HCSB Financial (HCFB) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information
Entity Registrant Name	HCSB FINANCIAL CORP
Entity Central Index Key	1,091,491
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		377,482,383
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Cash and cash equivalents:
Cash and due from banks	$ 64,024	$ 22,137
Investment securities:
Securities available-for-sale	80,969	89,701
Nonmarketable equity securities	1,090	1,330
Total investment securities	82,059	91,031
Loans held for sale	4,280
Loans receivable	199,072	209,367
Less allowance for loan losses	(4,492)	(4,601)
Loans, net	194,580	204,766
Premises and equipment, net	14,591	15,917
Assets held for sale	768
Accrued interest receivable	1,286	1,745
Cash value of life insurance	11,481	11,319
Other real estate owned	7,256	13,624
Other assets	2,155	884
Total assets	382,480	361,423
Deposits:
Noninterest-bearing transaction accounts	44,077	40,182
Interest-bearing transaction accounts	39,067	40,478
Money market savings accounts	68,337	65,806
Other savings accounts	11,787	10,394
Time deposits $250 and over	3,746	3,735
Other time deposits	156,228	170,236
Total deposits	323,242	330,831
Repurchase Agreements	1,659	1,716
Advances from the Federal Home Loan Bank	17,000	17,000
Subordinated debentures		11,021
Junior subordinated debentures		6,117
Accrued interest payable	123	5,958
Other liabilities	3,189	1,030
Total liabilities	345,213	373,673
Commitments and contingencies
Shareholders' Equity
Common stock, $0.01 par value, 500,000,000 shares authorized; 363,314,783 and 3,846,340 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	3,633	38
Capital surplus	81,903	30,220
Common stock warrants		1,012
Retained deficit	(48,177)	(54,807)
Accumulated other comprehensive loss	(101)	(1,608)
Total shareholders' equity (deficit)	37,267	(12,250)
Total liabilities and shareholders'equity (deficit)	382,480	361,423
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, value	9
Series T Preferred Stock [Member]
Shareholders' Equity
Preferred stock, value		$ 12,895

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	363,314,783	3,846,340
Common stock, shares outstanding	363,314,783	3,846,340
Series A Preferred Stock [Member]
Preferred stock, shares issued	905,316
Preferred stock, shares outstanding	905,316
Series T Preferred Stock [Member]
Preferred stock, shares issued		12,895
Preferred stock, shares outstanding		12,895

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (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	$ 2,581	$ 2,954	$ 5,064	$ 5,787
Investment securities:
Taxable	386	510	847	995
Nonmarketable equity securities	14	15	28	29
Other interest income	73	21	104	37
Total	3,054	3,500	6,043	6,848
Interest expense:
Deposits	512	641	1,035	1,289
Borrowings	97	497	620	994
Total	609	1,138	1,655	2,283
Net interest income	2,445	2,362	4,388	4,565
Provision for loan losses	3,560		4,984
Net interest income (loss) after provision for loan losses	(1,115)	2,362	(596)	4,565
Noninterest income:
Service charges on deposit accounts	189	201	350	384
Gains (losses) on sales of securities available-for-sale	(102)	78	(85)	212
Gains on sales of mortgage loans		63		125
Other fees and commissions	97	135	169	232
Brokerage commissions	4	16	13	31
Income from cash value of life insurance	110	106	220	213
Net loss on sales of assets		(9)		(15)
Gain from early extinguishment of debt	19,115		19,115
Other operating income	40	76	87	187
Total	19,453	666	19,869	1,369
Noninterest expenses:
Salaries and employee benefits	1,668	1,402	2,954	2,825
Net occupancy expense	265	289	540	584
Furniture and equipment expense	221	245	445	498
FDIC insurance premiums	206	363	515	725
Net cost of operations of other real estate owned	3,273	365	4,837	83
Other operating expenses	1,872	766	2,432	1,392
Total	7,505	3,430	11,723	6,107
Income (loss) before income taxes	10,833	(402)	7,550	(173)
Income tax expense	920	5	920	32
Net income (loss)	9,913	(407)	6,630	(205)
Preferred dividends		(296)		(593)
Net income (loss) available to common shareholders	$ 9,913	$ (703)	$ 6,630	$ (798)
Net income (loss) per common share
Basic (in dollars per shares)	$ 0.03	$ (0.18)	$ 0.04	$ (0.21)
Diluted (in dollars per shares)	$ 0.03	$ (0.18)	$ 0.04	$ (0.21)
Weighted average common shares outstanding
Basic and diluted (in shares)	319,862,554	3,816,340	161,854,447	3,816,340

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 9,913	$ (407)	$ 6,630	$ (205)
Unrealized gains (losses) on securities available-for-sale:
Net unrealized holding gains (losses) arising during the period net of tax	558	(1,162)	1,453	(454)
Reclassification to realized (gains) losses, net of tax	64	(78)	54	(212)
Other comprehensive income (loss)	622	(1,240)	1,507	(666)
Comprehensive income (loss)	$ 10,535	$ (1,647)	$ 8,137	$ (871)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Common Stock Warrant [Member]	Preferred Stock [Member]	Capital Surplus [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at beginning at Dec. 31, 2014	$ 38	$ 1,012	$ 12,895	$ 30,214	$ (54,561)	$ (845)	$ (11,247)
Balance at beginning (in shares) at Dec. 31, 2014	3,816,340		12,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Series T preferred stock and CPP Warrant
Net income					(205)		(205)
Other comprehensive income						(666)	(666)
Balance at End at Jun. 30, 2015	$ 38	1,012	$ 12,895	30,214	(54,766)	(1,511)	(12,118)
Balance at End (in shares) at Jun. 30, 2015	3,816,340		12,895
Balance at beginning at Dec. 31, 2015	$ 38	1,012	$ 12,895	30,220	(54,807)	(1,608)	(12,250)
Balance at beginning (in shares) at Dec. 31, 2015	3,846,340		12,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Series T preferred stock and CPP Warrant		(1,012)	$ (12,895)	13,778			(129)
Redemption of Series T preferred stock and CPP Warrant (in shares)			(12,895)
Issuance of Series A preferred stock			$ 9	9,044			9,053
Issuance of Series A preferred stock (in shares)			905,316
Issuance of common stock	$ 3,595			32,352			35,947
Issuance of common stock (in shares)	359,468,443
Stock issuance costs				(3,491)			(3,491)
Net income					6,630		6,630
Other comprehensive income						1,507	1,507
Balance at End at Jun. 30, 2016	$ 3,633		$ 9	$ 81,903	$ (48,177)	$ (101)	$ 37,267
Balance at End (in shares) at Jun. 30, 2016	363,314,783		905,316

CONDENSED CONSOLIDATED STATEME7

CONDENSED 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 (loss)	$ 6,630	$ (205)
Adjustments to reconcile net income (loss) to net cash (used by) provided by operating activities:
Depreciation and amortization	338	377
Amortization of debt issuance costs	2
Provision for loan losses	4,984
Amortization less accretion on investments	12	132
Net (gains) losses on sales of securities available-for-sale	85	(212)
Gains on sales of other real estate owned	(40)	(531)
Write-downs of other real estate owned	4,325	49
Gain from early extinguishment of debt	(19,115)
Decrease in accrued interest receivable	459	221
Increase in accrued interest payable	397	666
Income (net of mortality cost) on cash value of life insurance	(162)	(157)
(Increase) decrease in other assets	(1,397)	1,584
Increase (decrease) in other liabilities	2,159	(119)
Net cash (used by) provided by operating activities	(1,323)	1,805
Cash flows from investing activities:
Decrease in loans to customers, net	156	1,415
Purchases of securities available-for-sale	(23,232)	(11,000)
Maturities, calls and principal paydowns of securities available-for-sale	25,115	7,721
Proceeds from sales of securities available-for-sale	8,199	17,901
Redemptions of nonmarketable equity securities	240	12
Proceeds from sales of other real estate owned	2,849	4,271
Purchases of premises and equipment, net	220	(190)
Net cash provided by investing activities	13,547	20,130
Cash flows from financing activities:
Net increase in demand deposits and savings	6,408	13,693
Net decrease in time deposits	(13,997)	(20,524)
Net decrease in repurchase agreements	(57)	(546)
Redemption of subordinated debentures	(3,454)
Redemption of junior subordinated debentures	(617)
Redemption of Series T preferred stock and CPP Warrant	129
Issuance of Series A preferred stock	9,053
Issuance of common stock	35,947
Stock issuance costs	(3,491)
Net cash provided by (used by) financing activities	29,663	(7,377)
Net increase in cash and cash equivalents	41,887	14,558
Cash and cash equivalents, beginning of period	22,137	28,527
Cash and cash equivalents, end of period	64,024	43,085
Cash paid during the period for:
Income taxes
Interest	1,258	1,617
Noncash investing and financing activities:
Transfers of loans to loans held for sale	4,280
Transfers of loans to other real estate owned	766	2,185
Transfers of premises and equipment to assets held for sale	768	3,927
Change in unrealized gains (losses) on securities available-for-sale	$ 1,447	$ (666)

