Peoples Bancorp of North Carolina (PEBK) 10-K 21 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'PEOPLES BANCORP OF NORTH CAROLINA INC	'	'
Entity Central Index Key	'0001093672	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-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 Public Float	'	'	$55,780,675
Entity Common Stock, Shares Outstanding	'	5,613,495	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Cash and due from banks, including reserve requirements of of $11,472 at 12/31/13 and $9,625 at 12/31/12	$49,902	$32,617
Interest bearing deposits	26,871	16,226
Cash and cash equivalents	76,773	48,843
Investment securities available for sale	297,890	297,823
Other investments	4,990	5,599
Total securities	302,880	303,422
Mortgage loans held for sale	497	6,922
Loans	620,960	619,974
Less allowance for loan losses	-13,501	-14,423
Net loans	607,459	605,551
Premises and equipment, net	16,358	15,874
Cash surrender value of life insurance	13,706	13,273
Other real estate	1,679	6,254
Accrued interest receivable and other assets	15,332	13,377
Total assets	1,034,684	1,013,516
Deposits:	'	'
Non-interest bearing demand	195,265	161,582
NOW, MMDA & savings	386,893	371,719
Time, $100,000 or more	115,268	134,733
Other time	101,935	113,491
Total deposits	799,361	781,525
Securities sold under agreements to repurchase	45,396	34,578
FHLB borrowings	65,000	70,000
Junior subordinated debentures	20,619	20,619
Accrued interest payable and other liabilities	20,589	9,047
Total liabilities	950,965	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 2012	0	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	36,758	31,478
Accumulated other comprehensive (loss) income	-1,172	5,612
Total shareholders' equity	83,719	97,747
Total liabilities and shareholders' equity	$1,034,684	$1,013,516

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Assets	'	'
Cash and due from banks, reserve requirements	$11,472	$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 $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Interest income:	'	'	'
Interest and fees on loans	$30,194	$32,758	$36,374
Interest on due from banks	85	51	33
Interest on investment securities:	'	'	'
U.S. Government sponsored enterprises	1,639	2,746	5,414
States and political subdivisions	4,427	3,403	3,180
Other	351	287	258
Total interest income	36,696	39,245	45,259
Interest expense:	'	'	'
NOW, MMDA & savings deposits	732	1,180	2,263
Time deposits	1,650	3,205	5,035
FHLB borrowings	2,518	2,744	2,956
Junior subordinated debentures	398	438	407
Other	55	129	285
Total interest expense	5,353	7,696	10,946
Net interest income	31,343	31,549	34,313
Provision for loan losses	2,584	4,924	12,632
Net interest income after provision for loan losses	28,759	26,625	21,681
Non-interest income:	'	'	'
Service charges	4,566	4,764	5,106
Other service charges and fees	1,172	1,940	2,090
Other than temporary impairment losses	0	0	-144
Gain on sale of securities	614	1,218	4,406
Mortgage banking income	1,228	1,229	757
Insurance and brokerage commissions	661	517	471
Loss on sale and write-down of other real estate	-581	-1,136	-1,322
Miscellaneous	4,992	4,005	3,149
Total non-interest income	12,652	12,537	14,513
Non-interest expense:	'	'	'
Salaries and employee benefits	16,851	16,426	14,766
Occupancy	5,539	5,236	5,339
Other	10,451	10,120	9,467
Total non-interest expense	32,841	31,782	29,572
Earnings before income taxes	8,570	7,380	6,622
Income tax expense	1,879	1,587	1,463
Net earnings	6,691	5,793	5,159
Dividends and accretion on preferred stock	656	1,010	1,393
Net earnings available to common shareholders	$6,035	$4,783	$3,766
Basic net earnings per common share	$1.08	$0.86	$0.68
Diluted net earnings per common share	$1.07	$0.86	$0.68
Cash dividends declared per common share	$0.12	$0.18	$0.08

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements Of Comprehensive Income Loss	'	'	'
Net earnings	$6,691	$5,793	$5,159
Other comprehensive (loss) income:	'	'	'
Unrealized holding (losses) gains on securities available for sale	-10,498	5,371	9,316
Reclassification adjustment for other than temporaryB impairment losses included in net earnings	0	0	144
Reclassification adjustment for gains on securities available for sale included in net earnings	-614	-1,218	-4,406
Unrealized holding losses on derivative financial instruments qualifying as cash flow hedges	0	0	-648
Total other comprehensive (loss) income, before income taxes	-11,112	4,153	4,406
Income tax (benefit) expense related to other comprehensive (loss) income:	'	'	'
Unrealized holding (losses) gains on securities available for sale	-4,089	2,091	3,629
Reclassification adjustment for gains on securities available for sale included in net earnings	-239	-474	-1,660
Unrealized holding losses on derivative financial instruments qualifying as cash flow hedges	0	0	-252
Total income tax (benefit) expense related to other comprehensive (loss) income	-4,328	1,617	1,717
Total other comprehensive (loss) income, net of tax	-6,784	2,536	2,689
Total comprehensive (loss) income	($93)	$8,329	$7,848

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Shareholders' Equity (USD $)	Preferred Stock	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / Loss	Total
In Thousands, except Share data
Beginning Balance, Amount at Dec. 31, 2010	$24,617	$48,281	$23,573	$387	$96,858
Beginning Balance, Shares at Dec. 31, 2010	25,054	5,541,413	'	'	'
Accretion of Series A preferred stock	141	'	-141	'	0
Cash dividends declared on Series A preferred stock	'	'	-1,253	'	-1,253
Cash dividends declared on common stock	'	'	-443	'	-443
Restricted stock payout, Shares	'	2,747	'	'	'
Restricted stock payout, Amount	'	17	'	'	17
Net earnings	'	'	5,159	'	5,159
Change in accumulated other comprehensive income, net of tax	'	'	'	2,689	2,689
Ending Balance, Amount at Dec. 31, 2011	24,758	48,298	26,895	3,076	103,027
Ending Balance, Shares at Dec. 31, 2011	25,054	5,544,160	'	'	'
Accretion of Series A preferred stock	70	'	-70	'	0
Preferred stock and warrant repurchase, Shares	-12,530	'	'	'	'
Preferred stock and warrant repurchase, Amount	-12,304	-704	886	'	-12,122
Cash dividends declared on Series A preferred stock	'	'	-1,023	'	-1,023
Cash dividends declared on common stock	'	'	-1,003	'	-1,003
Restricted stock payout, Amount	'	'	'	'	0
Stock options exercised, Shares	'	69,335	'	'	'
Stock options exercised, Amount	'	539	'	'	539
Net earnings	'	'	5,793	'	5,793
Change in accumulated other comprehensive income, net of tax	'	'	'	2,536	2,536
Ending Balance, Amount at Dec. 31, 2012	12,524	48,133	31,478	5,612	97,747
Ending Balance, Shares at Dec. 31, 2012	12,524	5,613,495	'	'	'
Preferred stock repurchase, Shares	-12,524	'	'	'	'
Preferred stock repurchase, Amount	-12,524	'	'	'	-12,524
Cash dividends declared on Series A preferred stock	'	'	-734	'	-734
Cash dividends declared on common stock	'	'	-677	'	-677
Restricted stock payout, Amount	'	'	'	'	0
Net earnings	'	'	6,691	'	6,691
Change in accumulated other comprehensive income, net of tax	'	'	'	-6,784	-6,784
Ending Balance, Amount at Dec. 31, 2013	$0	$48,133	$36,758	($1,172)	$83,719
Ending Balance, Shares at Dec. 31, 2013	0	5,613,495	'	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:	'	'	'
Net earnings	$6,691	$5,793	$5,159
Adjustments to reconcile net earnings to net cash provided by operating activities:	'	'	'
Depreciation, amortization and accretion	8,453	8,876	6,226
Provision for loan losses	2,584	4,924	12,632
Deferred income taxes	534	-213	-678
Gain on sale of investment securities	-614	-1,218	-4,406
Write-down of investment securities	0	0	144
(Gain)/Loss on sale of other real estate	-14	98	272
Write-down of other real estate	595	1,038	1,050
Restricted stock expense	173	42	7
Change in:	'	'	'
Mortgage loans held for sale	6,425	-1,776	-1,332
Cash surrender value of life insurance	-432	-438	-296
Other assets	1,508	-441	2,644
Other liabilities	11,542	2,342	930
Net cash provided (used by) operating activities	37,445	19,027	22,352
Cash flows from investing activities:	'	'	'
Net change in certificates of deposit	0	0	735
Purchases of investment securities available for sale	-98,129	-88,304	-208,863
Proceeds from calls, maturities and paydowns of investment securities available for sale	63,597	63,225	54,041
Proceeds from sales of investment securities available for sale	17,463	47,076	110,978
Purchases of other investments	0	-493	-215
FHLB stock redemption	609	606	290
Net change in loans	-6,137	38,170	38,561
Purchases of premises and equipment	-2,434	-917	-1,601
Purchases of bank owned life insurance	0	0	-5,000
Proceeds from sales of other real estate and repossessions	5,797	5,434	3,355
Net cash (used) provided by investing activities	-19,234	64,797	-7,719
Cash flows from financing activities:	'	'	'
Net change in deposits	17,836	-45,586	-11,601
Net change in demand notes payable to U.S. Treasury	0	0	-1,600
Net change in securities sold under agreements to repurchase	10,818	-5,022	5,506
Proceeds from FHLB borrowings	15,001	25,400	40,000
Repayments of FHLB borrowings	-20,001	-25,400	-40,000
Proceeds from FRB borrowings	1	2	1
Repayments of FRB borrowings	-1	-2	-1
Preferred stock and warrant repurchase	-12,524	-12,122	0
Restricted stock payout	0	0	17
Stock options exercised	0	539	0
Cash dividends paid on Series A preferred stock	-734	-1,023	-1,253
Cash dividends paid on common stock	-677	-1,003	-443
Net cash provided (used) by financing activities	9,719	-64,217	-9,374
Net change in cash and cash equivalents	27,930	19,607	5,259
Cash and cash equivalents at beginning of period	48,843	29,236	23,977
Cash and cash equivalents at end of period	76,773	48,843	29,236
Cash paid during the period for:	'	'	'
Interest	5,452	7,822	10,900
Income taxes	2,256	2,013	283
Noncash investing and financing activities:	'	'	'
Change in unrealized (loss) gain on investment securities available for sale, net	-6,784	2,536	-3,087
Change in unrealized gain on derivative financial instruments, net	0	0	398
Transfers of loans to other real estate and repossessions	2,353	6,323	10,787
Financed portion of sales of other real estate	708	1,076	5,208
Accretion of Series A preferred stock	0	70	141
Discount on preferred stock repurchased	$0	$835	$0

1_Summary_of_Significant_Accou

1. Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
1. Summary of Significant Accounting Policies	'
	Organization
	Peoples Bancorp of North Carolina, Inc. (“Bancorp”) received regulatory approval to operate as a bank holding company on July 22, 1999, and became effective August 31, 1999.  Bancorp is primarily regulated by the Board of Governors of the Federal Reserve System, and serves as the one-bank holding company for Peoples Bank (the “Bank”).
	The Bank commenced business in 1912 upon receipt of its banking charter from the North Carolina State Banking Commission (the “SBC”). The Bank is primarily regulated by the SBC and the Federal Deposit Insurance Corporation (the “FDIC”) and undergoes periodic examinations by these regulatory agencies. The Bank, whose main office is in Newton, North Carolina, provides a full range of commercial and consumer banking services primarily in Catawba, Alexander, Lincoln, Mecklenburg, Iredell, Union and Wake counties in North Carolina.
	Peoples Investment Services, Inc. is a wholly-owned subsidiary of the Bank and began operations in 1996 to provide investment and trust services through agreements with an outside party.
	Real Estate Advisory Services, Inc. (“REAS”) is a wholly-owned subsidiary of the Bank and began operations in 1997 to provide real estate appraisal and property management services to individuals and commercial customers of the Bank.
	Community Bank Real Estate Solutions, LLC is a wholly-owned subsidiary of Bancorp and began operations in 2009 as a “clearing house” for appraisal services for community banks.  Other banks are able to contract with Community Bank Real Estate Solutions, LLC to find and engage appropriate appraisal companies in the area where the property is located.
	Principles of Consolidation
	The consolidated financial statements include the financial statements of Bancorp and its wholly-owned subsidiaries, the Bank and Community Bank Real Estate Solutions, LLC, along with the Bank’s wholly-owned subsidiaries, Peoples Investment Services, Inc. and REAS (collectively called the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.
	Basis of Presentation
	The accounting principles followed by the Company, and the methods of applying these principles, conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices in the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from these estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses and valuation of real estate acquired in connection with or in lieu of foreclosure on loans.
	Cash and Cash Equivalents
	Cash, due from banks and interest-bearing deposits are considered cash and cash equivalents for cash flow reporting purposes.
	Investment Securities
	There are three classifications the Company is able to classify its investment securities: trading, available for sale, or held to maturity. Trading securities are bought and held principally for sale in the near term. Held to maturity securities are those securities for which the Company has the ability and intent to hold until maturity. All other securities not included in trading or held to maturity are classified as available for sale. At December 31, 2013 and 2012, the Company classified all of its investment securities as available for sale.
	Available for sale securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of shareholders’ equity until realized.
	Management evaluates investment securities for other-than-temporary impairment on an annual basis.  A decline in the market value of any investment below cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established.  The decline in value attributed to non-credit related factors is recognized in comprehensive income.
	Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield.  Realized gains and losses for securities classified as available for sale are included in earnings and are derived using the specific identification method for determining the cost of securities sold.
	Other Investments
	Other investments include equity securities with no readily determinable fair value.  These investments are carried at cost.
	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.
	Loans
	Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding.   The recognition of certain loan origination fee income and certain loan origination costs is deferred when such loans are originated and amortized over the life of the loan.
	A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan will not be collected.  Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent.
	Accrual of interest is discontinued on a loan when management believes, after considering economic conditions and collection efforts, that the borrower’s financial condition is such that collection of interest is doubtful. Interest previously accrued but not collected is reversed against current period earnings.
	Allowance for Loan Losses
	The allowance for loan losses reflects management’s assessment and estimate of the risks associated with extending credit and its evaluation of the quality of the loan portfolio.  The Bank periodically analyzes the loan portfolio in an effort to review asset quality and to establish an allowance for loan losses that management believes will be adequate in light of anticipated risks and loan losses.  In assessing the adequacy of the allowance, size, quality and risk of loans in the portfolio are reviewed. Other factors considered are:
	·	the Bank’s loan loss experience;
	·	the amount of past due and non-performing loans;
	·	specific known risks;
	·	the status and amount of other past due and non-performing assets;
	·	underlying estimated values of collateral securing loans;
	·	current and anticipated economic conditions; and
	·	other factors which management believes affect the allowance for potential credit losses.
	The allowance for loan losses is comprised of three components: specific reserves, general reserves and unallocated reserves.  After a loan has been identified as impaired, management measures impairment.  When the measure of the impaired loan is less than the recorded investment in the loan, the amount of the impairment is recorded as a specific reserve. These specific reserves are determined on an individual loan basis based on management’s current evaluation of the Bank’s loss exposure for each credit, given the appraised value of any underlying collateral or the present value of projected cash flows for non-collateral dependent loans.  Loans for which specific reserves are provided are excluded from the general allowance calculations as described below.
	The general allowance reflects reserves established under GAAP for collective loan impairment.  These reserves are based upon historical net charge-offs using the greater of the loss experience for the last two, three, four or five year periods.  This charge-off experience may be adjusted to reflect the effects of current conditions.  The Bank considers information derived from its loan risk ratings and external data related to industry and general economic trends in establishing reserves.
	The unallocated allowance is determined through management’s assessment of probable losses that are in the portfolio but are not adequately captured by the other two components of the allowance, including consideration of current economic and business conditions and regulatory requirements. The unallocated allowance also reflects management’s acknowledgement of the imprecision and subjectivity that underlie the modeling of credit risk.  Due to the subjectivity involved in determining the overall allowance, including the unallocated portion, this unallocated portion may fluctuate from period to period based on management’s evaluation of the factors affecting the assumptions used in calculating the allowance.
	Management considers the allowance for loan losses adequate to cover the estimated losses inherent in the Bank’s loan portfolio as of the date of the financial statements. Management believes it has established the allowance in accordance with GAAP and in consideration of the current economic environment. Although management uses the best information available to make evaluations, significant future additions to the allowance may be necessary based on changes in economic and other conditions, thus adversely affecting the operating results of the Company.
	There were no significant changes in the estimation methods or fundamental assumptions used in the evaluation of the allowance for loan losses for the year ended December 31, 2013 as compared to the year ended December 31, 2012.   Revisions, estimates and assumptions may be made in any period in which the supporting factors indicate that loss levels may vary from the previous estimates.
	Effective December 31, 2012, stated income mortgage loans from the Banco de la Gente division of the Bank were analyzed separately from other single family residential loans in the Bank’s loan portfolio.  These loans are first mortgage loans made to the Latino market, primarily in Mecklenburg and surrounding counties.  These loans are non-traditional mortgages in that the customer normally did not have a credit history, so all credit information was accumulated by the loan officers.  These loans were made as stated income loans rather than full documentation loans because the customer may not have had complete documentation on the income supporting the loan.
	Various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require adjustments to the allowance based on their judgments of information available to them at the time of their examinations.  Also, an independent loan review process further assists with evaluating credit quality and assessing potential performance issues.
	Mortgage Banking Activities
	Mortgage banking income represents net gains from the sale of mortgage loans and fees received from borrowers and loan investors related to the Bank’s origination of single-family residential mortgage loans.
	Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of mortgage loans serviced for others was approximately $2.4 million, $3.1 million and $4.0 million at December 31, 2013, 2012 and 2011, respectively.
	The Bank originates certain fixed rate mortgage loans and commits these loans for sale.  The commitments to originate fixed rate mortgage loans and the commitments to sell these loans to a third party are both derivative contracts.  The fair value of these derivative contracts is immaterial and has no effect on the recorded amounts in the financial statements.
	Premises and Equipment
	Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is reflected in earnings for the period. The cost of maintenance and repairs that do not improve or extend the useful life of the respective asset is charged to earnings as incurred, whereas significant renewals and improvements are capitalized. The range of estimated useful lives for premises and equipment are generally as follows:
	Buildings and improvements		10 - 50 years
	Furniture and equipment		3 - 10 years
	Other Real Estate
	Foreclosed assets include all assets received in full or partial satisfaction of a loan.  Foreclosed assets are reported at fair value less estimated selling costs.  Any write-downs at the time of foreclosure are charged to the allowance for loan losses.  Subsequent to foreclosure, valuations are periodically performed by management, and a valuation allowance is established if fair value declines below carrying value.  Costs relating to the development and improvement of the property are capitalized.  Revenues and expenses from operations are included in other expenses.  Changes in the valuation allowance are included in loss on sale and write-down of other real estate.  The balance of other real estate was $1.7 million and $6.3 million at December 31, 2013 and 2012, respectively.
	Income Taxes
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, the recognition of future tax benefits, such as net operating loss carryforwards, is required to the extent that the realization of such benefits is more likely than not to occur. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date.
	In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities results in a deferred tax asset, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realizability of a deferred tax asset, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies.
	Tax effects from an uncertain tax position can be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.  A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.  Previously recognized tax positions that no longer meet the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met.  The Company assessed the impact of this guidance and determined that it did not have a material impact on the Company’s financial position, results of operations or disclosures.
	Derivative Financial Instruments and Hedging Activities
	In the normal course of business, the Company enters into derivative contracts to manage interest rate risk by modifying the characteristics of the related balance sheet instruments in order to reduce the adverse effect of changes in interest rates. All material derivative financial instruments are recorded at fair value in the financial statements.  The fair value of derivative contracts related to the origination of fixed rate mortgage loans and the commitments to sell these loans to a third party is immaterial and has no effect on the recorded amounts in the financial statements.
	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.
	On the date a derivative contract is entered into, the Company designates the derivative as a fair value hedge, a cash flow hedge, or a trading instrument. Changes in the fair value of instruments used as fair value hedges are accounted for in the earnings of the period simultaneous with accounting for the fair value change of the item being hedged. Changes in the fair value of the effective portion of cash flow hedges are accounted for in other comprehensive income rather than earnings. Changes in fair value of instruments that are not intended as a hedge are accounted for in the earnings of the period of the change.
	If a derivative instrument designated as a fair value hedge is terminated or the hedge designation removed, the difference between a hedged item’s then carrying amount and its face amount is recognized into income over the original hedge period. Likewise, if a derivative instrument designated as a cash flow hedge is terminated or the hedge designation removed, related amounts accumulated in other accumulated comprehensive income are reclassified into earnings over the original hedge period during which the hedged item affects income.
	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.
	The Company formally documents all hedging relationships, including an assessment that the derivative instruments are expected to be highly effective in offsetting the changes in fair values or cash flows of the hedged items.
	Advertising Costs
Advertising costs are expensed as incurred.
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.   A summary of the stock option activity in the 1999 Plan is presented below:
Stock Option Activity
For the Years Ended December 31, 2013, 2012 and 2011
	Shares		Weighted		Weighted Average Remaining			Aggregate
			Average Option		Contractual Term (in			Intrinsic
			Price Per Share		years)			Value
								(Dollars in
								thousands)
Outstanding, December 31, 2010	150,071		$	8.32
Granted during the period	-		$	-
Expired during the period	(71,054	)	$	8.71
Forfeited during the period	-		$	-
Exercised during the period	-		$	-
Outstanding, December 31, 2011	79,017		$	7.97
Granted during the period	-		$	-
Expired during the period	-		$	-
Forfeited during the period	(6,052	)	$	8.89
Exercised during the period	(69,335	)	$	7.77
Outstanding, December 31, 2012	3,630		$	10.31
Granted during the period	-		$	-
Expired during the period	-		$	-
Forfeited during the period	-		$	-
Exercised during the period	-		$	-
Outstanding, December 31, 2013	3,630		$	10.31	0.35		$	14.05
Exercisable, December 31, 2013	3,630		$	10.31	0.35		$	14.05
Options outstanding at December 31, 2013 are exercisable at $10.31.  Such options have a weighted average remaining contractual life of less than one year.  No options were granted during the years ended December 31, 2013, 2012 and 2011.  No options were exercised during the years ended December 31, 2013 and 2011.  69,335 options were exercised during the year ended December 31, 2012.
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 December 31, 2013, there was no unrecognized compensation expense related to the 2007 and 2008 restricted stock unit grants granted under the 1999 Plan.
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 December 31, 2013, the total unrecognized compensation expense related to the restricted stock unit grants under the 2009 Plan was $584,000.
The Company recognized compensation expense for restricted stock awards granted under the 2009 Plan of $173,000 and $42,000 for the years ended December 31, 2013 and 2012, respectively.  The Company recognized compensation expense for restricted stock awards granted under the 1999 Plan of $7,000 for the year ended December 31, 2011.
Net Earnings Per 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 reconciliations of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the years ended December 31, 2013, 2012 and 2011 are as follows:
For the year ended December 31, 2013:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share Amount
				Shares
Basic earnings per common share	$	6,035		5,613,495	$	1.08
Effect of dilutive securities:
Stock options		-		9,725
Diluted earnings per common share	$	6,035		5,623,220	$	1.07
For the year ended December 31, 2012:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
				Shares	Amount
Basic earnings per common share	$	4,783		5,559,401	$	0.86
Effect of dilutive securities:
Stock options		-		3,206
Diluted earnings per common share	$	4,783		5,562,607	$	0.86
For the year ended December 31, 2011:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
				Shares	Amount
Basic earnings per common share	$	3,766		5,542,548	$	0.68
Effect of dilutive securities:
Stock options		-		1,301
Diluted earnings per common share	$	3,766		5,543,849	$	0.68
Recent Accounting Pronouncements
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.  ASU No. 2014-04 provides additional guidance to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized.  ASU No. 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  The adoption of this guidance is not expected to 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 2011 and 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation.

