American River Bancshares (AMRB) 10-Q8 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	6-May-14
Document and Entity Information:	'	'
Entity Registrant Name	'AMERICAN RIVER BANKSHARES	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001108236	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	8,133,037
Entity Filer Category	'Accelerated Filer	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) In Thousands, unless otherwise specified (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and due from banks	$24,131	$17,948
Interest-bearing deposits in banks Investment securities:	1,000	1,000
Available-for-sale, at fair value	275,211	272,791
Held-to-maturity, at amortized cost	1,092	1,185
Loans and leases, less allowance for loan and lease losses of $5,373 at March 31, 2014 and $5,346 at December 31, 2013	255,465	251,747
Premises and equipment, net	1,523	1,500
Federal Home Loan Bank stock	3,248	3,248
Goodwill and other intangible assets	16,321	16,321
Other real estate owned	6,621	6,621
Bank owned life insurance	12,751	12,686
Accrued interest receivable and other assets	6,331	7,706
Total Assets	603,694	592,753
Deposits:	'	'
Noninterest bearing	155,860	145,516
Interest-bearing	345,032	338,174
Total deposits	500,892	483,690
Short-term borrowings	3,000	8,000
Long-term borrowings	8,000	8,000
Accrued interest payable and other liabilities	5,884	6,043
Total liabilities	517,776	505,733
Commitments and contingencies	'	'
Shareholders' equity:	'	'
Preferred stock, no par value; 20,000,000 shares authorized; none Outstanding	0	0
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 8,158,409 shares at March 31, 2014 and 8,489,247 shares at December 31, 2013	57,898	61,108
Retained earnings	25,795	24,789
Accumulated other comprehensive income, net of taxes	2,225	1,123
Total shareholders' equity	85,918	87,020
Total liabilities and shareholders' euity	$603,694	$592,753

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets Parentheticals (Unaudited) In Thousands, except Share data, unless otherwise specified (USD $)	Mar. 31, 2014	Dec. 31, 2013
Consolidated Balance Sheets Parentheticals	'	'
Allowance for loan and lease losses (in dollars)	$5,373	$5,346
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,158,409	8,489,247
Common stock, shares outstanding	8,158,409	8,489,247

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) In Thousands, except Per Share data, unless otherwise specified (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest income:	'	'
Interest and fees on loans	$3,455	$3,642
Interest on deposits in banks	1	1
Interest and dividends on investment securities:	'	'
Taxable	1,339	788
Exempt from Federal income taxes	201	220
Total interest income	4,996	4,651
Interest expense:	'	'
Interest on deposits	262	331
Interest on borrowings	42	76
Total interest expense	304	407
Net interest income	4,692	4,244
Provision for loan and lease losses	'	100
Net interest income after provision for loan and lease losses	4,692	4,144
Noninterest income:	'	'
Service charges on deposit accounts	156	151
Gain on life insurance death benefit	'	118
Rental income from OREO properties	107	92
Other noninterest income	239	264
Total noninterest income	502	625
Noninterest expense:	'	'
Salaries and employee benefits	2,120	2,217
Occupancy	307	301
Furniture and equipment	178	194
Federal Deposit Insurance Corporation assessments	103	126
Expenses related to other real estate owned	-1	305
Other expense	946	859
Total noninterest expense	3,653	4,002
Income before provision for income taxes	1,541	767
Provision for income taxes	535	145
Net income	$1,006	$622
Basic earnings per share	$0.12	$0.07
Diluted earnings per share	$0.12	$0.07
Cash dividends per share	$0	$0

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) In Thousands, unless otherwise specified (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Comprehensive Income	'	'
Net income	$1,006	$622
Increase (decrease) in net unrealized gains on investment securities	1,837	-432
Deferred tax (expense) benefit	-735	173
Increase (decrease) in net unrealized gains on investment securities, net of tax	1,102	-259
Total other comprehensive income (loss)	1,102	-259
Comprehensive income	$2,108	$363

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) In Thousands, unless otherwise specified (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$1,006	$622
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Provision for loan and lease losses	'	100
Increase in deferred loan origination fees, net	7	3
Depreciation and amortization	114	134
Amortization of investment security premiums and discounts, net	1,238	1,422
Gain on life insurance death benefit.	'	-118
(Increase) decrease in cash surrender values of life insurance policies	-65	46
Stock based compensation expense	33	33
(Gain) loss on sale/write-down of other real estate owned	-106	93
Decrease in accrued interest receivable and other assets	639	1,157
Decrease in accrued interest payable and other liabilities	-159	-467
Net cash provided by operating activities	2,707	3,025
Cash flows from investing activities:	'	'
Proceeds from matured available-for-sale investment securities	270	'
Proceeds from called available-for-sale investment securities	105	'
Purchases of available-for-sale investment securities	-11,474	-27,425
Proceeds from principal repayments for available-for-sale investment securities	9,277	15,528
Proceeds from principal repayments for held-to-maturity investment securities	94	218
Net (increase) decrease in loans	-3,724	6,091
Proceeds from sale of other real estate	106	3,743
Capitalized additions to other real estate	'	-112
Death benefit from life insurance policy	'	419
Purchases of equipment	-137	-44
Net cash used in investing activities	-5,483	-1,582
Cash flows from financing activities:	'	'
Net increase (decrease) in demand, interest-bearing and savings deposits	18,173	-7,477
Net (decrease) increase in time deposits	-971	77
Net decrease in other borrowings	-5,000	'
Cash paid to repurchase common stock	-3,243	-1,657
Net cash provided by (used in) financing activities	8,959	-9,057
Increase (decrease) in cash and cash equivalents	6,183	-7,164
Cash and cash equivalents at beginning of year	17,948	55,461
Cash and cash equivalents at end of period	$24,131	$47,847

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) In Thousands, except Share data, unless otherwise specified (USD $)	Common Stock Shares	Common Stock Amount	Retained Earnings	Accumulated Other Comprehensive Income	Total Shareholders' equity
Balance at Jan. 01, 2013	9,327,203	67,977	21,732	4,285	93,994
Net income	'	'	$3,057	'	$3,057
Net change in unrealized gains on available-for-sale investment securities.	'	'	'	-3,162	-3,162
Net restricted stock award activity and related compensation expense.	11,448	111	'	'	111
Stock option compensation expense.	'	20	'	'	20
Retirement of common stock	-849,404	-7,000	'	'	-7,000
Balance at Dec. 31, 2013	8,489,247	61,108	24,789	1,123	87,020
Net change in unrealized gains on available-for-sale investment securities.	'	'	'	1,102	1,102
Net restricted stock award activity and related compensation expense.	'	30	'	'	30
Stock option compensation expense.	'	3	'	'	3
Net income	'	'	$1,006	'	$1,006
Retirement of common stock	-330,838	-3,243	'	'	-3,243
Balance at Mar. 31, 2014	8,158,409	57,898	25,795	2,225	85,918

CONSOLIDATED_FINANCIAL_STATEME

CONSOLIDATED FINANCIAL STATEMENTS	3 Months Ended
CONSOLIDATED FINANCIAL STATEMENTS	Mar. 31, 2014
CONSOLIDATED FINANCIAL STATEMENTS	'
CONSOLIDATED FINANCIAL STATEMENTS	'
	1. CONSOLIDATED FINANCIAL STATEMENTS

	In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the “Company”) at March 31, 2014 and December 31, 2013, the results of its operations and statement of comprehensive income for the three month periods ended March 31, 2014 and 2013, its cash flows for the three-month periods ended March 31, 2014 and 2013 and its statement of changes in shareholders’ equity for the year ended December 31, 2013 and the three months ended March 31, 2014 in conformity with accounting principles generally accepted in the United States of America.

	Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. The results of operations for the three-month period ended March 31, 2014 may not necessarily be indicative of the operating results for the full year.

	In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan and lease losses, stock-based compensation, the valuation of goodwill, and the provision for income taxes.

	Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank.

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Mar. 31, 2014
STOCK-BASED COMPENSATION	'
STOCK-BASED COMPENSATION	'
	2. STOCK-BASED COMPENSATION
	Equity Plans
	On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. In 2000, the Board of Directors adopted and the Company’s shareholders approved a stock option plan (the “2000 Plan”), under which 260,594 stock options remain outstanding at March 31, 2014. At March 31, 2014, there were 17,329 stock options and 23,990 restricted shares outstanding and the total number of authorized shares that remain available for issuance under the 2010 Plan was 1,432,312. The 2010 Plan provides for the following types of stock-based awards: incentive stock options; nonqualified stock options; stock appreciation rights; restricted stock; restricted performance stock; unrestricted Company stock; and performance units. Awards granted under the 2000 Plan were either incentive stock options or nonqualified stock options. Under the 2010 Plan, the awards may be granted to employees and directors under incentive and nonstatutory agreements and other awards agreements. The 2010 Plan and the 2000 Plan (collectively the “Plans”) require that the option price may not be less than the fair market value of the stock at the date the option is granted. The option awards under the Plans expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards under the Plans are exercisable until their expiration, however, no new options will be awarded under the 2000 Plan. New shares are issued upon exercise of an option.

	The grant date fair value of awards is determined by the market price of the Company’s common stock on the date of grant and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock granted pursuant to such agreements vest in increments over one to five years from the date of grant. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated.
	Equity Compensation
	For the three-month periods ended March 31, 2014 and 2013, the compensation cost recognized for equity compensation was $33,000 for each period. The recognized tax benefit for equity compensation expense was $12,000 and $11,000, for the three-month periods ended March 31, 2014 and 2013, respectively.
	At March 31, 2014, the total compensation cost related to nonvested stock option awards not yet recorded is $25,000. This amount will be recognized over the next 3.25 years and the weighted average period of recognizing these costs is expected to be 1.6 years. At March 31, 2014, the total compensation cost related to restricted stock awards not yet recorded is $77,000. This amount will be recognized over the next 3.25 years and the weighted average period of recognizing these costs is expected to be .75 years.
	Equity Plans Activity
	Stock Options

	There were no stock options awarded during the three-month periods ended March 31, 2014 and 2013. A summary of option activity under the Plans as of March 31, 2014 and changes during the period then ended is presented below:

	Options	Shares		Weighted Average ExercisePrice		Weighted Average Remaining ContractualTerm		Aggregate Intrinsic Value ($000)
	Outstanding at January 1, 2014		277,923	$	17.21		3.1 years	$	82
	Granted		—		—		—		—
	Exercised		—		—		—		—
	Cancelled		—		—		—		—
	Outstanding at March 31, 2014		277,923	$	17.21		2.9 years	$	69
	Vested at March 31, 2014		264,044	$	17.75		2.6 years	$	39
	Non-vested at March 31, 2014		13,879	$	7.08		8.1 years	$	30
	Expected to vest at March 31, 2014		10,411	$	7.08		8.1 years	$	—
	Restricted Stock

	There were no shares of restricted stock awarded during the three-month periods ended March 31, 2014 and 2013, respectively. There were no restricted stock awards that were fully vested during the three-month periods ended March 31, 2014 and 2013, respectively. The intrinsic value of nonvested restricted stock at March 31, 2014 was $221,000.

