Macatawa Bank (MCBC) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MACATAWA BANK CORP
Entity Central Index Key	1,053,584
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,922,289
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 30,045	$ 29,104
Federal funds sold and other short -term investments	94,888	152,372
Cash and cash equivalents	124,933	181,476
Interest-bearing time deposits in other financial institutions	0	20,000
Securities available for sale, at fair value	173,580	166,815
Securities held to maturity (fair value 2016 - $50,803 and 2015 - $52,837)	49,373	51,856
Federal Home Loan Bank (FHLB) stock	11,558	11,558
Loans held for sale, at fair value	1,138	2,776
Total loans	1,211,844	1,197,932
Allowance for loan losses	(16,959)	(17,081)
Net loans	1,194,885	1,180,851
Premises and equipment - net	50,639	51,456
Accrued interest receivable	3,657	3,622
Bank-owned life insurance	28,942	28,858
Other real estate owned - net	14,066	17,572
Net deferred tax asset	8,422	8,819
Other assets	5,354	3,984
Total assets	1,666,547	1,729,643
Deposits
Noninterest-bearing	451,644	477,032
Interest-bearing	903,434	958,480
Total deposits	1,355,078	1,435,512
Other borrowed funds	104,840	96,169
Long-term debt	41,238	41,238
Accrued expenses and other liabilities	6,929	4,747
Total liabilities	1,508,085	1,577,666
Commitments and contingent liabilities
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 33,922,289 and 33,925,113 shares issued and outstanding at June 30, 2016 and December 31, 2015	216,799	216,540
Retained deficit	(59,695)	(64,910)
Accumulated other comprehensive income	1,358	347
Total shareholders' equity	158,462	151,977
Total liabilities and shareholders' equity	$ 1,666,547	$ 1,729,643

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Securities held to maturity fair value	$ 50,803	$ 52,837
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	33,922,289	33,925,113
Common stock, shares outstanding (in shares)	33,922,289	33,925,113

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income
Loans, including fees	$ 11,634	$ 11,152	$ 23,390	$ 22,115
Securities
Taxable	565	501	1,115	1,002
Tax-exempt	441	376	874	720
FHLB Stock	122	111	246	228
Federal funds sold and other short-term investments	111	98	256	184
Total interest income	12,873	12,238	25,881	24,249
Interest expense
Deposits	439	610	902	1,229
Other borrowings	458	452	900	867
Long-term debt	368	331	733	656
Total interest expense	1,265	1,393	2,535	2,752
Net interest income	11,608	10,845	23,346	21,497
Provision for loan losses	(750)	(500)	(850)	(1,500)
Net interest income after provision for loan losses	12,358	11,345	24,196	22,997
Noninterest income
Service charges and fees	1,112	1,097	2,159	2,098
Net gains on mortgage loans	572	821	1,060	1,544
Trust fees	788	723	1,496	1,457
ATM and debit card fees	1,257	1,219	2,443	2,329
Gain on sale of securities	10	0	99	83
Bank owned life insurance ("BOLI") income	158	171	602	333
Other	639	481	1,285	963
Total noninterest income	4,536	4,512	9,144	8,807
Noninterest expense
Salaries and benefits	6,168	6,134	12,355	12,316
Occupancy of premises	901	903	1,883	1,875
Furniture and equipment	839	813	1,704	1,596
Legal and professional	188	191	347	431
Marketing and promotion	275	263	550	568
Data processing	688	648	1,347	1,226
FDIC assessment	220	289	472	571
Interchange and other card expense	308	285	594	560
Bond and D&O Insurance	131	146	263	292
Net losses (gains) on repossessed and foreclosed properties	258	(31)	294	420
Administration and disposition of problem assets	202	284	577	660
Other	1,292	1,297	2,635	2,569
Total noninterest expenses	11,470	11,222	23,021	23,084
Income before income tax	5,424	4,635	10,319	8,720
Income tax expense	1,679	1,420	3,079	2,665
Net income	$ 3,745	$ 3,215	$ 7,240	$ 6,055
Basic earnings per common share (in dollars per share)	$ 0.11	$ 0.09	$ 0.21	$ 0.18
Diluted earnings per common share (in dollars per share)	0.11	0.09	0.21	0.18
Cash dividends per common share (in dollars per share)	$ 0.03	$ 0.03	$ 0.06	$ 0.05

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract]
Net income	$ 3,745	$ 3,215	$ 7,240	$ 6,055
Unrealized gains (losses):
Net change in unrealized gains (losses) on securities available for sale	590	(1,214)	1,654	67
Tax effect	(206)	425	(579)	(24)
Net change in unrealized gains (losses) on securities available for sale, net of tax	384	(789)	1,075	43
Less: reclassification adjustments:
Reclassification for gains included in net income	10	0	99	83
Tax effect	(3)	0	(35)	(29)
Reclassification for gains included in net income, net of tax	7	0	64	54
Other comprehensive income (loss), net of tax	377	(789)	1,011	(11)
Comprehensive income	$ 4,122	$ 2,426	$ 8,251	$ 6,044

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2014	$ 216,460	$ (74,002)	$ 61	$ 142,519
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	6,055	0	6,055
Cash dividends	0	(1,682)	0	(1,682)
Net change in unrealized gain on securities available for sale, net of tax	0	0	(11)	(11)
Tax effect of expired common stock warrants	(280)	0	0	(280)
Stock compensation expense	242	0	0	242
Balance at Jun. 30, 2015	216,422	(69,629)	50	146,843
Balance at Dec. 31, 2015	216,540	(64,910)	347	151,977
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	7,240	0	7,240
Cash dividends	0	(2,025)	0	(2,025)
Repurchase of 2,824 shares for taxes withheld on vested restricted stock	(19)	0	0	(19)
Net change in unrealized gain on securities available for sale, net of tax	0	0	1,011	1,011
Stock compensation expense	278	0	0	278
Balance at Jun. 30, 2016	$ 216,799	$ (59,695)	$ 1,358	$ 158,462

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend per share (in dollars per share) | $ / shares	$ 0.06
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares) | shares	2,824

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income	$ 7,240	$ 6,055
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	1,403	1,522
Stock compensation expense	278	242
Tax effect of expired common stock warrants	0	(280)
Provision for loan losses	(850)	(1,500)
Origination of loans for sale	(37,891)	(51,416)
Proceeds from sales of loans originated for sale	40,589	50,193
Net gains on mortgage loans	(1,060)	(1,544)
Gain on sales of securities	(99)	(83)
Write-down of other real estate	555	624
Net (gain) loss on sales of other real estate	(260)	(205)
Change in net deferred tax asset	(147)	1,336
Change in accrued interest receivable and other assets	(1,405)	(1,702)
Earnings in bank-owned life insurance	(602)	(333)
Change in accrued expenses and other liabilities	2,182	(703)
Net cash from operating activities	9,933	2,206
Cash flows from investing activities
Loan originations and payments, net	(13,286)	(12,264)
Change in interest-bearing deposits in other financial institutions	20,000	0
Purchases of securities available for sale	(43,570)	(19,604)
Purchases of securities held to maturity	(1,144)	(11,826)
Purchase FHLB stock	0	(320)
Proceeds from:
Maturities and calls of securities	30,480	8,944
Sales of securities available for sale	9,648	12,063
Principal paydowns on securities	1,873	1,952
Sales of other real estate	3,313	2,962
Death benefit from bank-owned life insurance	518	0
Additions to premises and equipment	(501)	(529)
Net cash from investing activities	7,331	(18,622)
Cash flows from financing activities
Change in deposits	(80,434)	21,488
Repayments of other borrowed funds	(1,329)	(1,271)
Proceeds from other borrowed funds	10,000	10,000
Cash dividends paid	(2,025)	(1,682)
Repurchase of shares for taxes withheld on vested restricted stock	(19)	0
Net cash from financing activities	(73,807)	28,535
Net change in cash and cash equivalents	(56,543)	12,119
Cash and cash equivalents at beginning of period	181,476	129,455
Cash and cash equivalents at end of period	124,933	141,574
Supplemental cash flow information
Interest paid	2,536	2,758
Income taxes paid	3,200	3,675
Supplemental noncash disclosures:
Transfers from loans to other real estate	102	1,442
Security settlement	$ 0	$ (330)

