300)		(10.25)
Outstanding at end of year		6,000	$	14.54		1.94	$	0
Exercisable at end of year		6,000	$	14.54		1.94	$	0

*The stock price at December 31, 2013 did not exceed the weighted average option exercise price.

As of December 31, 2013, there were 2,000 shares available for grant in the Director Stock Option Plan of 2005 and 53,000 shares available to grant in the Employee Stock Option Plan of 2005.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of Community Shores Bank Corporation (the “Company”) and its wholly-owned subsidiaries, Community Shores Financial Services (“CS Financial Services”), and Community Shores Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, Community Shores Mortgage Company (the “Mortgage Company”) and the Mortgage Company’s wholly-owned subsidiary, Berryfield Development, LLC (“Berryfield”), after elimination of significant intercompany transactions and accounts.

Nature Of Operations Policy [Policy Text Block]

NATURE OF OPERATIONS: The Company was incorporated on July 23, 1998 under Michigan law and is a bank holding company owning all of the common stock of the Bank. The Bank is a Michigan banking corporation with depository accounts insured by the FDIC. The Bank provides a range of commercial and consumer banking services in West Michigan, primarily in Muskegon County, which includes the cities of Muskegon and North Muskegon, and Northern Ottawa County, which includes the city of Grand Haven. Those services reflect the Bank’s strategy of serving small to medium-sized businesses, and individual customers in its market area. Services for businesses include traditional business accounts and both commercial and commercial real estate loans. At year-end 2013, the loan portfolio was 36% commercial and 45% commercial real estate. Slightly more than 1% of total commercial real estate loans were classified as land development. The remaining 19% of the portfolio is more retail oriented and consists of residential real estate and consumer loans. There are no significant concentrations of loans to any one industry or customer; however, the borrowers’ ability to repay their loans is affected by the real estate market and general market conditions in the Bank’s market area. Management centers the Bank’s retail banking strategy on providing traditional banking products and services, automated teller machines, internet banking, telephone banking and electronic bill-paying services to individuals and businesses in the Bank’s market area. The Bank began operations on January 18, 1999.

The Mortgage Company, a wholly-owned subsidiary of the Bank, was formed on March 1, 2002 by transferring a majority of the Bank’s commercial and residential real estate loans at that date in exchange for 100% of the equity capital of the Mortgage Company. On the day of formation, the Mortgage Company commenced operations and became legally able to originate residential mortgage loans. The Bank services the entire portfolio of loans held by the Mortgage Company pursuant to a servicing agreement.

Berryfield, a wholly-owned subsidiary of the Mortgage Company, is a limited liability company that was created in October 2010. The entity’s sole purpose is to oversee the development and sale of vacant lots that have been foreclosed on by the Mortgage Company.

The Company filed an election to become a financial holding company pursuant to Title I of the Gramm-Leach-Bliley Act and on September 27, 2002 received regulatory approval. At that time the Company formed CS Financial Services. Currently the only source of revenue that CS Financial Services receives is referral fee income from a local insurance agency, Lakeshore Employee Benefits. Lakeshore Employee Benefits offers, among other things, employer-sponsored benefit plans. CS Financial Services has the opportunity to earn a referral fee for each sale of employer-sponsored benefits that is transacted by Lakeshore Employee Benefits as a result of a referral made by CS Financial Services. On April 16, 2009, the Company withdrew its election to be a financial holding company. The election was acknowledged by the Federal Reserve Bank of Chicago (“FRB”). The passive income derived from CS Financial Services affiliation with Lakeshore Employee Benefits is unaffected by this change.

Community Shores Capital Trust I, (“the Trust”) was formed in December 2004. The Company owns all of the common securities of this special purpose trust. The Trust is not consolidated because it is a variable interest entity and the Company is not the primary beneficiary. It exists solely to issue capital securities.

Use of Estimates, Policy [Policy Text Block]

USE OF ESTIMATES: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The primary estimates incorporated into the Company’s consolidated financial statements, which are susceptible to change in the near term, include the allowance for loan losses; the fair value of financial instruments, the carrying value of foreclosed assets and a valuation allowance on deferred tax assets.

Cash and Cash Equivalents, Policy [Policy Text Block]

CASH FLOW REPORTING: Cash and cash equivalents includes cash, demand deposits with other financial institutions, short-term investments (securities with daily put provisions) and federal funds sold. Cash flows are reported net for customer loan and deposit transactions, interest-bearing time deposits with other financial institutions and short-term borrowings with maturities of 90 days or less.

Deposit Contracts, Policy [Policy Text Block]

INTEREST-BEARING DEPOSITS IN OTHER FINANCIAL INSTITUTIONS: Interest-bearing deposits in other financial institutions are carried at cost.

Marketable Securities, Policy [Policy Text Block]

SECURITIES: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are expected. Gains and losses on sales are based on the amortized cost of the security sold.

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when the economic conditions warrant such evaluation.

In assessing OTTI losses, management considers: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuer, and whether the Company has the intent to sell or is likely to be required to sell the security before its anticipated recovery. See Note 2

Policy Loans Receivable, Policy [Policy Text Block]

LOANS: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Loans held for sale consisted of residential mortgage loans at year-end 2013, but at year-end 2012 also included Small Business Administration (“SBA”) and United States Department of Agriculture (“USDA”) guaranteed loans. Loans held for sale are reported at the lower of cost or fair value, on an aggregated basis. Residential mortgage loans are sold to outside investors servicing released. There were loans held for sale totaling $240,055 at December 31, 2013 compared to $6,040,869 at December 31, 2012. During 2013, $5.9 million of loans were transferred from held for sale into the held for investment portfolio. The loans that were transferred consisted of SBA and USDA loans. The transfer was based on management’s re-evaluation of the Bank’s intent to sell these loans in the short-term.

The loan portfolio consists of the following segments:

Commercial- Loans to businesses that are sole proprietorships, partnerships, limited liability companies and corporations. These loans are for commercial, industrial, or professional purposes. The risk characteristics of these loans vary based on the borrowers business and industry as repayment is typically dependent on cash flows generated from the underlying business.

