Peoples Bancorp of North Carolina (PEBK) 10-Q 7 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information	'	'
Entity Registrant Name	'PEOPLES BANCORP OF NORTH CAROLINA INC	'
Entity Central Index Key	'0001093672	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,617,125
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets	'	'
Cash and due from banks, including reserve requirements of $13,041 and $11,472, respectively	$34,887	$49,902
Interest-bearing deposits	50,636	26,871
Cash and cash equivalents	85,523	76,773
Investment securities available for sale	279,787	297,890
Other investments	4,706	4,990
Total securities	284,493	302,880
Mortgage loans held for sale	887	497
Loans	650,550	620,960
Less allowance for loan losses	-12,343	-13,501
Net loans	638,207	607,459
Premises and equipment, net	17,482	16,358
Cash surrender value of life insurance	14,020	13,706
Other real estate	1,840	1,679
Accrued interest receivable and other assets	11,483	15,332
Total assets	1,053,935	1,034,684
Deposits:	'	'
Noninterest-bearing demand	211,832	195,265
NOW, MMDA & savings	403,240	386,893
Time, $100,000 or more	109,489	115,268
Other time	92,234	101,935
Total deposits	816,795	799,361
Securities sold under agreements to repurchase	47,020	45,396
FHLB borrowings	65,000	65,000
Junior subordinated debentures	20,619	20,619
Accrued interest payable and other liabilities	8,294	20,589
Total liabilities	957,728	950,965
Commitments	'	'
Shareholders' equity:	'	'
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,617,125 and 5,613,495 shares, respectively	48,170	48,133
Retained earnings	43,648	36,758
Accumulated other comprehensive income (loss)	4,389	-1,172
Total shareholders' equity	96,207	83,719
Total liabilities and shareholders' equity	$1,053,935	$1,034,684

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Assets	'	'
Cash and due from banks, reserve requirements	$13,041	$11,472
Shareholders' equity:	'	'
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)	5,617,125	5,613,495
Common stock, shares outstanding (in shares)	5,617,125	5,613,495

Consolidated_Statements_of_Ear

Consolidated Statements of Earnings (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income:	'	'	'	'
Interest and fees on loans	$7,664	$7,592	$22,556	$22,671
Interest on due from banks	18	22	42	62
Interest on investment securities:	'	'	'	'
U.S. Government sponsored enterprises	646	307	2,298	970
States and political subdivisions	1,168	1,179	3,514	3,233
Other	87	88	294	264
Total interest income	9,583	9,188	28,704	27,200
Interest expense:	'	'	'	'
NOW, MMDA & savings deposits	124	160	375	578
Time deposits	287	396	924	1,285
FHLB borrowings	556	618	1,650	1,914
Junior subordinated debentures	98	100	291	299
Other	11	11	33	43
Total interest expense	1,076	1,285	3,273	4,119
Net interest income	8,507	7,903	25,431	23,081
Provision for loan losses	256	337	-27	2,164
Net interest income after provision for loan losses	8,251	7,566	25,458	20,917
Non-interest income:	'	'	'	'
Service charges	1,303	1,189	3,655	3,333
Other service charges and fees	213	258	892	900
Gain on sale of securities	240	0	266	614
Mortgage banking income	256	301	548	1,000
Insurance and brokerage commissions	161	161	521	478
Gain/(loss) on sale and write-down of other real estate	-234	-111	-384	-284
Miscellaneous	1,268	1,313	3,660	3,806
Total non-interest income	3,207	3,111	9,158	9,847
Non-interest expense:	'	'	'	'
Salaries and employee benefits	4,301	4,183	12,784	12,614
Occupancy	1,489	1,357	4,476	3,988
Other	2,751	2,349	7,471	7,004
Total non-interest expense	8,541	7,889	24,731	23,606
Earnings before income taxes	2,917	2,788	9,885	7,158
Income tax expense	475	870	2,313	1,848
Net earnings	2,442	1,918	7,572	5,310
Dividends and accretion on preferred stock	0	156	0	470
Net earnings available to common shareholders	$2,442	$1,762	$7,572	$4,840
Basic earnings per common share	$0.43	$0.31	$1.35	$0.86
Diluted net earnings per common share	$0.43	$0.31	$1.34	$0.86
Cash dividends declared per common share	$0.04	$0.03	$0.12	$0.09

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements Of Comprehensive Income Loss	'	'	'	'
Net earnings	$2,442	$1,918	$7,572	$5,310
Other comprehensive income (loss):	'	'	'	'
Unrealized holding gains (losses) on securities available for sale	1,788	-2,084	9,374	-9,881
Reclassification adjustment for gains on securities available for sale included in net earnings	-240	0	-266	-614
Total other comprehensive income (loss), before income taxes	1,548	-2,084	9,108	-10,495
Income tax (benefit) expense related to other comprehensive (loss) income:	'	'	'	'
Unrealized holding gains (losses) on securities available for sale	696	-812	3,651	-3,849
Reclassification adjustment for gains on securities available for sale included in net earnings	-93	0	-104	-239
Total income tax expense (benefit) related to other comprehensive income (loss)	603	-812	3,547	-4,088
Total other comprehensive income (loss), net of tax	945	-1,272	5,561	-6,407
Total comprehensive income (loss)	$3,387	$646	$13,133	($1,097)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net earnings	$7,572	$5,310
Adjustments to reconcile net earnings to net cash provided by operating activities:	'	'
Depreciation, amortization and accretion	5,254	6,099
Provision for loan losses	-27	2,164
Gain on sale of investment securities	-266	-614
Gain on sale of other real estate	-43	-86
Write-down of other real estate	427	370
Restricted stock expense	272	104
Change in:	'	'
Mortgage loans held for sale	-390	4,721
Cash surrender value of life insurance	-315	-324
Other assets	-254	897
Other liabilities	229	938
Net cash provided by operating activities	12,459	19,579
Cash flows from investing activities:	'	'
Purchases of investment securities available for sale	-25,439	-89,169
Proceeds from calls, maturities and paydowns of investment securities available for sale	29,263	52,666
Proceeds from sales of investment securities available for sale	20,202	17,463
FHLB stock redemption	284	384
Net change in loans	-34,213	-1,448
Purchases of premises and equipment	-2,927	-1,575
Proceeds from sales of other real estate and repossessions	3,230	4,823
Net cash used by investing activities	-9,600	-16,856
Cash flows from financing activities:	'	'
Net change in deposits	17,434	16,766
Net change in securities sold under agreements to repurchase	1,624	13,596
Proceeds from FHLB borrowings	0	15,000
Repayments of FHLB borrowings	0	-15,000
Preferred stock repurchase	-12,524	0
Proceeds from stock options exercised	38	0
Cash dividends paid on preferred stock	0	-470
Cash dividends paid on common stock	-681	-508
Net cash provided by financing activities	5,891	29,384
Net change in cash and cash equivalents	8,750	32,107
Cash and cash equivalents at beginning of period	76,773	48,843
Cash and cash equivalents at end of period	85,523	80,950
Cash paid during the period for:	'	'
Interest	3,290	4,179
Income taxes	1,637	1,937
Noncash investing and financing activities:	'	'
Change in unrealized gain (loss) on investment securities available for sale, net	5,561	-6,407
Transfers of loans to other real estate and repossessions	3,774	2,153
Financed portion of sales of other real estate	$282	$525

1_Summary_of_Significant_Accou

1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
1. Summary of Significant Accounting Policies	'
	The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly owned subsidiaries, Peoples Bank (the “Bank”) and Community Bank Real Estate Solutions, LLC, along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. and Real Estate Advisory Services, Inc. (“REAS”) (collectively called the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.
	The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2013) are unaudited.  In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included.  Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”).  Actual results could differ from those estimates.
	The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition.  Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance.  A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2013 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 1, 2014 Annual Meeting of Shareholders.
	Recently Issued 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.
	In May 2014, FASB issued ASU No. 2014-09, (Topic 606):  Revenue from Contracts with Customers.  ASU No. 2014-09 provides guidance on the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive.  ASU No. 2014-09 is effective for reporting periods beginning after December 15, 2016.  The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
	In June 2014, FASB issued ASU No. 2014-11, (Subtopic 860-10): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  ASU No. 2014-11 makes limited amendments to the guidance in FASB Accounting Standards Codification (“ASC”) 860, Transfers and Servicing, on accounting for certain repurchase agreements (repos). ASU No. 2014-11 (a) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (b) eliminates accounting guidance on linked repurchase financing transactions, and (c) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends FASB ASC 860 to clarify that repos and securities lending transactions that do not meet all of the derecognition criteria should be accounted for as secured borrowings.  In addition, ASU No. 2014-11 provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets.  ASU No. 2014-11 is effective for reporting periods beginning the first interim or annual period 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.
	In August 2014, FASB issued ASU No. 2014-14, (Subtopic 310-40): Receivables – Troubled debt Restructurings by Creditors.  ASU No. 2014-14 provides guidance on the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure by a creditor.  ASU No. 2014-14 is effective for reporting periods beginning the first interim or annual period 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.