2_Investment_Securities

2. Investment Securities	12 Months Ended
	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]	'
Investment Securities	'
	Investment securities available for sale at December 31, 2013 and 2012 are as follows:
	(Dollars in thousands)
		31-Dec-13
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	123,706	1,040	769	123,977
	U.S. Government
	sponsored enterprises		22,115	97	69	22,143
	State and political subdivisions		148,468	1,987	5,087	145,368
	Corporate bonds		3,522	11	70	3,463
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	941	-	1,689
	Total	$	299,809	4,076	5,995	297,890
	(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 debt securities with unrealized losses at December 31, 2013 and 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)
		31-Dec-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	$	40,857	691	10,128	78	50,985	769
	U.S. Government
	sponsored enterprises		9,714	69	-	-	9,714	69
	State and political subdivisions		77,187	4,863	1,824	224	79,011	5,087
	Corporate bonds		1,984	16	511	54	2,495	70
	Total	$	129,742	5,639	12,463	356	142,205	5,995
	(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 December 31, 2013, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.9 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the December 31, 2013 tables above, 80 out of 179 securities issued by state and political subdivisions contained unrealized losses, 28 out of 95 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and three 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 Company periodically evaluates its investments for any impairment which would be deemed other-than-temporary.   No investment impairments were deemed other-than-temporary in 2013 or 2012.  As part of its evaluation in 2011, the Company determined that the fair value of one equity security was less than the original cost of the investment and that the decline in fair value was not temporary in nature.  As a result, the Company wrote down its investment by $144,000.  The remaining fair value of the investment at December 31, 2011 was approximately $264,000.
	The amortized cost and estimated fair value of investment securities available for sale at December 31, 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.
	31-Dec-13
	(Dollars in thousands)
			Amortized Cost	Estimated Fair
				Value
	Due within one year	$	4,019	4,048
	Due from one to five years		31,725	32,103
	Due from five to ten years		119,313	115,878
	Due after ten years		20,298	20,195
	Mortgage-backed securities		123,706	123,977
	Equity securities		748	1,689
Total	$	299,809	297,890
Proceeds from sales of securities available for sale during 2013 were $17.5 million and resulted in gross gains of $738,000 and gross losses of $124,000.  During 2012, the proceeds from sales of securities available for sale were $47.1 million and resulted in gross gains of $1.3 million and gross losses of $103,000.  During 2011, the proceeds from sales of securities available for sale were $111.0 million and resulted in gross gains of $4.4 million and gross losses of $9,000.
Securities with a fair value of approximately $86.0 million and $73.9 million at December 31, 2013 and 2012, respectively, were pledged to secure public deposits, Federal Home Loan Bank of Atlanta (“FHLB”) borrowings and for other purposes as required by law.
GAAP establishes a framework for measuring fair value and expands disclosures about fair value measurements. There is a three-level fair value hierarchy for fair value measurements.  Level 1 inputs are quoted prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.  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 December 31, 2013 and 2012.
(Dollars in thousands)
	31-Dec-13
	Fair Value Measurements		Level 1	Level 2	Level 3
			Valuation	Valuation	Valuation
Mortgage-backed securities	$	123,977	-	123,977	-
U.S. Government
sponsored enterprises	$	22,143	-	22,143	-
State and political subdivisions	$	145,368	-	145,368	-
Corporate bonds	$	3,463	-	3,463	-
Trust preferred securities	$	1,250	-	-	1,250
Equity securities	$	1,689	1,689	-	-
(Dollars in thousands)
	31-Dec-12
	Fair Value Measurements		Level 1	Level 2	Level 3
			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 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.
The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the year ended December 31, 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	$	-

3_Loans

3. Loans	12 Months Ended
	Dec. 31, 2013
Receivables [Abstract]	'
Loans	'
	Major classifications of loans at December 31, 2013 and 2012 are summarized as follows:
	(Dollars in thousands)
		31-Dec-13			31-Dec-12
	Real estate loans
	Construction and land development	$	63,742		73,176
	Single-family residential		195,975		195,003
	Single-family residential -
	Banco de la Gente stated income		49,463		52,019
	Commercial		209,287		200,633
	Multifamily and farmland		11,801		8,951
	Total real estate loans		530,268		529,782
	Loans not secured by real estate
	Commercial loans		68,047		64,295
	Farm loans		19		11
	Consumer loans		9,593		10,148
	All other loans		13,033		15,738
	Total loans		620,960		619,974
	Less allowance for loan losses		13,501		14,423
	Total net loans	$	607,459		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 December 31, 2013, construction and land development loans comprised approximately 10% 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 December 31, 2013, single-family residential loans comprised approximately 40% of the Bank’s total loan portfolio, including 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 December 31, 2013, commercial real estate loans comprised approximately 34% 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 December 31, 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 following tables present an age analysis of past due loans, by loan type, as of December 31, 2013 and 2012:
	31-Dec-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	$	3,416		5,426		8,842		54,900		63,742		-
	Single-family residential		4,518		1,555		6,073		189,902		195,975		-
	Single-family residential -
	Banco de la Gente stated income		9,833		1,952		11,785		37,678		49,463		881
	Commercial		1,643		486		2,129		207,158		209,287		-
	Multifamily and farmland		177		-		177		11,624		11,801		-
	Total real estate loans		19,587		9,419		29,006		501,262		530,268		881
	Loans not secured by real estate
	Commercial loans		424		29		453		67,594		68,047		-
	Farm loans		-		-		-		19		19		-
	Consumer loans		181		3		184		9,409		9,593		1
	All other loans		-		-		-		13,033		13,033		-
	Total loans	$	20,192		9,451		29,643		591,317		620,960		882
	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
The following table presents the Bank’s non-accrual loans as of December 31, 2013 and 2012:
(Dollars in thousands)
	31-Dec-13			31-Dec-12
Real estate loans
Construction and land development	$	6,546		9,253
Single-family residential		2,980		2,491
Single-family residential -
Banco de la Gente stated income		1,990		2,232
Commercial		2,043		3,263
Total real estate loans		13,559		17,239
Loans not secured by real estate
Commercial loans		250		344
Consumer loans		27		47
Total	$	13,836		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 $27.6 million and $30.6 million at December 31, 2013 and 2012, respectively.  Interest income recognized on accruing impaired loans was $1.3 million and $1.5 million for the years ended December 31, 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 Bank’s impaired loans as of December 31, 2013 and 2012:
(Dollars in thousands)
	Unpaid			Recorded Investment		Recorded Investment		Recorded Investment		Related Allowance		Average Outstanding Impaired
	Contractual Principal			With No Allowance		With		in Impaired				Loans
	Balance					Allowance		Loans
Real estate loans
Construction and land development	$	9,861		6,293		868		7,161		53		8,289
Single-family residential		7,853		1,428		5,633		7,061		123		7,859
Single-family residential -
Banco de la Gente stated income		22,034		-		21,242		21,242		1,300		21,242
Commercial		5,079		3,045		1,489		4,534		182		4,171
Multifamily and farmland		177		-		177		177		1		184
Total impaired real estate loans		45,004		10,766		29,409		40,175		1,659		41,745
Loans not secured by real estate
Commercial loans		999		257		724		981		15		826
Consumer loans		302		264		35		299		1		247
Total impaired loans	$	46,305		11,287		30,168		41,455		1,675		42,818
31-Dec-12
(Dollars in thousands)
	Unpaid			Recorded Investment		Recorded Investment		Recorded Investment		Related Allowance		Average Outstanding Impaired
	Contractual Principal			With No Allowance		With		in Impaired				Loans
	Balance					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
The fair value measurements for impaired loans and other real estate on a non-recurring basis at December 31, 2013 and 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 December 31, 2013			Level 1		Level 2		Level 3		Total Gains/(Losses) for
				Valuation		Valuation		Valuation		the Year Ended
										31-Dec-13
Impaired loans	$	39,780		-		-		39,780		(3,207	)
Other real estate	$	1,679		-		-		1,679		(581	)
(Dollars in thousands)
	Fair Value Measurements December 31, 2012			Level 1		Level 2		Level 3		Total Gains/(Losses) for
				Valuation		Valuation		Valuation		the Year Ended
										31-Dec-12
Impaired loans	$	46,738		-		-		46,738		(6,875	)
Other real estate	$	6,254		-		-		6,254		(1,136	)
Changes in the allowance for loan losses for the year ended December 31, 2013 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
Allowance for loan losses:
Beginning balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
Charge-offs		(777	)	(1,724	)	(272	)	(445	)	-		(502	)	-		(652	)	-		(4,372	)
Recoveries		377		111		141		50		-		44		-		143		-		866
Provision		(781	)	1,505		(4	)	565		9		439		-		509		342		2,584
Ending balance	$	3,218		3,123		1,863		2,219		37		1,069		-		245		1,727		13,501
Ending balance: individually
evaluated for impairment	$	-		39		1,268		171		-		-		-		-		-		1,478
Ending balance: collectively
evaluated for impairment		3,218		3,084		595		2,048		37		1,069		-		245		1,727		12,023
Ending balance	$	3,218		3,123		1,863		2,219		37		1,069		-		245		1,727		13,501
Loans:
Ending balance	$	63,742		195,975		49,463		209,287		11,801		68,047		19		22,626		-		620,960
Ending balance: individually
evaluated for impairment	$	6,293		3,127		19,958		3,767		-		256		-		265		-		33,666
Ending balance: collectively
evaluated for impairment	$	57,449		192,848		29,505		205,520		11,801		67,791		19		22,361		-		587,294
Changes in the allowance for loan losses for the year ended December 31, 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
Allowance for loan losses:
Beginning balance	$	7,182		3,253		2,104		1,731		13		1,029		-		255		1,037		16,604
Charge-offs		(4,728	)	(886	)	(668	)	(937	)	-		(555	)	-		(557	)	-		(8,331	)
Recoveries		528		72		-		374		-		104		-		148		-		1,226
Provision		1,417		792		562		881		15		510		-		399		348		4,924
Ending balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
Ending balance: individually
evaluated for impairment	$	24		84		1,254		-		-		-		-		-		-		1,362
Ending balance: collectively
evaluated for impairment		4,375		3,147		744		2,049		28		1,088		-		245		1,385		13,061
Ending balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
Loans:
Ending balance	$	73,176		195,003		52,019		200,633		8,951		64,295		11		25,886		-		619,974
Ending balance: individually
evaluated for impairment	$	11,961		3,885		20,024		4,569		-		346		-		-		-		40,785
Ending balance: collectively
evaluated for impairment	$	61,215		191,118		31,995		196,064		8,951		63,949		11		25,886		-		579,189
Changes in the allowance for loan losses for the year ended December 31, 2011 were as follows:
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-		Single-		Commercial		Multifamily and		Commercial		Consumer		Unallocated		Total
				Family Residential		Family Residential - Banco de la Gente				Farmland				and All
						Stated								Other
						Income
Allowance for loan losses:
Beginning balance	$	5,774		3,992		2,105		1,409		17		1,174		430		592		15,493
Charge-offs		(7,164	)	(2,233	)	(692	)	(1,271	)	-		(314	)	(586	)	-		(12,260	)
Recoveries		241		184		17		24		-		121		152		-		739
Provision		8,331		1,310		674		1,569		(4	)	48		259		445		12,632
Ending balance	$	7,182		3,253		2,104		1,731		13		1,029		255		1,037		16,604
Ending balance: individually
evaluated for impairment	$	1,250		46		1,243		-		-		-		-		-		2,539
Ending balance: collectively
evaluated for impairment		5,932		3,207		861		1,731		13		1,029		255		1,037		14,065
Ending balance	$	7,182		3,253		2,104		1,731		13		1,029		255		1,037		16,604
Loans:
Ending balance	$	93,812		212,993		54,058		214,415		4,793		60,646		29,780		-		670,497
Ending balance: individually
evaluated for impairment	$	20,280		2,352		18,309		3,845		-		-		-		-		44,786
Ending balance: collectively
evaluated for impairment	$	73,532		210,641		35,749		210,570		4,793		60,646		29,780		-		625,711
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 December 31, 2013 and 2012.
31-Dec-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	$	7		15,036		-		-		-		365		-		1,270		-		16,678
2- High Quality		7,852		60,882		-		33,340		715		8,442		-		3,519		2,139		116,889
3- Good Quality		22,899		73,118		22,255		123,604		7,882		44,353		19		4,061		8,565		306,756
4- Management Attention		14,464		34,090		8,369		42,914		286		13,704		-		358		2,329		116,514
5- Watch		8,163		6,806		8,113		5,190		2,741		320		-		50		-		31,383
6- Substandard		10,357		6,043		10,726		4,239		177		863		-		330		-		32,735
7- Doubtful		-		-		-		-		-		-		-		-		-		-
8- Loss		-		-		-		-		-		-		-		5		-		5
Total	$	63,742		195,975		49,463		209,287		11,801		68,047		19		9,593		13,033		620,960
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
Total TDR loans amounted to $21.9 million and $23.9 million at December 31, 2013 and 2012, respectively.  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.  There were $335,000 and $2.0 million in performing loans classified as TDR loans at December 31, 2013 and 2012, respectively.
The following table presents an analysis of TDR loans by loan type as of December 31, 2013.
31-Dec-13
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Construction and land development	15		$	10,222		6,528
Single-family residential	20			1,281		1,754
Single-family residential -
Banco de la Gente stated income	91			10,038		8,605
Commercial	10			3,775		4,272
Multifamily and farmland	1			322		177
Total real estate TDR loans	137			25,638		21,336
Loans not secured by real estate
Commercial loans	7			519		344
Consumer loans	3			284		266
Total TDR loans	147		$	26,441		21,946
The following table presents an analysis of 2013 loan modifications included in the December 31, 2013 TDR table above.
Year ended December 31, 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		824
Single-family residential -
Banco de la Gente stated income	7			796		788
Total real estate TDR loans	9			1,637		1,612
Total TDR loans	9		$	1,637		1,612
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
The following table presents an analysis of 2012 loan modifications included in the December 31, 2012 TDR table above.
Year ended December 31, 2012
(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
			Investment			Investment
Real estate loans
Single-family residential	5		$	674		673
Single-family residential -
Banco de la Gente stated income	20			2,046		1,992
Total real estate TDR loans	25			2,720		2,665
Loans not secured by real estate
Commercial loans	1			14		13
Total TDR loans	26		$	2,734		2,678

