American River Bancshares (AMRB) 10-Q6 May 152015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	6-May-15
Document and Entity Information:
Entity Registrant Name	AMERICAN RIVER BANKSHARES
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	1108236
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		7,705,666
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONSOLIDATED_BALANCE_SHEET_Una

CONSOLIDATED BALANCE SHEET (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$17,047	$22,449
Interest-bearing deposits in banks	1,000	1,000
Investment securities:
Available-for-sale, at fair value	281,423	289,064
Held-to-maturity, at amortized cost	802	862
Loans and leases, less allowance for loan and lease losses of $5,308 at March 31, 2015 and $5,301 at December 31, 2014	261,112	258,057
Premises and equipment, net	1,551	1,518
Federal Home Loan Bank stock	3,686	3,686
Goodwill and other intangible assets	16,321	16,321
Other real estate owned	3,720	4,647
Bank owned life insurance	14,245	14,167
Accrued interest receivable and other assets	4,948	5,983
Total Assets	605,855	617,754
Deposits:
Noninterest bearing	158,590	155,698
Interest-bearing	342,569	354,995
Total deposits	501,159	510,693
Short-term borrowings	3,500	3,500
Long-term borrowings	7,500	7,500
Accrued interest payable and other liabilities	5,823	6,414
Total liabilities	517,982	528,107
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value: 2,000,000 shares authorized: none Outstanding
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 7,705,666 shares at March 31, 2015 and 8,089,615 shares at December 31, 2014	53,236	57,126
Retained earnings	30,106	29,150
Accumulated other comprehensive income, net of taxes	4,531	3,371
Total shareholders' equity	87,873	89,647
Total liabilities and shareholders' euity	$605,855	$617,754

CONSOLIDATED_BALANCE_SHEET_Par

CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Allowance for loan and lease losses (in dollars)	$5,308	$5,301
Preferred stock, no par value (in dollars per share)	$0	$0
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, no par value (in dollars per share)	$0	$0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,705,666	8,089,615
Common stock, shares outstanding	7,705,666	8,089,615

CONSOLIDATED_STATEMENT_OF_INCO

CONSOLIDATED STATEMENT OF INCOME (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Interest income:
Interest and fees on loans	$3,295	$3,455
Interest on deposits in banks	1	1
Interest and dividends on investment securities:
Taxable	1,417	1,339
Exempt from Federal income taxes	189	201
Dividends	0	0
Total interest income	4,902	4,996
Interest expense:
Interest on deposits	214	262
Interest on borrowings	34	42
Total interest expense	248	304
Net interest income	4,654	4,692
Provision for loan and lease losses	0	0
Net interest income after provision for loan and lease losses	4,654	4,692
Noninterest income:
Service charges on deposit accounts	117	156
Gain on sale of securities	167	0
Rental income from OREO properties	71	107
Other noninterest income	230	239
Total noninterest income	585	502
Noninterest expense:
Salaries and employee benefits	2,270	2,120
Occupancy	293	307
Furniture and equipment	177	178
Federal Deposit Insurance Corporation assessments	80	103
Expenses related to other real estate owned	147	-1
Other expense	846	946
Total noninterest expense	3,813	3,653
Income before provision for income taxes	1,426	1,541
Provision for income taxes	470	535
Net income	$956	$1,006
Basic earnings per share	$0.12	$0.12
Diluted earnings per share	$0.12	$0.12
Cash dividends per share	$0	$0

CONSOLIDATED_STATEMENT_OF_COMP

CONSOLIDATED STATEMENT OF COMPRENENSIVE INCOME (LOSS) (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$956	$1,006
Other comprehensive income:
Increase in net unrealized gains on investment securities	2,101	1,837
Deferred tax (expense) benefit	-841	-735
Increase in net unrealized gains on investment securities, net of tax	1,260	1,102
Reclassification adjustment for realized gains included in net income	-167	0
Tax effect	67	0
Realized gains, net of tax	-100	0
Total other comprehensive income	1,160	1,102
Comprehensive income	$2,116	$2,108

CONSOLIDATED_STATEMENT_OF_CHAN

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total
In Thousands, except Share data	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total
Begining Balance, Amount at Dec. 31, 2013	$61,108	$24,789	$1,123	$87,020
Begining Balance, Shares at Dec. 31, 2013	8,489,247
Net income		4,361		4,361
Net change in unrealized gains on available-for-sale investment securities			2,248	2,248
Net restricted stock awarded and related compensation expense, Amount	147			147
Net restricted stock awarded and related compensation expense, Shares	24,830
Stock option compensation expense, Amount	19			19
Retirement of common stock, Amount	-4,148			-4,148
Retirement of common stock, Shares	-424,462
Ending Balance, Amount at Dec. 31, 2014	57,126	29,150	3,371	89,647
Ending Balance, Shares at Dec. 31, 2014	8,089,615
Net income		956		956
Net change in unrealized gains on available-for-sale investment securities			1,160	1,160
Net restricted stock awarded and related compensation expense, Amount	49			49
Net restricted stock awarded and related compensation expense, Shares	20,532
Stock option compensation expense, Amount	6			6
Stock option compensation expense, Shares	0
Retirement of common stock, Amount	-3,945			-3,945
Retirement of common stock, Shares	-404,481
Ending Balance, Amount at Mar. 31, 2015	$53,236	$30,106	$4,531	$87,873
Ending Balance, Shares at Mar. 31, 2015	7,705,666

CONSOLIDATED_STATEMENT_OF_CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$956	$1,006
Adjustments to reconcile net income to net cash provided by operating activities:
(Decrease) increase in deferred loan origination fees, net	-5	7
Depreciation and amortization	103	114
Gain on sale and call of investment securities	-167	0
Amortization of investment security premiums and discounts, net	1,002	1,238
Increase in cash surrender values of life insurance policies	-78	-65
Stock based compensation expense	55	33
Loss (gain) on sale/write-down of other real estate owned	76	-106
Decrease in accrued interest receivable and other assets	261	639
Decrease in accrued interest payable and other liabilities	-591	-159
Net cash provided by operating activities	1,612	2,707
Cash flows from investing activities:
Proceeds from the sale of available-for-sale investment securities	9,910	0
Proceeds from matured available-for-sale investment securities	0	270
Proceeds from called available-for-sale investment securities	0	105
Purchases of available-for-sale investment securities	-12,298	-11,474
Proceeds from principal repayments for available-for-sale investment securities	11,128	9,277
Proceeds from principal repayments for held-to-maturity investment securities	60	94
Net increase in loans	-3,050	-3,724
Proceeds from sale of other real estate	851	106
Purchases of equipment	-136	-137
Net cash provided by (used in) investing activities	6,465	-5,483
Cash flows from financing activities:
Net (decrease) increase in demand, interest-bearing and savings deposits	-9,907	18,173
Net increase (decrease) in time deposits	373	-971
Net decrease in other borrowings	0	-5,000
Cash paid to repurchase common stock	-3,945	-3,243
Net cash (used in) provided by financing activities	-13,479	8,959
(Decrease) increase in cash and cash equivalents	-5,402	6,183
Cash and cash equivalents at beginning of year	22,449	17,948
Cash and cash equivalents at end of period	$17,047	$24,131

1_CONSOLIDATED_FINANCIAL_STATE

1. CONSOLIDATED FINANCIAL STATEMENTS	3 Months Ended
1. CONSOLIDATED FINANCIAL STATEMENTS	Mar. 31, 2015
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, 2015 and December 31, 2014, the results of its operations and statement of comprehensive income for the three month periods ended March 31, 2015 and 2014, its cash flows for the three-month periods ended March 31, 2015 and 2014 and its statement of changes in shareholders’ equity for the year ended December 31, 2014 and the three months ended March 31, 2015 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, 2014. The results of operations for the three-month period ended March 31, 2015 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.

2_STOCKBASED_COMPENSATION

2. STOCK-BASED COMPENSATION	3 Months Ended
2. STOCK-BASED COMPENSATION	Mar. 31, 2015
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 198,281 stock options remain outstanding at March 31, 2015. At March 31, 2015, there were 50,034 stock options and 53,370 restricted shares outstanding and the total number of authorized shares that remain available for issuance under the 2010 Plan was 1,416,330. 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 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 nonqualified option 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 awarded. 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 award date fair value of awards is determined by the market price of the Company’s common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. 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, 2015 and 2014, the compensation cost recognized for equity compensation was $55,000 and $33,000, respectively. The recognized tax benefit for equity compensation expense was $20,000 and $12,000, for the three-month periods ended March 31, 2015 and 2014, respectively.
	At March 31, 2015, the total compensation cost related to nonvested stock option awards not yet recorded is $82,000. This amount will be recognized over the next 4.25 years and the weighted average period of recognizing these costs is expected to be 1.9 years. At March 31, 2015, the total compensation cost related to restricted stock awards not yet recorded is $302,000. This amount will be recognized over the next 4.25 years and the weighted average period of recognizing these costs is expected to be 1.6 years.
	Equity Plans Activity
	Stock Options

	There were no stock options awarded during the three-month periods ended March 31, 2015 and 2014. A summary of option activity under the Plans as of March 31, 2015 and changes during the period then ended is presented below:

	Options	Shares		Weighted		Weighted		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value ($000)
				Price		Contractual
						Term
	Outstanding at January 1, 2015		271,700	$	16.27		3.1 years	$	82
	Granted		—		—		—		—
	Exercised		—		—		—		—
	Cancelled		23,385		18.11		—		—
	Outstanding at March 31, 2015		248,315	$	16.09		3.4 years	$	104
	Vested at March 31, 2015		205,202	$	17.71		2.3 years	$	59
	Non-vested at March 31, 2015		43,113	$	8.42		8.7 years	$	45
	Expected to vest at March 31, 2015		33,040	$	8.42		8.7 years	$	—

	Restricted Stock

	There were no shares of restricted stock awarded during the three-month period ended March 31, 2014 and 20,532 shares of restricted stock awarded during the three-month period ended March 31, 2015. There were no restricted stock awards that were fully vested during the three-month periods ended March 31, 2015 and 2014, respectively. The intrinsic value of nonvested restricted stock at March 31, 2015 was $505,000.