2_Investment_Securities

2. Investment Securities	9 Months Ended
	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Investment Securities	'
	Investment securities available for sale at September 30, 2014 and December 31, 2013 are as follows:
	(Dollars in thousands)
		30-Sep-14
		Amortized		Gross	Gross	Estimated
		Cost		Unrealized	Unrealized	Fair Value
				Gains	Losses
	Mortgage-backed securities	$	94,571	1,591	141	96,021
	U.S. Government
	sponsored enterprises		27,939	185	147	27,977
	State and political subdivisions		146,108	5,612	711	151,009
	Corporate bonds		2,482	14	22	2,474
	Trust preferred securities		750	-	-	750
	Equity securities		748	808	-	1,556
	Total	$	272,598	8,210	1,021	279,787
	(Dollars in thousands)
		31-Dec-13
		Amortized		Gross	Gross	Estimated
		Cost		Unrealized	Unrealized	Fair Value
				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
	The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2014 and December 31, 2013 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.
	(Dollars in thousands)
		30-Sep-14
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	11,266	14	8,126	127	19,392	141
	U.S. Government
	sponsored enterprises		8,113	74	3,926	73	12,039	147
	State and political subdivisions		-	-	31,377	711	31,377	711
	Corporate bonds		-	-	527	22	527	22
	Total	$	19,379	88	43,956	933	63,335	1,021
	(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
	At September 30, 2014, unrealized losses in the investment securities portfolio relating to debt securities totaled $1.0 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the September 30, 2014 tables above, 35 out of 175 securities issued by state and political subdivisions contained unrealized losses, 14 out of 79 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and one out of four securities issued by corporations contained unrealized losses.  These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.
	The amortized cost and estimated fair value of investment securities available for sale at September 30, 2014, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
	30-Sep-14
	(Dollars in thousands)
		Amortized		Estimated
		Cost		Fair Value
	Due within one year	$	5,362	5,393
	Due from one to five years		41,153	43,023
	Due from five to ten years		113,866	116,443
	Due after ten years		16,898	17,351
	Mortgage-backed securities		94,571	96,021
	Equity securities		748	1,556
	Total	$	272,598	279,787
Proceeds from sales of securities available for sale during the nine months ended September 30, 2014 were $20.2 million and resulted in gross gains of $291,000 and gross losses of $25,000.  Proceeds from sales of securities available for sale during the nine months ended September 30, 2013 were $17.5 million and resulted in gross gains of $738,000 and gross losses of $124,000.
Securities with a fair value of approximately $103.0 million and $86.0 million at September 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes as required by law.

3_Loans

3. Loans	9 Months Ended
	Sep. 30, 2014
Receivables [Abstract]	'
Loans	'
	Major classifications of loans at September 30, 2014 and December 31, 2013 are summarized as follows:
	(Dollars in thousands)
		30-Sep-14			31-Dec-13
	Real estate loans
	Construction and land development	$	56,959		63,742
	Single-family residential		202,797		195,975
	Single-family residential -
	Banco de la Gente stated income		47,665		49,463
	Commercial		227,183		209,287
	Multifamily and farmland		10,887		11,801
	Total real estate loans		545,491		530,268
	Loans not secured by real estate
	Commercial loans		78,139		68,047
	Farm loans		10		19
	Consumer loans		10,210		9,593
	All other loans		16,700		13,033
	Total loans		650,550		620,960
	Less allowance for loan losses		12,343		13,501
	Total net loans	$	638,207		607,459
	The Bank grants loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties, and also in Mecklenburg, Union and Wake counties of North Carolina.  Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market.  Risk characteristics of the major components of the Bank’s loan portfolio are discussed below:
	·	Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing.  During the construction phase, a number of factors can result in delays or cost overruns.  If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.  As of September 30, 2014, construction and land development loans comprised approximately 9% of the Bank’s total loan portfolio.
	·	Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.  As of September 30, 2014, single-family residential loans comprised approximately 39% of the Bank’s total loan portfolio, and include Banco de la Gente single-family residential stated income loans, which were approximately 7% of the Bank’s total loan portfolio.
	·	Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.  These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity.  A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property.  As of September 30, 2014, commercial real estate loans comprised approximately 35% of the Bank’s total loan portfolio.
	·	Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business.   In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid or fluctuate in value based on the success of the business.  As of September 30, 2014, commercial loans comprised approximately 12% 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 September 30, 2014 and December 31, 2013:
	30-Sep-14
	(Dollars in thousands)
		Loans 30			Loans 90		Total		Total		Total		Accruing
		to 89			or More		Past Due		Current		Loans		Loans 90 or
		Days Past			Days Past		Loans		Loans				More Days
		Due			Due								Past Due
	Real estate loans
	Construction and land development	$	231		3,546		3,777		53,182		56,959		-
	Single-family residential		2,663		973		3,636		199,161		202,797		120
	Single-family residential -
	Banco de la Gente stated income		1,155		1,006		2,161		45,504		47,665		-
	Commercial		1,864		416		2,280		224,903		227,183		-
	Multifamily and farmland		-		167		167		10,720		10,887		-
	Total real estate loans		5,913		6,108		12,021		533,470		545,491		120
	Loans not secured by real estate
	Commercial loans		444		256		700		77,439		78,139		-
	Farm loans		-		-		-		10		10		-
	Consumer loans		148		11		159		10,051		10,210		-
	All other loans		-		-		-		16,700		16,700		-
	Total loans	$	6,505		6,375		12,880		637,670		650,550		120
	31-Dec-13
	(Dollars in thousands)
		Loans 30			Loans 90		Total		Total		Total		Accruing
		to 89			or More		Past Due		Current		Loans		Loans 90 or
		Days Past			Days Past		Loans		Loans				More Days
		Due			Due								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
The following table presents the Company’s non-accrual loans as of September 30, 2014 and December 31, 2013:
(Dollars in thousands)
	September 30, 2014			31-Dec-13
Real estate loans
Construction and land development	$	3,888		6,546
Single-family residential		2,325		2,980
Single-family residential -
Banco de la Gente stated income		1,955		1,990
Commercial		1,818		2,043
Multifamily and farmland		166		-
Total real estate loans		10,152		13,559
Loans not secured by real estate
Commercial loans		421		250
Consumer loans		61		27
Total	$	10,634		13,836
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 $26.8 million, $27.6 million and $27.1 million at September 30, 2014, December 31, 2013 and September 30, 2013, respectively.  Interest income recognized on accruing impaired loans was $992,000, $916,000 and $1.3 million for the nine months ended September 30, 2014, the nine months ended September 30, 2013 and the year ended December 31, 2013, respectively.  Interest income recognized on accruing impaired loans was $311,000 and $337,000 for the three months ended September 30, 2014 and 2013, respectively.  No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual.
The following tables present the Company’s impaired loans as of September 30, 2014 and December 31, 2013:
30-Sep-14
(Dollars in thousands)
	Unpaid			Recorded		Recorded		Recorded		Related		Average
	Contractual			Investment		Investment		Investment		Allowance		Outstanding  Impaired
	Principal			With No		With		in Impaired				Loans
	Balance			Allowance		Allowance		Loans
Real estate loans
Construction and land development	$	5,704		3,808		645		4,453		40		5,990
Single-family residential		6,520		941		5,360		6,301		139		7,690
Single-family residential -
Banco de la Gente stated income		21,706		-		21,129		21,129		1,210		19,998
Commercial		4,733		2,845		1,548		4,393		192		4,445
Multifamily and farmland		166		-		166		166		1		171
Total impaired real estate loans		38,829		7,594		28,848		36,442		1,582		38,294
Loans not secured by real estate
Commercial loans		760		-		659		659		13		836
Consumer loans		311		-		307		307		5		305
Total impaired loans	$	39,900		7,594		29,814		37,408		1,600		39,435
31-Dec-13
(Dollars in thousands)
	Unpaid			Recorded		Recorded		Recorded		Related		Average
	Contractual			Investment		Investment		Investment		Allowance		Outstanding
	Principal			With No		With		in Impaired				Impaired
	Balance			Allowance		Allowance		Loans				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
Changes in the allowance for loan losses for the three and nine months ended September 30, 2014 and 2013 were as follows:
(Dollars in thousands)
	Real Estate Loans
	Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		Unallocated		Total
	and Land			Family		Family				and					and All
	Development			Residential		Residential-				Farmland					Other
						Banco de la
						Gente
						Stated
						Income
Nine months ended September 30, 2014
Allowance for loan losses:
Beginning balance	$	3,218		3,123		1,863		2,219		37		1,069		-	245		1,727		13,501
Charge-offs		(772	)	(223	)	(148	)	(181	)	-		(197	)	-	(399	)	-		(1,920	)
Recoveries		389		64		17		165		-		42		-	112		-		789
Provision		239		(230	)	(60	)	(435	)	(29	)	240		-	282		(34	)	(27	)
Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
Three months ended September 30, 2014
Allowance for loan losses:
Beginning balance	$	3,387		2,848		1,708		1,839		7		1,081		-	253		1,552		12,675
Charge-offs		(513	)	(30	)	(7	)	(51	)	-		(4	)	-	(144	)	-		(749	)
Recoveries		107		2		-		4		-		15		-	33		-		161
Provision		93		(86	)	(29	)	(24	)	1		62		-	98		141		256
Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
Allowance for loan losses at September 30, 2014:
Ending balance: individually
evaluated for impairment	$	-		67		1,164		182		-		-		-	-		-		1,413
Ending balance: collectively
evaluated for impairment		3,074		2,667		508		1,586		8		1,154		-	240		1,693		10,930
Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
Loans at September 30, 2014:
Ending balance	$	56,959		202,797		47,665		227,183		10,887		78,139		10	26,910		-		650,550
Ending balance: individually
evaluated for impairment	$	3,808		2,312		19,083		3,563		-		-		-	-		-		28,766
Ending balance: collectively
evaluated for impairment	$	53,151		200,485		28,582		223,620		10,887		78,139		10	26,910		-		621,784
(Dollars in thousands)
	Real Estate Loans
	Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		Unallocated		Total
	and Land Development			Family		Family				and					and All
				Residential		Residential-				Farmland					Other
						Banco de la
						Gente
						Stated
						Income
Nine months ended September 30, 2013
Allowance for loan losses:
Beginning balance	$	4,399		3,231		1,998		2,049		28		1,088		-	245		1,385		14,423
Charge-offs		(732	)	(1,204	)	(252	)	(327	)	-		(483	)	-	(485	)	-		(3,483	)
Recoveries		374		75		101		50		-		39		-	111		-		750
Provision		99		864		67		240		8		140		-	379		367		2,164
Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
Three months ended September 30, 2013
Allowance for loan losses:
Beginning balance	$	4,725		3,304		1,924		1,858		34		822		-	229		1,133		14,029
Charge-offs		(17	)	(569	)	(28	)	(51	)	-		(101	)	-	(204	)	-		(970	)
Recoveries		348		31		31		-		-		14		-	34		-		458
Provision		(916		200		(13	)	205		2		49		-	191		619		337
Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
Allowance for loan losses at September 30, 2013:
Ending balance: individually
evaluated for impairment	$	1		60		1,233		-		-		-		-	-		-		1,294
Ending balance: collectively
evaluated for impairment		4,139		2,906		681		2,012		36		784		-	250		1,752		12,560
Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
Loans at September 30, 2013:
Ending balance	$	67,870		191,338		50,035		205,911		11,541		64,957		22	25,387		-		617,061
Ending balance: individually
evaluated for impairment	$	6,790		3,079		19,803		3,100		-		-		-	272		-		33,044
Ending balance: collectively
evaluated for impairment	$	61,080		188,259		30,232		202,811		11,541		64,957		22	25,115		-		584,017
The provision for loan losses for the three months ended September 30, 2014 was $256,000, as compared to $337,000 for the same period one year ago.  The decrease in the provision for loan losses is primarily attributable to a $3.5 million reduction in non-accrual loans from September 30, 2013 to September 30, 2014.
The provision for loan losses for the nine months ended September 30, 2014 was a credit of $27,000, as compared to an expense of $2.2 million for the same period one year ago.  The decrease in the provision for loan losses is primarily attributable to a $1.6 million decrease in net charge-offs during the nine months ended September 30, 2014 compared to the same period one year ago and a $3.5 million reduction in non-accrual loans from September 30, 2013 to September 30, 2014.  The credit to provision for loan losses in the nine months ended September 30, 2014 resulted from, and was considered appropriate as part of, management’s assessment and estimate of the risks in the total loan portfolio and determination of the total allowance for loan losses.  The primary factors contributing to the decrease in the allowance for loan losses at September 30, 2014 to $12.3 million from $13.5 million at December 31, 2013 were the continuing positive trends in indicators of potential losses on loans, primarily non-accrual loans and the reduction in net charge-offs.
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.  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 as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off.
·	Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted.  This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future.  Loss is a temporary grade until the appropriate authority is obtained to charge the loan off.
The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of September 30, 2014 and December 31, 2013:
30-Sep-14
(Dollars in thousands)
	Real Estate Loans
	Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		All Other		Total
	and Land Development			Family		Family				and
				Residential		Residential-				Farmland
						Banco de la
						Gente
						Stated
						Income
1- Excellent Quality	$	-		13,925		-		-		-		1,240		-	1,311		-		16,476
2- High Quality		6,926		71,916		-		37,429		251		17,708		-	3,599		1,947		139,776
3- Good Quality		23,647		74,571		21,165		145,065		6,753		46,624		10	4,598		12,558		334,991
4- Management Attention		12,867		30,167		8,134		34,165		1,026		11,442		-	576		2,195		100,572
5- Watch		6,617		6,624		6,848		6,541		2,690		388		-	42		-		29,750
6- Substandard		6,902		5,594		11,518		3,983		167		727		-	84		-		28,975
7- Doubtful		-		-		-		-		-		-		-	-		-		-
8- Loss		-		-		-		-		-		10		-	-		-		10
Total	$	56,959		202,797		47,665		227,183		10,887		78,139		10	10,210		16,700		650,550
31-Dec-13
(Dollars in thousands)
	Real Estate Loans
	Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		All Other		Total
	and Land Development			Family		Family				and
				Residential		Residential-				Farmland
						Banco de la
						Gente
						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
Total TDR loans amounted to $10.2 million and $21.9 million at September 30, 2014 and December 31, 2013, respectively.  The terms of these loans have been renegotiated to provide a concession to original terms, including a reduction in principal or interest as a result of the deteriorating financial position of the borrower.  There were $1.7 million and $335,000 in performing loans classified as TDR loans at September 30, 2014 and December 31, 2013, respectively.
The following tables present an analysis of loan modifications during the nine months ended September 30, 2014 and 2013:
Nine months ended September 30, 2014
(Dollars in thousands)
	Number of		Pre-Modification			Post-Modification
	Contracts		Outstanding			Outstanding
			Recorded			Recorded
			Investment			Investment
Real estate loans
Construction and land development	1		$	291		291
Single-family residential	2			849		849
Single-family residential -
Banco de la Gente stated income	7			594		594
Total real estate TDR loans	10			1,734		1,734
Total TDR loans	10		$	1,734		1,734
Nine months ended September 30, 2013
(Dollars in thousands)
	Number of		Pre-Modification			Post-Modification
	Contracts		Outstanding			Outstanding
			Recorded			Recorded
			Investment			Investment
Real estate loans
Construction and land development	2		$	825		825
Single-family residential	-			-		-
Single-family residential -
Banco de la Gente stated income	4			466		466
Total real estate TDR loans	6			1,291		1,291
Total TDR loans	6		$	1,291		1,291