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. Basis of Presentation: Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At June 30, 2016, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Foreclosed Assets Income Taxes We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense. Derivatives Reclassifications: Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards (a consensus of the FASB Emerging Issues Task Force) Liabilities—Extinguishments of Liabilities FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2016
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 82,677 443 (65 ) $ 83,055 U.S. Agency MBS and CMOs 12,564 101 (2 ) 12,663 Tax-exempt state and municipal bonds 34,114 1,082 (3 ) 35,193 Taxable state and municipal bonds 27,850 431 (12 ) 28,269 Corporate bonds and other debt securities 12,786 92 (3 ) 12,875 Other equity securities 1,500 25 --- 1,525 $ 171,491 $ 2,174 $ (85 ) $ 173,580 Held to Maturity Tax-exempt state and municipal bonds $ 49,373 $ 1,430 $ --- $ 50,803 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 48 (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837 Proceeds from the sale of securities available for sale were $230,000 in the three month period ended June 30, 2016 and $9.6 million in the six month period ended June 30, 2016 resulting in net gains on sale of $10,000 and $99,000, respectively, as reported in the Consolidated Statements of Income. This resulted in reclassifications of $10,000 ($7,000 net of tax) and $99,000 ($64,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income in the three and six month periods ended June 30, 2016. There were no sales of securities in the three month period ended June 30, 2015. Proceeds from the sale of securities available for sale were $12.1 million in the six month period ended June 30, 2015 resulting in net gains on sale of $83,000, as reported in the Consolidated Statements of Income. This resulted in reclassifications of $83,000 ($54,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income in the six month period ended June 30, 2015. Contractual maturities of debt securities at June 30, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 13,397 $ 13,421 $ 10,876 $ 10,943 Due from one to five years 9,221 9,444 94,834 95,745 Due from five to ten years 14,555 15,497 51,059 52,040 Due after ten years 12,200 12,441 13,222 13,327 $ 49,373 $ 50,803 $ 169,991 $ 172,055 Securities with unrealized losses at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 23,483 $ (61 ) $ 3,092 $ (4 ) $ 26,575 $ (65 ) U.S. Agency MBS and CMOs 2,301 (1 ) 1,097 (1 ) 3,398 (2 ) Tax-exempt state and municipal bonds 836 (3 ) --- --- 836 (3 ) Taxable state and municipal bonds 1,488 (12 ) --- --- 1,488 (12 ) Corporate bonds and other debt securities 1,416 (3 ) --- --- 1,416 (3 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 29,524 $ (80 ) $ 4,189 $ (5 ) $ 33,713 $ (85 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 ) Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during the three and six month periods ended June 30, 2016 and 2015. Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at June 30, 2016 and December 31, 2015.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2016
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): June 30, 2016 December 31, 2015 Commercial and industrial $ 381,058 $ 377,298 Commercial real estate: Residential developed 13,702 10,448 Unsecured to residential developers 7,423 7,372 Vacant and unimproved 38,694 42,881 Commercial development 652 559 Residential improved 70,026 67,922 Commercial improved 291,926 289,651 Manufacturing and industrial 90,952 89,839 Total commercial real estate 513,375 508,672 Consumer Residential mortgage 221,636 209,972 Unsecured 540 637 Home equity 87,145 92,716 Other secured 8,090 8,637 Total consumer 317,411 311,962 Total loans 1,211,844 1,197,932 Allowance for loan losses (16,959 ) (17,081 ) $ 1,194,885 $ 1,180,851 Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,945 8,449 $ 3,699 $ 36 $ 17,129 Charge-offs --- --- (36 ) --- (36 ) Recoveries 23 557 36 --- 616 Provision for loan losses (8 ) (941 ) 195 4 (750 ) Ending Balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Three months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 Charge-offs (173 ) --- (29 ) --- (202 ) Recoveries 44 117 42 --- 203 Provision for loan losses 336 (748 ) (89 ) 1 (500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Six months ended June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (112 ) --- (112 ) Recoveries 72 678 90 840 Provision for loan losses 62 (1,070 ) 155 3 (850 ) Ending Balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Six months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (173 ) --- (107 ) --- (280 ) Recoveries 128 725 146 --- 999 Provision for loan losses 253 (1,476 ) (254 ) (23 ) (1,500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 569 $ 446 $ 788 $ --- $ 1,803 Collectively evaluated for impairment 4,391 7,619 3,106 40 15,156 Total ending allowance balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Loans: Individually reviewed for impairment $ 4,178 $ 13,101 $ 12,798 $ --- $ 30,077 Collectively evaluated for impairment 376,880 500,274 304,613 --- 1,181,767 Total ending loans balance $ 381,058 $ 513,375 $ 317,411 $ --- $ 1,211,844 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932 The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2016 (dollars in thousands): June 30, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 134 $ 134 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 205 205 --- Commercial development --- --- --- Residential improved 80 80 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 285 285 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 419 $ 419 $ --- With an allowance recorded: Commercial and industrial $ 4,044 $ 4,044 $ 569 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 226 226 6 Commercial development 191 191 6 Residential improved 5,450 5,450 265 Commercial improved 6,712 6,712 160 Manufacturing and industrial 237 237 9 12,816 12,816 446 Consumer: Residential mortgage 8,320 8,320 512 Unsecured --- --- --- Home equity 4,478 4,478 276 Other secured --- --- --- 12,798 12,798 788 Total with an allowance recorded $ 29,658 $ 29,658 $ 1,803 Total $ 30,077 $ 30,077 $ 1,803 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 Total with an allowance recorded $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938 The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Average of impaired loans during the period: Commercial and industrial $ 6,110 $ 7,084 $ 7,187 $ 8,394 Commercial real estate: Residential developed --- 682 --- 810 Unsecured to residential developers --- --- --- --- Vacant and unimproved 436 1,416 441 1,453 Commercial development 192 195 192 196 Residential improved 5,488 7,018 5,516 7,340 Commercial improved 6,817 16,363 8,177 16,561 Manufacturing and industrial 237 2,650 238 2,678 Consumer 12,842 14,583 12,991 14,683 Interest income recognized during impairment: Commercial and industrial 239 292 537 618 Commercial real estate 143 336 344 692 Consumer 116 128 238 264 Cash-basis interest income recognized Commercial and industrial 262 292 551 620 Commercial real estate 144 334 344 685 Consumer 113 128 235 267 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 26 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 103 --- Commercial improved 139 --- Manufacturing and industrial --- --- 291 --- Consumer: Residential mortgage 2 --- Unsecured 22 --- Home equity 9 --- Other secured --- --- 33 --- Total $ 350 $ --- December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17 The following table presents the aging of the recorded investment in past due loans as of June 30, 2016 and December 31, 2015 by class of loans (dollars in thousands): June 30, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 220 $ --- $ 220 $ 380,838 $ 381,058 Commercial real estate: Residential developed --- --- --- 13,702 13,702 Unsecured to residential developers --- --- --- 7,423 7,423 Vacant and unimproved --- --- --- 38,694 38,694 Commercial development --- 49 49 603 652 Residential improved 98 5 103 69,923 70,026 Commercial improved 342 --- 342 291,584 291,926 Manufacturing and industrial --- --- --- 90,952 90,952 440 54 494 512,881 513,375 Consumer: Residential mortgage 104 --- 104 221,532 221,636 Unsecured --- --- --- 540 540 Home equity 161 --- 161 86,984 87,145 Other secured --- --- --- 8,090 8,090 265 --- 265 317,146 317,411 Total $ 925 $ 54 $ 979 $ 1,210,865 $ 1,211,844 December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932 The Company had allocated $1,803,000 and $1,938,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of June 30, 2016 and December 31, 2015, respectively. These loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. In situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding troubled debt restructurings as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 31 $ 4,178 33 $ 7,611 Commercial real estate 52 13,291 56 17,871 Consumer 120 13,072 124 13,570 203 $ 30,541 213 $ 39,052 The following table presents information related to accruing troubled debt restructurings as of June 30, 2016 and December 31, 2015. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): June 30, 2016 December 31, 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 28,203 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 2,063 4,784 $ 30,266 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the three month periods ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 39 --- 2 $ 39 $ --- Three Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 72 --- 2 $ 72 $ --- The following tables present information regarding troubled debt restructurings executed during the six month periods ended June 30, 2016 and 2015 (dollars in thousands): Six Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 6 277 --- 6 $ 277 $ --- Six Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 31 753 --- 33 $ 1,203 $ --- According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. The table below presents, by class, information regarding troubled debt restructured loans which had payment defaults during the three and six month periods ended June 30, 2016 and 2015 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss As of June 30, 2016 and December 31, 2015, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): June 30, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 18,366 $ 114,391 $ 230,736 $ 15,426 $ 2,113 $ 26 $ --- $ 381,058 Commercial real estate: Residential developed --- --- 2,572 8,195 2,745 190 --- --- 13,702 Unsecured to residential developers --- --- --- 7,423 --- --- --- --- 7,423 Vacant and unimproved --- --- 16,789 17,610 4,295 --- --- --- 38,694 Commercial development --- --- --- 412 --- 191 49 --- 652 Residential improved --- --- 5,975 58,905 3,314 1,729 103 --- 70,026 Commercial improved --- 1,837 64,675 214,197 9,466 1,612 139 --- 291,926 Manufacturing & industrial --- 1,872 31,570 54,745 2,765 --- --- --- 90,952 $ --- $ 22,075 $ 235,972 $ 592,223 $ 38,011 $ 5,835 $ 317 $ --- $ 894,433 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970 Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): June 30, 2016 December 31, 2015 Not classified as impaired $ 1,083 $ 1,986 Classified as impaired 5,069 8,782 Total commercial loans classified substandard or worse $ 6,152 $ 10,768 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): June 30, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 221,636 $ 540 $ 87,145 $ 8,090 Nonperforming --- --- --- --- Total $ 221,636 $ 540 $ 87,145 $ 8,090 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2016
OTHER REAL ESTATE OWNED [Abstract]
OTHER REAL ESTATE OWNED	NOTE 4 – OTHER REAL ESTATE OWNED Other real estate owned was as follows (dollars in thousands): Six Months Ended June 30, 2016 Year Ended December 31, 2015 Six Months Ended June 30, 2015 Beginning balance $ 28,377 $ 43,071 $ 43,071 Additions, transfers from loans 102 2,520 1,442 Proceeds from sales of other real estate owned (3,313 ) (11,540 ) (2,962 ) Valuation allowance reversal upon sale (334 ) (4,748 ) (427 ) Gain (loss) on sales of other real estate owned 260 (926 ) 205 25,092 28,377 41,329 Less: valuation allowance (11,026 ) (10,805 ) (15,026 ) Ending balance $ 14,066 $ 17,572 $ 26,303 Activity in the valuation allowance was as follows (dollars in thousands): Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Beginning balance $ 10,805 $ 14,829 Additions charged to expense 555 624 Reversals upon sale (334 ) (427 ) Ending balance $ 11,026 $ 15,026