	Restricted Stock	Shares		WeightedAverage GrantDate Fair Value
	Nonvested at January 1, 2014		23,990	$	7.22
	Awarded		—		—
	Less: Vested		—		—
	Less: Cancelled		—		—
	Nonvested at March 31, 2014		23,990	$	7.22

	Other Equity Awards

	There were no stock appreciation rights; restricted performance stock; unrestricted Company stock; or performance units awarded during the three-month periods ended March 31, 2014 or 2013 or outstanding at March 31, 2014 or December 31, 2013.

	The intrinsic value used for stock options and restricted stock was derived from the market price of the Company’s common stock of $9.23 as of March 31, 2014.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES	'
Commitments and Contingencies Disclosure	'
	3. COMMITMENTS AND CONTINGENCIES

	In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $30,072,000 and standby letters of credit of approximately $6,092,000 at March 31, 2014 and loan commitments of approximately $31,681,000 and standby letters of credit of approximately $6,363,000 at December 31, 2013. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2014 as some of these are expected to expire without being fully drawn upon.

	Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at March 31, 2014 or December 31, 2013.

EARNINGS_PER_SHARE_COMPUTATION

EARNINGS PER SHARE COMPUTATION	3 Months Ended
EARNINGS PER SHARE COMPUTATION	Mar. 31, 2014
EARNINGS PER SHARE COMPUTATION	'
EARNINGS PER SHARE COMPUTATION	'
	4. EARNINGS PER SHARE COMPUTATION

	Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (8,321,448 shares and 9,209,719 shares for the three-month periods ended March 31, 2014 and 2013, respectively). Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards (20,395 shares for the three-month period ended March 31, 2014 and 10,898 shares for the three-month period ended March 31, 2013). For the three-month periods ended March 31, 2014 and 2013, there were 217,247 and 278,850 stock options, respectively, that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented.

INVESTMENT_SECURITIES

INVESTMENT SECURITIES	3 Months Ended
INVESTMENT SECURITIES	Mar. 31, 2014
INVESTMENTS SECURITIES (Tables)	'
INVESTMENT SECURITIES	'
	5. INVESTMENT SECURITIES
	The amortized cost and estimated fair values of investment securities at March 31, 2014 and December 31, 2013 consisted of the following (dollars in thousands):
	Available-for-Sale

			31-Mar-14
			Amortized Cost			Gross Unrealized Gains				Gross Unrealized Losses				Estimated FairValue
	Debt securities:
	Mortgage-backed securities		$	244,081		$	4,044			$	(1,565	)		$	246,560
	Obligations of states and political subdivisions			25,862			1,108				(73	)			26,897
	Corporate bonds			1,505			112				—				1,617
	Equity securities:
	Corporate stock			54			83				—				137
			$	271,502		$	5,347			$	(1,638	)		$	275,211

			31-Dec-13
			Amortized Cost			Gross Unrealized Gains				Gross Unrealized Losses				Estimated FairValue
	Debt securities:
	Mortgage-backed securities		$	243,058		$	3,429			$	(2,327	)		$	244,160
	Obligations of states and political subdivisions			26,302			775				(174	)			26,903
	Corporate bonds			1,505			104				—				1,609
	Equity securities:
	Corporate stock			54			65				—				119
			$	270,919		$	4,373			$	(2,501	)		$	272,791

	Net unrealized gains on available-for-sale investment securities totaling $3,709,000 were recorded, net of $1,484,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at March 31, 2014. There were not any proceeds nor gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2014. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2014.

	Net unrealized gains on available-for-sale investment securities totaling $1,872,000 were recorded, net of $749,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at December 31, 2013. There were not any proceeds nor gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2013. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2013.

	Held-to-Maturity
	31-Mar-14

						Gross				Gross				Estimated
			Amortized			Unrealized				Unrealized				Fair
			Cost			Gains				Losses				Value
	Debt securities:
	Mortgage-backed securities		$	1,092		$	73			$	—			$	1,165

	31-Dec-13					Gross				Gross				Estimated
			Amortized			Unrealized				Unrealized				Fair
			Cost			Gains				Losses				Value
	Debt securities:
	Mortgage-backed securities		$	1,185		$	78			$	—			$	1,263

	There were no sales or transfers of held-to-maturity investment securities for the periods ended March 31, 2014 and March 31, 2013. Investment securities with unrealized losses at March 31, 2014 and December 31, 2013 are summarized and classified according to the duration of the loss period as follows (dollars in thousands):

	31-Mar-14		Less than 12 Months							12 Months or More							Total
			Fair Value			Unrealized Losses				Fair Value				UnrealizedLosses			Fair Value		UnrealizedLosses
	Available-for-Sale

	Debt securities:
	Mortgage-backed securities		$	81,540		$	(1,278	)			16,853				(287	)	$	98,393	$	(1,565	)
	Obligations of states and political subdivisions			2,017			(73	)			—				—			2,017		(73	)
			$	83,557		$	(1,351	)		$	16,853			$	(287	)	$	100,410	$	(1,638	)

	31-Dec-13		Less than 12 Months							12 Months or More							Total
			Fair Value			Unrealized Losses				Fair Value				UnrealizedLosses			Fair Value		UnrealizedLosses
	Available-for-Sale

	Debt securities:
	Mortgage-backed securities		$	10,047		$	(147	)		$	98,723			$	(2,180	)	$	108,770	$	(2,327	)
	Obligations of states and political subdivisions			4,223			(174	)			—				—			4,223		(174	)
			$	14,270		$	(321	)		$	98,723			$	(2,180	)	$	112,993	$	(2,501	)

There were no held-to-maturity investment securities with unrealized losses as of March 31, 2014 or December 31, 2013.

At March 31, 2014, the Company held 218 securities of which 39 were in a loss position for less than twelve months and eight were in a loss position for twelve months or more. Of the 39 securities in a loss position of less than twelve months, 36 were mortgage-backed securities and three were obligations of states and political subdivisions. All securities in a loss position, at March 31, 2014, for greater than twelve months were mortgage-backed securities. At December 31, 2013, the Company held 216 securities of which 49 were in a loss position for less than twelve months and five were in a loss position for twelve months or more. Of these securities in a loss position, 44 are mortgage-backed securities and five are obligations of political subdivisions. All securities in a loss position, at December 31, 2013, for greater than twelve months were mortgage-backed securities.

The unrealized loss on the Company’s investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired.


The amortized cost and estimated fair values of investment securities at March 31, 2014 by contractual maturity are shown below (dollars in thousands).

		Available-for-Sale							Held-to-Maturity
		AmortizedCost			EstimatedFair Value				AmortizedCost				EstimatedFair Value

Within one year		$	1,745		$	1,857
After one year through five years			2,026			2,083
After five years through ten years			12,162			12,746
After ten years			11,434			11,828
			27,367			28,514
Investment securities not due at a single maturity date:
Mortgage-backed securities			244,081			246,560			$	1,092			$	1,165
Corporate stock			54			137				—				—
		$	271,502		$	275,211			$	1,092			$	1,165
Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

IMPAIRED_AND_NONPERFORMING_LOA

IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2014
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	'
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	'
	6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED

	At March 31, 2014 and December 31, 2013, the recorded investment in nonperforming loans and leases was approximately $1,883,000 and $1,979,000, respectively. Nonperforming loans and leases include all such loans and leases that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. At March 31, 2014, the recorded investment in loans and leases that were considered to be impaired totaled $26,441,000, which includes $1,779,000 in nonaccrual loans and leases and $24,662,000 in accruing loans and leases. Of the total impaired loans of $26,441,000, loans totaling $11,740,000 were deemed to require no specific reserve and loans totaling $14,701,000 were deemed to require a related valuation allowance of $1,638,000. At December 31, 2013, the recorded investment in loans and leases that were considered to be impaired totaled $27,034,000 and had a related valuation allowance of $1,598,000. If interest had been accruing on the nonperforming loans, such income would have approximated $39,000 and $59,000 for the three months ended March 31, 2014 and 2013.

	At March 31, 2014 and December 31, 2013, the recorded investment in other real estate owned (“OREO”) was $6,621,000. During the first quarter of 2014, the Company sold two parcels of land in El Dorado County that abutted an existing OREO property for a $106,000 net gain without any adjustment required to the value of the existing OREO property. The Company continues to own the OREO office building and land upon which the building is located but no longer owns the adjoining land.

	The Company periodically obtains property valuations to determine whether the OREO recorded book value is considered fair value. During the first quarter of 2014, this valuation process did not result in the Company adjusting the book value of the OREO properties.

	The March 31, 2014 OREO balance of $6,621,000 consists of nine properties including three commercial real estate properties in the total amount of $3,745,000, four commercial land properties in the total amount of $1,729,000 and two residential land properties in the total amount of $1,147,000.