4_Net_Earnings_Per_Common_Shar

4. Net Earnings Per Common Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
4. Net Earnings Per Common Share	'
	Net earnings per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per common share.  The average market price during the year is used to compute equivalent shares.
	The reconciliation of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the three and nine months ended September 30, 2014 and 2013 is as follows:
	For the three months ended September 30, 2014
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	2,442	5,617,125	$	0.43
	Effect of dilutive securities:
	Stock options		-	27,599
	Diluted earnings per common share	$	2,442	5,644,724	$	0.43
	For the nine months ended September 30, 2014
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	7,572	5,615,556	$	1.35
	Effect of dilutive securities:
	Stock options		-	24,173
	Diluted earnings per common share	$	7,572	5,639,729	$	1.34
	For the three months ended September 30, 2013
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	1,762	5,613,495	$	0.31
	Effect of dilutive securities:
	Stock options		-	15,180
	Diluted earnings per common share	$	1,762	5,628,675	$	0.31
	For the nine months ended September 30, 2013
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	4,840	5,613,495	$	0.86
	Effect of dilutive securities:
	Stock options		-	8,554
	Diluted earnings per common share	$	4,840	5,622,049	$	0.86

5_StockBased_Compensation

5. Stock-Based Compensation	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
5. Stock-Based Compensation	'
	The Company has an Omnibus Stock Ownership and Long Term Incentive Plan (the “1999 Plan”) whereby certain stock-based rights, such as stock options 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.  As of September 30, 2014, there were no outstanding options under the 1999 Plan.
	Under the 1999 Plan, the Company granted incentive stock options to certain eligible employees in order that they may purchase Company stock at a price equal to the fair market value on the date of the grant.  The options granted in 1999 vested over a five-year period.  Options granted subsequent to 1999 vested over a three-year period.  All options expire ten years after issuance.
	In addition, under the 1999 Plan, the Company granted 3,000 restricted stock units in 2007 at a grant date fair value of $17.40 per share. The Company granted 1,750 restricted stock units at a grant date fair value of $12.80 per share during the third quarter of 2008 and 2,000 restricted stock units at a grant date fair value of $11.37 per share during the fourth quarter of 2008. The Company recognized compensation expense on the restricted stock units over the period of time the restrictions were 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 in each period reflected the changes in the Company’s stock price during such period.  As of September 30, 2014, 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 282,635 shares are currently reserved for possible issuance under the 2009 Plan.   All stock-based rights under the 2009 Plan must be granted or awarded by May 7, 2019 (or ten years from the 2009 Plan effective date).
	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 granted 21,056 restricted stock units under the 2009 Plan at a grant date fair value of $15.70 per share during the first quarter of 2014.  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, four years from the grant date for the 2013 grants and three years from the grant date for the 2014 grants).  The amount of expense recorded each period reflects the changes in the Company’s stock price during such period.  As of September 30, 2014, the total unrecognized compensation expense related to the restricted stock unit grants under the 2009 Plan was $808,000.
	The Company recognized compensation expense for restricted stock unit awards granted under the 2009 Plan of $272,000 and $104,000 for the nine months ended September 30, 2014 and 2013, respectively.

6_Fair_Value

6. Fair Value	9 Months Ended
	Sep. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value	'
	The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination or issuance.
	The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.  These levels are:
	·	Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
	·	Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
	·	Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market.  These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
	Cash and Cash Equivalents
	For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value.  Cash and cash equivalents are reported in the Level 1 fair value category.
	Investment Securities Available for Sale
	Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available.  If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.  Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category.  Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category.
	Other Investments
	For other investments, the carrying value is a reasonable estimate of fair value.  Other investments are reported in the Level 3 fair value category.
	Mortgage Loans Held for Sale
	Mortgage loans held for sale are carried at the lower of aggregate cost or market value.  The cost of mortgage loans held for sale approximates the market value.  Mortgage loans held for sale are reported in the Level 3 fair value category.
	Loans
	The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value.  Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments.
	Cash Surrender Value of Life Insurance
	For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value.  Cash surrender value of life insurance is reported in the Level 2 fair value category.
	Other Real Estate
	The fair value of other real estate is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral.  Other real estate is reported in the Level 3 fair value category.
	Deposits
	The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.  Deposits are reported in the Level 2 fair value category.
	Securities Sold Under Agreements to Repurchase
	For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value.  Securities sold under agreements to repurchase are reported in the Level 2 fair value category.
	Federal Home Loan Bank (“FHLB”) Borrowings
	The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings.  FHLB borrowings are reported in the Level 2 fair value category.
	Junior Subordinated Debentures
	Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value.  Junior subordinated debentures are reported in the Level 2 fair value category.
	Commitments to Extend Credit and Standby Letters of Credit
	Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial.
	Limitations
	Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
	Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
	The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2014 and December 31, 2013.
	(Dollars in thousands)
		30-Sep-14
		Fair Value  Measurements		Level 1	Level 2	Level 3
				Valuation	Valuation	Valuation
	Mortgage-backed securities	$	96,021	-	96,021	-
	U.S. Government
	sponsored enterprises		27,977	-	27,977	-
	State and political subdivisions		151,009	-	151,009	-
	Corporate bonds		2,474	-	2,474	-
	Trust preferred securities		750	-	-	750
	Equity securities		1,556	1,556	-	-
	(Dollars in thousands)
		31-Dec-13
		Fair Value		Level 1	Level 2	Level 3
		Measurements		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	-	-
	The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the nine months ended September 30, 2014.
	(Dollars in thousands)
		Investment Securities
		Available for Sale
		Level 3 Valuation
	Balance, beginning of period	$	750
	Change in book value		-
	Change in gain/(loss) realized and unrealized		-
Purchases/(sales and calls)		-
Transfers in and/or (out) of Level 3		-
Balance, end of period	$	750
Change in unrealized gain/(loss) for assets still held in Level 3	$	-
The fair value measurements for impaired loans and other real estate on a non-recurring basis at September 30, 2014 and December 31, 2013 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		Level 1	Level 2	Level 3	Total Gains/(Losses) for
	Measurements		Valuation	Valuation	Valuation	the Nine Months Ended
	September 30, 2014					30-Sep-14
Impaired loans	$	35,808	-	-	35,808	(931	)
Other real estate		1,840	-	-	1,840	(384	)
(Dollars in thousands)
	Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for
	Measurements		Valuation	Valuation	Valuation	the Year Ended
	December 31, 2013					31-Dec-13
Impaired loans	$	39,780	-	-	39,780	(3,207	)
Other real estate		1,679	-	-	1,679	(581	)
The carrying amount and estimated fair value of financial instruments at September 30, 2014 and December 31, 2013 are as follows:
(Dollars in thousands)
			Fair Value Measurements at September 30, 2014
	Carrying		Level 1	Level 2	Level 3	Total
	Amount
Assets:
Cash and cash equivalents	$	85,523	85,523	-	-	85,523
Investment securities available for sale		279,787	1,556	277,481	750	279,787
Other investments		4,706	-	-	4,706	4,706
Mortgage loans held for sale		887	-	-	887	887
Loans, net		638,207	-	-	641,923	641,923
Cash surrender value of life insurance		14,020	-	14,020	-	14,020
Liabilities:
Deposits	$	816,795	-	815,640	-	815,640
Securities sold under agreements
to repurchase		47,020	-	47,020	-	47,020
FHLB borrowings		65,000	-	64,594	-	64,594
Junior subordinated debentures		20,619	-	20,619	-	20,619
(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