ORGANIZATION, SIGNIFICANT ACCOU

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS	NOTE 1 – ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS Organization and Significant Accounting Policies Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with the requirements for interim financial statements and, accordingly, they are condensed and omit disclosures, which would substantially duplicate those contained in the most recent annual report to shareholders. The financial statements as of June 30, 2016 and for the interim periods ended June 30, 2016 and 2015 are unaudited and, in our opinion, include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the six and three month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The financial information as of December 31, 2015 has been derived from the audited financial statements as of that date. For further information, refer to the financial statements and the notes included in HCSB Financial Corporation’s 2016 Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2016, as amended on Form 10-K/A which was filed with the SEC on April 1, 2016. Management’s Estimates Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, and the carrying amount of real estate acquired in connection with foreclosures or in satisfaction of loans. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowances for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for losses on loans and foreclosed real estate may change materially in the near term. Investment Securities Nonmarketable Equity Securities Loans Held for Sale Loans Receivable The accrual of interest income is generally discontinued when a loan becomes contractually 90 days past due as to principal or interest. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and accrued interest. Loan origination and commitment fees and certain direct loan origination costs (principally salaries and employee benefits) are deferred and amortized to income over the contractual life of the related loans or commitments, adjusted for prepayments, using the straight-line method. Loans are impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans are subject to these criteria except for smaller balance homogeneous loans that are collectively evaluated for impairment and loans measured at fair value or at the lower of cost or fair value. The Company considers its consumer installment portfolio and home equity lines as such exceptions. Therefore, loans within the real estate and commercial loan portfolios are reviewed individually. Impairment of a loan is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent. When management determines that a loan is impaired, the difference between the Company’s investment in the related loan and the present value of the expected future cash flows, or the fair value of the collateral, is charged off with a corresponding entry to the allowance for loan losses or a specific reserve is set aside within the allowance for loan losses. The accrual of interest is discontinued on an impaired loan when management determines the borrower may be unable to meet payments as they become due. Concentrations of Credit Risk The Company makes loans to individuals and small businesses for various personal and commercial purposes primarily throughout Horry County in South Carolina and Columbus and Brunswick counties of North Carolina. The Company’s loan portfolio is not concentrated in loans to any single borrower or a relatively small number of borrowers. However, the loan portfolio does include a concentration in loans secured by residential and commercial real estate and commercial and industrial non-real estate loans. These loans are especially susceptible to being adversely effected by unfavorable economic conditions. The commercial real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. If real estate values in our market areas decline, it is also more likely that we would be required to increase our allowance for loan losses. In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk from concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Management has determined that there is no concentration of credit risk associated with its lending policies or practices. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan’s life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk. The Company’s investment portfolio consists principally of obligations of the United States, its agencies or its corporations and general obligation municipal securities. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant. Allowance for Loan Losses The allowance is subject to examination by regulatory agencies, which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions, and other adequacy tests. In addition, such regulatory agencies could require the Company to adjust its allowance based on information available to them at the time of their examination. The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to that used to determine the allowance for loan losses adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio. Premises, Furniture and Equipment Maintenance and repairs are charged to current expense as incurred, and the costs of major renewals and improvements are capitalized. Other Real Estate Owned Any write-downs at the dates of acquisition are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent write-downs, and gains and losses on disposal are included in net cost (profit) of operations of other real estate owned on the statement of operations. Income and Expense Recognition Income Taxes Deferred income taxes are determined using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax impacts of the differences between the book and tax bases of assets and liabilities and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to the Company’s judgment that realization is more likely than not. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties, if any, are recognized as a component of income tax expense. The Company reviews the deferred tax assets for recoverability based on history of earnings, expectations for future earnings and expected timing of reversals of temporary differences. Realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income available under tax law, including future reversals of existing temporary differences, future taxable income exclusive of reversing differences, taxable income in prior carryback years, projections of future operating results, cumulative tax losses over the past three years, tax loss deductibility limitations, and available tax planning strategies. If, based on available information, it is more likely than not that the deferred income tax asset will not be realized, a valuation allowance against the deferred tax asset must be established with a corresponding charge to income tax expense. The deferred tax assets and valuation allowance are evaluated each quarter, and a portion of the valuation allowance may be reversed in future periods. The determination of how much of the valuation allowance that may be reversed and the timing is based on future results of operation and the amount and timing of actual loan charge-offs and asset write-downs. Due to the private placement in April 2016 that removed the going concern considerations, the Company recorded a deferred tax asset of $59 thousand related to unrealized losses in the securities available-for-sale portfolio. The remaining deferred tax asset was offset by a valuation allowance. At December 31, 2015, the Company’s deferred tax asset was offset in its entirety by a valuation allowance. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore no reserves for uncertain income tax positions have been recorded. Net Income (Loss) Per Common Share Comprehensive Income Statements of Cash Flows Off-Balance Sheet Financial Instruments Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments were effective for the Company on January 1, 2016. The Company will apply the guidance prospectively. The amendments had no effect on the financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments were effective for the Company on January 1, 2016 and did not have a material effect on the financial statements. In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs. The amendments were effective for the Company on January 1, 2016. As a result, all debt issuance costs were reclassified to offset related debt. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (“ASC”), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance were effective for the Company on January 1, 2016. The amendments had no effect on the financial statements. In August 2015, the FASB deferred the effective date of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Risks and Uncertainties The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances and operating restrictions from the regulators’ judgments based on information available to them at the time of their examination. Reclassifications Recent Developments On April 11, 2016, the Company completed a private placement of 359,468,443 shares of common stock at $0.10 On July 31, 2010, the Company completed a private placement of subordinated promissory notes that totaled $12.1 million. The notes bore interest at a rate equal to the current Prime Rate in effect, as published by the Wall Street Journal, plus 3%; provided, that the interest rate would not be less than 8% per annum or more than 12% per annum. Beginning in October 2011, the Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the subordinated promissory notes. Effective as of September 16, 2015, the Company, the Bank, and certain other defendants entered into a class action settlement agreement in potential settlement of the putative class action lawsuit initiated by three holders of the Company’s subordinated promissory notes, on behalf of themselves and as representatives of a class of similarly situated purchasers of the Company’s subordinated promissory notes, with respect to alleged wrongful conduct associated with purchases of the subordinated promissory notes, including fraud, violation of state securities statutes, and negligence. On March 2, 2016, the Court of Common Pleas for the Fifteenth Judicial District, State of South Carolina, County of Horry entered a final order of approval approving the class action settlement agreement. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the class action settlement agreement, the Company established a settlement fund of approximately $2.4 million, which represented 20% of the principal of subordinated promissory notes issued by the Company. The settlement fund was used to redeem the subordinated promissory notes held by class members. Also on April 11, 2016, the Company settled, pursuant to previously executed binding settlement agreements, with all subordinated promissory note holders who opted out of the class action settlement. These settlements, including the class action settlement, constituted the full satisfaction of the principal and interest owed on, and required the immediate dismissal of all pending litigation related to, the respective subordinated promissory notes. In each case, the Company and the Bank also obtained a full and complete release of all claims asserted or that could have been asserted with respect to the subordinated promissory notes. Refer to Note 8 to our Financial Statements for additional information on the subordinated promissory notes. On March 6, 2009, as part of the Troubled Asset Relief Program (the “TARP”) Capital Purchase Program (the “CPP”) established by the U.S. Department of the Treasury (the “U.S. Treasury”) under the Emergency Economic Stabilization Act of 2009, the Company issued and sold to the U.S. Treasury (i) 12,895 shares of fixed rate cumulative perpetual preferred stock, Series T, having a liquidation preference of $1,000 per share (the “Series T preferred stock”), and (ii) a ten-year warrant to purchase up to 91,714 shares of its common stock at an initial exercise price of $21.09 per share (the “CPP Warrant”), for an aggregate purchase price of $12.9 million in cash. Beginning in February 2011, the Federal Reserve Bank of Richmond required the Company to defer dividend payments on the Series T preferred stock. On February 29, 2016, the Company entered into a securities purchase agreement with the U.S. Treasury, pursuant to which the Company agreed to repurchase all 12,895 shares of the Series T preferred stock for $129 thousand, plus reimbursement of attorneys’ fees and other expenses incurred by the U.S Treasury not to exceed $25 thousand. Under the terms of the securities purchase agreement, the U.S. Treasury also agreed to waive any and all unpaid dividends on the Series T preferred stock and to cancel the CPP Warrant. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the securities purchase agreement, the Company repurchased all 12,895 shares of the Series T preferred stock from the U.S. Treasury for $129 thousand and the U.S. Treasury canceled the CPP Warrant. Refer to Note 9 to our Financial Statements for additional information on the Series T preferred stock. On December 21, 2004, the Trust issued and sold a total of 6,000 trust preferred securities, with $1,000 liquidation amount per capital security and a maturity of December 31, 2034, to institutional buyers in a pooled trust preferred issue. The Company received from the Trust the $6.0 million proceeds from the issuance of the securities and the $186 thousand initial proceeds from the capital investment in the Trust and, accordingly, has shown the funds due to the trust as a $6.2 million junior subordinated debenture. Beginning in February 2011, the Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the trust preferred securities. The Company was permitted to defer these interest payments for up to 20 consecutive quarterly periods, or until March 15, 2016, at which point all of the deferred interest, including interest accrued on such deferred interest, would become due and payable. On February 29, 2016, the Company entered into a securities purchase agreement with Alesco Preferred Funding VI LTD (“Alesco”), pursuant to which the Company agreed to repurchase the trust preferred securities for $600 thousand, plus reimbursement of attorneys’ fees and other expenses incurred by Alesco not to exceed $25 thousand. Alesco also agreed to forgive any and all unpaid interest on the trust preferred securities. On March 16, 2016, the Company received a notice of default from The Bank of New York Mellon Trust Company, N.A., in its capacity as trustee, relating to the trust preferred securities. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the securities purchase agreement, the Company repurchased all of the trust preferred securities from Alesco for $600 thousand plus $17 thousand in direct legal expenses. Refer to Note 7 to our Financial Statements for additional information on the trust preferred securities. After taking into account the discounted repurchase or redemption prices for the Series T preferred stock, the trust preferred securities and the subordinated promissory notes, each as described above, as well as the forgiveness of accrued and deferred interest, legal fees, amounts paid in settlement of litigation, income taxes, and other expenses incurred in connection with these transactions, the Company recognized a gain, net of income taxes, of approximately $13.8 million on the repurchase of the Series T preferred stock, which is included in capital surplus and an aggregate gain of $19.1 million from the extinguishment of debt which is included in noninterest income. See the respective notes referred to above for additional information. On July 7, 2016, the Company sold $4.3 million of nonaccrual loans and $270 thousand of OREO. The loans and OREO were recorded at fair value as of June 30, 2016 which was equal to the sales contract value and therefore resulted in no gain or loss. Refer to Note 4 to our Financial Statements for additional information.