	Nonperforming loans and leases and other assets and OREO at March 31, 2014 and December 31, 2013 are summarized as follows (in thousands):
			31-Mar-14				December 31,2013
	Nonaccrual loans and leases that are current to terms (less than 30 days past due)		$	363			$	379
	Nonaccrual loans and leases that are past due			1,520				1,520
	Loans and leases past due 90 days and accruing interest			—				80
	Other assets			878				878
	Other real estate owned			6,621				6,621
	Total nonperforming assets		$	9,382			$	9,478

	Nonperforming loans and leases to total loans and leases			0.72	%			0.77	%
	Total nonperforming assets to total assets			1.55	%			1.6	%
	Impaired loans and leases as of and for the periods ended March 31, 2014 and December 31, 2013 are summarized as follows:
	(in thousands)		As of March 31, 2014									As of December 31, 2013
							UnpaidPrincipal							Unpaid Principal
			Recorded				Balance			Related		Recorded		Balance		Related
			Investment							Allowance		Investment				Allowance
	With no related allowance recorded:

	Commercial		$	535			$	535		$	—	$	577	$	577	$	—
	Real estate-commercial			10,873				11,071			—		10,921		11,119		—
	Real estate-multi-family			—				—			—		—		—		—
	Real estate-construction			245				245			—		248		248		—
	Real estate-residential			—				—			—		—		—		—
	Leases			—				—			—		—		—		—
	Consumer			87				87			—		37		37		—
	Subtotal		$	11,740			$	11,938		$	—	$	11,783	$	11,981	$	—

	With an allowance recorded:

	Commercial		$	1,134			$	1,134		$	395	$	1,159	$	1,159	$	392
	Real estate-commercial			8,479				8,479			758		8,998		8,998		792
	Real estate-multi-family			1,642				1,735			105		1,650		1,743		108
	Real estate-construction			—				—			—		—		—		—
	Real estate-residential			3,297				3,297			341		3,316		3,316		276
	Agriculture			—				—			—		—		—		—
	Consumer			149				149			39		128		128		30
	Subtotal		$	14,701			$	14,794		$	1,638	$	15,251	$	15,344	$	1,598

	Total:

	Commercial		$	1,669			$	1,669		$	395	$	1,736	$	1,736	$	392
	Real estate-commercial			19,352				19,550			758		19,919		20,117		792
	Real estate-multi-family			1,642				1,735			105		1,650		1,743		108
	Real estate-construction			245				245			—		248		248		—
	Real estate-residential			3,297				3,297			341		3,316		3,316		276
	Agriculture			—				—			—		—		—		—
	Consumer			236				236			39		165		165		30
			$	26,441			$	26,732		$	1,638	$	27,034	$	27,325	$	1,598


	The following table presents the average balance related to impaired loans and leases for the periods indicated (in thousands):
			Average Recorded Investments for the three months ended
			March 31,2014				March 31,2013

Commercial		$	1,702			$	2,436
Real estate-commercial			19,407				17,608
Real estate-multi-family			1,646				1,677
Real estate-construction			247				261
Real estate-residential			2,916				2,405
Leases			—				—
Agriculture			—				—
Consumer			164				245
Total		$	26,082			$	24,632
The following table presents the interest income recognized on impaired loans and leases for the periods indicated (in thousands):
		Interest Income Recognizedfor the three months ended
		31-Mar-14				31-Mar-13

Commercial		$	13			$	16
Real estate-commercial			247				208
Real estate-multi-family			19				19
Real estate-construction			3				3
Real estate-residential			38				23
Leases			—				—
Agriculture			—				—
Consumer			2				1
Total		$	322			$	270

TROUBLED_DEBT_RESTRUCTURINGS

TROUBLED DEBT RESTRUCTURINGS

3 Months Ended

Mar. 31, 2014

TROUBLED DEBT RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS

At March 31, 2014, there were thirteen loans and leases, totaling $14,655,000, that were considered to be troubled debt restructurings. Of these loans and leases, ten were modified and are currently performing (less than ninety days past due) totaling $13,744,000 and three are considered nonperforming (and included in the $1,883,000 discussed in Note 6), totaling $911,000. Of the three TDRs considered nonperforming, none are current to the modified terms. At March 31, 2014 and December 31, 2013, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans and Leases” in Item 2.

The Company has allocated $837,000 and $817,000 of specific reserves to loans whose terms have been modified as troubled debt restructurings as of March 31, 2014 and December 31, 2013.

During the three-month period ended March 31, 2014, the terms of certain loans were modified as a troubled debt restructurings. The modifications of the terms of these loans were extensions of the maturity date.

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2014 (dollars in thousands):

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

4,871

The troubled debt restructurings described above increased the allowance for loan and lease losses by $108,000 and resulted in no charge-offs during the three months ended March 31, 2014.

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2013:

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

438

The troubled debt restructurings described above increased the allowance for loan and lease losses by $50,000 and resulted in no charge-offs during the three months ended March 31, 2013.

There were no payment defaults during the three months ended March 31, 2014 or March 31, 2013 on troubled debt restructurings made in the preceding twelve months.

ALLOWANCE_FOR_LOAN_AND_LEASE_L

ALLOWANCE FOR LOAN AND LEASE LOSSES	3 Months Ended
ALLOWANCE FOR LOAN AND LEASE LOSSES	Mar. 31, 2014
Schedule of Troubled Debt Restructurings on Financing Receivables (Tables)	'
ALLOWANCE FOR LOAN AND LEASE LOSSES	'
	8. ALLOWANCE FOR LOAN AND LEASE LOSSES

	The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of March 31, 2014 and December 31, 2013 are summarized below:

	31-Mar-14		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction				Residential
	Grade:
	Pass		$	19,669			$	155,225			$	9,876			$	4,285			$	10,692
	Watch			1,578				13,100				1,150				3,241				2,722
	Special mention			475				18,880				415				580				1,226
	Substandard			1,706				4,249				—				—				2,244
	Doubtful or loss			—				—				—				—				—
	Total		$	23,428			$	191,454			$	11,441			$	8,106			$	16,884

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer								Total
	Grade:
	Pass		$	1,297			$	2,698			$	5,186							$	208,928
	Watch			—				—				37								21,828
	Special mention			—				389				89								22,054
	Substandard			—				—				149								8,348
	Doubtful or loss			—				—				—								—
	Total		$	1,297			$	3,087			$	5,461							$	261,158

	31-Dec-13		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction				Residential
	Grade:
	Pass		$	20,728			$	147,995			$	9,509			$	5,778			$	11,706
	Watch			1,556				12,567				1,156				3,270				2,530
	Special mention			491				19,253				420				585				1,281
	Substandard			1,770				4,389				—				—				2,186
	Doubtful or loss			—				—				—				—				—
	Total		$	24,545			$	184,204			$	11,085			$	9,633			$	17,703

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer								Total
	Grade:
	Pass		$	1,344			$	2,728			$	5,486							$	205,274
	Watch			—				—				21								21,100
	Special mention			—				392				111								22,533
	Substandard			—				—				154								8,499
	Doubtful or loss			—				—				—								—
	Total		$	1,344			$	3,120			$	5,772							$	257,406

	The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below:
	31-Mar-14
	(dollars in thousands)					Real Estate												Other

			Commercial			Commercial			Multi-Family			Construction			Residential			Leases			Agriculture			Consumer			Unallocated			Total

	Allowance for Loan and Lease Losses

	Beginning balance, January 1, 2014		$	885			$	2,401			$	242			$	542			$	825			$	4			$	80			$	161			$	206		$	5,346
	Provision for loan losses			(124	)			74				(1	)			(58	)			55				(4	)			(7	)			(4	)			69			—
	Loans charged-off			—				—				—				—				—				—				—				(1	)			—			(1	)
	Recoveries			20				1				—				1				3				3				—				—				—			28

	Ending balance, March 31, 2014		$	781			$	2,476			$	241			$	485			$	883			$	3			$	73			$	156			$	275		$	5,373

	Ending balance:
	Individually evaluated for impairment		$	395			$	758			$	105			$	—			$	341			$	—			$	—			$	39			$	—		$	1,638

Ending balance:
Collectively evaluated for impairment		$	386			$	1,718			$	136			$	485			$	542			$	3			$	73			$	117			$	275		$	3,735

Loans

Ending balance		$	23,428			$	191,454			$	11,441			$	8,106			$	16,884			$	1,297			$	3,087			$	5,461			$	—		$	261,158

Ending balance:
Individually evaluated for impairment		$	1,669			$	19,352			$	1,642			$	245			$	3,297			$	—			$	—			$	236			$	—		$	26,441

Ending balance:
Collectively evaluated for impairment		$	21,759			$	172,102			$	9,799			$	7,861			$	13,587			$	1,297			$	3,087			$	5,225			$	—		$	234,717



The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below:

31-Dec-13
(dollars in thousands)						Real Estate																Other

		Commercial				Commercial				Multi-Family				Construction				Residential				Leases				Agriculture				Consumer				Unallocated			Total
Ending balance:
Individually evaluated for impairment		$	392			$	792			$	108			$	—			$	276			$	—			$	—			$	30			$	—		$	1,598

Ending balance:
Collectively evaluated for impairment		$	493			$	1,609			$	134			$	542			$	549			$	4			$	80			$	131			$	206		$	3,748

Loans

Ending balance		$	24,545			$	184,204			$	11,085			$	9,633			$	17,703			$	1,344			$	3,120			$	5,772			$	—		$	257,406

Ending balance:
Individually evaluated for impairment		$	1,736			$	19,919			$	1,650			$	248			$	3,316			$	—			$	—			$	165			$	—		$	27,034

Ending balance:
Collectively evaluated for impairment		$	22,809			$	164,285			$	9,435			$	9,385			$	14,387			$	1,344			$	3,120			$	5,607			$	—		$	230,372

31-Mar-13
(dollars in thousands)						Real Estate																Other

		Commercial				Commercial				Multi-Family				Construction				Residential				Leases				Agriculture				Consumer				Unallocated			Total
Allowance for Loan and Lease Losses

Beginning balance, January 1, 2013		$	1,351			$	2,526			$	238			$	594			$	477			$	3			$	87			$	262			$	243		$	5,781
Provision for loan losses			(84	)			140				18				(164	)			62				—				4				(8	)			132			100
Loans charged-off			(10	)			—				—				—				(38	)			—				—				(5	)						(53	)
Recoveries			74				1				—				—				—				—				—				—							75

Ending balance, March 31, 2013		$	1,331			$	2,667			$	256			$	430			$	501			$	3			$	91			$	249			$	375		$	5,903