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2016
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Investment Securities: Loans Held for Sale: Impaired Loans Other Real Estate Owned Interest Rate Swaps: For interest rate swap agreements, we measure fair value utilizing pricing provided by a third-party pricing source that that uses market observable inputs, such as forecasted yield curves, and other unobservable inputs and accordingly, interest rate swap agreements are classified as Level 3. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 U.S. Treasury and federal agency securities $ 83,055 $ --- $ 83,055 $ --- U.S. Agency MBS and CMOs 12,663 --- 12,663 --- Tax-exempt state and municipal bonds 35,193 --- 35,193 --- Taxable state and municipal bonds 28,269 --- 28,269 --- Corporate bonds and other debt securities 12,875 --- 12,875 --- Other equity securities 1,525 --- 1,525 --- Loans held for sale 1,138 --- 1,138 --- Interest rate swaps 1,360 --- --- 1,360 Interest rate swaps (1,360 ) --- --- (1,360 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Impaired loans $ 3,764 $ --- $ --- $ 3,764 Other real estate owned 11,165 --- --- 11,165 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) June 30, 2016 Impaired Loans $ 3,764 Sales comparison approach Adjustment for differences between comparable sales 10.0 to 22.0 Income approach Capitalization rate 9.0 to 11.0 Other real estate owned 11,165 Sales comparison approach Adjustment for differences between comparable sales 10.0 to 35.0 Income approach Capitalization rate 9.5 to 11.0 Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at June 30, 2016 and December 31, 2015 (dollars in thousands): Level in June 30, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 30,045 30,045 $ 29,104 29,104 Cash equivalents Level 2 94,888 94,888 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 49,373 50,803 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,191,121 1,189,597 1,187,423 1,177,527 Bank owned life insurance Level 3 28,942 28,942 28,858 28,858 Accrued interest receivable Level 2 3,657 3,657 3,622 3,622 Financial liabilities Deposits Level 2 (1,355,078 ) (1,355,040 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (104,840 ) (105,928 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (35,985 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (272 ) (272 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- --- The methods and assumptions used to estimate fair value are described as follows. Carrying amount is the estimated fair value for cash and cash equivalents, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans, interest-bearing time deposits in other financial institutions, or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2016
DEPOSITS [Abstract]
DEPOSITS	NOTE 6 – DEPOSITS Deposits are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Noninterest-bearing demand $ 451,644 $ 477,032 Interest bearing demand 308,835 358,306 Savings and money market accounts 515,515 512,980 Certificates of deposit 79,084 87,194 $ 1,355,078 $ 1,435,512 Approximately $16.8 million and $17.1 million in certificates of deposit were in denominations of $250,000 or more at June 30, 2016 and December 31, 2015, respectively.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	6 Months Ended
	Jun. 30, 2016
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 7 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate June 30, 2016 Single maturity fixed rate advances $ 100,000 August 2016 to April 2021 1.66 % Amortizable mortgage advances 4,840 March 2018 to July 2018 3.76 % $ 104,840 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169 Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $434,930,000 and $440,660,000 under a blanket lien arrangement at June 30, 2016 and December 31, 2015, respectively. Scheduled repayments of FHLB advances as of June 30, 2016 were as follows (in thousands): 2016 $ 20,667 2017 2,055 2018 52,118 2019 10,000 2020 10,000 Thereafter 10,000 $ 104,840 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at June 30, 2016 and December 31, 2015, and the Company had approximately $19.5 million and $18.5 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $22.4 million and $21.6 million at June 30, 2016 and December 31, 2015, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2016
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 8 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and six month periods ended June 30, 2016 and 2015 are as follows (dollars in thousands, except per share data): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Net income available to common shares $ 3,745 $ 3,215 $ 7,240 $ 6,055 Weighted average shares outstanding, including participating stock awards - 33,922,506 33,866,789 33,923,810 33,866,789 Dilutive potential common shares: Stock options --- --- --- --- Stock warrants --- --- --- --- Weighted average shares outstanding - 33,922,506 33,866,789 33,923,810 33,866,789 Basic earnings per common share $ 0.11 $ 0.09 $ 0.21 $ 0.18 Diluted earnings per common share $ 0.11 $ 0.09 $ 0.21 $ 0.18 Stock options for 100,896 shares of common stock for both the three and six month periods ended June 30, 2016 were not considered in computing diluted earnings per share because they were antidilutive. Stock options for 258,361 shares of common stock for both the three and six month periods ended June 30, 2015 were not considered in computing diluted earnings per share because they were antidilutive.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	6 Months Ended
	Jun. 30, 2016
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Current $ 1,757 $ 676 $ 3,226 $ 1,329 Deferred (78 ) 744 (147 ) 1,336 $ 1,679 $ 1,420 $ 3,079 $ 2,665 The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Statutory rate 35 % 35 % 35 % 35 % Statutory rate applied to income before taxes $ 1,899 $ 1,622 $ 3,612 $ 3,052 Add (deduct) Tax-exempt interest income (149 ) (127 ) (297 ) (244 ) Bank-owned life insurance (56 ) (60 ) (211 ) (117 ) Other, net (15 ) (15 ) (25 ) (26 ) $ 1,679 $ 1,420 $ 3,079 $ 2,665 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. No valuation allowance was necessary at June 30, 2016 or December 31, 2015. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): June 30, 2016 December 31, 2015 Deferred tax assets Allowance for loan losses $ 5,936 $ 5,978 Nonaccrual loan interest 800 850 Valuation allowance on other real estate owned 3,859 3,782 Unrealized loss on securities available for sale --- --- Other 743 647 Gross deferred tax assets 11,338 11,257 Valuation allowance --- --- Total net deferred tax assets 11,338 11,257 Deferred tax liabilities Depreciation (1,655 ) (1,739 ) Prepaid expenses (191 ) (191 ) Unrealized gain on securities available for sale (731 ) (187 ) Other (339 ) (321 ) Gross deferred tax liabilities (2,916 ) (2,438 ) Net deferred tax asset $ 8,422 $ 8,819 There were no unrecognized tax benefits at June 30, 2016 or December 31, 2015 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2012.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 10 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): June 30, 2016 December 31, 2015 Commitments to make loans $ 105,023 $ 97,991 Letters of credit 15,062 12,976 Unused lines of credit 432,042 426,080 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $34.3 million and $19.8 million at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016, approximately 39% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to prime or one month LIBOR and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of June 30, 2016, there were no material pending legal proceedings to which the Company or any of its subsidiaries are a party or which any of its properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12 – SHAREHOLDERS' EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. The capital conservation buffer requirement is 0.625% for 2016, increasing to 1.25% for 2017, 1.875% for 2018 and 2.50% for 2019 and thereafter. Institutions that do not maintain this required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in). It raises the minimum total capital to risk-weighted assets ratio from 6.0% to 8.0% (which with the capital conservation buffer fully phased-in effectively results in a 10.5% ratio), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed the well capitalized minimum capital requirements. At June 30, 2016 and December 31, 2015, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2016 CET1 capital (to risk weighted assets) Consolidated $ 157,104 11.1 % $ 63,451 4.5 % $ 72,264 5.1 % N/A N/A Bank 191,596 13.6 63,432 4.5 72,242 5.1 $ 91,624 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 197,104 14.0 84,601 6.0 93,414 6.6 N/A N/A Bank 191,596 13.6 84,576 6.0 93,386 6.6 112,767 8.0 Total capital (to risk weighted assets) Consolidated 214,074 15.2 112,802 8.0 121,614 8.6 N/A N/A Bank 208,566 14.8 112,767 8.0 121,577 8.6 140,959 10.0 Tier 1 capital (to average assets) Consolidated 197,104 11.9 66,106 4.0 N/A N/A N/A N/A Bank 191,596 11.6 66,037 4.0 N/A N/A 82,547 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A N/A N/A Bank 186,930 13.2 63,463 4.5 N/A N/A $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A N/A N/A Bank 186,930 13.2 84,617 6.0 N/A N/A 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A N/A N/A Bank 203,471 14.4 112,822 8.0 N/A N/A 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A N/A N/A Bank 186,930 11.2 66,332 4.0 N/A N/A 82,915 5.0 Approximately $40.0 million of trust preferred securities outstanding at June 30, 2016 and December 31, 2015, respectively, qualified as Tier 1 capital. Refer to our 2015 Form 10-K for more information on the trust preferred securities. The Bank was categorized as "well capitalized" at June 30, 2016 and December 31, 2015.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America.
Basis of Presentation	Basis of Presentation: Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Use of Estimates	Use of Estimates
Allowance for Loan Losses	Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At June 30, 2016, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral.
Foreclosed Assets	Foreclosed Assets
Income Taxes	Income Taxes We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense.
Derivatives	Derivatives
Reclassifications	Reclassifications:
Adoption of New Accounting Standards	Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement
Newly Issued Not Yet Effective Standards	Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards (a consensus of the FASB Emerging Issues Task Force) Liabilities—Extinguishments of Liabilities FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 82,677 443 (65 ) $ 83,055 U.S. Agency MBS and CMOs 12,564 101 (2 ) 12,663 Tax-exempt state and municipal bonds 34,114 1,082 (3 ) 35,193 Taxable state and municipal bonds 27,850 431 (12 ) 28,269 Corporate bonds and other debt securities 12,786 92 (3 ) 12,875 Other equity securities 1,500 25 --- 1,525 $ 171,491 $ 2,174 $ (85 ) $ 173,580 Held to Maturity Tax-exempt state and municipal bonds $ 49,373 $ 1,430 $ --- $ 50,803 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 48 (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at June 30, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 13,397 $ 13,421 $ 10,876 $ 10,943 Due from one to five years 9,221 9,444 94,834 95,745 Due from five to ten years 14,555 15,497 51,059 52,040 Due after ten years 12,200 12,441 13,222 13,327 $ 49,373 $ 50,803 $ 169,991 $ 172,055
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 23,483 $ (61 ) $ 3,092 $ (4 ) $ 26,575 $ (65 ) U.S. Agency MBS and CMOs 2,301 (1 ) 1,097 (1 ) 3,398 (2 ) Tax-exempt state and municipal bonds 836 (3 ) --- --- 836 (3 ) Taxable state and municipal bonds 1,488 (12 ) --- --- 1,488 (12 ) Corporate bonds and other debt securities 1,416 (3 ) --- --- 1,416 (3 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 29,524 $ (80 ) $ 4,189 $ (5 ) $ 33,713 $ (85 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 )

