Peoples Bancorp of North Carolina (PEBK) 10-Q 5 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document And Entity Information	'	'
Entity Registrant Name	'PEOPLES BANCORP OF NORTH CAROLINA INC	'
Entity Central Index Key	'0001093672	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,613,495
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Cash and due from banks, including reserve requirements of $10,342 and $9,625	$53,977	$32,617
Interest bearing deposits	26,973	16,226
Cash and cash equivalents	80,950	48,843
Investment securities available for sale	301,788	297,823
Other investments	5,215	5,599
Total securities	307,003	303,422
Mortgage loans held for sale	2,201	6,922
Loans	617,061	619,974
Less allowance for loan losses	-13,854	-14,423
Net loans	603,207	605,551
Premises and equipment, net	16,543	15,874
Cash surrender value of life insurance	13,597	13,273
Other real estate	2,751	6,254
Accrued interest receivable and other assets	16,489	13,377
Total assets	1,042,741	1,013,516
Deposits:	'	'
Non-interest bearing demand	188,860	161,582
NOW, MMDA & savings	384,429	371,719
Time, $100,000 or more	120,153	134,733
Other time	104,849	113,491
Total deposits	798,291	781,525
Securities sold under agreements to repurchase	48,174	34,578
FHLB borrowings	70,000	70,000
Junior subordinated debentures	20,619	20,619
Accrued interest payable and other liabilities	9,985	9,047
Total liabilities	947,069	915,769
Commitments	'	'
Shareholders' equity:	'	'
Series A preferred stock, $1,000 stated value; authorized 5,000,000 shares; issued and outstanding 12,524 shares in 2013 and 2012	12,524	12,524
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,613,495 shares in 2013 and 2012	48,133	48,133
Retained earnings	35,810	31,478
Accumulated other comprehensive income	-795	5,612
Total shareholders' equity	95,672	97,747
Total liabilities and shareholders' equity	$1,042,741	$1,013,516

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Assets	'	'
Cash and due from banks, reserve requirements	$10,342	$9,625
Shareholders' equity:	'	'
Series A preferred stock, stated value (in dollars per share)	$1,000	$1,000
Series A preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Series A preferred stock, shares issued (in shares)	12,524	12,524
Series A preferred stock, shares outstanding (in shares)	12,524	12,524
Common stock, par value (in dollars per share)	$0	$0
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	5,613,495	5,613,495
Common stock, shares outstanding (in shares)	5,613,495	5,613,495

Consolidated_Statements_of_Ear

Consolidated Statements of Earnings (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest income:	'	'	'	'
Interest and fees on loans	$7,592	$8,170	$22,671	$24,822
Interest on due from banks	22	15	62	34
Interest on investment securities:	'	'	'	'
U.S. Government sponsored enterprises	307	519	970	2,327
States and political subdivisions	1,179	877	3,233	2,463
Other	88	74	264	206
Total interest income	9,188	9,655	27,200	29,852
Interest expense:	'	'	'	'
NOW, MMDA & savings deposits	160	274	578	913
Time deposits	396	737	1,285	2,632
FHLB borrowings	618	689	1,914	2,064
Junior subordinated debentures	100	110	299	332
Other	11	32	43	105
Total interest expense	1,285	1,842	4,119	6,046
Net interest income	7,903	7,813	23,081	23,806
Provision for loan losses	337	761	2,164	4,413
Net interest income after provision for loan losses	7,566	7,052	20,917	19,393
Non-interest income:	'	'	'	'
Service charges	1,189	1,222	3,333	3,601
Other service charges and fees	258	228	900	828
Gain on sale of securities	'	12	614	1,203
Mortgage banking income	301	296	1,000	793
Insurance and brokerage commissions	161	150	478	404
Loss on sale and write-down of other real estate	-111	-326	-284	-710
Miscellaneous	1,313	1,304	3,806	3,739
Total non-interest income	3,111	2,886	9,847	9,858
Non-interest expense:	'	'	'	'
Salaries and employee benefits	4,183	4,187	12,614	11,960
Occupancy	1,357	1,291	3,988	3,891
Other	2,349	2,678	7,004	7,420
Total non-interest expense	7,889	8,156	23,606	23,271
Earnings before income taxes	2,788	1,782	7,158	5,980
Income tax expense	870	369	1,848	1,400
Net earnings	1,918	1,413	5,310	4,580
Dividends and accretion on preferred stock	156	157	470	853
Net earnings available to common shareholders	$1,762	$1,256	$4,840	$3,727
Basic net earnings per common share	$0.31	$0.23	$0.86	$0.67
Diluted net earnings per common share	$0.31	$0.23	$0.86	$0.67
Cash dividends declared per common share	$0.03	$0.02	$0.09	$0.11

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements Of Comprehensive Income Loss	'	'	'	'
Net earnings	$1,918	$1,413	$5,310	$4,580
Other comprehensive (loss) income:	'	'	'	'
Unrealized holding (losses) gains on securities available for sale	-2,084	1,427	-9,881	5,156
Reclassification adjustment for gains on securities available for sale included in net earnings	'	-12	-614	-1,203
Total other comprehensive (loss) income, before income taxes	-2,084	1,415	-10,495	3,953
Income tax (benefit) expense related to other comprehensive (loss) income:	'	'	'	'
Unrealized holding (losses) gains on securities available for sale	-812	555	-3,849	2,008
Reclassification adjustment for gains on securities available for sale included in net earnings	'	-4	-239	-470
Total income tax (benefit) expense related to other comprehensive (loss) income	-812	551	-4,088	1,538
Total other comprehensive (loss) income, net of tax	-1,272	864	-6,407	2,415
Total comprehensive income (loss)	$646	$2,277	($1,097)	$6,995

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net earnings	$5,310	$4,580
Adjustments to reconcile net earnings to net cash provided by operating activities:	'	'
Depreciation, amortization and accretion	6,099	6,651
Provision for loan losses	2,164	4,413
Gain on sale of investment securities	-614	-1,203
(Gain)/Loss on sale of other real estate	-86	21
Write-down of other real estate	370	689
Restricted stock expense	104	17
Change in:	'	'
Mortgage loans held for sale	4,721	-838
Cash surrender value of life insurance	-324	-307
Other assets	897	565
Other liabilities	938	826
Net cash provided by operating activities	19,579	15,414
Cash flows from investing activities:	'	'
Purchases of investment securities available for sale	-89,169	-55,617
Proceeds from calls, maturities and paydowns of investment securities available for sale	52,666	48,123
Proceeds from sales of investment securities available for sale	17,463	47,062
Purchases of FHLB stock	'	-493
FHLB stock redemption	384	606
Net change in loans	-1,448	35,910
Purchases of premises and equipment	-1,575	-657
Proceeds from sales of other real estate and repossessions	4,823	4,611
Net cash (used) provided by investing activities	-16,856	79,545
Cash flows from financing activities:	'	'
Net change in deposits	16,766	-58,641
Net change in securities sold under agreements to repurchase	13,596	3,536
Proceeds from FHLB borrowings	15,000	25,400
Repayments of FHLB borrowings	-15,000	-25,400
Warrant repurchase	'	-425
Stock options exercised	'	410
Preferred stock repurchased	'	-11,695
Cash dividends paid on preferred stock	-470	-866
Cash dividends paid on common stock	-508	-610
Net cash provided (used) by financing activities	29,384	-68,291
Net change in cash and cash equivalents	32,107	26,668
Cash and cash equivalents at beginning of period	48,843	29,236
Cash and cash equivalents at end of period	80,950	55,904
Cash paid during the period for:	'	'
Interest	4,179	6,609
Income taxes	1,937	1,190
Noncash investing and financing activities:	'	'
Change in unrealized (loss) gain on investment securities available for sale, net	-6,407	2,414
Transfers of loans to other real estate and repossessions	2,153	4,669
Financed portion of sales of other real estate	525	330
Accretion of Series A preferred stock	'	70
Discount on preferred stock	'	$835

1_Summary_of_Significant_Accou

1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
1. Summary of Significant Accounting Policies	'
	The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly-owned subsidiaries, Peoples Bank (the “Bank”) and Community Bank Real Estate Solutions, LLC, along with the Bank’s wholly-owned subsidiaries, Peoples Investment Services, Inc. and Real Estate Advisory Services, Inc. (“REAS”) (collectively called the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.
	The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2012) are unaudited.  In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included.  Management of the Company has made a number of estimates and assumptions relating to reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”).  Actual results could differ from those estimates.
	The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition.  Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance.  A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2012 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 2, 2013 Annual Meeting of Shareholders.
	Recently Issued Accounting Pronouncements
	In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU No. 2013-01 provides additional guidance to clarify the intended scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  ASU No. 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods.  The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
	In February 2013, FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.  The objective of ASU No. 2013-02 is to improve the reporting of significant reclassifications out of accumulated other comprehensive income.  For public entities, ASU No. 2013-02 is effective for reporting periods beginning after December 15, 2012.  The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
	Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
	Reclassification
	Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation.

2_Investment_Securities

2. Investment Securities	9 Months Ended
	Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]	'
Investment Securities	'
	Investment securities available for sale at September 30, 2013 and December 31, 2012 are as follows:
	(Dollars in thousands)
		30-Sep-13
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	127,153	1,017	697	127,473
	U.S. Government
	sponsored enterprises		22,557	186	9	22,734
	State and political subdivisions		147,847	2,313	5,032	145,128
	Corporate bonds		3,535	15	63	3,487
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	968	-	1,716
	Total	$	303,090	4,499	5,801	301,788
	(Dollars in thousands)
		31-Dec-12
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	146,755	1,875	606	148,024
	U.S. Government
	sponsored enterprises		18,714	203	80	18,837
	State and political subdivisions		118,591	7,171	104	125,658
	Corporate bonds		2,571	19	4	2,586
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	720	-	1,468
	Total	$	288,629	9,988	794	297,823
	The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2013 and December 31, 2012 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.
	(Dollars in thousands)
		30-Sep-13
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	45,774	596	10,173	101	55,947	697
	U.S. Government
	sponsored enterprises		1,078	9	-	-	1,078	9
	State and political subdivisions		76,195	5,032	-	-	76,195	5,032
	Corporate bonds		1,507	63	-	-	1,507	63
	Total	$	124,554	5,700	10,173	101	134,727	5,801
	(Dollars in thousands)
		31-Dec-12
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	48,126	468	12,913	138	61,039	606
	U.S. Government
	sponsored enterprises		3,402	80	-	-	3,402	80
	State and political subdivisions		9,490	104	-	-	9,490	104
	Corporate bonds		1,035	4	-	-	1,035	4
	Total	$	62,053	656	12,913	138	74,966	794
	At September 30, 2013, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.8 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the September 30, 2013 tables above, 78 out of 180 securities issued by state and political subdivisions contained unrealized losses, 27 out of 95 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and two out of five securities issued by corporations contained unrealized losses.  These unrealized losses are considered temporary because of acceptable financial condition and results of operations on each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.
	The amortized cost and estimated fair value of investment securities available for sale at September 30, 2013, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
	30-Sep-13
	(Dollars in thousands)
		Amortized		Estimated Fair
		Cost		Value
	Due within one year	$	2,637	2,670
	Due from one to five years		27,480	27,789
	Due from five to ten years		118,720	116,014
	Due after ten years		26,352	26,126
	Mortgage-backed securities		127,153	127,473
	Equity securities		748	1,716
	Total	$	303,090	301,788
Proceeds from sales of securities available for sale during the nine months ended September 30, 2013 were $17.5 million and resulted in gross gains of $738,000 and gross losses of $124,000.  Proceeds from sales of securities available for sale during the nine months ended September 30, 2012 were $47.0 million and resulted in gross gains of $1.3 million and gross losses of $103,000.
Securities with a fair value of approximately $82.7 million and $73.9 million at September 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes as required by law.