4_Premises_and_Equipment

4. Premises and Equipment	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Premises and Equipment	'
	Major classifications of premises and equipment are summarized as follows:
	(Dollars in thousands)
		2013		2012
	Land	$	3,667	3,657
	Buildings and improvements		15,126	14,815
	Furniture and equipment		16,239	17,660
	Total premises and equipment		35,032	36,132
	Less accumulated depreciation		18,674	20,258
	Total net premises and equipment	$	16,358	15,874
	Depreciation expense was approximately $1.9 million for the years ended December 31, 2013 and 2012.  The Company recognized approximately $2.0 million in depreciation expense for the year ended December 31, 2011.

5_Time_Deposits

5. Time Deposits	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Time Deposits	'
	At December 31, 2013, the scheduled maturities of time deposits are as follows:
	(Dollars in thousands)
	2014	$	127,036
	2015		48,913
	2016		22,318
	2017		10,155
	2018 and thereafter		8,781
	Total	$	217,203
	At December 31, 2013 and 2012, the Company had approximately $15.1 million and $21.4 million, respectively, in time deposits purchased through third party brokers, including certificates of deposit participated through the Certificate of Deposit Account Registry Service (“CDARS”) on behalf of local customers.  CDARS balances totaled $15.1 million and $20.1 million as of December 31, 2013 and 2012, respectively.  The weighted average rate of brokered deposits as of December 31, 2013 and 2012 was 0.14% and 0.29%, respectively.

6_Federal_Home_Loan_Bank_and_F

6. Federal Home Loan Bank and Federal Reserve Bank Borrowings	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Federal Home Loan Bank and Federal Reserve Bank Borrowings	'
	The Bank has borrowings from the FHLB with monthly or quarterly interest payments at December 31, 2013.  The FHLB borrowings are collateralized by a blanket assignment on all residential first mortgage loans, home equity lines of credit and loans secured by multi-family real estate that the Bank owns.  At December 31, 2013, the carrying value of loans pledged as collateral totaled approximately $132.9 million.  As additional collateral, the Bank has pledged securities to the FHLB.  At December 31, 2013, the market value of securities pledged to the FHLB totaled $17.3 million.
	Borrowings from the FHLB outstanding at December 31, 2013 consist of the following:
	(Dollars in thousands)
	Maturity Date	Call Date	Rate	Rate Type	Amount
	25-Mar-19	N/A	4.26%	Convertible		5,000
	12-Nov-14	N/A	2.23%	Fixed Rate Hybrid		5,000
	17-Oct-16	N/A	3.73%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.41%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.65%	Adjustable Rate Hybrid		15,000
	17-Oct-18	N/A	3.43%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.48%	Adjustable Rate Hybrid		5,000
	8-May-18	N/A	1.80%	Floating to Fixed		5,000
	8-May-18	N/A	3.44%	Floating to Fixed		15,000
					$	65,000
	The Bank is required to purchase and hold certain amounts of FHLB stock in order to obtain FHLB borrowings. No ready market exists for the FHLB stock, and it has no quoted market value. The stock is redeemable at $100 per share subject to certain limitations set by the FHLB. The Bank owned $4.1 million and $4.7 million of FHLB stock at December 31, 2013 and 2012, respectively.
	As of December 31, 2013 and 2012, the Bank had no borrowings from the Federal Reserve Bank (“FRB”).  FRB borrowings are collateralized by a blanket assignment on all qualifying loans that the Bank owns which are not pledged to the FHLB.  At December 31, 2013, the carrying value of loans pledged as collateral totaled approximately $315.2 million.

7_Junior_Subordinated_Debentur

7. Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2013
Brokers and Dealers [Abstract]	'
Junior Subordinated Debentures	'
	In June 2006, the Company formed a second wholly-owned Delaware statutory trust, PEBK Capital Trust II (“PEBK Trust II”), which issued $20.0 million of guaranteed preferred beneficial interests in the Company’s junior subordinated deferrable interest debentures.  All of the common securities of PEBK Trust II are owned by the Company.  The proceeds from the issuance of the common securities and the trust preferred securities were used by PEBK Trust II to purchase $20.6 million of junior subordinated debentures of the Company.  The proceeds received by the Company from the sale of the junior subordinated debentures were used to repay in December 2006 the trust preferred securities issued in December 2001 by PEBK Capital Trust, a wholly-owned Delaware statutory trust of the Company, and for general purposes.  The debentures represent the sole assets of PEBK Trust II.  PEBK Trust II is not included in the consolidated financial statements.
	The trust preferred securities issued by PEBK Trust II accrue and pay interest quarterly at a floating rate of three-month LIBOR plus 163 basis points.  The Company has guaranteed distributions and other payments due on the trust preferred securities to the extent PEBK Trust II does not have funds with which to make the distributions and other payments.  The net combined effect of all the documents entered into in connection with the trust preferred securities is that the Company is liable to make the distributions and other payments required on the trust preferred securities.
	These trust preferred securities are mandatorily redeemable upon maturity of the debentures on June 28, 2036, or upon earlier redemption as provided in the indenture.  The Company has the right to redeem the debentures purchased by PEBK Trust II, in whole or in part, which became effective on June 28, 2011.  As specified in the indenture, if the debentures are redeemed prior to maturity, the redemption price will be the principal amount plus any accrued but unpaid interest.

8_Income_Taxes

8. Income Taxes	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	The provision for income taxes is summarized as follows:
	(Dollars in thousands)
		2013			2012		2011
	Current	$	1,345		1,800		2,141
	Deferred		534		(213	)	(678	)
	Total	$	1,879		1,587		1,463
	The differences between the provision for income taxes and the amount computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:
	(Dollars in thousands)
		2013			2012		2011
	Pre-tax income at statutory rate (34%)	$	2,914		2,509		2,251
	Differences:
	Tax exempt interest income		(1,481	)	(1,168	)	(1,052	)
	Nondeductible interest and other expense		141		52		62
	Cash surrender value of life insurance		(147	)	(149	)	(101	)
	State taxes, net of federal benefits		428		324		233
	Nondeductible capital losses		-		-		49
	Other, net		24		19		21
	Total	$	1,879		1,587		1,463
	The following summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities.  The net deferred tax asset is included as a component of other assets at December 31, 2013 and 2012.
	(Dollars in thousands)
		2013			2012
	Deferred tax assets:
	Allowance for loan losses	$	5,205		5,560
	Accrued retirement expense		1,489		1,409
	Other real estate		218		628
	Other		413		362
	Unrealized loss on available for sale securities		747		-
	Total gross deferred tax assets		8,072		7,959
	Deferred tax liabilities:
	Deferred loan fees		581		794
	Premises and equipment		530		417
	Unrealized gain on available for sale securities		-		3,581
	Total gross deferred tax liabilities		1,111		4,792
	Net deferred tax asset	$	6,961		3,167

9_Related_Party_Transactions

9. Related Party Transactions	12 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	The Company conducts transactions with its directors and executive officers, including companies in which they have beneficial interests, in the normal course of business. It is the policy of the  Bank that loan transactions with directors and officers are made on substantially the same terms as those prevailing at the time made for comparable loans to other persons. The following is a summary of activity for related party loans for 2013:
	(Dollars in thousands)
	Beginning balance	$	5,385
	New loans		3,409
	Repayments		(4,454	)
	Ending balance	$	4,340
	At December 31, 2013 and 2012, the Bank had deposit relationships with related parties of approximately $17.6 million and $13.9 million, respectively.

10_Commitments_and_Contingenci

10. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	The Company leases various office spaces for banking and operational facilities and equipment under operating lease arrangements. Future minimum lease payments required for all operating leases having a remaining term in excess of one year at December 31, 2013 are as follows:
	(Dollars in thousands)
	Year ending December 31,
	2014	$	549
	2015		517
	2016		519
	2017		469
	2018		436
	Thereafter		1,253
	Total minimum obligation	$	3,743
	Total rent expense was approximately $672,000, $643,000 and $735,000 for the years ended December 31, 2013, 2012 and 2011, respectively.
	The Bank is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees.  Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet.  The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.
	The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.
	In most cases, the  Bank requires collateral or other security to support financial instruments with credit risk.
	(Dollars in thousands)
		Contractual Amount
		2013		2012
	Financial instruments whose contract amount represent credit risk:
	Commitments to extend credit	$	146,243	133,919
	Standby letters of credit and financial guarantees written	$	4,361	3,297
	Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates and because they may expire without being drawn upon, the total commitment amount of $150.6 million does not necessarily represent future cash requirements.
	Standby letters of credit and financial guarantees written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to businesses in the Bank’s delineated market area. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds real estate, equipment, automobiles and customer deposits as collateral supporting those commitments for which collateral is deemed necessary.
	In the normal course of business, the Company is a party (both as plaintiff and defendant) to a number of lawsuits. In the opinion of management and counsel, none of these cases should have a material adverse effect on the financial position of the  Company.
	Bancorp and the Bank have employment agreements with certain key employees. The agreements, among other things, include salary, bonus, incentive stock option, and change in control provisions.
	The Company has $62.5 million available for the purchase of overnight federal funds from six correspondent financial institutions as of December 31, 2013.

11_Derivative_Financial_Instru

11. Derivative Financial Instruments and Hedging Transactions	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Derivative Financial Instruments and Hedging Transactions	'
	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 December 31, 2013 or 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 December 31, 2013 or 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.

12_Employee_and_Director_Benef

12. Employee and Director Benefit Programs	12 Months Ended
	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]	'
Employee and Director Benefit Programs	'
	The Company has a profit sharing and 401(k) plan for the benefit of substantially all employees subject to certain minimum age and service requirements. Under the 401(k) plan, the Company matched employee contributions to a maximum of 4.00% of annual compensation in 2013, 3.50% of annual compensation in 2012 and 2.50% of annual compensation in 2011.  The Company’s contribution pursuant to this formula was approximately $430,000, $345,000 and $219,000 for the years 2013, 2012 and 2011, respectively.  Investments of the 401(k) plan are determined by a committee comprised of senior management .  No investments in Company stock have been made by the 401(k) plan. The vesting schedule for the 401(k) plan begins at 20 percent after two years of employment and graduates 20 percent each year until reaching 100 percent after six years of employment.
	In December 2001, the Company initiated a postretirement benefit plan to provide retirement benefits to key officers and its Board of Directors and to provide death benefits for their designated beneficiaries.  Under the postretirement benefit plan, the Company purchased life insurance contracts on the lives of the key officers and each director.  The increase in cash surrender value of the contracts constitutes the Company’s contribution to the postretirement benefit plan each year.  Postretirement benefit plan participants are to be paid annual benefits for a specified number of years commencing upon retirement. Expenses incurred for benefits relating to the postretirement benefit plan were approximately $395,000, $546,000 and $355,000 for the years 2013, 2012 and 2011, respectively.
	The Company is currently paying medical benefits for certain retired employees. Postretirement medical benefits expense, including amortization of the transition obligation, as applicable, was approximately $24,000 and $23,000 for the years ended December 31, 2012 and 2011, respectively.   The Company did not incur any postretirement medical benefits expense due to an over accrual reversal in 2013.
	The following table sets forth the change in the accumulated benefit obligation for the Company’s two postretirement benefit plans described above:
	(Dollars in thousands)
		2013			2012
	Benefit obligation at beginning of period	$	3,382		2,923
	Service cost		336		430
	Interest cost		65		89
	Benefits paid		(142	)	(60	)
	Reversal of excess accrual		(60	)	-
	Benefit obligation at end of period	$	3,581		3,382
	The amounts recognized in the Company’s Consolidated Balance Sheet as of December 31, 2013 and 2012 are shown in the following two tables:
	(Dollars in thousands)
		2013			2012
	Benefit obligation	$	3,581		3,382
	Fair value of plan assets		-		-
	(Dollars in thousands)
		2013			2012
	Funded status	$	(3,581	)	(3,382	)
	Unrecognized prior service cost/benefit		-		-
	Unrecognized net actuarial loss		-		-
	Net amount recognized	$	(3,581	)	(3,382	)
	Unfunded accrued liability	$	(3,581	)	(3,382	)
	Intangible assets		-		-
	Net amount recognized	$	(3,581	)	(3,382	)
	Net periodic benefit cost of the Company’s post retirement benefit plans for the years ended December 31, 2013 and 2012 consisted of the following:
	(Dollars in thousands)
		2013			2012
	Service cost	$	336		430
	Interest cost		65		89
	Net periodic cost	$	401		519
	Weighted average discount rate assumption used to
	determine benefit obligation		5.46%		5.43%
	The Company paid benefits under the two postretirement plans totaling $142,000 and $60,000 during the years ended December 31, 2013 and 2012, respectively.  Information about the expected benefit payments for the Company’s two postretirement benefit plans is as follows:
	(Dollars in thousands)
	Year ending December 31,
	2014	$	205
	2015	$	234
	2016	$	233
	2017	$	262
	2018	$	275
	Thereafter	$	8,648

13_Regulatory_Matters

13. Regulatory Matters	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Regulatory Matters	'
	The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
	Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of capital in relation to both on- and off-balance sheet items at various risk weights. Total capital consists of two tiers of capital. Tier 1 Capital includes common shareholders’ equity and trust preferred securities less adjustments for intangible assets. Tier 2 Capital consists of the allowance for loan losses, up to 1.25% of risk-weighted assets and other adjustments.  Management believes, as of December 31, 2013, that the Company and the Bank meet all capital adequacy requirements to which they are subject.
	As of December 31, 2013, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There have been no conditions or events since that notification that management believes have changed the Bank’s category.
	On July 2, 2013, the FRB approved its final rule on the Basel III capital standards, which implement changes to the regulatory capital framework for banking organizations.  Capital levels at the Company and the Bank currently exceed the new capital requirements, which will be effective on January 1, 2015.
	The Company’s and the Bank’s actual capital amounts and ratios are presented below:
	(Dollars in thousands)
		Actual			For Capital		To Be Well
					Adequacy Purposes		Capitalized Under
							Prompt Corrective
							Action Provisions
		Amount		Ratio	Amount	Ratio	Amount	Ratio
	As of December 31, 2013:
	Total Capital (to Risk-Weighted Assets)
	Consolidated	$	114,185	16.14%	56,582	8.00%	N/A	N/A
	Bank	$	110,935	15.73%	56,412	8.00%	70,515	10.00%
	Tier 1 Capital (to Risk-Weighted Assets)
	Consolidated	$	104,890	14.83%	28,291	4.00%	N/A	N/A
	Bank	$	101,733	14.43%	28,206	4.00%	42,309	6.00%
	Tier 1 Capital (to Average Assets)
	Consolidated	$	104,890	10.08%	41,622	4.00%	N/A	N/A
	Bank	$	101,733	9.79%	41,584	4.00%	51,981	5.00%
	As of December 31, 2012:
	Total Capital (to Risk-Weighted Assets)
	Consolidated	$	121,246	17.34%	55,928	8.00%	N/A	N/A
	Bank	$	117,453	16.84%	55,784	8.00%	69,730	10.00%
	Tier 1 Capital (to Risk-Weighted Assets)
	Consolidated	$	112,135	16.04%	27,964	4.00%	N/A	N/A
	Bank	$	108,379	15.54%	27,892	4.00%	41,838	6.00%
	Tier 1 Capital (to Average Assets)
	Consolidated	$	112,135	11.12%	40,342	4.00%	N/A	N/A
	Bank	$	108,379	10.76%	40,302	4.00%	50,377	5.00%

14_Shareholders_Equity

14. Shareholders' Equity	12 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
Shareholders' Equity	'
	Shareholders’ equity was $83.7 million as of December 31, 2013, compared to $97.7 million as of December 31, 2012.  This decrease reflects the Company’s repurchase and redemption of its Series A preferred stock combined with a reduction in accumulated other comprehensive income resulting from a decrease in the unrealized gain on investment securities.  The Company received regulatory approval in December 2013 to repurchase and redeem the remaining 12,524 outstanding shares of its Series A preferred stock.  The repurchase and redemption was completed on January 17, 2014 and is reflected on the Company’s Consolidated Balance Sheets as of December 31, 2013.   “Accrued interest payable and other liabilities” at December 31, 2013 includes $12.6 million for the payment to preferred shareholders of principal and accrued dividends on January 17, 2014.
	During 2012, the Company purchased 12,530 shares of the Company’s 25,054 outstanding shares of Series A preferred stock from the UST.  The shares were purchased for $933.36 per share, for a total purchase price of $11,778,576, including $83,575 accrued and unpaid dividends on the Series A preferred stock.  The Company retired the 12,530 shares purchased.  The $834,999 difference between the $12,530,000 face value of the Series A preferred stock retired and the $11,695,001 purchase price of the Series A preferred stock retired was credited to retained earnings effective June 30, 2012.
	During 2012, the Company completed its repurchase of the Warrant to purchase 357,234 shares of the Company’s common stock that was issued to the UST.  The Company repurchased the Warrant for a total price of $425,000.
	The Board of Directors, at its discretion, can issue shares of preferred stock up to a maximum of 5,000,000 shares. The Board of Directors is authorized to determine the number of shares, voting powers, designations, preferences, limitations and relative rights.