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2016
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): June 30, 2016 December 31, 2015 Commercial and industrial $ 381,058 $ 377,298 Commercial real estate: Residential developed 13,702 10,448 Unsecured to residential developers 7,423 7,372 Vacant and unimproved 38,694 42,881 Commercial development 652 559 Residential improved 70,026 67,922 Commercial improved 291,926 289,651 Manufacturing and industrial 90,952 89,839 Total commercial real estate 513,375 508,672 Consumer Residential mortgage 221,636 209,972 Unsecured 540 637 Home equity 87,145 92,716 Other secured 8,090 8,637 Total consumer 317,411 311,962 Total loans 1,211,844 1,197,932 Allowance for loan losses (16,959 ) (17,081 ) $ 1,194,885 $ 1,180,851
Activity in Allowance for Loan Losses by Portfolio Segment	Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,945 8,449 $ 3,699 $ 36 $ 17,129 Charge-offs --- --- (36 ) --- (36 ) Recoveries 23 557 36 --- 616 Provision for loan losses (8 ) (941 ) 195 4 (750 ) Ending Balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Three months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 Charge-offs (173 ) --- (29 ) --- (202 ) Recoveries 44 117 42 --- 203 Provision for loan losses 336 (748 ) (89 ) 1 (500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Six months ended June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (112 ) --- (112 ) Recoveries 72 678 90 840 Provision for loan losses 62 (1,070 ) 155 3 (850 ) Ending Balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Six months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (173 ) --- (107 ) --- (280 ) Recoveries 128 725 146 --- 999 Provision for loan losses 253 (1,476 ) (254 ) (23 ) (1,500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): June 30, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 569 $ 446 $ 788 $ --- $ 1,803 Collectively evaluated for impairment 4,391 7,619 3,106 40 15,156 Total ending allowance balance $ 4,960 $ 8,065 $ 3,894 $ 40 $ 16,959 Loans: Individually reviewed for impairment $ 4,178 $ 13,101 $ 12,798 $ --- $ 30,077 Collectively evaluated for impairment 376,880 500,274 304,613 --- 1,181,767 Total ending loans balance $ 381,058 $ 513,375 $ 317,411 $ --- $ 1,211,844 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932
Loans Individually Evaluated for Impairment by Class of Loans	The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2016 (dollars in thousands): June 30, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 134 $ 134 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 205 205 --- Commercial development --- --- --- Residential improved 80 80 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 285 285 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 419 $ 419 $ --- With an allowance recorded: Commercial and industrial $ 4,044 $ 4,044 $ 569 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 226 226 6 Commercial development 191 191 6 Residential improved 5,450 5,450 265 Commercial improved 6,712 6,712 160 Manufacturing and industrial 237 237 9 12,816 12,816 446 Consumer: Residential mortgage 8,320 8,320 512 Unsecured --- --- --- Home equity 4,478 4,478 276 Other secured --- --- --- 12,798 12,798 788 Total with an allowance recorded $ 29,658 $ 29,658 $ 1,803 Total $ 30,077 $ 30,077 $ 1,803 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 Total with an allowance recorded $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans	The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Average of impaired loans during the period: Commercial and industrial $ 6,110 $ 7,084 $ 7,187 $ 8,394 Commercial real estate: Residential developed --- 682 --- 810 Unsecured to residential developers --- --- --- --- Vacant and unimproved 436 1,416 441 1,453 Commercial development 192 195 192 196 Residential improved 5,488 7,018 5,516 7,340 Commercial improved 6,817 16,363 8,177 16,561 Manufacturing and industrial 237 2,650 238 2,678 Consumer 12,842 14,583 12,991 14,683 Interest income recognized during impairment: Commercial and industrial 239 292 537 618 Commercial real estate 143 336 344 692 Consumer 116 128 238 264 Cash-basis interest income recognized Commercial and industrial 262 292 551 620 Commercial real estate 144 334 344 685 Consumer 113 128 235 267
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 26 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 103 --- Commercial improved 139 --- Manufacturing and industrial --- --- 291 --- Consumer: Residential mortgage 2 --- Unsecured 22 --- Home equity 9 --- Other secured --- --- 33 --- Total $ 350 $ --- December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17
Aging of Recorded Investment in Past Due Loans by Class of Loans	The following table presents the aging of the recorded investment in past due loans as of June 30, 2016 and December 31, 2015 by class of loans (dollars in thousands): June 30, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 220 $ --- $ 220 $ 380,838 $ 381,058 Commercial real estate: Residential developed --- --- --- 13,702 13,702 Unsecured to residential developers --- --- --- 7,423 7,423 Vacant and unimproved --- --- --- 38,694 38,694 Commercial development --- 49 49 603 652 Residential improved 98 5 103 69,923 70,026 Commercial improved 342 --- 342 291,584 291,926 Manufacturing and industrial --- --- --- 90,952 90,952 440 54 494 512,881 513,375 Consumer: Residential mortgage 104 --- 104 221,532 221,636 Unsecured --- --- --- 540 540 Home equity 161 --- 161 86,984 87,145 Other secured --- --- --- 8,090 8,090 265 --- 265 317,146 317,411 Total $ 925 $ 54 $ 979 $ 1,210,865 $ 1,211,844 December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932
Troubled Debt Restructurings	The following table presents information regarding troubled debt restructurings as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 31 $ 4,178 33 $ 7,611 Commercial real estate 52 13,291 56 17,871 Consumer 120 13,072 124 13,570 203 $ 30,541 213 $ 39,052 The following table presents information related to accruing troubled debt restructurings as of June 30, 2016 and December 31, 2015. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): June 30, 2016 December 31, 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 28,203 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 2,063 4,784 $ 30,266 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the three month periods ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 39 --- 2 $ 39 $ --- Three Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 72 --- 2 $ 72 $ --- The following tables present information regarding troubled debt restructurings executed during the six month periods ended June 30, 2016 and 2015 (dollars in thousands): Six Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 6 277 --- 6 $ 277 $ --- Six Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 31 753 --- 33 $ 1,203 $ ---
Troubled Debt Restructured Loans That Defaulted During the Period	The table below presents, by class, information regarding troubled debt restructured loans which had payment defaults during the three and six month periods ended June 30, 2016 and 2015 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- ---
Risk Grade Category of Loans by Class of Loans	As of June 30, 2016 and December 31, 2015, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): June 30, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 18,366 $ 114,391 $ 230,736 $ 15,426 $ 2,113 $ 26 $ --- $ 381,058 Commercial real estate: Residential developed --- --- 2,572 8,195 2,745 190 --- --- 13,702 Unsecured to residential developers --- --- --- 7,423 --- --- --- --- 7,423 Vacant and unimproved --- --- 16,789 17,610 4,295 --- --- --- 38,694 Commercial development --- --- --- 412 --- 191 49 --- 652 Residential improved --- --- 5,975 58,905 3,314 1,729 103 --- 70,026 Commercial improved --- 1,837 64,675 214,197 9,466 1,612 139 --- 291,926 Manufacturing & industrial --- 1,872 31,570 54,745 2,765 --- --- --- 90,952 $ --- $ 22,075 $ 235,972 $ 592,223 $ 38,011 $ 5,835 $ 317 $ --- $ 894,433 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970
Commercial Loans Classified as Substandard or Worse	Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): June 30, 2016 December 31, 2015 Not classified as impaired $ 1,083 $ 1,986 Classified as impaired 5,069 8,782 Total commercial loans classified substandard or worse $ 6,152 $ 10,768
Recorded Investment in Consumer Loans Based on Payment Activity	The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): June 30, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 221,636 $ 540 $ 87,145 $ 8,090 Nonperforming --- --- --- --- Total $ 221,636 $ 540 $ 87,145 $ 8,090 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2016
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): Six Months Ended June 30, 2016 Year Ended December 31, 2015 Six Months Ended June 30, 2015 Beginning balance $ 28,377 $ 43,071 $ 43,071 Additions, transfers from loans 102 2,520 1,442 Proceeds from sales of other real estate owned (3,313 ) (11,540 ) (2,962 ) Valuation allowance reversal upon sale (334 ) (4,748 ) (427 ) Gain (loss) on sales of other real estate owned 260 (926 ) 205 25,092 28,377 41,329 Less: valuation allowance (11,026 ) (10,805 ) (15,026 ) Ending balance $ 14,066 $ 17,572 $ 26,303
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Beginning balance $ 10,805 $ 14,829 Additions charged to expense 555 624 Reversals upon sale (334 ) (427 ) Ending balance $ 11,026 $ 15,026