	Restricted Stock	Shares		Weighted
				Average Grant
				Date Fair Value
	Nonvested at January 1, 2015		32,838	$	8.31
	Awarded		20,532		9.41
	Less: Vested		—		—
	Less: Cancelled		—		—
	Nonvested at March 31, 2015		53,370	$	8.73

	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, 2015 or 2014 or outstanding at March 31, 2015 or December 31, 2014.

	The intrinsic value used for stock options and restricted stock was derived from the market price of the Company’s common stock of $9.47 as of March 31, 2015.

3_COMMITMENTS_AND_CONTINGENCIE

3. COMMITMENTS AND CONTINGENCIES	3 Months Ended
3. COMMITMENTS AND CONTINGENCIES	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	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 $29,916,000 and standby letters of credit of approximately $363,000 at March 31, 2015 and loan commitments of approximately $32,639,000 and standby letters of credit of approximately $356,000 at December 31, 2014. 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 2015 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, 2015 or December 31, 2014.

4_EARNINGS_PER_SHARE_COMPUTATI

4. EARNINGS PER SHARE COMPUTATION	3 Months Ended
4. EARNINGS PER SHARE COMPUTATION	Mar. 31, 2015
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 (7,821,651 shares and 8,321,448 shares for the three-month periods ended March 31, 2015 and 2014, 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 (23,881 shares for the three-month period ended March 31, 2015 and 20,395 shares for the three-month period ended March 31, 2014). For the three-month periods ended March 31, 2015 and 2014, there were 187,639 and 217,247 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.

5_INVESTMENT_SECURITIES

5. INVESTMENT SECURITIES	3 Months Ended
5. INVESTMENT SECURITIES	Mar. 31, 2015
INVESTMENTS SECURITIES (Tables)
INVESTMENT SECURITIES	5. INVESTMENT SECURITIES
	The amortized cost and estimated fair values of investment securities at March 31, 2015 and December 31, 2014 consisted of the following (dollars in thousands):

	Available-for-Sale
			31-Mar-15
			Amortized			Gross				Gross				Estimated
			Cost			Unrealized				Unrealized				Fair
						Gains				Losses				Value
	Debt securities:
	US Government Agencies and Sponsored Agencies		$	247,493		$	6,080			$	(182	)		$	253,391
	Obligations of states and political subdivisions			24,820			1,552				(12	)			26,360
	Corporate bonds			1,504			84				—				1,588
	Equity securities:
	Corporate stock			54			30				—				84
			$	273,871		$	7,746			$	(194	)		$	281,423

			31-Dec-14
			Amortized			Gross				Gross				Estimated
			Cost			Unrealized				Unrealized				Fair
						Gains				Losses				Value
	Debt securities:
	US Government Agencies and Sponsored Agencies		$	257,002		$	4,715			$	(602	)		$	261,115
	Obligations of states and political subdivisions			24,886			1,423				(20	)			26,289
	Corporate bonds			1,504			79				—				1,583
	Equity securities:
	Corporate stock			54			23				—				77
			$	283,446		$	6,240			$	(622	)		$	289,064

	Net unrealized gains on available-for-sale investment securities totaling $7,552,000 were recorded, net of $3,021,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at March 31, 2015. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2015 totaled $9,910,000 and $167,000, respectively. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2015.

	Net unrealized gains on available-for-sale investment securities totaling $5,618,000 were recorded, net of $2,247,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at December 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.

	Held-to-Maturity

	March 31, 2015
						Gross				Gross				Estimated
			Amortized			Unrealized				Unrealized				Fair
			Cost			Gains				Losses				Value
	Debt securities:
	US Government Agencies and Sponsored Agencies		$	802		$	61			$	—			$	863

	31-Dec-14
						Gross				Gross				Estimated
			Amortized			Unrealized				Unrealized				Fair
			Cost			Gains				Losses				Value
	Debt securities:
	US Government Agencies and Sponsored Agencies		$	862		$	60			$	—			$	922

	There were no sales or transfers of held-to-maturity investment securities for the periods ended March 31, 2015 and March 31, 2014. Investment securities with unrealized losses at March 31, 2015 and December 31, 2014 are summarized and classified according to the duration of the loss period as follows (dollars in thousands):

	31-Mar-15		Less than 12 Months							12 Months or More								Total
			Fair			Unrealized				Fair				Unrealized				Fair			Unrealized
			Value			Losses				Value				Losses				Value			Losses
	Available-for-Sale

	Debt securities:
	US Government Agencies and Sponsored Agencies		$	21,658		$	(160	)			3,905				(22	)		$	25,563		$	(182	)
	Obligations of states and political subdivisions			—			—				653				(12	)			653			(12	)
			$	21,658		$	(160	)		$	4,558			$	(34	)		$	26,216		$	(194	)

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

Debt securities:
US Government Agencies and Sponsored Agencies		$	57,145		$	(503	)		$	10,006			$	(99	)		$	67,151		$	(602	)
Obligations of states and political subdivisions			—			—				649				(20	)			649			(20	)
		$	57,145		$	(503	)		$	10,655			$	(119	)		$	67,800		$	(622	)

There were no held-to-maturity investment securities with unrealized losses as of March 31, 2015 or December 31, 2014.

At March 31, 2015, the Company held 221 securities of which 11 were in a loss position for less than twelve months and three were in a loss position for twelve months or more. Of the 11 securities in a loss position of less than twelve months, all were US Government Agencies and Sponsored Agencies securities. Of the three securities in a loss position for greater than twelve months at March 31, 2015, two were US Government Agencies and Sponsored Agencies securities and one was an obligation of a state or political subdivision. At December 31, 2014, the Company held 223 securities of which 25 were in a loss position for less than twelve months and six were in a loss position for twelve months or more. Of the 25 securities in a loss position for less than twelve months, 22 were US Government Agencies and Sponsored Agencies securities and three were obligations of state or political subdivisions and of the six securities that were in a loss position for greater than twelve months, five were US Government Agencies and Sponsored Agencies securities and one was an obligation of a state or political subdivision.

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, 2015 by contractual maturity are shown below (dollars in thousands).

		Available-for-Sale							Held-to-Maturity
		Amortized			Estimated				Amortized				Estimated
		Cost			Fair				Cost				Fair
					Value								Value

Within one year		$	175		$	176
After one year through five years			3,810			3,990
After five years through ten years			11,859			12,651
After ten years			10,480			11,131
			26,324			27,948
Investment securities not due at a single maturity date:
US Government Agencies and Sponsored Agencies			247,493			253,391			$	802			$	863
Corporate stock			54			84				—				—
		$	273,871		$	281,423			$	802			$	863

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.

6_IMPAIRED_AND_NONPERFORMING_L

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2015
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, 2015 and December 31, 2014, the recorded investment in nonperforming loans and leases was approximately $1,723,000 and $1,653,000, 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, 2015, the recorded investment in loans and leases that were considered to be impaired totaled $24,967,000, which includes $1,666,000 in nonaccrual loans and leases and $23,301,000 in accruing loans and leases. Of the total impaired loans of $24,967,000, loans totaling $11,027,000 were deemed to require no specific reserve and loans totaling $13,940,000 were deemed to require a related valuation allowance of $1,582,000. At December 31, 2014, the recorded investment in loans and leases that were considered to be impaired totaled $25,120,000 and had a related valuation allowance of $1,603,000. If interest had been accruing on the nonperforming loans, such income would have approximated $23,000 and $39,000 for the three months ended March 31, 2015 and 2014.

	At March 31, 2015 and December 31, 2014, the recorded investment in other real estate owned (“OREO”) was $3,720,000 and $4,647,000, respectively. During the first quarter of 2015, the Company sold two adjoining parcels of land in Sacramento County that did not result in a gain or loss at the time of sale; however, prior to sale, the book value of this property was adjusted by $76,000 with a charge to expense during the first quarter of 2015. The Company did not add any properties to OREO during the first quarter of 2015.

	The March 31, 2015 OREO balance of $3,720,000 consists of five properties including two commercial real estate properties in the total amount of $2,395,000, two commercial land properties in the total amount of $1,259,000 and one residential land property in the total amount of $66,000.

	Nonperforming loans and leases and other assets and OREO at March 31, 2015 and December 31, 2014 are summarized as follows (in thousands):

			March 31,				December 31,
			2015				2014
	Nonaccrual loans and leases that are current to terms (less than 30 days past due)		$	90			$	13
	Nonaccrual loans and leases that are past due			1,633				1,640
	Loans and leases past due 90 days and accruing interest			—				—
	Other assets			878				878
	Other real estate owned			3,720				4,647
	Total nonperforming assets		$	6,321			$	7,178

	Nonperforming loans and leases to total loans and leases			0.65	%			0.63	%
	Total nonperforming assets to total assets			1.04	%			1.16	%

	Impaired loans and leases as of and for the periods ended March 31, 2015 and December 31, 2014 are summarized as follows:

	(in thousands)		As of March 31, 2015									As of December 31, 2014
			Recorded				Unpaid			Related		Recorded		Unpaid		Related
			Investment				Principal			Allowance		Investment		Principal		Allowance
							Balance							Balance
	With no related allowance recorded:
	Commercial		$	—			$	—		$	—	$	—	$	—	$	—
	Real estate-commercial			10,652				10,850			—		10,684		10,882		—
	Real estate-multi-family			—				—			—		—		—		—
	Real estate-construction			—				—			—		—		—		—
	Real estate-residential			338				338			—		338		338		—
	Leases			—				—			—		—		—		—
	Consumer			37				37			—		37		37		—
	Subtotal		$	11,027			$	11,225		$	—	$	11,059	$	11,257	$	—

	With an allowance recorded:
	Commercial		$	745			$	745		$	344	$	769	$	769	$	344
	Real estate-commercial			9,701				9,701			922		9,773		9,773		949
	Real estate-multi-family			493				493			34		496		496		38
	Real estate-construction			—				—			—		—		—		—
	Real estate-residential			2,508				2,508			233		2,524		2,524		237
	Agriculture			379				379			13		381		381		13
	Consumer			114				114			36		118		118		22
	Subtotal		$	13,940			$	13,940		$	1,582	$	14,061	$	14,061	$	1,603