15_Other_Operating_Income_and_

15. Other Operating Income and Expense	12 Months Ended
	Dec. 31, 2013
Other Income and Expenses [Abstract]	'
Other Operating Income and Expense	'
	Other operating income for the years ended December 31, 2013, 2012 and 2011 included the following items that exceeded one percent of total revenues at some point during the following three-year period:
	(Dollars in thousands)
		2013		2012	2011
	Visa debit card income	$	2,990	2,092	1,783
	Net appraisal management fee income	$	718	737	375
	Insurance and brokerage commissions	$	661	517	471
	Other operating expense for the years ended December 31, 2013, 2012 and 2011 included the following items that exceeded one percent of total revenues at some point during the following three-year period:
	(Dollars in thousands)
		2013		2012	2011
	Advertising	$	685	695	660
	FDIC insurance	$	864	894	1,061
	Visa debit card expense	$	823	729	658
	Telephone	$	570	554	605
	Foreclosure/OREO expense	$	356	677	904
	Internet banking expense	$	568	593	509
	FHLB advance prepayment penalty	$	530	-	-

16_Fair_Value_of_Financial_Ins

16. Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'
Fair Value of Financial Instruments	'
	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.
	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 carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2013 and 2012 are as follows:
	(Dollars in thousands)
				Fair Value Measurements at December 31, 2013
		Carrying		Level 1	Level 2	Level 3	Total
		Amount
	Assets:
	Cash and cash equivalents	$	76,773	76,773	-	-	76,773
	Investment securities available for sale		297,890	1,689	294,951	1,250	297,890
	Other investments		4,990	-	-	4,990	4,990
	Mortgage loans held for sale		497	-	-	497	497
	Loans, net		607,459	-	-	612,132	612,132
	Cash surrender value of life insurance		13,706	-	13,706	-	13,706
	Liabilities:
	Deposits	$	799,361	-	798,460	-	798,460
	Securities sold under agreements
	to repurchase		45,396	-	45,396	-	45,396
	FHLB borrowings		65,000	-	65,891	-	65,891
	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

17_Peoples_Bancorp_of_North_Ca

17. Peoples Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial Statements	12 Months Ended
	Dec. 31, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract]	'
Peoples Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial Statements	'
	Balance Sheets
	December 31, 2013 and 2012
	(Dollars in thousands)
	Assets	2013			2012
	Cash	$	12,879		324
	Interest-bearing time deposit		-		800
	Investment in subsidiaries		102,113		115,386
	Investment securities available for sale		1,721		1,596
	Other assets		273		260
	Total assets	$	116,986		118,366
	Liabilities and Shareholders' Equity
	Junior subordinated debentures	$	20,619		20,619
	Liabilities		12,648		-
	Shareholders' equity		83,719		97,747
	Total liabilities and shareholders' equity	$	116,986		118,366
	Statements of Earnings
	For the Years Ended December 31, 2013, 2012 and 2011
	(Dollars in thousands)
	Revenues:	2013			2012		2011
	Interest and dividend income	$	13,576		113		226
	Impairment of securities		-		-		(144	)
	Total revenues		13,576		113		82
	Expenses:
	Interest		398		438		407
	Other operating expenses		159		476		190
	Total expenses		557		914		597
	Income/(Loss) before income tax benefit and equity in
	undistributed earnings of subsidiaries		13,019		(801	)	(515	)
	Income tax benefit		84		166		56
	Income/(Loss) before equity in undistributed
	earnings of subsidiaries		13,103		(635	)	(459	)
	Equity in undistributed earnings of subsidiaries		(6,412	)	6,428		5,618
	Net earnings	$	6,691		5,793		5,159
	Statements of Cash Flows
	For the Years Ended December 31, 2013, 2012 and 2011
	(Dollars in thousands)
		2013			2012		2011
	Cash flows from operating activities:
	Net earnings	$	6,691		5,793		5,159
	Adjustments to reconcile net earnings to net
	cash used by operating activities:
	Equity in undistributed earnings of subsidiaries		6,412		(6,428	)	(5,618	)
	Impairment of investment securities		-		-		144
	Change in:
	Other assets		(73	)	-		112
	Accrued income		-		11		(11	)
	Accrued expense		27		41		(216	)
	Other liabilities		12,632		-		-
	Net cash provided (used by) operating activities		25,689		(583	)	(430	)
	Cash flows from investing activities:
	Proceeds from maturities of investment securities available for sale		1		-		-
	Net change in interest-bearing time deposit		800		14,200		2,000
	Net cash provided by investing activities		801		14,200		2,000
	Cash flows from financing activities:
	Cash dividends paid on Series A preferred stock		(734	)	(1,023	)	(1,253	)
	Cash dividends paid on common stock		(677	)	(1,003	)	(443	)
	Preferred stock and warrant repurchase		(12,524	)	(12,122	)	-
	Restricted stock payout		-		-		17
	Proceeds from exercise of stock options		-		539		-
	Net cash used by financing activities		(13,935	)	(13,609	)	(1,679	)
	Net change in cash		12,555		8		(109	)
	Cash at beginning of year		324		316		425
	Cash at end of year	$	12,879		324		316
Noncash investing and financing activities:
Change in unrealized gain on investment securities
available for sale, net	$	77		(46	)	(3	)

1_Summary_of_Significant_Accou1

1. Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Organization	'
	Peoples Bancorp of North Carolina, Inc. (“Bancorp”) received regulatory approval to operate as a bank holding company on July 22, 1999, and became effective August 31, 1999.  Bancorp is primarily regulated by the Board of Governors of the Federal Reserve System, and serves as the one-bank holding company for Peoples Bank (the “Bank”).
	The Bank commenced business in 1912 upon receipt of its banking charter from the North Carolina State Banking Commission (the “SBC”). The Bank is primarily regulated by the SBC and the Federal Deposit Insurance Corporation (the “FDIC”) and undergoes periodic examinations by these regulatory agencies. The Bank, whose main office is in Newton, North Carolina, provides a full range of commercial and consumer banking services primarily in Catawba, Alexander, Lincoln, Mecklenburg, Iredell, Union and Wake counties in North Carolina.
	Peoples Investment Services, Inc. is a wholly-owned subsidiary of the Bank and began operations in 1996 to provide investment and trust services through agreements with an outside party.
	Real Estate Advisory Services, Inc. (“REAS”) is a wholly-owned subsidiary of the Bank and began operations in 1997 to provide real estate appraisal and property management services to individuals and commercial customers of the Bank.
	Community Bank Real Estate Solutions, LLC is a wholly-owned subsidiary of Bancorp and began operations in 2009 as a “clearing house” for appraisal services for community banks.  Other banks are able to contract with Community Bank Real Estate Solutions, LLC to find and engage appropriate appraisal companies in the area where the property is located.
Principles of Consolidation	'
	The consolidated financial statements include the financial statements of Bancorp and its wholly-owned subsidiaries, the Bank and Community Bank Real Estate Solutions, LLC, along with the Bank’s wholly-owned subsidiaries, Peoples Investment Services, Inc. and REAS (collectively called the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation	'
	The accounting principles followed by the Company, and the methods of applying these principles, conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices in the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from these estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses and valuation of real estate acquired in connection with or in lieu of foreclosure on loans.
Cash and Cash Equivalents	'
	Cash, due from banks and interest-bearing deposits are considered cash and cash equivalents for cash flow reporting purposes.
Investment Securities	'
	There are three classifications the Company is able to classify its investment securities: trading, available for sale, or held to maturity. Trading securities are bought and held principally for sale in the near term. Held to maturity securities are those securities for which the Company has the ability and intent to hold until maturity. All other securities not included in trading or held to maturity are classified as available for sale. At December 31, 2013 and 2012, the Company classified all of its investment securities as available for sale.
	Available for sale securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of shareholders’ equity until realized.
	Management evaluates investment securities for other-than-temporary impairment on an annual basis.  A decline in the market value of any investment below cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established.  The decline in value attributed to non-credit related factors is recognized in comprehensive income.
	Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield.  Realized gains and losses for securities classified as available for sale are included in earnings and are derived using the specific identification method for determining the cost of securities sold.
Other Investments	'
	Other investments include equity securities with no readily determinable fair value.  These investments are carried at cost.
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.
Loans	'
	Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding.   The recognition of certain loan origination fee income and certain loan origination costs is deferred when such loans are originated and amortized over the life of the loan.
	A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan will not be collected.  Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent.
	Accrual of interest is discontinued on a loan when management believes, after considering economic conditions and collection efforts, that the borrower’s financial condition is such that collection of interest is doubtful. Interest previously accrued but not collected is reversed against current period earnings.
Allowance for Loan Losses	'
	The allowance for loan losses reflects management’s assessment and estimate of the risks associated with extending credit and its evaluation of the quality of the loan portfolio.  The Bank periodically analyzes the loan portfolio in an effort to review asset quality and to establish an allowance for loan losses that management believes will be adequate in light of anticipated risks and loan losses.  In assessing the adequacy of the allowance, size, quality and risk of loans in the portfolio are reviewed. Other factors considered are:
	·	the Bank’s loan loss experience;
	·	the amount of past due and non-performing loans;
	·	specific known risks;
	·	the status and amount of other past due and non-performing assets;
	·	underlying estimated values of collateral securing loans;
	·	current and anticipated economic conditions; and
	·	other factors which management believes affect the allowance for potential credit losses.
	The allowance for loan losses is comprised of three components: specific reserves, general reserves and unallocated reserves.  After a loan has been identified as impaired, management measures impairment.  When the measure of the impaired loan is less than the recorded investment in the loan, the amount of the impairment is recorded as a specific reserve. These specific reserves are determined on an individual loan basis based on management’s current evaluation of the Bank’s loss exposure for each credit, given the appraised value of any underlying collateral or the present value of projected cash flows for non-collateral dependent loans.  Loans for which specific reserves are provided are excluded from the general allowance calculations as described below.
	The general allowance reflects reserves established under GAAP for collective loan impairment.  These reserves are based upon historical net charge-offs using the greater of the loss experience for the last two, three, four or five year periods.  This charge-off experience may be adjusted to reflect the effects of current conditions.  The Bank considers information derived from its loan risk ratings and external data related to industry and general economic trends in establishing reserves.
	The unallocated allowance is determined through management’s assessment of probable losses that are in the portfolio but are not adequately captured by the other two components of the allowance, including consideration of current economic and business conditions and regulatory requirements. The unallocated allowance also reflects management’s acknowledgement of the imprecision and subjectivity that underlie the modeling of credit risk.  Due to the subjectivity involved in determining the overall allowance, including the unallocated portion, this unallocated portion may fluctuate from period to period based on management’s evaluation of the factors affecting the assumptions used in calculating the allowance.
	Management considers the allowance for loan losses adequate to cover the estimated losses inherent in the Bank’s loan portfolio as of the date of the financial statements. Management believes it has established the allowance in accordance with GAAP and in consideration of the current economic environment. Although management uses the best information available to make evaluations, significant future additions to the allowance may be necessary based on changes in economic and other conditions, thus adversely affecting the operating results of the Company.
	There were no significant changes in the estimation methods or fundamental assumptions used in the evaluation of the allowance for loan losses for the year ended December 31, 2013 as compared to the year ended December 31, 2012.   Revisions, estimates and assumptions may be made in any period in which the supporting factors indicate that loss levels may vary from the previous estimates.
	Effective December 31, 2012, stated income mortgage loans from the Banco de la Gente division of the Bank were analyzed separately from other single family residential loans in the Bank’s loan portfolio.  These loans are first mortgage loans made to the Latino market, primarily in Mecklenburg and surrounding counties.  These loans are non-traditional mortgages in that the customer normally did not have a credit history, so all credit information was accumulated by the loan officers.  These loans were made as stated income loans rather than full documentation loans because the customer may not have had complete documentation on the income supporting the loan.
	Various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require adjustments to the allowance based on their judgments of information available to them at the time of their examinations.  Also, an independent loan review process further assists with evaluating credit quality and assessing potential performance issues.
Mortgage Banking Activities	'
	Mortgage banking income represents net gains from the sale of mortgage loans and fees received from borrowers and loan investors related to the Bank’s origination of single-family residential mortgage loans.
	Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of mortgage loans serviced for others was approximately $2.4 million, $3.1 million and $4.0 million at December 31, 2013, 2012 and 2011, respectively.
	The Bank originates certain fixed rate mortgage loans and commits these loans for sale.  The commitments to originate fixed rate mortgage loans and the commitments to sell these loans to a third party are both derivative contracts.  The fair value of these derivative contracts is immaterial and has no effect on the recorded amounts in the financial statements.
Premises and Equipment	'
	Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is reflected in earnings for the period. The cost of maintenance and repairs that do not improve or extend the useful life of the respective asset is charged to earnings as incurred, whereas significant renewals and improvements are capitalized. The range of estimated useful lives for premises and equipment are generally as follows:
	Buildings and improvements		10 - 50 years
	Furniture and equipment		3 - 10 years
Other Real Estate	'
	Foreclosed assets include all assets received in full or partial satisfaction of a loan.  Foreclosed assets are reported at fair value less estimated selling costs.  Any write-downs at the time of foreclosure are charged to the allowance for loan losses.  Subsequent to foreclosure, valuations are periodically performed by management, and a valuation allowance is established if fair value declines below carrying value.  Costs relating to the development and improvement of the property are capitalized.  Revenues and expenses from operations are included in other expenses.  Changes in the valuation allowance are included in loss on sale and write-down of other real estate.  The balance of other real estate was $1.7 million and $6.3 million at December 31, 2013 and 2012, respectively.
Income Taxes	'
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, the recognition of future tax benefits, such as net operating loss carryforwards, is required to the extent that the realization of such benefits is more likely than not to occur. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date.
	In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities results in a deferred tax asset, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realizability of a deferred tax asset, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies.
	Tax effects from an uncertain tax position can be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.  A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.  Previously recognized tax positions that no longer meet the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met.  The Company assessed the impact of this guidance and determined that it did not have a material impact on the Company’s financial position, results of operations or disclosures.
Derivative Financial Instruments and Hedging Activities	'
	In the normal course of business, the Company enters into derivative contracts to manage interest rate risk by modifying the characteristics of the related balance sheet instruments in order to reduce the adverse effect of changes in interest rates. All material derivative financial instruments are recorded at fair value in the financial statements.  The fair value of derivative contracts related to the origination of fixed rate mortgage loans and the commitments to sell these loans to a third party is immaterial and has no effect on the recorded amounts in the financial statements.
	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.
	On the date a derivative contract is entered into, the Company designates the derivative as a fair value hedge, a cash flow hedge, or a trading instrument. Changes in the fair value of instruments used as fair value hedges are accounted for in the earnings of the period simultaneous with accounting for the fair value change of the item being hedged. Changes in the fair value of the effective portion of cash flow hedges are accounted for in other comprehensive income rather than earnings. Changes in fair value of instruments that are not intended as a hedge are accounted for in the earnings of the period of the change.
	If a derivative instrument designated as a fair value hedge is terminated or the hedge designation removed, the difference between a hedged item’s then carrying amount and its face amount is recognized into income over the original hedge period. Likewise, if a derivative instrument designated as a cash flow hedge is terminated or the hedge designation removed, related amounts accumulated in other accumulated comprehensive income are reclassified into earnings over the original hedge period during which the hedged item affects income.
	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.
	The Company formally documents all hedging relationships, including an assessment that the derivative instruments are expected to be highly effective in offsetting the changes in fair values or cash flows of the hedged items.
Advertising Costs	'
	Advertising costs are expensed as incurred.
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.   A summary of the stock option activity in the 1999 Plan is presented below:
	Stock Option Activity
	For the Years Ended December 31, 2013, 2012 and 2011
		Shares		Weighted		Weighted Average Remaining			Aggregate
				Average Option		Contractual Term (in			Intrinsic
				Price Per Share		years)			Value
									(Dollars in
									thousands)
	Outstanding, December 31, 2010	150,071		$	8.32
	Granted during the period	-		$	-
	Expired during the period	(71,054	)	$	8.71
	Forfeited during the period	-		$	-
	Exercised during the period	-		$	-
	Outstanding, December 31, 2011	79,017		$	7.97
	Granted during the period	-		$	-
	Expired during the period	-		$	-
	Forfeited during the period	(6,052	)	$	8.89
	Exercised during the period	(69,335	)	$	7.77
	Outstanding, December 31, 2012	3,630		$	10.31
	Granted during the period	-		$	-
	Expired during the period	-		$	-
	Forfeited during the period	-		$	-
	Exercised during the period	-		$	-
	Outstanding, December 31, 2013	3,630		$	10.31	0.35		$	14.05
	Exercisable, December 31, 2013	3,630		$	10.31	0.35		$	14.05
	Options outstanding at December 31, 2013 are exercisable at $10.31.  Such options have a weighted average remaining contractual life of less than one year.  No options were granted during the years ended December 31, 2013, 2012 and 2011.  No options were exercised during the years ended December 31, 2013 and 2011.  69,335 options were exercised during the year ended December 31, 2012.
	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 December 31, 2013, there was no unrecognized compensation expense related to the 2007 and 2008 restricted stock unit grants granted under the 1999 Plan.
	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 December 31, 2013, the total unrecognized compensation expense related to the restricted stock unit grants under the 2009 Plan was $584,000.
	The Company recognized compensation expense for restricted stock awards granted under the 2009 Plan of $173,000 and $42,000 for the years ended December 31, 2013 and 2012, respectively.  The Company recognized compensation expense for restricted stock awards granted under the 1999 Plan of $7,000 for the year ended December 31, 2011.
Net Earnings Per 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 reconciliations of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the years ended December 31, 2013, 2012 and 2011 are as follows:
	For the year ended December 31, 2013:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share Amount
					Shares
	Basic earnings per common share	$	6,035		5,613,495	$	1.08
	Effect of dilutive securities:
	Stock options		-		9,725
	Diluted earnings per common share	$	6,035		5,623,220	$	1.07
	For the year ended December 31, 2012:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
					Shares	Amount
	Basic earnings per common share	$	4,783		5,559,401	$	0.86
	Effect of dilutive securities:
	Stock options		-		3,206
	Diluted earnings per common share	$	4,783		5,562,607	$	0.86
	For the year ended December 31, 2011:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
					Shares	Amount
	Basic earnings per common share	$	3,766		5,542,548	$	0.68
	Effect of dilutive securities:
	Stock options		-		1,301
	Diluted earnings per common share	$	3,766		5,543,849	$	0.68
Recent Accounting Pronouncements	'
	In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.  ASU No. 2014-04 provides additional guidance to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized.  ASU No. 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  The adoption of this guidance is not expected to 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 2011 and 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation.