Commercial Real Estate- Loans to individuals or businesses that are secured by improved and unimproved vacant land, farmland, commercial real property, multifamily residential properties, and all other conforming, nonresidential properties. Proceeds may be used for land acquisition, development or construction. These loans typically fall into two general categories: property that is owner occupied and income or investment property. Owner occupied commercial real estate loans typically involve the same risks as commercial and industrial loans however the underlying collateral is the real estate which is subject to changes in market value after the loan’s origination. Adverse economic events and changes in real estate market valuations generally describe the risks that accompany commercial real estate loans involving income or investment property. The ability of the borrower to repay tends to depend on the success of the underlying project or the ability of the borrower to sell or lease the property at certain anticipated values.

Consumer- Term loans or lines of credit for the purchase of consumer goods, vehicles or home improvement. The risk characteristics of the loans in this segment vary depending on the type of collateral but for the most part repayment is expected from an individual continuing to generate a cash flow that supports the calculated payment obligation. Secondary support could involve liquidation of collateral.

Residential- Loans to purchase or refinance single family residences. The risks associated with this segment are similar to the risks for consumer loans as far as individual payment obligations however the underlying collateral is the real estate. Real estate is subject to changes in market valuation and can be unstable for a variety of reasons.

For all loan segments, interest income is accrued on the unpaid principal using the interest method assigned to the loan product and includes amortization of net deferred loan fees and costs over the loan term. Interest income is not reported when full loan repayment is in doubt. A loan is moved to non-accrual status when it is past due over 90 days unless the loan is well secured and in the process of collection. If a loan is not past due but deemed to be impaired it will also be moved to non-accrual status. These rules apply to loans in all segments. However certain classes of loans in the consumer segment may simply get charged-off as opposed to moving to non-accrual status.

All interest accrued but not received for a loan placed on non-accrual is reversed against interest income at the time the loan is assigned non-accrual status. Payments received on such loans are applied to principal when there is doubt about recovering the full principal outstanding. Loans are eligible to return to accrual status after six months of timely payment and future payments are reasonably assured.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased by the provision for loan losses and from recoveries of previously charged-off loans and decreased by charge-offs.

The allowance for loan loss analysis is performed monthly. Management’s methodology consists of specific and general components. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors.

The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over the most recent 12 quarters. The historical loss experience is recalculated at the end of each quarter. This actual loss experience is supplemented with current economic factors based on the risks present for each portfolio segment. These current economic factors are also reassessed at the end of each quarter and include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; quality of loan review system; degree of oversight by the Board of Directors; national and local economic trends and conditions; industry conditions; competition and legal and regulatory requirements; and effects of changes in credit concentrations. There were no significant changes to this methodology in 2013; only the addition of a defined minimum loss percentage as described below.

For the commercial and commercial real estate portfolio segments, the historical loss is tracked by original loan grade. The Bank utilizes a numeric grading system for commercial and commercial real estate loans. A grade is assigned to each commercial and commercial real estate loan by assessing information about the specific borrower’s situation and the estimated collateral values. The description of the loan grade criteria is included in Note 3. In 2013 and 2012, with charge-off activity lessening, the calculated historical loss factor assigned to general allocations was considerably reduced. The reduction was large enough that management prudently chose to define and implement a minimum loss percentage for these segments. The minimum specified was meant to ensure adequate coverage for loss expectation for non-impaired loans.

Within the commercial and industrial and commercial real estate portfolios, there are classes of loans with like risk characteristics that are periodically segregated because management has determined that the historical losses or current factors are unique and should be considered separately from the entire segment.

For the consumer segment, historical loss experience is based on the actual loss history of the following four classes; general consumer loans, personal lines of credit, home equity lines of credit and credit cards. The level of delinquencies and charge-off experience directly impacts the general allocations to the consumer classes.

For the residential segment loss experience is not segregated by grades or classes. The level of delinquencies, charge-off experience, and direction of real estate values directly impacts the general allocations to the residential real estate segment.

The specific component of the allowance for loan losses relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans

for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and are classified as impaired.

Factors considered by management in determining impairment include payment status and collateral value. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.

Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Any loan within a segment can be considered for individual impairment if it meets the above criteria. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell.

Allocations of the allowance may be made for specific loans and groups, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Loan balances are generally charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Statutorily, the Bank must charge-off any bad debt that reaches delinquency of 360 days. In the case of an impaired loan, management typically charges off any portion of the debt that is unsecured based on an internal analysis of future cash flows and or collateral.

There was no material change in these operating doctrines during 2013.

Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block]

SERVICING RIGHTS: Servicing rights are recognized separately when they are acquired through the sales of loans where servicing is retained by the institution. At this time SBA guaranteed loans are the only loans that are sold where servicing is retained. When loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Under the fair value measurement method used by the Company, earnings are adjusted for the change in fair value and the amount is included with other non-interest income on the income statement. The Company seeks a third party valuation at least annually to adjust servicing assets to their fair value as of year-end. More frequent valuations may occur if management has reason to believe that there has been a meaningful change in data. The fair value of servicing rights is subject to fluctuation as a result of changes in the underlying assumptions used by the third party to conduct its valuation. Servicing rights were $37,217 at December 31, 2013 and $41,650 at December 31, 2012.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block]

TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets, which include loan sales, are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Federal Home Loan Bank Stock [Policy Text Block]

FEDERAL HOME LOAN BANK (FHLB) STOCK: The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends received are reported as income.

Property, Plant and Equipment, Policy [Policy Text Block]

PREMISES AND EQUIPMENT: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 7 years.

Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block]

FORECLOSED ASSETS: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less estimated selling cost when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a direct write-down is recorded through non-interest expense. Operating costs after acquisition are expensed.

Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

LONG-LIVED ASSETS: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase and Resale Agreements Policy [Policy Text Block]

REPURCHASE AGREEMENTS: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. These balances are not deposits and are not covered by federal deposit insurance. Securities are pledged to cover these liabilities.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

STOCK COMPENSATION: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Income Tax, Policy [Policy Text Block]

INCOME TAXES: Income tax expense is the total of the current year income tax due or refundable and the change in certain deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets, liabilities and net operating loss carryforwards, computed using enacted tax rates. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is subject to examinations of federal taxing authorities for years after 2009. The Company did not have any unrecognized tax benefits at December 31, 2013 or 2012 and does not expect any significant unrecognized tax benefits to arise in the next 12 months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense, but did not have any amounts accrued for interest and penalties at either December 31, 2013 or December 31, 2012.

Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Standby letters of credit are considered guarantees and are recorded at fair value.

Earnings Per Share, Policy [Policy Text Block]

EARNINGS PER COMMON SHARE: Basic earnings per common share is net income (loss) divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. At year-end 2013, stock options for 6,000 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive. In 2012, 15,300 shares of common stock were not considered for the same reason.

Comprehensive Income, Policy [Policy Text Block]

COMPREHENSIVE INCOME (LOSS): Comprehensive income consists of net income (loss) and other comprehensive income (loss), net of income taxes. Other comprehensive income includes unrealized gains and losses on securities available for sale, which are also recognized as a separate component of shareholders’ equity.

Commitments and Contingencies, Policy [Policy Text Block]

LOSS CONTINGENCIES: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not currently believe there are such matters outstanding that will have a material effect on the consolidated financial statements.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

RESTRICTIONS ON CASH: The Bank was required to have $1,426,000 of cash on hand, or on deposit, with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year-end 2013 and $1,750,000 at year-end 2012.

Dividend Restrictions [Policy Text Block]

DIVIDEND RESTRICTIONS: Holders of the Company's common stock are entitled to receive dividends that the Board of Directors may declare from time to time. The Company may only pay dividends out of funds that are legally available for that purpose. The Company's ability to pay dividends to its shareholders depends primarily on the Bank’s ability to pay dividends to the Company. Dividend payments and extensions of credit to the Company from the Bank are subject to legal and regulatory limitations, generally based on capital levels and current and retained earnings.

On December 16, 2010, the Company entered into a Written Agreement with the FRB. The Written Agreement contained several provisions related to dividends and distributions. Essentially the Company shall not declare or pay any dividends without the prior written approval of the FRB, and the Company shall not accept dividends or any other form of payment from the Bank without the prior written approval of the FRB. Similarly the Bank is prohibited from paying dividends. The Bank entered into a Consent Order with the FDIC and DIFS, its primary banking regulators, which became effective on September 2, 2010. The Consent Order, among other things, explicitly prohibits the Bank from declaring or paying a dividend without the prior written consent of the regulators.

In addition, under the terms of the subordinated debentures, the Company is precluded from paying dividends on its common stock because the Company exercised its right to defer payments of interest on the subordinated debentures beginning in June of 2010. No dividends may be issued until the deferral ends and interest is brought current.

Fair Value of Financial Instruments, Policy [Policy Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS: Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in Note 18. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

ADOPTION OF NEW ACCOUNTING STANDARDS:

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which is intended to improve the reporting of reclassifications out of accumulated other comprehensive income.  The ASU requires an entity to report, either on the face of the income statement or in the notes to the financial statements, the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in the income statement.  This ASU was adopted by the Company prospectively in the first quarter of 2013.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors.  ASU 2014-04 clarifies when a creditor should be considered to have received physical possession of residential real estate property during a foreclosure.  ASU 2014-04 establishes a loan receivable should be derecognized and the real estate property recognized upon the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan.  The provisions of ASU 2014-04 are effective for annual periods beginning after December 15, 2014.  The adoption of this guidance should not have a material effect on the Corporation’s financial condition or results of operations.

Other issued but not yet effective accounting standards were reviewed and management has concluded that none apply or are material to the Company’s financial statements.

Segment Reporting, Policy [Policy Text Block]

OPERATING SEGMENTS: While Management monitors the revenue streams of the various products and services, the identifiable segments are not material and operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered to be aggregated in one reportable segment, banking.

Reclassification, Policy [Policy Text Block]

RECLASSIFICATION: Some items in the prior year financial statements may be reclassified to conform to the current presentation.

XML

LOANS (Details 4) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Accrued Loans Member [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	$ 63,916	$ 131,315
60-89 Days Past Due	114,087	130,108
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	178,003	261,423
Loans, Current	128,735,582	122,062,295
Total Recorded Investment	128,913,585	122,323,718
Accrued Loans Member [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	1,956
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	1,956
Loans, Current	47,146,126	39,465,435
Total Recorded Investment	47,146,126	39,467,391
Accrued Loans Member [Member] | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	97,605
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	97,605
Loans, Current	54,827,857	50,193,607
Total Recorded Investment	54,827,857	50,291,212
Accrued Loans Member [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	0
Loans, Current	2,071,737	3,479,043
Total Recorded Investment	2,071,737	3,479,043
Accrued Loans Member [Member] | Consumer Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	26,037
60-89 Days Past Due	101,022	44,866
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	101,022	70,903
Loans, Current	7,640,301	8,963,308
Total Recorded Investment	7,741,323	9,034,211
Accrued Loans Member [Member] | Consumer Other Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	1,583	3,707
60-89 Days Past Due	10,824	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	12,407	3,707
Loans, Current	1,500,086	2,015,334
Total Recorded Investment	1,512,493	2,019,041
Accrued Loans Member [Member] | Consumer Credit Card Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	2,010
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	2,010
Loans, Current	451,009	488,792
Total Recorded Investment	451,009	490,802
Accrued Loans Member [Member] | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	62,333	0
60-89 Days Past Due	2,241	85,242
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	64,574	85,242
Loans, Current	15,098,466	17,456,776
Total Recorded Investment	15,163,040	17,542,018
Non Accrued Loans Member [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	97,482	17,372
60-89 Days Past Due	25,360	322,451
Greater Than 90 Days Past Due	249,753	929,083
Total Past Due Loans	372,595	1,268,906
Loans, Current	2,609,415	2,646,751
Total Recorded Investment	2,982,010	3,915,657
Non Accrued Loans Member [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	8,958
60-89 Days Past Due	0	20,469
Greater Than 90 Days Past Due	0	320,592
Total Past Due Loans	0	350,019
Loans, Current	36,278	210,153
Total Recorded Investment	36,278	560,172
Non Accrued Loans Member [Member] | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	8,414
60-89 Days Past Due	0	280,399
Greater Than 90 Days Past Due	0	406,792
Total Past Due Loans	0	695,605
Loans, Current	2,375,592	2,248,488
Total Recorded Investment	2,375,592	2,944,093
Non Accrued Loans Member [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	0
Loans, Current	0	0
Total Recorded Investment	0	0
Non Accrued Loans Member [Member] | Consumer Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	21,583
Greater Than 90 Days Past Due	25,568	0
Total Past Due Loans	25,568	21,583
Loans, Current	0	79,628
Total Recorded Investment	25,568	101,211
Non Accrued Loans Member [Member] | Consumer Other Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	25,360	0
Greater Than 90 Days Past Due	0	6,050
Total Past Due Loans	25,360	6,050
Loans, Current	29,805	0
Total Recorded Investment	55,165	6,050
Non Accrued Loans Member [Member] | Consumer Credit Card Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due Loans	0	0
Loans, Current	0	0
Total Recorded Investment	0	0
Non Accrued Loans Member [Member] | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days Past Due	97,482	0
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	224,185	195,649
Total Past Due Loans	321,667	195,649
Loans, Current	167,740	108,482
Total Recorded Investment	$ 489,407	$ 304,131