7_Derivative_Instruments_and_H

7. Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2014
Notes to Financial Statements	'
7. Derivative Instruments and Hedging Activities	'
	Accounting Policy for Derivative Instruments and Hedging Activities
	The disclosure requirements for derivatives and hedging activities have the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows.  The disclosure requirements include qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about the fair value of, and gains and losses on, derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.
	The Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
	Risk Management Objective of Using Derivatives
	The Company has an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility.  By using derivative instruments, the Company is exposed to credit and market risk.  If the counterparty fails to perform, credit risk is equal to the extent of the fair value gain in the derivative.  The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by the Company.  The Company did not have any interest rate derivatives outstanding as of September 30, 2014 or December 31, 2013.

8_Subsequent_Events

8. Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued.  Management has concluded that there were no material subsequent events.

1_Summary_of_Significant_Accou1

1. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Recently Issued 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.
	In May 2014, FASB issued ASU No. 2014-09, (Topic 606):  Revenue from Contracts with Customers.  ASU No. 2014-09 provides guidance on the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive.  ASU No. 2014-09 is effective for reporting periods beginning after December 15, 2016.  The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
	In June 2014, FASB issued ASU No. 2014-11, (Subtopic 860-10): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  ASU No. 2014-11 makes limited amendments to the guidance in FASB Accounting Standards Codification (“ASC”) 860, Transfers and Servicing, on accounting for certain repurchase agreements (repos). ASU No. 2014-11 (a) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (b) eliminates accounting guidance on linked repurchase financing transactions, and (c) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends FASB ASC 860 to clarify that repos and securities lending transactions that do not meet all of the derecognition criteria should be accounted for as secured borrowings.  In addition, ASU No. 2014-11 provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets.  ASU No. 2014-11 is effective for reporting periods beginning the first interim or annual period 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.
	In August 2014, FASB issued ASU No. 2014-14, (Subtopic 310-40): Receivables – Troubled debt Restructurings by Creditors.  ASU No. 2014-14 provides guidance on the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure by a creditor.  ASU No. 2014-14 is effective for reporting periods beginning the first interim or annual period 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.

2_Investment_Securities_Tables

2. Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2014
Investment Securities Tables	'
Investment securities available for sale	'
	Investment securities available for sale at September 30, 2014 and December 31, 2013 are as follows:
	(Dollars in thousands)
		30-Sep-14
		Amortized		Gross	Gross	Estimated
		Cost		Unrealized	Unrealized	Fair Value
				Gains	Losses
	Mortgage-backed securities	$	94,571	1,591	141	96,021
	U.S. Government
	sponsored enterprises		27,939	185	147	27,977
	State and political subdivisions		146,108	5,612	711	151,009
	Corporate bonds		2,482	14	22	2,474
	Trust preferred securities		750	-	-	750
	Equity securities		748	808	-	1,556
	Total	$	272,598	8,210	1,021	279,787
	(Dollars in thousands)
		31-Dec-13
		Amortized		Gross	Gross	Estimated
		Cost		Unrealized	Unrealized	Fair Value
				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
Current fair value and associated unrealized losses on investments in securities with unrealized losses	'
	The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2014 and December 31, 2013 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.
	(Dollars in thousands)
		30-Sep-14
		Less than 12 Months			12 Months or More		Total
		Fair Value		Unrealized	Fair Value	Unrealized	Fair Value	Unrealized
				Losses		Losses		Losses
	Mortgage-backed securities	$	11,266	14	8,126	127	19,392	141
	U.S. Government
	sponsored enterprises		8,113	74	3,926	73	12,039	147
	State and political subdivisions		-	-	31,377	711	31,377	711
	Corporate bonds		-	-	527	22	527	22
	Total	$	19,379	88	43,956	933	63,335	1,021
	(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
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity	'
	The amortized cost and estimated fair value of investment securities available for sale at September 30, 2014, by contractual maturity, are shown below:
	30-Sep-14
	(Dollars in thousands)
		Amortized		Estimated
		Cost		Fair Value
	Due within one year	$	5,362	5,393
	Due from one to five years		41,153	43,023
	Due from five to ten years		113,866	116,443
	Due after ten years		16,898	17,351
	Mortgage-backed securities		94,571	96,021
	Equity securities		748	1,556
	Total	$	272,598	279,787