3_Loans

3. Loans	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Loans	'
	Major classifications of loans at September 30, 2013 and December 31, 2012 are summarized as follows:
	(Dollars in thousands)
		30-Sep-13			31-Dec-12
	Real estate loans
	Construction and land development	$	67,870		73,176
	Single-family residential		191,338		195,003
	Single-family residential -
	Banco de la Gente stated income		50,035		52,019
	Commercial		205,911		200,633
	Multifamily and farmland		11,541		8,951
	Total real estate loans		526,695		529,782
	Loans not secured by real estate
	Commercial loans		64,957		64,295
	Farm loans		22		11
	Consumer loans		9,754		10,148
	All other loans		15,633		15,738
	Total loans		617,061		619,974
	Less allowance for loan losses		13,854		14,423
	Net loans	$	603,207		605,551
	The Bank grants loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties and also in Mecklenburg, Union and Wake counties of North Carolina.  Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market.  Risk characteristics of the major components of the Bank’s loan portfolio are discussed below:
	·	Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing.  During the construction phase, a number of factors can result in delays or cost overruns.  If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.  As of September 30, 2013, construction and land development loans comprised approximately 11% of the Bank’s total loan portfolio.
	·	Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.  As of September 30, 2013, single-family residential loans comprised approximately 39% of the Bank’s total loan portfolio, and include Banco de la Gente single-family residential stated income loans which were approximately 8% of the Bank’s total loan portfolio.
	·	Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.  These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity.  A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property.  As of September 30, 2013, commercial real estate loans comprised approximately 33% of the Bank’s total loan portfolio.
	·	Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business.   In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.  As of September 30, 2013, commercial loans comprised approximately 11% of the Bank’s total loan portfolio.
	Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
	The folloing tables present an age analysis of past due loans, by loan type, as of September 30, 2013 and December 31, 2012:
	30-Sep-13
	(Dollars in thousands)
		Loans 30-89			Loans 90 or		Total		Total		Total Loans	Accruing
		Days Past Due			More Days		Past Due		Current			Loans 90 or
					Past Due		Loans		Loans			More Days
												Past Due
	Real estate loans
	Construction and land development	$	229		5,752		5,981		61,889		67,870	-
	Single-family residential		4,242		1,773		6,015		185,323		191,338	-
	Single-family residential -
	Banco de la Gente stated income		4,388		2,764		7,152		42,883		50,035	1,987
	Commercial		2,437		153		2,590		203,321		205,911	-
	Multifamily and farmland		137		185		322		11,219		11,541	185
	Total real estate loans		11,433		10,627		22,060		504,635		526,695	2,172
	Loans not secured by real estate
	Commercial loans		902		62		964		63,993		64,957	-
	Farm loans		-		-		-		22		22	-
	Consumer loans		180		25		205		9,549		9,754	1
	All other loans		-		-		-		15,633		15,633	-
	Total loans	$	12,515		10,714		23,229		593,832		617,061	2,173
	31-Dec-12
	(Dollars in thousands)
		Loans 30-89			Loans 90 or		Total		Total		Total Loans	Accruing
		Days Past			More Days		Past Due		Current			Loans 90 or
		Due			Past Due		Loans		Loans			More Days
												Past Due
	Real estate loans
	Construction and land development	$	1,280		6,858		8,138		65,038		73,176	-
	Single-family residential		4,316		1,548		5,864		189,139		195,003	-
	Single-family residential -
	Banco de la Gente stated income		11,077		3,659		14,736		37,283		52,019	2,378
	Commercial		1,720		1,170		2,890		197,743		200,633	-
	Multifamily and farmland		7		-		7		8,944		8,951	-
	Total real estate loans		18,400		13,235		31,635		498,147		529,782	2,378
	Loans not secured by real estate
	Commercial loans		888		66		954		63,341		64,295	23
	Farm loans		-		-		-		11		11	-
Consumer loans		250		10		260		9,888		10,148	2
All other loans		-		-		-		15,738		15,738	-
Total loans	$	19,538		13,311		32,849		587,125		619,974	2,403
The following table presents the Company’s non-accrual loans as of September 30, 2013 and December 31, 2012:
(Dollars in thousands)
	30-Sep-13			31-Dec-12
Real estate loans
Construction and land development	$	6,993		9,253
Single-family residential		3,284		2,491
Single-family residential -
Banco de la Gente stated income		1,748		2,232
Commercial		1,969		3,263
Total real estate loans		13,994		17,239
Loans not secured by real estate
Commercial loans		112		344
Consumer loans		38		47
Total	$	14,144		17,630
At each reporting period, the Bank determines which loans are impaired.  Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis.  An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral.  The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank.  REAS is staffed by certified appraisers that also perform appraisals for other companies.  Factors including the assumptions and techniques utilized by the appraiser are considered by management.  If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses.  An allowance for each impaired loan that is non-collateral dependent is calculated based on the present value of projected cash flows.  If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses.  Impaired loans under $250,000 are not individually evaluated for impairment, with the exception of the Bank’s troubled debt restructured (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment.  Accruing impaired loans were $27.1 million, $30.6 million and $38.7 million at September 30, 2013, December 31, 2012 and September 30, 2012, respectively.  Interest income recognized on accruing impaired loans was $916,000, $1.4 million and $1.5 million for the nine months ended September 30, 2013, the nine months ended September 30, 2012 and the year ended December 31, 2012, respectively.  Interest income recognized on accruing impaired loans was $337,000 and $543,000 for the three months ended September 30, 2013 and 2012, respectively.  No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual.
The following tables present the Company’s impaired loans as of September 30, 2013 and December 31, 2012:
30-Sep-13
(Dollars in thousands)
											Average Outstanding Impaired Loans
	Unpaid Contractual Principal Balance			Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment		Related Allowance	Three		Three	Nine		Nine
								in Impaired Loans			Months		Months	Months		Months
											Ended September		Ended September	Ended September		Ended September
											30, 2012		30, 2013	30, 2012		30, 2013
Real estate loans
Construction and land development	$	10,399		6,705		923		7,628		61	12,318		7,902	13,806		8,954
Single-family residential		8,705		1,228		6,828		8,056		161	7,320		7,965	7,868		8,404
Single-family residential -
Banco de la Gente stated income		21,651		-		20,775		20,775		1,259	21,038		20,780	20,752		20,904
Commercial		4,063		3,100		556		3,656		8	6,317		3,753	5,565		4,297
Multifamily and farmland		185		-		185		185		3	200		185	201		188
Total impaired real estate loans		45,003		11,033		29,267		40,300		1,492	47,193		40,585	48,192		42,747
Loans not secured by real estate
Commercial loans		643		-		628		628		11	1,186		701	1,187		816
Consumer loans		317		272		43		315		1	23		316	38		185
Total impaired loans	$	45,963		11,305		29,938		41,243		1,504	48,402		41,602	49,417		43,748
31-Dec-12
(Dollars in thousands)
	Unpaid Contractual Principal			Recorded Investment		Recorded Investment		Recorded Investment		Related	Average Outstanding Impaired
	Balance			With No Allowance		With		in Impaired		Allowance	Loans
						Allowance		Loans
Real estate loans
Construction and land development	$	17,738		11,795		680		12,475		61	12,810
Single-family residential		9,099		766		7,799		8,565		177	7,590
Single-family residential -
Banco de la Gente stated income		21,806		-		21,000		21,000		1,278	21,158
Commercial		5,830		4,569		467		5,036		6	5,433
Multifamily and farmland		193		-		193		193		1	200
Total impaired real estate loans		54,666		17,130		30,139		47,269		1,523	47,191
Loans not secured by real estate
Commercial loans		983		347		592		939		12	1,125
Consumer loans		68		-		66		66		1	41
Total impaired loans	$	55,717		17,477		30,797		48,274		1,536	48,357
Changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 were as follows:
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer and All Other		Unallocated	Total
				Family Residential		Family Residential - Banco de la Gente				Farmland
						Stated Income
Nine months ended September 30, 2013
Allowance for loan losses:
Beginning balance	$	4,399		3,231		1,998		2,049		28	1,088		-	245		1,385	14,423
Charge-offs		(732	)	(1,204	)	(252	)	(327	)	-	(483	)	-	(485	)	-	(3,483	)
Recoveries		374		75		101		50		-	39		-	111		-	750
Provision		99		864		67		240		8	140		-	379		367	2,164
Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
Three months ended September 30, 2013
Allowance for loan losses:
Beginning balance	$	4,725		3,304		1,924		1,858		34	822		-	229		1,133	14,029
Charge-offs		(17	)	(569	)	(28	)	(51	)	-	(101	)	-	(204	)	-	(970	)
Recoveries		348		31		31		-		-	14		-	34		-	458
Provision		(916	)	200		(13	)	205		2	49		-	191		619	337
Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
Allowance for loan losses September 30, 2013:
Ending balance: individually
evaluated for impairment	$	1		60		1,233		-		-	-		-	-		-	1,294
Ending balance: collectively
evaluated for impairment		4,139		2,906		681		2,012		36	784		-	250		1,752	12,560
Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
Loans September 30, 2013:
Ending balance	$	67,870		191,338		50,035		205,911		11,541	64,957		22	25,387		-	617,061
Ending balance: individually
evaluated for impairment	$	6,790		3,079		19,803		3,100		-	-		-	272		-	33,044
Ending balance: collectively
evaluated for impairment	$	61,080		188,259		30,232		202,811		11,541	64,957		22	25,115		-	584,017
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer and All		Unallocated	Total
				Family Residential		Family Residential - Banco de la Gente				Farmland				Other
						Stated Income
Nine months ended September 30, 2012
Allowance for loan losses:
Beginning balance	$	7,182		3,253		2,104		1,731		13	1,029		-	255		1,037	16,604
Charge-offs		(3,045	)	(666	)	(483	)	(547	)	-	(498	)	-	(403	)	-	(5,642	)
Recoveries		522		71		-		374		-	95		-	115		-	1,177
Provision		1,733		367		450		(21	)	-	(18	)	-	222		1,679	4,412
Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
Three months ended September 30, 2012
Allowance for loan losses:
Beginning balance	$	7,645		2,902		2,224		1,516		13	629		-	191		1,520	16,640
Charge-offs		(663	)	(176	)	(112	)	(24	)	-	(156	)	-	(135	)	-	(1,266	)
Recoveries		304		2		-		-		-	84		-	26		-	416
Provision		(894	)	297		(41	)	45		-	51		-	107		1,196	761
Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
Allowance for loan losses September 30, 2012:
Ending balance: individually
evaluated for impairment	$	1,527		376		1,261		114		-	-		-	-		-	3,278
Ending balance: collectively
evaluated for impairment		4,865		2,649		810		1,423		13	608		-	189		2,716	13,273
Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
Loans September 30, 2012:
Ending balance	$	80,733		197,043		52,124		203,603		4,964	60,358		12	26,945		-	625,782
Ending balance: individually
evaluated for impairment	$	19,734		3,716		20,054		6,798		-	346		-	-		-	50,648
Ending balance: collectively
evaluated for impairment	$	60,999		193,327		32,070		196,805		4,964	60,012		12	26,945		-	575,134
The Company utilizes an internal risk grading matrix to assign a risk grade to each of its loans.  Loans are graded on a scale of 1 to 8.  These risk grades are evaluated on an ongoing basis.  The Low Substandard risk grade was removed from the Company’s internal risk grading matrix during the first quarter of 2013.  No loans were classified Low Substandard at December 31, 2012.  A description of the general characteristics of the eight risk grades is as follows:
·	Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists.  CD or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade.
·	Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Company’s range of acceptability.  The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes.
·	Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Company’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change).
·	Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed.  These are not problem credits presently, but may be in the future if the borrower is unable to change its present course.
·	Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Company’s position at some future date.
·	Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any).  There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  There is a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
·	Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off.
·	Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted.  This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future.  Loss is a temporary grade until the appropriate authority is obtained to charge the loan off.
The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of September 30, 2013 and December 31, 2012:
30-Sep-13
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer		All Other	Total
				Family Residential		Family Residential - Banco de la Gente				Farmland
						Stated Income
1- Excellent Quality	$	8		18,693		-		-		-	361		-	1,171		-	20,233
2- High Quality		5,868		57,682		-		37,940		286	6,755		-	3,725		2,147	114,403
3- Good Quality		26,814		69,013		23,193		119,080		8,019	44,285		22	4,041		11,125	305,592
4- Management Attention		14,666		32,766		9,528		39,925		506	12,408		-	431		2,361	112,591
5- Watch		9,629		7,652		7,384		4,564		2,545	401		-	32		-	32,207
6- Substandard		10,885		5,532		9,930		4,402		185	747		-	351		-	32,032
7- Doubtful		-		-		-		-		-	-		-	-		-	-
8- Loss		-		-		-		-		-	-		-	3		-	3
Total	$	67,870		191,338		50,035		205,911		11,541	64,957		22	9,754		15,633	617,061
31-Dec-12
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer		All Other	Total
				Family Residential		Family Residential - Banco de la Gente				Farmland
						Stated Income
1- Excellent Quality	$	11		24,662		-		-		-	672		-	1,239		-	26,584
2- High Quality		4,947		56,829		-		27,511		32	9,260		-	4,122		2,317	105,018
3- Good Quality		24,952		62,018		24,724		114,001		4,975	40,814		11	4,186		13,416	289,097
4- Management Attention		18,891		35,727		11,366		47,603		3,039	11,844		-	392		5	128,867
5- Watch		9,580		9,504		3,597		6,911		712	976		-	134		-	31,414
6- Substandard		14,795		6,263		12,332		4,607		193	729		-	70		-	38,989
7- Low Substandard		-		-		-		-		-	-		-	-		-	-
8- Doubtful		-		-		-		-		-	-		-	-		-	-
9- Loss		-		-		-		-		-	-		-	5		-	5
Total	$	73,176		195,003		52,019		200,633		8,951	64,295		11	10,148		15,738	619,974
At September 30, 2013, TDR loans amounted to $17.1 million, including $251,000 in performing TDR loans.  Performing TDR balances reflect current year TDR loans only, in accordance with GAAP.  At December 31, 2012, TDR loans were $23.9 million, including $2.0 million in performing TDR loans.   The terms of these loans have been renegotiated to provide a reduction in principal or interest as a result of the deteriorating financial position of the borrower.
The following table presents an analysis of TDR loans by loan type as of September 30, 2013:
30-Sep-13
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Construction and land development	14		$	10,098		6,750
Single-family residential	22			1,367		1,978
Single-family residential -
Banco de la Gente stated income	68			7,630		6,263
Commercial	6			2,236		1,816
Multifamily and farmland	1			322		185
Total real estate TDR loans	111			21,653		16,992
Loans not secured by real estate
Commercial loans	8			242		120
Consumer loans	1			2		-
Total TDR loans	120		$	21,897		17,112
The Bank did not enter into any new TDR loan modifications during the three months ended September 30, 2013.  The following table presents an analysis of loan modifications during the nine months ended September 30, 2013:
Nine months ended September 30, 2013
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Construction and land development	2		$	841		825
Single-family residential -
Banco de la Gente stated income	4		$	471		466
Total real estate TDR loans	6			1,312		1,291
Total TDR loans	6		$	1,312		1,291
The following tables present an analysis of loan modifications during the three and nine months ended September 30, 2012:
Three months ended September 30, 2012
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Single-family residential	2		$	177		176
Single-family residential -
Banco de la Gente stated income	3		$	276		275
Total real estate TDR loans	5			453		451
Total TDR loans	5		$	453		451
Nine months ended September 30, 2012
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Single-family residential	3		$	302		301
Single-family residential -
Banco de la Gente stated income	18		$	1,862		1,847
Total real estate TDR loans	21			2,164		2,148
Loans not secured by real estate
Commercial loans	1			14		14
Total TDR loans	22		$	2,178		2,162
The following table presents an analysis of TDR loans by loan type as of December 31, 2012:
31-Dec-12
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Construction and land development	11		$	10,465		6,633
Single-family residential	33			3,014		4,084
Single-family residential -
Banco de la Gente stated income	122			13,459		12,170
Commercial	4			1,457		682
Multifamily and farmland	-			-		-
Total real estate TDR loans	170			28,395		23,569
Loans not secured by real estate
Commercial loans	9			511		368
Consumer loans	1			2		-
Total TDR loans	180		$	28,908		23,937