XML

SECURITIES AVAILABLE FOR SALE (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 31,266,571	$ 40,858,692
Available-for-sale Securities, Gross Unrealized Gains	267,592	637,705
Available-for-sale Securities, Gross Unrealized Losses	(303,917)	(36,001)
Available-for-sale Securities	31,230,246	41,460,396
US Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	2,525,481	4,044,909
Available-for-sale Securities, Gross Unrealized Gains	16,551	49,623
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	2,542,032	4,094,532
US Government and federal agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	15,823,511	20,013,843
Available-for-sale Securities, Gross Unrealized Gains	90,497	250,523
Available-for-sale Securities, Gross Unrealized Losses	(46,602)	(4,623)
Available-for-sale Securities	15,867,406	20,259,743
Municipals [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	1,563,394	2,260,272
Available-for-sale Securities, Gross Unrealized Gains	27,747	73,469
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	1,591,141	2,333,741
Mortgage-backed and collateralized mortgage obligations- residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	11,354,185	14,539,668
Available-for-sale Securities, Gross Unrealized Gains	132,797	264,090
Available-for-sale Securities, Gross Unrealized Losses	(257,315)	(31,378)
Available-for-sale Securities	$ 11,229,667	$ 14,772,380

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net income	$ 5,539,994	$ 267,838
Other comprehensive income (loss):
Unrealized holding losses on available for sale securities	(638,029)	(65,030)
Less reclassification adjustments for unrealized gains recognized in income	0	(21,522)
Net unrealized loss	(638,029)	(86,552)
Tax effect	0	0
Total other comprehensive loss	(638,029)	(86,552)
Comprehensive income	$ 4,901,965	$ 181,286

XML

LOANS

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3 - LOANS

Outstanding loan balances by portfolio segment and class at December 31, 2013 and 2012 were as follows:

	2013		2012
Commercial	$	47,081,426	$	39,915,144
Commercial Real Estate:
General		57,101,939		53,096,828
Construction		2,065,308		3,464,366
Consumer:
Lines of credit		7,737,439		9,105,387
Other		1,560,384		2,015,234
Credit card		451,009		490,802
Residential		15,611,082		17,798,131
Net deferred loan fees		(54,343)		(55,642)
		131,554,244		125,830,250
Less:  Allowance for loan losses		(2,809,642)		(3,382,977)
Loans, net	$	128,744,602	$	122,447,273

The following tables present the activity in the allowance for loan losses for the years ending December 31, 2013 and 2012 by portfolio segment:

			Commercial
December 31, 2013	Commercial		Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Beginning balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	3,382,977
Charge-offs		(66,048)		(25,025)		(316,995)		(264,902)		(672,970)
Recoveries		80,507		0		19,128		0		99,635
Provision for loan losses		(257,609)		(423,274)		391,232		289,651		0
Ending balance	$	339,048	$	1,818,003	$	424,824	$	227,767	$	2,809,642

			Commercial
December 31, 2012	Commercial		Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Beginning balance	$	1,309,632	$	3,386,433	$	410,001	$	193,388	$	5,299,454
Charge-offs		(1,042,700)		(954,701)		(132,394)		(11,392)		(2,141,187)
Recoveries		86,663		37,164		25,848		0		149,675
Provision for loan losses		228,603		(202,594)		28,004		21,022		75,035
Ending balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	3,382,977

The remaining loan footnote tables on the following pages present loans at the recorded investment which includes unpaid principal, accrued interest receivable and net deferred, unearned fees. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2013 and 2012: 

			Commercial
2013	Commercial		Real Estate		Consumer		Residential		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment1	$	28,705	$	1,302,677	$	191,887	$	87,635	$	0	$	1,610,904
Collectively evaluated for impairment		310,343		515,326		232,937		140,132		0		1,198,738
Unallocated		0		0		0		0		104,810		104,810
Total ending allowance balance	$	339,048	$	1,818,003	$	424,824	$	227,767	$	104,810	$	2,809,642
Loans:
Individually evaluated for impairment1	$	1,165,730	$	6,784,821	$	518,428	$	1,127,955	$	0	$	9,596,934
Collectively evaluated for impairment		46,016,674		52,490,365		9,267,130		14,524,492		0		122,298,661
Total ending loans balance	$	47,182,404	$	59,275,186	$	9,785,558	$	15,652,447	$	0	$	131,895,595

			Commercial
2012	Commercial		Real Estate		Consumer		Residential		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment1	$	104,727	$	1,489,569	$	89,050	$	127,030	$	0	$	1,810,376
Collectively evaluated for impairment		477,471		776,733		242,409		75,988		0		1,572,601
Unallocated		0		0		0		0		0		0
Total ending allowance balance	$	582,198	$	2,266,302	$	331,459	$	203,018	$	0	$	3,382,977
Loans:
Individually evaluated for impairment1	$	3,288,294	$	7,322,850	$	321,820	$	782,732	$	0	$	11,715,696
Collectively evaluated for impairment		36,739,269		49,391,498		11,329,495		17,063,417		0		114,523,679
Total ending loans balance	$	40,027,563	$	56,714,348	$	11,651,315	$	17,846,149	$	0	$	126,239,375

¹ Loans that are specifically identified.

