INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The significant components of the provision for income taxes for the years ended December 31, 2013, 2012 and 2011 are as follows:

	2013		2012		2011
	(dollars in thousands)
Current tax provision:
Federal	$	823	$	38	$	(19)
State		227		-		-
Total current tax provision (benefit)		1,050		38		(19)
Deferred tax provision:
Federal		526		2,217		(355)
State		227		567		(11)
Total deferred tax provision (benefit)		753		2,784		(366)
Net income tax provision (benefit)	$	1,803	$	2,822	$	(385)

Federal Income Tax Note [Table Text Block]

The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes is summarized below:

	2013		2012		2011
	(dollars in thousands)
Income tax at federal statutory rate	$	1,613	$	2,536	$	(186)
Increase (decrease) resulting from:
State income taxes, net of federal tax effect		300		374		(7)
Tax-exempt interest income		(66)		(68)		(72)
Income from life insurance		(80)		(84)		(87)
Incentive stock option expense		9		13		26
Other permanent differences		27		51		(59)
Provision for income taxes	$	1,803	$	2,822	$	(385)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of deferred taxes at December 31, 2013 and 2012 are as follows:

	2013		2012
	(dollars in thousands)
Deferred tax assets relating to:
Allowance for loan losses	$	2,631	$	3,044
Deferred compensation		327		401
Supplemental executive retirement plan		59		61
Net operating loss/net economic loss		-		295
Unrealized losses on available-for-sale securities		65		-
Write-downs on foreclosed real estate		77		107
AMT tax credit		25		58
Other		164		71
Total deferred tax assets		3,348		4,037
Deferred tax liabilities relating to:
Premises and equipment		(694)		(730)
Deferred loan fees/costs		(29)		(22)
Unrealized gains on available-for-sale securities		-		(699)
Core deposit intangible		(68)		(115)
Other		(77)		-
Total deferred tax liabilities		(868)		(1,566)
Net recorded deferred tax asset, included in other assets	$	2,480	$	2,471