4_Net_Earnings_Per_Common_Shar

4. Net Earnings Per Common Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
4. Net Earnings Per Common Share	'
	Net earnings per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per common share.  The average market price during the year is used to compute equivalent shares.
	The reconciliation of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the three and nine months ended September 30, 2013 and 2012 is as follows:
	For the three months ended September 30, 2013
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	1,762	5,613,495	$	0.31
	Effect of dilutive securities:
	Stock options		-	15,180
	Diluted earnings per common share	$	1,762	5,628,675	$	0.31
	For the nine months ended September 30, 2013
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	4,840	5,613,495	$	0.86
	Effect of dilutive securities:
	Stock options		-	8,554
	Diluted earnings per common share	$	4,840	5,622,049	$	0.86
	For the three months ended September 30, 2012
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	1,256	5,559,016	$	0.23
	Effect of dilutive securities:
	Stock options		-	2,570
	Diluted earnings per common share	$	1,256	5,561,586	$	0.23
	For the nine months ended September 30, 2012
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	3,727	5,549,148	$	0.67
	Effect of dilutive securities:
	Stock options		-	2,168
	Diluted earnings per common share	$	3,727	5,551,316	$	0.67

5_StockBased_Compensation

5. Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
5. Stock-Based Compensation	'
	The Company has an Omnibus Stock Ownership and Long Term Incentive Plan (the “1999 Plan”) whereby certain stock-based rights, such as stock options, restricted stock and restricted stock units were granted to eligible directors and employees.  The 1999 Plan expired on May 13, 2009 but still governs the rights and obligations of the parties for grants made thereunder.
	Under the 1999 Plan, the Company granted incentive stock options to certain eligible employees in order that they may purchase Company stock at a price equal to the fair market value on the date of the grant.  The options granted in 1999 vested over a five-year period.  Options granted subsequent to 1999 vested over a three-year period.  All options expire ten years after issuance.
	In addition, under the 1999 Plan, the Company granted 3,000 restricted stock units in 2007 at a grant date fair value of $17.40 per share. The Company granted 1,750 restricted stock units at a grant date fair value of $12.80 per share during the third quarter of 2008 and 2,000 restricted stock units at a grant date fair value of $11.37 per share during the fourth quarter of 2008. The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (three years from the grant date for the grants of restricted stock units to date under the 1999 Plan).  The amount of expense recorded each period reflects the changes in the Company’s stock price during the period.  As of September 30, 2013, there was no unrecognized compensation cost related to the 2007 and 2008 restricted stock unit grants.
	The Company also has an Omnibus Stock Ownership and Long Term Incentive Plan that was approved by shareholders on May 7, 2009 (the “2009 Plan”) whereby certain stock-based rights, such as stock options, restricted stock, restricted stock units, performance units, stock appreciation rights or book value shares, may be granted to eligible directors and employees.  A total of 303,691 shares are currently reserved for possible issuance under the 2009 Plan.   All rights must be granted or awarded within ten years from the May 7, 2009 effective date of the 2009 Plan.
	The Company granted 29,514 restricted stock units under the 2009 Plan  at a grant date fair value of $7.90 per share during the first quarter of 2012.  5,355 restricted stock units were forfeited by the executive officers of the Company as required by the agreement with the U.S. Department of the Treasury (“UST”) in conjunction with the Company’s participation in the Capital Purchase Program (“CPP”) under the Troubled Asset Relief Program (“TARP”).  In July 2012, the Company granted 5,355 restricted stock units at a grant date fair value of $8.25 per share. The Company granted 26,795 restricted stock units under the 2009 Plan at a grant date fair value of $11.90 per share during the second quarter of 2013.  The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (five years from the grant date for the 2012 grants and four years from the grant date for the 2013 grants).  The amount of expense recorded each period reflects the changes in the Company’s stock price during the period.  As of September 30, 2013, the total unrecognized compensation cost related to the restricted stock unit grants under the 2009 Plan was $550,000.
	The Company recognized compensation expense for restricted stock unit awards of $104,000 and $31,000 for the nine months ended September 30, 2013 and 2012, respectively.

6_Fair_Value

6. Fair Value	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value	'
	The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination, or issuance.
	The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.  These levels are:
	·	Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
	·	Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
	·	Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market.  These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
	Cash and Cash Equivalents
	For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value.  Cash and cash equivalents are reported  in the Level 1 fair value category.
	Investment Securities Available for Sale
	Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available.  If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.  Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category.  Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category.
	Other Investments
	For other investments, the carrying value is a reasonable estimate of fair value.  Other investments are reported in the Level 3 fair value category.
	Mortgage Loans Held for Sale
	Mortgage loans held for sale are carried at lower of aggregate cost or market value.  The cost of mortgage loans held for sale approximates the market value.  Mortgage loans held for sale are reported  in the Level 3 fair value category.
	Loans
	The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value.  Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments.
	Cash Surrender Value of Life Insurance
	For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value.  Cash surrender value of life insurance is reported in the Level 2 fair value category.
	Other Real Estate
	The fair value of other real estate is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral.  Other real estate is reported in the Level 3 fair value category.
	Deposits
	The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.  Deposits are reported in the Level 2 fair value category.
	Securities Sold Under Agreements to Repurchase
	For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value.  Securities sold under agreements to repurchase are reported in the Level 2 fair value category.
	Federal Home Loan Bank (“FHLB”) Borrowings
	The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings.  FHLB borrowings are reported in the Level 2 fair value category.
	Junior Subordinated Debentures
	Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value.  Junior subordinated debentures are reported in the Level 2 fair value category.
	Commitments to Extend Credit and Standby Letters of Credit
	Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial.
	Limitations
	Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
	Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
	The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2013 and December 31, 2012.
	(Dollars in thousands)
		30-Sep-13
		Fair Value		Level 1	Level 2	Level 3
		Measurements		Valuation	Valuation	Valuation
	Mortgage-backed securities	$	127,473	-	127,473	-
	U.S. Government
	sponsored enterprises	$	22,734	-	22,734	-
	State and political subdivisions	$	145,128	-	145,128	-
	Corporate bonds	$	3,487	-	3,487	-
	Trust preferred securities	$	1,250	-	-	1,250
	Equity securities	$	1,716	1,716	-	-
	(Dollars in thousands)
		31-Dec-12
		Fair Value		Level 1	Level 2	Level 3
		Measurements		Valuation	Valuation	Valuation
	Mortgage-backed securities	$	148,024	-	148,024	-
	U.S. Government
	sponsored enterprises	$	18,837	-	18,837	-
	State and political subdivisions	$	125,658	-	125,658	-
	Corporate bonds	$	2,586	-	2,586	-
	Trust preferred securities	$	1,250	-	-	1,250
	Equity securities	$	1,468	1,468	-	-
	The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the nine months ended September 30, 2013.
	(Dollars in thousands)
		Investment Securities Available for Sale
		Level 3 Valuation
	Balance, beginning of period	$	1,250
	Change in book value		-
	Change in gain/(loss) realized and unrealized		-
	Purchases/(sales)		-
Transfers in and/or (out) of Level 3		-
Balance, end of period	$	1,250
Change in unrealized gain/(loss) for assets still held in Level 3	$	-
The fair value measurements for impaired loans and other real estate on a non-recurring basis at September 30, 2013 and December 31, 2012 are presented below.  The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of and judgment about current market conditions, specific issues relating to the collateral, and other matters.  As a result, all fair value measurements for impaired loans and other real estate are considered Level 3.
(Dollars in thousands)
	Fair Value Measurements		Level 1 Valuation	Level 2	Level 3	Total Gains/(Losses) for the Nine Months Ended
	30-Sep-13			Valuation	Valuation	30-Sep-13
Impaired loans	$	39,739	-	-	39,739	(2,521	)
Other real estate	$	2,751	-	-	2,751	(284	)
(Dollars in thousands)
	Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for the Year Ended
	Measurements		Valuation	Valuation	Valuation	31-Dec-12
	31-Dec-12
Impaired loans	$	46,738	-	-	46,738	(6,875	)
Other real estate	$	6,254	-	-	6,254	(1,136	)
The carrying amount and estimated fair value of financial instruments at September 30, 2013 and December 31, 2012 are as follows:
(Dollars in thousands)
			Fair Value Measurements at September 30, 2013
	Carrying		Level 1	Level 2	Level 3	Total
	Amount
Assets:
Cash and cash equivalents	$	80,950	80,950	-	-	80,950
Investment securities available for sale		301,788	1,716	298,822	1,250	301,788
Other investments		5,215	-	-	5,215	5,215
Mortgage loans held for sale		2,201	-	-	2,201	2,201
Loans, net		603,207	-	-	594,017	594,017
Cash surrender value of life insurance		13,597	-	13,597	-	13,597
Liabilities:
Deposits	$	798,291	-	797,400	-	797,400
Securities sold under agreements
to repurchase		48,174	-	48,174	-	48,174
FHLB borrowings		70,000	-	71,197	-	71,197
Junior subordinated debentures		20,619	-	20,619	-	20,619
(Dollars in thousands)
			Fair Value Measurements at December 31, 2012
	Carrying		Level 1	Level 2	Level 3	Total
	Amount
Assets:
Cash and cash equivalents	$	48,843	48,843	-	-	48,843
Investment securities available for sale		297,823	1,468	295,105	1,250	297,823
Other investments		5,599	-	-	5,599	5,599
Mortgage loans held for sale		6,922	-	-	6,922	6,922
Loans, net		605,551	-	-	599,996	599,996
Cash surrender value of life insurance		13,273	-	13,273	-	13,273
Liabilities:
Deposits	$	781,525	-	780,662	-	780,662
Securities sold under agreements
to repurchase		34,578	-	34,578	-	34,578
FHLB borrowings		70,000	-	76,375	-	76,375
Junior subordinated debentures		20,619	-	20,619	-	20,619