1_Summary_of_Significant_Accou2

1. Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2013
Summary Of Significant Accounting Policies Tables	'
Stock Option Activity	'
	Stock Option Activity
	For the Years Ended December 31, 2013, 2012 and 2011
		Shares		Weighted		Weighted Average Remaining			Aggregate
				Average Option		Contractual Term (in			Intrinsic
				Price Per Share		years)			Value
									(Dollars in
									thousands)
	Outstanding, December 31, 2010	150,071		$	8.32
	Granted during the period	-		$	-
	Expired during the period	(71,054	)	$	8.71
	Forfeited during the period	-		$	-
	Exercised during the period	-		$	-
	Outstanding, December 31, 2011	79,017		$	7.97
	Granted during the period	-		$	-
	Expired during the period	-		$	-
	Forfeited during the period	(6,052	)	$	8.89
	Exercised during the period	(69,335	)	$	7.77
	Outstanding, December 31, 2012	3,630		$	10.31
	Granted during the period	-		$	-
	Expired during the period	-		$	-
	Forfeited during the period	-		$	-
	Exercised during the period	-		$	-
	Outstanding, December 31, 2013	3,630		$	10.31	0.35		$	14.05
	Exercisable, December 31, 2013	3,630		$	10.31	0.35		$	14.05
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share	'
	For the year ended December 31, 2013:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share Amount
					Shares
	Basic earnings per common share	$	6,035		5,613,495	$	1.08
	Effect of dilutive securities:
	Stock options		-		9,725
	Diluted earnings per common share	$	6,035		5,623,220	$	1.07
	For the year ended December 31, 2012:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
					Shares	Amount
	Basic earnings per common share	$	4,783		5,559,401	$	0.86
	Effect of dilutive securities:
	Stock options		-		3,206
	Diluted earnings per common share	$	4,783		5,562,607	$	0.86
	For the year ended December 31, 2011:	Net Earnings Available to Common Shareholders (Dollars in thousands)			Common	Per Share
					Shares	Amount
	Basic earnings per common share	$	3,766		5,542,548	$	0.68
	Effect of dilutive securities:
	Stock options		-		1,301
	Diluted earnings per common share	$	3,766		5,543,849	$	0.68

2_Investment_Securities_Tables

2. Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2013
Investment Securities Tables	'
Investment securities available for sale	'
	(Dollars in thousands)
		31-Dec-13
		Amortized		Gross	Gross	Estimated Fair Value
		Cost		Unrealized	Unrealized
				Gains	Losses
	Mortgage-backed securities	$	123,706	1,040	769	123,977
	U.S. Government
	sponsored enterprises		22,115	97	69	22,143
	State and political subdivisions		148,468	1,987	5,087	145,368
	Corporate bonds		3,522	11	70	3,463
	Trust preferred securities		1,250	-	-	1,250
	Equity securities		748	941	-	1,689
	Total	$	299,809	4,076	5,995	297,890
	(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 debt securities with unrealized losses	'
	(Dollars in thousands)
		31-Dec-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	$	40,857	691	10,128	78	50,985	769
	U.S. Government
	sponsored enterprises		9,714	69	-	-	9,714	69
	State and political subdivisions		77,187	4,863	1,824	224	79,011	5,087
	Corporate bonds		1,984	16	511	54	2,495	70
	Total	$	129,742	5,639	12,463	356	142,205	5,995
	(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	'
	31-Dec-13
	(Dollars in thousands)
			Amortized Cost	Estimated Fair
				Value
	Due within one year	$	4,019	4,048
	Due from one to five years		31,725	32,103
	Due from five to ten years		119,313	115,878
	Due after ten years		20,298	20,195
	Mortgage-backed securities		123,706	123,977
	Equity securities		748	1,689
	Total	$	299,809	297,890
Available for sale securities measured at fair value on a recurring basis	'
	(Dollars in thousands)
		31-Dec-13
		Fair Value Measurements		Level 1	Level 2	Level 3
				Valuation	Valuation	Valuation
	Mortgage-backed securities	$	123,977	-	123,977	-
	U.S. Government
	sponsored enterprises	$	22,143	-	22,143	-
	State and political subdivisions	$	145,368	-	145,368	-
	Corporate bonds	$	3,463	-	3,463	-
	Trust preferred securities	$	1,250	-	-	1,250
	Equity securities	$	1,689	1,689	-	-
	(Dollars in thousands)
		31-Dec-12
		Fair Value Measurements		Level 1	Level 2	Level 3
				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	$	-

3_Loans_Tables

3. Loans (Tables)	12 Months Ended
	Dec. 31, 2013
Loans Tables	'
Major classifications of loans	'
	(Dollars in thousands)
		31-Dec-13			31-Dec-12
	Real estate loans
	Construction and land development	$	63,742		73,176
	Single-family residential		195,975		195,003
	Single-family residential -
	Banco de la Gente stated income		49,463		52,019
	Commercial		209,287		200,633
	Multifamily and farmland		11,801		8,951
	Total real estate loans		530,268		529,782
	Loans not secured by real estate
	Commercial loans		68,047		64,295
	Farm loans		19		11
	Consumer loans		9,593		10,148
	All other loans		13,033		15,738
	Total loans		620,960		619,974
	Less allowance for loan losses		13,501		14,423
	Total net loans	$	607,459		605,551
Age analysis of past due loans, by loan type	'
	31-Dec-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	$	3,416		5,426		8,842		54,900		63,742		-
	Single-family residential		4,518		1,555		6,073		189,902		195,975		-
	Single-family residential -
	Banco de la Gente stated income		9,833		1,952		11,785		37,678		49,463		881
	Commercial		1,643		486		2,129		207,158		209,287		-
	Multifamily and farmland		177		-		177		11,624		11,801		-
	Total real estate loans		19,587		9,419		29,006		501,262		530,268		881
	Loans not secured by real estate
	Commercial loans		424		29		453		67,594		68,047		-
	Farm loans		-		-		-		19		19		-
	Consumer loans		181		3		184		9,409		9,593		1
	All other loans		-		-		-		13,033		13,033		-
	Total loans	$	20,192		9,451		29,643		591,317		620,960		882
	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)
		31-Dec-13			31-Dec-12
	Real estate loans
	Construction and land development	$	6,546		9,253
	Single-family residential		2,980		2,491
	Single-family residential -
	Banco de la Gente stated income		1,990		2,232
	Commercial		2,043		3,263
	Total real estate loans		13,559		17,239
	Loans not secured by real estate
	Commercial loans		250		344
	Consumer loans		27		47
	Total	$	13,836		17,630
Impaired loans	'
	The following tables present the Bank’s impaired loans as of December 31, 2013 and 2012:
	(Dollars in thousands)
		Unpaid			Recorded Investment		Recorded Investment		Recorded Investment		Related Allowance		Average Outstanding Impaired
		Contractual Principal			With No Allowance		With		in Impaired				Loans
		Balance					Allowance		Loans
	Real estate loans
	Construction and land development	$	9,861		6,293		868		7,161		53		8,289
	Single-family residential		7,853		1,428		5,633		7,061		123		7,859
	Single-family residential -
	Banco de la Gente stated income		22,034		-		21,242		21,242		1,300		21,242
	Commercial		5,079		3,045		1,489		4,534		182		4,171
	Multifamily and farmland		177		-		177		177		1		184
	Total impaired real estate loans		45,004		10,766		29,409		40,175		1,659		41,745
	Loans not secured by real estate
	Commercial loans		999		257		724		981		15		826
	Consumer loans		302		264		35		299		1		247
	Total impaired loans	$	46,305		11,287		30,168		41,455		1,675		42,818
	31-Dec-12
	(Dollars in thousands)
		Unpaid			Recorded Investment		Recorded Investment		Recorded Investment		Related Allowance		Average Outstanding Impaired
		Contractual Principal			With No Allowance		With		in Impaired				Loans
		Balance					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
Fair value measurements for impaired loans and other real estate on a non-recurring basis	'
	(Dollars in thousands)
		Fair Value Measurements December 31, 2013			Level 1		Level 2		Level 3		Total Gains/(Losses) for
					Valuation		Valuation		Valuation		the Year Ended
											31-Dec-13
	Impaired loans	$	39,780		-		-		39,780		(3,207	)
	Other real estate	$	1,679		-		-		1,679		(581	)
	(Dollars in thousands)
		Fair Value Measurements December 31, 2012			Level 1		Level 2		Level 3		Total Gains/(Losses) for
					Valuation		Valuation		Valuation		the Year Ended
											31-Dec-12
	Impaired loans	$	46,738		-		-		46,738		(6,875	)
	Other real estate	$	6,254		-		-		6,254		(1,136	)
Changes in the allowance for loan losses	'
	Changes in the allowance for loan losses for the year ended December 31, 2013 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
	Allowance for loan losses:
	Beginning balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
	Charge-offs		(777	)	(1,724	)	(272	)	(445	)	-		(502	)	-		(652	)	-		(4,372	)
	Recoveries		377		111		141		50		-		44		-		143		-		866
	Provision		(781	)	1,505		(4	)	565		9		439		-		509		342		2,584
	Ending balance	$	3,218		3,123		1,863		2,219		37		1,069		-		245		1,727		13,501
	Ending balance: individually
	evaluated for impairment	$	-		39		1,268		171		-		-		-		-		-		1,478
	Ending balance: collectively
	evaluated for impairment		3,218		3,084		595		2,048		37		1,069		-		245		1,727		12,023
	Ending balance	$	3,218		3,123		1,863		2,219		37		1,069		-		245		1,727		13,501
	Loans:
	Ending balance	$	63,742		195,975		49,463		209,287		11,801		68,047		19		22,626		-		620,960
	Ending balance: individually
	evaluated for impairment	$	6,293		3,127		19,958		3,767		-		256		-		265		-		33,666
	Ending balance: collectively
	evaluated for impairment	$	57,449		192,848		29,505		205,520		11,801		67,791		19		22,361		-		587,294
	Changes in the allowance for loan losses for the year ended December 31, 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
	Allowance for loan losses:
	Beginning balance	$	7,182		3,253		2,104		1,731		13		1,029		-		255		1,037		16,604
	Charge-offs		(4,728	)	(886	)	(668	)	(937	)	-		(555	)	-		(557	)	-		(8,331	)
	Recoveries		528		72		-		374		-		104		-		148		-		1,226
	Provision		1,417		792		562		881		15		510		-		399		348		4,924
	Ending balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
	Ending balance: individually
	evaluated for impairment	$	24		84		1,254		-		-		-		-		-		-		1,362
	Ending balance: collectively
	evaluated for impairment		4,375		3,147		744		2,049		28		1,088		-		245		1,385		13,061
	Ending balance	$	4,399		3,231		1,998		2,049		28		1,088		-		245		1,385		14,423
	Loans:
	Ending balance	$	73,176		195,003		52,019		200,633		8,951		64,295		11		25,886		-		619,974
	Ending balance: individually
	evaluated for impairment	$	11,961		3,885		20,024		4,569		-		346		-		-		-		40,785
	Ending balance: collectively
	evaluated for impairment	$	61,215		191,118		31,995		196,064		8,951		63,949		11		25,886		-		579,189
	Changes in the allowance for loan losses for the year ended December 31, 2011 were as follows:
	(Dollars in thousands)
		Real Estate Loans
		Construction and Land Development			Single-		Single-		Commercial		Multifamily and		Commercial		Consumer		Unallocated		Total
					Family Residential		Family Residential - Banco de la Gente				Farmland				and All
							Stated								Other
							Income
	Allowance for loan losses:
	Beginning balance	$	5,774		3,992		2,105		1,409		17		1,174		430		592		15,493
	Charge-offs		(7,164	)	(2,233	)	(692	)	(1,271	)	-		(314	)	(586	)	-		(12,260	)
	Recoveries		241		184		17		24		-		121		152		-		739
	Provision		8,331		1,310		674		1,569		(4	)	48		259		445		12,632
	Ending balance	$	7,182		3,253		2,104		1,731		13		1,029		255		1,037		16,604
	Ending balance: individually
	evaluated for impairment	$	1,250		46		1,243		-		-		-		-		-		2,539
	Ending balance: collectively
	evaluated for impairment		5,932		3,207		861		1,731		13		1,029		255		1,037		14,065
Ending balance	$	7,182		3,253		2,104		1,731		13		1,029		255		1,037		16,604
Loans:
Ending balance	$	93,812		212,993		54,058		214,415		4,793		60,646		29,780		-		670,497
Ending balance: individually
evaluated for impairment	$	20,280		2,352		18,309		3,845		-		-		-		-		44,786
Ending balance: collectively
evaluated for impairment	$	73,532		210,641		35,749		210,570		4,793		60,646		29,780		-		625,711
Credit risk profile of each loan type based on internally assigned risk grade	'
	The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of December 31, 2013 and 2012.
	31-Dec-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	$	7		15,036		-		-		-		365		-		1,270		-		16,678
	2- High Quality		7,852		60,882		-		33,340		715		8,442		-		3,519		2,139		116,889
	3- Good Quality		22,899		73,118		22,255		123,604		7,882		44,353		19		4,061		8,565		306,756
	4- Management Attention		14,464		34,090		8,369		42,914		286		13,704		-		358		2,329		116,514
	5- Watch		8,163		6,806		8,113		5,190		2,741		320		-		50		-		31,383
	6- Substandard		10,357		6,043		10,726		4,239		177		863		-		330		-		32,735
	7- Doubtful		-		-		-		-		-		-		-		-		-		-
	8- Loss		-		-		-		-		-		-		-		5		-		5
	Total	$	63,742		195,975		49,463		209,287		11,801		68,047		19		9,593		13,033		620,960
	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 December 31, 2013.
	31-Dec-13
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	15		$	10,222		6,528
	Single-family residential	20			1,281		1,754
	Single-family residential -
	Banco de la Gente stated income	91			10,038		8,605
	Commercial	10			3,775		4,272
	Multifamily and farmland	1			322		177
	Total real estate TDR loans	137			25,638		21,336
	Loans not secured by real estate
	Commercial loans	7			519		344
	Consumer loans	3			284		266
	Total TDR loans	147		$	26,441		21,946
	The following table presents an analysis of 2013 loan modifications included in the December 31, 2013 TDR table above.
	Year ended December 31, 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		824
	Single-family residential -
	Banco de la Gente stated income	7			796		788
	Total real estate TDR loans	9			1,637		1,612
	Total TDR loans	9		$	1,637		1,612
	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
	The following table presents an analysis of 2012 loan modifications included in the December 31, 2012 TDR table above.
	Year ended December 31, 2012
	(Dollars in thousands)
		Number of Contracts		Pre-Modification Outstanding Recorded			Post-Modification Outstanding Recorded
				Investment			Investment
	Real estate loans
	Single-family residential	5		$	674		673
	Single-family residential -
	Banco de la Gente stated income	20			2,046		1,992
	Total real estate TDR loans	25			2,720		2,665
	Loans not secured by real estate
	Commercial loans	1			14		13
	Total TDR loans	26		$	2,734		2,678

4_Premises_and_Equipment_Table

4. Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Summary of premises and equipment	'
	(Dollars in thousands)
		2013		2012
	Land	$	3,667	3,657
	Buildings and improvements		15,126	14,815
	Furniture and equipment		16,239	17,660
	Total premises and equipment		35,032	36,132
	Less accumulated depreciation		18,674	20,258
	Total net premises and equipment	$	16,358	15,874

5_Time_Deposits_Tables

5. Time Deposits (Tables)	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Scheduled maturities of time deposits	'
	(Dollars in thousands)
	2014	$	127,036
	2015		48,913
	2016		22,318
	2017		10,155
	2018 and thereafter		8,781
	Total	$	217,203

