FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2014

FAIR VALUE MEASUREMENT [Abstract]

Assets and liabilities measured at fair value on a recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2014.

	(in thousands)
March 31, 2014	Total		Level 1		Level 2		Level 3
Securities of U.S. government
agencies and corporations	$	49,018	$	—	$	49,018	$	—
Obligations of states and
political subdivisions		27,879		—		27,879		—
Collateralized mortgage obligations		4,936		—		4,936		—
Mortgage-backed securities		84,791		—		84,791		—
Total investments at fair value	$	166,624	$	—	$	166,624	$	—

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2013.

	(in thousands)
December 31, 2013	Total		Level 1		Level 2		Level 3
Securities of U.S. government
agencies and corporations	$	52,685	$	—	$	52,685	$	—
Obligations of states and
political subdivisions		27,387		—		27,387		—
Collateralized mortgage obligations		5,405		—		5,405
Mortgage-backed securities		87,792		—		87,792		—
Total investments at fair value	$	173,269	$	—	$	173,269	$	—

Assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of March 31, 2014.

	(in thousands)
March 31, 2014	Total		Level 1		Level 2		Level 3
Impaired loans	$	424	$	—	$	—	$	424
Total assets at fair value	$	424	$	—	$	—	$	424

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2013.

	(in thousands)
December 31, 2013	Total		Level 1		Level 2		Level 3
Impaired loans	$	1,095	$	—	$	—	$	1,095
Loan servicing rights		1,968		—		—		1,968
Total assets at fair value	$	3,063	$	—	$	—	$	3,063

Methods and assumptions used in measuring fair value of assets and liabilities

Key methods and assumptions used in measuring the fair value of impaired loans and loan servicing rights as of March 31, 2014 and December 31, 2013 were as follows:

	Method	Assumption Inputs
Impaired loans	Collateral, market, income,  enterprise, liquidation and discounted Cash Flows	External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%.
Loan servicing rights	Discounted cash flows	Present value of expected future cash flows is estimated using a discount rate factor of  10.05% and constant prepayment rate of 9.09% as of December 31, 2013.