	Total:
	Commercial		$	745			$	745		$	344	$	769	$	769	$	344
	Real estate-commercial			20,353				20,551			922		20,457		20,655		949
	Real estate-multi-family			493				493			34		496		496		38
	Real estate-construction			—				—			—		—		—		—
	Real estate-residential			2,846				2,846			233		2,862		2,862		237
	Agriculture			379				379			13		381		381		13
	Consumer			151				151			36		155		155		22
			$	24,967			$	25,165		$	1,582	$	25,120	$	25,318	$	1,603

	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,				March 31,
			2015				2014

Commercial		$	757			$	1,702
Real estate-commercial			19,928				19,407
Real estate-multi-family			495				1,646
Real estate-construction			—				247
Real estate-residential			2,854				2,916
Agriculture			380				—
Consumer			153				164
Total		$	24,567			$	26,082

The following table presents the interest income recognized on impaired loans and leases for the periods indicated (in thousands):

		Interest Income Recognized
		for the three months ended
		March 31,				March 31,
		2015				2014

Commercial		$	2			$	13
Real estate-commercial			256				247
Real estate-multi-family			5				19
Real estate-construction			—				3
Real estate-residential			31				38
Agriculture			3				—
Consumer			1				2
Total		$	298			$	322

7_TROUBLED_DEBT_RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS

3 Months Ended

Mar. 31, 2015

TROUBLED DEBT RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS

At March 31, 2015, there were twelve loans and leases, totaling $8,857,000, that were considered to be troubled debt restructurings. Of these loans and leases, seven were modified and are currently performing (less than ninety days past due) totaling $7,795,000 and five are considered nonperforming (and included in the $983,000 discussed in Note 6), totaling $1,062,000. Of the five TDRs considered nonperforming, two are current to the modified terms. At March 31, 2015 and December 31, 2014, 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 $612,000 and $829,000 of specific reserves to loans whose terms have been modified as troubled debt restructurings as of March 31, 2015 and December 31, 2014.

During the three-month period ended March 31, 2015, the terms of certain loans were modified as 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, 2015 (dollars in thousands):

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

517

The troubled debt restructurings described above increased the allowance for loan and lease losses by $32,000 and resulted in no charge-offs during the three months ended March 31, 2015.

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.

There were no payment defaults during the three months ended March 31, 2015 or March 31, 2014 on troubled debt restructurings made in the preceding twelve months.

8_ALLOWANCE_FOR_LOAN_AND_LEASE

8. ALLOWANCE FOR LOAN AND LEASE LOSSES	3 Months Ended
8. ALLOWANCE FOR LOAN AND LEASE LOSSES	Mar. 31, 2015
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, 2015 and December 31, 2014 are summarized below:

	31-Mar-15		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction			Residential
	Grade:
	Pass		$	20,186			$	165,499			$	13,522			$	4,929		$	9,352
	Watch			1,220				12,966				501				4,589			2,324
	Special mention			148				14,133				—				327			752
	Substandard			3,579				3,471				—				—			835
	Doubtful or loss			—				—				—				—			—
	Total		$	25,133			$	196,069			$	14,023			$	9,845		$	13,263

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer							Total
	Grade:
	Pass		$	1,131			$	2,185			$	3,092						$	219,896
	Watch			—				—				1,139							22,739
	Special mention			—				378				268							16,006
	Substandard			—				—				176							8,061
	Doubtful or loss			—				—				—							—
	Total		$	1,131			$	2,563			$	4,675						$	266,702

	31-Dec-14		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction			Residential
	Grade:
	Pass		$	20,179			$	163,091			$	13,663			$	3,327		$	9,364
	Watch			1,280				13,724				504				4,372			2,504
	Special mention			101				13,583				—				329			603
	Substandard			3,626				3,473				—				—			838
	Doubtful or loss			—				—				—				—			—
	Total		$	25,186			$	193,871			$	14,167			$	8,028		$	13,309

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer							Total
	Grade:
	Pass		$	1,286			$	2,501			$	3,424						$	216,835
	Watch			—				—				1,041							23,425
	Special mention			—				381				268							15,265
	Substandard			—				—				183							8,120
	Doubtful or loss			—				—				—							—
	Total		$	1,286			$	2,882			$	4,916						$	263,645

	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-15
	(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, 2015		$	1,430			$	2,317			$	130			$	583		$	399			$	2			$	62			$	124			$	254			$	5,301
	Provision for loan losses			(33	)			(34	)			(10	)			97			(7	)			(1	)			(7	)			8				(13	)			—
	Loans charged-off			—				—				—				—			—				—				—				(2	)			—				(2	)
	Recoveries			6				1				—				—			—				—				—				2				—				9

	Ending balance, March 31, 2015		$	1,403			$	2,284			$	120			$	680		$	392			$	1			$	55			$	132			$	241			$	5,308

	Ending balance:
	Individually evaluated for impairment		$	343			$	922			$	34			$	—		$	234			$	—			$	13			$	36			$	—			$	1,582

Ending balance:
Collectively evaluated for impairment		$	1,060			$	1,362			$	86			$	680		$	158			$	1			$	42			$	96			$	241			$	3,726

Loans

Ending balance		$	25,133			$	196,069			$	14,023			$	9,845		$	13,263			$	1,131			$	2,563			$	4,675			$	—			$	266,702

Ending balance:
Individually evaluated for impairment		$	745			$	20,353			$	493			$	—		$	2,847			$	—			$	379			$	150			$	—			$	24,967

Ending balance:
Collectively evaluated for impairment		$	24,388			$	175,716			$	13,530			$	9,845		$	10,416			$	1,131			$	2,184			$	4,525			$	—			$	241,735


31-Dec-14
(dollars in thousands)							Real Estate															Other

			Commercial				Commercial				Multi-Family				Construction			Residential				Leases				Agriculture				Consumer				Unallocated				Total
Ending balance:
Individually evaluated for impairment		$	344			$	949			$	38			$	—		$	237			$	—			$	13			$	22			$	—			$	1,603

Ending balance:
Collectively evaluated for impairment		$	1,086			$	1,368			$	92			$	583		$	162			$	2			$	49			$	102			$	254			$	3,698

Loans

Ending balance		$	25,186			$	193,871			$	14,167			$	8,028		$	13,309			$	1,286			$	2,882			$	4,916			$	—			$	263,645

Ending balance:
Individually evaluated for impairment		$	769			$	20,457			$	496			$	—		$	2,862			$	—			$	381			$	155			$	—			$	25,120

Ending balance:
Collectively evaluated for impairment		$	24,417			$	173,414			$	13,671			$	8,028		$	10,447			$	1,286			$	2,501			$	4,761			$	—			$	238,525

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

The Company’s aging analysis of the loan and lease portfolio at March 31, 2015 and December 31, 2014 are summarized below:

31-Mar-15																									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		$	38			$	—			$	644			$	682		$	24,451			$	25,133				—			$	644
Real estate:
Commercial			866				—				103				969			195,100				196,069				—				605
Multi-family			—				—				—				—			14,023				14,023				—				—
Construction			93				—				—				93			9,752				9,845				—				—
Residential			—				—				—				—			13,263				13,263				—				338
Other:
Leases			—				—				—				—			1,131				1,131				—				—
Agriculture			—				—				—				—			2,563				2,563				—				—
Consumer			—				162				338				500			4,175				4,675				—				136
Total		$	997			$	162			$	1,085			$	2,244		$	264,458			$	266,702			$	—			$	1,723

31-Dec-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		$	513			$	—			$	666			$	1,179		$	24,007			$	25,186				—			$	666
Real estate:
Commercial			507				—				507				1,014			192,857				193,871				—				507
Multi-family			—				—				—				—			14,167				14,167				—				—
Construction			—				—				—				—			8,028				8,028				—				—
Residential			—				—				338				338			12,971				13,309				—				338
Other:
Leases			—				—				—				—			1,286				1,286				—				—
Agriculture			—				—				—				—			2,882				2,882				—				—
Consumer			135				—				—				135			4,781				4,916				—				142
Total		$	1,155			$	—			$	1,511			$	2,666		$	260,979			$	263,645			$	—			$	1,653

9_BORROWING_ARRANGEMENTS

9. BORROWING ARRANGEMENTS	3 Months Ended
9. BORROWING ARRANGEMENTS	Mar. 31, 2015
Borrowing Arrangements
BORROWING ARRANGEMENTS	9. BORROWING ARRANGEMENTS

	At March 31, 2015, 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, 2015 or December 31, 2014.

	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, 2015, bearing interest rates ranging from 0.45% to 1.91% and maturing between July 20, 2015 and July 12, 2019. Advances totaling $11,000,000 were outstanding from the FHLB at December 31, 2014, bearing interest rates ranging from 0.24% to 1.91% and maturing between March 16, 2015 and July 12, 2019. Remaining amounts available under the borrowing arrangement with the FHLB at March 31, 2015 and December 31, 2014 totaled $74,948,000 and $67,228,000, 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, 2015 and December 31, 2014 were $17,618,000 and $17,335,000, respectively. There were no advances outstanding under this borrowing arrangement as of March 31, 2015 and December 31, 2014.

10_INCOME_TAXES

10. INCOME TAXES	3 Months Ended
10. INCOME TAXES	Mar. 31, 2015
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 respective tax basis. 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, 2015 and 2014.