The Company’s aging analysis of the loan and lease portfolio at March 31, 2014 and December 31, 2013 are summarized below:
31-Mar-14																										Past Due
(dollars in thousands)										Past Due																Greater Than
		30-59 Days				60-89 Days				Greater Than				Total Past												90 Days and
		Past Due				Past Due				90 Days				Due				Current				Total Loans				Accruing				Nonaccrual
Commercial:
Commercial		$	—			$	—			$	716			$	716			$	22,712			$	23,428				—			$	758
Real estate:
Commercial			944				—				713				1,657				189,797				191,454				—				973
Multi-family			—				—				—				—				11,441				11,441				—				—
Construction			—				—				—				—				8,106				8,106				—				—
Residential			—				—				—				—				16,884				16,884				—				—
Other:
Leases			—				—				—				—				1,297				1,297				—				—
Agriculture			—				—				—				—				3,087				3,087				—				—
Consumer			211				—				46				257				5,204				5,461				—				152
Total		$	1,155			$	—			$	1,475			$	2,630			$	258,528			$	261,158			$	—			$	1,883

31-Dec-13																										Past Due
(dollars in thousands)										Past Due																Greater Than
		30-59 Days				60-89 Days				Greater Than				Total Past												90 Days and
		Past Due				Past Due				90 Days				Due				Current				Total Loans				Accruing				Nonaccrual
Commercial:
Commercial		$	—			$	—			$	798			$	798			$	23,747			$	24,545				—			$	766
Real estate:
Commercial			1,598				336				713				2,647				181,557				184,204				80				977
Multi-family			—				—				—				—				11,085				11,085				—				—
Construction			—				—				—				—				9,633				9,633				—				—
Residential			—				—				—				—				17,703				17,703				—				—
Other:
Leases			—				—				—				—				1,344				1,344				—				—
Agriculture			—				—				—				—				3,120				3,120				—				—
Consumer			25				1				90				116				5,656				5,772				—				156
Total		$	1,623			$	337			$	1,601			$	3,561			$	253,845			$	257,406			$	80			$	1,899

BORROWING_ARRANGEMENTS

BORROWING ARRANGEMENTS	3 Months Ended
BORROWING ARRANGEMENTS	Mar. 31, 2014
BORROWING ARRANGEMENTS:	'
BORROWING ARRANGEMENTS	'
	9. BORROWING ARRANGEMENTS

	At March 31, 2014, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of March 31, 2014 or December 31, 2013.

	The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the “FHLB”) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as well as loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $11,000,000 were outstanding from the FHLB at March 31, 2014, bearing interest rates ranging from 1.01% to 1.91% and maturing between May 19, 2014 and July 12, 2019. Advances totaling $16,000,000 were outstanding from the FHLB at December 31, 2013, bearing interest rates ranging from 1.19% to 2.73% and maturing between January 13, 2014 and July 12, 2019. Remaining amounts available under the borrowing arrangement with the FHLB at March 31, 2014 and December 31, 2013 totaled $56,689,000 and $56,230,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at March 31, 2014 and December 31, 2013 were $21,427,000 and $21,358,000, respectively. There were no advances outstanding under this borrowing arrangement as of March 31, 2014 and December 31, 2013.

INCOME_TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2014
INCOME TAXES	'
INCOME TAXES	'
	10. INCOME TAXES

	The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for (benefit from) income taxes.
	The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets.
	The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month periods ended March 31, 2014 and 2013.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Mar. 31, 2014
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table	'
FAIR VALUE MEASUREMENTS	'
	11. FAIR VALUE MEASUREMENTS
	The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of March 31, 2014 and December 31, 2013. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

	Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. 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 any of these estimates.

	The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands):
			Carrying			Fair Value Measurements Using:
	31-Mar-14		Amount			Level 1			Level 2			Level 3			Total

	Financial assets:
	Cash and due from banks		$	24,131		$	24,131								$	24,131
	Interest-bearing deposits in banks			1,000					$	1,000						1,000
	Available-for-sale securities			275,211			88			275,123						275,211
	Held-to-maturity securities			1,092						1,165						1,165
	FHLB stock			3,248			N/A			N/A			N/A			N/A
	Net loans and leases:			255,465								$	258,827			258,827
	Accrued interest receivable			1,861						1,130			731			1,861

	Financial liabilities:
	Deposits:
	Noninterest-bearing		$	155,860		$	155,860								$	155,860
	Savings			54,195			54,195									54,195
	Money market			137,492			137,492									137,492
	NOW accounts			62,086			62,086									62,086
	Time, $100,000 or more			68,480					$	69,178						69,178
	Other time			22,779						22,844						22,844
	Short-term borrowings			3,000			3,000									3,000
	Long-term borrowings			8,000						8,106						8,106
	Accrued interest payable			60						60						60

			Carrying			Fair Value Measurements Using:
	31-Dec-13		Amount			Level 1			Level 2			Level 3			Total

	Financial assets:
	Cash and due from banks		$	17,948		$	17,948								$	17,948
	Interest-bearing deposits in banks			1,000					$	1,000						1,000
	Available-for-sale securities			272,791			70			272,721						272,791
	Held-to-maturity securities			1,185						1,263						1,263
	FHLB stock			3,248			N/A			N/A			N/A			N/A
	Net loans and leases:			251,747								$	249,931			249,931
	Accrued interest receivable			1,930						1,170			760			1,930

	Financial liabilities:
	Deposits:
	Noninterest-bearing		$	145,516		$	145,516								$	145,516
	Savings			51,733			51,733									51,733
	Money market			135,169			135,169									135,169
	NOW accounts			59,042			59,042									59,042
	Time, $100,000 or more			68,990					$	69,763						69,763
	Other time			23,240						23,426						23,426
	Short-term borrowings			8,000			8,000									8,000
	Long-term borrowings			8,000						8,110						8,110
	Accrued interest payable			125						125						125

	Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. 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 fair values presented.

	The following methods and assumptions were used by the Company to estimate the fair values of its financial instruments at March 31, 2014 and December 31, 2013:
	Cash and due from banks: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.
	Interest-bearing deposits in banks: The fair values of interest-bearing deposits in banks are estimated by discounting their future cash flows using rates at each reporting date for instruments with similar remaining maturities offered by comparable financial institutions and are classified as Level 2.
	Investment securities: For investment securities, fair values are based on quoted market prices, where available, and are classified as Level 1. If quoted market prices are not available, fair values are estimated using quoted market prices for similar securities and indications of value provided by brokers and are classified as Level 2.
	Loans and leases: Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality also resulting in a Level 3 classification. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.
	FHLB stock: It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. For time deposits, the fair values for fixed rate certificates of deposit are estimated using a discounted cash flow methodology that applies market interest rates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.
Short-term and long-term borrowings: The fair value of short-term borrowings is estimated to be the carrying amount and is classified as Level 1. The fair value of long-term borrowings is estimated using a discounted cash flow analysis using interest rates currently available for similar debt instruments and are classified as Level 2.
Accrued interest receivable and payable: The carrying amount of accrued interest receivable approximates fair value resulting in a Level 3 classification and the carrying amount of accrued interest payable approximates fair value resulting in a Level 2 classification.
Off-balance sheet instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments was not material at March 31, 2014 and December 31, 2013.
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table:
Description					Fair Value Measurements Using									Total Gains
(dollars in thousands)		Fair Value			Level 1			Level 2			Level 3			(Losses)

31-Mar-14

Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
Mortgage-backed securities		$	246,560		$	—		$	246,560		$	—		$	—
Obligations of states and political subdivisions			26,897			—			26,897			—			—
Corporate bonds			1,617			—			1,617			—			—
Corporate stock			137			88			49
Total recurring		$	275,211		$	88		$	275,123		$	—		$	—

Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Real estate:
Commercial		$	300		$	—		$	—		$	300		$	—
Consumer			23			—			—			23			(11	)
Other real estate owned			6,621			—			—			6,621			106
Total nonrecurring		$	6,944		$	—		$	—		$	6,944		$	95

Description					Fair Value Measurements Using									Total Gains
(dollars in thousands)		Fair Value			Level 1				Level 2			Level 3		(Losses)

31-Dec-13

Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
Mortgage-backed securities		$	244,160		$	—		$	244,160		$	—		$	—
Corporate Debt securities			1,609			—			1,609
Obligations of states and political subdivisions			26,903			—			26,903			—			—
Corporate stock			119			70			49			—			—
Total recurring		$	272,791		$	70		$	272,721		$	—		$	—

Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Real estate:
Commercial		$	306		$	—		$	—		$	306		$	6

Other real estate owned			6,621			—			—			6,621			(250	)
Total nonrecurring		$	6,927		$	—		$	—		$	6,927		$	(244	)

There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2014 or the twelve months ended December 31, 2013.
The following methods were used to estimate the fair value of each class of financial instrument above:
Available-for-sale securities – Fair values for investment securities are based on quoted market prices, if available, and are considered as Level 1, or evaluated using pricing models that vary by asset class and incorporate available trade, bid and other market information and are considered as Level 2. Pricing applications apply available information, as applicable, through processes such as benchmark curves, benchmarking to like securities, sector groupings and matrix pricing.

Impaired loans – The fair value of collateral dependent impaired loans adjusted for specific allocations of the allowance for loan losses is generally based on recent real estate appraisals and/or evaluations. These appraisals and/or evaluations may utilize a single valuation approach or a combination of approaches including comparable sales, cost and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income and other available data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for all Level 3 nonrecurring loans consists of the appraised value less a reserve for past dues taxes and selling costs ranging from 8% to 10%.

Other real estate owned – Certain commercial and residential real estate properties classified as OREO are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals and/or evaluations. These appraisals and/or evaluations may use a single valuation approach or a combination of approaches including comparable sales, cost and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income and other available data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for all Level 3 nonrecurring OREO consists of the appraised value less selling costs ranging from 8% to 10%.