REGULATORY MATTERS AND OTHER CO

REGULATORY MATTERS AND OTHER CONSIDERATIONS	6 Months Ended
	Jun. 30, 2016
Regulatory Matters And Going Concern Considerations [Abstract]
REGULATORY MATTERS AND OTHER CONSIDERATIONS	NOTE 2 – REGULATORY MATTERS AND OTHER CONSIDERATIONS Consent Order with the Federal Deposit Insurance Corporation and South Carolina Board of Financial Institutions On February 10, 2011, the Bank entered into the Consent Order with the FDIC and the State Board. The Consent Order conveys specific actions needed to address the Bank’s current financial condition, primarily related to capital planning, liquidity/funds management, policy and planning issues, management oversight, loan concentrations and classifications, and non-performing loans. A summary of the requirements of the Consent Order and the Bank’s status on complying with the Consent Order is as follows: Requirements of the Consent Order Bank’s Compliance Status Achieve and maintain, by July 10, 2011, Total Risk Based capital at least equal to 10% of risk-weighted assets and Tier 1 capital at least equal to 8% of total assets. Following the closing of the 2016 private placement on April 11, 2016, the Company contributed $38.0 million to the Bank as a capital contribution. As a result, the Bank had Total Risk Based capital equal to 17.58% of risk-weighted assets and Tier 1 capital equal to 9.90% of average assets as of June 30, 2016. Accordingly, we believe that the Bank is now in compliance with this provision of the Consent Order. Submit, by April 11, 2011, a written capital plan to the supervisory authorities. We believe we have complied with this provision of the Consent Order. Establish, by March 12, 2011, a plan to monitor compliance with the Consent Order, which shall be monitored by the Bank’s Directors’ Committee. We believe we have complied with this provision of the Consent Order. The Directors’ Committee meets monthly and each meeting includes reviews and discussions of all areas required in the Consent Order. Develop, by May 11, 2011, a written analysis and assessment of the Bank’s management and staffing needs. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to perform an assessment of the Bank’s staffing needs to ensure the Bank has an appropriate organizational structure with qualified management in place. The Board of Directors has reviewed all recommendations regarding the Bank’s organizational structure. Notify the supervisory authorities in writing of the resignation or termination of any of the Bank’s directors or senior executive officers. We believe we have complied with this provision of the Consent Order. Eliminate, by March 12, 2011, by charge-off or collection, all assets or portions of assets classified “Loss” and 50% of those assets classified “Doubtful.” We believe we have complied with this provision of the Consent Order. Review and update, by April 11, 2011, its policy to ensure the adequacy of the Bank’s allowance for loan and lease losses, which must provide for a review of the Bank’s allowance for loan and lease losses at least once each calendar quarter. We believe we have complied with this provision of the Consent Order. Submit, by April 11, 2011, a written plan to the supervisory authorities to reduce classified assets, which shall include, among other things, a reduction of the Bank’s risk exposure in relationships with assets in excess of $750,000 which are criticized as “Substandard” or “Doubtful”. In accordance with the approved plan, reduce assets classified in the June 30, 2010 Report of Examination by 65% by August 11, 2012 and by 75% by February 9, 2013. We believe we have complied with this provision of the Consent Order. The written plan was submitted and approved and assets classified in the June 30, 2010 Report of Examination have been reduced by 85.35% as of June 30, 2016. Revise, by April 11, 2011, its policies and procedures for managing the Bank’s Adversely Classified Other Real Estate Owned. We believe we have complied with this provision of the Consent Order. Not extend any additional credit to any borrower who has a loan or other extension of credit from the Bank that has been charged-off or classified, in whole or in part, “Loss” or “Doubtful” and is uncollected. In addition, the Bank may not extend any additional credit to any borrower who has a loan or other extension of credit from the Bank that has been criticized, in whole or in part, “Substandard” and is uncollected, unless the Bank’s board of directors determines that failure to extend further credit to a particular borrower would be detrimental to the best interests of the Bank. We believe we have complied with this provision of the Consent Order. In the second quarter of 2010, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. An independent review of the Bank’s credit portfolio was most recently completed in the first quarter of 2016. Perform, by April 11, 2011, a risk segmentation analysis with respect to the Bank’s Concentrations of Credit and develop a written plan to systematically reduce any segment of the portfolio that is an undue concentration of credit. We believe we have complied with this provision of the Consent Order. Review, by April 11, 2011 and annually thereafter, the Bank’s loan policies and procedures for adequacy and, based upon this review, make all appropriate revisions to the policies and procedures necessary to enhance the Bank’s lending functions and ensure their implementation. We believe we have complied with this provision of the Consent Order. As noted above, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. Adopt, by May 11, 2011, an effective internal loan review and grading system to provide for the periodic review of the Bank’s loan portfolio in order to identify and categorize the Bank’s loans, and other extensions of credit which are carried on the Bank’s books as loans, on the basis of credit quality. We believe we have complied with this provision of the Consent Order. As noted above, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. Review and update, by May 11, 2011, its written profit plan to ensure the Bank has a realistic, comprehensive budget for all categories of income and expense, which must address, at minimum, goals and strategies for improving and sustaining the earnings of the Bank, the major areas in and means by which the Bank will seek to improve the Bank’s operating performance, realistic and comprehensive budgets, a budget review process to monitor income and expenses of the Bank to compare actual results with budgetary projections, assess that operating assumptions that form the basis for budget projections and adequately support major projected income and expense components of the plan, and coordination of the Bank’s loan, investment, and operating policies and budget and profit planning with the funds management policy. We believe we have complied with this provision of the Consent Order. The Bank engaged an independent third party to assist management with a strategic plan to help restructure its balance sheet, increase capital ratios, return to profitability and maintain adequate liquidity. Review and update, by May 11, 2011, its written plan addressing liquidity, contingent funding, and asset liability management. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to assist management in its development of a strategic plan that achieves all requirements of the Consent Order. The strategic plan reflects the Bank’s plans to restructure its balance sheet, increase capital ratios, return to profitability, and maintain adequate liquidity. The Board of Directors has reviewed and adopted the Bank’s strategic plan. Eliminate, by March 12, 2011, all violations of law and regulation or contraventions of policy set forth in the FDIC’s safety and soundness examination of the Bank in November 2009. We believe we have complied with this provision of the Consent Order. Not accept, renew, or rollover any brokered deposits unless it is in compliance with the requirements of 12 C.F.R. § 337.6(b). We believe we have complied with this provision of the Consent Order. Since entering into the Consent Order, the Bank has not accepted, renewed, or rolled-over any brokered deposits. Limit asset growth to 5% per annum. We believe we have complied with this provision of the Consent Order. Not declare or pay any dividends or bonuses or make any distributions of interest, principal, or other sums on subordinated debentures without the prior approval of the supervisory authorities. We believe we have complied with this provision of the Consent Order. The Bank shall comply with the restrictions on the effective yields on deposits as described in 12 C.F.R. § 337.6. We believe we have complied with this provision of the Consent Order. Furnish, by March 12, 2011 and within 30 days of the end of each quarter thereafter, written progress reports to the supervisory authorities detailing the form and manner of any actions taken to secure compliance with the Consent Order. We believe we have complied with this provision of the Consent Order, and we have submitted the required progress reports to the supervisory authorities. Submit, by March 12, 2011, a written plan to the supervisory authorities for eliminating its reliance on brokered deposits. We believe we have complied with this provision of the Consent Order. Adopt, by April 11, 2011, an employee compensation plan after undertaking an independent review of compensation paid to all of the Bank’s senior executive officers. We believe we have complied with this provision of the Consent Order. Prepare and submit, by May 11, 2011, its written strategic plan to the supervisory authorities. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to assist management in its development of a strategic plan that achieves all requirements of the Consent Order. The Board of Directors has reviewed and adopted the Bank’s strategic plan. Following the closing of the 2016 private placement, the Bank believes that it is currently in substantial compliance with the Consent Order. Nevertheless, the determination of the Bank’s compliance will be made by the FDIC and the State Board, and we do not expect to be released from the Consent Order until completion of a full examination cycle. There can be no assurances that this will happen or that the Consent Order will be lifted in a timely manner. Until the Consent Order is lifted, we will be subject to limits on our growth and on hiring additional personnel, among other restrictions. In addition, the supervisory authorities may amend the Consent Order based on the results of their ongoing examinations. Written Agreement On May 9, 2011, the Company entered into a Written Agreement with the Federal Reserve Bank of Richmond. The Written Agreement is designed to enhance the Company’s ability to act as a source of strength to the Bank. The Written Agreement contains provisions similar to those in the Bank’s Consent Order. Specifically, pursuant to the Written Agreement, the Company agreed, among other things, to seek the prior written approval of the Federal Reserve Bank of Richmond before undertaking any of the following activities: • declaring or paying any dividends, • directly or indirectly taking dividends or any other form of payment representing a reduction in capital from the Bank, • making any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities, • directly or indirectly, incurring, increasing or guarantying any debt, and • directly or indirectly, purchasing or redeeming any shares of its stock. The Company also agreed to comply with certain notice provisions set forth in the Federal Deposit Insurance Act and regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve”) in appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position. The Company is also required to comply with certain restrictions on indemnification and severance payments pursuant to the Federal Deposit Insurance Act and FDIC regulations. We believe we are currently in substantial compliance with the Written Agreement. On August 18, 2014, the Federal Reserve Bank of Richmond informed the Company that it is required to repay two notes in the amount of $1.8 million to the Bank as soon as the Company has the funds available to do so for repayment of loans deemed made from the Bank to the Company. The Bank is a general unsecured creditor of the Company with respect to these loans. The Company made these payments to the Bank shortly following the closing of the private placement on April 11, 2016. Other Considerations The effects of the Great Recession continue to be felt across many industries, with financial services and residential real estate being particularly hard hit. The Bank, with a loan portfolio consisting of a concentration in commercial real estate loans, experienced a decline in the value of the collateral securing its loan portfolio as well as a rapid deterioration in its borrowers’ cash flow and ability to repay their outstanding loans to the Bank. As a result, the Bank’s level of nonperforming assets increased substantially during 2010 and 2011. However, since 2012, the Bank’s nonperforming assets have begun to stabilize. The Bank also entered into an agreement to sell approximately $4.3 million of its nonperforming loans which settled subsequent to June 30, 2016. These loans were recorded as loans held for sale and were not included in nonperforming loans at June 30, 2016 but were considered as nonperforming assets. As a result, the Bank’s nonperforming assets at June 30, 2016 were $11.9 million compared to $22.4 million at December 31, 2015. As a percentage of total assets, nonperforming assets were 3.10% and 6.19% as of June 30, 2016 and December 31, 2015, respectively. As a percentage of total loans, nonperforming loans were 0.17% and 4.18% as of June 30, 2016 and December 31, 2015, respectively. The Company and the Bank operate in a highly regulated industry and must plan for the liquidity needs of each entity separately. A variety of sources of liquidity have historically been available to the Bank to meet its short-term and long-term funding needs. Although a number of these sources have been limited following execution of the Consent Order, management has prepared forecasts of these sources of funds and the Bank’s projected uses of funds during 2016 in an effort to ensure that the sources available are sufficient to meet the Bank’s projected liquidity needs for this period. Prior to the most recent economic downturn, the Company, if needed, would have relied on dividends from the Bank as its primary source of liquidity. The Company is a legal entity separate and distinct from the Bank. However, various legal limitations restrict the Bank from lending or otherwise supplying funds to the Company to meet its obligations, including paying dividends. In addition, the terms of the Consent Order further limit the Bank’s ability to pay dividends to the Company to satisfy its funding needs. Management believes the Bank’s liquidity sources are adequate to meet its needs for at least the next 12 months.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 3 - INVESTMENT SECURITIES Securities available-for-sale consisted of the following: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2016 Government-sponsored enterprises $ 21,638 $ 192 $ (50 ) $ 21,780 Mortgage-backed securities 53,839 302 (753 ) 53,388 State and political subdivisions 5,653 148 — 5,801 Total $ 81,130 $ 642 $ (803 ) $ 80,969 December 31, 2015 Government-sponsored enterprises $ 36,720 $ — $ (688 ) $ 36,032 Mortgage-backed securities 53,368 54 (977 ) 52,445 State and political subdivisions 1,221 5 (2 ) 1,224 Total $ 91,309 $ 59 $ (1,667 ) $ 89,701 The following is a summary of maturities of securities available-for-sale as of June 30, 2016. The amortized cost and estimated fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. June 30, 2016 (in thousands ) Amortized Cost Due Due After One After Five Within Through Through After Ten Market One Year Five Years Ten Years Years Total Value Investment securities Government sponsored enterprises $ — $ 322 $ 2,000 $ 19,316 $ 21,638 $ 21,780 Mortgage backed securities — — 10,239 43,600 53,839 53,388 State and political subdivisions — — 2,706 2,947 5,653 5,801 Total $ — $ 322 $ 14,945 $ 65,863 $ 81,130 $ 80,969 The following table shows gross unrealized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous unrealized loss position, at: June 30, 2016 Less than twelve months Twelve months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Government-sponsored enterprises $ 6,912 $ (50 ) $ — $ — $ 6,912 $ (50 ) Mortgage-backed securities 13,559 (163 ) 17,649 (590 ) 31,208 (753 ) Total $ 20,471 $ (213 ) $ 17,649 $ (590 ) $ 38,120 $ (803 ) December 31, 2015 Less than twelve months Twelve months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Government-sponsored enterprises $ 31,490 $ (558 ) $ 4,543 $ (130 ) $ 36,033 $ (688 ) Mortgage-backed securities 28,024 (354 ) 17,008 (623 ) 45,032 (977 ) State and political subdivisions 617 (2 ) — — 617 (2 ) Total $ 60,131 $ (914 ) $ 21,551 $ (753 ) $ 81,682 $ (1,667 ) Management evaluates its investment portfolio periodically to identify any impairment that is other than temporary. At June 30, 2016, the Company had 16 mortgage-backed securities that have been in an unrealized loss position for more than twelve months. Management believes these losses are temporary and are a result of the current interest rate environment. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. At June 30, 2016 and December 31, 2015, investment securities with a book value of $35.2 million and $36.7 million, respectively, and a market value of $35.4 million and $36.1 million, respectively, were pledged to secure deposits. Proceeds from sales of available-for-sale securities were $8.2 million and $17.9 million for the six-month periods ended June 30, 2016 and 2015, respectively and $4.0 million and $11.5 million for the three-month periods ended June 30, 2016 and 2015, respectively. Gross realized gains and losses on sales of available-for-sale securities for the periods ended were as follows: (Dollars in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Gross realized gains $ 20 $ 78 $ 37 $ 212 Gross realized losses (122 ) — (122 ) — Net gain $ (102 ) $ 78 $ (85 ) $ 212

