FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets measured at fair value on a recurring basis as of June 30, 2014 were:

(Dollars in thousands)			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Recurring:
US government agencies	$	12,291	$	—	$	12,291	$	—
Government sponsored MBS
Residential		56,201		—		56,201		—
Municipal securities
North Carolina		1,003		—		1,003		—
Mortgage servicing rights		24		—		—		24
Total	$	69,519	$	—	$	69,495	$	24

Assets measured at fair value on a recurring basis as of December 31, 2013 were:

(Dollars in thousands)			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Recurring:
US government agencies	$	6,766	$	—	$	6,766	$	—
Government sponsored MBS
Residential		57,698		—		57,698		—
Municipal securities
North Carolina		1,455		—		1,455		—
Mortgage Servicing Rights	$	25		—		—		25
Total	$	65,944	$	—	$	65,919	$	25

Schedule of fair value of Level 3 assets

The table below displays changes in all recurring Level 3 Assets from December 31, 2013 to June 30, 2014 and December 31, 2012 to December 31, 2013.

(Dollars in thousands)	Mortgage Servicing Rights
Beginning balance (December 31, 2013)	$	25
Amortization		1
Ending Balance (June 30, 2014)	$	24

(Dollars in thousands)	Mortgage Servicing Rights
Beginning balance (December 31, 2012)	$	36
Amortization		11
Ending Balance (December 31, 2013)	$	25

Schedule of assets and liabilities measured at fair value on a non recurring basis

Assets measured at fair value on a nonrecurring basis as of June 30, 2014 and December 31, 2013 were:

(Dollars in thousands)			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Nonrecurring:
OREO	$	2,691	$	—	$	—	$	2,691
Impaired loans:
Commercial real estate		8,987		—		—		8,987
Faith-based non-profit		15,946		—		—		15,946
Residential real estate		3,098		—		—		3,098
Consumer		8		—		—		8
Total	$	30,730	$	—	$	—	$	30,730

(Dollars in thousands)			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Description	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Nonrecurring:
OREO	$	3,032	$	—	$	—	$	3,032
Repossessed collateral		590		—		—		590
Impaired loans:
Commercial real estate		9,050		—		—		9,050
Faith-based non-profit		16,772		—		—		16,772
Residential real estate		3,875		—		—		3,875
Consumer		11		—		—		11
Total	$	33,330	$	—	$	—	$	33,330

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in thousands)				Significant	Significant
			Valuation	Unobservable	Unobservable
Description	June 30, 2014		Technique	Inputs	Input Value
Nonrecurring:
OREO	$	2,691	discounted appraisals	collateral discounts		6-20%
Impaired loans		28,039	discounted appraisals	collateral discounts		6-20%
Total	$	30,730

(Dollars in thousands)					Significant		Significant
			Valuation		Unobservable		Unobservable
Description	December 31, 2013		Technique		Inputs		Input Value
Nonrecurring:
OREO	$	3,032		discounted appraisals		collateral discounts		6-20%
Repossessed collateral		590		discounted appraisals		collateral discounts		20-50%
Impaired loans		29,708		discounted appraisals		collateral discounts		6-20%
Total	$	33,330

Schedule of carrying amount and fair value of financial instruments

As of June 30, 2014 and December 31, 2013, the carrying amounts and associated estimated fair value of financial assets and liabilities of the Company are as follows:

	June 30, 2014
(Dollars in thousands)	Carrying	Estimated
	Amount	Fair Value	Level 1	Level 2	Level 3
Assets:
Cash and cash equivalents	$                -	$                -	$                  -	$                  -	$                  -
Investment securities available for sale	-	-	-	-	-
Loans, net of allowances for loan losses	-	-			-
Accrued interest receivable	-	-	-	-
Liabilities:
Non-maturity deposits	$                -	$                -	-	-	-
Maturity deposits	-	-	-	-	-
Other borrowings	-	-	-	-	-
Accrued interest payable	-	-	-	-	-

	December 31, 2013
(Dollars in thousands)	Carrying		Estimated
	Amount		Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	28,583	$	28,583	$	28,583	$	—	$	—
Investment securities available for sale		65,919		65,919		—		65,919		—
Loans, net of allowances for loan losses		185,982		189,387						189,387
Accrued interest receivable		912		912		912		—
Liabilities:
Non-maturity deposits	$	116,115	$	116,115		116,115		—		—
Maturity deposits		143,812		143,314		—		143,314		—
Other borrowings		847		791		—		—		791
Accrued interest payable		75		75		75		—		—