7_Derivative_Instruments_and_H

7. Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
7. Derivative Instruments and Hedging Activities	'
	Accounting Policy for Derivative Instruments and Hedging Activities
	The disclosure requirements for derivatives and hedging activities have the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows.  The disclosure requirements include qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.
	The Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
	Risk Management Objective of Using Derivatives
	The Company has an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility.  By using derivative instruments, the Company is exposed to credit and market risk.  If the counterparty fails to perform, credit risk is equal to the extent of the fair value gain in the derivative.  The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by the Company.  The Company did not have any interest rate derivatives outstanding as of September 30, 2013 or December 31, 2012.
	Cash Flow Hedges of Interest Rate Risk
	The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy.  For hedges of the Company’s variable-rate loan assets, interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount.  For hedges of the Company’s variable-rate loan assets, the interest rate floors designated as a cash flow hedge involves the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up front premium.  The Company had an interest rate swap contract that expired in June 2011.  The Company did not have any interest rate derivatives outstanding as of September 30, 2013 or December 31, 2012.
	The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in “Accumulated Other Comprehensive Income” and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

1_Summary_of_Significant_Accou1

1. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Recent Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements
	In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU No. 2013-01 provides additional guidance to clarify the intended scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  ASU No. 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods.  The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
	In February 2013, FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.  The objective of ASU No. 2013-02 is to improve the reporting of significant reclassifications out of accumulated other comprehensive income.  For public entities, ASU No. 2013-02 is effective for reporting periods beginning after December 15, 2012.  The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
	Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
Reclassification	'
	Reclassification
	Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation.

2_Investment_Securities_Tables

2. Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2013
Investment Securities Tables	'
Investment securities available for sale	'
	(Dollars in thousands)
		30-Sep-13
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	127,153	1,017	697	127,473
	U.S. Government
	sponsored enterprises		22,557	186	9	22,734
	State and political subdivisions		147,847	2,313	5,032	145,128
	Corporate bonds		3,535	15	63	3,487
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	968	-	1,716
	Total	$	303,090	4,499	5,801	301,788
	(Dollars in thousands)
		31-Dec-12
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	146,755	1,875	606	148,024
	U.S. Government
	sponsored enterprises		18,714	203	80	18,837
	State and political subdivisions		118,591	7,171	104	125,658
	Corporate bonds		2,571	19	4	2,586
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	720	-	1,468
	Total	$	288,629	9,988	794	297,823
Current fair value and associated unrealized losses on investments in securities with unrealized losses	'
	(Dollars in thousands)
		30-Sep-13
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	45,774	596	10,173	101	55,947	697
	U.S. Government
	sponsored enterprises		1,078	9	-	-	1,078	9
	State and political subdivisions		76,195	5,032	-	-	76,195	5,032
	Corporate bonds		1,507	63	-	-	1,507	63
	Total	$	124,554	5,700	10,173	101	134,727	5,801
	(Dollars in thousands)
		31-Dec-12
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	48,126	468	12,913	138	61,039	606
	U.S. Government
	sponsored enterprises		3,402	80	-	-	3,402	80
	State and political subdivisions		9,490	104	-	-	9,490	104
	Corporate bonds		1,035	4	-	-	1,035	4
	Total	$	62,053	656	12,913	138	74,966	794
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity	'
	30-Sep-13
	(Dollars in thousands)
		Amortized		Estimated Fair
		Cost		Value
	Due within one year	$	2,637	2,670
	Due from one to five years		27,480	27,789
	Due from five to ten years		118,720	116,014
	Due after ten years		26,352	26,126
	Mortgage-backed securities		127,153	127,473
	Equity securities		748	1,716
	Total	$	303,090	301,788