The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

			Unpaid				Average		Interest		Cash Basis
	Recorded		Principal		Related		Recorded		Income		Interest
2013	Investment		Balance		Allowance		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	1,049,046	$	1,059,514	$	0	$	1,326,391	$	36,446	$	34,382
Commercial Real Estate:
General		714,377		744,958		0		2,244,485		2,999		2,999
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		107,750		255,128		0		55,715		642		642
Other		47,106		109,603		0		28,021		0		0
Credit card		0		0		0		0		0		0
Residential		343,859		554,300		0		234,300		0		0
Subtotal	$	2,262,138	$	2,723,503	$	0	$	3,888,912	$	40,087	$	38,023
With an allowance recorded:
Commercial	$	116,684	$	116,194	$	28,705	$	273,051	$	15,350	$	14,995
Commercial Real Estate:
General		6,070,444		6,069,393		1,302,677		4,634,901		226,872		226,872
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		296,004		294,323		155,095		191,689		10,289		9,097
Other		67,568		67,406		36,792		89,464		1,877		1,877
Credit card		0		0		0		224		0		0
Residential		784,096		791,471		87,635		526,512		17,430		17,417
Subtotal	$	7,334,796	$	7,338,787	$	1,610,904	$	5,715,841	$	271,818	$	270,258
Total	$	9,596,934	$	10,062,290	$	1,610,904	$	9,604,753	$	311,905	$	308,281

			Unpaid				Average		Interest		Cash Basis
	Recorded		Principal		Related		Recorded		Income		Interest
2012	Investment		Balance		Allowance		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	2,147,075	$	2,295,401	$	0	$	2,413,625	$	66,634	$	56,123
Commercial Real Estate:
General		2,662,984		2,739,027		0		2,783,388		66,501		64,093
Construction		0		0		0		167,274		0		0
Consumer:
Lines of credit		55,659		55,524		0		46,916		9,177		5,228
Other		26,221		26,221		0		17,290		106		0
Credit card		0		0		0		0		0		0
Residential		208,178		240,491		0		285,420		345		340
Subtotal	$	5,100,117	$	5,356,664	$	0	$	5,713,913	$	142,763	$	125,784
With an allowance recorded:
Commercial	$	1,141,219	$	1,139,885	$	104,727	$	1,510,788	$	65,446	$	38,083
Commercial Real Estate:
General		4,659,866		4,675,981		1,489,569		5,228,456		142,583		112,299
Construction		0		0		0		21,201		0		0
Consumer:
Lines of credit		135,111		134,976		40,180		176,507		3,897		3,431
Other		104,829		104,664		48,870		114,664		2,048		1,923
Credit card		0		0		0		988		0		0
Residential		574,554		594,307		127,030		486,301		12,907		12,541
Subtotal	$	6,615,579	$	6,649,813	$	1,810,376	$	7,538,905	$	226,881	$	168,277
Total	$	11,715,696	$	12,006,477	$	1,810,376	$	13,252,818	$	369,644	$	294,061

Non-performing loans, from a past due and accrual status, and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. However, non-accrual loans and loans past due 90 days still on accrual are all individually classified impaired loans.

The following tables present the aging of the recorded investment in past due and non accrual loans by class of loans as of December 31, 2013:

					Greater Than 90		Total Accruing				Total Recorded
	30-59 Days Past		60-89 Days Past		Days Past		Past Due		Current		Investment of
Accruing Loans	Due		Due		Due		Loans		Accruing Loans		Accruing Loans
Commercial	$	0	$	0	$	0	$	0	$	47,146,126	$	47,146,126
Commercial Real Estate:
General		0		0		0		0		54,827,857		54,827,857
Construction		0		0		0		0		2,071,737		2,071,737
Consumer:
Lines of credit		0		101,022		0		101,022		7,640,301		7,741,323
Other		1,583		10,824		0		12,407		1,500,086		1,512,493
Credit card		0		0		0		0		451,009		451,009
Residential		62,333		2,241		0		64,574		15,098,466		15,163,040
Total	$	63,916	$	114,087	$	0	$	178,003	$	128,735,582	$	128,913,585

					Greater Than 90		Total		Current		Total Non Accrual
	30-59 Days Past		60-89 Days Past		Days Past		Non Accrual		Non Accrual		Recorded
Non Accrual Loans	Due		Due		Due		Past Due Loans		Loans		Investment
Commercial	$	0	$	0	$	0	$	0	$	36,278	$	36,278
Commercial Real Estate:
General		0		0		0		0		2,375,592		2,375,592
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		0		0		25,568		25,568		0		25,568
Other		0		25,360		0		25,360		29,805		55,165
Credit card		0		0		0		0		0		0
Residential		97,482		0		224,185		321,667		167,740		489,407
Total	$	97,482	$	25,360	$	249,753	$	372,595	$	2,609,415	$	2,982,010

The following tables present the aging of the recorded investment in past due and non accrual loans by class of loans as of December 31, 2012:

					Greater Than 90		Total Accruing				Total Recorded
	30-59 Days Past		60-89 Days Past		Days Past		Past Due		Current		Investment of
Accruing Loans	Due		Due		Due		Loans		Accruing Loans		Accruing Loans
Commercial	$	1,956	$	0	$	0	$	1,956	$	39,465,435	$	39,467,391
Commercial Real Estate:
General		97,605		0		0		97,605		50,193,607		50,291,212
Construction		0		0		0		0		3,479,043		3,479,043
Consumer:
Lines of credit		26,037		44,866		0		70,903		8,963,308		9,034,211
Other		3,707		0		0		3,707		2,015,334		2,019,041
Credit card		2,010		0		0		2,010		488,792		490,802
Residential		0		85,242		0		85,242		17,456,776		17,542,018
Total	$	131,315	$	130,108	$	0	$	261,423	$	122,062,295	$	122,323,718