3_Loans_Tables

3. Loans (Tables)	9 Months Ended
	Sep. 30, 2014
Loans Tables	'
Major classifications of loans	'
	Major classifications of loans at September 30, 2014 and December 31, 2013 are summarized as follows:
	(Dollars in thousands)
		30-Sep-14			31-Dec-13
	Real estate loans
	Construction and land development	$	56,959		63,742
	Single-family residential		202,797		195,975
	Single-family residential -
	Banco de la Gente stated income		47,665		49,463
	Commercial		227,183		209,287
	Multifamily and farmland		10,887		11,801
	Total real estate loans		545,491		530,268
	Loans not secured by real estate
	Commercial loans		78,139		68,047
	Farm loans		10		19
	Consumer loans		10,210		9,593
	All other loans		16,700		13,033
	Total loans		650,550		620,960
	Less allowance for loan losses		12,343		13,501
	Total net loans	$	638,207		607,459
Age analysis of past due loans, by loan type	'
	The following tables present an age analysis of past due loans, by loan type, as of September 30, 2014 and December 31, 2013:
	30-Sep-14
	(Dollars in thousands)
		Loans 30			Loans 90		Total		Total		Total		Accruing
		to 89			or More		Past Due		Current		Loans		Loans 90 or
		Days Past			Days Past		Loans		Loans				More Days
		Due			Due								Past Due
	Real estate loans
	Construction and land development	$	231		3,546		3,777		53,182		56,959		-
	Single-family residential		2,663		973		3,636		199,161		202,797		120
	Single-family residential -
	Banco de la Gente stated income		1,155		1,006		2,161		45,504		47,665		-
	Commercial		1,864		416		2,280		224,903		227,183		-
	Multifamily and farmland		-		167		167		10,720		10,887		-
	Total real estate loans		5,913		6,108		12,021		533,470		545,491		120
	Loans not secured by real estate
	Commercial loans		444		256		700		77,439		78,139		-
	Farm loans		-		-		-		10		10		-
	Consumer loans		148		11		159		10,051		10,210		-
	All other loans		-		-		-		16,700		16,700		-
	Total loans	$	6,505		6,375		12,880		637,670		650,550		120
	31-Dec-13
	(Dollars in thousands)
		Loans 30			Loans 90		Total		Total		Total		Accruing
		to 89			or More		Past Due		Current		Loans		Loans 90 or
		Days Past			Days Past		Loans		Loans				More Days
		Due			Due								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
Non-accrual loans	'
	The following table presents the Company’s non-accrual loans as of September 30, 2014 and December 31, 2013:
	(Dollars in thousands)
		30-Sep-14			31-Dec-13
	Real estate loans
	Construction and land development	$	3,888		6,546
	Single-family residential		2,325		2,980
	Single-family residential -
	Banco de la Gente stated income		1,955		1,990
	Commercial		1,818		2,043
	Multifamily and farmland		166		-
	Total real estate loans		10,152		13,559
	Loans not secured by real estate
	Commercial loans		421		250
	Consumer loans		61		27
	Total	$	10,634		13,836
Impaired loans	'
	The following tables present the Company’s impaired loans as of September 30, 2014 and December 31, 2013:
	30-Sep-14
	(Dollars in thousands)
		Unpaid  Contractual			Recorded		Recorded		Recorded		Related		Average
		Principal			Investment		Investment		Investment		Allowance		Outstanding  Impaired
		Balance			With No		With		in Impaired				Loans
					Allowance		Allowance		Loans
	Real estate loans
	Construction and land development	$	5,704		3,808		645		4,453		40		5,990
	Single-family residential		6,520		941		5,360		6,301		139		7,690
	Single-family residential -
	Banco de la Gente stated income		21,706		-		21,129		21,129		1,210		19,998
	Commercial		4,733		2,845		1,548		4,393		192		4,445
	Multifamily and farmland		166		-		166		166		1		171
	Total impaired real estate loans		38,829		7,594		28,848		36,442		1,582		38,294
	Loans not secured by real estate
	Commercial loans		760		-		659		659		13		836
	Consumer loans		311		-		307		307		5		305
	Total impaired loans	$	39,900		7,594		29,814		37,408		1,600		39,435
	31-Dec-13
	(Dollars in thousands)
		Unpaid			Recorded		Recorded		Recorded		Related		Average
		Contractual			Investment		Investment		Investment		Allowance		Outstanding
		Principal			With No		With		in Impaired				Impaired
		Balance			Allowance		Allowance		Loans				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
Changes in the allowance for loan losses	'
	Changes in the allowance for loan losses for the three and nine months ended September 30, 2014 and 2013 were as follows:
	(Dollars in thousands)
		Real Estate Loans
		Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		Unallocated		Total
		and Land			Family		Family				and					and All
		Development			Residential		Residential- Banco de la				Farmland					Other
							Gente
							Stated
							Income
	Nine months ended September 30, 2014
	Allowance for loan losses:
	Beginning balance	$	3,218		3,123		1,863		2,219		37		1,069		-	245		1,727		13,501
	Charge-offs		(772	)	(223	)	(148	)	(181	)	-		(197	)	-	(399	)	-		(1,920	)
	Recoveries		389		64		17		165		-		42		-	112		-		789
	Provision		239		(230	)	(60	)	(435	)	(29	)	240		-	282		(34	)	(27	)
	Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
	Three months ended September 30, 2014
	Allowance for loan losses:
	Beginning balance	$	3,387		2,848		1,708		1,839		7		1,081		-	253		1,552		12,675
	Charge-offs		(513	)	(30	)	(7	)	(51	)	-		(4	)	-	(144	)	-		(749	)
	Recoveries		107		2		-		4		-		15		-	33		-		161
	Provision		93		(86	)	(29	)	(24	)	1		62		-	98		141		256
	Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
	Allowance for loan losses at September 30, 2014:
	Ending balance: individually
	evaluated for impairment	$	-		67		1,164		182		-		-		-	-		-		1,413
	Ending balance: collectively
	evaluated for impairment		3,074		2,667		508		1,586		8		1,154		-	240		1,693		10,930
	Ending balance	$	3,074		2,734		1,672		1,768		8		1,154		-	240		1,693		12,343
	Loans at September 30, 2014:
	Ending balance	$	56,959		202,797		47,665		227,183		10,887		78,139		10	26,910		-		650,550
	Ending balance: individually
	evaluated for impairment	$	3,808		2,312		19,083		3,563		-		-		-	-		-		28,766
	Ending balance: collectively
	evaluated for impairment	$	53,151		200,485		28,582		223,620		10,887		78,139		10	26,910		-		621,784
	(Dollars in thousands)
		Real Estate Loans
		Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		Unallocated		Total
		and Land Development			Family		Family				and					and All
					Residential		Residential-				Farmland					Other
							Banco de la
							Gente
							Stated
							Income
	Nine months ended September 30, 2013
	Allowance for loan losses:
	Beginning balance	$	4,399		3,231		1,998		2,049		28		1,088		-	245		1,385		14,423
	Charge-offs		(732	)	(1,204	)	(252	)	(327	)	-		(483	)	-	(485	)	-		(3,483	)
	Recoveries		374		75		101		50		-		39		-	111		-		750
	Provision		99		864		67		240		8		140		-	379		367		2,164
	Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
	Three months ended September 30, 2013
	Allowance for loan losses:
	Beginning balance	$	4,725		3,304		1,924		1,858		34		822		-	229		1,133		14,029
	Charge-offs		(17	)	(569	)	(28	)	(51	)	-		(101	)	-	(204	)	-		(970	)
	Recoveries		348		31		31		-		-		14		-	34		-		458
	Provision		(916		200		(13	)	205		2		49		-	191		619		337
	Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
	Allowance for loan losses at September 30, 2013:
	Ending balance: individually
	evaluated for impairment	$	1		60		1,233		-		-		-		-	-		-		1,294
	Ending balance: collectively
	evaluated for impairment		4,139		2,906		681		2,012		36		784		-	250		1,752		12,560
Ending balance	$	4,140		2,966		1,914		2,012		36		784		-	250		1,752		13,854
Loans at September 30, 2013:
Ending balance	$	67,870		191,338		50,035		205,911		11,541		64,957		22	25,387		-		617,061
Ending balance: individually
evaluated for impairment	$	6,790		3,079		19,803		3,100		-		-		-	272		-		33,044
Ending balance: collectively
evaluated for impairment	$	61,080		188,259		30,232		202,811		11,541		64,957		22	25,115		-		584,017
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 September 30, 2014 and December 31, 2013:
	30-Sep-14
	(Dollars in thousands)
		Real Estate Loans
		Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		All Other		Total
		and Land Development			Family		Family				and
					Residential		Residential-				Farmland
							Banco de la
							Gente
							Stated
							Income
	1- Excellent Quality	$	-		13,925		-		-		-		1,240		-	1,311		-		16,476
	2- High Quality		6,926		71,916		-		37,429		251		17,708		-	3,599		1,947		139,776
	3- Good Quality		23,647		74,571		21,165		145,065		6,753		46,624		10	4,598		12,558		334,991
	4- Management Attention		12,867		30,167		8,134		34,165		1,026		11,442		-	576		2,195		100,572
	5- Watch		6,617		6,624		6,848		6,541		2,690		388		-	42		-		29,750
	6- Substandard		6,902		5,594		11,518		3,983		167		727		-	84		-		28,975
	7- Doubtful		-		-		-		-		-		-		-	-		-		-
	8- Loss		-		-		-		-		-		10		-	-		-		10
	Total	$	56,959		202,797		47,665		227,183		10,887		78,139		10	10,210		16,700		650,550
	31-Dec-13
	(Dollars in thousands)
		Real Estate Loans
		Construction			Single-		Single-		Commercial		Multifamily		Commercial		Farm	Consumer		All Other		Total
		and Land Development			Family		Family				and
					Residential		Residential-				Farmland
							Banco de la
							Gente
							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
Analysis of loan modifications	'
	The following tables present an analysis of loan modifications during the nine months ended September 30, 2014 and 2013:
	Nine months ended September 30, 2014
	(Dollars in thousands)
		Number of		Pre-Modification			Post-Modification
		Contracts		Outstanding			Outstanding
				Recorded			Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	1		$	291		291
	Single-family residential	2			849		849
	Single-family residential -
	Banco de la Gente stated income	7			594		594
	Total real estate TDR loans	10			1,734		1,734
	Total TDR loans	10		$	1,734		1,734
	Nine months ended September 30, 2013
	(Dollars in thousands)
		Number of		Pre-Modification			Post-Modification
		Contracts		Outstanding			Outstanding
				Recorded			Recorded
				Investment			Investment
	Real estate loans
	Construction and land development	2		$	825		825
	Single-family residential	-			-		-
	Single-family residential -
	Banco de la Gente stated income	4			466		466
	Total real estate TDR loans	6			1,291		1,291
	Total TDR loans	6		$	1,291		1,291

4_Net_Earnings_Per_Common_Shar1

4. Net Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share	'
	The reconciliation of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the three and nine months ended September 30, 2014 and 2013 is as follows:
	For the three months ended September 30, 2014
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	2,442	5,617,125	$	0.43
	Effect of dilutive securities:
	Stock options		-	27,599
	Diluted earnings per common share	$	2,442	5,644,724	$	0.43
	For the nine months ended September 30, 2014
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	7,572	5,615,556	$	1.35
	Effect of dilutive securities:
	Stock options		-	24,173
	Diluted earnings per common share	$	7,572	5,639,729	$	1.34
	For the three months ended September 30, 2013
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	1,762	5,613,495	$	0.31
	Effect of dilutive securities:
	Stock options		-	15,180
	Diluted earnings per common share	$	1,762	5,628,675	$	0.31
	For the nine months ended September 30, 2013
		Net Earnings		Common Shares	Per Share
		Available to			Amount
		Common
		Shareholders
		(Dollars in
		thousands)
	Basic earnings per common share	$	4,840	5,613,495	$	0.86
	Effect of dilutive securities:
	Stock options		-	8,554
	Diluted earnings per common share	$	4,840	5,622,049	$	0.86

6_Fair_Value_Tables

6. Fair Value (Tables)	9 Months Ended
	Sep. 30, 2014
Fair Value Disclosures [Abstract]	'
Available for sale securities measured at fair value on a recurring basis	'
	The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2014 and December 31, 2013.
	(Dollars in thousands)
		30-Sep-14
		Fair Value  Measurements		Level 1	Level 2	Level 3
				Valuation	Valuation	Valuation
	Mortgage-backed securities	$	96,021	-	96,021	-
	U.S. Government
	sponsored enterprises		27,977	-	27,977	-
	State and political subdivisions		151,009	-	151,009	-
	Corporate bonds		2,474	-	2,474	-
	Trust preferred securities		750	-	-	750
	Equity securities		1,556	1,556	-	-
	(Dollars in thousands)
		31-Dec-13
		Fair Value		Level 1	Level 2	Level 3
		Measurements		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	-	-
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs	'
	The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the nine months ended September 30, 2014.
	(Dollars in thousands)
		Investment Securities
		Available for Sale
		Level 3 Valuation
	Balance, beginning of period	$	750
	Change in book value		-
	Change in gain/(loss) realized and unrealized		-
	Purchases/(sales and calls)		-
	Transfers in and/or (out) of Level 3		-
	Balance, end of period	$	750
	Change in unrealized gain/(loss) for assets still held in Level 3	$	-
Fair value measurements for impaired loans and other real estate on a non-recurring basis	'
	The fair value measurements for impaired loans and other real estate on a non-recurring basis at September 30, 2014 and December 31, 2013 are presented below.
	(Dollars in thousands)
		Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for
		Measurements		Valuation	Valuation	Valuation	the Nine Months Ended
		September 30, 2014					30-Sep-14
	Impaired loans	$	35,808	-	-	35,808	(931	)
	Other real estate		1,840	-	-	1,840	(384	)
	(Dollars in thousands)
		Fair Value		Level 1	Level 2	Level 3	Total Gains/(Losses) for
		Measurements		Valuation	Valuation	Valuation	the Year Ended
		December 31, 2013					31-Dec-13
	Impaired loans	$	39,780	-	-	39,780	(3,207	)
	Other real estate		1,679	-	-	1,679	(581	)
Carrying amount and estimated fair value of the Company's financial instruments	'
	The carrying amount and estimated fair value of financial instruments at September 30, 2014 and December 31, 2013 are as follows:
	(Dollars in thousands)
				Fair Value Measurements at September 30, 2014
		Carrying		Level 1	Level 2	Level 3	Total
		Amount
	Assets:
	Cash and cash equivalents	$	85,523	85,523	-	-	85,523
	Investment securities available for sale		279,787	1,556	277,481	750	279,787
	Other investments		4,706	-	-	4,706	4,706
	Mortgage loans held for sale		887	-	-	887	887
	Loans, net		638,207	-	-	641,923	641,923
	Cash surrender value of life insurance		14,020	-	14,020	-	14,020
	Liabilities:
	Deposits	$	816,795	-	815,640	-	815,640
	Securities sold under agreements
	to repurchase		47,020	-	47,020	-	47,020
	FHLB borrowings		65,000	-	64,594	-	64,594
	Junior subordinated debentures		20,619	-	20,619	-	20,619
	(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