3_Loans_Tables

3. Loans (Tables)	9 Months Ended
	Sep. 30, 2013
Loans Tables	'
Major classifications of loans	'
	(Dollars in thousands)
		30-Sep-13			31-Dec-12
	Real estate loans
	Construction and land development	$	67,870		73,176
	Single-family residential		191,338		195,003
	Single-family residential -
	Banco de la Gente stated income		50,035		52,019
	Commercial		205,911		200,633
	Multifamily and farmland		11,541		8,951
	Total real estate loans		526,695		529,782
	Loans not secured by real estate
	Commercial loans		64,957		64,295
	Farm loans		22		11
	Consumer loans		9,754		10,148
	All other loans		15,633		15,738
	Total loans		617,061		619,974
	Less allowance for loan losses		13,854		14,423
	Net loans	$	603,207		605,551
Age analysis of past due loans, by loan type	'
	30-Sep-13
	(Dollars in thousands)
		Loans 30-89			Loans 90 or		Total		Total		Total	Accruing
		Days Past			More Days		Past Due		Current		Loans	Loans 90 or
		Due			Past Due		Loans		Loans			More Days
												Past Due
	Real estate loans
	Construction and land development	$	229		5,752		5,981		61,889		67,870	-
	Single-family residential		4,242		1,773		6,015		185,323		191,338	-
	Single-family residential -
	Banco de la Gente stated income		4,388		2,764		7,152		42,883		50,035	1,987
	Commercial		2,437		153		2,590		203,321		205,911	-
	Multifamily and farmland		137		185		322		11,219		11,541	185
	Total real estate loans		11,433		10,627		22,060		504,635		526,695	2,172
	Loans not secured by real estate
	Commercial loans		902		62		964		63,993		64,957	-
	Farm loans		-		-		-		22		22	-
	Consumer loans		180		25		205		9,549		9,754	1
	All other loans		-		-		-		15,633		15,633	-
	Total loans	$	12,515		10,714		23,229		593,832		617,061	2,173
	31-Dec-12
	(Dollars in thousands)
		Loans 30-89			Loans 90 or		Total		Total		Total	Accruing
		Days Past			More Days		Past Due		Current		Loans	Loans 90 or
		Due			Past Due		Loans		Loans			More Days
												Past Due
	Real estate loans
	Construction and land development	$	1,280		6,858		8,138		65,038		73,176	-
	Single-family residential		4,316		1,548		5,864		189,139		195,003	-
	Single-family residential -
	Banco de la Gente stated income		11,077		3,659		14,736		37,283		52,019	2,378
	Commercial		1,720		1,170		2,890		197,743		200,633	-
	Multifamily and farmland		7		-		7		8,944		8,951	-
	Total real estate loans		18,400		13,235		31,635		498,147		529,782	2,378
	Loans not secured by real estate
	Commercial loans		888		66		954		63,341		64,295	23
	Farm loans		-		-		-		11		11	-
	Consumer loans		250		10		260		9,888		10,148	2
	All other loans		-		-		-		15,738		15,738	-
	Total loans	$	19,538		13,311		32,849		587,125		619,974	2,403
Non-accrual loans	'
	(Dollars in thousands)
		30-Sep-13			31-Dec-12
	Real estate loans
	Construction and land development	$	6,993		9,253
	Single-family residential		3,284		2,491
	Single-family residential -
	Banco de la Gente stated income		1,748		2,232
	Commercial		1,969		3,263
	Total real estate loans		13,994		17,239
	Loans not secured by real estate
	Commercial loans		112		344
	Consumer loans		38		47
	Total	$	14,144		17,630
Impaired loans	'
	30-Sep-13
	(Dollars in thousands)
												Average Outstanding Impaired Loans
		Unpaid Contractual Principal Balance			Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment		Related Allowance	Three		Three	Nine		Nine
									in Impaired Loans			Months		Months	Months		Months
												Ended September		Ended September	Ended September		Ended September
												30, 2012		30, 2013	30, 2012		30, 2013
	Real estate loans
	Construction and land development	$	10,399		6,705		923		7,628		61	12,318		7,902	13,806		8,954
	Single-family residential		8,705		1,228		6,828		8,056		161	7,320		7,965	7,868		8,404
	Single-family residential -
	Banco de la Gente stated income		21,651		-		20,775		20,775		1,259	21,038		20,780	20,752		20,904
	Commercial		4,063		3,100		556		3,656		8	6,317		3,753	5,565		4,297
	Multifamily and farmland		185		-		185		185		3	200		185	201		188
	Total impaired real estate loans		45,003		11,033		29,267		40,300		1,492	47,193		40,585	48,192		42,747
	Loans not secured by real estate
	Commercial loans		643		-		628		628		11	1,186		701	1,187		816
	Consumer loans		317		272		43		315		1	23		316	38		185
	Total impaired loans	$	45,963		11,305		29,938		41,243		1,504	48,402		41,602	49,417		43,748
	31-Dec-12
	(Dollars in thousands)
		Unpaid Contractual Principal			Recorded Investment		Recorded Investment		Recorded Investment		Related	Average Outstanding Impaired
		Balance			With No Allowance		With		in Impaired		Allowance	Loans
							Allowance		Loans
	Real estate loans
	Construction and land development	$	17,738		11,795		680		12,475		61	12,810
	Single-family residential		9,099		766		7,799		8,565		177	7,590
	Single-family residential -
	Banco de la Gente stated income		21,806		-		21,000		21,000		1,278	21,158
	Commercial		5,830		4,569		467		5,036		6	5,433
	Multifamily and farmland		193		-		193		193		1	200
	Total impaired real estate loans		54,666		17,130		30,139		47,269		1,523	47,191
	Loans not secured by real estate
	Commercial loans		983		347		592		939		12	1,125
	Consumer loans		68		-		66		66		1	41
	Total impaired loans	$	55,717		17,477		30,797		48,274		1,536	48,357
Changes in the allowance for loan losses	'
	(Dollars in thousands)
		Real Estate Loans
		Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer and All Other		Unallocated	Total
					Family Residential		Family Residential - Banco de la Gente				Farmland
							Stated Income
	Nine months ended September 30, 2013
	Allowance for loan losses:
	Beginning balance	$	4,399		3,231		1,998		2,049		28	1,088		-	245		1,385	14,423
	Charge-offs		(732	)	(1,204	)	(252	)	(327	)	-	(483	)	-	(485	)	-	(3,483	)
	Recoveries		374		75		101		50		-	39		-	111		-	750
	Provision		99		864		67		240		8	140		-	379		367	2,164
	Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
	Three months ended September 30, 2013
	Allowance for loan losses:
	Beginning balance	$	4,725		3,304		1,924		1,858		34	822		-	229		1,133	14,029
	Charge-offs		(17	)	(569	)	(28	)	(51	)	-	(101	)	-	(204	)	-	(970	)
	Recoveries		348		31		31		-		-	14		-	34		-	458
	Provision		(916	)	200		(13	)	205		2	49		-	191		619	337
	Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
	Allowance for loan losses September 30, 2013:
	Ending balance: individually
	evaluated for impairment	$	1		60		1,233		-		-	-		-	-		-	1,294
	Ending balance: collectively
	evaluated for impairment		4,139		2,906		681		2,012		36	784		-	250		1,752	12,560
	Ending balance	$	4,140		2,966		1,914		2,012		36	784		-	250		1,752	13,854
	Loans September 30, 2013:
	Ending balance	$	67,870		191,338		50,035		205,911		11,541	64,957		22	25,387		-	617,061
	Ending balance: individually
	evaluated for impairment	$	6,790		3,079		19,803		3,100		-	-		-	272		-	33,044
	Ending balance: collectively
	evaluated for impairment	$	61,080		188,259		30,232		202,811		11,541	64,957		22	25,115		-	584,017
	(Dollars in thousands)
		Real Estate Loans
		Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer and All		Unallocated	Total
					Family Residential		Family Residential - Banco de la Gente				Farmland				Other
							Stated Income
	Nine months ended September 30, 2012
	Allowance for loan losses:
	Beginning balance	$	7,182		3,253		2,104		1,731		13	1,029		-	255		1,037	16,604
	Charge-offs		(3,045	)	(666	)	(483	)	(547	)	-	(498	)	-	(403	)	-	(5,642	)
	Recoveries		522		71		-		374		-	95		-	115		-	1,177
	Provision		1,733		367		450		(21	)	-	(18	)	-	222		1,679	4,412
	Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
	Three months ended September 30, 2012
	Allowance for loan losses:
	Beginning balance	$	7,645		2,902		2,224		1,516		13	629		-	191		1,520	16,640
	Charge-offs		(663	)	(176	)	(112	)	(24	)	-	(156	)	-	(135	)	-	(1,266	)
	Recoveries		304		2		-		-		-	84		-	26		-	416
	Provision		(894	)	297		(41	)	45		-	51		-	107		1,196	761
	Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
	Allowance for loan losses September 30, 2012:
	Ending balance: individually
	evaluated for impairment	$	1,527		376		1,261		114		-	-		-	-		-	3,278
	Ending balance: collectively
	evaluated for impairment		4,865		2,649		810		1,423		13	608		-	189		2,716	13,273
	Ending balance	$	6,392		3,025		2,071		1,537		13	608		-	189		2,716	16,551
	Loans September 30, 2012:
	Ending balance	$	80,733		197,043		52,124		203,603		4,964	60,358		12	26,945		-	625,782
	Ending balance: individually
	evaluated for impairment	$	19,734		3,716		20,054		6,798		-	346		-	-		-	50,648
	Ending balance: collectively
	evaluated for impairment	$	60,999		193,327		32,070		196,805		4,964	60,012		12	26,945		-	575,134
Credit risk profile of each loan type based on internally assigned risk grade	'
	30-Sep-13
	(Dollars in thousands)
		Real Estate Loans
		Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer		All Other	Total
					Family Residential		Family Residential - Banco de la Gente				Farmland
							Stated Income
	1- Excellent Quality	$	8		18,693		-		-		-	361		-	1,171		-	20,233
	2- High Quality		5,868		57,682		-		37,940		286	6,755		-	3,725		2,147	114,403
	3- Good Quality		26,814		69,013		23,193		119,080		8,019	44,285		22	4,041		11,125	305,592
	4- Management Attention		14,666		32,766		9,528		39,925		506	12,408		-	431		2,361	112,591
	5- Watch		9,629		7,652		7,384		4,564		2,545	401		-	32		-	32,207
	6- Substandard		10,885		5,532		9,930		4,402		185	747		-	351		-	32,032
	7- Doubtful		-		-		-		-		-	-		-	-		-	-
	8- Loss		-		-		-		-		-	-		-	3		-	3
	Total	$	67,870		191,338		50,035		205,911		11,541	64,957		22	9,754		15,633	617,061
	31-Dec-12
	(Dollars in thousands)
		Real Estate Loans
		Construction and Land Development			Single-		Single-		Commercial		Multifamily and	Commercial		Farm	Consumer		All Other	Total
					Family Residential		Family Residential - Banco de la Gente				Farmland
							Stated Income
	1- Excellent Quality	$	11		24,662		-		-		-	672		-	1,239		-	26,584
	2- High Quality		4,947		56,829		-		27,511		32	9,260		-	4,122		2,317	105,018
	3- Good Quality		24,952		62,018		24,724		114,001		4,975	40,814		11	4,186		13,416	289,097
	4- Management Attention		18,891		35,727		11,366		47,603		3,039	11,844		-	392		5	128,867
	5- Watch		9,580		9,504		3,597		6,911		712	976		-	134		-	31,414
	6- Substandard		14,795		6,263		12,332		4,607		193	729		-	70		-	38,989
	7- Low Substandard		-		-		-		-		-	-		-	-		-	-
	8- Doubtful		-		-		-		-		-	-		-	-		-	-
	9- Loss		-		-		-		-		-	-		-	5		-	5
	Total	$	73,176		195,003		52,019		200,633		8,951	64,295		11	10,148		15,738	619,974
Analysis of TDR loans by loan type	'
	The following table presents an analysis of TDR loans by loan type as of September 30, 2013:
	30-Sep-13
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	14		$	10,098		6,750
	Single-family residential	22			1,367		1,978
	Single-family residential -
	Banco de la Gente stated income	68			7,630		6,263
	Commercial	6			2,236		1,816
	Multifamily and farmland	1			322		185
	Total real estate TDR loans	111			21,653		16,992
	Loans not secured by real estate
	Commercial loans	8			242		120
	Consumer loans	1			2		-
	Total TDR loans	120		$	21,897		17,112
	The Bank did not enter into any new TDR loan modifications during the three months ended September 30, 2013.  The following table presents an analysis of loan modifications during the nine months ended September 30, 2013:
	Nine months ended September 30, 2013
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	2		$	841		825
	Single-family residential -
	Banco de la Gente stated income	4		$	471		466
	Total real estate TDR loans	6			1,312		1,291
	Total TDR loans	6		$	1,312		1,291
	The following tables present an analysis of loan modifications during the three and nine months ended September 30, 2012:
	Three months ended September 30, 2012
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Single-family residential	2		$	177		176
	Single-family residential -
	Banco de la Gente stated income	3		$	276		275
	Total real estate TDR loans	5			453		451
	Total TDR loans	5		$	453		451
	Nine months ended September 30, 2012
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Single-family residential	3		$	302		301
	Single-family residential -
	Banco de la Gente stated income	18		$	1,862		1,847
	Total real estate TDR loans	21			2,164		2,148
	Loans not secured by real estate
	Commercial loans	1			14		14
	Total TDR loans	22		$	2,178		2,162
	The following table presents an analysis of TDR loans by loan type as of December 31, 2012:
	31-Dec-12
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	11		$	10,465		6,633
	Single-family residential	33			3,014		4,084
	Single-family residential -
	Banco de la Gente stated income	122			13,459		12,170
	Commercial	4			1,457		682
	Multifamily and farmland	-			-		-
Total real estate TDR loans	170			28,395		23,569
Loans not secured by real estate
Commercial loans	9			511		368
Consumer loans	1			2		-
Total TDR loans	180		$	28,908		23,937

4_Net_Earnings_Per_Common_Shar1

4. Net Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share	'
	For the three months ended September 30, 2013
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	1,762	5,613,495	$	0.31
	Effect of dilutive securities:
	Stock options		-	15,180
	Diluted earnings per common share	$	1,762	5,628,675	$	0.31
	For the nine months ended September 30, 2013
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	4,840	5,613,495	$	0.86
	Effect of dilutive securities:
	Stock options		-	8,554
	Diluted earnings per common share	$	4,840	5,622,049	$	0.86
	For the three months ended September 30, 2012
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	1,256	5,559,016	$	0.23
	Effect of dilutive securities:
	Stock options		-	2,570
	Diluted earnings per common share	$	1,256	5,561,586	$	0.23
	For the nine months ended September 30, 2012
		Net Earnings Available to Common Shareholders (Dollars in thousands)		Common Shares	Per Share Amount
	Basic earnings per common share	$	3,727	5,549,148	$	0.67
	Effect of dilutive securities:
	Stock options		-	2,168
	Diluted earnings per common share	$	3,727	5,551,316	$	0.67

