11. INCOME TAX EXPENSE (BENEFIT) (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

(Dollars are in thousands)	2015		2014
Current expense (benefit)	$	19	$	(5	)
Deferred tax expense (benefit)		—		—
Net income tax expense (benefit)	$	19	$	(5	)

Schedule of Net Deferred Tax Assets and Liabilities

(Dollars are in thousands)	2015			2014
Deferred Tax Assets
Allowance for loan losses	$	2,548		$	3,373
Deferred compensation		148			150
Accrued employee benefits		82			89
Bank owned life insurance		—			50
Nonaccrual loan interest		737			752
Other real estate owned		2,214			1,386
Amortization of core deposits		119			138
Amortization of goodwill		607			701
Capitalized interest and repair expense		43			44
Net operating loss carryforward		5,150			5,986
AMT carryforward		305			252
Unrealized loss on securities available for sale		169			36
Total Assets, gross		12,122			12,957
Valuation allowance		(5,655	)		(6,390	)
Total Assets, net		6,467			6,567
Deferred Tax Liabilities
Accelerated depreciation		959			1,070
Prepaid expenses		44			217
Deferred loan costs		343			292
Total Liabilities, gross		1,346			1,579
Net Deferred Tax Asset	$	5,121		$	4,988

Schedule of Reconciliation of Income Tax Expense

(Dollars are in thousands)	2015			2014
Income tax expense (benefit) at the applicable federal rate	$	912		$	80
Permanent differences resulting from:
Nondeductible expenses		7			8
Tax exempt interest income		(44	)		(42	)
State income taxes less federal tax effect		(13	)		3
Bank owned life insurance		(42	)		(37	)
Deferred tax valuation allowance change, net		(735	)		38
Other adjustments		(66	)		(55	)
Income tax expense (benefit)	$	19		$	(5	)