					Greater Than 90		Total		Current		Total Non Accrual
	30-59 Days Past		60-89 Days Past		Days Past		Non Accrual		Non Accrual		Recorded
Non Accrual Loans	Due		Due		Due		Past Due Loans		Loans		Investment
Commercial	$	8,958	$	20,469	$	320,592	$	350,019	$	210,153	$	560,172
Commercial Real Estate:
General		8,414		280,399		406,792		695,605		2,248,488		2,944,093
Construction		0		0		0		0		0		0
Consumer:
Lines of credit		0		21,583		0		21,583		79,628		101,211
Other		0		0		6,050		6,050		0		6,050
Credit card		0		0		0		0		0		0
Residential		0		0		195,649		195,649		108,482		304,131
Total	$	17,372	$	322,451	$	929,083	$	1,268,906	$	2,646,751	$	3,915,657

Troubled Debt Restructurings:

The Company has allocated $1,539,865 of specific reserves on $8,452,163 of unpaid principal balance of loans to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2013 and $1,699,851 of specific reserves on $10,441,218 of unpaid principal balance of loans as of December 31, 2012. At December 31, 2013, the Company had an additional $180,557 in performing loans outstanding to one of those customers. As of December 31, 2012, there was $184,364 committed to one customer. 

During 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a stated rate of interest lower than the current market rate for new debt with similar risk; interest only payments on an amortizing note; a reduced payment amount which does not fully cover the interest; financing concessions; or a permanent reduction of the recorded investment in the loan.

In 2013, three modifications involved a stated interest rate below the current market rate for a period of 7 years, while another modification for 2.5 years involved interest-only payments on an amortizing note. One modification involved a reduced payment amount for a period of 28 years. Lastly, one note involved a permanent reduction of the recorded investment in the loan in a modification commonly referred to as an A-B note structure. In these types of modifications, a detailed analysis of the borrower’s financial condition is performed and the total debt is separated into two notes. The first note (“note A”) is underwritten to be supported by current cash flows and collateral and the second note (“note B”) is made for the remaining unsecured debt. Note B is immediately charged-off after closing with collection occurring only after note A is completely repaid.

In 2012, modifications involving a stated interest rate of the loan below the current market rate were for periods ranging from 11 months to 5 years. Modifications involving a reduced payment amount were for periods ranging from 7 months to 4 years. One modification involved a financing concession on an amortizing note for 12 months. Two modifications, for the same customer, involving interest only payments on amortizing notes were for a 12 month period. Lastly, two modifications involved a permanent reduction of the recorded investment in the loan.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed utilizing the Company’s internal underwriting policy.

The following table presents loans by class modified as troubled debt restructurings that occurred during the 12 month period ended December 31, 2013:

			Pre-Modification		Post-Modification
			Outstanding Recorded		Outstanding Recorded
2013	Number of Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial		1	$	143,136	$	133,425
Commercial Real Estate:
General		0		0		0
Consumer:
Lines of credit		4		205,208		205,208
Residential		1		164,114		164,114
Total		6	$	512,458	$	502,747

In the 12 month period ended December 31, 2013, troubled debt restructurings incurred charge-offs of $10,000 of which all was related to the A-B note modification. As of December 31, 2013, an additional $80,000 of specific reserves were established on these troubled debt restructurings.

 

The following table presents loans by class modified as troubled debt restructurings that occurred during the 12 month period ended December 31, 2012:

			Pre-Modification		Post-Modification
			Outstanding Recorded		Outstanding Recorded
2012	Number of Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial		2	$	101,880	$	101,880
Commercial Real Estate:
General		5		3,446,269		2,808,146
Consumer:
Lines of credit		3		142,894		142,894
Residential		2		144,312		144,312
Total		12	$	3,835,355	$	3,197,232

In the 12 month period ended December 31, 2012, troubled debt restructurings incurred charge-offs of $654,000 of which $638,000 was related to the A-B note modification. As of December 31, 2012, an additional $72,000 of specific reserves were established on these troubled debt restructurings.

 

Generally, a modified loan is considered to be in payment default when the borrower is not performing according to the renegotiated terms.

For the 12 month period ended December 31, 2013, there was one troubled debt restructuring that experienced a payment default within 12 months following the modification. Below is a table which presents those loans by class:

			Recorded Investment
2013	Number of Loans		at time of default
Troubled Debt Restructurings
That Subsequently Defaulted:
Commercial		1	$	155,258
Commercial Real Estate:
General		0		0
Total		1	$	155,258

For the 12 month period ended December 31, 2012, there were no troubled debt restructurings that experienced a payment default within 12 months following the modification.

			Recorded Investment
2012	Number of Loans		at time of default
Troubled Debt Restructurings
That Subsequently Defaulted:
Commercial		0	$	0
Commercial Real Estate:
General		0		0
Total		0	$	0

Credit Quality Indicators:

The Bank utilizes a numeric grading system for commercial and commercial real estate loans to indicate the strength of the credit. At origination, grades are assigned to each commercial and commercial real estate loan by assessing information about the specific borrower’s situation including cash flow analysis and the estimated collateral values. The loan grade is reassessed at each renewal or amendment but any credit may receive a review based on lender identification of changes in the situation or behavior of the borrower. All commercial and commercial real estate loans exceeding $500,000 are formally reviewed at least annually. Once a loan is graded a 5M or greater number, and is over $100,000, the loan grade will be reanalyzed once a quarter to assess the borrowers compliance with the Bank’s documented action plan. In addition to these methods for assigning loan grades, changes may occur through the external loan review or regulatory exam process. The loan grades are as follows:

1. Exceptional. Loans with an exceptional credit rating.

2. Quality. Loans with excellent sources of repayment that conform, in all respects, to Bank policy and regulatory requirements. These are loans for which little repayment risk has been identified.