6_Fair_Value_of_Financial_Inst

6. Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Available for sale securities measured at fair value on a recurring basis	'
	(Dollars in thousands)
		30-Sep-13
		Fair Value		Level 1	Level 2	Level 3
		Measurements		Valuation	Valuation	Valuation
	Mortgage-backed securities	$	127,473	-	127,473	-
	U.S. Government
	sponsored enterprises	$	22,734	-	22,734	-
	State and political subdivisions	$	145,128	-	145,128	-
	Corporate bonds	$	3,487	-	3,487	-
	Trust preferred securities	$	1,250	-	-	1,250
	Equity securities	$	1,716	1,716	-	-
	(Dollars in thousands)
		31-Dec-12
		Fair Value		Level 1	Level 2	Level 3
		Measurements		Valuation	Valuation	Valuation
	Mortgage-backed securities	$	148,024	-	148,024	-
	U.S. Government
	sponsored enterprises	$	18,837	-	18,837	-
	State and political subdivisions	$	125,658	-	125,658	-
	Corporate bonds	$	2,586	-	2,586	-
	Trust preferred securities	$	1,250	-	-	1,250
	Equity securities	$	1,468	1,468	-	-
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs	'
	(Dollars in thousands)
		Investment Securities Available for Sale
		Level 3 Valuation
	Balance, beginning of period	$	1,250
	Change in book value		-
	Change in gain/(loss) realized and unrealized		-
	Purchases/(sales)		-
	Transfers in and/or (out) of Level 3		-
	Balance, end of period	$	1,250
	Change in unrealized gain/(loss) for assets still held in Level 3	$	-
Fair value measurements for impaired loans and other real estate on a non-recurring basis	'
	(Dollars in thousands)
		Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for the
		Measurements		Valuation	Valuation	Valuation	Nine Months Ended
		30-Sep-13					30-Sep-13
	Impaired loans	$	39,739	-	-	39,739	(2,521	)
	Other real estate	$	2,751	-	-	2,751	(284	)
	(Dollars in thousands)
		Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for the
		Measurements		Valuation	Valuation	Valuation	Year Ended
		31-Dec-12					31-Dec-12
	Impaired loans	$	46,738	-	-	46,738	(6,875	)
	Other real estate	$	6,254	-	-	6,254	(1,136	)
Carrying amount and estimated fair value of the Company's financial instruments	'
	(Dollars in thousands)
				Fair Value Measurements at September 30, 2013
		Carrying		Level 1	Level 2	Level 3	Total
		Amount
	Assets:
	Cash and cash equivalents	$	80,950	80,950	-	-	80,950
	Investment securities available for sale		301,788	1,716	298,822	1,250	301,788
	Other investments		5,215	-	-	5,215	5,215
	Mortgage loans held for sale		2,201	-	-	2,201	2,201
	Loans, net		603,207	-	-	594,017	594,017
	Cash surrender value of life insurance		13,597	-	13,597	-	13,597
	Liabilities:
	Deposits	$	798,291	-	797,400	-	797,400
	Securities sold under agreements
	to repurchase		48,174	-	48,174	-	48,174
	FHLB borrowings		70,000	-	71,197	-	71,197
	Junior subordinated debentures		20,619	-	20,619	-	20,619
	(Dollars in thousands)
				Fair Value Measurements at December 31, 2012
		Carrying		Level 1	Level 2	Level 3	Total
		Amount
	Assets:
	Cash and cash equivalents	$	48,843	48,843	-	-	48,843
	Investment securities available for sale		297,823	1,468	295,105	1,250	297,823
	Other investments		5,599	-	-	5,599	5,599
	Mortgage loans held for sale		6,922	-	-	6,922	6,922
	Loans, net		605,551	-	-	599,996	599,996
	Cash surrender value of life insurance		13,273	-	13,273	-	13,273
	Liabilities:
	Deposits	$	781,525	-	780,662	-	780,662
	Securities sold under agreements
	to repurchase		34,578	-	34,578	-	34,578
	FHLB borrowings		70,000	-	76,375	-	76,375
	Junior subordinated debentures		20,619	-	20,619	-	20,619

2_Investment_Securities_Detail

2. Investment Securities (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Investment securities available for sale	'	'
Estimated Fair Value	$301,788	$297,823
Mortgage-backed securities	'	'
Investment securities available for sale	'	'
Amortized Cost	127,153	146,755
Gross Unrealized Gains	1,017	1,875
Gross Unrealized Losses	697	606
Estimated Fair Value	127,473	148,024
U.S. Government sponsored enterprises	'	'
Investment securities available for sale	'	'
Amortized Cost	22,557	18,714
Gross Unrealized Gains	186	203
Gross Unrealized Losses	9	80
Estimated Fair Value	22,734	18,837
State and political subdivisions	'	'
Investment securities available for sale	'	'
Amortized Cost	147,847	118,591
Gross Unrealized Gains	2,313	7,171
Gross Unrealized Losses	5,032	104
Estimated Fair Value	145,128	125,658
Corporate bonds	'	'
Investment securities available for sale	'	'
Amortized Cost	3,535	2,571
Gross Unrealized Gains	15	19
Gross Unrealized Losses	63	4
Estimated Fair Value	3,487	2,586
Trust preferred securities	'	'
Investment securities available for sale	'	'
Amortized Cost	1,250	1,250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	1,250	1,250
Equity securities	'	'
Investment securities available for sale	'	'
Amortized Cost	748	748
Gross Unrealized Gains	968	720
Gross Unrealized Losses	0	0
Estimated Fair Value	1,716	1,468
Total	'	'
Investment securities available for sale	'	'
Amortized Cost	303,090	288,629
Gross Unrealized Gains	4,499	9,988
Gross Unrealized Losses	5,801	794
Estimated Fair Value	$301,788	$297,823

2_Investment_securities_Contin

2. Investment securities, Continuous Unrealized Loss Position (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	$124,554	$62,053
Less than 12 Months, Unrealized Losses	5,700	656
12 Months or More, Fair Value	10,173	12,913
12 Months or More, Unrealized Losses	101	138
Total, Fair Value	134,727	74,966
Total, Unrealized Losses	5,801	794
Mortgage-backed securities	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	45,774	48,126
Less than 12 Months, Unrealized Losses	596	468
12 Months or More, Fair Value	10,173	12,913
12 Months or More, Unrealized Losses	101	138
Total, Fair Value	55,947	61,039
Total, Unrealized Losses	697	606
U.S. Government sponsored enterprises	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	1,078	3,402
Less than 12 Months, Unrealized Losses	9	80
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	1,078	3,402
Total, Unrealized Losses	9	80
State and political subdivisions	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	76,195	9,490
Less than 12 Months, Unrealized Losses	5,032	104
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	76,195	9,490
Total, Unrealized Losses	5,032	104
Corporate bonds	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	1,507	1,035
Less than 12 Months, Unrealized Losses	63	4
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	1,507	1,035
Total, Unrealized Losses	$63	$4

2_Investment_securities_Contra

2. Investment securities, Contractual Maturity (Details) (USD $)	Sep. 30, 2013
Amortized Cost	'
Due within one year	$2,637
Due from one to five years	27,480
Due from five to ten years	118,720
Due after ten years	26,352
Mortgage-backed securities	127,153
Equity securities	748
Total	303,090
Estimated Fair Value	'
Due within one year	2,670
Due from one to five years	27,789
Due from five to ten years	116,014
Due after ten years	26,126
Mortgage-backed securities	127,473
Equity securities	1,716
Total	$301,788

2_Investment_Securities_Detail1

2. Investment Securities (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Investment Securities Details Narrative	'	'	'
Unrealized losses in the investment securites portfolio relating to debt securities	$5,800	'	'
Proceeds from sales of investment securities available for sale	17,463	47,062	'
Gains on sales of available-to-sale securities	738	1,300	'
Loss on sales of available-to-sale securities	124	103	'
Securities pledged to secure public deposits	$82,700	'	$73,900

3_Loans_Details

3. Loans (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Major classifications	'	'	'	'	'	'
Total Loans	$617,061	'	$619,974	$625,782	'	'
Less allowance for loan losses	13,854	14,029	14,423	16,551	16,640	16,604
Net loans	603,207	'	605,551	'	'	'
Construction and land development	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	67,870	'	73,176	80,733	'	'
Less allowance for loan losses	4,140	4,725	4,399	6,392	7,645	7,182
Single-family residential	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	191,338	'	195,003	197,043	'	'
Less allowance for loan losses	2,966	3,304	3,231	3,025	2,902	3,253
Single-family residential - Banco de la Gente stated income	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	50,035	'	52,019	52,124	'	'
Less allowance for loan losses	1,914	1,924	1,998	2,071	2,224	2,104
Commercial Real Estate	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	205,911	'	200,633	203,603	'	'
Less allowance for loan losses	2,012	1,858	2,049	1,537	1,516	1,731
Multifamily and Farmland	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	11,541	'	8,951	4,964	'	'
Less allowance for loan losses	36	34	28	13	13	13
Total real estate loans	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	526,695	'	529,782	'	'	'
Commercial loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	64,957	'	64,295	60,358	'	'
Less allowance for loan losses	784	822	1,088	608	629	1,029
Farm loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	22	'	11	12	'	'
Less allowance for loan losses	0	0	0	'	0	0
Consumer loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	9,754	'	10,148	'	'	'
All other loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total Loans	$15,633	'	$15,738	'	'	'

3_Loans_Past_Due_Details

3. Loans, Past Due (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Past due loans	'	'	'
Loans 30-89 Days Past Due	$12,515	$19,538	'
Loans 90 or More Days Past Due	10,714	13,311	'
Total Past Due Loans	23,229	32,849	'
Total Current Loans	593,832	587,125	'
Total loans	617,061	619,974	625,782
Accruing Loans 90 or More Days Past Due	2,173	2,403	'
Construction and land development	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	229	1,280	'
Loans 90 or More Days Past Due	5,752	6,858	'
Total Past Due Loans	5,981	8,138	'
Total Current Loans	61,889	65,038	'
Total loans	67,870	73,176	'
Accruing Loans 90 or More Days Past Due	0	0	'
Single-family residential	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	4,242	4,316	'
Loans 90 or More Days Past Due	1,773	1,548	'
Total Past Due Loans	6,015	5,864	'
Total Current Loans	185,323	189,139	'
Total loans	191,338	195,003	'
Accruing Loans 90 or More Days Past Due	0	0	'
Single-family residential - Banco de la Gente stated income	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	4,388	11,077	'
Loans 90 or More Days Past Due	2,764	3,659	'
Total Past Due Loans	7,152	14,736	'
Total Current Loans	42,883	37,283	'
Total loans	50,035	52,019	'
Accruing Loans 90 or More Days Past Due	1,987	2,378	'
Commercial Real Estate	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	2,437	1,720	'
Loans 90 or More Days Past Due	153	1,170	'
Total Past Due Loans	2,590	2,890	'
Total Current Loans	203,321	197,743	'
Total loans	205,911	200,633	'
Accruing Loans 90 or More Days Past Due	0	0	'
Multifamily and Farmland	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	137	7	'
Loans 90 or More Days Past Due	185	0	'
Total Past Due Loans	322	7	'
Total Current Loans	11,219	8,944	'
Total loans	11,541	8,951	'
Accruing Loans 90 or More Days Past Due	185	0	'
Total real estate loans	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	11,433	18,400	'
Loans 90 or More Days Past Due	10,627	13,235	'
Total Past Due Loans	22,060	31,635	'
Total Current Loans	504,635	498,147	'
Total loans	526,695	529,782	'
Accruing Loans 90 or More Days Past Due	2,172	2,378	'
Commercial loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	902	888	'
Loans 90 or More Days Past Due	62	66	'
Total Past Due Loans	964	954	'
Total Current Loans	63,993	63,341	'
Total loans	64,957	64,295	'
Accruing Loans 90 or More Days Past Due	0	23	'
Farm loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	0	0	'
Loans 90 or More Days Past Due	0	0	'
Total Past Due Loans	0	0	'
Total Current Loans	22	11	'
Total loans	22	11	'
Accruing Loans 90 or More Days Past Due	0	0	'
Consumer loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	180	250	'
Loans 90 or More Days Past Due	25	10	'
Total Past Due Loans	205	260	'
Total Current Loans	9,549	9,888	'
Total loans	9,754	10,148	'
Accruing Loans 90 or More Days Past Due	1	2	'
All other loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	0	0	'
Loans 90 or More Days Past Due	0	0	'
Total Past Due Loans	0	0	'
Total Current Loans	15,633	15,738	'
Total loans	15,633	15,738	'
Accruing Loans 90 or More Days Past Due	$0	$0	'

3_Loans_Nonaccrual_Details

3. Loans, Nonaccrual (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Non-accrual loans	'	'
Non-accrual loans	$14,144	$17,630
Construction and land development	'	'
Non-accrual loans	'	'
Non-accrual loans	6,993	9,253
Single-family residential	'	'
Non-accrual loans	'	'
Non-accrual loans	3,284	2,491
Single-family residential - Banco de la Gente stated income	'	'
Non-accrual loans	'	'
Non-accrual loans	1,748	2,232
Commercial Real Estate	'	'
Non-accrual loans	'	'
Non-accrual loans	1,969	3,263
Total real estate loans	'	'
Non-accrual loans	'	'
Non-accrual loans	13,994	17,239
Commercial loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	112	344
Consumer loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	$38	$47