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2016
FAIR VALUE [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 U.S. Treasury and federal agency securities $ 83,055 $ --- $ 83,055 $ --- U.S. Agency MBS and CMOs 12,663 --- 12,663 --- Tax-exempt state and municipal bonds 35,193 --- 35,193 --- Taxable state and municipal bonds 28,269 --- 28,269 --- Corporate bonds and other debt securities 12,875 --- 12,875 --- Other equity securities 1,525 --- 1,525 --- Loans held for sale 1,138 --- 1,138 --- Interest rate swaps 1,360 --- --- 1,360 Interest rate swaps (1,360 ) --- --- (1,360 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 )
Assets Measured at Fair Value on a Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Impaired loans $ 3,764 $ --- $ --- $ 3,764 Other real estate owned 11,165 --- --- 11,165 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602
Quantitative Information about Level 3 Fair Value Measurements Measured on a Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) June 30, 2016 Impaired Loans $ 3,764 Sales comparison approach Adjustment for differences between comparable sales 10.0 to 22.0 Income approach Capitalization rate 9.0 to 11.0 Other real estate owned 11,165 Sales comparison approach Adjustment for differences between comparable sales 10.0 to 35.0 Income approach Capitalization rate 9.5 to 11.0 Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented	The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at June 30, 2016 and December 31, 2015 (dollars in thousands): Level in June 30, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 30,045 30,045 $ 29,104 29,104 Cash equivalents Level 2 94,888 94,888 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 49,373 50,803 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,191,121 1,189,597 1,187,423 1,177,527 Bank owned life insurance Level 3 28,942 28,942 28,858 28,858 Accrued interest receivable Level 2 3,657 3,657 3,622 3,622 Financial liabilities Deposits Level 2 (1,355,078 ) (1,355,040 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (104,840 ) (105,928 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (35,985 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (272 ) (272 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- ---

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2016
DEPOSITS [Abstract]
Deposits at Period-End	Deposits are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Noninterest-bearing demand $ 451,644 $ 477,032 Interest bearing demand 308,835 358,306 Savings and money market accounts 515,515 512,980 Certificates of deposit 79,084 87,194 $ 1,355,078 $ 1,435,512

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	6 Months Ended
	Jun. 30, 2016
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate June 30, 2016 Single maturity fixed rate advances $ 100,000 August 2016 to April 2021 1.66 % Amortizable mortgage advances 4,840 March 2018 to July 2018 3.76 % $ 104,840 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169
Scheduled Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of June 30, 2016 were as follows (in thousands): 2016 $ 20,667 2017 2,055 2018 52,118 2019 10,000 2020 10,000 Thereafter 10,000 $ 104,840

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
EARNINGS PER COMMON SHARE [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Common Share	A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and six month periods ended June 30, 2016 and 2015 are as follows (dollars in thousands, except per share data): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Net income available to common shares $ 3,745 $ 3,215 $ 7,240 $ 6,055 Weighted average shares outstanding, including participating stock awards - 33,922,506 33,866,789 33,923,810 33,866,789 Dilutive potential common shares: Stock options --- --- --- --- Stock warrants --- --- --- --- Weighted average shares outstanding - 33,922,506 33,866,789 33,923,810 33,866,789 Basic earnings per common share $ 0.11 $ 0.09 $ 0.21 $ 0.18 Diluted earnings per common share $ 0.11 $ 0.09 $ 0.21 $ 0.18

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Current $ 1,757 $ 676 $ 3,226 $ 1,329 Deferred (78 ) 744 (147 ) 1,336 $ 1,679 $ 1,420 $ 3,079 $ 2,665
Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income	The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Statutory rate 35 % 35 % 35 % 35 % Statutory rate applied to income before taxes $ 1,899 $ 1,622 $ 3,612 $ 3,052 Add (deduct) Tax-exempt interest income (149 ) (127 ) (297 ) (244 ) Bank-owned life insurance (56 ) (60 ) (211 ) (117 ) Other, net (15 ) (15 ) (25 ) (26 ) $ 1,679 $ 1,420 $ 3,079 $ 2,665
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): June 30, 2016 December 31, 2015 Deferred tax assets Allowance for loan losses $ 5,936 $ 5,978 Nonaccrual loan interest 800 850 Valuation allowance on other real estate owned 3,859 3,782 Unrealized loss on securities available for sale --- --- Other 743 647 Gross deferred tax assets 11,338 11,257 Valuation allowance --- --- Total net deferred tax assets 11,338 11,257 Deferred tax liabilities Depreciation (1,655 ) (1,739 ) Prepaid expenses (191 ) (191 ) Unrealized gain on securities available for sale (731 ) (187 ) Other (339 ) (321 ) Gross deferred tax liabilities (2,916 ) (2,438 ) Net deferred tax asset $ 8,422 $ 8,819

COMMITMENTS AND OFF BALANCE-S30

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk	A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): June 30, 2016 December 31, 2015 Commitments to make loans $ 105,023 $ 97,991 Letters of credit 15,062 12,976 Unused lines of credit 432,042 426,080

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	At June 30, 2016 and December 31, 2015, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2016 CET1 capital (to risk weighted assets) Consolidated $ 157,104 11.1 % $ 63,451 4.5 % $ 72,264 5.1 % N/A N/A Bank 191,596 13.6 63,432 4.5 72,242 5.1 $ 91,624 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 197,104 14.0 84,601 6.0 93,414 6.6 N/A N/A Bank 191,596 13.6 84,576 6.0 93,386 6.6 112,767 8.0 Total capital (to risk weighted assets) Consolidated 214,074 15.2 112,802 8.0 121,614 8.6 N/A N/A Bank 208,566 14.8 112,767 8.0 121,577 8.6 140,959 10.0 Tier 1 capital (to average assets) Consolidated 197,104 11.9 66,106 4.0 N/A N/A N/A N/A Bank 191,596 11.6 66,037 4.0 N/A N/A 82,547 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A N/A N/A Bank 186,930 13.2 63,463 4.5 N/A N/A $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A N/A N/A Bank 186,930 13.2 84,617 6.0 N/A N/A 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A N/A N/A Bank 203,471 14.4 112,822 8.0 N/A N/A 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A N/A N/A Bank 186,930 11.2 66,332 4.0 N/A N/A 82,915 5.0

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2016USD ($)BranchGradeInterestRateSwap	Dec. 31, 2015USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices | Branch	26
Residential Mortgage [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
Commercial [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	18 months
Threshold balance of loans evaluated for impairment	$ 500,000
Commercial [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Grade	6
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loans evaluated for impairment	$ 500,000
Commercial Real Estate [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Grade	6
Consumer [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
Swap [Member] | Interest Rate Swap [Member]
Derivatives [Abstract]
Number of derivative instruments held | InterestRateSwap	2
Notional amount of agreements	$ 48,500,000	$ 48,500,000
Derivative asset fair value	1,400,000	790,000
Derivative liability fair value	$ 1,400,000	$ 790,000

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Available for Sale [Abstract]
Amortized cost	$ 171,491		$ 171,491		$ 166,281
Gross unrealized gains	2,174		2,174		1,040
Gross unrealized losses	(85)		(85)		(506)
Fair value	173,580		173,580		166,815
Proceeds from sale of available-for-sale securities	230	$ 0	9,648	$ 12,063
Gain on sale of securities	10	0	99	83
Reclassification adjustment for securities gain recognized in earnings, net of tax	7	$ 0	64	$ 54
Held to Maturity [Abstract]
Amortized cost	49,373		49,373		51,856
Fair value	50,803		50,803		52,837
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale [Abstract]
Amortized cost	82,677		82,677		74,618
Gross unrealized gains	443		443		48
Gross unrealized losses	(65)		(65)		(274)
Fair value	83,055		83,055		74,392
U.S. Agency MBS and CMOs [Member]
Available for Sale [Abstract]
Amortized cost	12,564		12,564		13,828
Gross unrealized gains	101		101		35
Gross unrealized losses	(2)		(2)		(108)
Fair value	12,663		12,663		13,755
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	34,114		34,114		32,943
Gross unrealized gains	1,082		1,082		692
Gross unrealized losses	(3)		(3)		(37)
Fair value	35,193		35,193		33,598
Taxable State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	27,850		27,850		28,554
Gross unrealized gains	431		431		246
Gross unrealized losses	(12)		(12)		(37)
Fair value	28,269		28,269		28,763
Corporate Bonds and Other Debt Securities [Member]
Available for Sale [Abstract]
Amortized cost	12,786		12,786		14,838
Gross unrealized gains	92		92		19
Gross unrealized losses	(3)		(3)		(44)
Fair value	12,875		12,875		14,813
Other Equity Securities [Member]
Available for Sale [Abstract]
Amortized cost	1,500		1,500		1,500
Gross unrealized gains	25		25		0
Gross unrealized losses	0		0		(6)
Fair value	1,525		1,525		1,494
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	49,373		49,373		51,856
Gross unrealized gains	1,430		1,430		986
Gross unrealized losses	0		0		(5)
Fair value	$ 50,803		$ 50,803		$ 52,837

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 13,397
Due from one to five years	9,221
Due from five to ten years	14,555
Due after ten years	12,200
Amortized cost	49,373	$ 51,856
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	13,421
Due from one to five years	9,444
Due from five to ten years	15,497
Due after ten years	12,441
Fair value	50,803	$ 52,837
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	10,876
Due from one to five years	94,834
Due from five to ten years	51,059
Due after ten years	13,222
Amortized cost	169,991
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	10,943
Due from one to five years	95,745
Due from five to ten years	52,040
Due after ten years	13,327
Fair value	$ 172,055