11_FAIR_VALUE_MEASUREMENTS

11. FAIR VALUE MEASUREMENTS	3 Months Ended
11. FAIR VALUE MEASUREMENTS	Mar. 31, 2015
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, 2015 and December 31, 2014. 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-15		Amount			Level 1			Level 2			Level 3			Total

	Financial assets:
	Cash and due from banks		$	17,047		$	17,047								$	17,047
	Interest-bearing deposits in banks			1,000					$	999						999
	Available-for-sale securities			281,423			35			281,388						281,423
	Held-to-maturity securities			802						863						863
	FHLB stock			3,686			N/A			N/A			N/A			N/A
	Net loans and leases:			261,112								$	266,753			266,753
	Accrued interest receivable			1,809						1,067			742			1,809
	Financial liabilities:
	Deposits:
	Noninterest-bearing		$	158,950		$	158,950								$	158,950
	Savings			59,951			59,951									59,951
	Money market			132,083			132,083									132,083
	NOW accounts			62,474			62,474									62,474
	Time, $100,000 or more			66,467					$	67,058						670,258
	Other time			21,594						21,772						21,772
	Short-term borrowings			3,500			3,500									3,500
	Long-term borrowings			7,500						7,594						7,594
	Accrued interest payable			60						60						60

			Carrying			Fair Value Measurements Using:
	31-Dec-14		Amount			Level 1			Level 2			Level 3			Total

	Financial assets:
	Cash and due from banks		$	22,449		$	22,449		$	—		$	—		$	22,449
	Interest-bearing deposits in banks			1,000			—			1,002			—			1,002
	Available-for-sale securities			289,064			28			289,036			—			289,064
	Held-to-maturity securities			862			—			922			—			922
	FHLB stock			3,686			N/A			N/A			N/A			N/A
	Net loans and leases:			258,057			—			—			261,421			261,421
	Accrued interest receivable			1,858			—			1,150			708			1,858

	Financial liabilities:
	Deposits:
	Noninterest-bearing		$	155,698		$	155,698		$	—		$	—		$	155,698
	Savings			58,820			58,820			—			—			58,820
	Money market			147,625			147,625			—			—			147,625
	NOW accounts			60,862			60,862			—			—			60,862
	Time, $100,000 or more			65,569			—			66,203			—			66,203
	Other time			22,119			—			22,282			—			22,282
	Short-term borrowings			3,500			3,500			—			—			3,500
	Long-term borrowings			7,500			—			7,567			—			7,567
	Accrued interest payable			59			—			59			—			59

	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, 2015 and December 31, 2014:

	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.

FHLB stock: It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

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.

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, 2015 and December 31, 2014.

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-15

Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
US Government Agencies and Sponsored Agencies		$	253,391		$	—		$	253,391		$	—		$	—
Obligations of states and political subdivisions			26,360			—			26,360			—			—
Corporate bonds			1,588			—			1,588			—			—
Corporate stock			84			35			49
Total recurring		$	281,423		$	35		$	281,388		$	—		$	—

Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Commercial		$	644		$	—		$	—		$	644		$	—
Real estate:
Commercial			304			—			—			304			—
Other real estate owned			3,720			—			—			3,720			76
Total nonrecurring		$	4,668		$	—		$	—		$	4,668		$	76


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

31-Dec-14

Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
US Government Agencies and Sponsored Agencies		$	261,115		$	—		$	261,115		$	—		$	—
Corporate Debt securities			1,583			—			1,583
Obligations of states and political subdivisions			26,289			—			26,289			—			—
Corporate stock			77			28			49			—			—
Total recurring		$	289,064		$	28		$	289,036		$	—		$	—

Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Commercial		$	666		$	—		$	—		$	666		$	14
Real estate:
Commercial			286			—			—			286			—

Other real estate owned			4,404			—			—			4,404			66
Total nonrecurring		$	5,356		$	—		$	—		$	5,356		$	80

There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2015 or the twelve months ended December 31, 2014.

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 real estate appraisals. These appraisals 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%.

2_STOCK_BASED_COMPENSATION_Tab

2. STOCK BASED COMPENSATION (Tables)	3 Months Ended
2. STOCK BASED COMPENSATION (Tables)	Mar. 31, 2015
STOCK BASED COMPENSATION. (Tables)
Schedule of Share-based Compensation, Stock Options, Activity	A summary of option activity under the Plans as of March 31, 2015 and changes during the period then ended is presented below:

	Options	Shares		Weighted		Weighted		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value ($000)
				Price		Contractual
						Term
	Outstanding at January 1, 2015		271,700	$	16.27		3.1 years	$	82
	Granted		—		—		—		—
	Exercised		—		—		—		—
	Cancelled		23,385		18.11		—		—
	Outstanding at March 31, 2015		248,315	$	16.09		3.4 years	$	104
	Vested at March 31, 2015		205,202	$	17.71		2.3 years	$	59
	Non-vested at March 31, 2015		43,113	$	8.42		8.7 years	$	45
	Expected to vest at March 31, 2015		33,040	$	8.42		8.7 years	$	—
Schedule of Nonvested Share Activity	Restricted Stock	Shares		Weighted
				Average Grant
				Date Fair Value
	Nonvested at January 1, 2015		32,838	$	8.31
	Awarded		20,532		9.41
	Less: Vested		—		—
	Less: Cancelled		—		—
	Nonvested at March 31, 2015		53,370	$	8.73

5_INVESTMENTS_SECURITIES_Table

5. INVESTMENTS SECURITIES (Tables)	3 Months Ended
5. INVESTMENTS SECURITIES (Tables)	Mar. 31, 2015
INVESTMENTS SECURITIES (Tables)
Available-for-sale Securities	The amortized cost and estimated fair values of investment securities at March 31, 2015 and December 31, 2014 consisted of the following (dollars in thousands):

	Available-for-Sale
		31-Mar-15
		Amortized		Gross			Gross			Estimated
		Cost		Unrealized			Unrealized			Fair
				Gains			Losses			Value
	Debt securities:
	US Government Agencies and Sponsored Agencies	$	247,493	$	6,080		$	(182	)	$	253,391
	Obligations of states and political subdivisions		24,820		1,552			(12	)		26,360
	Corporate bonds		1,504		84			—			1,588
	Equity securities:
	Corporate stock		54		30			—			84
		$	273,871	$	7,746		$	(194	)	$	281,423

		31-Dec-14
		Amortized		Gross			Gross			Estimated
		Cost		Unrealized			Unrealized			Fair
				Gains			Losses			Value
	Debt securities:
	US Government Agencies and Sponsored Agencies	$	257,002	$	4,715		$	(602	)	$	261,115
	Obligations of states and political subdivisions		24,886		1,423			(20	)		26,289
	Corporate bonds		1,504		79			—			1,583
	Equity securities:
	Corporate stock		54		23			—			77
		$	283,446	$	6,240		$	(622	)	$	289,064
Held-to-maturity Securities	Held-to-Maturity

	March 31, 2015
				Gross			Gross			Estimated
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	Debt securities:
	US Government Agencies and Sponsored Agencies	$	802	$	61		$	—		$	863

	31-Dec-14
				Gross			Gross			Estimated
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	Debt securities:
	US Government Agencies and Sponsored Agencies	$	862	$	60		$	—		$	922
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	Investment securities with unrealized losses at March 31, 2015 and December 31, 2014 are summarized and classified according to the duration of the loss period as follows (dollars in thousands):

	31-Mar-15	Less than 12 Months					12 Months or More						Total
		Fair		Unrealized			Fair			Unrealized			Fair		Unrealized
		Value		Losses			Value			Losses			Value		Losses
	Available-for-Sale

	Debt securities:
	US Government Agencies and Sponsored Agencies	$	21,658	$	(160	)		3,905			(22	)	$	25,563	$	(182	)
	Obligations of states and political subdivisions		—		—			653			(12	)		653		(12	)
		$	21,658	$	(160	)	$	4,558		$	(34	)	$	26,216	$	(194	)

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

	Debt securities:
	US Government Agencies and Sponsored Agencies	$	57,145	$	(503	)	$	10,006		$	(99	)	$	67,151	$	(602	)
	Obligations of states and political subdivisions		—		—			649			(20	)		649		(20	)
		$	57,145	$	(503	)	$	10,655		$	(119	)	$	67,800	$	(622	)
Available-for-sale Securities, Debt Maturities, Basis of Allocation	The amortized cost and estimated fair values of investment securities at March 31, 2015 by contractual maturity are shown below (dollars in thousands).

		Available-for-Sale					Held-to-Maturity
		Amortized		Estimated			Amortized			Estimated
		Cost		Fair			Cost			Fair
				Value						Value

	Within one year	$	175	$	176
	After one year through five years		3,810		3,990
	After five years through ten years		11,859		12,651
	After ten years		10,480		11,131
			26,324		27,948
	Investment securities not due at a single maturity date:
	US Government Agencies and Sponsored Agencies		247,493		253,391		$	802		$	863
	Corporate stock		54		84			—			—
		$	273,871	$	281,423		$	802		$	863

6_IMPAIRED_AND_NONPERFORMING_L1

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2015
Impaired And Nonperforming Loans And Leases And Other Real Estate Owned Tables
Schedule of Nonperforming loans and leases and other assets and OREO	Nonperforming loans and leases and other assets and OREO at March 31, 2015 and December 31, 2014 are summarized as follows (in thousands):

		March 31,			December 31,
		2015			2014
	Nonaccrual loans and leases that are current to terms (less than 30 days past due)	$	90		$	13
	Nonaccrual loans and leases that are past due		1,633			1,640
	Loans and leases past due 90 days and accruing interest		—			—
	Other assets		878			878
	Other real estate owned		3,720			4,647
	Total nonperforming assets	$	6,321		$	7,178

	Nonperforming loans and leases to total loans and leases		0.65	%		0.63	%
	Total nonperforming assets to total assets		1.04	%		1.16	%
Schedule of Impaired Financing Receivables	Impaired loans and leases as of and for the periods ended March 31, 2015 and December 31, 2014 are summarized as follows:

	(in thousands)	As of March 31, 2015								As of December 31, 2014
		Recorded			Unpaid			Related		Recorded		Unpaid		Related
		Investment			Principal			Allowance		Investment		Principal		Allowance
					Balance							Balance
	With no related allowance recorded:
	Commercial	$	—		$	—		$	—	$	—	$	—	$	—
	Real estate-commercial		10,652			10,850			—		10,684		10,882		—
	Real estate-multi-family		—			—			—		—		—		—
	Real estate-construction		—			—			—		—		—		—
	Real estate-residential		338			338			—		338		338		—
	Leases		—			—			—		—		—		—
	Consumer		37			37			—		37		37		—
	Subtotal	$	11,027		$	11,225		$	—	$	11,059	$	11,257	$	—

	With an allowance recorded:
	Commercial	$	745		$	745		$	344	$	769	$	769	$	344
	Real estate-commercial		9,701			9,701			922		9,773		9,773		949
	Real estate-multi-family		493			493			34		496		496		38
	Real estate-construction		—			—			—		—		—		—
	Real estate-residential		2,508			2,508			233		2,524		2,524		237
	Agriculture		379			379			13		381		381		13
	Consumer		114			114			36		118		118		22
	Subtotal	$	13,940		$	13,940		$	1,582	$	14,061	$	14,061	$	1,603