2_Investment_Securities_Detail

2. Investment Securities (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment securities available for sale	'	'
Amortized Cost	$272,598	$299,809
Estimated Fair Value	279,787	297,890
Mortgage-backed securities	'	'
Investment securities available for sale	'	'
Amortized Cost	94,571	123,706
Gross Unrealized Gains	1,591	1,040
Gross Unrealized Losses	141	769
Estimated Fair Value	96,021	123,977
U.S. Government sponsored enterprises	'	'
Investment securities available for sale	'	'
Amortized Cost	27,939	22,115
Gross Unrealized Gains	185	97
Gross Unrealized Losses	147	69
Estimated Fair Value	27,977	22,143
State and political subdivisions	'	'
Investment securities available for sale	'	'
Amortized Cost	146,108	148,468
Gross Unrealized Gains	5,612	1,987
Gross Unrealized Losses	711	5,087
Estimated Fair Value	151,009	145,368
Corporate bonds	'	'
Investment securities available for sale	'	'
Amortized Cost	2,482	3,522
Gross Unrealized Gains	14	11
Gross Unrealized Losses	22	70
Estimated Fair Value	2,474	3,463
Trust preferred securities	'	'
Investment securities available for sale	'	'
Amortized Cost	750	1,250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	750	1,250
Equity securities	'	'
Investment securities available for sale	'	'
Amortized Cost	748	748
Gross Unrealized Gains	808	941
Gross Unrealized Losses	0	0
Estimated Fair Value	1,556	1,689
Total	'	'
Investment securities available for sale	'	'
Amortized Cost	272,598	299,809
Gross Unrealized Gains	8,210	4,076
Gross Unrealized Losses	1,021	5,995
Estimated Fair Value	$279,787	$297,890

2_Investment_securities_Contin

2. Investment securities, Continuous Unrealized Loss Position (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	$19,379	$129,742
Less than 12 Months, Unrealized Losses	88	5,639
12 Months or More, Fair Value	43,956	12,463
12 Months or More, Unrealized Losses	933	356
Total, Fair Value	63,335	142,205
Total, Unrealized Losses	1,021	5,995
Mortgage-backed securities	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	11,266	40,857
Less than 12 Months, Unrealized Losses	14	691
12 Months or More, Fair Value	8,126	10,128
12 Months or More, Unrealized Losses	127	78
Total, Fair Value	19,392	50,985
Total, Unrealized Losses	141	769
U.S. Government sponsored enterprises	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	8,113	9,714
Less than 12 Months, Unrealized Losses	74	69
12 Months or More, Fair Value	3,926	0
12 Months or More, Unrealized Losses	73	0
Total, Fair Value	12,039	9,714
Total, Unrealized Losses	147	69
State and political subdivisions	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	0	77,187
Less than 12 Months, Unrealized Losses	0	4,863
12 Months or More, Fair Value	31,377	1,824
12 Months or More, Unrealized Losses	711	224
Total, Fair Value	31,377	79,011
Total, Unrealized Losses	711	5,087
Corporate bonds	'	'
Investment securities with continuous unrealized loss position	'	'
Less than 12 Months, Fair Value	0	1,984
Less than 12 Months, Unrealized Losses	0	16
12 Months or More, Fair Value	527	511
12 Months or More, Unrealized Losses	22	54
Total, Fair Value	527	2,495
Total, Unrealized Losses	$22	$70

2_Investment_securities_Contra

2. Investment securities, Contractual Maturity (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Amortized Cost	'	'
Due within one year	$5,362	'
Due from one to five years	41,153	'
Due from five to ten years	113,866	'
Due after ten years	16,898	'
Mortgage-backed securities	94,571	'
Equity securities	748	'
Total	272,598	299,809
Estimated Fair Value	'	'
Due within one year	5,393	'
Due from one to five years	43,023	'
Due from five to ten years	116,443	'
Due after ten years	17,351	'
Mortgage-backed securities	96,021	'
Equity securities	1,556	'
Total	$279,787	'

2_Investment_Securities_Detail1

2. Investment Securities (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Investment Securities Details Narrative	'	'	'
Unrealized losses in the investment securites portfolio relating to debt securities	$1,000	'	'
Proceeds from sales of investment securities available for sale	20,202	17,463	'
Gains on sales of available-to-sale securities	291	738	'
Loss on sales of available-to-sale securities	25	124	'
Securities pledged to secure public deposits	$103,000	'	$86,000

3_Loans_Details

3. Loans (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Major classifications	'	'	'	'	'	'
Total loans	$650,550	'	$620,960	$617,061	'	'
Less allowance for loan losses	12,343	12,675	13,501	13,854	14,029	14,423
Total Net loans	638,207	'	607,459	'	'	'
Construction and land development	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	56,959	'	63,742	67,870	'	'
Less allowance for loan losses	3,074	3,387	3,218	4,140	4,725	4,399
Single-family residential	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	202,797	'	195,975	191,338	'	'
Less allowance for loan losses	2,734	2,848	3,123	2,966	3,304	3,231
Single-family residential - Banco de la Gente stated income	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	47,665	'	49,463	50,035	'	'
Less allowance for loan losses	1,672	1,708	1,863	1,914	1,924	1,998
Commercial	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	227,183	'	209,287	205,911	'	'
Less allowance for loan losses	1,768	1,839	2,219	2,012	1,858	2,049
Multifamily and Farmland	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	10,887	'	11,801	11,541	'	'
Less allowance for loan losses	8	7	37	36	34	28
Total real estate loans	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	545,491	'	530,268	'	'	'
Commercial loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	78,139	'	68,047	64,957	'	'
Less allowance for loan losses	1,154	1,081	1,069	784	822	1,088
Farm loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	10	'	19	22	'	'
Less allowance for loan losses	0	0	0	0	0	0
Consumer loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	10,210	'	9,593	'	'	'
All other loans (not secured by real estate)	'	'	'	'	'	'
Major classifications	'	'	'	'	'	'
Total loans	$16,700	'	$13,033	'	'	'

3_Loans_Past_Due_Details

3. Loans, Past Due (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Past due loans	'	'	'
Loans 30-89 Days Past Due	$6,505	$20,192	'
Loans 90 or More Days Past Due	6,375	9,451	'
Total Past Due Loans	12,880	29,643	'
Total Current Loans	637,670	591,317	'
Total loans	650,550	620,960	617,061
Accruing Loans 90 or More Days Past Due	120	882	'
Construction and land development	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	231	3,416	'
Loans 90 or More Days Past Due	3,546	5,426	'
Total Past Due Loans	3,777	8,842	'
Total Current Loans	53,182	54,900	'
Total loans	56,959	63,742	'
Accruing Loans 90 or More Days Past Due	0	0	'
Single-family residential	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	2,663	4,518	'
Loans 90 or More Days Past Due	973	1,555	'
Total Past Due Loans	3,636	6,073	'
Total Current Loans	199,161	189,902	'
Total loans	202,797	195,975	'
Accruing Loans 90 or More Days Past Due	120	0	'
Single-family residential - Banco de la Gente stated income	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	1,155	9,833	'
Loans 90 or More Days Past Due	1,006	1,952	'
Total Past Due Loans	2,161	11,785	'
Total Current Loans	45,504	37,678	'
Total loans	47,665	49,463	'
Accruing Loans 90 or More Days Past Due	0	881	'
Commercial	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	1,864	1,643	'
Loans 90 or More Days Past Due	416	486	'
Total Past Due Loans	2,280	2,129	'
Total Current Loans	224,903	207,158	'
Total loans	227,183	209,287	'
Accruing Loans 90 or More Days Past Due	0	0	'
Multifamily and Farmland	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	0	177	'
Loans 90 or More Days Past Due	167	0	'
Total Past Due Loans	167	177	'
Total Current Loans	10,720	11,624	'
Total loans	10,887	11,801	'
Accruing Loans 90 or More Days Past Due	0	0	'
Total real estate loans	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	5,913	19,587	'
Loans 90 or More Days Past Due	6,108	9,419	'
Total Past Due Loans	12,021	29,006	'
Total Current Loans	533,470	501,262	'
Total loans	545,491	530,268	'
Accruing Loans 90 or More Days Past Due	120	881	'
Commercial loans (not secured by real estate)	'	'	'
Past due loans	'	'	'
Loans 30-89 Days Past Due	444	424	'
Loans 90 or More Days Past Due	256	29	'
Total Past Due Loans	700	453	'
Total Current Loans	77,439	67,594	'
Total loans	78,139	68,047	'
Accruing Loans 90 or More Days Past Due	0	0	'
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	10	19	'
Total loans	10	19	'
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	148	181	'
Loans 90 or More Days Past Due	11	3	'
Total Past Due Loans	159	184	'
Total Current Loans	10,051	9,409	'
Total loans	10,210	9,593	'
Accruing Loans 90 or More Days Past Due	0	1	'
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	16,700	13,033	'
Total loans	16,700	13,033	'
Accruing Loans 90 or More Days Past Due	$0	$0	'