LOAN PORTFOLIO

LOAN PORTFOLIO	6 Months Ended
	Jun. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]
LOAN PORTFOLIO	NOTE 4 – LOAN PORTFOLIO Loans consisted of the following: June 30, December 31, (Dollars in thousands) 2016 2015 Residential $ 70,577 $ 75,081 Commercial Real Estate 86,998 101,291 Commercial 36,760 27,881 Consumer 4,737 5,114 Total gross loans $ 199,072 $ 209,367 At June 30, 2016, $4.3 million of loans receivable were transferred to loans held for sale. The loans were recorded at fair value on June 30, 2016, which was equal to the sales contract value. Differences between the carrying values and contract values were charged off through the allowance for loan losses. Prior to the transfer to loans held for sale, all of the loans were classified as nonaccrual and $3.3 million of the loans were classified as TDRs with an initial carrying value of $5.5 million. These loans have been presented separately and consisted of the following: Initial Balance Carrying Charged-off June 30, (Dollars in thousands) Value Amount 2016 Residential $ 1,830 $ (744 ) $ 1,086 Commercial Real Estate 4,749 (1,930 ) 2,819 Commercial 615 (250 ) 365 Consumer 17 (7 ) 10 Total loans held for sale $ 7,211 $ (2,931 ) $ 4,280 Provision and Allowance for Loan Losses An allowance for loan losses is maintained at a level deemed appropriate by management to adequately provide for known and inherent losses in the loan portfolio. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. In evaluating the adequacy of the Company’s loan loss reserves, management identifies loans believed to be impaired. Impaired loans are those not likely to be repaid as to principal and interest in accordance with the terms of the loan agreement. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, or liquidation value and discounted cash flows. Reserves are maintained for each loan in which the principal balance of the loan exceeds the net present value of cash flows. In addition to the specific allowance for individually reviewed loans, a general allowance for potential loan losses is established based on management’s review of the composition of the loan portfolio with the purpose of identifying any concentrations of risk, and an analysis of historical loan charge-offs and recoveries. The final component of the allowance for loan losses incorporates management’s evaluation of current economic conditions and other risk factors which may impact the inherent losses in the loan portfolio. These evaluations are highly subjective and require that a great degree of judgmental assumptions be made by management. This component of the allowance for loan losses includes additional estimated reserves for internal factors such as changes in lending staff, loan policy and underwriting guidelines, and loan seasoning and quality, and external factors such as national and local economic trends and conditions. Based on management observation, judgment, and experience, environmental factors used in the allowance for loan loss model were reassessed during the second quarter of 2016 for all loan classes. Management also determined that a look back period of twelve quarters would be more appropriate in light of recent changes to the economy. The allowance was previously based on a six quarter look back period. The impact of the change to the model resulted in a $2.1 million increase to the loan loss reserves as of the time of the change. The following table details the activity within our allowance for loan losses as of and for the six months ended June 30, 2016 and 2015 and as of and for the year ended December 31, 2015, by portfolio segment: June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 952 $ 2,543 $ 80 $ 1,026 $ 4,601 Charge-offs (1,068 ) (4,591 ) (32 ) (777 ) (6,468 ) Recoveries 1,253 50 12 60 1,375 Provision (402 ) 4,359 66 961 4,984 Ending balance $ 735 $ 2,361 $ 126 $ 1,270 $ 4,492 Ending balances: Individually evaluated for impairment $ 46 $ 389 $ 7 $ 403 $ 845 Collectively evaluated for impairment $ 689 $ 1,972 $ 119 $ 867 $ 3,647 Loans receivable: Ending balance, total $ 36,760 $ 86,998 $ 4,737 $ 70,577 $ 199,072 Ending balances: Individually evaluated for impairment $ 1,651 $ 14,038 $ 95 $ 7,709 $ 23,493 Collectively evaluated for impairment $ 35,109 $ 72,960 $ 4,642 $ 62,868 $ 175,579 June 30, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 597 $ 3,591 $ 185 $ 1,414 $ 5,787 Charge-offs (451 ) (253 ) (47 ) (357 ) (1,108 ) Recoveries 157 688 12 63 920 Provision 670 (902 ) 70 162 — Ending balance $ 973 $ 3,124 $ 220 $ 1,282 $ 5,599 Ending balances: Individually evaluated for impairment $ 148 $ 786 $ 9 $ 585 $ 1,528 Collectively evaluated for impairment $ 825 $ 2,338 $ 211 $ 697 $ 4,071 Loans receivable: Ending balance, total $ 34,603 $ 108,817 $ 5,877 $ 82,001 $ 231,298 Ending balances: Individually evaluated for impairment $ 2,929 $ 24,164 $ 112 $ 10,905 $ 38,110 Collectively evaluated for impairment $ 31,674 $ 84,653 $ 5,765 $ 71,096 $ 193,188 December 31, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 597 $ 3,591 $ 185 $ 1,414 $ 5,787 Charge-offs (539 ) (1,212 ) (81 ) (501 ) (2,333 ) Recoveries 200 727 37 183 1,147 Provision 694 (563 ) (61 ) (70 ) — Ending balance $ 952 $ 2,543 $ 80 $ 1,026 $ 4,601 Ending balances: Individually evaluated for impairment $ 137 $ 396 $ 10 $ 560 $ 1,103 Collectively evaluated for impairment $ 815 $ 2,147 $ 70 $ 466 $ 3,498 Loans receivable: Ending balance, total $ 27,881 $ 101,291 $ 5,114 $ 75,081 $ 209,367 Ending balances: Individually evaluated for impairment $ 2,727 $ 21,582 $ 134 $ 9,418 $ 33,861 Collectively evaluated for impairment $ 25,154 $ 79,709 $ 4,980 $ 65,663 $ 175,506 Loan Performance and Asset Quality Generally, a loan will be placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the loan is doubtful. When a loan is placed in nonaccrual status, interest accruals are discontinued and income earned but not collected is reversed. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce principal. The following chart summarizes delinquencies and nonaccruals, by portfolio class, as of June 30, 2016 and December 31, 2015. June 30, 2016 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ 104 $ 1 $ — $ 105 $ 36,655 $ 36,760 $ 118 Commercial real estate: Construction 22 — — 22 19,721 19,743 — Other 202 — — 202 67,053 67,255 59 Real Estate: Residential 320 143 37 500 70,077 70,577 148 Consumer: Other 16 15 — 31 4,158 4,189 7 Revolving credit — — — — 548 548 — Total $ 664 $ 159 $ 37 $ 860 $ 198,212 $ 199,072 $ 332 December 31, 2015 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ 321 $ 110 $ 1 $ 432 $ 27,449 $ 27,881 $ 139 Commercial real estate: Construction 25 — 3,186 3,211 27,321 30,532 3,384 Other 973 — 3,046 4,019 66,740 70,759 3,895 Real Estate: Residential 2,887 142 948 3,977 71,104 75,081 1,314 Consumer: Other 108 18 10 136 4,395 4,531 10 Revolving credit 4 — — 4 579 583 — Total $ 4,318 $ 270 $ 7,191 $ 11,779 $ 197,588 $ 209,367 $ 8,742 There were no loans outstanding 90 days or more and still accruing interest at June 30, 2016 or December 31, 2015. Loans held for sale are summarized as follows, by portfolio class, as of June 30, 2016. June 30, 2016 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ — $ 35 $ 255 $ 290 $ 75 $ 365 $ 365 Commercial real estate: Construction — — 18 18 235 253 253 Other — 59 2,296 2,355 211 2,566 2,566 Real Estate: Residential 41 248 295 584 502 1,086 1,086 Consumer: Other — 7 — 7 3 10 10 Revolving credit — — — — — — — Total $ 41 $ 349 $ 2,864 $ 3,254 $ 1,026 $ 4,280 $ 4,280 The following table summarizes management’s internal credit risk grades, by portfolio class, as of June 30, 2016 and December 31, 2015. June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ 2,177 $ — $ 392 $ 84 $ 2,653 Grade 2 – Modest 450 140 44 433 1,067 Grade 3 – Average 3,645 8,404 148 4,936 17,133 Grade 4 – Satisfactory 17,357 45,297 3,542 46,860 113,056 Grade 5 – Watch 11,435 18,733 325 10,378 40,871 Grade 6 – Special Mention 1,137 1,840 203 1,447 4,627 Grade 7 – Substandard 559 12,584 83 6,439 19,665 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 36,760 $ 86,998 $ 4,737 $ 70,577 $ 199,072 December 31, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ 975 $ — $ 434 $ — $ 1,409 Grade 2 – Modest 561 1,024 37 277 1,899 Grade 3 – Average 4,934 5,620 218 4,716 15,488 Grade 4 – Satisfactory 14,693 58,549 4,031 53,187 130,460 Grade 5 – Watch 2,445 9,654 152 2,988 15,239 Grade 6 – Special Mention 992 6,321 98 3,544 10,955 Grade 7 – Substandard 3,281 20,123 144 10,369 33,917 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 27,881 $ 101,291 $ 5,114 $ 75,081 $ 209,367 Loans held for sale by management’s internal credit risk grades, by portfolio class, as of June 30, 2016 were as follows: June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ — $ — $ — $ — $ — Grade 2 – Modest — — — — — Grade 3 – Average — — — — — Grade 4 – Satisfactory — — — — — Grade 5 – Watch 12 — — — 12 Grade 6 – Special Mention — — — — — Grade 7 – Substandard 353 2,819 10 1,086 4,268 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 365 $ 2,819 $ 10 $ 1,086 $ 4,280 Loans graded one through four are considered “pass” credits. As of June 30, 2016, $133.9 million, or 67.3% of the loan portfolio, had a credit grade of “minimal,” “modest,” “average” or “satisfactory.” For loans to qualify for these grades, they must be performing relatively close to expectations, with no significant departures from the intended source and timing of repayment. Loans with a credit grade of “watch” and “special mention” are not considered classified; however, they are categorized as a watch list credit and are considered potential problem loans. This classification is utilized when there is an initial concern about the financial health of a borrower. These loans are designated as such in order to be monitored more closely than other credits in the portfolio. Loans on the watch list are not considered problem loans until they are determined by management to be classified as substandard. As of June 30, 2016, loans with a credit grade of “watch” and “special mention” totaled $45.5 million. Watch list loans are considered potential problem loans and are monitored as they may develop into problem loans in the future. Loans graded “substandard” or greater are considered classified credits. At June 30, 2016, classified loans totaled $19.7 million, with $19.0 million being collateralized by real estate. This includes $12.9 million in troubled debt restructurings (“TDRs”), of which $12.9 million were performing as expected under the new terms and $4 thousand were considered to be nonperforming. Classified credits are evaluated for impairment on a quarterly basis. Loans showing improvement may be upgraded to “watch”. The Bank identifies impaired loans through its normal internal loan review process. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan-by-loan basis by calculating either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Any resultant shortfall is charged to provision for loan losses and is classified as a specific reserve. When an impaired loan is ultimately charged-off, the charge-off is taken against the specific reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Impaired consumer and residential loans are identified for impairment disclosures, however, it is policy to individually evaluate for impairment all loans with a credit grade of “substandard” or greater that have an outstanding balance of $50 thousand or greater, and all loans with a credit grade of “special mention” that have outstanding principal balance of $100 thousand or greater. Impaired loans are valued on a nonrecurring basis at the lower of cost or market value of the underlying collateral or based on the net present value of cash flows. For loans valued based on collateral, market values were obtained using independent appraisals, updated every 18 to 24 months, in accordance with our reappraisal policy, or other market data such as recent offers to the borrower. At June 30, 2016, the recorded investment in impaired loans was $23.5 million, compared to $33.9 million at December 31, 2015. The following chart details our impaired loans, which includes TDRs totaling $21.8 million and $29.1 million, by category, as of June 30, 2016 and December 31, 2015, respectively: June 30, 2016 ( Dollars in thousands Six months ended Three months ended Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment R ecognized With no related allowance recorded: Commercial $ 635 $ 818 $ — $ 860 $ 22 $ 791 $ 10 Commercial real estate 10,195 13,241 — 10,345 249 10,222 117 Residential 3,821 3,979 — 3,846 108 3,831 57 Consumer 45 45 — 48 2 46 — Total: $ 14,696 $ 18,083 $ — $ 15,099 $ 381 $ 14,890 $ 184 With an allowance recorded: Commercial 1,016 1,016 46 1,058 20 1,033 11 Commercial real estate 3,843 3,843 389 3,888 94 3,856 53 Residential 3,888 3,888 403 3,913 85 3,897 41 Consumer 50 50 7 52 1 51 1 Total: $ 8,797 $ 8,797 $ 845 $ 8,911 $ 200 $ 8,837 $ 106 Total: Commercial 1,651 1,834 46 1,918 42 1,824 21 Commercial real estate 14,038 17,084 389 14,233 343 14,078 170 Residential 7,709 7,867 403 7,759 193 7,728 98 Consumer 95 95 7 100 3 97 1 Total: $ 23,493 $ 28,880 $ 845 $ 24,010 $ 581 $ 23,727 $ 290 December 31, 2015 ( Dollars in thousands Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ 1,070 $ 1,339 $ — $ 1,319 $ 72 Commercial real estate 17,180 22,037 — 18,989 722 Residential 4,016 4,338 — 4,936 137 Consumer 68 68 — 84 7 Total: $ 22,334 $ 27,782 $ — $ 25,328 $ 938 With an allowance recorded: Commercial 1,657 1,657 137 1,729 79 Commercial real estate 4,402 4,402 396 4,461 207 Residential 5,402 5,443 560 5,445 215 Consumer 66 66 10 66 3 Total: $ 11,527 $ 11,568 $ 1,103 $ 11,701 $ 504 Total: Commercial 2,727 2,996 137 3,048 151 Commercial real estate 21,582 26,439 396 23,450 929 Residential 9,418 9,781 560 10,381 352 Consumer 134 134 10 150 10 Total: $ 33,861 $ 39,350 $ 1,103 $ 37,029 $ 1,442 TDRs are loans which have been restructured from their original contractual terms and include concessions that would not otherwise have been granted outside of the financial difficulty of the borrower. We only restructure loans for borrowers in financial difficulty that have designed a viable business plan to fully pay off all obligations, including outstanding debt, interest and fees, either by generating additional income from the business or through liquidation of assets. Generally, these loans are restructured to provide the borrower additional time to execute upon their plans. With respect to restructured loans, we grant concessions by (1) reduction of the stated interest rate for the remaining original life of the debt, or (2) extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. We do not generally grant concessions through forgiveness of principal or accrued interest. Restructured loans where a concession has been granted through extension of the maturity date generally include extension of payments in an interest only period, extension of payments with capitalized interest and extension of payments through a forbearance agreement. These extended payment terms are also combined with a reduction of the stated interest rate in certain cases. Success in restructuring loans has been mixed but it has proven to be a useful tool in certain situations to protect collateral values and allow certain borrowers additional time to execute upon defined business plans. In situations where a TDR is unsuccessful and the borrower is unable to follow through with terms of the restructured agreement, the loan is placed on nonaccrual status and continues to be written down to the underlying collateral value. Our policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. If, after previously being classified as a TDR, a loan is restructured a second time, then that loan is automatically placed on nonaccrual status. Our policy with respect to nonperforming loans requires the borrower to make a minimum of six consecutive payments in accordance with the loan terms before that loan can be placed back on accrual status. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. We believe that all of our modified loans meet the definition of a TDR. The following is a summary of information pertaining to our TDRs: June 30, December 31, (Dollars in thousands) 2016 2015 Nonperforming TDRs $ 4 $ 5,449 Performing TDRs: Commercial 1,651 2,565 Commercial real estate 13,392 13,883 Residential 6,637 7,059 Consumer 95 106 Total performing TDRs 21,775 23,613 Total TDRs $ 21,779 $ 29,062 Nonperforming TDRs of $3.3 million were included in loans held for sale at June 30, 2016 and are not included in the table above. The following tables summarize how loans that were considered TDRs were modified during the periods indicated: For the Six Months ended June 30, 2016 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post- Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 3 $ 308 $ 144 — $ — $ — Residential 6 634 534 2 111 111 Commercial 4 179 155 2 193 77 Consumer — — — — — — Total 13 $ 1,121 $ 833 4 $ 304 $ 188 During the six months ended June 30, 2016, 13 loans were modified that were considered to be TDRs. Term concessions only were granted for seven loans; term and interest concessions were granted for one loan; term and payment deferrals were granted for one loan; term, payment deferrals and interest concessions were granted for one loan; principal was forgiven on two loans; and other concessions were extended for one loan. (1) For the Three Months ended June 30, 2016 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 3 $ 308 $ 144 — $ — $ — Residential 4 502 456 — — — Commercial 2 44 44 1 87 51 Consumer — — — — — — Total 9 $ 854 $ 644 1 $ 87 $ 51 During the quarter ended June 30, 2016, nine loans were modified that were considered to be TDRs. Term concessions only were granted for four loans; term and interest concessions were granted for one loan; term, payment deferrals and interest concessions were granted for one loan; principal was forgiven on two loans; and other concessions were extended for one loan. (1) For the Six Months ended June 30, 2015 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post- Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 2 $ 252 $ 252 1 $ 148 $ 148 Residential 5 636 596 3 496 496 Commercial 1 62 62 1 27 27 Consumer 1 10 10 — — — Total 9 $ 960 $ 920 5 $ 671 $ 671 During the six months ended June 30, 2015, nine loans were modified that were considered to be TDRs. Term concessions only were granted for two loans; payment deferrals only were granted for one loan; term and payment deferrals were granted for four loans; and term, payment deferrals and interest concessions were granted for two loans. (1) For the Three Months ended June 30, 2015 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 1 $ 83 $ 83 1 $ 148 $ 148 Residential 3 549 509 2 200 200 Commercial — — — — — — Consumer 1 10 10 — — — Total 5 $ 642 $ 602 3 $ 348 $ 348 During the quarter ended June 30, 2015, five loans were modified that were considered to be TDRs. Term concessions only were granted for one loan; payment deferrals only were granted for one loan; term and payment deferrals were granted for one loan; and term, payment deferrals and interest concessions were granted for two loans. (1) Portions of the allowance for loan losses may be allocated for specific loans or portfolio segments. However, the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged-off. While management utilizes the best judgment and information available to it, the ultimate adequacy of the allowance for loan losses depends on a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates, and the view of the regulatory authorities toward loan classifications. If delinquencies and defaults increase, we may be required to increase our provision for loan losses, which would adversely affect our results of operations and financial condition. There can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period. The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The fair value of standby letters of credit is insignificant. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter-party. Collateral held for commitments to extend credit and standby letters of credit varies but may include accounts receivable, inventory, property, plant, equipment, and income-producing commercial properties. The following table summarizes the Company’s off-balance sheet financial instruments whose contract amounts represent credit risk: June 30, December 31, (Dollars in thousands) 2016 2015 Commitments to extend credit $ 28,411 $ 21,318 Standby letters of credit 183 257