6_Federal_Home_Loan_Bank_and_F1

6. Federal Home Loan Bank and Federal Reserve Bank Borrowings (Tables)	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Borrowings from the FHLB outstanding	'
	(Dollars in thousands)
	Maturity Date	Call Date	Rate	Rate Type	Amount
	25-Mar-19	N/A	4.26%	Convertible		5,000
	12-Nov-14	N/A	2.23%	Fixed Rate Hybrid		5,000
	17-Oct-16	N/A	3.73%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.41%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.65%	Adjustable Rate Hybrid		15,000
	17-Oct-18	N/A	3.43%	Adjustable Rate Hybrid		5,000
	17-Oct-18	N/A	3.48%	Adjustable Rate Hybrid		5,000
	8-May-18	N/A	1.80%	Floating to Fixed		5,000
	8-May-18	N/A	3.44%	Floating to Fixed		15,000
					$	65,000

8_Income_Taxes_Tables

8. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Components of Income Tax Expense (Benefit)	'
	(Dollars in thousands)
		2013			2012		2011
	Current	$	1,345		1,800		2,141
	Deferred		534		(213	)	(678	)
	Total	$	1,879		1,587		1,463
Schedule of Effective Income Tax Rate Reconciliation	'
	(Dollars in thousands)
		2013			2012		2011
	Pre-tax income at statutory rate (34%)	$	2,914		2,509		2,251
	Differences:
	Tax exempt interest income		(1,481	)	(1,168	)	(1,052	)
	Nondeductible interest and other expense		141		52		62
	Cash surrender value of life insurance		(147	)	(149	)	(101	)
	State taxes, net of federal benefits		428		324		233
	Nondeductible capital losses		-		-		49
	Other, net		24		19		21
	Total	$	1,879		1,587		1,463
Schedule of Deferred Tax Assets and Liabilities	'
	(Dollars in thousands)
		2013			2012
	Deferred tax assets:
	Allowance for loan losses	$	5,205		5,560
	Accrued retirement expense		1,489		1,409
	Other real estate		218		628
	Other		413		362
	Unrealized loss on available for sale securities		747		-
	Total gross deferred tax assets		8,072		7,959
	Deferred tax liabilities:
	Deferred loan fees		581		794
	Premises and equipment		530		417
	Unrealized gain on available for sale securities		-		3,581
	Total gross deferred tax liabilities		1,111		4,792
	Net deferred tax asset	$	6,961		3,167

9_Related_Party_Transactions_T

9. Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
Summary of activity for related party loans	'
	(Dollars in thousands)
	Beginning balance	$	5,385
	New loans		3,409
	Repayments		(4,454	)
	Ending balance	$	4,340

10_Commitments_and_Contingenci1

10. Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Future Minimum Rental Payments for Operating Leases	'
	(Dollars in thousands)
	Year ending December 31,
	2014	$	549
	2015		517
	2016		519
	2017		469
	2018		436
	Thereafter		1,253
	Total minimum obligation	$	3,743
Financial instruments with credit risk	'
	(Dollars in thousands)
		Contractual Amount
		2013		2012
	Financial instruments whose contract amount represent credit risk:
	Commitments to extend credit	$	146,243	133,919
	Standby letters of credit and financial guarantees written	$	4,361	3,297

12_Employee_and_Director_Benef1

12. Employee and Director Benefit Programs (Tables)	12 Months Ended
	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]	'
Change in accumulated benefit obligation	'
	(Dollars in thousands)
		2013			2012
	Benefit obligation at beginning of period	$	3,382		2,923
	Service cost		336		430
	Interest cost		65		89
	Benefits paid		(142	)	(60	)
	Reversal of excess accrual		(60	)	-
	Benefit obligation at end of period	$	3,581		3,382
Amounts recognized in the Consolidated Balance Sheet	'
	(Dollars in thousands)
		2013			2012
	Benefit obligation	$	3,581		3,382
	Fair value of plan assets		-		-
	(Dollars in thousands)
		2013			2012
	Funded status	$	(3,581	)	(3,382	)
	Unrecognized prior service cost/benefit		-		-
	Unrecognized net actuarial loss		-		-
	Net amount recognized	$	(3,581	)	(3,382	)
	Unfunded accrued liability	$	(3,581	)	(3,382	)
	Intangible assets		-		-
	Net amount recognized	$	(3,581	)	(3,382	)
Schedule of Net Benefit Costs	'
	(Dollars in thousands)
		2013			2012
	Service cost	$	336		430
	Interest cost		65		89
	Net periodic cost	$	401		519
	Weighted average discount rate assumption used to
	determine benefit obligation		5.46%		5.43%
Schedule of Expected Benefit Payments	'
	(Dollars in thousands)
	Year ending December 31,
	2014	$	205
	2015	$	234
	2016	$	233
	2017	$	262
	2018	$	275
	Thereafter	$	8,648

13_Regulatory_Matters_Tables

13. Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2013
Banking and Thrift [Abstract]	'
Bank's actual capital amounts and ratios	'
	(Dollars in thousands)
		Actual			For Capital		To Be Well
					Adequacy Purposes		Capitalized Under
							Prompt Corrective
							Action Provisions
		Amount		Ratio	Amount	Ratio	Amount	Ratio
	As of December 31, 2013:
	Total Capital (to Risk-Weighted Assets)
	Consolidated	$	114,185	16.14%	56,582	8.00%	N/A	N/A
	Bank	$	110,935	15.73%	56,412	8.00%	70,515	10.00%
	Tier 1 Capital (to Risk-Weighted Assets)
	Consolidated	$	104,890	14.83%	28,291	4.00%	N/A	N/A
	Bank	$	101,733	14.43%	28,206	4.00%	42,309	6.00%
	Tier 1 Capital (to Average Assets)
	Consolidated	$	104,890	10.08%	41,622	4.00%	N/A	N/A
	Bank	$	101,733	9.79%	41,584	4.00%	51,981	5.00%
	As of December 31, 2012:
	Total Capital (to Risk-Weighted Assets)
	Consolidated	$	121,246	17.34%	55,928	8.00%	N/A	N/A
	Bank	$	117,453	16.84%	55,784	8.00%	69,730	10.00%
	Tier 1 Capital (to Risk-Weighted Assets)
	Consolidated	$	112,135	16.04%	27,964	4.00%	N/A	N/A
	Bank	$	108,379	15.54%	27,892	4.00%	41,838	6.00%
	Tier 1 Capital (to Average Assets)
	Consolidated	$	112,135	11.12%	40,342	4.00%	N/A	N/A
	Bank	$	108,379	10.76%	40,302	4.00%	50,377	5.00%

15_Other_Operating_Income_and_1

15. Other Operating Income and Expense (Tables)	12 Months Ended
	Dec. 31, 2013
Other Income and Expenses [Abstract]	'
Other operating income and expense	'
	(Dollars in thousands)
		2013		2012	2011
	Visa debit card income	$	2,990	2,092	1,783
	Net appraisal management fee income	$	718	737	375
	Insurance and brokerage commissions	$	661	517	471
	Other operating expense for the years ended December 31, 2013, 2012 and 2011 included the following items that exceeded one percent of total revenues at some point during the following three-year period:
	(Dollars in thousands)
		2013		2012	2011
	Advertising	$	685	695	660
	FDIC insurance	$	864	894	1,061
	Visa debit card expense	$	823	729	658
	Telephone	$	570	554	605
	Foreclosure/OREO expense	$	356	677	904
	Internet banking expense	$	568	593	509
	FHLB advance prepayment penalty	$	530	-	-

16_Fair_Value_of_Financial_Ins1

16. Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'
Carrying amount and estimated fair value of the Company's financial instruments	'
	(Dollars in thousands)
				Fair Value Measurements at December 31, 2013
		Carrying		Level 1	Level 2	Level 3	Total
		Amount
	Assets:
	Cash and cash equivalents	$	76,773	76,773	-	-	76,773
	Investment securities available for sale		297,890	1,689	294,951	1,250	297,890
	Other investments		4,990	-	-	4,990	4,990
	Mortgage loans held for sale		497	-	-	497	497
	Loans, net		607,459	-	-	612,132	612,132
	Cash surrender value of life insurance		13,706	-	13,706	-	13,706
	Liabilities:
	Deposits	$	799,361	-	798,460	-	798,460
	Securities sold under agreements
	to repurchase		45,396	-	45,396	-	45,396
	FHLB borrowings		65,000	-	65,891	-	65,891
	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

17_Peoples_Bancorp_of_North_Ca1

17. Peoples Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract]	'
Balance Sheets	'
	Balance Sheets
	December 31, 2013 and 2012
	(Dollars in thousands)
	Assets	2013			2012
	Cash	$	12,879		324
	Interest-bearing time deposit		-		800
	Investment in subsidiaries		102,113		115,386
	Investment securities available for sale		1,721		1,596
	Other assets		273		260
	Total assets	$	116,986		118,366
	Liabilities and Shareholders' Equity
	Junior subordinated debentures	$	20,619		20,619
	Liabilities		12,648		-
	Shareholders' equity		83,719		97,747
	Total liabilities and shareholders' equity	$	116,986		118,366
Statements of Earnings	'
	Statements of Earnings
	For the Years Ended December 31, 2013, 2012 and 2011
	(Dollars in thousands)
	Revenues:	2013			2012		2011
	Interest and dividend income	$	13,576		113		226
	Impairment of securities		-		-		(144	)
	Total revenues		13,576		113		82
	Expenses:
	Interest		398		438		407
	Other operating expenses		159		476		190
	Total expenses		557		914		597
	Income/(Loss) before income tax benefit and equity in
	undistributed earnings of subsidiaries		13,019		(801	)	(515	)
	Income tax benefit		84		166		56
	Income/(Loss) before equity in undistributed
	earnings of subsidiaries		13,103		(635	)	(459	)
	Equity in undistributed earnings of subsidiaries		(6,412	)	6,428		5,618
	Net earnings	$	6,691		5,793		5,159
Statements of Cash Flows	'
	Statements of Cash Flows
	For the Years Ended December 31, 2013, 2012 and 2011
	(Dollars in thousands)
		2013			2012		2011
	Cash flows from operating activities:
	Net earnings	$	6,691		5,793		5,159
	Adjustments to reconcile net earnings to net
	cash used by operating activities:
	Equity in undistributed earnings of subsidiaries		6,412		(6,428	)	(5,618	)
	Impairment of investment securities		-		-		144
	Change in:
	Other assets		(73	)	-		112
	Accrued income		-		11		(11	)
	Accrued expense		27		41		(216	)
	Other liabilities		12,632		-		-
	Net cash provided (used by) operating activities		25,689		(583	)	(430	)
	Cash flows from investing activities:
	Proceeds from maturities of investment securities available for sale		1		-		-
	Net change in interest-bearing time deposit		800		14,200		2,000
	Net cash provided by investing activities		801		14,200		2,000
	Cash flows from financing activities:
	Cash dividends paid on Series A preferred stock		(734	)	(1,023	)	(1,253	)
	Cash dividends paid on common stock		(677	)	(1,003	)	(443	)
	Preferred stock and warrant repurchase		(12,524	)	(12,122	)	-
	Restricted stock payout		-		-		17
	Proceeds from exercise of stock options		-		539		-
	Net cash used by financing activities		(13,935	)	(13,609	)	(1,679	)
	Net change in cash		12,555		8		(109	)
	Cash at beginning of year		324		316		425
	Cash at end of year	$	12,879		324		316
	Noncash investing and financing activities:
	Change in unrealized gain on investment securities
	available for sale, net	$	77		(46	)	(3	)

1_Summary_of_Significant_Accou3

1. Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Number of Options	'	'	'
Number of Options Outstanding, Beginning	3,630	79,017	150,071
Number of Options Granted	0	0	0
Number of Options Expired	0	0	-71,054
Number of Options Forfeited	0	-6,052	0
Number of Options Exercised	0	-69,335	0
Number of Options Outstanding, Ending	3,630	3,630	79,017
Exercisable, December 31, 2013	3,630	'	'
Weighted Average Exercise Price	'	'	'
Weighted Average Exercise Price Outstanding, Beginning	$10.31	$7.97	$8.32
Weighted Average Exercise Price Granted	$0	$0	$0
Weighted Average Exercise Price Expired	$0	$0	$8.71
Weighted Average Exercise Price Forfeited	$0	$8.89	$0
Weighted Average Exercise Price Exercised	$0	$7.77	$0
Weighted Average Exercise Price Outstanding, Ending	$10.31	$10.31	$7.97
Weighted Average Exercise Price Exercisable, December 31, 2013	$10.31	'	'
Weighted Average Remaining Contractual Life (in years)	'	'	'
Weighted Average Remaining Contractual Term (in years) Outstanding	'4 months 6 days	'	'
Weighted Average Remaining Contractual Term (in years) Exercisable, December 31, 2012	'4 months 6 days	'	'
Aggregate Intrinsic Value	'	'	'
Options Outstanding, Intrinsic Value	$14,050	'	'
Options Exercisable, Intrinsic Value	$14,050	'	'

1_Summary_of_Significant_Accou4

1. Summary of Significant Accounting Policies (Details 1) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net Earnings Available to Common Shareholders	'	'	'
Basic earnings	$6,035	$4,783	$3,766
Effect of dilutive securities: Stock options	0	0	0
Diluted earnings	$6,035	$4,783	$3,766
Common Shares	'	'	'
Basic earnings per common share (in shares)	5,613,495	5,559,401	5,542,548
Effect of dilutive securities: Stock options (in shares)	9,725	3,206	1,301
Diluted earnings per common share (in shares)	5,623,220	5,562,607	5,543,849
Per Share Amount	'	'	'
Basic earnings per common share (in dollars per share)	$1.08	$0.86	$0.68
Diluted earnings per common share (in dollars per share)	$1.07	$0.86	$0.68

1_Summary_of_Significant_Accou5

1. Summary of Significant Accounting Policies (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies Details Narrative	'	'	'
Unpaid principal balances of mortgage loans serviced for others	$2,400	$3,100	$4,000
Balance of other real estate	1,679	6,254	'
Compensation expense for restricted stock awards	173	42	7
Unrecognized compensation expense	$584	'	'

2_Investment_Securities_Detail

2. Investment Securities (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investment securities available for sale	'	'
Estimated Fair Value	$297,890	$297,823
Mortgage-backed securities	'	'
Investment securities available for sale	'	'
Amortized Cost	123,706	146,755
Gross Unrealized Gains	1,040	1,875
Gross Unrealized Losses	769	606
Estimated Fair Value	123,977	148,024
U.S. Government sponsored enterprises	'	'
Investment securities available for sale	'	'
Amortized Cost	22,115	18,714
Gross Unrealized Gains	97	203
Gross Unrealized Losses	69	80
Estimated Fair Value	22,143	18,837
State and political subdivisions	'	'
Investment securities available for sale	'	'
Amortized Cost	148,468	118,591
Gross Unrealized Gains	1,987	7,171
Gross Unrealized Losses	5,087	104
Estimated Fair Value	145,368	125,658
Corporate bonds	'	'
Investment securities available for sale	'	'
Amortized Cost	3,522	2,571
Gross Unrealized Gains	11	19
Gross Unrealized Losses	70	4
Estimated Fair Value	3,463	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	941	720
Gross Unrealized Losses	0	0
Estimated Fair Value	1,689	1,468
Total	'	'
Investment securities available for sale	'	'
Amortized Cost	299,809	288,629
Gross Unrealized Gains	4,076	9,988
Gross Unrealized Losses	5,995	794
Estimated Fair Value	$297,890	$297,823

2_Investment_securities_Contin

2. Investment securities, Continuous Unrealized Loss Position (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	$129,742	$62,053
Less than 12 Months, Unrealized Losses	5,639	656
12 Months or More, Fair Value	12,463	12,913
12 Months or More, Unrealized Losses	356	138
Total, Fair Value	142,205	74,966
Total, Unrealized Losses	5,995	794
Mortgage-backed securities	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	40,857	48,126
Less than 12 Months, Unrealized Losses	691	468
12 Months or More, Fair Value	10,128	12,913
12 Months or More, Unrealized Losses	78	138
Total, Fair Value	50,985	61,039
Total, Unrealized Losses	769	606
U.S. Government sponsored enterprises	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	9,714	3,402
Less than 12 Months, Unrealized Losses	69	80
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	9,714	3,402
Total, Unrealized Losses	69	80
State and political subdivisions	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	77,187	9,490
Less than 12 Months, Unrealized Losses	4,863	104
12 Months or More, Fair Value	1,824	0
12 Months or More, Unrealized Losses	224	0
Total, Fair Value	79,011	9,490
Total, Unrealized Losses	5,087	104
Corporate bonds	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	1,984	1,035
Less than 12 Months, Unrealized Losses	16	4
12 Months or More, Fair Value	511	0
12 Months or More, Unrealized Losses	54	0
Total, Fair Value	2,495	1,035
Total, Unrealized Losses	$70	$4

2_Investment_securities_Contra

2. Investment securities, Contractual Maturity (Details) (USD $)	Dec. 31, 2013
Amortized Cost	'
Due within one year	$4,019
Due from one to five years	31,725
Due from five to ten years	119,313
Due after ten years	20,298
Mortgage-backed securities	123,706
Equity securities	748
Total	299,809
Estimated Fair Value	'
Due within one year	4,048
Due from one to five years	32,103
Due from five to ten years	115,878
Due after ten years	20,195
Mortgage-backed securities	123,977
Equity securities	1,689
Total	$297,890

2_Investment_securities_Fair_V

2. Investment securities, Fair Value Measurements (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Estimated Fair Value	$297,890	$297,823
Mortgage-backed securities	'	'
Estimated Fair Value	123,977	148,024
Level 1 valuation	0	0
Level 2 valuation	123,977	148,024
Level 3 valuation	0	0
U.S. Government sponsored enterprises	'	'
Estimated Fair Value	22,143	18,837
Level 1 valuation	0	0
Level 2 valuation	22,143	18,837
Level 3 valuation	0	0
State and political subdivisions	'	'
Estimated Fair Value	145,368	125,658
Level 1 valuation	0	0
Level 2 valuation	145,368	125,658
Level 3 valuation	0	0
Corporate bonds	'	'
Estimated Fair Value	3,463	2,586
Level 1 valuation	0	0
Level 2 valuation	3,463	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	1,689	1,468
Level 1 valuation	1,689	1,468
Level 2 valuation	0	0
Level 3 valuation	$0	$0