3_Loans_Nonaccrual_Details

3. Loans, Nonaccrual (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Non-accrual loans	'	'
Non-accrual loans	$10,634	$13,836
Construction and land development	'	'
Non-accrual loans	'	'
Non-accrual loans	3,888	6,546
Single-family residential	'	'
Non-accrual loans	'	'
Non-accrual loans	2,325	2,980
Single-family residential - Banco de la Gente stated income	'	'
Non-accrual loans	'	'
Non-accrual loans	1,955	1,990
Commercial	'	'
Non-accrual loans	'	'
Non-accrual loans	1,818	2,043
Multifamily and Farmland	'	'
Non-accrual loans	'	'
Non-accrual loans	166	0
Total real estate loans	'	'
Non-accrual loans	'	'
Non-accrual loans	10,152	13,559
Commercial loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	421	250
Consumer loans (not secured by real estate)	'	'
Non-accrual loans	'	'
Non-accrual loans	$61	$27

3_Loans_Impaired_Details

3. Loans, Impaired (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Impaired loans	'	'
Unpaid Contractual Principal Balance	$39,900	$46,305
Recorded Investment With No Allowance	7,594	11,287
Recorded Investment With Allowance	29,814	30,168
Recorded Investment in Impaired Loans	37,408	41,455
Related Allowance	1,600	1,675
Average Outstanding Impaired Loans	39,435	42,818
Construction and land development	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	5,704	9,861
Recorded Investment With No Allowance	3,808	6,293
Recorded Investment With Allowance	645	868
Recorded Investment in Impaired Loans	4,453	7,161
Related Allowance	40	53
Average Outstanding Impaired Loans	5,990	8,289
Single-family residential	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	6,520	7,853
Recorded Investment With No Allowance	941	1,428
Recorded Investment With Allowance	5,360	5,633
Recorded Investment in Impaired Loans	6,301	7,061
Related Allowance	139	123
Average Outstanding Impaired Loans	7,690	7,859
Single-family residential - Banco de la Gente stated income	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	21,706	22,034
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	21,129	21,242
Recorded Investment in Impaired Loans	21,129	21,242
Related Allowance	1,210	1,300
Average Outstanding Impaired Loans	19,998	21,242
Commercial	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	4,733	5,079
Recorded Investment With No Allowance	2,845	3,045
Recorded Investment With Allowance	1,548	1,489
Recorded Investment in Impaired Loans	4,393	4,534
Related Allowance	192	182
Average Outstanding Impaired Loans	4,445	4,171
Multifamily and Farmland	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	166	177
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	166	177
Recorded Investment in Impaired Loans	166	177
Related Allowance	1	1
Average Outstanding Impaired Loans	171	184
Total real estate loans	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	38,829	45,004
Recorded Investment With No Allowance	7,594	10,766
Recorded Investment With Allowance	28,848	29,409
Recorded Investment in Impaired Loans	36,442	40,175
Related Allowance	1,582	1,659
Average Outstanding Impaired Loans	38,294	41,745
Commercial loans (not secured by real estate)	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	760	999
Recorded Investment With No Allowance	0	257
Recorded Investment With Allowance	659	724
Recorded Investment in Impaired Loans	659	981
Related Allowance	13	15
Average Outstanding Impaired Loans	836	826
Consumer loans (not secured by real estate)	'	'
Impaired loans	'	'
Unpaid Contractual Principal Balance	311	302
Recorded Investment With No Allowance	0	264
Recorded Investment With Allowance	307	35
Recorded Investment in Impaired Loans	307	299
Related Allowance	5	1
Average Outstanding Impaired Loans	$305	$247

3_Loans_Allowance_for_Loan_Los

3. Loans, Allowance for Loan Losses (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Allowance for loan losses	'	'	'	'	'
Beginning balance	$12,675	$14,029	$13,501	$14,423	'
Charge-offs	-749	-970	-1,920	-3,483	'
Recoveries	161	458	789	750	'
Provision	256	337	-27	2,164	'
Ending balance	12,343	13,854	12,343	13,854	'
Ending balance: individually evaluated for impairments	1,413	1,294	1,413	1,294	'
Ending balance: collectively evaluated for impairments	10,930	12,560	10,930	12,560	'
Ending balance	12,343	13,854	12,343	13,854	'
Loans	'	'	'	'	'
Ending balance	650,550	617,061	650,550	617,061	620,960
Ending balance: individually evaluated for impairment	28,766	33,044	28,766	33,044	'
Ending balance: collectively evaluated for impairment	621,784	584,017	621,784	584,017	'
Construction and land development	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	3,387	4,725	3,218	4,399	'
Charge-offs	-513	-17	-772	-732	'
Recoveries	107	348	389	374	'
Provision	93	-916	239	99	'
Ending balance	3,074	4,140	3,074	4,140	'
Ending balance: individually evaluated for impairments	0	1	0	1	'
Ending balance: collectively evaluated for impairments	3,074	4,139	3,074	4,139	'
Ending balance	3,074	4,140	3,074	4,140	'
Loans	'	'	'	'	'
Ending balance	56,959	67,870	56,959	67,870	63,742
Ending balance: individually evaluated for impairment	3,808	6,790	3,808	6,790	'
Ending balance: collectively evaluated for impairment	53,151	61,080	53,151	61,080	'
Single-family residential	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	2,848	3,304	3,123	3,231	'
Charge-offs	-30	-569	-223	-1,204	'
Recoveries	2	31	64	75	'
Provision	-86	200	-230	864	'
Ending balance	2,734	2,966	2,734	2,966	'
Ending balance: individually evaluated for impairments	67	60	67	60	'
Ending balance: collectively evaluated for impairments	2,667	2,906	2,667	2,906	'
Ending balance	2,734	2,966	2,734	2,966	'
Loans	'	'	'	'	'
Ending balance	202,797	191,338	202,797	191,338	195,975
Ending balance: individually evaluated for impairment	2,312	3,079	2,312	3,079	'
Ending balance: collectively evaluated for impairment	200,485	188,259	200,485	188,259	'
Single-family residential - Banco de la Gente stated income	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,708	1,924	1,863	1,998	'
Charge-offs	-7	-28	-148	-252	'
Recoveries	0	31	17	101	'
Provision	-29	-13	-60	67	'
Ending balance	1,672	1,914	1,672	1,914	'
Ending balance: individually evaluated for impairments	1,164	1,233	1,164	1,233	'
Ending balance: collectively evaluated for impairments	508	681	508	681	'
Ending balance	1,672	1,914	1,672	1,914	'
Loans	'	'	'	'	'
Ending balance	47,665	50,035	47,665	50,035	49,463
Ending balance: individually evaluated for impairment	19,083	19,803	19,083	19,803	'
Ending balance: collectively evaluated for impairment	28,582	30,232	28,582	30,232	'
Commercial	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,839	1,858	2,219	2,049	'
Charge-offs	-51	-51	-181	-327	'
Recoveries	4	0	165	50	'
Provision	-24	205	-435	240	'
Ending balance	1,768	2,012	1,768	2,012	'
Ending balance: individually evaluated for impairments	182	0	182	0	'
Ending balance: collectively evaluated for impairments	1,586	2,012	1,586	2,012	'
Ending balance	1,768	2,012	1,768	2,012	'
Loans	'	'	'	'	'
Ending balance	227,183	205,911	227,183	205,911	209,287
Ending balance: individually evaluated for impairment	3,563	3,100	3,563	3,100	'
Ending balance: collectively evaluated for impairment	223,620	202,811	223,620	202,811	'
Multifamily and Farmland	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	7	34	37	28	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	1	2	-29	8	'
Ending balance	8	36	8	36	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	8	36	8	36	'
Ending balance	8	36	8	36	'
Loans	'	'	'	'	'
Ending balance	10,887	11,541	10,887	11,541	11,801
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	10,887	11,541	10,887	11,541	'
Commercial loans (not secured by real estate)	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,081	822	1,069	1,088	'
Charge-offs	-4	-101	-197	-483	'
Recoveries	15	14	42	39	'
Provision	62	49	240	140	'
Ending balance	1,154	784	1,154	784	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	1,154	784	1,154	784	'
Ending balance	1,154	784	1,154	784	'
Loans	'	'	'	'	'
Ending balance	78,139	64,957	78,139	64,957	68,047
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	78,139	64,957	78,139	64,957	'
Farm loans (not secured by real estate)	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	0	0	0	0	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	0	0	0	0	'
Ending balance	0	0	0	0	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	0	0	0	0	'
Ending balance	0	0	0	0	'
Loans	'	'	'	'	'
Ending balance	10	22	10	22	19
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	10	22	10	22	'
Consumer And All Other Loans	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	253	229	245	245	'
Charge-offs	-144	-204	-399	-485	'
Recoveries	33	34	112	111	'
Provision	98	191	282	379	'
Ending balance	240	250	240	250	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	240	250	240	250	'
Ending balance	240	250	240	250	'
Loans	'	'	'	'	'
Ending balance	26,910	25,387	26,910	25,387	'
Ending balance: individually evaluated for impairment	0	272	0	272	'
Ending balance: collectively evaluated for impairment	26,910	25,115	26,910	25,115	'
Unallocated	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Beginning balance	1,552	1,133	1,727	1,385	'
Charge-offs	0	0	0	0	'
Recoveries	0	0	0	0	'
Provision	141	619	-34	367	'
Ending balance	1,693	1,752	1,693	1,752	'
Ending balance: individually evaluated for impairments	0	0	0	0	'
Ending balance: collectively evaluated for impairments	1,693	1,752	1,693	1,752	'
Ending balance	1,693	1,752	1,693	1,752	'
Loans	'	'	'	'	'
Ending balance	0	0	0	0	'
Ending balance: individually evaluated for impairment	0	0	0	0	'
Ending balance: collectively evaluated for impairment	$0	$0	$0	$0	'