	Total:
	Commercial	$	745		$	745		$	344	$	769	$	769	$	344
	Real estate-commercial		20,353			20,551			922		20,457		20,655		949
	Real estate-multi-family		493			493			34		496		496		38
	Real estate-construction		—			—			—		—		—		—
	Real estate-residential		2,846			2,846			233		2,862		2,862		237
	Agriculture		379			379			13		381		381		13
	Consumer		151			151			36		155		155		22
		$	24,967		$	25,165		$	1,582	$	25,120	$	25,318	$	1,603
Schedule of Average Balance Recorded to Imapired Loans and Leases	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,			March 31,
		2015			2014

	Commercial	$	757		$	1,702
	Real estate-commercial		19,928			19,407
	Real estate-multi-family		495			1,646
	Real estate-construction		—			247
	Real estate-residential		2,854			2,916
	Agriculture		380			—
	Consumer		153			164
	Total	$	24,567		$	26,082
Schedule of interest income recognized on impaired loans and leases	The following table presents the interest income recognized on impaired loans and leases for the periods indicated (in thousands):

		Interest Income Recognized
		for the three months ended
		March 31,			March 31,
		2015			2014

	Commercial	$	2		$	13
	Real estate-commercial		256			247
	Real estate-multi-family		5			19
	Real estate-construction		—			3
	Real estate-residential		31			38
	Agriculture		3			—
	Consumer		1			2
	Total	$	298		$	322

7_TROUBLED_DEBT_RESTRUCTURINGS1

7. TROUBLED DEBT RESTRUCTURINGS (Tables)

3 Months Ended

Mar. 31, 2015

Troubled Debt Restructurings Tables

TROUBLED DEBT RESTRUCTURINGS

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2015 (dollars in thousands):

Pre-

Post-

Modification

Outstanding

Number

Recorded

of Loans

Investment

Troubled debt restructurings:

Real estate – commercial

517

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

8_ALLOWANCE_FOR_LOAN_AND_LEASE1

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	3 Months Ended
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	Mar. 31, 2015
Allowance For Loan And Lease Losses Tables
Schedule Of Recorded Investment Evaluated Based On Internal Risk Ratings	The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of March 31, 2015 and December 31, 2014 are summarized below:

	31-Mar-15		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction				Residential
	Grade:
	Pass		$	20,186			$	165,499			$	13,522			$	4,929			$	9,352
	Watch			1,220				12,966				501				4,589				2,324
	Special mention			148				14,133				—				327				752
	Substandard			3,579				3,471				—				—				835
	Doubtful or loss			—				—				—				—				—
	Total		$	25,133			$	196,069			$	14,023			$	9,845			$	13,263

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer								Total
	Grade:
	Pass		$	1,131			$	2,185			$	3,092							$	219,896
	Watch			—				—				1,139								22,739
	Special mention			—				378				268								16,006
	Substandard			—				—				176								8,061
	Doubtful or loss			—				—				—								—
	Total		$	1,131			$	2,563			$	4,675							$	266,702

	31-Dec-14		Credit Risk Profile by Internally Assigned Grade
	(dollars in thousands)						Real Estate
			Commercial				Commercial				Multi-family				Construction				Residential
	Grade:
	Pass		$	20,179			$	163,091			$	13,663			$	3,327			$	9,364
	Watch			1,280				13,724				504				4,372				2,504
	Special mention			101				13,583				—				329				603
	Substandard			3,626				3,473				—				—				838
	Doubtful or loss			—				—				—				—				—
	Total		$	25,186			$	193,871			$	14,167			$	8,028			$	13,309

			Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
			Leases				Agriculture				Consumer								Total
	Grade:
	Pass		$	1,286			$	2,501			$	3,424							$	216,835
	Watch			—				—				1,041								23,425
	Special mention			—				381				268								15,265
	Substandard			—				—				183								8,120
	Doubtful or loss			—				—				—								—
	Total		$	1,286			$	2,882			$	4,916							$	263,645
Summary Of Analysis Of Allowance For Loan Losses	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-15
	(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, 2015		$	1,430			$	2,317			$	130			$	583			$	399			$	2			$	62			$	124			$	254			$	5,301
	Provision for loan losses			(33	)			(34	)			(10	)			97				(7	)			(1	)			(7	)			8				(13	)			—
	Loans charged-off			—				—				—				—				—				—				—				(2	)			—				(2	)
	Recoveries			6				1				—				—				—				—				—				2				—				9

	Ending balance, March 31, 2015		$	1,403			$	2,284			$	120			$	680			$	392			$	1			$	55			$	132			$	241			$	5,308

	Ending balance:
	Individually evaluated for impairment		$	343			$	922			$	34			$	—			$	234			$	—			$	13			$	36			$	—			$	1,582

	Ending balance:
	Collectively evaluated for impairment		$	1,060			$	1,362			$	86			$	680			$	158			$	1			$	42			$	96			$	241			$	3,726

	Loans

	Ending balance		$	25,133			$	196,069			$	14,023			$	9,845			$	13,263			$	1,131			$	2,563			$	4,675			$	—			$	266,702

	Ending balance:
	Individually evaluated for impairment		$	745			$	20,353			$	493			$	—			$	2,847			$	—			$	379			$	150			$	—			$	24,967

	Ending balance:
	Collectively evaluated for impairment		$	24,388			$	175,716			$	13,530			$	9,845			$	10,416			$	1,131			$	2,184			$	4,525			$	—			$	241,735


	31-Dec-14
	(dollars in thousands)							Real Estate																Other

				Commercial				Commercial				Multi-Family				Construction				Residential				Leases				Agriculture				Consumer				Unallocated				Total
	Ending balance:
	Individually evaluated for impairment		$	344			$	949			$	38			$	—			$	237			$	—			$	13			$	22			$	—			$	1,603

	Ending balance:
	Collectively evaluated for impairment		$	1,086			$	1,368			$	92			$	583			$	162			$	2			$	49			$	102			$	254			$	3,698

	Loans

	Ending balance		$	25,186			$	193,871			$	14,167			$	8,028			$	13,309			$	1,286			$	2,882			$	4,916			$	—			$	263,645

	Ending balance:
	Individually evaluated for impairment		$	769			$	20,457			$	496			$	—			$	2,862			$	—			$	381			$	155			$	—			$	25,120

	Ending balance:
	Collectively evaluated for impairment		$	24,417			$	173,414			$	13,671			$	8,028			$	10,447			$	1,286			$	2,501			$	4,761			$	—			$	238,525

	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
Summary Of Activity In Allowance For Loan Losses By Loan Class	The Company’s aging analysis of the loan and lease portfolio at March 31, 2015 and December 31, 2014 are summarized below:

	31-Mar-15																										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		$	38			$	—			$	644			$	682			$	24,451			$	25,133				—			$	644
	Real estate:
	Commercial			866				—				103				969				195,100				196,069				—				605
	Multi-family			—				—				—				—				14,023				14,023				—				—
	Construction			93				—				—				93				9,752				9,845				—				—
	Residential			—				—				—				—				13,263				13,263				—				338
	Other:
	Leases			—				—				—				—				1,131				1,131				—				—
	Agriculture			—				—				—				—				2,563				2,563				—				—
	Consumer			—				162				338				500				4,175				4,675				—				136
	Total		$	997			$	162			$	1,085			$	2,244			$	264,458			$	266,702			$	—			$	1,723

	31-Dec-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		$	513			$	—			$	666			$	1,179			$	24,007			$	25,186				—			$	666
	Real estate:
	Commercial			507				—				507				1,014				192,857				193,871				—				507
	Multi-family			—				—				—				—				14,167				14,167				—				—
	Construction			—				—				—				—				8,028				8,028				—				—
	Residential			—				—				338				338				12,971				13,309				—				338
	Other:
	Leases			—				—				—				—				1,286				1,286				—				—
	Agriculture			—				—				—				—				2,882				2,882				—				—
	Consumer			135				—				—				135				4,781				4,916				—				142
	Total		$	1,155			$	—			$	1,511			$	2,666			$	260,979			$	263,645			$	—			$	1,653

11_FAIR_VALUE_MEASUREMENTS_Tab

11. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
11. FAIR VALUE MEASUREMENTS (Tables)	Mar. 31, 2015
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-15	Amount		Level 1		Level 2		Level 3		Total

	Financial assets:
	Cash and due from banks	$	17,047	$	17,047					$	17,047
	Interest-bearing deposits in banks		1,000			$	999				999
	Available-for-sale securities		281,423		35		281,388				281,423
	Held-to-maturity securities		802				863				863
	FHLB stock		3,686		N/A		N/A		N/A		N/A
	Net loans and leases:		261,112					$	266,753		266,753
	Accrued interest receivable		1,809				1,067		742		1,809
	Financial liabilities:
	Deposits:
	Noninterest-bearing	$	158,950	$	158,950					$	158,950
	Savings		59,951		59,951						59,951
	Money market		132,083		132,083						132,083
	NOW accounts		62,474		62,474						62,474
	Time, $100,000 or more		66,467			$	67,058				670,258
	Other time		21,594				21,772				21,772
	Short-term borrowings		3,500		3,500						3,500
	Long-term borrowings		7,500				7,594				7,594
	Accrued interest payable		60				60				60

		Carrying		Fair Value Measurements Using:
	31-Dec-14	Amount		Level 1		Level 2		Level 3		Total

	Financial assets:
	Cash and due from banks	$	22,449	$	22,449	$	—	$	—	$	22,449
	Interest-bearing deposits in banks		1,000		—		1,002		—		1,002
	Available-for-sale securities		289,064		28		289,036		—		289,064
	Held-to-maturity securities		862		—		922		—		922
	FHLB stock		3,686		N/A		N/A		N/A		N/A
	Net loans and leases:		258,057		—		—		261,421		261,421
	Accrued interest receivable		1,858		—		1,150		708		1,858

	Financial liabilities:
	Deposits:
	Noninterest-bearing	$	155,698	$	155,698	$	—	$	—	$	155,698
	Savings		58,820		58,820		—		—		58,820
	Money market		147,625		147,625		—		—		147,625
	NOW accounts		60,862		60,862		—		—		60,862
	Time, $100,000 or more		65,569		—		66,203		—		66,203
	Other time		22,119		—		22,282		—		22,282
	Short-term borrowings		3,500		3,500		—		—		3,500
	Long-term borrowings		7,500		—		7,567		—		7,567
	Accrued interest payable		59		—		59		—		59
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-15