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2016
Other Real Estate [Abstract]
OTHER REAL ESTATE OWNED	NOTE 5 – OTHER REAL ESTATE OWNED The following table shows transactions in OREO for the periods ended June 30, 2016 and December 31, 2015: June 30, December 31, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 13,624 $ 19,501 Additions 766 4,058 Sales (2,809 ) (9,709 ) Write-downs (4,325 ) (226 ) Balance, end of period $ 7,256 $ 13,624 Increased write-downs were taken during the first six months of 2016 in an effort to expedite sales to reduce nonperforming assets. Subsequent to June 30, 2016, eleven properties were sold for $270 thousand at no gain or loss. Write-downs related to these properties of $584 thousand were recorded in the first six months of 2016.

ADVANCES FROM THE FEDERAL HOME

ADVANCES FROM THE FEDERAL HOME LOAN BANK	6 Months Ended
	Jun. 30, 2016
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]
ADVANCES FROM THE FEDERAL HOME LOAN BANK	NOTE 6 - ADVANCES FROM THE FEDERAL HOME LOAN BANK Advances from the FHLB consisted of the following at June 30, 2016: (Dollars in thousands) Advance Advance Advance Maturing Type Amount Rate On Convertible Advance $ 2,000 3.60 % 9/4/18 Convertible Advance 5,000 3.45 % 9/10/18 Convertible Advance 5,000 2.95 % 9/18/18 Fixed Rate 5,000 3.86 % 8/20/19 $ 17,000 As of June 30, 2016, we had advances totaling $17.0 million with various interest rates and maturity dates. Interest on all advances is at a fixed rate and payable quarterly. Convertible advances are callable by the FHLB on their respective call dates. The Company has the option to either repay any advance that has been called or to refinance the advance as a convertible advance. At June 30, 2016, the Company had pledged as collateral for FHLB advances approximately $3.2 million of one-to-four family first mortgage loans, $1.3 million of commercial real estate loans, $4.0 million in home equity lines of credit, and $12.0 million of agency and private issue mortgage-backed securities. The Company has an investment in FHLB stock of $1.1 million. The Company has $7.4 million in excess borrowing capacity with the FHLB that is available if liquidity needs should arise. As a result of negative financial performance indicators, there is also a risk that the Bank’s ability to borrow from the FHLB could be curtailed or eliminated, although to date the Bank has not been denied advances from the FHLB or had to pledge additional collateral for its borrowings. As of June 30, 2016, scheduled principal reductions include $12.0 million in 2018 and $5.0 million in 2019.

JUNIOR SUBORDINATED DEBENTURES

JUNIOR SUBORDINATED DEBENTURES	6 Months Ended
	Jun. 30, 2016
Junior Subordinated Notes [Abstract]
JUNIOR SUBORDINATED DEBENTURES	NOTE 7 – JUNIOR SUBORDINATED DEBENTURES On December 21, 2004, the Trust issued $6.0 million floating rate trust preferred securities with a maturity of December 31, 2034. In accordance with current accounting standards, the Trust has not been consolidated in these financial statements. The Company received from the Trust the $6.0 million proceeds from the issuance of the securities and the $186 thousand initial proceeds from the capital investment in the Trust and, accordingly, has shown the funds due to the Trust as a $6.2 million junior subordinated debenture offset by debt issuance costs. The current regulatory rules allow certain amounts of junior subordinated debentures to be included in the calculation of regulatory capital. The Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the trust preferred securities beginning February 2011 and as a result, the Company had deferred interest payments in the amount of approximately $958 thousand due and payable at the time of redemption on April 11, 2016, as described below. As described in Note 1 to our financial statements, on February 29, 2016, the Company entered into a securities purchase agreement with Alesco for the repurchase of all the trust preferred securities for an aggregate cash payment of $600 thousand plus reimbursement of attorneys’ fees and other expenses incurred by Alesco not to exceed $25 thousand. Alesco also agreed to forgive any and all unpaid interest on the trust preferred securities. On March 16, 2016, the Company received a notice of default from The Bank of New York Mellon Trust Company, N.A., in its capacity as trustee, relating to the trust preferred securities. The notice of default related specifically to the Indenture dated December 21, 2004, by and among the Company and The Bank of New York Mellon Trust Company, N.A., successor-in-interest to JP Morgan Chase Bank, National Association, under which the Company issued the trust preferred securities. As permitted by the Indenture, the Company previously exercised its right to defer interest payments on the trust preferred securities for 20 consecutive quarterly payment periods. The Company’s right to defer such interest payments expired on March 15, 2016, at which time all deferred payments of interest became due and payable. The Company did not pay such deferred interest at the end of the permitted deferral period, constituting an event of default under the Indenture, and therefore pursuant to the Indenture, the trustee provided this notice of default. However, under the Indenture, the principal amount of the trust preferred securities, together with any premium and unpaid accrued interest, would only become due upon such an event of default if the trustee or Alesco declared such amounts due and payable by written notice to the Company. On April 11, 2016, immediately following the closing of the 2016 private placement, the Company repurchased all of the outstanding trust preferred securities for $600 thousand, plus reimbursement of approximately $17 thousand in third party legal expenses. The redemption gain realized on this settlement was approximately $6.3 million. The redemption consisted of the following ( in thousands Assets Other assets $ 186 Reduction to assets 186 Liabilities Junior subordinated debentures 6,117 Accrued interest payable 958 Reduction to liabilities 7,075 Cash paid (617 ) Gain on extinguishment of debt $ 6,272

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	6 Months Ended
	Jun. 30, 2016
Subordinated Borrowings [Abstract]
SUBORDINATED DEBENTURES	NOTE 8 - SUBORDINATED DEBENTURES On July 31, 2010, the Company completed a private placement of subordinated promissory notes that totaled $12.1 million. The notes bore interest at a rate equal to the current Prime Rate in effect, as published by the Wall Street Journal, plus 3%; provided, that the rate of interest shall not be less than 8% per annum or more than 12% per annum. The subordinated notes were structured to fully count as Tier 2 regulatory capital on a consolidated basis. The Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the subordinated notes beginning October 2011 and, as a result, the Company had deferred interest payments in the amount of approximately $5.3 million at the time of redemption on April 11, 2016, as described below. During 2013, $1.0 million of the subordinated notes were canceled by the holder as part of a settlement of litigation between the holder, the Bank, and the Company. The Company was obligated to contribute capital in this amount to the Bank when it was able to do so and did so immediately following the closing of the 2016 private placement. The forgiveness of this debt was recognized in 2013 as noninterest income in the consolidated statements of operations. Effective as of September 16, 2015, the Company, the Bank, and certain other defendants entered into a class action settlement agreement in potential settlement of the putative class action lawsuit initiated by three holders of the Company’s subordinated promissory notes, on behalf of themselves and as representatives of a class of similarly situated purchasers of the Company’s subordinated promissory notes, with respect to alleged wrongful conduct associated with purchases of the subordinated promissory notes, including fraud, violation of state securities statutes, and negligence. On March 2, 2016, the Court of Common Pleas for the Fifteenth Judicial District, State of South Carolina, County of Horry entered a final order of approval approving the class action settlement agreement. On April 11, 2016, immediately following the closing of the 2016 private placement, the Company established a settlement fund of approximately $2.4 million, which represented 20% of the principal of subordinated promissory notes issued by the Company. The proceeds of the fund were used to redeem the subordinated promissory notes held by class members. Also on April 11, 2016, the Company settled, pursuant to previously executed binding settlement agreements, with the subordinated promissory note holders who opted out of the class action settlement. These settlements, including the class action settlement, constituted the full satisfaction of the principal and interest owed on, and required the immediate dismissal of all pending litigation related to, the respective subordinated promissory notes. In each case, the Company and the Bank also obtained a full and complete release of all claims asserted or that could have been asserted with respect to the subordinated promissory notes. The redemption gain realized on this settlement was approximately $12.8 million. The redemption consisted of the following ( in thousands Assets Reduction to assets $ — Liabilities Subordinated debentures 11,023 Accrued interest payable 5,274 Reduction to liabilities 16,297 Cash paid (3,454 ) Gain on extinguishment of debt $ 12,843

