FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015:

	(in thousands)
March 31, 2015	Total		Level 1		Level 2		Level 3
Securities of U.S. government
agencies and corporations	$	33,777	$	—	$	33,777	$	—
Obligations of states and
political subdivisions		20,331		—		20,331		—
Collateralized mortgage obligations		13,909		—		13,909		—
Mortgage-backed securities		95,570		—		95,570		—
Total investments at fair value	$	163,587	$	—	$	163,587	$	—

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

	(in thousands)
December 31, 2014	Total		Level 1		Level 2		Level 3
Securities of U.S. government
agencies and corporations	$	28,429	$	—	$	28,429	$	—
Obligations of states and
political subdivisions		20,763		—		20,763		—
Collateralized mortgage obligations		12,553		—		12,553
Mortgage-backed securities		89,481		—		89,481		—
Total investments at fair value	$	151,226	$	—	$	151,226	$	—

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 December 31, 2014:

	(in thousands)
December 31, 2014	Total		Level 1		Level 2		Level 3
Impaired loans	$	568	$	—	$	—	$	568
Other real estate owned		736		—		—		736
Total assets at fair value	$	1,304	$	—	$	—	$	1,304

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 other real estate owned as of December 31, 2014 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%.
Other real estate owned	Collateral	External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 11%.