	Assets and liabilities measured on a recurring basis:
	Available-for-sale securities:
	US Government Agencies and Sponsored Agencies	$	253,391	$	—	$	253,391	$	—	$	—
	Obligations of states and political subdivisions		26,360		—		26,360		—		—
	Corporate bonds		1,588		—		1,588		—		—
	Corporate stock		84		35		49
	Total recurring	$	281,423	$	35	$	281,388	$	—	$	—

	Assets and liabilities measured on a nonrecurring basis:
	Impaired loans:
	Commercial	$	644	$	—	$	—	$	644	$	—
	Real estate:
	Commercial		304		—		—		304		—
	Other real estate owned		3,720		—		—		3,720		76
	Total nonrecurring	$	4,668	$	—	$	—	$	4,668	$	76


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

	31-Dec-14

	Assets and liabilities measured on a recurring basis:
	Available-for-sale securities:
	US Government Agencies and Sponsored Agencies	$	261,115	$	—	$	261,115	$	—	$	—
	Corporate Debt securities		1,583		—		1,583
	Obligations of states and political subdivisions		26,289		—		26,289		—		—
	Corporate stock		77		28		49		—		—
	Total recurring	$	289,064	$	28	$	289,036	$	—	$	—

	Assets and liabilities measured on a nonrecurring basis:
	Impaired loans:
	Commercial	$	666	$	—	$	—	$	666	$	14
	Real estate:
	Commercial		286		—		—		286		—

	Other real estate owned		4,404		—		—		4,404		66
	Total nonrecurring	$	5,356	$	—	$	—	$	5,356	$	80

2_STOCKBASED_COMPENSATION_Opti

2. STOCK-BASED COMPENSATION - Option activity (Details) (Options Shares, USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Options Shares
Outstanding	271,700
Granted
Exercised
Cancelled	23,385
Outstanding	248,315
Number of options vested	205,202
Nonvested, Shares	43,113
Expected to vest, Shares	33,040
Weighted average exercise price, outstanding beginning	$16.27
Granted
Exercised
Cancelled	$18.11
Weighted average exercise price, outstanding ending	$16.09
Weighted average exercise price of vested stock options (in dollars per share)	$17.71
Weighted average exercise price of nonvested stock options (in dollars per share)	$8.42
Weighted average exercise price of Expected to vest (in dollars per share)	$8.42
Weighted years to maturity outstanding beginning	3 years 1 month 6 days
Weighted years to maturity outstanding Ending	3 years 4 months 24 days
Weighted average remaining contractual term in years, vested	2 years 3 months 18 days
Weighted average remaining contractual term in years, non-vested	8 years 8 months 12 days
Weighted average remaining contractual term in years, expected to vest	8 years 8 months 12 days
Aggregate Intrinsic Value, options outstanding, beginning	$82
Aggregate Intrinsic Value, options outstanding, ending	104
Aggregate Intrinsic Value, options vested	59
Aggregate Intrinsic Value, options non-vested	$45

2_STOCKBASED_COMPENSATION_Rest

2. STOCK-BASED COMPENSATION - Restricted Stock (Details) (Restricted stock, USD $)	3 Months Ended
	Mar. 31, 2015
Restricted stock
Restricted Stock Nonvested beginning balance	32,838
Awarded	20,532
Less: Vested
Less: Cancelled
Restricted Stock Nonvested ending balance	53,370
Weighted Average Grant Date Fair Value Nonvested beginning balance	$8.31
Awarded	$9.41
Less: Vested
Less: Cancelled
Weighted Average Grant Date Fair Value Nonvested ending balance	$8.73

2_STOCKBASED_COMPENSATION_Equi

2. STOCK-BASED COMPENSATION - Equity Plans and Compensation (Details Narrative) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Share based compensation	$55	$33
Tax benefit of equity compensation expense	20	12
Compensation cost related to nonvested stock option awards not yet recorded	82
Compensation cost related to restricted stock awards not yet recorded	302
Intrinsic value of nonvested restricted stock	$505
2000 Plan
Stock options outstanding under Equity Incentive Plan	198,281
Authorized shares that remain available for issuance under the 2010 Plan	1,416,330
Options Shares
Stock options outstanding under Equity Incentive Plan	248,315		271,700
Authorized shares that remain available for issuance under the 2010 Plan	50,034
Period for recognition	4 years 3 months
Weighted average costs is expected period	1 year 10 months 24 days
Restricted stock
Authorized shares that remain available for issuance under the 2010 Plan	53,370
Period for recognition	4 years 3 months
Weighted average costs is expected period	1 year 7 months 6 days

3_COMMITMENTS_AND_CONTINGENCIE1

3. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Commitments
Loan commitments
Commitments	29,916	32,639
Standby letters of credit
Commitments	$363	$356

4_EARNINGS_PER_SHARE_COMPUTATI1

4. EARNINGS PER SHARE COMPUTATION (Details Narrative)	3 Months Ended
4. EARNINGS PER SHARE COMPUTATION (Details Narrative)	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share Computation Details Narrative
Weighted average common shares outstanding	7,821,651	8,321,448
Dilutive effect of stock based awards	23,881	20,395
Antidilutive stock option excluded from earnings per share	187,639	217,247

5_INVESTMENT_SECURITIES_Amorti

5. INVESTMENT SECURITIES - Amortized Cost, Unrealized Gains, Unrealized Losses And Estimated Fair Values (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available for sale securities, Amortized Cost	$273,871	$283,446
Available for sale securities, Unrealized Gains	7,746	6,240
Available for sale securities, Unrealized Losses	-194	-622
Available for sale securities, Estimated Fair Value	281,423	289,064
Held-to-Maturity Debt securities Amortized Cost	802
Held-to-Maturity Debt securities Estimated Fair Value	863	922
US Government Agencies and Sponsored Agencies
Available for sale securities, Amortized Cost	247,493	257,002
Available for sale securities, Unrealized Gains	6,080	4,715
Available for sale securities, Unrealized Losses	-182	-602
Available for sale securities, Estimated Fair Value	253,391	261,115
Held-to-Maturity Debt securities Amortized Cost	802	862
Held-to-Maturity Debt securities Gross Unrealized Gains	61	60
Held-to-Maturity Debt securities Gross Unrealized Losses
Held-to-Maturity Debt securities Estimated Fair Value	863	922
Obligations of states and political subdivisions
Available for sale securities, Amortized Cost	24,820	24,886
Available for sale securities, Unrealized Gains	1,552	1,423
Available for sale securities, Unrealized Losses	-12	-20
Available for sale securities, Estimated Fair Value	26,360	26,289
Corporate Bonds
Available for sale securities, Amortized Cost	1,504	1,504
Available for sale securities, Unrealized Gains	84	79
Available for sale securities, Unrealized Losses
Available for sale securities, Estimated Fair Value	1,588	1,583
Equity Securities - Corporate Stock
Available for sale securities, Amortized Cost	54	54
Available for sale securities, Unrealized Gains	30	23
Available for sale securities, Unrealized Losses
Available for sale securities, Estimated Fair Value	84	77
Held-to-Maturity Debt securities Amortized Cost
Held-to-Maturity Debt securities Estimated Fair Value

5_INVESTMENT_SECURITIES_Invest

5. INVESTMENT SECURITIES - Investment securities with unrealized losses (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Less than 12 months, Estimated Fair Value	$21,658	$57,145
Less than 12 months, Unrealized Loss	-160	-503
12 months or more, Estimated Fair Value	4,558	10,655
12 months or more, Unrealized Loss	-34	-119
Total Estimated Fair Value	26,216	67,800
Total Unrealized Loss	-194	-622
US Government Agencies and Sponsored Agencies
Less than 12 months, Estimated Fair Value	21,658	57,145
Less than 12 months, Unrealized Loss	-160	-503
12 months or more, Estimated Fair Value	3,905	10,006
12 months or more, Unrealized Loss	-22	-99
Total Estimated Fair Value	25,563	67,151
Total Unrealized Loss	-182	-602
Obligations of states and political subdivisions
Less than 12 months, Estimated Fair Value
Less than 12 months, Unrealized Loss
12 months or more, Estimated Fair Value	653	649
12 months or more, Unrealized Loss	-12	-20
Total Estimated Fair Value	653	649
Total Unrealized Loss	($12)	($20)

5_INVESTMENT_SECURITIES_Amorti1

5. INVESTMENT SECURITIES - Amortized cost and estimated fair values (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Within one year, Amortized Cost	$175
After one through five years, Amortized Cost	3,810
After five through ten years, Amortized Cost	11,859
After ten years, Amortized Cost	10,480
Total Amortized Cost	26,324
Within one year, Estimated Fair Value	176
After one through five years, Estimated Fair Value	3,990
After five through ten years, Estimated Fair Value	12,651
After ten years, Estimated Fair Value	11,131
Total Estimated Fair Value	27,948
Equity securities, Amortized Cost	273,871
Equity securities, Estimated Fair Value	281,423
Held-to-Maturity Amortized Cost	802
Held-to-Maturity Estimated Fair Value	863	922
US Government Agencies and Sponsored Agencies
Equity securities, Amortized Cost	247,493
Equity securities, Estimated Fair Value	253,391
Held-to-Maturity Amortized Cost	802	862
Held-to-Maturity Estimated Fair Value	863	922
Equity Securities - Corporate Stock
Equity securities, Amortized Cost	54
Equity securities, Estimated Fair Value	84
Held-to-Maturity Amortized Cost
Held-to-Maturity Estimated Fair Value

6_IMPAIRED_AND_NONPERFORMING_L2

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonaccrual loans (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Total nonperforming assets	$6,321	$7,178
Nonperforming loans and leases to total loans and leases	0.65%	0.63%
Total nonperforming assets to total assets	1.04%	1.16%
Nonaccrual loans and leases that are current to terms (less than 30 days past due)
Total nonperforming assets	90	13
Loans and leases past due 90 days and accruing interest
Total nonperforming assets
Nonaccrual loans and leases that are past due
Total nonperforming assets	1,633	1,640
Other assets
Total nonperforming assets	878	878
Other real estate owned
Total nonperforming assets	$3,720	$4,647