3_Loans_Impaired_Details

3. Loans, Impaired (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	$45,963	'	$45,963	'	$55,717
Recorded Investment With No Allowance	11,305	'	11,305	'	17,477
Recorded Investment With Allowance	29,938	'	29,938	'	30,797
Recorded Investment in Impaired Loans	41,243	'	41,243	'	48,274
Related Allowance	1,504	'	1,504	'	1,536
Average Outstanding Impaired Loans	41,602	48,402	43,748	49,417	48,357
Construction and land development	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	10,399	'	10,399	'	17,738
Recorded Investment With No Allowance	6,705	'	6,705	'	11,795
Recorded Investment With Allowance	923	'	923	'	680
Recorded Investment in Impaired Loans	7,628	'	7,628	'	12,475
Related Allowance	61	'	61	'	61
Average Outstanding Impaired Loans	7,902	12,318	8,954	13,806	12,810
Single-family residential	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	8,705	'	8,705	'	9,099
Recorded Investment With No Allowance	1,228	'	1,228	'	766
Recorded Investment With Allowance	6,828	'	6,828	'	7,799
Recorded Investment in Impaired Loans	8,056	'	8,056	'	8,565
Related Allowance	161	'	161	'	177
Average Outstanding Impaired Loans	7,965	7,320	8,404	7,868	7,590
Single-family residential - Banco de la Gente stated income	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	21,651	'	21,651	'	21,806
Recorded Investment With No Allowance	0	'	0	'	0
Recorded Investment With Allowance	20,775	'	20,775	'	21,000
Recorded Investment in Impaired Loans	20,775	'	20,775	'	21,000
Related Allowance	1,259	'	1,259	'	1,278
Average Outstanding Impaired Loans	20,780	21,038	20,904	20,752	21,158
Commercial Real Estate	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	4,063	'	4,063	'	5,830
Recorded Investment With No Allowance	3,100	'	3,100	'	4,569
Recorded Investment With Allowance	556	'	556	'	467
Recorded Investment in Impaired Loans	3,656	'	3,656	'	5,036
Related Allowance	8	'	8	'	6
Average Outstanding Impaired Loans	3,753	6,317	4,297	5,565	5,433
Multifamily and Farmland	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	185	'	185	'	193
Recorded Investment With No Allowance	0	'	0	'	0
Recorded Investment With Allowance	185	'	185	'	193
Recorded Investment in Impaired Loans	185	'	185	'	193
Related Allowance	3	'	3	'	1
Average Outstanding Impaired Loans	185	200	188	201	200
Total real estate loans	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	45,003	'	45,003	'	54,666
Recorded Investment With No Allowance	11,033	'	11,033	'	17,130
Recorded Investment With Allowance	29,267	'	29,267	'	30,139
Recorded Investment in Impaired Loans	40,300	'	40,300	'	47,269
Related Allowance	1,492	'	1,492	'	1,523
Average Outstanding Impaired Loans	40,585	47,193	42,747	48,192	47,191
Commercial loans (not secured by real estate)	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	643	'	643	'	983
Recorded Investment With No Allowance	0	'	0	'	347
Recorded Investment With Allowance	628	'	628	'	592
Recorded Investment in Impaired Loans	628	'	628	'	939
Related Allowance	11	'	11	'	12
Average Outstanding Impaired Loans	701	1,186	816	1,187	1,125
Consumer loans (not secured by real estate)	'	'	'	'	'
Impaired loans	'	'	'	'	'
Unpaid Contractual Principal Balance	317	'	317	'	68
Recorded Investment With No Allowance	272	'	272	'	0
Recorded Investment With Allowance	43	'	43	'	66
Recorded Investment in Impaired Loans	315	'	315	'	66
Related Allowance	1	'	1	'	1
Average Outstanding Impaired Loans	$316	$23	$185	$38	$41

3_Loans_Allowance_for_Loan_Los

3. Loans, Allowance for Loan Losses (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Allowance for loan losses	'	'	'	'	'
Beginning balance	$14,029	$16,640	$14,423	$16,604	'
Charge-offs	-970	-1,266	-3,483	-5,642	'
Recoveries	458	416	750	1,177	'
Provision	337	761	2,164	4,412	'
Ending balance	13,854	16,551	13,854	16,551	'
Ending balance: individually evaluated for impairments	1,294	3,278	1,294	3,278	'
Ending balance: collectively evaluated for impairments	12,560	13,273	12,560	13,273	'
Ending balance	13,854	16,551	13,854	16,551	'
Loans	'	'	'	'	'
Ending balance	617,061	625,782	617,061	625,782	619,974
Ending balance: individually evaluated for impairment	33,044	50,648	33,044	50,648	'
Ending balance: collectively evaluated for impairment	584,017	575,134	584,017	575,134	'
Construction and land development	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	4,725	7,645	4,399	7,182	'
Charge-offs	-17	-663	-732	-3,045	'
Recoveries	348	304	374	522	'
Provision	-916	-894	99	1,733	'
Ending balance	4,140	6,392	4,140	6,392	'
Ending balance: individually evaluated for impairments	1	1,527	1	1,527	'
Ending balance: collectively evaluated for impairments	4,139	4,865	4,139	4,865	'
Ending balance	4,140	6,392	4,140	6,392	'
Loans	'	'	'	'	'
Ending balance	67,870	80,733	67,870	80,733	73,176
Ending balance: individually evaluated for impairment	6,790	19,734	6,790	19,734	'
Ending balance: collectively evaluated for impairment	61,080	60,999	61,080	60,999	'
Single-family residential	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	3,304	2,902	3,231	3,253	'
Charge-offs	-569	-176	-1,204	-666	'
Recoveries	31	2	75	71	'
Provision	200	297	864	367	'
Ending balance	2,966	3,025	2,966	3,025	'
Ending balance: individually evaluated for impairments	60	376	60	376	'
Ending balance: collectively evaluated for impairments	2,906	2,649	2,906	2,649	'
Ending balance	2,966	3,025	2,966	3,025	'
Loans	'	'	'	'	'
Ending balance	191,338	197,043	191,338	197,043	195,003
Ending balance: individually evaluated for impairment	3,079	3,716	3,079	3,716	'
Ending balance: collectively evaluated for impairment	188,259	193,327	188,259	193,327	'
Single-family residential - Banco de la Gente stated income	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,924	2,224	1,998	2,104	'
Charge-offs	-28	-112	-252	-483	'
Recoveries	31	0	101	0	'
Provision	-13	-41	67	450	'
Ending balance	1,914	2,071	1,914	2,071	'
Ending balance: individually evaluated for impairments	1,233	1,261	1,233	1,261	'
Ending balance: collectively evaluated for impairments	681	810	681	810	'
Ending balance	1,914	2,071	1,914	2,071	'
Loans	'	'	'	'	'
Ending balance	50,035	52,124	50,035	52,124	52,019
Ending balance: individually evaluated for impairment	19,803	20,054	19,803	20,054	'
Ending balance: collectively evaluated for impairment	30,232	32,070	30,232	32,070	'
Commercial Real Estate	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,858	1,516	2,049	1,731	'
Charge-offs	-51	-24	-327	-547	'
Recoveries	0	0	50	374	'
Provision	205	45	240	-21	'
Ending balance	2,012	1,537	2,012	1,537	'
Ending balance: individually evaluated for impairments	0	114	0	114	'
Ending balance: collectively evaluated for impairments	2,012	1,423	2,012	1,423	'
Ending balance	2,012	1,537	2,012	1,537	'
Loans	'	'	'	'	'
Ending balance	205,911	203,603	205,911	203,603	200,633
Ending balance: individually evaluated for impairment	3,100	6,798	3,100	6,798	'
Ending balance: collectively evaluated for impairment	202,811	196,805	202,811	196,805	'
Multifamily and Farmland	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	34	13	28	13	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	2	0	8	0	'
Ending balance	36	13	36	13	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	36	13	36	13	'
Ending balance	36	13	36	13	'
Loans	'	'	'	'	'
Ending balance	11,541	4,964	11,541	4,964	8,951
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	11,541	4,964	11,541	4,964	'
Commercial loans (not secured by real estate)	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	822	629	1,088	1,029	'
Charge-offs	-101	-156	-483	-498	'
Recoveries	14	84	39	95	'
Provision	49	51	140	-18	'
Ending balance	784	608	784	608	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	784	608	784	608	'
Ending balance	784	608	784	608	'
Loans	'	'	'	'	'
Ending balance	64,957	60,358	64,957	60,358	64,295
Ending balance: individually evaluated for impairment	0	346	0	346	'
Ending balance: collectively evaluated for impairment	64,957	60,012	64,957	60,012	'
Farm loans (not secured by real estate)	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	0	0	0	0	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	0	0	0	0	'
Ending balance	0	'	0	'	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	0	0	0	0	'
Ending balance	0	0	0	0	'
Loans	'	'	'	'	'
Ending balance	22	12	22	12	11
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	22	12	22	12	'
Consumer And All Other Loans	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	229	191	245	255	'
Charge-offs	-204	-135	-485	-403	'
Recoveries	34	26	111	115	'
Provision	191	107	379	222	'
Ending balance	250	189	250	189	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	250	189	250	189	'
Ending balance	250	189	250	189	'
Loans	'	'	'	'	'
Ending balance	25,387	26,945	25,387	26,945	'
Ending balance: individually evaluated for impairment	272	0	272	0	'
Ending balance: collectively evaluated for impairment	25,115	26,945	25,115	26,945	'
Unallocated	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,133	1,520	1,385	1,037	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	619	1,196	367	1,679	'
Ending balance	1,752	2,716	1,752	2,716	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	1,752	2,716	1,752	2,716	'
Ending balance	1,752	2,716	1,752	2,716	'
Loans	'	'	'	'	'
Ending balance	0	0	0	0	'
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	$0	$0	$0	$0	'

3_Loans_Credit_Risk_Details

3. Loans, Credit Risk (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Credit risk profile	'	'	'
Total Loans	$617,061	$619,974	$625,782
Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	20,233	26,584	'
High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	114,403	105,018	'
Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	305,592	289,097	'
Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	112,591	128,867	'
Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	32,207	31,414	'
Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	32,032	38,989	'
Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	3	5	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	67,870	73,176	'
Single-family residential	'	'	'
Credit risk profile	'	'	'
Total Loans	191,338	195,003	'
Single-family residential - Banco de la Gente stated income	'	'	'
Credit risk profile	'	'	'
Total Loans	50,035	52,019	'
Commercial Real Estate	'	'	'
Credit risk profile	'	'	'
Total Loans	205,911	200,633	'
Multifamily and Farmland	'	'	'
Credit risk profile	'	'	'
Total Loans	11,541	8,951	'
Commercial loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	64,957	64,295	'
Farm loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	22	11	'
Consumer loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	9,754	10,148	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	15,633	15,738	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	67,870	73,176	80,733
Construction and land development | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	8	11	'
Construction and land development | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	5,868	4,947	'
Construction and land development | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	26,814	24,952	'
Construction and land development | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	14,666	18,891	'
Construction and land development | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	9,629	9,580	'
Construction and land development | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	10,885	14,795	'
Construction and land development | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Construction and land development | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Construction and land development | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential	'	'	'
Credit risk profile	'	'	'
Total Loans	191,338	195,003	197,043
Single-family residential | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	18,693	24,662	'
Single-family residential | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	57,682	56,829	'
Single-family residential | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	69,013	62,018	'
Single-family residential | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	32,766	35,727	'
Single-family residential | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	7,652	9,504	'
Single-family residential | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	5,532	6,263	'
Single-family residential | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential - Banco de la Gente stated income	'	'	'
Credit risk profile	'	'	'
Total Loans	50,035	52,019	52,124
Single-family residential - Banco de la Gente stated income | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential - Banco de la Gente stated income | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential - Banco de la Gente stated income | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	23,193	24,724	'
Single-family residential - Banco de la Gente stated income | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	9,528	11,366	'
Single-family residential - Banco de la Gente stated income | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	7,384	3,597	'
Single-family residential - Banco de la Gente stated income | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	9,930	12,332	'
Single-family residential - Banco de la Gente stated income | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential - Banco de la Gente stated income | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Single-family residential - Banco de la Gente stated income | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial Real Estate	'	'	'
Credit risk profile	'	'	'
Total Loans	205,911	200,633	203,603
Commercial Real Estate | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial Real Estate | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	37,940	27,511	'
Commercial Real Estate | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	119,080	114,001	'
Commercial Real Estate | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	39,925	47,603	'
Commercial Real Estate | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	4,564	6,911	'
Commercial Real Estate | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	4,402	4,607	'
Commercial Real Estate | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial Real Estate | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial Real Estate | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland	'	'	'
Credit risk profile	'	'	'
Total Loans	11,541	8,951	4,964
Multifamily and Farmland | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	286	32	'
Multifamily and Farmland | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	8,019	4,975	'
Multifamily and Farmland | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	506	3,039	'
Multifamily and Farmland | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	2,545	712	'
Multifamily and Farmland | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	185	193	'
Multifamily and Farmland | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	64,957	64,295	60,358
Commercial loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	361	672	'
Commercial loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	6,755	9,260	'
Commercial loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	44,285	40,814	'
Commercial loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	12,408	11,844	'
Commercial loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	401	976	'
Commercial loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	747	729	'
Commercial loans (not secured by real estate) | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial loans (not secured by real estate) | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial loans (not secured by real estate) | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	22	11	12
Farm loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	22	11	'
Farm loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Farm loans (not secured by real estate) | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Consumer loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	9,754	10,148	'
Consumer loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	1,171	1,239	'
Consumer loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	3,725	4,122	'
Consumer loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	4,041	4,186	'
Consumer loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	431	392	'
Consumer loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	32	134	'
Consumer loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	351	70	'
Consumer loans (not secured by real estate) | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Consumer loans (not secured by real estate) | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Consumer loans (not secured by real estate) | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	3	5	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	15,633	15,738	'
All other loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
All other loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	2,147	2,317	'
All other loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	11,125	13,416	'
All other loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	2,361	5	'
All other loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
All other loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
All other loans (not secured by real estate) | Low Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
All other loans (not secured by real estate) | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
All other loans (not secured by real estate) | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	$0	$0	'