SHAREHOLDERS' EQUITY AND CAPITA

SHAREHOLDERS' EQUITY AND CAPITAL REQUIREMENTS	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY AND CAPITAL REQUIREMENTS	NOTE 9 - SHAREHOLDERS’ EQUITY AND CAPITAL REQUIREMENTS Preferred Stock Series T In connection with the sale of the Series T preferred stock, the Company also issued to the U.S. Treasury the CPP Warrant to purchase up to 91,714 shares of the Company’s common stock at an initial exercise price of $21.09 per share. The Series T preferred stock and the CPP Warrant were sold to the U.S. Treasury for an aggregate purchase price of $12.9 million in cash. The purchase price was allocated between the Series T preferred stock and the CPP Warrant based upon the relative fair values of each to arrive at the amounts recorded by the Company. This resulted in the Series T preferred stock being issued at a discount which was amortized on a level yield basis as a charge to retained earnings over an assumed life of five years. As required under the CPP, dividend payments on and repurchases of the Company’s common stock were subject to certain restrictions. For as long as the Series T preferred stock was outstanding, no dividends could be declared or paid on the Company’s common stock until all accrued and unpaid dividends on the Series T preferred stock were fully paid. In addition, the U.S. Treasury’s consent was required for any increase in dividends on common stock before the third anniversary of issuance of the Series T preferred stock and for any repurchase of any common stock except for repurchases of common shares in connection with benefit plans. Beginning in February 2011, the Federal Reserve Bank of Richmond required the Company to defer dividend payments on the 12,895 shares of the Series T preferred stock. Therefore, for each quarterly period beginning in February 2011, the Company notified the U.S. Treasury of its deferral of quarterly dividend payments on the Series T preferred stock. The amount of each of the Company’s quarterly interest payments was approximately $161 thousand through March 2014 and then increased to $290 thousand. At the time the shares were repurchased on April 12, 2016, as described below, the Company had $5.1 million of deferred dividend payments due on the Series T preferred stock, $398 thousand of which had previously been shown as accrued preferred dividends on the Company’s statement of operations for 2016. On April 12, 2016, the Company repurchased all 12,895 shares of the outstanding Series T preferred stock from the U.S. Treasury for $129 thousand. The U.S. Treasury also canceled the CPP Warrant. The redemption gain realized on this settlement was approximately $13.8 million and was recorded as capital surplus. Series A Restrictions on Dividends Under the terms of the Written Agreement, the Company is currently prohibited from declaring or paying any dividends without the prior written approval of the Federal Reserve Bank of Richmond. In addition, because the Company is a legal entity separate and distinct from the Bank and has little direct income itself, the Company relies on dividends paid to it by the Bank in order to pay dividends on its common stock. As a South Carolina state bank, the Bank may only pay dividends out of its net profits, after deducting expenses, including losses and bad debts. Under the Federal Deposit Insurance Corporation Act (“FDICIA”), the Bank may not pay a dividend if, after paying the dividend, the Bank would be undercapitalized. Under the terms of the Consent Order, the Bank is further prohibited from declaring a dividend on its shares of common stock unless it receives approval from the FDIC and State Board. Regulatory Capital The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios of Tier 1 and total capital as a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 1250%. Tier 1 capital consists of common shareholders’ equity, excluding the unrealized gain or loss on securities available-for-sale, minus certain intangible assets. Tier 2 capital consists of the allowance for loan losses subject to certain limitations. Total capital for purposes of computing the capital ratios consists of the sum of Tier 1 and Tier 2 capital. The Company and the Bank are also required to maintain capital at a minimum level based on quarterly average assets, which is known as the leverage ratio. In July 2013, the federal bank regulatory agencies issued a final rule that has revised their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with certain standards that were developed by the Basel Committee on Banking Supervision (“Basel III”) and certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). The final rule applies to all depository institutions, such as the Bank, top-tier bank holding companies with total consolidated assets of $500 million or more, and top-tier savings and loan holding companies, which we refer to below as “covered” banking organizations. Bank holding companies with less than $500 million in total consolidated assets, such as the Company, are not subject to the final rule. Effective March 31, 2015, the Bank was required to implement the new Basel III capital standards (subject to the phase in for certain parts of the new rules). The approved rule includes a new minimum ratio of common equity Tier 1 capital to risk-weighted assets (“CET1”) 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%. Basel III also 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), effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to the risk weights for certain assets and off-balance sheet exposures. Finally, CET1 includes accumulated other comprehensive income (which includes all unrealized gains and losses on available-for-sale debt and equity securities), subject to a transition period and a one-time opt-out election. The Bank elected to opt-out of this provision. As such, accumulated comprehensive income is not included in the Bank’s Tier 1 capital. The new capital conservation buffer began its phase-in period on January 1, 2016 at 0.625% of risk-weighted assets and will increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019, as discussed above. The Bank had sufficient capital to meet the new conservation buffer requirements at June 30, 2016. To be considered “well-capitalized,” a bank must maintain total risk-based capital of at least 10%, Tier 1 capital of at least 6%, and a leverage ratio of at least 5%. To be considered “adequately capitalized” under these capital guidelines, a bank must maintain a minimum total risk-based capital of 8%, with at least 4% being Tier 1 capital. In addition, a bank must maintain a minimum Tier 1 leverage ratio of at least 6%. Pursuant to the terms of the Consent Order with the FDIC and the State Board, the Bank must achieve and maintain Tier 1 capital at least equal to 8% and total risk-based capital at least equal to 10%. In addition, regardless of the Bank’s actual capital ratios, it is unable to be classified as “well-capitalized” while it is operating under the Consent Order. At June 30, 2016, the Company was categorized as “well capitalized”. While the Bank cannot be considered “well capitalized” due to the Consent Order, as a result of the 2016 private placement, the Bank meets all of the capital requirements set forth under the Consent Order as of June 30, 2016. The following table summarizes the capital ratios and the regulatory minimum requirements for the Company and the Bank. Minimum To Be Well Minimum Capitalized Under Capital Prompt Corrective Actual Requirement Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2016 The Company Total Capital (to Risk-Weighted Assets) $ 40,303 17.28 % $ 18,661 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 37,368 16.02 % $ 9,331 4.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 37,368 9.68 % $ 15,447 4.00 % N/A N/A The Bank Total Capital (to Risk-Weighted Assets) $ 41,053 17.58 % $ 18,682 8.00 % $ 23,353 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 38,114 16.32 % $ 14,012 6.00 % (1 ) (1 ) Tier 1 Capital (to Average Assets) $ 38,114 9.90 % $ 15,397 4.00 % $ 30,793 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 38,114 16.32 % $ 10,509 4.50 % N/A N/A December 31, 2015 The Company Total Capital (to Risk-Weighted Assets) $ (10,642 ) (4.15 )% $ 20,537 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ (10,642 ) (4.15 )% $ 10,269 4.00 % N/A N/A Tier 1 Capital (to Average Assets) $ (10,642 ) (2.87 )% $ 14,831 4.00 % N/A N/A The Bank Total Capital (to Risk-Weighted Assets) $ 15,402 5.92 % $ 20,802 8.00 % $ 26,002 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 12,135 4.67 % $ 15,601 6.00 % (1 ) (1 ) Tier 1 Capital (to Average Assets) $ 12,135 3.28 % $ 14,819 4.00 % $ 29,639 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 12,135 4.67 % $ 11,701 4.50 % N/A N/A (1)

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2016
Net income (loss) per common share
INCOME (LOSS) PER SHARE	NOTE 10 – INCOME (LOSS) PER SHARE (Dollars in thousands, except Six Months ended June 30, per share amounts) 2016 2015 Basic income (loss) per common share: Net income (loss) available to common shareholders $ 6,630 $ (798 ) Weighted average common shares outstanding - basic 161,854,447 3,816,340 Basic income (loss) per common share $ 0.04 $ (0.21 ) Diluted income (loss) per common share: Net income (loss) available to common shareholders $ 6,630 $ (798 ) Weighted average common shares outstanding - basic 161,854,447 3,816,340 Incremental shares — — Weighted average common shares outstanding - diluted 161,854,447 3,816,340 Diluted income (loss) per common share $ 0.04 $ (0.21 ) (Dollars in thousands, except Three Months ended June 30, per share amounts) 2016 2015 Basic income (loss) per common share: Net income (loss) available to common shareholders $ 9,913 $ (703 ) Weighted average common shares outstanding - basic 319,862,554 3,816,340 Basic income (loss) per common share $ 0.03 $ (0.18 ) Diluted income (loss) per common share: Net income (loss) available to common shareholders $ 9,913 $ (703 ) Weighted average common shares outstanding - basic 319,862,554 3,816,340 Incremental shares — — Weighted average common shares outstanding - diluted 319,862,554 3,816,340 Diluted income (loss) per common share $ 0.03 $ (0.18 ) There were no common stock equivalents outstanding at June 30, 2016. For the six and three month periods ended June 30, 2015, there were 91,714 common stock equivalents outstanding. These common stock equivalents were not included in the computation of diluted loss per share because their effect would have been anti-dilutive.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 11 - FAIR VALUE Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value estimates are made at a specific point in time based on relevant market and other information about the financial instruments. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on current economic conditions, risk characteristics of various financial instruments, and such other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Accounting principles establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasuries and money market funds. Level 2 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 for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities, and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly-structured or long-term derivative contracts. Financial Instruments The following methods and assumptions were used to estimate the fair value of significant financial instruments: Cash and Cash Equivalents Securities Available-for-Sale Nonmarketable Equity Securities Loans Held for Sale Loans Receivable Assets Held for Sale Deposits Repurchase Agreements Advances from the Federal Home Loan Bank Subordinated Debentures Junior Subordinated Debentures Off-Balance Sheet Financial Instruments The carrying values and estimated fair values of the Company’s financial instruments were as follows: June 30, 2016 Fair Value Measurements (Dollars in thousands) Quoted Significant market other Significant price in observable unobservable Carrying Estimated active markets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and cash equivalents $ 64,024 $ 64,024 $ 64,024 $ — $ — Securities available-for-sale 80,969 80,969 — 80,969 — Nonmarketable equity securities 1,090 1,090 — — 1,090 Loans held for sale 4,280 4,280 — 4,280 — Loans, net 194,580 193,287 — — 193,287 Assets held for sale 768 768 — — 768 Financial Liabilities: Demand deposit, interest-bearing transaction, and savings accounts 163,268 163,268 163,268 — — Certificates of deposit 159,974 159,977 — 159,977 — Repurchase agreements 1,659 1,659 — 1,659 — Advances from the Federal Home Loan Bank 17,000 17,000 — 17,000 — Notional Estimated Amount Fair Value Off-Balance Sheet Financial Instruments: Commitments to extend credit $ 28,411 n/a Standby letters of credit 183 n/a December 31, 2015 Fair Value Measurements (Dollars in thousands) Quoted Significant market other Significant price in observable unobservable Carrying Estimated active markets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and cash equivalents $ 22,137 $ 22,137 $ 22,137 $ — $ — Securities available-for-sale 89,701 89,701 — 89,701 — Nonmarketable equity securities 1,330 1,330 — — 1,330 Loans, net 204,766 204,975 — — 204,975 Financial Liabilities: Demand deposit, interest-bearing transaction, and savings accounts 156,860 156,860 156,860 — — Certificates of deposit 173,971 174,964 — 174,964 — Repurchase agreements 1,716 1,716 — 1,716 — Advances from the Federal Home Loan Bank 17,000 17,108 — 17,108 — Subordinated debentures 11,021 * — — — Junior subordinated debentures 6,117 * — — — Notional Estimated Amount Fair Value Off-Balance Sheet Financial Instruments: Commitments to extend credit $ 21,318 n/a Standby letters of credit 257 n/a * The Company is unable to determine this value. Fair Value Measurements Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Securities Available-for-Sale Loans Other Real Estate Owned Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of and for the periods ended June 30, 2016 and December 31, 2015, by level within the fair value hierarchy. Quoted prices in Significant active markets Other Significant for identical Observable Unobservable (Dollars in thousands) assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2016 Assets Government sponsored enterprises $ 21,780 $ — $ 21,780 $ — Mortgage-backed securities 53,388 — 53,388 — Obligations of state and local governments 5,801 — 5,801 — Total $ 80,969 $ — $ 80,969 $ — December 31, 2015 Assets: Government sponsored enterprises $ 36,032 $ — $ 36,032 $ — Mortgage-backed securities 52,445 — 52,445 — Obligations of state and local governments 1,224 — 1,224 — Total $ 89,701 $ — $ 89,701 $ — The Company has no liabilities measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following tables present the assets and liabilities carried on the balance sheet by caption and by level within the valuation hierarchy described above for which a nonrecurring change in fair value has been recorded during the periods ended June 30, 2016 and December 31, 2015. Quoted prices in Significant active markets Other Significant (Dollars in thousands) for identical Observable Unobservable assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2016 Assets Loans held for sale $ 4,280 $ — $ 4,280 $ — Impaired loans, net of valuation allowance 22,648 — — 22,648 Other real estate owned 7,256 — — 7,256 Assets held for sale 768 — — 768 Total $ 34,952 $ — $ 4,280 $ 30,672 December 31, 2015 Assets Impaired loans, net of valuation allowance $ 32,758 $ — $ — $ 32,758 Other real estate owned 13,624 — — 13,624 Total $ 46,382 $ — $ — $ 46,382 The Company has no liabilities measured at fair value on a nonrecurring basis. Level 3 Valuation Methodologies The fair value of impaired loans and loans held for sale is estimated using one of several methods, including collateral value and discounted cash flows and, in rare cases, the market value of the note. Those impaired loans not requiring an allowance represent loans for which the net present value of the expected cash flows or fair value of the collateral less costs to sell exceed the recorded investments in such loans. When the fair value of the collateral is based on an executed sales contract with an independent third party, the Company records the impaired loans as nonrecurring Level 1. If the collateral is based on another observable market price or a current appraised value, the Company records the impaired loans as nonrecurring Level 2. When an appraised value is not available or the Company determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. Impaired loans can be evaluated for impairment using the present value of expected future cash flows discounted at the loan’s effective interest rate. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. The fair value of loans held for sale was based on sales contract value. sale are carried at fair value less estimated selling costs. Fair value is generally based upon current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for selling costs. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the asset as nonrecurring Level 2. However, the Company also considers other factors or recent developments which could result in adjustments to the collateral value estimates indicated in the appraisals such as changes in absorption rates or market conditions from the time of valuation. In situations where management adjustments are significant to the fair value measurements in its entirety, such measurements are classified as Level 3 within the valuation hierarchy. The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2016. Management believes the weighted average range of adjustments to be appropriate. As discussed previously, depressed real estate values in the areas we serve may cause larger adjustments from time to time. (Dollars in thousands) June 30, Valuation Unobservable Range 2016 Techniques Inputs (Weighted Avg Impaired loans: Commercial $ 1,605 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 23.50% Flows Independent quotes (1.00%) Commercial real estate 13,649 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 32.33% Flows Independent quotes (7.20%) Residential 7,306 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 46.60% Flows Independent quotes (11.57%) Consumer 88 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 10.00% Flows Independent quotes (1.11%) Other real estate owned 7,256 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 10.00% Flows Independent quotes (10.00%) Assets held for sale 768 Appraised Value Appraisals and/or sales of comparable properties/ 0.00% - 10.00% Independent quotes (10.00%) The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015. Management believes the weighted average range of adjustments to be appropriate. As discussed previously, depressed real estate values in the areas we serve may cause larger adjustments from time to time. (Dollars in thousands) December 31, Valuation Unobservable Range 2015 Techniques Inputs (Weighted Avg ) Impaired loans: Commercial $ 2,590 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (8.77%) Commercial real estate 21,186 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-32.33% Flows Independent quotes (10.23%) Residential 8,858 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (9.90%) Consumer 124 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (10.00%) Other real estate owned 13,624 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (10.00%)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company may, from time to time, become a party to legal claims and disputes. At June 30, 2016, the Company is party to several court actions and investigations as discussed in detail in “Legal Proceedings” under Part II, Item 1 of this Form 10-Q. The Company and the Bank have engaged legal counsel and intend to vigorously defend themselves in all actions. The ultimate outcomes of all referenced actions are unknown at this time and reasonably possible losses cannot be estimated.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure that are not otherwise disclosed herein except for the following. On June 30, 2016, the Company completed a public offering of 14,167,600 shares of common stock at $0.10 per share for aggregate cash proceeds of approximately $1.4 million (the “2016 public offering”). The 2016 public offering was conducted primarily to provide the Company’s legacy shareholders, employees and others in its community with an opportunity to invest in the Company at the same offering price of $0.10 per share that the Company offered to the investors in the 2016 private placement. The offering period ended at 5:00 p.m., Eastern Standard time, on June 30, 2016. The proceeds were held in escrow at June 30, 2016 and will be used for general corporate and operational purposes. The shares were issued on August 1, 2016.