6_IMPAIRED_AND_NONPERFORMING_L3

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonperforming assets (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
With no related allowance recorded: Recorded Investment	$11,027	$11,059
With no related allowance recorded: Unpaid Principal Balance	11,225	11,257
With an allowance recorded: Recorded Investment	13,940	14,061
With an allowance recorded: Unpaid Principal Balance	13,940	14,061
With an allowance recorded: Related Allowance	1,582	1,603
Recorded Investment	24,967	25,120
Unpaid Principal Balance	25,165	25,318
Related Allowance	1,582	1,603
Commercial
With no related allowance recorded: Recorded Investment
With no related allowance recorded: Unpaid Principal Balance
With an allowance recorded: Recorded Investment	745	769
With an allowance recorded: Unpaid Principal Balance	745	769
With an allowance recorded: Related Allowance	344	344
Recorded Investment	745	769
Unpaid Principal Balance	745	769
Related Allowance	344	344
Real estate-commercial
With no related allowance recorded: Recorded Investment	10,652	10,684
With no related allowance recorded: Unpaid Principal Balance	10,850	10,882
With an allowance recorded: Recorded Investment	9,701	9,773
With an allowance recorded: Unpaid Principal Balance	9,701	9,773
With an allowance recorded: Related Allowance	922	949
Recorded Investment	20,353	20,457
Unpaid Principal Balance	20,551	20,655
Related Allowance	922	949
Real estate-multi-family
With no related allowance recorded: Recorded Investment
With no related allowance recorded: Unpaid Principal Balance
With an allowance recorded: Recorded Investment	493	496
With an allowance recorded: Unpaid Principal Balance	493	496
With an allowance recorded: Related Allowance	34	38
Recorded Investment	493	496
Unpaid Principal Balance	493	496
Related Allowance	34	38
Real estate-construction
With no related allowance recorded: Recorded Investment
With no related allowance recorded: Unpaid Principal Balance
With an allowance recorded: Recorded Investment
With an allowance recorded: Unpaid Principal Balance
With an allowance recorded: Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Real Estate Residential
With no related allowance recorded: Recorded Investment	338	338
With no related allowance recorded: Unpaid Principal Balance	338	338
With an allowance recorded: Recorded Investment	2,508	2,524
With an allowance recorded: Unpaid Principal Balance	2,508	2,524
With an allowance recorded: Related Allowance	233	237
Recorded Investment	2,846	2,862
Unpaid Principal Balance	2,846	2,862
Related Allowance	233	237
Leases [Member]
With no related allowance recorded: Recorded Investment
With no related allowance recorded: Unpaid Principal Balance
Agriculture
With an allowance recorded: Recorded Investment	379	381
With an allowance recorded: Unpaid Principal Balance	379	381
With an allowance recorded: Related Allowance	13	13
Recorded Investment	379	381
Unpaid Principal Balance	379	381
Related Allowance	13	13
Consumer
With no related allowance recorded: Recorded Investment	37	37
With no related allowance recorded: Unpaid Principal Balance	37	37
With an allowance recorded: Recorded Investment	114	118
With an allowance recorded: Unpaid Principal Balance	114	118
With an allowance recorded: Related Allowance	36	22
Recorded Investment	151	155
Unpaid Principal Balance	151	155
Related Allowance	$36	$22

6_IMPAIRED_AND_NONPERFORMING_L4

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Impaired loans and leases (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Impaired Loans and Leases	$24,567	$26,082
Interest income recognized on impaired loans and leases	298	322
Commercial
Impaired Loans and Leases	757	1,702
Interest income recognized on impaired loans and leases	2	13
Real estate-commercial
Impaired Loans and Leases	19,928	19,407
Interest income recognized on impaired loans and leases	256	247
Real estate-multi-family
Impaired Loans and Leases	495	1,646
Interest income recognized on impaired loans and leases	5	19
Real estate-construction
Impaired Loans and Leases		247
Interest income recognized on impaired loans and leases		3
Real Estate Residential
Impaired Loans and Leases	2,854	2,916
Interest income recognized on impaired loans and leases	31	38
Agriculture
Impaired Loans and Leases	380
Interest income recognized on impaired loans and leases	3
Consumer
Impaired Loans and Leases	153	164
Interest income recognized on impaired loans and leases	$1	$2

7_TROUBLED_DEBT_RESTRUCTURINGS2

7. TROUBLED DEBT RESTRUCTURINGS (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
	Integer	Integer	Dec. 31, 2014
Modified troubled debt restructurings	$612		$829
Real estate-commercial
Number of loans	2	4
Premodification outstanding recorded investment	517	4,871
Post-modification outstanding recorded investment	517	4,871
Number of Loans, TDR subsequently defaulted	12
Recorded Investment, TDR subsequently defaulted	8,857
Allowance for loan and lease losses troubled debt restructurings	$32	$108

8_ALLOWANCE_FOR_LOAN_AND_LEASE2

8. ALLOWANCE FOR LOAN AND LEASE LOSSES - Internal risk ratings (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Total	$266,702	$263,645
Real estate-commercial
Total	196,069	193,871
Real estate-multi-family
Total	14,023	14,167
Leases
Total	1,131	1,286
Agriculture
Total	2,563	2,882
Commercial
Total	25,133	25,186
Real estate-construction
Total	9,845	8,028
Real Estate Residential
Total	13,263	13,309
Consumer
Total	4,675	4,916
Pass
Total	219,896	216,835
Pass \| Commercial
Total	20,186	20,179
Pass \| Real estate-commercial
Total	165,499	163,091
Pass \| Real estate-multi-family
Total	13,522	13,663
Pass \| Real Estate Construction
Total	4,929	3,327
Pass \| Real Estate Residential
Total	9,352	9,364
Pass \| Leases
Total	1,131	1,286
Pass \| Agriculture
Total	2,185	2,501
Pass \| Consumer
Total	3,092	3,424
Watch
Total	22,739	23,425
Watch \| Commercial
Total	1,220	1,280
Watch \| Real estate-commercial
Total	12,966	13,724
Watch \| Real estate-multi-family
Total	501	504
Watch \| Real Estate Construction
Total	4,589	4,372
Watch \| Real Estate Residential
Total	2,324	2,504
Watch \| Leases
Total
Watch \| Agriculture
Total
Watch \| Consumer
Total	1,139	1,041
Special mention
Total	16,006	15,265
Special mention \| Commercial
Total	148	101
Special mention \| Real estate-commercial
Total	14,133	13,583
Special mention \| Real estate-multi-family
Total
Special mention \| Real Estate Construction
Total	327	329
Special mention \| Real Estate Residential
Total	752	603
Special mention \| Leases
Total
Special mention \| Agriculture
Total	378	381
Special mention \| Consumer
Total	268	268
Substandard
Total	8,061	8,120
Substandard \| Commercial
Total	3,579	3,626
Substandard \| Real estate-commercial
Total	3,471	3,473
Substandard \| Real estate-multi-family
Total
Substandard \| Real Estate Construction
Total
Substandard \| Real Estate Residential
Total	835	838
Substandard \| Leases
Total
Substandard \| Agriculture
Total
Substandard \| Consumer
Total	176	183
Doubtful or loss
Total
Doubtful or loss \| Commercial
Total
Doubtful or loss \| Real estate-commercial
Total
Doubtful or loss \| Real estate-multi-family
Total
Doubtful or loss \| Real Estate Construction
Total
Doubtful or loss \| Real Estate Residential
Total
Doubtful or loss \| Leases
Total
Doubtful or loss \| Agriculture
Total
Doubtful or loss \| Consumer
Total

8_ALLOWANCE_FOR_LOAN_AND_LEASE3

8. ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance Roll-forward (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Allowance for Loan and Lease Losses Beginning balance	$5,301	$5,346
Provision for loan losses
Loans charged off	-2	-1
Recoveries	9	28
Allowance for Loan and Lease Losses Ending balance	5,308	5,373
Allowance related to: Loans individually evaluated for impairment	1,582		1,603
Allowance related to: Loans collectively evaluated for impairment	3,726		3,698
Loans	266,702		263,645
Loans individually evaluated for impairment	24,967		25,120
Loans collectively evaluated for impairment	241,735		238,525
Commercial
Allowance for Loan and Lease Losses Beginning balance	1,430	885
Provision for loan losses	-33	-124
Loans charged off
Recoveries	6	20
Allowance for Loan and Lease Losses Ending balance	1,403	781
Allowance related to: Loans individually evaluated for impairment	343		344
Allowance related to: Loans collectively evaluated for impairment	1,060		1,086
Loans	25,133		25,186
Loans individually evaluated for impairment	745		769
Loans collectively evaluated for impairment	24,388		24,417
Real estate-commercial
Allowance for Loan and Lease Losses Beginning balance	2,317	2,401
Provision for loan losses	-34	74
Loans charged off
Recoveries	1	1
Allowance for Loan and Lease Losses Ending balance	2,284	2,476
Allowance related to: Loans individually evaluated for impairment	922		949
Allowance related to: Loans collectively evaluated for impairment	1,362		1,368
Loans	196,069		193,871
Loans individually evaluated for impairment	20,353		20,457
Loans collectively evaluated for impairment	175,716		173,414
Real estate-multi-family
Allowance for Loan and Lease Losses Beginning balance	130	242
Provision for loan losses	-10	-1
Loans charged off
Recoveries
Allowance for Loan and Lease Losses Ending balance	120	241
Allowance related to: Loans individually evaluated for impairment	34		38
Allowance related to: Loans collectively evaluated for impairment	86		92
Loans	14,023		14,167
Loans individually evaluated for impairment	493		496
Loans collectively evaluated for impairment	13,530		13,671
Real estate-construction
Allowance for Loan and Lease Losses Beginning balance	583	542
Provision for loan losses	97	-58
Loans charged off
Recoveries		1
Allowance for Loan and Lease Losses Ending balance	680	485
Allowance related to: Loans individually evaluated for impairment
Allowance related to: Loans collectively evaluated for impairment	680		583
Loans	9,845		8,028
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	9,845		8,028
Real Estate Residential
Allowance for Loan and Lease Losses Beginning balance	399	825
Provision for loan losses	-7	55
Loans charged off
Recoveries		3
Allowance for Loan and Lease Losses Ending balance	392	883
Allowance related to: Loans individually evaluated for impairment	234		237
Allowance related to: Loans collectively evaluated for impairment	158		162
Loans	13,263		13,309
Loans individually evaluated for impairment	2,847		2,862
Loans collectively evaluated for impairment	10,416		10,447
Leases
Allowance for Loan and Lease Losses Beginning balance	2	4
Provision for loan losses	-1	-4
Loans charged off
Recoveries		3
Allowance for Loan and Lease Losses Ending balance	1	3
Allowance related to: Loans individually evaluated for impairment
Allowance related to: Loans collectively evaluated for impairment	1		2
Loans	1,131		1,286
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	1,131		1,286
Agriculture
Allowance for Loan and Lease Losses Beginning balance	62	80
Provision for loan losses	-7	-7
Loans charged off
Recoveries
Allowance for Loan and Lease Losses Ending balance	55	73
Allowance related to: Loans individually evaluated for impairment	13		13
Allowance related to: Loans collectively evaluated for impairment	42		49
Loans	2,563		2,882
Loans individually evaluated for impairment	379		381
Loans collectively evaluated for impairment	2,184		2,501
Consumer
Allowance for Loan and Lease Losses Beginning balance	124	161
Provision for loan losses	8	-4
Loans charged off	-2	-1
Recoveries	2
Allowance for Loan and Lease Losses Ending balance	132	156
Allowance related to: Loans individually evaluated for impairment	36		22
Allowance related to: Loans collectively evaluated for impairment	96		102
Loans	4,675		4,916
Loans individually evaluated for impairment	150		155
Loans collectively evaluated for impairment	4,525		4,761
Unallocated
Allowance for Loan and Lease Losses Beginning balance	254	206
Provision for loan losses	-13	69
Loans charged off
Recoveries
Allowance for Loan and Lease Losses Ending balance	241	275
Allowance related to: Loans individually evaluated for impairment
Allowance related to: Loans collectively evaluated for impairment	241		254
Loans
Loans individually evaluated for impairment
Loans collectively evaluated for impairment