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION. (Tables)	3 Months Ended
STOCK BASED COMPENSATION. (Tables)	Mar. 31, 2014
STOCK BASED COMPENSATION. (Tables)	'
Schedule of Nonvested Share Activity	'

	Restricted Stock	Shares		WeightedAverage GrantDate Fair Value
	Nonvested at January 1, 2014		23,990	$	7.22
	Awarded		—		—
	Less: Vested		—		—
	Less: Cancelled		—		—
	Nonvested at March 31, 2014		23,990	$	7.22

Schedule of Share-based Compensation, Stock Options, Activity	'

	Options	Shares		Weighted Average ExercisePrice		Weighted Average Remaining ContractualTerm		Aggregate Intrinsic Value ($000)
	Outstanding at January 1, 2014		277,923	$	17.21		3.1 years	$	82
	Granted		—		—		—		—
	Exercised		—		—		—		—
	Cancelled		—		—		—		—
	Outstanding at March 31, 2014		277,923	$	17.21		2.9 years	$	69
	Vested at March 31, 2014		264,044	$	17.75		2.6 years	$	39
	Non-vested at March 31, 2014		13,879	$	7.08		8.1 years	$	30
	Expected to vest at March 31, 2014		10,411	$	7.08		8.1 years	$	—

INVESTMENTS_SECURITIES_Tables

INVESTMENTS SECURITIES (Tables)	3 Months Ended
INVESTMENTS SECURITIES (Tables)	Mar. 31, 2014
INVESTMENTS SECURITIES (Tables)	'
Available-for-sale Securities	'
	Available-for-Sale

		31-Mar-14
		Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses			Estimated FairValue
	Debt securities:
	Mortgage-backed securities	$	244,081	$	4,044		$	(1,565	)	$	246,560
	Obligations of states and political subdivisions		25,862		1,108			(73	)		26,897
	Corporate bonds		1,505		112			—			1,617
	Equity securities:
	Corporate stock		54		83			—			137
		$	271,502	$	5,347		$	(1,638	)	$	275,211

		31-Dec-13
		Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses			Estimated FairValue
	Debt securities:
	Mortgage-backed securities	$	243,058	$	3,429		$	(2,327	)	$	244,160
	Obligations of states and political subdivisions		26,302		775			(174	)		26,903
	Corporate bonds		1,505		104			—			1,609
	Equity securities:
	Corporate stock		54		65			—			119
		$	270,919	$	4,373		$	(2,501	)	$	272,791

Available-for-sale Securities, Debt Maturities, Basis of Allocation	'
	The amortized cost and estimated fair values of investment securities at March 31, 2014 by contractual maturity are shown below (dollars in thousands).

		Available-for-Sale					Held-to-Maturity
		AmortizedCost		EstimatedFair Value			AmortizedCost			EstimatedFair Value

	Within one year	$	1,745	$	1,857
	After one year through five years		2,026		2,083
	After five years through ten years		12,162		12,746
	After ten years		11,434		11,828
			27,367		28,514
	Investment securities not due at a single maturity date:
	Mortgage-backed securities		244,081		246,560		$	1,092		$	1,165
	Corporate stock		54		137			—			—
		$	271,502	$	275,211		$	1,092		$	1,165
Held-to-maturity Securities	'
	Held-to-Maturity
	31-Mar-14

				Gross			Gross			Estimated
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	Debt securities:
	Mortgage-backed securities	$	1,092	$	73		$	—		$	1,165

	31-Dec-13			Gross			Gross			Estimated
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	Debt securities:
	Mortgage-backed securities	$	1,185	$	78		$	—		$	1,263

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	'

	31-Mar-14	Less than 12 Months					12 Months or More						Total
		Fair Value		Unrealized Losses			Fair Value			UnrealizedLosses			Fair Value		UnrealizedLosses
	Available-for-Sale

	Debt securities:
	Mortgage-backed securities	$	81,540	$	(1,278	)		16,853			(287	)	$	98,393	$	(1,565	)
	Obligations of states and political subdivisions		2,017		(73	)		—			—			2,017		(73	)
		$	83,557	$	(1,351	)	$	16,853		$	(287	)	$	100,410	$	(1,638	)

	31-Dec-13	Less than 12 Months					12 Months or More						Total
		Fair Value		Unrealized Losses			Fair Value			UnrealizedLosses			Fair Value		UnrealizedLosses
	Available-for-Sale

	Debt securities:
	Mortgage-backed securities	$	10,047	$	(147	)	$	98,723		$	(2,180	)	$	108,770	$	(2,327	)
	Obligations of states and political subdivisions		4,223		(174	)		—			—			4,223		(174	)
		$	14,270	$	(321	)	$	98,723		$	(2,180	)	$	112,993	$	(2,501	)

SCHEDULE_OF_IMPAIRED_AND_NONPE

SCHEDULE OF IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2014
Schedule of Troubled Debt Restructurings on Financing Receivables (Tables)	'
Schedule of Nonperforming loans and leases and other assets and OREO (Tables)	'
	Nonperforming loans and leases and other assets and OREO at March 31, 2014 and December 31, 2013 are summarized as follows (in thousands):
		31-Mar-14			December 31,2013
	Nonaccrual loans and leases that are current to terms (less than 30 days past due)	$	363		$	379
	Nonaccrual loans and leases that are past due		1,520			1,520
	Loans and leases past due 90 days and accruing interest		—			80
	Other assets		878			878
	Other real estate owned		6,621			6,621
	Total nonperforming assets	$	9,382		$	9,478

	Nonperforming loans and leases to total loans and leases		0.72	%		0.77	%
	Total nonperforming assets to total assets		1.55	%		1.6	%
Schedule of Impaired Financing Receivables (Table)	'
	Impaired loans and leases as of and for the periods ended March 31, 2014 and December 31, 2013 are summarized as follows:
	(in thousands)	As of March 31, 2014								As of December 31, 2013
					UnpaidPrincipal							Unpaid Principal
		Recorded			Balance			Related		Recorded		Balance		Related
		Investment						Allowance		Investment				Allowance
	With no related allowance recorded:

	Commercial	$	535		$	535		$	—	$	577	$	577	$	—
	Real estate-commercial		10,873			11,071			—		10,921		11,119		—
	Real estate-multi-family		—			—			—		—		—		—
	Real estate-construction		245			245			—		248		248		—
	Real estate-residential		—			—			—		—		—		—
	Leases		—			—			—		—		—		—
	Consumer		87			87			—		37		37		—
	Subtotal	$	11,740		$	11,938		$	—	$	11,783	$	11,981	$	—

	With an allowance recorded:

	Commercial	$	1,134		$	1,134		$	395	$	1,159	$	1,159	$	392
	Real estate-commercial		8,479			8,479			758		8,998		8,998		792
	Real estate-multi-family		1,642			1,735			105		1,650		1,743		108
	Real estate-construction		—			—			—		—		—		—
	Real estate-residential		3,297			3,297			341		3,316		3,316		276
	Agriculture		—			—			—		—		—		—
	Consumer		149			149			39		128		128		30
	Subtotal	$	14,701		$	14,794		$	1,638	$	15,251	$	15,344	$	1,598

	Total:

	Commercial	$	1,669		$	1,669		$	395	$	1,736	$	1,736	$	392
	Real estate-commercial		19,352			19,550			758		19,919		20,117		792
	Real estate-multi-family		1,642			1,735			105		1,650		1,743		108
	Real estate-construction		245			245			—		248		248		—
	Real estate-residential		3,297			3,297			341		3,316		3,316		276
	Agriculture		—			—			—		—		—		—
	Consumer		236			236			39		165		165		30
		$	26,441		$	26,732		$	1,638	$	27,034	$	27,325	$	1,598

Schedule_of_Average_Balance_Re

Schedule of Average Balance Recorded To Impaired Loans And Leases (Tables)	3 Months Ended
	Mar. 31, 2014
Schedule of Average Balance Recorded To Impaired Loans And Leases (Tables):	'
Schedule of Average Balance Recorded To Impaired Loans And Leases(Tables)	'
	The following table presents the average balance related to impaired loans and leases for the periods indicated (in thousands):
		Average Recorded Investments for the three months ended
		March 31,2014		March 31,2013

	Commercial	$	1,702	$	2,436
	Real estate-commercial		19,407		17,608
	Real estate-multi-family		1,646		1,677
	Real estate-construction		247		261
	Real estate-residential		2,916		2,405
	Leases		—		—
	Agriculture		—		—
	Consumer		164		245
	Total	$	26,082	$	24,632
	The following table presents the interest income recognized on impaired loans and leases for the periods indicated (in thousands):
		Interest Income Recognizedfor the three months ended
		31-Mar-14		31-Mar-13

	Commercial	$	13	$	16
	Real estate-commercial		247		208
	Real estate-multi-family		19		19
	Real estate-construction		3		3
	Real estate-residential		38		23
	Leases		—		—
	Agriculture		—		—
	Consumer		2		1
	Total	$	322	$	270

Schedule_of_Concentration_Risk

Schedule of Concentration Risk, Credit Risk, Loan Products (Table)	3 Months Ended
	Mar. 31, 2014
Schedule of Concentration Risk, Credit Risk, Loan Products (Table)	'
Schedule of Concentration Risk, Credit Risk, Loan Products (Table)	'
	The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of March 31, 2014 and December 31, 2013 are summarized below:

	31-Mar-14	Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)			Real Estate
		Commercial		Commercial		Multi-family		Construction		Residential
	Grade:
	Pass	$	19,669	$	155,225	$	9,876	$	4,285	$	10,692
	Watch		1,578		13,100		1,150		3,241		2,722
	Special mention		475		18,880		415		580		1,226
	Substandard		1,706		4,249		—		—		2,244
	Doubtful or loss		—		—		—		—		—
	Total	$	23,428	$	191,454	$	11,441	$	8,106	$	16,884

		Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
		Leases		Agriculture		Consumer				Total
	Grade:
	Pass	$	1,297	$	2,698	$	5,186			$	208,928
	Watch		—		—		37				21,828
	Special mention		—		389		89				22,054
	Substandard		—		—		149				8,348
	Doubtful or loss		—		—		—				—
	Total	$	1,297	$	3,087	$	5,461			$	261,158

	31-Dec-13	Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)			Real Estate
		Commercial		Commercial		Multi-family		Construction		Residential
	Grade:
	Pass	$	20,728	$	147,995	$	9,509	$	5,778	$	11,706
	Watch		1,556		12,567		1,156		3,270		2,530
	Special mention		491		19,253		420		585		1,281
	Substandard		1,770		4,389		—		—		2,186
	Doubtful or loss		—		—		—		—		—
	Total	$	24,545	$	184,204	$	11,085	$	9,633	$	17,703

		Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
		Leases		Agriculture		Consumer				Total
	Grade:
	Pass	$	1,344	$	2,728	$	5,486			$	205,274
	Watch		—		—		21				21,100
	Special mention		—		392		111				22,533
	Substandard		—		—		154				8,499
	Doubtful or loss		—		—		—				—
	Total	$	1,344	$	3,120	$	5,772			$	257,406

Schedule_of_Troubled_Debt_Rest

Schedule of Troubled Debt Restructurings on Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Troubled Debt Restructurings on Financing Receivables (Tables)

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2014 (dollars in thousands):

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

4,871

The troubled debt restructurings described above increased the allowance for loan and lease losses by $108,000 and resulted in no charge-offs during the three months ended March 31, 2014.