ORGANIZATION, SIGNIFICANT ACC21

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with the requirements for interim financial statements and, accordingly, they are condensed and omit disclosures, which would substantially duplicate those contained in the most recent annual report to shareholders. The financial statements as of June 30, 2016 and for the interim periods ended June 30, 2016 and 2015 are unaudited and, in our opinion, include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the six and three month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The financial information as of December 31, 2015 has been derived from the audited financial statements as of that date. For further information, refer to the financial statements and the notes included in HCSB Financial Corporation’s 2016 Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2016, as amended on Form 10-K/A which was filed with the SEC on April 1, 2016.
Management's Estimates	Management’s Estimates Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, and the carrying amount of real estate acquired in connection with foreclosures or in satisfaction of loans. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowances for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for losses on loans and foreclosed real estate may change materially in the near term.
Investment Securities	Investment Securities
Nonmarketable Equity Securities	Nonmarketable Equity Securities
Loans Held for Sale	Loans Held for Sale
Loans Receivable	Loans Receivable The accrual of interest income is generally discontinued when a loan becomes contractually 90 days past due as to principal or interest. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and accrued interest. Loan origination and commitment fees and certain direct loan origination costs (principally salaries and employee benefits) are deferred and amortized to income over the contractual life of the related loans or commitments, adjusted for prepayments, using the straight-line method. Loans are impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans are subject to these criteria except for smaller balance homogeneous loans that are collectively evaluated for impairment and loans measured at fair value or at the lower of cost or fair value. The Company considers its consumer installment portfolio and home equity lines as such exceptions. Therefore, loans within the real estate and commercial loan portfolios are reviewed individually. Impairment of a loan is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent. When management determines that a loan is impaired, the difference between the Company’s investment in the related loan and the present value of the expected future cash flows, or the fair value of the collateral, is charged off with a corresponding entry to the allowance for loan losses or a specific reserve is set aside within the allowance for loan losses. The accrual of interest is discontinued on an impaired loan when management determines the borrower may be unable to meet payments as they become due.
Concentrations Of Credit Risk	Concentrations of Credit Risk The Company makes loans to individuals and small businesses for various personal and commercial purposes primarily throughout Horry County in South Carolina and Columbus and Brunswick counties of North Carolina. The Company’s loan portfolio is not concentrated in loans to any single borrower or a relatively small number of borrowers. However, the loan portfolio does include a concentration in loans secured by residential and commercial real estate and commercial and industrial non-real estate loans. These loans are especially susceptible to being adversely effected by unfavorable economic conditions. The commercial real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. If real estate values in our market areas decline, it is also more likely that we would be required to increase our allowance for loan losses. In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk from concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Management has determined that there is no concentration of credit risk associated with its lending policies or practices. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan’s life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk. The Company’s investment portfolio consists principally of obligations of the United States, its agencies or its corporations and general obligation municipal securities. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant.
Allowance For Loan Losses	Allowance for Loan Losses The allowance is subject to examination by regulatory agencies, which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions, and other adequacy tests. In addition, such regulatory agencies could require the Company to adjust its allowance based on information available to them at the time of their examination. The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to that used to determine the allowance for loan losses adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio.
Premises, Furniture And Equipment	Premises, Furniture and Equipment Maintenance and repairs are charged to current expense as incurred, and the costs of major renewals and improvements are capitalized.
Other Real Estate Owned	Other Real Estate Owned Any write-downs at the dates of acquisition are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent write-downs, and gains and losses on disposal are included in net cost (profit) of operations of other real estate owned on the statement of operations.
Income And Expense Recognition	Income and Expense Recognition
Income Taxes	Income Taxes Deferred income taxes are determined using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax impacts of the differences between the book and tax bases of assets and liabilities and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to the Company’s judgment that realization is more likely than not. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties, if any, are recognized as a component of income tax expense. The Company reviews the deferred tax assets for recoverability based on history of earnings, expectations for future earnings and expected timing of reversals of temporary differences. Realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income available under tax law, including future reversals of existing temporary differences, future taxable income exclusive of reversing differences, taxable income in prior carryback years, projections of future operating results, cumulative tax losses over the past three years, tax loss deductibility limitations, and available tax planning strategies. If, based on available information, it is more likely than not that the deferred income tax asset will not be realized, a valuation allowance against the deferred tax asset must be established with a corresponding charge to income tax expense. The deferred tax assets and valuation allowance are evaluated each quarter, and a portion of the valuation allowance may be reversed in future periods. The determination of how much of the valuation allowance that may be reversed and the timing is based on future results of operation and the amount and timing of actual loan charge-offs and asset write-downs. Due to the private placement in April 2016 that removed the going concern considerations, the Company recorded a deferred tax asset of $59 thousand related to unrealized losses in the securities available-for-sale portfolio. The remaining deferred tax asset was offset by a valuation allowance. At December 31, 2015, the Company’s deferred tax asset was offset in its entirety by a valuation allowance. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore no reserves for uncertain income tax positions have been recorded.
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share
Comprehensive Income	Comprehensive Income
Statements of Cash Flows	Statements of Cash Flows
Off-Balance-Sheet Financial Instruments	Off-Balance Sheet Financial Instruments
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments were effective for the Company on January 1, 2016. The Company will apply the guidance prospectively. The amendments had no effect on the financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments were effective for the Company on January 1, 2016 and did not have a material effect on the financial statements. In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs. The amendments were effective for the Company on January 1, 2016. As a result, all debt issuance costs were reclassified to offset related debt. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (“ASC”), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance were effective for the Company on January 1, 2016. The amendments had no effect on the financial statements. In August 2015, the FASB deferred the effective date of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
Risks And Uncertainties	Risks and Uncertainties The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances and operating restrictions from the regulators’ judgments based on information available to them at the time of their examination.
Reclassifications	Reclassifications
Recent Developments	Recent Developments On April 11, 2016, the Company completed a private placement of 359,468,443 shares of common stock at $0.10 On July 31, 2010, the Company completed a private placement of subordinated promissory notes that totaled $12.1 million. The notes bore interest at a rate equal to the current Prime Rate in effect, as published by the Wall Street Journal, plus 3%; provided, that the interest rate would not be less than 8% per annum or more than 12% per annum. Beginning in October 2011, the Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the subordinated promissory notes. Effective as of September 16, 2015, the Company, the Bank, and certain other defendants entered into a class action settlement agreement in potential settlement of the putative class action lawsuit initiated by three holders of the Company’s subordinated promissory notes, on behalf of themselves and as representatives of a class of similarly situated purchasers of the Company’s subordinated promissory notes, with respect to alleged wrongful conduct associated with purchases of the subordinated promissory notes, including fraud, violation of state securities statutes, and negligence. On March 2, 2016, the Court of Common Pleas for the Fifteenth Judicial District, State of South Carolina, County of Horry entered a final order of approval approving the class action settlement agreement. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the class action settlement agreement, the Company established a settlement fund of approximately $2.4 million, which represented 20% of the principal of subordinated promissory notes issued by the Company. The settlement fund was used to redeem the subordinated promissory notes held by class members. Also on April 11, 2016, the Company settled, pursuant to previously executed binding settlement agreements, with all subordinated promissory note holders who opted out of the class action settlement. These settlements, including the class action settlement, constituted the full satisfaction of the principal and interest owed on, and required the immediate dismissal of all pending litigation related to, the respective subordinated promissory notes. In each case, the Company and the Bank also obtained a full and complete release of all claims asserted or that could have been asserted with respect to the subordinated promissory notes. Refer to Note 8 to our Financial Statements for additional information on the subordinated promissory notes. On March 6, 2009, as part of the Troubled Asset Relief Program (the “TARP”) Capital Purchase Program (the “CPP”) established by the U.S. Department of the Treasury (the “U.S. Treasury”) under the Emergency Economic Stabilization Act of 2009, the Company issued and sold to the U.S. Treasury (i) 12,895 shares of fixed rate cumulative perpetual preferred stock, Series T, having a liquidation preference of $1,000 per share (the “Series T preferred stock”), and (ii) a ten-year warrant to purchase up to 91,714 shares of its common stock at an initial exercise price of $21.09 per share (the “CPP Warrant”), for an aggregate purchase price of $12.9 million in cash. Beginning in February 2011, the Federal Reserve Bank of Richmond required the Company to defer dividend payments on the Series T preferred stock. On February 29, 2016, the Company entered into a securities purchase agreement with the U.S. Treasury, pursuant to which the Company agreed to repurchase all 12,895 shares of the Series T preferred stock for $129 thousand, plus reimbursement of attorneys’ fees and other expenses incurred by the U.S Treasury not to exceed $25 thousand. Under the terms of the securities purchase agreement, the U.S. Treasury also agreed to waive any and all unpaid dividends on the Series T preferred stock and to cancel the CPP Warrant. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the securities purchase agreement, the Company repurchased all 12,895 shares of the Series T preferred stock from the U.S. Treasury for $129 thousand and the U.S. Treasury canceled the CPP Warrant. Refer to Note 9 to our Financial Statements for additional information on the Series T preferred stock. On December 21, 2004, the Trust issued and sold a total of 6,000 trust preferred securities, with $1,000 liquidation amount per capital security and a maturity of December 31, 2034, to institutional buyers in a pooled trust preferred issue. The Company received from the Trust the $6.0 million proceeds from the issuance of the securities and the $186 thousand initial proceeds from the capital investment in the Trust and, accordingly, has shown the funds due to the trust as a $6.2 million junior subordinated debenture. Beginning in February 2011, the Federal Reserve Bank of Richmond prohibited the Company from paying interest due on the trust preferred securities. The Company was permitted to defer these interest payments for up to 20 consecutive quarterly periods, or until March 15, 2016, at which point all of the deferred interest, including interest accrued on such deferred interest, would become due and payable. On February 29, 2016, the Company entered into a securities purchase agreement with Alesco Preferred Funding VI LTD (“Alesco”), pursuant to which the Company agreed to repurchase the trust preferred securities for $600 thousand, plus reimbursement of attorneys’ fees and other expenses incurred by Alesco not to exceed $25 thousand. Alesco also agreed to forgive any and all unpaid interest on the trust preferred securities. On March 16, 2016, the Company received a notice of default from The Bank of New York Mellon Trust Company, N.A., in its capacity as trustee, relating to the trust preferred securities. Immediately following the closing of the 2016 private placement on April 11, 2016, pursuant to the terms of the securities purchase agreement, the Company repurchased all of the trust preferred securities from Alesco for $600 thousand plus $17 thousand in direct legal expenses. Refer to Note 7 to our Financial Statements for additional information on the trust preferred securities. After taking into account the discounted repurchase or redemption prices for the Series T preferred stock, the trust preferred securities and the subordinated promissory notes, each as described above, as well as the forgiveness of accrued and deferred interest, legal fees, amounts paid in settlement of litigation, income taxes, and other expenses incurred in connection with these transactions, the Company recognized a gain, net of income taxes, of approximately $13.8 million on the repurchase of the Series T preferred stock, which is included in capital surplus and an aggregate gain of $19.1 million from the extinguishment of debt which is included in noninterest income. See the respective notes referred to above for additional information. On July 7, 2016, the Company sold $4.3 million of nonaccrual loans and $270 thousand of OREO. The loans and OREO were recorded at fair value as of June 30, 2016 which was equal to the sales contract value and therefore resulted in no gain or loss. Refer to Note 4 to our Financial Statements for additional information.