8_ALLOWANCE_FOR_LOAN_AND_LEASE4

8. ALLOWANCE FOR LOAN AND LEASE LOSSES - Aging analysis (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
30-59 Days Past Due	$997	$1,155
60-89 Days Past Due	162
Past Due Greater Than 90 Days	1,085	1,511
Total Past Due	2,244	2,666
Current	264,458	260,979
Total Loans	266,702	263,645
Past Due Greater Than 90 Days and Accruing
Nonaccrual	1,723	1,653
Commercial
30-59 Days Past Due	38	513
60-89 Days Past Due
Past Due Greater Than 90 Days	644	666
Total Past Due	682	1,179
Current	24,451	24,007
Total Loans	25,133	25,186
Past Due Greater Than 90 Days and Accruing
Nonaccrual	644	666
Real estate-commercial
30-59 Days Past Due	866	507
60-89 Days Past Due
Past Due Greater Than 90 Days	103	507
Total Past Due	969	1,014
Current	195,100	192,857
Total Loans	196,069	193,871
Past Due Greater Than 90 Days and Accruing
Nonaccrual	605	507
Real estate-multi-family
30-59 Days Past Due
60-89 Days Past Due
Past Due Greater Than 90 Days
Total Past Due
Current	14,023	14,167
Total Loans	14,023	14,167
Past Due Greater Than 90 Days and Accruing
Nonaccrual
Real estate-construction
30-59 Days Past Due	93
60-89 Days Past Due
Past Due Greater Than 90 Days
Total Past Due	93
Current	9,752	8,028
Total Loans	9,845	8,028
Past Due Greater Than 90 Days and Accruing
Nonaccrual
Real Estate Residential
30-59 Days Past Due
60-89 Days Past Due
Past Due Greater Than 90 Days		338
Total Past Due		338
Current	13,263	12,971
Total Loans	13,263	13,309
Past Due Greater Than 90 Days and Accruing
Nonaccrual	338	338
Leases
30-59 Days Past Due
60-89 Days Past Due
Past Due Greater Than 90 Days
Total Past Due
Current	1,131	1,286
Total Loans	1,131	1,286
Past Due Greater Than 90 Days and Accruing
Nonaccrual
Agriculture
30-59 Days Past Due
60-89 Days Past Due
Past Due Greater Than 90 Days
Total Past Due
Current	2,563	2,882
Total Loans	2,563	2,882
Past Due Greater Than 90 Days and Accruing
Nonaccrual
Consumer
30-59 Days Past Due		135
60-89 Days Past Due	162
Past Due Greater Than 90 Days	338
Total Past Due	500	135
Current	4,175	4,781
Total Loans	4,675	4,916
Past Due Greater Than 90 Days and Accruing
Nonaccrual	$136	$142

9_BORROWING_ARRANGEMENTS_Detai

9. BORROWING ARRANGEMENTS (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Borrowing Arrangements
Unsecured short-term borrowing arrangements with two of its correspondent banks	$17,000
FHLB advances	11,000	11,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Minimum	0.45%	0.24%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Maximum	1.91%	1.91%
Remaining amounts available under the borrowing arrangement with the FHLB	74,948	67,228
Secured borrowing agreement with the Federal Reserve Bank of San Francisco	$17,618	$17,335

11_FAIR_VALUE_MEASUREMENTS_Car

11. FAIR VALUE MEASUREMENTS - Carrying amounts and estimated fair values (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks	$17,047	$22,449
Interest-bearing deposits in banks	1,000	1,000
Available-for-sale securities	281,423	289,064
Held-to-maturity securities	863	922
FHLB stock	3,686	3,686
Net loans and leases:	266,753	261,421
Accrued interest receivable	1,809	1,858
Financial liabilities:
Noninterest-bearing	158,590	155,698
Savings	59,951	58,820
Money market	132,083	147,625
NOW accounts	62,474	60,862
Time, $100,000 or more	670,258	66,203
Other time	21,772	22,282
Short-term borrowings	3,500	3,500
Long-term borrowings	7,594	7,567
Accrued interest payable	60	59
Level 1
Financial assets:
Cash and due from banks	17,047	22,449
Interest-bearing deposits in banks
Available-for-sale securities	35	28
Held-to-maturity securities
Net loans and leases:
Accrued interest receivable
Financial liabilities:
Noninterest-bearing	158,950	155,698
Savings	59,951	58,820
Money market	132,083	147,625
NOW accounts	62,474	60,862
Time, $100,000 or more
Other time
Short-term borrowings	3,500	3,500
Long-term borrowings
Accrued interest payable
Level 2
Financial assets:
Cash and due from banks
Interest-bearing deposits in banks	999	1,002
Available-for-sale securities	281,388	289,036
Held-to-maturity securities	863	922
Net loans and leases:
Accrued interest receivable	1,067	1,150
Financial liabilities:
Noninterest-bearing
Savings
Money market
NOW accounts
Time, $100,000 or more	67,058	66,203
Other time	21,772	22,282
Short-term borrowings
Long-term borrowings	7,594	7,567
Accrued interest payable	60	59
Level 3
Financial assets:
Cash and due from banks
Interest-bearing deposits in banks
Available-for-sale securities
Held-to-maturity securities
Net loans and leases:	266,753	261,421
Accrued interest receivable	742	708
Financial liabilities:
Noninterest-bearing
Savings
Money market
NOW accounts
Time, $100,000 or more
Other time
Short-term borrowings
Long-term borrowings
Accrued interest payable
Carrying Amount
Financial assets:
Cash and due from banks	17,047	22,449
Interest-bearing deposits in banks	1,000	1,000
Available-for-sale securities	281,423	289,064
Held-to-maturity securities	802	862
FHLB stock	3,686	3,686
Net loans and leases:	261,112	258,057
Accrued interest receivable	1,809	1,858
Financial liabilities:
Noninterest-bearing	158,950	155,698
Savings	59,951	58,820
Money market	132,083	147,625
NOW accounts	62,474	60,862
Time, $100,000 or more	66,467	65,569
Other time	21,594	22,119
Short-term borrowings	3,500	3,500
Long-term borrowings	7,500	7,500
Accrued interest payable	$60	$59

11_FAIR_VALUE_MEASUREMENTS_Ass

11. FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on recurring and non-recurring basis (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Recurring
Impaired loans:
Total gain (losses)
Non Recurring
Impaired loans:
Total gain (losses)	76	80
US Government Agencies and Sponsored Agencies
Impaired loans:
Total gain (losses)
US Government Agencies and Sponsored Agencies \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	253,391	261,115
US Government Agencies and Sponsored Agencies \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring
US Government Agencies and Sponsored Agencies \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	253,391	261,115
US Government Agencies and Sponsored Agencies \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Obligations of states and political subdivisions
Impaired loans:
Total gain (losses)
Obligations of states and political subdivisions \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	26,360	26,289
Obligations of states and political subdivisions \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring
Obligations of states and political subdivisions \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	26,360	26,289
Obligations of states and political subdivisions \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Corporate bonds
Impaired loans:
Total gain (losses)
Corporate bonds \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	1,588
Corporate bonds \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring
Corporate bonds \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	1,588
Corporate bonds \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Corporate stock
Impaired loans:
Total gain (losses)
Corporate stock \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	84	77
Corporate stock \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	35	28
Corporate stock \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	49	49
Corporate stock \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Commercial
Impaired loans:
Total gain (losses)		14
Commercial \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	644	666
Commercial \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Commercial \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Commercial \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	644	666
Real estate-commercial
Impaired loans:
Total gain (losses)
Real estate-commercial \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	304	286
Real estate-commercial \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Real estate-commercial \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Real estate-commercial \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,720	286
Other real estate owned
Impaired loans:
Total gain (losses)	76	66
Other real estate owned \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,720	4,404
Other real estate owned \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Other real estate owned \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Other real estate owned \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,720	4,404
Corporate Debt securities
Impaired loans:
Total gain (losses)
Corporate Debt securities \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring		1,583
Corporate Debt securities \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring
Corporate Debt securities \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring		1,583
Corporate Debt securities \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Recurring \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	281,423	289,064
Recurring \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	35	28
Recurring \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	281,388	289,036
Recurring \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Non Recurring \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	4,668	5,356
Non Recurring \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Non Recurring \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Non Recurring \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	$4,668	$5,356