3. Above Average. Loans with above average sources of repayment and minimal identified credit or collateral exceptions and minimal repayment risk.

4. Average. Loans with average sources of repayment that materially conform to Bank policy and regulatory requirements. Repayment risk is considered average.

5. Acceptable. Loans with acceptable sources of repayment and risk.

5M. Monitor. Loans considered to be below average quality. The loans are often fundamentally sound but require more frequent management review because of an adverse financial event. Risk of non payment is elevated.

6. Special Mention. Loans that have potential weaknesses and deserve close attention. If uncorrected, further deterioration is likely. Risk of non payment is above average.

7. Substandard. Loans that are inadequately protected by the borrower’s capacity to pay or the collateral pledged. Risk of non payment is high.

8. Doubtful. Loans in this grade have identified weaknesses that make full repayment highly questionable and improbable.

When a loan is downgraded to a nine, it is considered a loss and is charged-off.

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

					Commercial Real Estate				Commercial Real Estate
	Commercial				General				Construction
	2013		2012		2013		2012		2013		2012
1	$	0	$	0	$	0	$	0	$	0	$	0
2		94,676		298,200		0		0		0		0
3		8,623,409		2,004,476		5,524,989		4,141,391		0		0
4		13,898,810		14,017,221		18,675,411		12,911,811		441,114		384,848
5		17,539,364		16,373,423		20,604,611		22,177,734		233,302		1,695,990
5M		4,255,639		3,318,016		5,114,931		3,675,131		1,397,321		1,398,205
6		1,699,009		2,180,119		4,908,058		7,365,970		0		0
7		1,052,903		1,369,803		229,576		287,682		0		0
8		18,594		466,305		2,145,873		2,675,586		0		0
Total	$	47,182,404	$	40,027,563	$	57,203,449	$	53,235,305	$	2,071,737	$	3,479,043

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented and by payment activity. The following tables present the recorded investment in residential and consumer loans based on payment activity as of December 31, 2013 and 2012:

	Residential
	2013		2012
Performing	$	14,524,492	$	17,063,417
Impaired		1,127,955		782,732
Total	$	15,652,447	$	17,846,149

	Consumer – Lines of credit				Consumer – Other				Consumer – Credit card
	2013		2012		2013		2012		2013		2012
Performing	$	7,363,137	$	8,944,652	$	1,452,984	$	1,894,041	$	451,009	$	490,802
Impaired		403,754		190,770		114,674		131,050		0		0
Total	$	7,766,891	$	9,135,422	$	1,567,658	$	2,025,091	$	451,009	$	490,802

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DEPOSITS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Time Deposits, $100,000 or More	$ 100,000
Time Deposits, Less than $100,000	$ 9,995,133	$ 10,002,735

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FAIR VALUE MEASUREMENTS (Details 3) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financial assets (Carrying Amount)
Cash and cash equivalents	$ 17,132,741	$ 20,297,115	$ 8,919,568
Loans held for sale	240,000	6,041,000
Loans, net (including impaired)	128,744,602	122,447,273
FHLB stock	450,800	450,800
Accrued interest receivable	466,538	592,043
Financial liabilities (Carrying Amount)
Deposits	171,939,865	184,176,493
Federal funds purchased and repurchase agreements	8,428,046	10,190,059
Subordinated debentures	4,500,000	4,500,000
Notes payable	1,280,000	5,000,000
Accrued interest payable	506,000	1,156,000
Financial assets (Fair Value Amount)
Cash and cash equivalents	17,133,000	20,297,000
Loans held for sale	246,000	6,183,000
Loans, net (including impaired)	122,235,000	116,004,000
Accrued interest receivable	467,000	592,000
Financial liabilities (Fair Value Amount)
Deposits	164,381,000	183,144,000
Federal funds purchased and repurchase agreements	8,428,000	10,190,000
Subordinated debentures	1,125,000	1,125,000
Notes payable	1,280,000	500,000
Accrued interest payable	173,000	149,000
Fair Value, Inputs, Level 1 [Member]
Financial assets (Fair Value Amount)
Cash and cash equivalents	17,133,000	20,297,000
Loans held for sale	0	0
Loans, net (including impaired)	0	0
Accrued interest receivable	8,000	12,000
Financial liabilities (Fair Value Amount)
Deposits	79,596,000	88,959,000
Federal funds purchased and repurchase agreements	0	0
Subordinated debentures	0	0
Notes payable	0	0
Accrued interest payable	4,000	4,000
Fair Value, Inputs, Level 2 [Member]
Financial assets (Fair Value Amount)
Cash and cash equivalents	0	0
Loans held for sale	246,000	6,183,000
Loans, net (including impaired)	0	0
Accrued interest receivable	117,000	163,000
Financial liabilities (Fair Value Amount)
Deposits	84,785,000	94,185,000
Federal funds purchased and repurchase agreements	8,428,000	10,190,000
Subordinated debentures	0	0
Notes payable	0	0
Accrued interest payable	32,000	64,000
Fair Value, Inputs, Level 3 [Member]
Financial assets (Fair Value Amount)
Cash and cash equivalents	0	0
Loans held for sale	0	0
Loans, net (including impaired)	122,235,000	116,004,000
Accrued interest receivable	342,000	417,000
Financial liabilities (Fair Value Amount)
Deposits	0	0
Federal funds purchased and repurchase agreements	0	0
Subordinated debentures	1,125,000	1,125,000
Notes payable	1,280,000	500,000
Accrued interest payable	$ 137,000	$ 81,000

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RELATED PARTY TRANSACTIONS (Details) (USD $)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012
Related Party Transaction [Line Items]
Beginning balance	$ 2,456,594		$ 3,818,259
New loans and line advances	92,419		202,166
Effect of changes in related parties	(99,000)	[1]	0	[1]
Repayments	0		(1,563,831)
Ending balance	$ 2,450,013		$ 2,456,594

[1] The effect of a director resigning from the board and is no longer considered a related party.