2_Investment_securities_Fair_V1

2. Investment securities, Fair Value Level 3 Valuation (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 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

2_Investment_Securities_Detail1

2. Investment Securities (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investment Securities Details Narrative	'	'	'
Unrealized losses in the investment securites portfolio relating to debt securities	$5,900	'	'
Other than temporary write downs	0	0	144
Remaining value of impaired investments	'	'	264
Proceeds from sales of investment securities available for sale	17,463	47,076	110,978
Gains on sales of available-to-sale securities	738	1,300	4,400
Loss on sales of available-to-sale securities	124	103	9
Securities pledged to secure public deposits	$86,000	$73,900	'

3_Loans_Details

3. Loans (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
In Thousands, unless otherwise specified
Major classifications	'	'	'	'
Total Loans	$620,960	$619,974	$670,497	'
Less allowance for loan losses	13,501	14,423	16,604	15,493
Net loans	607,459	605,551	'	'
Construction and land development	'	'	'	'
Major classifications	'	'	'	'
Total Loans	63,742	73,176	93,812	'
Less allowance for loan losses	3,218	4,399	7,182	5,774
Single-family residential	'	'	'	'
Major classifications	'	'	'	'
Total Loans	195,975	195,003	212,993	'
Less allowance for loan losses	3,123	3,231	3,253	3,992
Single-family residential - Banco de la Gente stated income	'	'	'	'
Major classifications	'	'	'	'
Total Loans	49,463	52,019	54,058	'
Less allowance for loan losses	1,863	1,998	2,104	2,105
Commercial Real Estate	'	'	'	'
Major classifications	'	'	'	'
Total Loans	209,287	200,633	214,415	'
Less allowance for loan losses	2,219	2,049	1,731	1,409
Multifamily and Farmland	'	'	'	'
Major classifications	'	'	'	'
Total Loans	11,801	8,951	4,793	'
Less allowance for loan losses	37	28	13	17
Total real estate loans	'	'	'	'
Major classifications	'	'	'	'
Total Loans	530,268	529,782	'	'
Commercial loans (not secured by real estate)	'	'	'	'
Major classifications	'	'	'	'
Total Loans	68,047	64,295	60,646	'
Less allowance for loan losses	1,069	1,088	1,029	1,174
Farm loans (not secured by real estate)	'	'	'	'
Major classifications	'	'	'	'
Total Loans	19	11	0	'
Less allowance for loan losses	0	0	0	0
Consumer loans (not secured by real estate)	'	'	'	'
Major classifications	'	'	'	'
Total Loans	9,593	10,148	'	'
All other loans (not secured by real estate)	'	'	'	'
Major classifications	'	'	'	'
Total Loans	$13,033	$15,738	'	'

3_Loans_Past_Due_Details

3. Loans, Past Due (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Past due loans	'	'	'
Loans 30-89 Days Past Due	$20,192	$19,538	'
Loans 90 or More Days Past Due	9,451	13,311	'
Total Past Due Loans	29,643	32,849	'
Total Current Loans	591,317	587,125	'
Total loans	620,960	619,974	670,497
Accruing Loans 90 or More Days Past Due	882	2,403	'
Construction and land development	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	3,416	1,280	'
Loans 90 or More Days Past Due	5,426	6,858	'
Total Past Due Loans	8,842	8,138	'
Total Current Loans	54,900	65,038	'
Total loans	63,742	73,176	'
Accruing Loans 90 or More Days Past Due	0	0	'
Single-family residential	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	4,518	4,316	'
Loans 90 or More Days Past Due	1,555	1,548	'
Total Past Due Loans	6,073	5,864	'
Total Current Loans	189,902	189,139	'
Total loans	195,975	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	9,833	11,077	'
Loans 90 or More Days Past Due	1,952	3,659	'
Total Past Due Loans	11,785	14,736	'
Total Current Loans	37,678	37,283	'
Total loans	49,463	52,019	'
Accruing Loans 90 or More Days Past Due	881	2,378	'
Commercial Real Estate	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	1,643	1,720	'
Loans 90 or More Days Past Due	486	1,170	'
Total Past Due Loans	2,129	2,890	'
Total Current Loans	207,158	197,743	'
Total loans	209,287	200,633	'
Accruing Loans 90 or More Days Past Due	0	0	'
Multifamily and Farmland	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	177	7	'
Loans 90 or More Days Past Due	0	0	'
Total Past Due Loans	177	7	'
Total Current Loans	11,624	8,944	'
Total loans	11,801	8,951	'
Accruing Loans 90 or More Days Past Due	0	0	'
Total real estate loans	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	19,587	18,400	'
Loans 90 or More Days Past Due	9,419	13,235	'
Total Past Due Loans	29,006	31,635	'
Total Current Loans	501,262	498,147	'
Total loans	530,268	529,782	'
Accruing Loans 90 or More Days Past Due	881	2,378	'
Commercial loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	424	888	'
Loans 90 or More Days Past Due	29	66	'
Total Past Due Loans	453	954	'
Total Current Loans	67,594	63,341	'
Total loans	68,047	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	19	11	'
Total loans	19	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	181	250	'
Loans 90 or More Days Past Due	3	10	'
Total Past Due Loans	184	260	'
Total Current Loans	9,409	9,888	'
Total loans	9,593	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	13,033	15,738	'
Total loans	13,033	15,738	'
Accruing Loans 90 or More Days Past Due	$0	$0	'

3_Loans_Nonaccrual_Details

3. Loans, Nonaccrual (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Non-accrual loans	'	'
Non-accrual loans	$13,836	$17,630
Construction and land development	'	'
Non-accrual loans	'	'
Non-accrual loans	6,546	9,253
Single-family residential	'	'
Non-accrual loans	'	'
Non-accrual loans	2,980	2,491
Single-family residential - Banco de la Gente stated income	'	'
Non-accrual loans	'	'
Non-accrual loans	1,990	2,232
Commercial Real Estate	'	'
Non-accrual loans	'	'
Non-accrual loans	2,043	3,263
Total real estate loans	'	'
Non-accrual loans	'	'
Non-accrual loans	13,559	17,239
Commercial loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	250	344
Consumer loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	$27	$47

3_Loans_Impaired_Details

3. Loans, Impaired (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Impaired loans	'	'
Unpaid Contractual Principal Balance	$46,305	$55,717
Recorded Investment With No Allowance	11,287	17,477
Recorded Investment With Allowance	30,168	30,797
Recorded Investment in Impaired Loans	41,455	48,274
Related Allowance	1,675	1,536
Average Outstanding Impaired Loans	42,818	48,357
Construction and land development	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	9,861	17,738
Recorded Investment With No Allowance	6,293	11,795
Recorded Investment With Allowance	868	680
Recorded Investment in Impaired Loans	7,161	12,475
Related Allowance	53	61
Average Outstanding Impaired Loans	8,289	12,810
Single-family residential	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	7,853	9,099
Recorded Investment With No Allowance	1,428	766
Recorded Investment With Allowance	5,633	7,799
Recorded Investment in Impaired Loans	7,061	8,565
Related Allowance	123	177
Average Outstanding Impaired Loans	7,859	7,590
Single-family residential - Banco de la Gente stated income	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	22,034	21,806
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	21,242	21,000
Recorded Investment in Impaired Loans	21,242	21,000
Related Allowance	1,300	1,278
Average Outstanding Impaired Loans	21,242	21,158
Commercial Real Estate	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	5,079	5,830
Recorded Investment With No Allowance	3,045	4,569
Recorded Investment With Allowance	1,489	467
Recorded Investment in Impaired Loans	4,534	5,036
Related Allowance	182	6
Average Outstanding Impaired Loans	4,171	5,433
Multifamily and Farmland	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	177	193
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	177	193
Recorded Investment in Impaired Loans	177	193
Related Allowance	1	1
Average Outstanding Impaired Loans	184	200
Total real estate loans	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	45,004	54,666
Recorded Investment With No Allowance	10,766	17,130
Recorded Investment With Allowance	29,409	30,139
Recorded Investment in Impaired Loans	40,175	47,269
Related Allowance	1,659	1,523
Average Outstanding Impaired Loans	41,745	47,191
Commercial loans (not secured by real estate)	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	999	983
Recorded Investment With No Allowance	257	347
Recorded Investment With Allowance	724	592
Recorded Investment in Impaired Loans	981	939
Related Allowance	15	12
Average Outstanding Impaired Loans	826	1,125
Consumer loans (not secured by real estate)	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	302	68
Recorded Investment With No Allowance	264	0
Recorded Investment With Allowance	35	66
Recorded Investment in Impaired Loans	299	66
Related Allowance	1	1
Average Outstanding Impaired Loans	$247	$41

3_Loans_Impaired_Fair_Value_Me

3. Loans Impaired, Fair Value Measurements (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Impaired loans	$39,780	$46,738
Other real estate	1,679	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	39,780	46,738
Other real estate	1,679	6,254
Total gains (losses) for the year ended	'	'
Impaired loans	-3,207	-6,875
Other real estate	($581)	($1,136)

3_Loans_Allowance_for_Loan_Los

3. Loans, Allowance for Loan Losses (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for loan losses	'	'	'
Beginning balance	$14,423	$16,604	$15,493
Charge-offs	-4,372	-8,331	-12,260
Recoveries	866	1,226	739
Provision	2,584	4,924	12,632
Ending balance	13,501	14,423	16,604
Ending balance: individually evaluated for impairments	1,478	1,362	2,539
Ending balance: collectively evaluated for impairments	12,023	13,061	14,065
Ending balance	13,501	14,423	16,604
Loans	'	'	'
Ending balance	620,960	619,974	670,497
Ending balance: individually evaluated for impairment	33,666	40,785	44,786
Ending balance: collectively evaluated for impairment	587,294	579,189	625,711
Construction and land development	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	4,399	7,182	5,774
Charge-offs	-777	-4,728	-7,164
Recoveries	377	528	241
Provision	-781	1,417	8,331
Ending balance	3,218	4,399	7,182
Ending balance: individually evaluated for impairments	0	24	1,250
Ending balance: collectively evaluated for impairments	3,218	4,375	5,932
Ending balance	3,218	4,399	7,182
Loans	'	'	'
Ending balance	63,742	73,176	93,812
Ending balance: individually evaluated for impairment	6,293	11,961	20,280
Ending balance: collectively evaluated for impairment	57,449	61,215	73,532
Single-family residential	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	3,231	3,253	3,992
Charge-offs	-1,724	-886	-2,233
Recoveries	111	72	184
Provision	1,505	792	1,310
Ending balance	3,123	3,231	3,253
Ending balance: individually evaluated for impairments	39	84	46
Ending balance: collectively evaluated for impairments	3,084	3,147	3,207
Ending balance	3,123	3,231	3,253
Loans	'	'	'
Ending balance	195,975	195,003	212,993
Ending balance: individually evaluated for impairment	3,127	3,885	2,352
Ending balance: collectively evaluated for impairment	192,848	191,118	210,641
Single-family residential - Banco de la Gente stated income	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	1,998	2,104	2,105
Charge-offs	-272	-668	-692
Recoveries	141	0	17
Provision	-4	562	674
Ending balance	1,863	1,998	2,104
Ending balance: individually evaluated for impairments	1,268	1,254	1,243
Ending balance: collectively evaluated for impairments	595	744	861
Ending balance	1,863	1,998	2,104
Loans	'	'	'
Ending balance	49,463	52,019	54,058
Ending balance: individually evaluated for impairment	19,958	20,024	18,309
Ending balance: collectively evaluated for impairment	29,505	31,995	35,749
Commercial Real Estate	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	2,049	1,731	1,409
Charge-offs	-445	-937	-1,271
Recoveries	50	374	24
Provision	565	881	1,569
Ending balance	2,219	2,049	1,731
Ending balance: individually evaluated for impairments	171	0	0
Ending balance: collectively evaluated for impairments	2,048	2,049	1,731
Ending balance	2,219	2,049	1,731
Loans	'	'	'
Ending balance	209,287	200,633	214,415
Ending balance: individually evaluated for impairment	3,767	4,569	3,845
Ending balance: collectively evaluated for impairment	205,520	196,064	210,570
Multifamily and Farmland	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	28	13	17
Charge-offs	0	0	0
Recoveries	0	0	0
Provision	9	15	-4
Ending balance	37	28	13
Ending balance: individually evaluated for impairments	0	0	0
Ending balance: collectively evaluated for impairments	37	28	13
Ending balance	37	28	13
Loans	'	'	'
Ending balance	11,801	8,951	4,793
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	11,801	8,951	4,793
Commercial loans (not secured by real estate)	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	1,088	1,029	1,174
Charge-offs	-502	-555	-314
Recoveries	44	104	121
Provision	439	510	48
Ending balance	1,069	1,088	1,029
Ending balance: individually evaluated for impairments	0	0	0
Ending balance: collectively evaluated for impairments	1,069	1,088	1,029
Ending balance	1,069	1,088	1,029
Loans	'	'	'
Ending balance	68,047	64,295	60,646
Ending balance: individually evaluated for impairment	256	346	0
Ending balance: collectively evaluated for impairment	67,791	63,949	60,646
Farm loans (not secured by real estate)	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	0	0	0
Charge-offs	0	0	0
Recoveries	0	0	0
Provision	0	0	0
Ending balance	0	0	0
Ending balance: individually evaluated for impairments	0	0	0
Ending balance: collectively evaluated for impairments	0	0	0
Ending balance	0	0	0
Loans	'	'	'
Ending balance	19	11	0
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	19	11	0
Consumer And All Other Loans	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	245	255	430
Charge-offs	-652	-557	-586
Recoveries	143	148	152
Provision	509	399	259
Ending balance	245	245	255
Ending balance: individually evaluated for impairments	0	0	0
Ending balance: collectively evaluated for impairments	245	245	255
Ending balance	245	245	255
Loans	'	'	'
Ending balance	22,626	25,886	29,780
Ending balance: individually evaluated for impairment	265	0	0
Ending balance: collectively evaluated for impairment	22,361	25,886	29,780
Unallocated	'	'	'
Allowance for loan losses	'	'	'
Beginning balance	1,385	1,037	592
Charge-offs	0	0	0
Recoveries	0	0	0
Provision	342	348	445
Ending balance	1,727	1,385	1,037
Ending balance: individually evaluated for impairments	0	0	0
Ending balance: collectively evaluated for impairments	1,727	1,385	1,037
Ending balance	1,727	1,385	1,037
Loans	'	'	'
Ending balance	0	0	0
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	$0	$0	$0

3_Loans_Credit_Risk_Details

3. Loans, Credit Risk (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Credit risk profile	'	'	'
Total Loans	$620,960	$619,974	$670,497
Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	16,678	26,584	'
High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	116,889	105,018	'
Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	306,756	289,097	'
Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	116,514	128,867	'
Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	31,383	31,414	'
Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	32,735	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	5	5	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	63,742	73,176	'
Single-family residential	'	'	'
Credit risk profile	'	'	'
Total Loans	195,975	195,003	'
Single-family residential - Banco de la Gente stated income	'	'	'
Credit risk profile	'	'	'
Total Loans	49,463	52,019	'
Commercial Real Estate	'	'	'
Credit risk profile	'	'	'
Total Loans	209,287	200,633	'
Multifamily and Farmland	'	'	'
Credit risk profile	'	'	'
Total Loans	11,801	8,951	'
Commercial loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	68,047	64,295	'
Farm loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	19	11	'
Consumer loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	9,593	10,148	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	13,033	15,738	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	63,742	73,176	93,812
Construction and land development | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	7	11	'
Construction and land development | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	7,852	4,947	'
Construction and land development | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	22,899	24,952	'
Construction and land development | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	14,464	18,891	'
Construction and land development | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	8,163	9,580	'
Construction and land development | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	10,357	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	195,975	195,003	212,993
Single-family residential | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	15,036	24,662	'
Single-family residential | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	60,882	56,829	'
Single-family residential | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	73,118	62,018	'
Single-family residential | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	34,090	35,727	'
Single-family residential | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	6,806	9,504	'
Single-family residential | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	6,043	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	49,463	52,019	54,058
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	22,255	24,724	'
Single-family residential - Banco de la Gente stated income | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	8,369	11,366	'
Single-family residential - Banco de la Gente stated income | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	8,113	3,597	'
Single-family residential - Banco de la Gente stated income | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	10,726	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	209,287	200,633	214,415
Commercial Real Estate | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial Real Estate | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	33,340	27,511	'
Commercial Real Estate | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	123,604	114,001	'
Commercial Real Estate | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	42,914	47,603	'
Commercial Real Estate | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	5,190	6,911	'
Commercial Real Estate | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	4,239	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	11,801	8,951	4,793
Multifamily and Farmland | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	715	32	'
Multifamily and Farmland | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	7,882	4,975	'
Multifamily and Farmland | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	286	3,039	'
Multifamily and Farmland | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	2,741	712	'
Multifamily and Farmland | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	177	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	68,047	64,295	60,646
Commercial loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	365	672	'
Commercial loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	8,442	9,260	'
Commercial loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	44,353	40,814	'
Commercial loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	13,704	11,844	'
Commercial loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	320	976	'
Commercial loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	863	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	19	11	0
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	19	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	9,593	10,148	'
Consumer loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	1,270	1,239	'
Consumer loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	3,519	4,122	'
Consumer loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	4,061	4,186	'
Consumer loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	358	392	'
Consumer loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	50	134	'
Consumer loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	330	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	5	5	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	13,033	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	2,139	2,317	'
All other loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	8,565	13,416	'
All other loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	2,329	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 $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Construction and land development	'	'
TDR Loans	'	'
Number of Contracts	15	11
Pre-Modification Outstanding Recorded Investment	$10,222	$10,465
Post-Modification Outstanding Recorded Investment	6,528	6,633
Single-family residential	'	'
TDR Loans	'	'
Number of Contracts	20	33
Pre-Modification Outstanding Recorded Investment	1,281	3,014
Post-Modification Outstanding Recorded Investment	1,754	4,084
Single-family residential - Banco de la Gente stated income	'	'
TDR Loans	'	'
Number of Contracts	91	122
Pre-Modification Outstanding Recorded Investment	10,038	13,459
Post-Modification Outstanding Recorded Investment	8,605	12,170
Commercial Real Estate	'	'
TDR Loans	'	'
Number of Contracts	10	4
Pre-Modification Outstanding Recorded Investment	3,775	1,457
Post-Modification Outstanding Recorded Investment	4,272	682
Multifamily and Farmland	'	'
TDR Loans	'	'
Number of Contracts	1	'
Pre-Modification Outstanding Recorded Investment	322	0
Post-Modification Outstanding Recorded Investment	177	0
Total real estate loans	'	'
TDR Loans	'	'
Number of Contracts	137	170
Pre-Modification Outstanding Recorded Investment	25,638	28,395
Post-Modification Outstanding Recorded Investment	21,336	23,569
Commercial loans (not secured by real estate)	'	'
TDR Loans	'	'
Number of Contracts	7	9
Pre-Modification Outstanding Recorded Investment	519	511
Post-Modification Outstanding Recorded Investment	344	368
Consumer loans (not secured by real estate)	'	'
TDR Loans	'	'
Number of Contracts	3	1
Pre-Modification Outstanding Recorded Investment	284	2
Post-Modification Outstanding Recorded Investment	266	0
Total TDR loans	'	'
TDR Loans	'	'
Number of Contracts	147	180
Pre-Modification Outstanding Recorded Investment	26,441	28,908
Post-Modification Outstanding Recorded Investment	$21,946	$23,937