SECURITIES, Continuous Unrealiz

SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	$ 29,524	$ 66,401
12 months or more, fair value	4,189	10,197
Total, fair value	33,713	76,598
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(80)	(386)
12 months or more, unrealized loss	(5)	(125)
Total, unrealized loss	(85)	(511)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	23,483	35,090
12 months or more, fair value	3,092	7,036
Total, fair value	26,575	42,126
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(61)	(187)
12 months or more, unrealized loss	(4)	(82)
Total, unrealized loss	(65)	(269)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	2,301	8,842
12 months or more, fair value	1,097	0
Total, fair value	3,398	8,842
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(1)	(108)
12 months or more, unrealized loss	(1)	0
Total, unrealized loss	(2)	(108)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	836	3,487
12 months or more, fair value	0	2,022
Total, fair value	836	5,509
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(3)	(9)
12 months or more, unrealized loss	0	(33)
Total, unrealized loss	(3)	(42)
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	1,488	8,158
12 months or more, fair value	0	640
Total, fair value	1,488	8,798
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(12)	(29)
12 months or more, unrealized loss	0	(8)
Total, unrealized loss	(12)	(37)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	1,416	9,330
12 months or more, fair value	0	499
Total, fair value	1,416	9,829
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(3)	(47)
12 months or more, unrealized loss	0	(2)
Total, unrealized loss	(3)	(49)
Other Equity Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	0	1,494
12 months or more, fair value	0	0
Total, fair value	0	1,494
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	0	(6)
12 months or more, unrealized loss	0
Total, unrealized loss	$ 0	$ (6)

SECURITIES, Pledged Securities

SECURITIES, Pledged Securities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
SECURITIES [Abstract]
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law	$ 2	$ 2

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Portfolio loans [Abstract]
Total loans	$ 1,211,844		$ 1,197,932
Allowance for loan losses	(16,959)	$ (17,129)	(17,081)	$ (18,181)	$ (18,680)	$ (18,962)
Net loans	1,194,885		1,180,851
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	381,058		377,298
Allowance for loan losses	(4,960)	(4,945)	(4,826)	(6,381)	(6,174)	(6,173)
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	513,375		508,672
Allowance for loan losses	(8,065)	(8,449)	(8,457)	(7,939)	(8,570)	(8,690)
Commercial Real Estate [Member] | Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	13,702		10,448
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	7,423		7,372
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	38,694		42,881
Commercial Real Estate [Member] | Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	652		559
Commercial Real Estate [Member] | Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	70,026		67,922
Commercial Real Estate [Member] | Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	291,926		289,651
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	90,952		89,839
Consumer [Member]
Portfolio loans [Abstract]
Total loans	317,411		311,962
Allowance for loan losses	(3,894)	$ (3,699)	(3,761)	$ (3,831)	$ (3,907)	$ (4,046)
Consumer [Member] | Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	221,636		209,972
Consumer [Member] | Unsecured [Member]
Portfolio loans [Abstract]
Total loans	540		637
Consumer [Member] | Home Equity [Member]
Portfolio loans [Abstract]
Total loans	87,145		92,716
Consumer [Member] | Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 8,090		$ 8,637

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	$ 17,129	$ 18,680	$ 17,081	$ 18,962
Charge-offs	(36)	(202)	(112)	(280)
Recoveries	616	203	840	999
Provision for loan losses	(750)	(500)	(850)	(1,500)
Ending balance	16,959	18,181	16,959	18,181
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	4,945	6,174	4,826	6,173
Charge-offs	0	(173)	0	(173)
Recoveries	23	44	72	128
Provision for loan losses	(8)	336	62	253
Ending balance	4,960	6,381	4,960	6,381
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	8,449	8,570	8,457	8,690
Charge-offs	0	0	0	0
Recoveries	557	117	678	725
Provision for loan losses	(941)	(748)	(1,070)	(1,476)
Ending balance	8,065	7,939	8,065	7,939
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	3,699	3,907	3,761	4,046
Charge-offs	(36)	(29)	(112)	(107)
Recoveries	36	42	90	146
Provision for loan losses	195	(89)	155	(254)
Ending balance	3,894	3,831	3,894	3,831
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	36	29	37	53
Charge-offs	0	0	0	0
Recoveries	0	0		0
Provision for loan losses	4	1	3	(23)
Ending balance	$ 40	$ 30	$ 40	$ 30

LOANS, Allowance for Loans Lo39

LOANS, Allowance for Loans Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 1,803		$ 1,938
Collectively evaluated for impairment	15,156		15,143
Total ending allowance balance	16,959	$ 17,129	17,081	$ 18,181	$ 18,680	$ 18,962
Loans [Abstract]
Individually reviewed for impairment	30,077		38,750
Collectively evaluated for impairment	1,181,767		1,159,182
Total ending loans balance	1,211,844		1,197,932
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	569		673
Collectively evaluated for impairment	4,391		4,153
Total ending allowance balance	4,960	4,945	4,826	6,381	6,174	6,173
Loans [Abstract]
Individually reviewed for impairment	4,178		7,718
Collectively evaluated for impairment	376,880		369,580
Total ending loans balance	381,058		377,298
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	446		436
Collectively evaluated for impairment	7,619		8,021
Total ending allowance balance	8,065	8,449	8,457	7,939	8,570	8,690
Loans [Abstract]
Individually reviewed for impairment	13,101		17,569
Collectively evaluated for impairment	500,274		491,103
Total ending loans balance	513,375		508,672
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	788		829
Collectively evaluated for impairment	3,106		2,932
Total ending allowance balance	3,894	3,699	3,761	3,831	3,907	4,046
Loans [Abstract]
Individually reviewed for impairment	12,798		13,463
Collectively evaluated for impairment	304,613		298,499
Total ending loans balance	317,411		311,962
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	0		0
Collectively evaluated for impairment	40		37
Total ending allowance balance	40	$ 36	37	$ 30	$ 29	$ 53
Loans [Abstract]
Individually reviewed for impairment	0		0
Collectively evaluated for impairment	0		0
Total ending loans balance	$ 0		$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 419		$ 419		$ 2,947
Recorded investment	419		419		2,947
With related allowance recorded [Abstract]
Unpaid principal balance	29,658		29,658		35,803
Recorded investment	29,658		29,658		35,803
Allowance allocated	1,803		1,803		1,938
Total [Abstract]
Unpaid principal balance	30,077		30,077		38,750
Recorded investment	30,077		30,077		38,750
Allowance allocated	1,803		1,803		1,938
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	134		134		2,736
Recorded investment	134		134		2,736
With related allowance recorded [Abstract]
Unpaid principal balance	4,044		4,044		4,982
Recorded investment	4,044		4,044		4,982
Allowance allocated	569		569		673
Total [Abstract]
Allowance allocated	569		569		673
Impaired loans [Abstract]
Average of impaired loans	6,110	$ 7,084	7,187	$ 8,394
Interest income recognized during impairment	239	292	537	618
Cash-basis interest income recognized	262	292	551	620
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	285		285		211
Recorded investment	285		285		211
With related allowance recorded [Abstract]
Unpaid principal balance	12,816		12,816		17,358
Recorded investment	12,816		12,816		17,358
Allowance allocated	446		446		436
Total [Abstract]
Allowance allocated	446		446		436
Impaired loans [Abstract]
Interest income recognized during impairment	143	336	344	692
Cash-basis interest income recognized	144	334	344	685
Commercial Real Estate [Member] | Residential Developed [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Allowance allocated	0		0		0
Total [Abstract]
Allowance allocated	0		0		0
Impaired loans [Abstract]
Average of impaired loans	0	682	0	810
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Allowance allocated	0		0		0
Total [Abstract]
Allowance allocated	0		0		0
Impaired loans [Abstract]
Average of impaired loans	0	0	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	205		205		206
Recorded investment	205		205		206
With related allowance recorded [Abstract]
Unpaid principal balance	226		226		247
Recorded investment	226		226		247
Allowance allocated	6		6		7
Total [Abstract]
Allowance allocated	6		6		7
Impaired loans [Abstract]
Average of impaired loans	436	1,416	441	1,453
Commercial Real Estate [Member] | Commercial Development [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	191		191		192
Recorded investment	191		191		192
Allowance allocated	6		6		6
Total [Abstract]
Allowance allocated	6		6		6
Impaired loans [Abstract]
Average of impaired loans	192	195	192	196
Commercial Real Estate [Member] | Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	80		80		5
Recorded investment	80		80		5
With related allowance recorded [Abstract]
Unpaid principal balance	5,450		5,450		5,254
Recorded investment	5,450		5,450		5,254
Allowance allocated	265		265		140
Total [Abstract]
Allowance allocated	265		265		140
Impaired loans [Abstract]
Average of impaired loans	5,488	7,018	5,516	7,340
Commercial Real Estate [Member] | Commercial Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	6,712		6,712		11,425
Recorded investment	6,712		6,712		11,425
Allowance allocated	160		160		274
Total [Abstract]
Allowance allocated	160		160		274
Impaired loans [Abstract]
Average of impaired loans	6,817	16,363	8,177	16,561
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	237		237		240
Recorded investment	237		237		240
Allowance allocated	9		9		9
Total [Abstract]
Allowance allocated	9		9		9
Impaired loans [Abstract]
Average of impaired loans	237	2,650	238	2,678
Consumer [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	12,798		12,798		13,463
Recorded investment	12,798		12,798		13,463
Allowance allocated	788		788		829
Total [Abstract]
Allowance allocated	788		788		829
Impaired loans [Abstract]
Average of impaired loans	12,842	14,583	12,991	14,683
Interest income recognized during impairment	116	128	238	264
Cash-basis interest income recognized	113	$ 128	235	$ 267
Consumer [Member] | Residential Mortgage [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	8,320		8,320		8,655
Recorded investment	8,320		8,320		8,655
Allowance allocated	512		512		533
Total [Abstract]
Allowance allocated	512		512		533
Consumer [Member] | Unsecured [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Allowance allocated	0		0		0
Total [Abstract]
Allowance allocated	0		0		0
Consumer [Member] | Home Equity [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	4,478		4,478		4,808
Recorded investment	4,478		4,478		4,808
Allowance allocated	276		276		296
Total [Abstract]
Allowance allocated	276		276		296
Consumer [Member] | Other Secured [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Allowance allocated	0		0		0
Total [Abstract]
Allowance allocated	$ 0		$ 0		$ 0