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SECURITIES AVAILABLE FOR SALE (Tables)

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities [Table Text Block]

The following tables represent the securities held in the Company’s portfolio at December 31, 2013 and 2012:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
2013
US Treasury	$	2,525,481	$	16,551	$	0	$	2,542,032
US Government and federal agency		15,823,511		90,497		(46,602)		15,867,406
Municipals		1,563,394		27,747		0		1,591,141
Mortgage-backed and collateralized mortgage obligations– residential		11,354,185		132,797		(257,315)		11,229,667
	$	31,266,571	$	267,592	$	(303,917)	$	31,230,246
2012
US Treasury	$	4,044,909	$	49,623	$	0	$	4,094,532
US Government and federal agency		20,013,843		250,523		(4,623)		20,259,743
Municipals		2,260,272		73,469		0		2,333,741
Mortgage-backed and collateralized mortgage obligations– residential		14,539,668		264,090		(31,378)		14,772,380
	$	40,858,692	$	637,705	$	(36,001)	$	41,460,396

Investments Classified by Contractual Maturity Date [Table Text Block]

Below is the schedule of contractual maturities for securities held at December 31, 2013:

	Amortized		Fair
2013	Cost		Value
Due in one year or less	$	4,020,681	$	4,038,324
Due from one to five years		15,540,166		15,601,541
Due from five to ten years		351,539		360,714
Due in more than ten years		0		0
Mortgage-backed and collateralized mortgage obligations – residential		11,354,185		11,229,667
	$	31,266,571	$	31,230,246

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

Below is the table of securities with unrealized losses, aggregated by investment category and length of time such securities were in an unrealized loss position at December 31, 2013 and 2012:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
2013	Value		Losses		Value		Losses		Value		Losses
US Government and federal agency	$	2,439,145	$	(38,342)	$	1,031,280	$	(8,260)	$	3,470,425	$	(46,602)
Mortgage-backed and collateralized mortgage obligations - residential		5,604,925		(191,440)		1,473,265		(65,875)		7,078,190		(257,315)
	$	8,044,070	$	(229,782)	$	2,504,545	$	(74,135)	$	10,548,615	$	(303,917)

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
2012	Value		Losses		Value		Losses		Value		Losses
US Government and federal agency	$	3,050,187	$	(4,623)	$	0	$	0	$	3,050,187	$	(4,623)
Mortgage-backed and collateralized mortgage obligations - residential		3,882,818		(21,580)		269,692		(9,798)		4,152,510		(31,378)
	$	6,933,005	$	(26,203)	$	269,692	$	(9,798)	$	7,202,697	$	(36,001)

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CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012	Aug. 17, 2011
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Percentage Of Net Risk Weighted Assets	1.25%
Disallowed Tier Two Risk Based Capital	$ 1,113,035		$ 1,654,663
Minimum Net Capital Required	6,051,000	25,000		25,000
Tier Two Risk Based Capital	$ 1,696,607		$ 1,728,314
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	8.50%		8.50%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	11.00%
Description Of Regulatory Minimum Capital Assets	the Company is a one-bank holding company with consolidated assets less than $500 million, regulatory minimum capital ratios are applied only to the Bank
Capital to Risk Weighted Assets	8.48%		7.88%

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PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet [Table Text Block]

Following are condensed parent company only financial statements:

CONDENSED BALANCE SHEETS

December 31,

	2013		2012
ASSETS
Cash and cash equivalents	$	609,536	$	7,746
Investment in subsidiaries		9,408,524		9,344,766
Other assets		3,110		1,375
Total assets	$	10,021,170	$	9,353,887
LIABILITIES AND EQUITY
Accrued expenses and other liabilities	$	578,301	$	1,092,983
Notes payable		1,280,000		5,000,000
Subordinated debentures		4,500,000		4,500,000
Shareholders’ equity (deficit)		3,662,869		(1,239,096)
Total liabilities and shareholders’ equity	$	10,021,170	$	9,353,887

Condensed Income Statement [Table Text Block]

CONDENSED STATEMENTS OF INCOME

Years Ended December 31,

	2013		2012
Other income	$	227	$	83
Gain on the extinguishment of debt		5,263,653		0
Interest expense		(199,767)		(429,959)
Other expense		(92,341)		(58,148)
Income (loss) before income tax benefit and undistributed subsidiary income		4,971,772		(488,024)
Equity in undistributed subsidiary income		673,222		755,862
Federal income tax expense		105,000		0
Net income		5,539,994		267,838
Other comprehensive loss		(638,029)		(86,552)
Comprehensive income	$	4,901,965	$	181,286

Condensed Cash Flow Statement [Table Text Block]

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31,

	2013		2012
Cash flows from operating activities
Net income	$	5,539,994	$	267,838
Equity in undistributed subsidiary income		(673,222)		(755,862)
Net realized gain on the extinguishment of debt		(5,262,653)		0
Net change in:
Other assets		(1,735)		20,578
Other liabilities		247,971		430,029
Net cash used by operating activities		(149,645)		(37,417)
Cash flows from (for) investing activities
Capital investment (into) redeemed from subsidiaries		(28,565)		11,230
Net cash from (used by) investing activities		(28,565)		11,230
Cash flows from financing activities
Draws on notes payable and line of credit		1,280,000		0
Repayment of note payable		(500,000)		0
Net cash from financing activities		780,000		0
Net change in cash and cash equivalents		601,790		(26,187)
Beginning cash and cash equivalents		7,746		33,933
Ending cash and cash equivalents	$	609,536	$	7,746

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 13 – RELATED PARTY TRANSACTIONS

Loans and commitments to principal officers, directors and their affiliates in 2013 and 2012 were as follows:

	2013		2012
Beginning balance	$	2,456,594	$	3,818,259
New loans and line advances		92,419		202,166
*Effect of changes in related parties		(99,000)		0
Repayments		0		(1,563,831)
Ending balance	$	2,450,013	$	2,456,594

Deposits from principal officers, directors and their affiliates were $4,583,666 at year-end 2013 and $6,885,332 at year-end 2012.

 

*The effect of a director resigning from the board and is no longer considered a related party.