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2013:

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

438

Schedule_Of_Allowance_For_Loan

Schedule Of Allowance For Loan Losses By Portfolio Segment And Impairment Method (Tables)	3 Months Ended
	Mar. 31, 2014
Schedule Of Allowance For Loan Losses By Portfolio Segment And Impairment Method (Tables):	'
Schedule Of Allowance For Loan Losses By Portfolio Segment And Impairment Method (Tables)	'
	The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below:
	31-Mar-14
	(dollars in thousands)					Real Estate												Other

			Commercial			Commercial			Multi-Family			Construction			Residential			Leases			Agriculture			Consumer			Unallocated			Total

	Allowance for Loan and Lease Losses

	Beginning balance, January 1, 2014		$	885			$	2,401			$	242			$	542			$	825			$	4			$	80			$	161			$	206		$	5,346
	Provision for loan losses			(124	)			74				(1	)			(58	)			55				(4	)			(7	)			(4	)			69			—
	Loans charged-off			—				—				—				—				—				—				—				(1	)			—			(1	)
	Recoveries			20				1				—				1				3				3				—				—				—			28

	Ending balance, March 31, 2014		$	781			$	2,476			$	241			$	485			$	883			$	3			$	73			$	156			$	275		$	5,373

	Ending balance:
	Individually evaluated for impairment		$	395			$	758			$	105			$	—			$	341			$	—			$	—			$	39			$	—		$	1,638

	Ending balance:
	Collectively evaluated for impairment		$	386			$	1,718			$	136			$	485			$	542			$	3			$	73			$	117			$	275		$	3,735

	Loans

	Ending balance		$	23,428			$	191,454			$	11,441			$	8,106			$	16,884			$	1,297			$	3,087			$	5,461			$	—		$	261,158

	Ending balance:
	Individually evaluated for impairment		$	1,669			$	19,352			$	1,642			$	245			$	3,297			$	—			$	—			$	236			$	—		$	26,441

	Ending balance:
	Collectively evaluated for impairment		$	21,759			$	172,102			$	9,799			$	7,861			$	13,587			$	1,297			$	3,087			$	5,225			$	—		$	234,717



	The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below:

	31-Dec-13
	(dollars in thousands)						Real Estate																Other

			Commercial				Commercial				Multi-Family				Construction				Residential				Leases				Agriculture				Consumer				Unallocated			Total
	Ending balance:
	Individually evaluated for impairment		$	392			$	792			$	108			$	—			$	276			$	—			$	—			$	30			$	—		$	1,598

	Ending balance:
	Collectively evaluated for impairment		$	493			$	1,609			$	134			$	542			$	549			$	4			$	80			$	131			$	206		$	3,748

	Loans

	Ending balance		$	24,545			$	184,204			$	11,085			$	9,633			$	17,703			$	1,344			$	3,120			$	5,772			$	—		$	257,406

	Ending balance:
	Individually evaluated for impairment		$	1,736			$	19,919			$	1,650			$	248			$	3,316			$	—			$	—			$	165			$	—		$	27,034

	Ending balance:
	Collectively evaluated for impairment		$	22,809			$	164,285			$	9,435			$	9,385			$	14,387			$	1,344			$	3,120			$	5,607			$	—		$	230,372

	31-Mar-13
	(dollars in thousands)						Real Estate																Other

			Commercial				Commercial				Multi-Family				Construction				Residential				Leases				Agriculture				Consumer				Unallocated			Total
	Allowance for Loan and Lease Losses

	Beginning balance, January 1, 2013		$	1,351			$	2,526			$	238			$	594			$	477			$	3			$	87			$	262			$	243		$	5,781
	Provision for loan losses			(84	)			140				18				(164	)			62				—				4				(8	)			132			100
Loans charged-off			(10	)			—				—				—				(38	)			—				—				(5	)						(53	)
Recoveries			74				1				—				—				—				—				—				—							75

Ending balance, March 31, 2013		$	1,331			$	2,667			$	256			$	430			$	501			$	3			$	91			$	249			$	375		$	5,903

The_Companys_aging_analysis_of

The Company's aging analysis of the loan and lease portfolio (Table)	3 Months Ended
	Mar. 31, 2014
The Company's aging analysis of the loan and lease portfolio (Table)	'
The Company's aging analysis of the loan and lease portfolio (Table)	'
	The Company’s aging analysis of the loan and lease portfolio at March 31, 2014 and December 31, 2013 are summarized below:
	31-Mar-14													Past Due
	(dollars in thousands)					Past Due								Greater Than
		30-59 Days		60-89 Days		Greater Than		Total Past						90 Days and
		Past Due		Past Due		90 Days		Due		Current		Total Loans		Accruing		Nonaccrual
	Commercial:
	Commercial	$	—	$	—	$	716	$	716	$	22,712	$	23,428		—	$	758
	Real estate:
	Commercial		944		—		713		1,657		189,797		191,454		—		973
	Multi-family		—		—		—		—		11,441		11,441		—		—
	Construction		—		—		—		—		8,106		8,106		—		—
	Residential		—		—		—		—		16,884		16,884		—		—
	Other:
	Leases		—		—		—		—		1,297		1,297		—		—
	Agriculture		—		—		—		—		3,087		3,087		—		—
	Consumer		211		—		46		257		5,204		5,461		—		152
	Total	$	1,155	$	—	$	1,475	$	2,630	$	258,528	$	261,158	$	—	$	1,883

	31-Dec-13													Past Due
	(dollars in thousands)					Past Due								Greater Than
		30-59 Days		60-89 Days		Greater Than		Total Past						90 Days and
		Past Due		Past Due		90 Days		Due		Current		Total Loans		Accruing		Nonaccrual
	Commercial:
	Commercial	$	—	$	—	$	798	$	798	$	23,747	$	24,545		—	$	766
	Real estate:
	Commercial		1,598		336		713		2,647		181,557		184,204		80		977
	Multi-family		—		—		—		—		11,085		11,085		—		—
	Construction		—		—		—		—		9,633		9,633		—		—
	Residential		—		—		—		—		17,703		17,703		—		—
	Other:
	Leases		—		—		—		—		1,344		1,344		—		—
	Agriculture		—		—		—		—		3,120		3,120		—		—
	Consumer		25		1		90		116		5,656		5,772		—		156
	Total	$	1,623	$	337	$	1,601	$	3,561	$	253,845	$	257,406	$	80	$	1,899

Assets_and_liabilities_measure

Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following (Table)	3 Months Ended
	Mar. 31, 2014
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table	'
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings	'
	The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands):
		Carrying		Fair Value Measurements Using:
	31-Mar-14	Amount		Level 1		Level 2		Level 3		Total

	Financial assets:
	Cash and due from banks	$	24,131	$	24,131					$	24,131
	Interest-bearing deposits in banks		1,000			$	1,000				1,000
	Available-for-sale securities		275,211		88		275,123				275,211
	Held-to-maturity securities		1,092				1,165				1,165
	FHLB stock		3,248		N/A		N/A		N/A		N/A
	Net loans and leases:		255,465					$	258,827		258,827
	Accrued interest receivable		1,861				1,130		731		1,861

	Financial liabilities:
	Deposits:
	Noninterest-bearing	$	155,860	$	155,860					$	155,860
	Savings		54,195		54,195						54,195
	Money market		137,492		137,492						137,492
	NOW accounts		62,086		62,086						62,086
	Time, $100,000 or more		68,480			$	69,178				69,178
	Other time		22,779				22,844				22,844
	Short-term borrowings		3,000		3,000						3,000
	Long-term borrowings		8,000				8,106				8,106
	Accrued interest payable		60				60				60

		Carrying		Fair Value Measurements Using:
	31-Dec-13	Amount		Level 1		Level 2		Level 3		Total

	Financial assets:
	Cash and due from banks	$	17,948	$	17,948					$	17,948
	Interest-bearing deposits in banks		1,000			$	1,000				1,000
	Available-for-sale securities		272,791		70		272,721				272,791
	Held-to-maturity securities		1,185				1,263				1,263
	FHLB stock		3,248		N/A		N/A		N/A		N/A
	Net loans and leases:		251,747					$	249,931		249,931
	Accrued interest receivable		1,930				1,170		760		1,930

	Financial liabilities:
	Deposits:
	Noninterest-bearing	$	145,516	$	145,516					$	145,516
	Savings		51,733		51,733						51,733
	Money market		135,169		135,169						135,169
	NOW accounts		59,042		59,042						59,042
	Time, $100,000 or more		68,990			$	69,763				69,763
	Other time		23,240				23,426				23,426
	Short-term borrowings		8,000		8,000						8,000
	Long-term borrowings		8,000				8,110				8,110
	Accrued interest payable		125				125				125

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques	'
	Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table:
	Description			Fair Value Measurements Using						Total Gains
	(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3		(Losses)

	31-Mar-14

	Assets and liabilities measured on a recurring basis:
	Available-for-sale securities:
	Mortgage-backed securities	$	246,560	$	—	$	246,560	$	—	$	—
	Obligations of states and political subdivisions		26,897		—		26,897		—		—
	Corporate bonds		1,617		—		1,617		—		—
	Corporate stock		137		88		49
	Total recurring	$	275,211	$	88	$	275,123	$	—	$	—