LOANS, Past Due Loans (Details)

LOANS, Past Due Loans (Details)	6 Months Ended
	Jun. 30, 2016USD ($)Payment	Dec. 31, 2015USD ($)
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	$ 350,000	$ 739,000
Over 90 days Accruing	0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	979,000	1,371,000
Loans Not Past Due	1,210,865,000	1,196,561,000
Total ending loans balance	1,211,844,000	1,197,932,000
Specific reserves allocated to customers with modified term loans in troubled debt restructurings	$ 1,803,000	1,938,000
Number of consecutive payment before nonaccrual restructured loan is upgraded | Payment	6
Number of months of performance before a loan is removed from TDR	6 months
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	$ 925,000	1,199,000
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	54,000	172,000
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	26,000	174,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	220,000	819,000
Loans Not Past Due	380,838,000	376,479,000
Total ending loans balance	381,058,000	377,298,000
Commercial and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	220,000	719,000
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	100,000
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	291,000	525,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	494,000	503,000
Loans Not Past Due	512,881,000	508,169,000
Total ending loans balance	513,375,000	508,672,000
Commercial Real Estate [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	440,000	448,000
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	54,000	55,000
Commercial Real Estate [Member] | Residential Developed [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	195,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	13,702,000	10,448,000
Total ending loans balance	13,702,000	10,448,000
Commercial Real Estate [Member] | Residential Developed [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	7,423,000	7,372,000
Total ending loans balance	7,423,000	7,372,000
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	38,694,000	42,881,000
Total ending loans balance	38,694,000	42,881,000
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	49,000	49,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	49,000	49,000
Loans Not Past Due	603,000	510,000
Total ending loans balance	652,000	559,000
Commercial Real Estate [Member] | Commercial Development [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	49,000	49,000
Commercial Real Estate [Member] | Residential Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	103,000	124,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	103,000	79,000
Loans Not Past Due	69,923,000	67,843,000
Total ending loans balance	70,026,000	67,922,000
Commercial Real Estate [Member] | Residential Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	98,000	73,000
Commercial Real Estate [Member] | Residential Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	5,000	6,000
Commercial Real Estate [Member] | Commercial Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	139,000	157,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	342,000	375,000
Loans Not Past Due	291,584,000	289,276,000
Total ending loans balance	291,926,000	289,651,000
Commercial Real Estate [Member] | Commercial Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	342,000	375,000
Commercial Real Estate [Member] | Commercial Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	90,952,000	89,839,000
Total ending loans balance	90,952,000	89,839,000
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Consumer [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	33,000	40,000
Over 90 days Accruing	0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	265,000	49,000
Loans Not Past Due	317,146,000	311,913,000
Total ending loans balance	317,411,000	311,962,000
Consumer [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	265,000	32,000
Consumer [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	17,000
Consumer [Member] | Residential Mortgage [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	2,000	2,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	104,000	0
Loans Not Past Due	221,532,000	209,972,000
Total ending loans balance	221,636,000	209,972,000
Consumer [Member] | Residential Mortgage [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	104,000	0
Consumer [Member] | Residential Mortgage [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Consumer [Member] | Unsecured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	22,000	28,000
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	540,000	637,000
Total ending loans balance	540,000	637,000
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Consumer [Member] | Unsecured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Consumer [Member] | Home Equity [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	9,000	10,000
Over 90 days Accruing	0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	161,000	49,000
Loans Not Past Due	86,984,000	92,667,000
Total ending loans balance	87,145,000	92,716,000
Consumer [Member] | Home Equity [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	161,000	32,000
Consumer [Member] | Home Equity [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	17,000
Consumer [Member] | Other Secured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Loans Not Past Due	8,090,000	8,637,000
Total ending loans balance	8,090,000	8,637,000
Consumer [Member] | Other Secured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	0
Consumer [Member] | Other Secured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	$ 0	$ 0

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Loan	Jun. 30, 2015USD ($)Loan	Jun. 30, 2016USD ($)Loan	Jun. 30, 2015USD ($)Loan	Dec. 31, 2015USD ($)Loan
Troubled debt restructurings [Abstract]
Number of Loans | Loan	203		203		213
Outstanding Recorded Balance	$ 30,541		$ 30,541		$ 39,052
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring	0		0		0
Accruing TDR - accruing at restructuring	28,203		28,203		33,691
Accruing TDR - upgraded to accruing after six consecutive payments	2,063		2,063		4,784
Total	$ 30,266		$ 30,266		$ 38,475
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	2	2	6	33
Pre-Modification Outstanding Recorded Balance	$ 39	$ 72	$ 277	$ 1,203
Principal Write-down upon Modification	$ 0	$ 0	$ 0	$ 0
Commercial and Industrial [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	31		31		33
Outstanding Recorded Balance	$ 4,178		$ 4,178		$ 7,611
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	0	0	1
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 408
Principal Write-down upon Modification	$ 0	$ 0	$ 0	$ 0
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract]
Number of Loans | Loan	0	0	0	0
Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	52		52		56
Outstanding Recorded Balance	$ 13,291		$ 13,291		$ 17,871
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	0	0	1
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 42
Principal Write-down upon Modification	$ 0	$ 0	$ 0	$ 0
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract]
Number of Loans | Loan	0	0	0	0
Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	120		120		124
Outstanding Recorded Balance	$ 13,072		$ 13,072		$ 13,570
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	2	2	6	31
Pre-Modification Outstanding Recorded Balance	$ 39	$ 72	$ 277	$ 753
Principal Write-down upon Modification	$ 0	$ 0	$ 0	$ 0
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract]
Number of Loans | Loan	0	0	0	0
Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Grade	Dec. 31, 2015USD ($)
LOANS [Abstract]
Number point grading system used for loan quality | Grade	8
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 894,433	$ 885,970
Internal risk grade category of loans considered substandard, doubtful or loss | Grade	6
Commercial Loans [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0	196
Commercial Loans [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	22,075	13,346
Commercial Loans [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	235,972	236,968
Commercial Loans [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	592,223	588,248
Commercial Loans [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	38,011	36,444
Commercial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,835	10,069
Commercial Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	317	699
Commercial Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	381,058	377,298
Commercial and Industrial [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	196
Commercial and Industrial [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	18,366	8,774
Commercial and Industrial [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	114,391	114,451
Commercial and Industrial [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	230,736	242,253
Commercial and Industrial [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	15,426	5,235
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,113	6,215
Commercial and Industrial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	26	174
Commercial and Industrial [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	13,702	10,448
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,572	2,226
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,195	5,191
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,745	2,836
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	190	0
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	195
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,423	7,372
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,423	7,372
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	38,694	42,881
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,789	17,768
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	17,610	20,588
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,295	4,525
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	652	559
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	412	318
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	191	192
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	49	49
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	70,026	67,922
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,975	7,191
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	58,905	54,376
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,314	4,722
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,729	1,509
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	103	124
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	291,926	289,651
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,837	3,094
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	64,675	60,475
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	214,197	208,127
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,466	15,645
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,612	2,153
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	139	157
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	90,952	89,839
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Excellent [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Above Average [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,872	1,478
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Good Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	31,570	34,857
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	54,745	50,023
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,765	3,481
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0	$ 0

LOANS, Commercial Loans Classif

LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Classified as impaired	$ 30,077	$ 38,750
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	894,433	885,970
Commercial Loans [Member] | Substandard or Worse [Member]
Financing Receivable, Recorded Investment [Line Items]
Not classified as impaired	1,083	1,986
Classified as impaired	5,069	8,782
Total loans	$ 6,152	$ 10,768

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - Consumer Loan [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 221,636	$ 209,972
Residential Mortgage [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	221,636	209,972
Residential Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Unsecured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	540	637
Unsecured [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	540	637
Unsecured [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	87,145	92,716
Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	87,145	92,699
Home Equity [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	17
Other Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,090	8,637
Other Secured [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,090	8,637
Other Secured [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0	$ 0

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Period-end other real estate owned [Roll Forward]
Beginning balance	$ 28,377	$ 43,071	$ 43,071
Additions, transfers from loans	102	1,442	2,520
Proceeds from sales of other real estate owned	(3,313)	(2,962)	(11,540)
Valuation allowance reversal upon sale	(334)	(427)	(4,748)
Gain (loss) on sales of other real estate owned	260	205	(926)
Other real estate owned, gross	25,092	41,329	28,377
Less: valuation allowance	(11,026)	(15,026)	(10,805)
Ending balance	14,066	26,303	17,572
Valuation Allowance, Real Estate Owned [Member]
Activity in valuation allowance [Roll Forward]
Beginning balance	10,805	14,829	14,829
Additions charged to expense	555	624
Reversals upon sale	(334)	(427)
Ending balance	$ 11,026	$ 15,026	$ 10,805

