INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities

The amortized cost, gross unrealized gains and losses and fair values of investment securities at June 30, 2014 and December 31, 2013 were:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Unaudited)
June 30, 2014
US government agencies	$	12,370	$	17	$	(96	)	$	12,291
Government sponsored MBS
Residential		56,223		256		(278	)		56,201
Municipal securities
North Carolina		1,015		12		(24	)		1,003
Total	$	69,608	$	285	$	(398	)	$	69,495
December 31, 2013
US government agencies	$	7,000		—	$	(234	)	$	6,766
Government sponsored MBS
Residential		58,086		118		(506	)		57,698
Municipals
North Carolina		1,485		21		(51	)		1,455
Total	$	66,571	$	139	$	(791	)	$	65,919

Schedule of Investment Securities maturities

The amortized cost and estimated market values of securities as of June 30, 2014 and December 31, 2013 by contractual maturities are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. MBS, which are not due at a single maturity date, are grouped based upon the final payment date. MBS may mature prior to the applicable final payment date because of principal prepayments.

	As of June 30, 2014
	Fair Value		Amortized Cost
Due within one year	$	1,989	$	2,000
Due after one year through five years		7,369		7,370
Due after five years through ten years		2,933		3,000
Total US government agencies	$	12,291	$	12,370
Residential
Due within one year	$	12,215	$	12,258
Due after one year through five years		24,504		24,537
Due after five years through ten years		12,490		12,462
Due after ten years		6,992		6,966
Total government sponsored MBS	$	56,201	$	56,223
North Carolina
Due within one year	$	166	$	162
Due after one year through five years		269		260
Due after five years through ten years		568		593
Total North Carolina municipal bonds	$	1,003	$	1,015

	As of December 31, 2013
	Fair Value		Amortized Cost
Due within one year	$	4,934	$	5,000
Due after one year through five years		1,832		2,000
Total US government agencies	$	6,766	$	7,000
Residential
Due within one year	$	12,090	$	12,156
Due after one year through five years		25,152		25,314
Due after five years through ten years		12,450		12,560
Due after ten years		8,006		8,056
Total government sponsored MBS	$	57,698	$	58,086
North Carolina
Due within one year	$	472	$	465
Due after one year through five years		437		423
Due after five years through ten years		546		597
Total North Carolina municipal bonds	$	1,455	$	1,485

Schedule of Securities in an unrealized loss position

As of June 30, 2014 and December 31, 2013, the fair value of securities with gross unrealized losses by length of time that the individual securities have been in an unrealized loss position is as follows:

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater					Total
(Unaudited)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2014
US government agencies	$	5,843	$	(27	)	$	1,931	$	(69	)	$	7,774	$	(97	)
Government sponsored MBS
Residential		12,880		(66	)		15,198		(212	)		28,078		(278	)
Municipals
North Carolina		568		(24	)		—		—			568		(24	)
Total	$	19,291	$	(117	)	$	17,129	$	(281	)	$	36,420	$	(398	)

(Dollars in thousands)	Less Than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2013
US government agencies	$	6,766	$	(234	)	$	—	$	—	$	6,766	$	(234	)
Government sponsored MBS
Residential		46,373		(506	)		20		—		46,393		(506	)
Municipals
North Carolina		546		(51	)		—		—		546		(51	)
Total	$	53,685	$	(791	)	$	20	$	—	$	53,705	$	(791	)