3_Loans_TDR_Loan_Modifications

3. Loans, TDR Loan Modifications (Details) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Construction and land development TDR loans	'	'
TDR Loans	'	'
Number of Contracts	2	'
Pre-Modification Outstanding Recorded Investment	$841	'
Post-Modification Outstanding Recorded Investment	824	'
Single-family residential TDR	'	'
TDR Loans	'	'
Number of Contracts	'	5
Pre-Modification Outstanding Recorded Investment	'	674
Post-Modification Outstanding Recorded Investment	'	673
Single-family residential- Banco de la Gente stated income	'	'
TDR Loans	'	'
Number of Contracts	7	20
Pre-Modification Outstanding Recorded Investment	796	2,046
Post-Modification Outstanding Recorded Investment	788	1,992
Total real estate TDR loans	'	'
TDR Loans	'	'
Number of Contracts	9	25
Pre-Modification Outstanding Recorded Investment	1,637	2,720
Post-Modification Outstanding Recorded Investment	1,612	2,665
Commercial loans TDR (not secured by real estate)	'	'
TDR Loans	'	'
Number of Contracts	'	1
Pre-Modification Outstanding Recorded Investment	'	14
Post-Modification Outstanding Recorded Investment	'	13
Total TDR Loans	'	'
TDR Loans	'	'
Number of Contracts	9	26
Pre-Modification Outstanding Recorded Investment	1,637	2,734
Post-Modification Outstanding Recorded Investment	$1,612	$2,678

3_Loans_Details_Narrative

3. Loans (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Loans Details Narrative	'	'
Percentage of construction and land development loans in Bank's loan portfolio	10.00%	'
Percentage of single-family residential loans in Bank's loan portfolio	40.00%	'
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio	8.00%	'
Percentage of commercial real estate loans in Bank's loan portfolio	34.00%	'
Percentage of commercial loans in Bank's loan portfolio	11.00%	'
Accruing impaired loans	$27,600	$30,600
Interest income recognized on accruing impaired loans	1,300	1,500
Amount of performing TDR loans included	$335	$2,000

4_Premises_and_Equipment_Detai

4. Premises and Equipment (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Premises And Equipment Details	'	'
Land	$3,667	$3,657
Buildings and improvements	15,126	14,815
Furniture and equipment	16,239	17,660
Total premises and equipment	35,032	36,132
Less accumulated depreciation	18,674	20,258
Total net premises and equipment	$16,358	$15,874

4_Premises_and_Equipment_Detai1

4. Premises and Equipment (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Premises And Equipment Details Narrative	'	'	'
Depreciation expense	$1,900	$1,900	$2,000

5_Time_Deposits_Details

5. Time Deposits (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Time Deposits Details	'
2014	$127,036
2015	48,913
2016	22,318
2017	10,155
2018 and thereafter	8,781
Total	$217,203

5_Time_Deposits_Details_Narrat

5. Time Deposits (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Time Deposits Details Narrative	'	'
Time deposits purchased through third party brokers, including certificates of deposit participated through the Certificate of Deposit Account Registry Service ("CDARS") on behalf of local customers	$15,100	$21,400
CDARS balances	$15,100	$20,100
Weighted average rate of brokered deposits	0.14%	0.29%

6_Federal_Home_Loan_Bank_and_F2

6. Federal Home Loan Bank and Federal Reserve Bank Borrowings (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Federal Home Loan Bank And Federal Reserve Bank Borrowings Details Narrative	'	'
Loans pledged as collateral to the FHLB	$132,900	'
Market value of securities pledged to the FHLB	17,300	'
FLHB stock owned	4,100	4,700
Carrying values of loans pledged as collateral to the FHLB	132,900	'
Carrying value of loans pledged as collateral to the FRB	$315,200	'

8_Income_Taxes_Details

8. Income Taxes (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes Details	'	'	'
Current	$1,345	$1,800	$2,141
Deferred	534	-213	-678
Total	$1,879	$1,587	$1,463

8_Income_Taxes_Details_1

8. Income Taxes (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes Details 1	'	'	'
Pre-tax income at statutory rate (34%)	$2,914	$2,509	$2,251
Differences:	'	'	'
Tax exempt interest income	-1,481	-1,168	-1,052
Nondeductible interest and other expense	141	52	62
Cash surrender value of life insurance	-147	-149	-101
State taxes, net of federal benefits	428	324	233
Nondeductible capital losses	0	0	49
Other, net	24	19	21
Total	$1,879	$1,587	$1,463

8_Income_Taxes_Details_2

8. Income Taxes (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Deferred tax assets:	'	'
Allowance for loan losses	$5,205	$5,560
Accrued retirement expense	1,489	1,409
Other real estate	218	628
Other	413	362
Unrealized loss on available for sale securities	747	0
Total gross deferred tax assets	8,072	7,959
Deferred tax liabilities:	'	'
Deferred loan fees	581	794
Premises and equipment	530	417
Unrealized gain on available for sale securities	0	3,581
Total gross deferred tax liabilities	1,111	4,792
Net deferred tax asset	$6,961	$3,167

9_Related_Party_Transactions_D

9. Related Party Transactions (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013
Related Party Transactions Details	'
Beginning balance	$5,385
New loans	3,409
Repayments	-4,454
Ending balance	$4,340

9_Related_Party_Transactions_D1

9. Related Party Transactions (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Related Party Transactions Details Narrative	'	'
Related party deposits	$17,600	$13,900

10_Commitments_and_Contingenci2

10. Commitments and Contingencies (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments And Contingencies Details	'
2014	$549
2015	517
2016	519
2017	469
2018	436
Thereafter	1,253
Total minimum obligation	$3,743

10_Commitments_and_Contingenci3

10. Commitments and Contingencies (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Commitments and contingencies	'	'
Commitments to extend credit	'	'
Commitments and contingencies	146,243	133,919
Standby letters of credit and financial guarantees written	'	'
Commitments and contingencies	$4,361	$3,297

10_Commitments_and_Contingenci4

10. Commitments and Contingencies (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments And Contingencies Details Narrative	'	'	'
Rent expense	$672,000	$643,000	$735,000

12_Employee_and_Director_Benef2

12. Employee and Director Benefit Programs (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Employee And Director Benefit Programs Details	'	'
Benefit obligation at beginning of period	$3,382	$2,923
Service cost	336	430
Interest cost	65	89
Benefits paid	-142	-60
Reversal of excess accrual	-60	0
Benefit obligation at end of period	$3,581	$3,382

12_Employee_and_Director_Benef3

12. Employee and Director Benefit Programs (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Employee And Director Benefit Programs Details 1	'	'	'
Benefit obligation	$3,581	$3,382	$2,923
Fair value of plan assets	0	0	'
Funded status	-3,581	-3,382	'
Net amount recognized	-3,581	-3,382	'
Unfunded accrued liability	-3,581	-3,382	'
Net amount recognized in balance sheet	($3,581)	($3,382)	'

12_Employee_and_Director_Benef4

12. Employee and Director Benefit Programs (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Employee And Director Benefit Programs Details 2	'	'
Service cost	$336	$430
Interest cost	65	89
Net periodic cost	$401	$519
Weighted average discount rate assumption used to determine benefit obligation	5.46%	5.43%

12_Employee_and_Director_Benef5

12. Employee and Director Benefit Programs (Details 3) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Employee And Director Benefit Programs Details 3	'
2014	$205
2015	234
2016	233
2017	262
2018	275
Thereafter	$8,648

12_Employee_and_Director_Benef6

12. Employee and Director Benefit Programs (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee And Director Benefit Programs Details Narrative	'	'	'
Defined Benefit Plan, Contributions by Employer	$430,000	$345,000	$219,000
Expenses incurred for benefits relating to the postretirement benefit	395,000	546,000	355,000
Postretirement medical benefits expense, including amortization of the transition obligation	0	24,000	23,000
Benefits paid	$142,000	$60,000	'

13_Regulatory_Matters_Details

13. Regulatory Matters (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Total capital (to Risk-Weighted Assets) | Consolidated	'	'
Actual, amount	$114,185	$121,246
Actual, ratio	16.14%	17.34%
For Capital Adequacy Purposes, amount	56,582	55,928
For Capital Adequacy Purposes, ratio	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	'	'
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	'	'
Total capital (to Risk-Weighted Assets) | Bank	'	'
Actual, amount	110,935	117,453
Actual, ratio	15.73%	16.84%
For Capital Adequacy Purposes, amount	56,412	55,784
For Capital Adequacy Purposes, ratio	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	70,515	69,730
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	10.00%	10.00%
Tier 1 Capital (to Risk- Weighted Assets) | Consolidated	'	'
Actual, amount	104,890	112,135
Actual, ratio	14.83%	16.04%
For Capital Adequacy Purposes, amount	28,291	27,964
For Capital Adequacy Purposes, ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	'	'
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	'	'
Tier 1 Capital (to Risk- Weighted Assets) | Bank	'	'
Actual, amount	101,733	108,379
Actual, ratio	14.43%	15.54%
For Capital Adequacy Purposes, amount	28,206	27,892
For Capital Adequacy Purposes, ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	42,309	41,838
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	6.00%	6.00%
Tier 1 Capital (Average Assets) | Consolidated	'	'
Actual, amount	104,890	112,135
Actual, ratio	10.08%	11.12%
For Capital Adequacy Purposes, amount	41,622	40,342
For Capital Adequacy Purposes, ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	'	'
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	'	'
Tier 1 Capital (Average Assets) | Bank	'	'
Actual, amount	101,733	108,379
Actual, ratio	9.79%	10.76%
For Capital Adequacy Purposes, amount	41,584	40,302
For Capital Adequacy Purposes, ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions, amount	$51,981	$50,377
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	5.00%	5.00%

15_Other_Operating_Income_and_2

15. Other Operating Income and Expense (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other Operating Income And Expense Details	'	'	'
Visa debit card income	$2,990	$2,092	$1,783
Net appraisal management fee income	718	737	375
Insurance and brokerage commissions	661	517	471
Advertising	685	695	660
FDIC insurance	864	894	1,061
Visa debit card expense	823	729	658
Telephone	570	554	605
Foreclosure/OREO expense	356	677	904
Internet banking expense	568	593	509
FHLB advance prepayment penalty	$530	$0	$0

16_Fair_Value_of_Financial_Ins2

16. Fair Value of Financial Instruments (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'	'
Investment securities available for sale	$297,890	$297,823
Carrying Amount	'	'
Assets:	'	'
Cash and cash equivalents	76,773	48,843
Investment securities available for sale	297,890	297,823
Other investments	4,990	5,599
Mortgage loans held for sale	497	6,922
Loans, net	607,459	605,551
Cash surrender value of life insurance	13,706	13,273
Liabilities:	'	'
Deposits	799,361	781,525
Securities sold under agreements to repurchase	45,396	34,578
FHLB borrowings	65,000	70,000
Junior subordinated debentures	20,619	20,619
Level 1	'	'
Assets:	'	'
Cash and cash equivalents	76,773	48,843
Investment securities available for sale	1,689	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	294,951	295,105
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	13,706	13,273
Liabilities:	'	'
Deposits	798,460	780,662
Securities sold under agreements to repurchase	45,396	34,578
FHLB borrowings	65,891	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	4,990	5,599
Mortgage loans held for sale	497	6,922
Loans, net	612,132	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	76,773	48,843
Investment securities available for sale	297,890	297,823
Other investments	4,990	5,599
Mortgage loans held for sale	497	6,922
Loans, net	612,132	599,996
Cash surrender value of life insurance	13,706	13,273
Liabilities:	'	'
Deposits	798,460	780,662
Securities sold under agreements to repurchase	45,396	34,578
FHLB borrowings	65,891	76,375
Junior subordinated debentures	$20,619	$20,619

17_Peoples_Bancorp_of_North_Ca2

17. Peoples Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial Statements (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Assets	'	'	'
Interest-bearing time deposit	$26,871	$16,226	'
Investment securities available for sale	297,890	297,823	'
Total assets	1,034,684	1,013,516	'
Liabilities and Shareholders' Equity	'	'	'
Junior subordinated debentures	20,619	20,619	'
Liabilities	950,965	915,769	'
Shareholders' equity	83,719	97,747	'
Total liabilities and shareholders' equity	1,034,684	1,013,516	'
Revenues:	'	'	'
Interest and dividend income	36,696	39,245	45,259
Impairment of securities	0	0	-144
Expenses:	'	'	'
Interest	5,353	7,696	10,946
Income/(Loss) before income tax benefit and equity in undistributed earnings of subsidiaries	8,570	7,380	6,622
Income tax benefit	1,879	1,587	1,463
Net earnings	6,691	5,793	5,159
Cash flows from operating activities:	'	'	'
Net earnings	6,691	5,793	5,159
Adjustments to reconcile net earnings to net cash used by operating activities:	'	'	'
Other than temporary impairment losses	0	0	-144
Change in:	'	'	'
Other assets	-1,508	441	-2,644
Net cash provided (used by) operating activities	37,445	19,027	22,352
Cash flows from investing activities:	'	'	'
Purchases of investment securities available for sale	-98,129	-88,304	-208,863
Proceeds from maturities of investment securities available for sale	63,597	63,225	54,041
Net change in interest-bearing time deposit	0	0	735
Net cash (used) provided by investing activities	-19,234	64,797	-7,719
Cash flows from financing activities:	'	'	'
Cash dividends paid on Series A preferred stock	-734	-1,023	-1,253
Restricted stock payout	0	0	17
Proceeds from exercise of stock options	0	539	0
Net cash provided (used) by financing activities	9,719	-64,217	-9,374
Net change in cash and cash equivalents	27,930	19,607	5,259
Noncash investing and financing activities:	'	'	'
Change in unrealized gain on investment securitiesB available for sale, net	6,784	-2,536	3,087
Parent Company	'	'	'
Assets	'	'	'
Cash	12,879	324	316
Interest-bearing time deposit	0	800	'
Investment in subsidiaries	102,113	115,386	'
Investment securities available for sale	1,721	1,596	'
Other assets	273	260	'
Total assets	116,986	118,366	'
Liabilities and Shareholders' Equity	'	'	'
Junior subordinated debentures	20,619	20,619	'
Liabilities	12,648	0	'
Shareholders' equity	83,719	97,747	'
Total liabilities and shareholders' equity	116,986	118,366	'
Revenues:	'	'	'
Interest and dividend income	13,576	113	226
Impairment of securities	0	0	-144
Total revenues	13,576	113	82
Expenses:	'	'	'
Interest	398	438	407
Other operating expenses	159	476	190
Total expenses	557	914	597
Income/(Loss) before income tax benefit and equity in undistributed earnings of subsidiaries	13,019	-801	-515
Income tax benefit	84	166	56
Income/(Loss) before equity in undistributed earnings of subsidiaries	13,103	-635	-459
Equity in undistributed earnings of subsidiaries	-6,412	6,428	5,618
Net earnings	6,691	5,793	5,159
Cash flows from operating activities:	'	'	'
Net earnings	6,691	5,793	5,159
Adjustments to reconcile net earnings to net cash used by operating activities:	'	'	'
Equity in undistributed earnings of subsidiaries	6,412	-6,428	-5,618
Other than temporary impairment losses	0	0	-144
Change in:	'	'	'
Other assets	-73	0	112
Accrued income	0	11	-11
Accrued expense	27	41	-216
Other liabilities	12,632	0	0
Net cash provided (used by) operating activities	25,689	-583	-430
Cash flows from investing activities:	'	'	'
Proceeds from maturities of investment securities available for sale	1	0	0
Net change in interest-bearing time deposit	800	14,200	2,000
Net cash (used) provided by investing activities	801	14,200	2,000
Cash flows from financing activities:	'	'	'
Cash dividends paid on Series A preferred stock	-734	-1,023	-1,253
Cash dividends paid on common stock	-677	-1,003	-443
Preferred stock and warrant repurchase	-12,524	-12,122	0
Restricted stock payout	0	0	17
Proceeds from exercise of stock options	0	539	0
Net cash provided (used) by financing activities	-13,935	-13,609	-1,679
Net change in cash and cash equivalents	12,555	8	-109
Cash at beginning of year	324	316	425
Cash at end of year	12,879	324	316
Noncash investing and financing activities:	'	'	'
Change in unrealized gain on investment securitiesB available for sale, net	$77	($46)	($3)