	Assets and liabilities measured on a nonrecurring basis:
	Impaired loans:
	Real estate:
	Commercial	$	300	$	—	$	—	$	300	$	—
	Consumer		23		—		—		23		(11	)
	Other real estate owned		6,621		—		—		6,621		106
	Total nonrecurring	$	6,944	$	—	$	—	$	6,944	$	95

	Description			Fair Value Measurements Using						Total Gains
	(dollars in thousands)	Fair Value		Level 1			Level 2		Level 3	(Losses)

	31-Dec-13

	Assets and liabilities measured on a recurring basis:
	Available-for-sale securities:
	Mortgage-backed securities	$	244,160	$	—	$	244,160	$	—	$	—
	Corporate Debt securities		1,609		—		1,609
	Obligations of states and political subdivisions		26,903		—		26,903		—		—
	Corporate stock		119		70		49		—		—
	Total recurring	$	272,791	$	70	$	272,721	$	—	$	—

	Assets and liabilities measured on a nonrecurring basis:
	Impaired loans:
	Real estate:
	Commercial	$	306	$	—	$	—	$	306	$	6

	Other real estate owned		6,621		—		—		6,621		(250	)
	Total nonrecurring	$	6,927	$	—	$	—	$	6,927	$	(244	)

Equity_Plans_and_Compensation_

Equity Plans and Compensation (Details) (USD $)	Mar. 31, 2014
Equity Plans and Compensation	'
Stock options remain outstanding	260,594
Stock options outstanding	17,329
Restricted shares outstanding	23,990
Total number of authorized share that remain available for issuance under the 2010 plan	1,432,312
Total compensation cost related to nonvested stock option awards not yet recorded	$25,000
Amount will be recognized over the next period in years	3.25
Weighted average period of recognizing these costs is expeted to be in years	1.6
Total compensation cost related to restricted stock awards not yet recorded	77,000
Amount will be recognized over the next period (in years)	3.25
Weighted average period of recognizing these costs is expeted to be in years	0.75
Intrinsic value of non vested restricted stock	$221,000

Compensation_cost_recognized_D

Compensation cost recognized (Details) (USD $)	3 Months Ended
Compensation cost recognized (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013
Compensation cost recognized	'	'
Compensation cost recognized for equity compensation	$33,000	$33,000
Recognized tax benefit for equity compensation	$12,000	$11,000

Restricted_Stock_Details

Restricted Stock (Details)	Restricted stock Shares	Weighted Average Grant Date fair value
Balance nonvested shares at Dec. 31, 2013	0	0
Nonvested.	23,990	7.22
Awarded	'	0
Less: Vested	0	'
Less: Cancelled	'	0
Nonvested at at Mar. 31, 2014	23,990	7.22

A_summary_of_option_activity_u

A summary of option activity under the Plans (Details)	Options Shares	Weighted Average Exercise Price	Weighted Average Remaining contractual Term in years
Balance options at Dec. 31, 2013	0	'	'
Options Outstanding	277,923	17.21	3.1
Options Granted	'	0	'
Options Exercised	0	'	'
Options Cancelled	'	'	0
Options non-vested at Mar. 31, 2014	13,879	7.08	8.1
Options Expected to vest at Mar. 31, 2014	10,411	7.08	8.1
Options Outstanding. at Mar. 31, 2014	277,923	17.21	2.9
Options Vested at Mar. 31, 2014	264,044	17.75	2.6

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately	$30,072,000	$31,681,000
standby letters of credit of approximately	$6,092,000	$6,363,000

EARNINGS_PER_SHARE_COMPUTATION1

EARNINGS PER SHARE COMPUTATION (Details)	3 Months Ended
EARNINGS PER SHARE COMPUTATION (Details)	Mar. 31, 2014	Mar. 31, 2013
Weighted Average Number of Shares Outstanding, Basic (in shares)	8,321,448	9,209,719
Dilutive Securities, Effect on Basic Earnings Per Share (in shares)	20,395	10,898
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares)	217,247	278,850

TROUBLED_DEBT_RESTRUCTURINGS_D

TROUBLED DEBT RESTRUCTURINGS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Troubled Debt Restructuring Note,	'	'	'
Thirteen loans and leases, , that were considered to be troubled debt restructurings	$14,655,000	'	'
Ten loans were modified and are currently performing (less than ninety days past due) totaling	13,744,000	'	'
Three loans are considered nonperforming , totaling	911,000	'	'
The Company has allocated specific reserves to loans whose terms have been modified as troubled debt restructurings	837,000	817,000	'
The troubled debt restructurings described above increased the allowance for loan and lease losses and resulted in no charge-offs	108,000	'	50,000
unfunded commitments on those loans considered troubled debt restructures	$0	$0	$0

The_following_table_presents_l

The following table presents loans by class modified as troubled debt restructurings (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Number of Loans	'	'
Real estate - commercial	$4	$1
Pre- Modification outstanding recorded investment	'	'
Real estate - commercial	4,871	438
Post - Modification outstanding recorded investment	'	'
Real estate - commercial	$4,871	$438

The_amortized_cost_and_estimat

The amortized cost and estimated fair values of investment securities (Details) (USD $)	Mar. 31, 2014
Amortized cost (Available for sale)	'
Within one year	$1,745
Within one year	1,745
After one year through five years	2,026
After five years through ten years	12,162
After ten years	11,434
The Total amortized cost and estimated fair values of investment securities	27,367
Mortgage-backed securities,	244,081
Corporate stock,	54
Total Investment securities not due at a single maturity date,	271,502
Estimated Fair value (Available for sale)	'
Within one year	1,857
Within one year	1,857
After one year through five years	2,083
After five years through ten years	12,746
After ten years	11,828
The Total amortized cost and estimated fair values of investment securities	28,514
Mortgage-backed securities,	246,560
Corporate stock,	137
Total Investment securities not due at a single maturity date,	275,211
Amortized cost (Maturity)	'
Mortgage-backed securities,	1,092
Total Investment securities not due at a single maturity date,	1,092
Estimated Fair Value (Maturity)	'
Mortgage-backed securities,	1,165
Total Investment securities not due at a single maturity date,	$1,165

Investment_securities_with_unr

Investment securities with unrealized losses summarized and classified according to the duration of the loss period (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Fair Value (Less than 12 Months)	'	'
Mortgage-backed securities.	$81,540	$10,047
Mortgage-backed securities.	81,540	10,047
Obligations of states and political subdivisions.	2,017	4,223
Total debt securities available for sale.	83,557	14,270
Unrealized Losses (Less than 12 Months)	'	'
Mortgage-backed securities.	-1,278	-147
Mortgage-backed securities.	-1,278	-147
Obligations of states and political subdivisions.	-73	-174
Total debt securities available for sale.	-1,351	-321
Fair Value (12 Months or More)	'	'
Mortgage-backed securities.	16,853	98,723
Mortgage-backed securities.	16,853	98,723
Total debt securities available for sale.	16,853	98,723
Unrealized Losses (12 Months or More)	'	'
Mortgage-backed securities.	-287	-2,180
Mortgage-backed securities.	-287	-2,180
Total debt securities available for sale.	-287	-2,180
Total Fair Value	'	'
Mortgage-backed securities.	98,393	108,770
Mortgage-backed securities.	98,393	108,770
Obligations of states and political subdivisions.	2,017	4,223
Total debt securities available for sale.	100,410	112,993
Total Unrealized Losses	'	'
Mortgage-backed securities.	-1,565	-2,327
Mortgage-backed securities.	-1,565	-2,327
Obligations of states and political subdivisions.	-73	-174
Total debt securities available for sale.	($1,638)	($2,501)

Investment_Securities_amortize

Investment Securities - amortized cost and estimated fair values of investment securities (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Amortized Cost	'	'
Debt securities	'	'
Mortgage-backed securities	$1,092	$1,185
Obligations of states and political subdivisions	25,862	26,302
Corporate bonds	1,505	1,505
Equity securities Available-for-Sale	'	'
Corporate stock	54	54
Total Debt Securities	271,502	270,919
Held to Maturity	'	'
Mortgage-backed securities	1,092	1,185
Gross Unrealized Gains	'	'
Debt securities	'	'
Mortgage-backed securities	73	78
Obligations of states and political subdivisions	1,108	775
Corporate bonds	112	104
Equity securities Available-for-Sale	'	'
Corporate stock	83	65
Total Debt Securities	5,347	4,373
Held to Maturity	'	'
Mortgage-backed securities	73	78
Gross Unrealized Losses	'	'
Debt securities	'	'
Mortgage-backed securities	-1,565	-2,327
Obligations of states and political subdivisions	-73	-174
Equity securities Available-for-Sale	'	'
Total Debt Securities	-1,638	-2,501
Held to Maturity	'	'
Mortgage-backed securities	-1,565	-2,327
Estimated Fair value	'	'
Debt securities	'	'
Mortgage-backed securities	1,165	1,263
Obligations of states and political subdivisions	26,897	26,903
Corporate bonds	1,617	1,609
Equity securities Available-for-Sale	'	'
Corporate stock	137	119
Total Debt Securities	275,211	272,791
Held to Maturity	'	'
Mortgage-backed securities	$1,165	$1,263

Nonperforming_loans_and_leases

Nonperforming loans and leases and other assets and OREO (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Nonperforming loans and leases and other assets and OREO	'	'
Nonaccrual loans and leases that are current to terms (less than 30 days past due)	$363	$379
Nonaccrual loans and leases that are past due	1,520	1,520
Loans and leases past due 90 days and accruing interest	'	80
Other assets	878	878
Other real estate owned	6,621	6,621
Total nonperforming assets	$9,382	$9,478
Nonperforming loans and leases to total loans and leases	0.72	0.77
Total nonperforming assets to total assets	1.55	1.6

The_following_table_presents_t

The following table presents the average balance related to impaired loans and leases (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Average Recorded Investments.	'	'
Commercial.	$1,702	$2,436
Real estate-commercial	19,407	17,608
Real estate-multi-family	1,646	1,677
Real estate-construction	247	261
Real estate-residential	2,916	2,405
Consumer.	164	245
Total.	$26,082	$24,632