FAIR VALUE, Assets and Liabilit

FAIR VALUE, Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 173,580	$ 166,815
U.S. Treasury and Federal Agency Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	83,055	74,392
U.S. Agency MBS and CMOs [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,663	13,755
Tax-Exempt State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	35,193	33,598
Taxable State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	28,269	28,763
Corporate Bonds and Other Debt Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,875	14,813
Other Equity Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,525	1,494
Recurring Basis [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	1,138	2,776
Interest rate swaps	1,360	790
Interest rate swaps	(1,360)	(790)
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	1,138	2,776
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	1,360	790
Interest rate swaps	(1,360)	(790)
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	83,055	74,392
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	83,055	74,392
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,663	13,755
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,663	13,755
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	35,193	33,598
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	35,193	33,598
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	28,269	28,763
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	28,269	28,763
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,875	14,813
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	12,875	14,813
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,525	1,494
Recurring Basis [Member] | Other Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,525	1,494
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Nonrecurring Basis [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	3,764	6,573
Other real estate owned	11,165	13,602
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	3,764	6,573
Other real estate owned	11,165	13,602
Impaired Loans [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset (Liability) fair value	$ 3,764	$ 6,573
Impaired Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	10.00%	1.00%
Impaired Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	22.00%	19.00%
Impaired Loans [Member] | Income Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	9.00%	9.50%
Impaired Loans [Member] | Income Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	11.00%	11.00%
Other Real Estate Owned [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset (Liability) fair value	$ 11,165	$ 13,602
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	10.00%	4.50%
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	35.00%	32.50%
Other Real Estate Owned [Member] | Income Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	9.50%	9.50%
Other Real Estate Owned [Member] | Income Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	11.00%	11.00%

FAIR VALUE, Balance Sheet Group

FAIR VALUE, Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial assets [Abstract]
Cash and due from banks	$ 30,045	$ 29,104
Securities held to maturity	50,803	52,837
Bank owned life insurance	28,942	28,858
Carrying Amount [Member]
Financial assets [Abstract]
FHLB stock	11,558	11,558
Commitments to Make Loans [Member] | Carrying Amount [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit-related items	0	0
Commitments to Make Loans [Member] | Fair Value [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit-related items	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	30,045	29,104
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	30,045	29,104
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash equivalents	94,888	152,372
Interest-bearing time deposits in other financial institutions	0	20,000
Loans, net	1,191,121	1,187,423
Accrued interest receivable	3,657	3,622
Financial liabilities [Abstract]
Deposits	(1,355,078)	(1,435,512)
Other borrowed funds	(104,840)	(96,169)
Long-term debt	(41,238)	(41,238)
Accrued interest payable	(272)	(273)
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash equivalents	94,888	152,372
Interest-bearing time deposits in other financial institutions	0	20,008
Loans, net	1,189,597	1,177,527
Accrued interest receivable	3,657	3,622
Financial liabilities [Abstract]
Deposits	(1,355,040)	(1,435,473)
Other borrowed funds	(105,928)	(96,465)
Long-term debt	(35,985)	(35,757)
Accrued interest payable	(272)	(273)
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Securities held to maturity	49,373	51,856
Bank owned life insurance	28,942	28,858
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial assets [Abstract]
Securities held to maturity	50,803	52,837
Bank owned life insurance	$ 28,942	$ 28,858

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 451,644	$ 477,032
Interest bearing demand	308,835	358,306
Savings and money market accounts	515,515	512,980
Certificates of deposit	79,084	87,194
Total deposits	1,355,078	1,435,512
Certificate of deposits, $250,000 or more denominations	$ 16,800	$ 17,100

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 104,840,000	$ 96,169,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	434,930,000	440,660,000
Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 100,000,000	$ 90,000,000
Range of maturities, earliest	2,016	2,016
Range of maturities, last	2,021	2,020
Single Maturity Fixed Rate Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.66%	1.69%
Amortizable Mortgage Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 4,840,000	$ 6,169,000
Range of maturities, earliest	2,018	2,018
Range of maturities, last	2,018	2,018
Amortizable Mortgage Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	3.76%	3.78%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Scheduled repayments of FHLB advances [Abstract]
2,016	$ 20,667
2,017	2,055
2,018	52,118
2,019	10,000
2,020	10,000
Thereafter	10,000
Total	$ 104,840	$ 96,169

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Federal Reserve Bank borrowings [Abstract]
Unused borrowing capacity to Federal Reserve Bank	$ 19.5	$ 18.5
Commercial and mortgage loans pledged to the Federal Reserve Bank	$ 22.4	$ 21.6

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares	$ 3,745	$ 3,215	$ 7,240	$ 6,055
Weighted average shares outstanding, including participating stock awards - Basic (in shares)	33,922,506	33,866,789	33,923,810	33,866,789
Dilutive potential common shares [Abstract]
Stock options (in shares)	0	0	0	0
Stock warrants (in shares)	0	0	0	0
Weighted average shares outstanding - Diluted (in shares)	33,922,506	33,866,789	33,923,810	33,866,789
Basic earnings per common share (in dollars per share)	$ 0.11	$ 0.09	$ 0.21	$ 0.18
Diluted earnings per common share (in dollars per share)	$ 0.11	$ 0.09	$ 0.21	$ 0.18
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	100,896	258,361	100,896	258,361

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income tax expense [Abstract]
Current	$ 1,757	$ 676	$ 3,226	$ 1,329
Deferred	(78)	744	(147)	1,336
Income tax expense	$ 1,679	$ 1,420	$ 3,079	$ 2,665
Difference between financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income [Abstract]
Statutory rate	35.00%	35.00%	35.00%	35.00%
Statutory rate applied to income before taxes	$ 1,899	$ 1,622	$ 3,612	$ 3,052
Add (deduct) [Abstract]
Tax-exempt interest income	(149)	(127)	(297)	(244)
Bank-owned life insurance	(56)	(60)	(211)	(117)
Other, net	(15)	(15)	(25)	(26)
Income tax expense	1,679	$ 1,420	3,079	$ 2,665
Deferred tax assets [Abstract]
Allowance for loan losses	5,936		5,936		$ 5,978
Nonaccrual loan interest	800		800		850
Valuation allowance on other real estate owned	3,859		3,859		3,782
Unrealized loss on securities available for sale	0		0		0
Other	743		743		647
Gross deferred tax assets	11,338		11,338		11,257
Valuation allowance	0		0		0
Total net deferred tax assets	11,338		11,338		11,257
Deferred tax liabilities [Abstract]
Depreciation	(1,655)		(1,655)		(1,739)
Prepaid expenses	(191)		(191)		(191)
Unrealized gain on securities available for sale	(731)		(731)		(187)
Other	(339)		(339)		(321)
Gross deferred tax liabilities	(2,916)		(2,916)		(2,438)
Net deferred tax asset	8,422		8,422		8,819
Unrecognized tax benefits	$ 0		$ 0		$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease			12 months

COMMITMENTS AND OFF BALANCE-S55

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Notional amount of commitments to fund mortgage loans to be sold into the secondary market	$ 34,300	$ 19,800
Commitments to make loans at fixed rates	39.00%
Expiration period of commitment to make variable rate loan	30 days
Commitments to Make Loans [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 105,023	97,991
Letters of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	15,062	12,976
Unused Lines of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 432,042	$ 426,080

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Category	Dec. 31, 2015USD ($)
SHAREHOLDERS' EQUITY [Abstract]
Number of classification of prompt corrective action regulations | Category	5
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 157,104	$ 151,630
CET1 capital (to risk weighted assets), actual ratio	11.10%	10.80%
Tier 1 capital (to risk weighted assets), actual amount	$ 197,104	$ 191,630
Tier 1 capital (to risk weighted assets), actual ratio	14.00%	13.60%
Total capital (to risk weighted assets), actual amount	$ 214,074	$ 208,711
Total capital (to risk weighted assets), actual ratio	15.20%	14.80%
Tier 1 capital (to average assets), actual amount	$ 197,104	$ 191,630
Tier 1 capital (to average assets), actual ratio	11.90%	11.50%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 63,451	$ 63,479
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	4.50%	4.50%
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 84,601	$ 84,638
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 112,802	$ 112,851
Total capital (to risk weighted assets), minimum capital adequacy, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 66,106	$ 66,400
Tier 1 capital (to average assets), minimum capital adequacy, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 72,264
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 93,414
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 121,614
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	8.60%
Trust preferred securities that qualified as Tier one risk based capital	$ 40,000	$ 40,000
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 191,596	$ 186,930
CET1 capital (to risk weighted assets), actual ratio	13.60%	13.20%
Tier 1 capital (to risk weighted assets), actual amount	$ 191,596	$ 186,930
Tier 1 capital (to risk weighted assets), actual ratio	13.60%	13.20%
Total capital (to risk weighted assets), actual amount	$ 208,566	$ 203,471
Total capital (to risk weighted assets), actual ratio	14.80%	14.40%
Tier 1 capital (to average assets), actual amount	$ 191,596	$ 186,930
Tier 1 capital (to average assets), actual ratio	11.60%	11.20%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 63,432	$ 63,463
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	4.50%	4.50%
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 84,576	$ 84,617
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 112,767	$ 112,822
Total capital (to risk weighted assets), minimum capital adequacy, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 66,037	$ 66,332
Tier 1 capital (to average assets), minimum capital adequacy, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 72,242
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 93,386
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 121,577
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	8.60%
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 91,624	$ 91,668
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	6.50%	6.50%
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 112,767	$ 112,822
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	8.00%	8.00%
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 140,959	$ 141,028
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	10.00%	10.00%
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount	$ 82,547	$ 82,915
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	5.00%	5.00%