3_Loans_TDR_Details

3. Loans, TDR (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
TDR Loans	'	'
Number of Contracts	120	180
Pre-Modification Outstanding Recorded Investment	$21,897	$28,908
Post-Modification Outstanding Recorded Investment	17,112	23,937
Construction and land development	'	'
TDR Loans	'	'
Number of Contracts	14	11
Pre-Modification Outstanding Recorded Investment	10,098	10,465
Post-Modification Outstanding Recorded Investment	6,750	6,633
Single-family residential	'	'
TDR Loans	'	'
Number of Contracts	22	33
Pre-Modification Outstanding Recorded Investment	1,367	3,014
Post-Modification Outstanding Recorded Investment	1,978	4,084
Single-family residential - Banco de la Gente stated income	'	'
TDR Loans	'	'
Number of Contracts	68	122
Pre-Modification Outstanding Recorded Investment	7,630	13,459
Post-Modification Outstanding Recorded Investment	6,263	12,170
Commercial Real Estate	'	'
TDR Loans	'	'
Number of Contracts	6	4
Pre-Modification Outstanding Recorded Investment	2,236	1,457
Post-Modification Outstanding Recorded Investment	1,816	682
Multifamily and Farmland	'	'
TDR Loans	'	'
Number of Contracts	1	0
Pre-Modification Outstanding Recorded Investment	322	0
Post-Modification Outstanding Recorded Investment	185	0
Total real estate loans	'	'
TDR Loans	'	'
Number of Contracts	111	170
Pre-Modification Outstanding Recorded Investment	21,653	28,395
Post-Modification Outstanding Recorded Investment	16,992	23,569
Commercial loans (not secured by real estate)	'	'
TDR Loans	'	'
Number of Contracts	8	9
Pre-Modification Outstanding Recorded Investment	242	511
Post-Modification Outstanding Recorded Investment	120	368
Consumer loans (not secured by real estate)	'	'
TDR Loans	'	'
Number of Contracts	1	1
Pre-Modification Outstanding Recorded Investment	2	2
Post-Modification Outstanding Recorded Investment	$0	$0

3_Loans_TDR_Loan_Modifications

3. Loans, TDR Loan Modifications (Details) (USD $)	9 Months Ended	12 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012
			Construction and land developmentTDR loans	Single-family residential TDR	Single-family residential TDR	Single-family residential- Banco de la Gente stated income	Single-family residential- Banco de la Gente stated income	Single-family residential- Banco de la Gente stated income	Total real estate TDR loans	Total real estate TDR loans	Total real estate TDR loans	Commercial loans TDR (not secured by real estate)	Total TDR Loans	Total TDR Loans
TDR Loans	'	'	'	'	'	'	'	'	'	'	'	'	'	'
Number of Contracts	120	180	2	2	3	3	4	18	5	6	21	1	5	22
Pre-Modification Outstanding Recorded Investment	$21,897	$28,908	$841	$177	$302	$276	$471	$1,862	$453	$1,312	$2,164	$14	$453	$2,178
Post-Modification Outstanding Recorded Investment	$17,112	$23,937	$825	$176	$301	$275	$466	$1,847	$451	$1,291	$2,148	$14	$451	$2,162

3_Loans_Details_Narrative

3. Loans (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Loans Details Narrative	'	'	'	'	'
Percentage of construction and land development loans in Bank's loan portfolio	11.00%	'	11.00%	'	'
Percentage of single-family residential loans in Bank's loan portfolio	39.00%	'	39.00%	'	'
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio	8.00%	'	8.00%	'	'
Percentage of commercial real estate loans in Bank's loan portfolio	33.00%	'	33.00%	'	'
Percentage of commercial loans in Bank's loan portfolio	11.00%	'	11.00%	'	'
Accruing impaired loans	$27,100	$38,700	$27,100	$38,700	$30,600
Interest income recognized on accruing impaired loans	337	543	916	1,400	1,500
TDR loan amounts	'	'	17,112	'	23,937
Amount of performing TDR loans included	$251	'	$251	'	$2,000

4_Net_Earnings_Per_Common_Shar2

4. Net Earnings Per Common Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Earnings Available to Common Shareholders	'	'	'	'
Basic earnings	$1,762	$1,256	$4,840	$3,727
Effect of dilutive securities: Stock options	0	0	0	0
Diluted earnings	$1,762	$1,256	$4,840	$3,727
Common Shares	'	'	'	'
Basic earnings per common share (in shares)	5,613,495	5,559,016	5,613,495	5,549,148
Effect of dilutive securities: Stock options (in shares)	15,180	2,570	8,554	2,168
Diluted earnings per common share (in shares)	5,628,675	5,561,586	5,622,049	5,551,316
Per Share Amount	'	'	'	'
Basic earnings per common share (in dollars per share)	$0.31	$0.23	$0.86	$0.67
Diluted earnings per common share (in dollars per share)	$0.31	$0.23	$0.86	$0.67

5_StockBased_Compensation_Deta

5. Stock-Based Compensation (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Stock-Based Compensation Details Narrative	'	'
Unrecognized compensation cost	$550	'
Restricted stock expense	$104	$31

6_Fair_Value_Measurements_Leve

6. Fair Value Measurements, Level of Hierarchy (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Estimated Fair Value	$301,788	$297,823
Mortgage-backed securities	'	'
Estimated Fair Value	127,473	148,024
Level 1 valuation	0	0
Level 2 valuation	127,473	148,024
Level 3 valuation	0	0
U.S. Government sponsored enterprises	'	'
Estimated Fair Value	22,734	18,837
Level 1 valuation	0	0
Level 2 valuation	22,734	18,837
Level 3 valuation	0	0
State and political subdivisions	'	'
Estimated Fair Value	145,128	125,658
Level 1 valuation	0	0
Level 2 valuation	145,128	125,658
Level 3 valuation	0	0
Corporate bonds	'	'
Estimated Fair Value	3,487	2,586
Level 1 valuation	0	0
Level 2 valuation	3,487	2,586
Level 3 valuation	0	0
Trust preferred securities	'	'
Estimated Fair Value	1,250	1,250
Level 1 valuation	0	0
Level 2 valuation	0	0
Level 3 valuation	1,250	1,250
Equity securities	'	'
Estimated Fair Value	1,716	1,468
Level 1 valuation	1,716	1,468
Level 2 valuation	0	0
Level 3 valuation	$0	$0

6_Fair_Value_Measurements_Leve1

6. Fair Value Measurements, Level 3 Valuation (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Investment Securities Available for Sale Level 3 Valuation	'
Balance, beginning of period	$1,250
Change in book value	0
Change in gain/(loss) realized and unrealized	0
Purchases/(sales)	0
Transfers in and/or (out) of Level 3	0
Balance, end of period	1,250
Change in unrealized gain/(loss) for assets still held in Level 3	$0

6_Fair_Value_Measurements_Loan

6. Fair Value Measurements, Loans Impaired (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Impaired loans	$39,739	$46,738
Other real estate	2,751	6,254
Level 1	'	'
Impaired loans	0	0
Other real estate	0	0
Level 2	'	'
Impaired loans	0	0
Other real estate	0	0
Level 3	'	'
Impaired loans	39,739	46,738
Other real estate	2,751	6,254
Total gains losses for the year ended	'	'
Impaired loans	-2,521	-6,875
Other real estate	($284)	($1,136)

6_Fair_Value_of_Financial_Inst1

6. Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'	'
Investment securities available for sale	$301,788	$297,823
Carrying Amount	'	'
Assets:	'	'
Cash and cash equivalents	80,950	48,843
Investment securities available for sale	301,788	297,823
Other investments	5,215	5,599
Mortgage loans held for sale	2,201	6,922
Loans, net	603,207	605,551
Cash surrender value of life insurance	13,597	13,273
Liabilities:	'	'
Deposits	798,291	781,525
Securities sold under agreements to repurchase	48,174	34,578
FHLB borrowings	70,000	70,000
Junior subordinated debentures	20,619	20,619
Level 1	'	'
Assets:	'	'
Cash and cash equivalents	80,950	48,843
Investment securities available for sale	1,716	1,468
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	0	0
Liabilities:	'	'
Deposits	0	0
Securities sold under agreements to repurchase	0	0
FHLB borrowings	0	0
Junior subordinated debentures	0	0
Level 2	'	'
Assets:	'	'
Cash and cash equivalents	0	0
Investment securities available for sale	298,822	295,105
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	13,597	13,273
Liabilities:	'	'
Deposits	797,400	780,662
Securities sold under agreements to repurchase	48,174	34,578
FHLB borrowings	71,197	76,375
Junior subordinated debentures	20,619	20,619
Level 3	'	'
Assets:	'	'
Cash and cash equivalents	0	0
Investment securities available for sale	1,250	1,250
Other investments	5,215	5,599
Mortgage loans held for sale	2,201	6,922
Loans, net	594,017	599,996
Cash surrender value of life insurance	0	0
Liabilities:	'	'
Deposits	0	0
Securities sold under agreements to repurchase	0	0
FHLB borrowings	0	0
Junior subordinated debentures	0	0
Estimated Fair Value	'	'
Assets:	'	'
Cash and cash equivalents	80,950	48,843
Investment securities available for sale	301,788	297,823
Other investments	5,215	5,599
Mortgage loans held for sale	2,201	6,922
Loans, net	594,017	599,996
Cash surrender value of life insurance	13,597	13,273
Liabilities:	'	'
Deposits	797,400	780,662
Securities sold under agreements to repurchase	48,174	34,578
FHLB borrowings	71,197	76,375
Junior subordinated debentures	$20,619	$20,619