3_Loans_Credit_Risk_Details

3. Loans, Credit Risk (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Credit risk profile	'	'	'
Total Loans	$650,550	$620,960	$617,061
Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	16,476	16,678	'
High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	139,776	116,889	'
Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	334,991	306,756	'
Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	100,572	116,514	'
Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	29,750	31,383	'
Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	28,975	32,735	'
Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	10	5	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	56,959	63,742	'
Single-family residential	'	'	'
Credit risk profile	'	'	'
Total Loans	202,797	195,975	'
Single-family residential - Banco de la Gente stated income	'	'	'
Credit risk profile	'	'	'
Total Loans	47,665	49,463	'
Commercial	'	'	'
Credit risk profile	'	'	'
Total Loans	227,183	209,287	'
Multifamily and Farmland	'	'	'
Credit risk profile	'	'	'
Total Loans	10,887	11,801	'
Commercial loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	78,139	68,047	'
Farm loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	10	19	'
Consumer loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	10,210	9,593	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	16,700	13,033	'
Construction and land development	'	'	'
Credit risk profile	'	'	'
Total Loans	56,959	63,742	67,870
Construction and land development | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	7	'
Construction and land development | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	6,926	7,852	'
Construction and land development | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	23,647	22,899	'
Construction and land development | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	12,867	14,464	'
Construction and land development | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	6,617	8,163	'
Construction and land development | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	6,902	10,357	'
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	202,797	195,975	191,338
Single-family residential | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	13,925	15,036	'
Single-family residential | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	71,916	60,882	'
Single-family residential | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	74,571	73,118	'
Single-family residential | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	30,167	34,090	'
Single-family residential | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	6,624	6,806	'
Single-family residential | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	5,594	6,043	'
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	47,665	49,463	50,035
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	21,165	22,255	'
Single-family residential - Banco de la Gente stated income | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	8,134	8,369	'
Single-family residential - Banco de la Gente stated income | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	6,848	8,113	'
Single-family residential - Banco de la Gente stated income | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	11,518	10,726	'
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	'	'	'
Credit risk profile	'	'	'
Total Loans	227,183	209,287	205,911
Commercial | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	37,429	33,340	'
Commercial | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	145,065	123,604	'
Commercial | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	34,165	42,914	'
Commercial | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	6,541	5,190	'
Commercial | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	3,983	4,239	'
Commercial | Doubtful	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Commercial | Loss	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland	'	'	'
Credit risk profile	'	'	'
Total Loans	10,887	11,801	11,541
Multifamily and Farmland | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	0	0	'
Multifamily and Farmland | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	251	715	'
Multifamily and Farmland | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	6,753	7,882	'
Multifamily and Farmland | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	1,026	286	'
Multifamily and Farmland | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	2,690	2,741	'
Multifamily and Farmland | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	167	177	'
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	78,139	68,047	64,957
Commercial loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	1,240	365	'
Commercial loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	17,708	8,442	'
Commercial loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	46,624	44,353	'
Commercial loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	11,442	13,704	'
Commercial loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	388	320	'
Commercial loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	727	863	'
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	10	0	'
Farm loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	10	19	22
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	10	19	'
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) | 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	10,210	9,593	'
Consumer loans (not secured by real estate) | Excellent Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	1,311	1,270	'
Consumer loans (not secured by real estate) | High Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	3,599	3,519	'
Consumer loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	4,598	4,061	'
Consumer loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	576	358	'
Consumer loans (not secured by real estate) | Watch	'	'	'
Credit risk profile	'	'	'
Total Loans	42	50	'
Consumer loans (not secured by real estate) | Substandard	'	'	'
Credit risk profile	'	'	'
Total Loans	84	330	'
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	0	5	'
All other loans (not secured by real estate)	'	'	'
Credit risk profile	'	'	'
Total Loans	16,700	13,033	'
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	1,947	2,139	'
All other loans (not secured by real estate) | Good Quality	'	'	'
Credit risk profile	'	'	'
Total Loans	12,558	8,565	'
All other loans (not secured by real estate) | Management Attention	'	'	'
Credit risk profile	'	'	'
Total Loans	2,195	2,329	'
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) | 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_Loan_Modifications

3. Loans, TDR Loan Modifications (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
	Integer	Integer
TDR Loans	'	'
Number of Contracts	10	6
Pre-Modification Outstanding Recorded Investment	$1,734	$1,291
Post-Modification Outstanding Recorded Investment	1,734	1,291
Construction and land development	'	'
TDR Loans	'	'
Number of Contracts	1	2
Pre-Modification Outstanding Recorded Investment	291	825
Post-Modification Outstanding Recorded Investment	291	825
Single-family residential	'	'
TDR Loans	'	'
Number of Contracts	2	0
Pre-Modification Outstanding Recorded Investment	849	0
Post-Modification Outstanding Recorded Investment	849	0
Single-family residential - Banco de la Gente stated income	'	'
TDR Loans	'	'
Number of Contracts	7	4
Pre-Modification Outstanding Recorded Investment	594	466
Post-Modification Outstanding Recorded Investment	594	466
Total real estate loans	'	'
TDR Loans	'	'
Number of Contracts	10	6
Pre-Modification Outstanding Recorded Investment	1,734	1,291
Post-Modification Outstanding Recorded Investment	$1,734	$1,291

3_Loans_Details_Narrative

3. Loans (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Percentage of construction and land development loans in Bank's loan portfolio	9.00%	'	9.00%	'	'
Percentage of single-family residential loans in Bank's loan portfolio	39.00%	'	39.00%	'	'
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio	7.00%	'	7.00%	'	'
Percentage of commercial real estate loans in Bank's loan portfolio	35.00%	'	35.00%	'	'
Percentage of commercial loans in Bank's loan portfolio	12.00%	'	12.00%	'	'
Accruing impaired loans	$26,800	$27,100	$26,800	$27,100	$27,600
Interest income recognized on accruing impaired loans	311	337	992	916	1,300
Provision for loan losses	256	337	-27	2,200	'
Allowance for loan losses	'	'	12,300	'	13,500
TDR loans	10,200	'	10,200	'	21,900
Amount of performing TDR loans included	$1,700	'	$1,700	'	$335

4_Net_Earnings_Per_Common_Shar2

4. Net Earnings Per Common Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Earnings Available to Common Shareholders	'	'	'	'
Basic earnings per common share	$2,442	$1,762	$7,572	$4,840
Effect of dilutive securities: Stock options	0	0	0	0
Diluted earnings per common share	$2,442	$1,762	$7,572	$4,840
Common Shares	'	'	'	'
Basic earnings per common share (in shares)	5,617,125	5,613,495	5,615,556	5,613,495
Effect of dilutive securities: Stock options (in shares)	27,599	15,180	24,173	8,554
Diluted earnings per common share (in shares)	5,644,724	5,628,675	5,639,729	5,622,049
Per Share Amount	'	'	'	'
Basic earnings per common share	$0.43	$0.31	$1.35	$0.86
Diluted earnings per common share	$0.43	$0.31	$1.34	$0.86

5_StockBased_Compensation_Deta

5. Stock-Based Compensation (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Stock-Based Compensation Details Narrative	'	'
Unrecognized compensation cost	$808	'
Restricted stock expense	$272	$104

6_Fair_Value_Measurements_Leve

6. Fair Value Measurements, Level of Hierarchy (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Estimated Fair Value	$279,787	$297,890
Mortgage-backed securities	'	'
Estimated Fair Value	96,021	123,977
Level 2 valuation	96,021	123,977
U.S. Government sponsored enterprises	'	'
Estimated Fair Value	27,977	22,143
Level 2 valuation	27,977	22,143
State and political subdivisions	'	'
Estimated Fair Value	151,009	145,368
Level 2 valuation	151,009	145,368
Corporate bonds	'	'
Estimated Fair Value	2,474	3,463
Level 2 valuation	2,474	3,463
Trust preferred securities	'	'
Estimated Fair Value	750	1,250
Level 3 valuation	750	1,250
Equity securities	'	'
Estimated Fair Value	1,556	1,689
Level 1 valuation	$1,556	$1,689

6_Fair_Value_Measurements_Leve1

6. Fair Value Measurements, Level 3 Valuation (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014
Investment Securities Available for Sale Level 3 Valuation	'
Balance, beginning of period	$750
Change in book value	0
Change in gain/(loss) realized and unrealized	0
Purchases/(sales and calls)	0
Transfers in and/or (out) of Level 3	0
Balance, end of period	750
Change in unrealized gain/(loss) for assets still held in Level 3	$0

6_Fair_Value_Measurements_Loan

6. Fair Value Measurements, Loans Impaired (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Impaired loans	$35,808	$39,780
Other real estate	1,840	1,679
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	35,808	39,780
Other real estate	1,840	1,679
Total gains losses for the period ended	'	'
Impaired loans	-931	-3,207
Other real estate	($384)	($581)

6_Fair_Value_of_Financial_Inst

6. Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets:	'	'
Investment securities available for sale	$279,787	$297,890
Carrying Amount	'	'
Assets:	'	'
Cash and cash equivalents	85,523	76,773
Investment securities available for sale	279,787	297,890
Other investments	4,706	4,990
Mortgage loans held for sale	887	497
Loans, net	638,207	607,459
Cash surrender value of life insurance	14,020	13,706
Liabilities:	'	'
Deposits	816,795	799,361
Securities sold under agreements to repurchase	47,020	45,396
FHLB borrowings	65,000	65,000
Junior subordinated debentures	20,619	20,619
Level 1	'	'
Assets:	'	'
Cash and cash equivalents	85,523	76,773
Investment securities available for sale	1,556	1,689
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	277,481	294,951
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	14,020	13,706
Liabilities:	'	'
Deposits	815,640	798,460
Securities sold under agreements to repurchase	47,020	45,396
FHLB borrowings	64,594	65,891
Junior subordinated debentures	20,619	20,619
Level 3	'	'
Assets:	'	'
Cash and cash equivalents	0	0
Investment securities available for sale	750	1,250
Other investments	4,706	4,990
Mortgage loans held for sale	887	497
Loans, net	641,923	612,132
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	85,523	76,773
Investment securities available for sale	279,787	297,890
Other investments	4,706	4,990
Mortgage loans held for sale	887	497
Loans, net	641,923	612,132
Cash surrender value of life insurance	14,020	13,706
Liabilities:	'	'
Deposits	815,640	798,460
Securities sold under agreements to repurchase	47,020	45,396
FHLB borrowings	64,594	65,891
Junior subordinated debentures	$20,619	$20,619