The_following_table_presents_t1

The following table presents the interest income recognized on impaired loans and leases (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest Income Recognized.	'	'
Commercial	$13	$16
Real estate-commercial	247	208
Real estate-multi-family	19	19
Real estate-construction	3	3
Real estate-residential	38	23
Consumer	2	1
Total	$322	$270

Companys_loan_and_lease_portfo

Company's loan and lease portfolio allocated by management's internal risk ratings (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Commercial credit risk	'	'
Pass (credit risk)	$19,669	'
Pass (credit risk)	19,669	'
Watch (credit risk)	1,578	'
Special mention (credit risk)	475	'
Substandard (credit risk)	1,706	'
Doubtful or loss (credit risk)	0	'
Credit Risk Profile by Internally Assigned Grade Total	23,428	'
Pass. (credit risk)	'	20,728
Watch. (credit risk)	'	1,556
Special mention. (credit risk)	'	491
Substandard. (credit risk)	'	1,770
Doubtful or loss. (credit risk)	'	0
Credit Risk Profile by Internally Assigned Grade Total.	'	24,545
Real Estate Commercial' credit risk	'	'
Pass (credit risk)	155,225	'
Pass (credit risk)	155,225	'
Watch (credit risk)	13,100	'
Special mention (credit risk)	18,880	'
Substandard (credit risk)	4,249	'
Credit Risk Profile by Internally Assigned Grade Total	191,454	'
Pass. (credit risk)	'	147,995
Watch. (credit risk)	'	12,567
Special mention. (credit risk)	'	19,253
Substandard. (credit risk)	'	4,389
Credit Risk Profile by Internally Assigned Grade Total.	'	184,204
Multi-family' credit risk	'	'
Pass (credit risk)	9,876	'
Pass (credit risk)	9,876	'
Watch (credit risk)	1,150	'
Special mention (credit risk)	415	'
Credit Risk Profile by Internally Assigned Grade Total	11,441	'
Pass. (credit risk)	'	9,509
Watch. (credit risk)	'	1,156
Special mention. (credit risk)	'	420
Credit Risk Profile by Internally Assigned Grade Total.	'	11,085
Construction' credit risk	'	'
Pass (credit risk)	4,285	'
Pass (credit risk)	4,285	'
Watch (credit risk)	3,241	'
Special mention (credit risk)	580	'
Credit Risk Profile by Internally Assigned Grade Total	8,106	'
Pass. (credit risk)	'	5,778
Watch. (credit risk)	'	3,270
Special mention. (credit risk)	'	585
Credit Risk Profile by Internally Assigned Grade Total.	'	9,633
Residential' credit risk	'	'
Pass (credit risk)	10,692	'
Pass (credit risk)	10,692	'
Watch (credit risk)	2,722	'
Special mention (credit risk)	1,226	'
Substandard (credit risk)	2,244	'
Credit Risk Profile by Internally Assigned Grade Total	16,884	'
Pass. (credit risk)	'	11,706
Watch. (credit risk)	'	2,530
Special mention. (credit risk)	'	1,281
Substandard. (credit risk)	'	2,186
Credit Risk Profile by Internally Assigned Grade Total.	'	$17,703

Credit_Risk_Profile_by_Interna

Credit Risk Profile by Internally Assigned Grade Other Credit Exposure (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Leases credit risk	'	'
Pass.	$1,297	'
Pass.	1,297	'
Doubtful or loss.	0	'
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure	1,297	'
Pass,	'	1,344
Doubtful or loss,	'	0
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure.	'	1,344
Agriculture credit risk	'	'
Pass.	2,698	'
Pass.	2,698	'
Special mention.	389	'
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure	3,087	'
Pass,	'	2,728
Special mention,	'	392
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure.	'	3,120
Consumer credit risk	'	'
Pass.	5,186	'
Pass.	5,186	'
Watch.	37	'
Special mention.	89	'
Substandard.	149	'
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure	5,461	'
Pass,	'	5,486
Watch,	'	21
Special mention,	'	111
Substandard,	'	154
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure.	'	5,772
Total credit risk	'	'
Pass.	208,928	'
Pass.	208,928	'
Watch.	21,828	'
Special mention.	22,054	'
Substandard.	8,348	'
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure	261,158	'
Pass,	'	205,274
Watch,	'	21,100
Special mention,	'	22,533
Substandard,	'	8,499
Total Credit Risk Profile by Internally Assigned Grade Other Credit Exposure.	'	$257,406

Companys_allowance_for_loan_an

Company's allowance for loan and lease losses and by portfolio segment and by impairment methodology (Details) (USD $)	Commercial. (Real Estate)	Commercial (Real Estate)	Multi-Family (Real Estate)	Construction (Real Estate)	Residential (Real Estate)	Leases (Other)	Agriculture (Other)	Consumer (Other)	Unallocated (Other)	Total (Other)
Allowance for Loan and Lease Losses . at Jan. 01, 2013	$0	'	'	'	'	'	'	'	'	'
Beginning balance. .	1,351	2,526	238	594	477	3	87	262	243	5,781
Provision for loan losses .	-84	140	18	-164	62	'	4	-8	132	100
Loans charged-off .	-10	'	'	'	-38	'	'	-5	-53	'
Recoveries .	74	1	'	'	'	'	'	'	75	'
Ending balance. . at Mar. 31, 2013	1,331	2,667	256	430	501	3	91	249	375	5,903
Allowance for Loan and Lease Losses . at Dec. 31, 2013	0	'	'	'	'	'	'	'	'	'
Beginning balance. . at Dec. 31, 2013	1,331	2,667	256	430	501	3	91	249	375	5,903
Allowance for Loan and Lease Losses , at Dec. 31, 2013	0	'	'	'	'	'	'	'	'	'
Beginning balance: Individually evaluated for impairment at Dec. 31, 2013	1,736	19,919	1,650	248	3,316	'	'	165	'	27,034
Beginning balance, ,	885	2,401	242	542	825	4	80	161	206	5,346
Provision for loan losses ,	-124	74	-1	-58	55	-4	-7	-4	69	'
Loans charged-off ,	'	'	'	'	'	'	'	-1	'	-1
Recoveries ,	20	1	'	1	3	3	'	'	'	28
Loans Ending balance , at Mar. 31, 2014	23,428	191,454	11,441	8,106	16,884	1,297	3,087	5,461	'	261,158
Ending balance: Individually evaluated for impairment . at Mar. 31, 2014	1,669	19,352	1,642	245	3,297	'	'	236	'	26,441
Ending balance: Collectively evaluated for impairment . at Mar. 31, 2014	21,759	172,102	9,799	7,861	13,587	1,297	3,087	5,225	'	234,717
Ending balance, , at Mar. 31, 2014	781	2,476	241	485	883	3	73	156	275	5,373
Ending balance: Individually evaluated for impairment , at Mar. 31, 2014	395	758	105	'	341	'	'	39	'	1,638
Ending balance: Collectively evaluated for impairment , at Mar. 31, 2014	$386	$1,718	$136	$485	$542	$3	$73	$117	$275	$3,735

BORROWING_ARRANGEMENTS_Details

BORROWING ARRANGEMENTS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
BORROWING ARRANGEMENTS {2}	'	'
Advances from Federal Home Loan Banks	$11,000,000	'
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range from	1.01%	1.19%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range to	1.91%	2.73%
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds	16,000,000	'
Secured Debt	56,689,000	56,230,000
unsecured short-term borrowing arrangements with two of its correspondent banks	17,000,000	'
Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco.Amounts available under this borrowing arrangement	$21,427,000	$21,358,000

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details)	Mar. 31, 2014
Fair Value Inputs, Assets, Quantitative Information (Level 3, Other real estate owned, Sales comparison approach less selling costs)	'
Fair value inputs, comparability adjustments Maximum	10.00%
Fair value inputs, comparability adjustments Minimum	8.00%

The_carrying_amounts_and_estim

The carrying amounts and estimated fair values of the Company's financial instruments (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Carrying Amount	'	'
Cash and due from banks	$24,131	$17,948
Cash and due from banks	24,131	17,948
Interest-bearing deposits in banks	1,000	1,000
Available-for-sale securities	275,211	272,791
Held-to-maturity securities	1,092	1,185
FHLB stock	3,248	3,248
Net loans and leases:	255,465	251,747
Accrued interest receivable	1,861	1,930
Noninterest-bearing	155,860	145,516
Savings	54,195	51,733
Money market	137,492	135,169
NOW accounts	62,086	59,042
Time, $100,000 or more	68,480	68,990
Other time	22,779	23,240
Short-term borrowings	3,000	8,000
Long-term borrowings	8,000	8,000
Accrued interest payable	60	125
Fair Value Measurements Using: Level1	'	'
Cash and due from banks	24,131	17,948
Cash and due from banks	24,131	17,948
Available-for-sale securities	88	70
Noninterest-bearing	155,860	145,516
Savings	54,195	51,733
Money market	137,492	135,169
NOW accounts	62,086	59,042
Short-term borrowings	3,000	8,000
Fair Value Measurements Using: Level2	'	'
Interest-bearing deposits in banks	1,000	1,000
Available-for-sale securities	275,123	272,721
Held-to-maturity securities	1,165	1,263
Net loans and leases:	258,827	'
Accrued interest receivable	1,130	1,170
Time, $100,000 or more	69,178	69,763
Other time	22,844	23,426
Long-term borrowings	8,106	8,110
Accrued interest payable	60	125
Fair Value Measurements Using: Level3	'	'
Net loans and leases:	258,827	249,931
Accrued interest receivable	731	760
Fair value measurements Total	'	'
Cash and due from banks	24,131	17,948
Cash and due from banks	24,131	17,948
Interest-bearing deposits in banks	1,000	1,000
Available-for-sale securities	275,211	272,791
Held-to-maturity securities	1,165	1,263
Net loans and leases:	'	249,931
Accrued interest receivable	1,861	1,930
Noninterest-bearing	155,860	145,516
Savings	54,195	51,733
Money market	137,492	135,169
NOW accounts	62,086	59,042
Time, $100,000 or more	69,178	69,763
Other time	22,844	23,426
Short-term borrowings	3,000	8,000
Long-term borrowings	8,106	8,110
Accrued interest payable	$60	$125