REGULATORY MATTERS AND FUTURE O

REGULATORY MATTERS AND FUTURE OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Regulatory Matters And Future Operations Tables
Schedule Of Compliance With Consent Order	A summary of the requirements of the Consent Order and the Bank’s status on complying with the Consent Order is as follows: Requirements of the Consent Order Bank’s Compliance Status Achieve and maintain, by July 10, 2011, Total Risk Based capital at least equal to 10% of risk-weighted assets and Tier 1 capital at least equal to 8% of total assets. Following the closing of the 2016 private placement on April 11, 2016, the Company contributed $38.0 million to the Bank as a capital contribution. As a result, the Bank had Total Risk Based capital equal to 17.58% of risk-weighted assets and Tier 1 capital equal to 9.90% of average assets as of June 30, 2016. Accordingly, we believe that the Bank is now in compliance with this provision of the Consent Order. Submit, by April 11, 2011, a written capital plan to the supervisory authorities. We believe we have complied with this provision of the Consent Order. Establish, by March 12, 2011, a plan to monitor compliance with the Consent Order, which shall be monitored by the Bank’s Directors’ Committee. We believe we have complied with this provision of the Consent Order. The Directors’ Committee meets monthly and each meeting includes reviews and discussions of all areas required in the Consent Order. Develop, by May 11, 2011, a written analysis and assessment of the Bank’s management and staffing needs. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to perform an assessment of the Bank’s staffing needs to ensure the Bank has an appropriate organizational structure with qualified management in place. The Board of Directors has reviewed all recommendations regarding the Bank’s organizational structure. Notify the supervisory authorities in writing of the resignation or termination of any of the Bank’s directors or senior executive officers. We believe we have complied with this provision of the Consent Order. Eliminate, by March 12, 2011, by charge-off or collection, all assets or portions of assets classified “Loss” and 50% of those assets classified “Doubtful.” We believe we have complied with this provision of the Consent Order. Review and update, by April 11, 2011, its policy to ensure the adequacy of the Bank’s allowance for loan and lease losses, which must provide for a review of the Bank’s allowance for loan and lease losses at least once each calendar quarter. We believe we have complied with this provision of the Consent Order. Submit, by April 11, 2011, a written plan to the supervisory authorities to reduce classified assets, which shall include, among other things, a reduction of the Bank’s risk exposure in relationships with assets in excess of $750,000 which are criticized as “Substandard” or “Doubtful”. In accordance with the approved plan, reduce assets classified in the June 30, 2010 Report of Examination by 65% by August 11, 2012 and by 75% by February 9, 2013. We believe we have complied with this provision of the Consent Order. The written plan was submitted and approved and assets classified in the June 30, 2010 Report of Examination have been reduced by 85.35% as of June 30, 2016. Revise, by April 11, 2011, its policies and procedures for managing the Bank’s Adversely Classified Other Real Estate Owned. We believe we have complied with this provision of the Consent Order. Not extend any additional credit to any borrower who has a loan or other extension of credit from the Bank that has been charged-off or classified, in whole or in part, “Loss” or “Doubtful” and is uncollected. In addition, the Bank may not extend any additional credit to any borrower who has a loan or other extension of credit from the Bank that has been criticized, in whole or in part, “Substandard” and is uncollected, unless the Bank’s board of directors determines that failure to extend further credit to a particular borrower would be detrimental to the best interests of the Bank. We believe we have complied with this provision of the Consent Order. In the second quarter of 2010, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. An independent review of the Bank’s credit portfolio was most recently completed in the first quarter of 2016. Perform, by April 11, 2011, a risk segmentation analysis with respect to the Bank’s Concentrations of Credit and develop a written plan to systematically reduce any segment of the portfolio that is an undue concentration of credit. We believe we have complied with this provision of the Consent Order. Review, by April 11, 2011 and annually thereafter, the Bank’s loan policies and procedures for adequacy and, based upon this review, make all appropriate revisions to the policies and procedures necessary to enhance the Bank’s lending functions and ensure their implementation. We believe we have complied with this provision of the Consent Order. As noted above, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. Adopt, by May 11, 2011, an effective internal loan review and grading system to provide for the periodic review of the Bank’s loan portfolio in order to identify and categorize the Bank’s loans, and other extensions of credit which are carried on the Bank’s books as loans, on the basis of credit quality. We believe we have complied with this provision of the Consent Order. As noted above, the Bank engaged the services of an independent firm to perform an extensive review of the Bank’s credit portfolio and help management implement a more comprehensive lending and collection policy and more enhanced loan review. Review and update, by May 11, 2011, its written profit plan to ensure the Bank has a realistic, comprehensive budget for all categories of income and expense, which must address, at minimum, goals and strategies for improving and sustaining the earnings of the Bank, the major areas in and means by which the Bank will seek to improve the Bank’s operating performance, realistic and comprehensive budgets, a budget review process to monitor income and expenses of the Bank to compare actual results with budgetary projections, assess that operating assumptions that form the basis for budget projections and adequately support major projected income and expense components of the plan, and coordination of the Bank’s loan, investment, and operating policies and budget and profit planning with the funds management policy. We believe we have complied with this provision of the Consent Order. The Bank engaged an independent third party to assist management with a strategic plan to help restructure its balance sheet, increase capital ratios, return to profitability and maintain adequate liquidity. Review and update, by May 11, 2011, its written plan addressing liquidity, contingent funding, and asset liability management. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to assist management in its development of a strategic plan that achieves all requirements of the Consent Order. The strategic plan reflects the Bank’s plans to restructure its balance sheet, increase capital ratios, return to profitability, and maintain adequate liquidity. The Board of Directors has reviewed and adopted the Bank’s strategic plan. Eliminate, by March 12, 2011, all violations of law and regulation or contraventions of policy set forth in the FDIC’s safety and soundness examination of the Bank in November 2009. We believe we have complied with this provision of the Consent Order. Not accept, renew, or rollover any brokered deposits unless it is in compliance with the requirements of 12 C.F.R. § 337.6(b). We believe we have complied with this provision of the Consent Order. Since entering into the Consent Order, the Bank has not accepted, renewed, or rolled-over any brokered deposits. Limit asset growth to 5% per annum. We believe we have complied with this provision of the Consent Order. Not declare or pay any dividends or bonuses or make any distributions of interest, principal, or other sums on subordinated debentures without the prior approval of the supervisory authorities. We believe we have complied with this provision of the Consent Order. The Bank shall comply with the restrictions on the effective yields on deposits as described in 12 C.F.R. § 337.6. We believe we have complied with this provision of the Consent Order. Furnish, by March 12, 2011 and within 30 days of the end of each quarter thereafter, written progress reports to the supervisory authorities detailing the form and manner of any actions taken to secure compliance with the Consent Order. We believe we have complied with this provision of the Consent Order, and we have submitted the required progress reports to the supervisory authorities. Submit, by March 12, 2011, a written plan to the supervisory authorities for eliminating its reliance on brokered deposits. We believe we have complied with this provision of the Consent Order. Adopt, by April 11, 2011, an employee compensation plan after undertaking an independent review of compensation paid to all of the Bank’s senior executive officers. We believe we have complied with this provision of the Consent Order. Prepare and submit, by May 11, 2011, its written strategic plan to the supervisory authorities. We believe we have complied with this provision of the Consent Order. In 2011, the Bank engaged an independent third party to assist management in its development of a strategic plan that achieves all requirements of the Consent Order. The Board of Directors has reviewed and adopted the Bank’s strategic plan.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule Of Securities Available-For-Sale	Securities available-for-sale consisted of the following: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2016 Government-sponsored enterprises $ 21,638 $ 192 $ (50 ) $ 21,780 Mortgage-backed securities 53,839 302 (753 ) 53,388 State and political subdivisions 5,653 148 — 5,801 Total $ 81,130 $ 642 $ (803 ) $ 80,969 December 31, 2015 Government-sponsored enterprises $ 36,720 $ — $ (688 ) $ 36,032 Mortgage-backed securities 53,368 54 (977 ) 52,445 State and political subdivisions 1,221 5 (2 ) 1,224 Total $ 91,309 $ 59 $ (1,667 ) $ 89,701
Summary Of Maturities Of Securities Available-For-Sale	Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. June 30, 2016 (in thousands ) Amortized Cost Due Due After One After Five Within Through Through After Ten Market One Year Five Years Ten Years Years Total Value Investment securities Government sponsored enterprises $ — $ 322 $ 2,000 $ 19,316 $ 21,638 $ 21,780 Mortgage backed securities — — 10,239 43,600 53,839 53,388 State and political subdivisions — — 2,706 2,947 5,653 5,801 Total $ — $ 322 $ 14,945 $ 65,863 $ 81,130 $ 80,969
Schedule Of Gross Unrealized Losses And Fair Value Of Securities Available-For-Sale	The following table shows gross unrealized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous unrealized loss position, at: June 30, 2016 Less than twelve months Twelve months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Government-sponsored enterprises $ 6,912 $ (50 ) $ — $ — $ 6,912 $ (50 ) Mortgage-backed securities 13,559 (163 ) 17,649 (590 ) 31,208 (753 ) Total $ 20,471 $ (213 ) $ 17,649 $ (590 ) $ 38,120 $ (803 ) December 31, 2015 Less than twelve months Twelve months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Government-sponsored enterprises $ 31,490 $ (558 ) $ 4,543 $ (130 ) $ 36,033 $ (688 ) Mortgage-backed securities 28,024 (354 ) 17,008 (623 ) 45,032 (977 ) State and political subdivisions 617 (2 ) — — 617 (2 ) Total $ 60,131 $ (914 ) $ 21,551 $ (753 ) $ 81,682 $ (1,667 )
Schedule Of Gross Realized Gains And Losses On Sales Of Available-For-Sale Secutities	Gross realized gains and losses on sales of available-for-sale securities for the periods ended were as follows: (Dollars in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Gross realized gains $ 20 $ 78 $ 37 $ 212 Gross realized losses (122 ) — (122 ) — Net gain $ (102 ) $ 78 $ (85 ) $ 212

LOAN PORTFOLIO (Tables)

LOAN PORTFOLIO (Tables)	6 Months Ended
	Jun. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]
Schedule of Components Of Loan Portfolio By Category	Loans consisted of the following: June 30, December 31, (Dollars in thousands) 2016 2015 Residential $ 70,577 $ 75,081 Commercial Real Estate 86,998 101,291 Commercial 36,760 27,881 Consumer 4,737 5,114 Total gross loans $ 199,072 $ 209,367
Schedule of Related Party Loans	These loans have been presented separately and consisted of the following: Initial Balance Carrying Charged-off June 30, (Dollars in thousands) Value Amount 2016 Residential $ 1,830 $ (744 ) $ 1,086 Commercial Real Estate 4,749 (1,930 ) 2,819 Commercial 615 (250 ) 365 Consumer 17 (7 ) 10 Total loans held for sale $ 7,211 $ (2,931 ) $ 4,280
Schedule of Allowance For Loan Losses	The following table details the activity within our allowance for loan losses as of and for the periods ended June 30, 2016 and 2015 and as of and for the year ended December 31, 2015, by portfolio segment: June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 952 $ 2,543 $ 80 $ 1,026 $ 4,601 Charge-offs (1,068 ) (4,591 ) (32 ) (777 ) (6,468 ) Recoveries 1,253 50 12 60 1,375 Provision (402 ) 4,359 66 961 4,984 Ending balance $ 735 $ 2,361 $ 126 $ 1,270 $ 4,492 Ending balances: Individually evaluated for impairment $ 46 $ 389 $ 7 $ 403 $ 845 Collectively evaluated for impairment $ 689 $ 1,972 $ 119 $ 867 $ 3,647 Loans receivable: Ending balance, total $ 36,760 $ 86,998 $ 4,737 $ 70,577 $ 199,072 Ending balances: Individually evaluated for impairment $ 1,651 $ 14,038 $ 95 $ 7,709 $ 23,493 Collectively evaluated for impairment $ 35,109 $ 72,960 $ 4,642 $ 62,868 $ 175,579 June 30, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 597 $ 3,591 $ 185 $ 1,414 $ 5,787 Charge-offs (451 ) (253 ) (47 ) (357 ) (1,108 ) Recoveries 157 688 12 63 920 Provision 670 (902 ) 70 162 — Ending balance $ 973 $ 3,124 $ 220 $ 1,282 $ 5,599 Ending balances: Individually evaluated for impairment $ 148 $ 786 $ 9 $ 585 $ 1,528 Collectively evaluated for impairment $ 825 $ 2,338 $ 211 $ 697 $ 4,071 Loans receivable: Ending balance, total $ 34,603 $ 108,817 $ 5,877 $ 82,001 $ 231,298 Ending balances: Individually evaluated for impairment $ 2,929 $ 24,164 $ 112 $ 10,905 $ 38,110 Collectively evaluated for impairment $ 31,674 $ 84,653 $ 5,765 $ 71,096 $ 193,188 December 31, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Beginning balance $ 597 $ 3,591 $ 185 $ 1,414 $ 5,787 Charge-offs (539 ) (1,212 ) (81 ) (501 ) (2,333 ) Recoveries 200 727 37 183 1,147 Provision 694 (563 ) (61 ) (70 ) — Ending balance $ 952 $ 2,543 $ 80 $ 1,026 $ 4,601 Ending balances: Individually evaluated for impairment $ 137 $ 396 $ 10 $ 560 $ 1,103 Collectively evaluated for impairment $ 815 $ 2,147 $ 70 $ 466 $ 3,498 Loans receivable: Ending balance, total $ 27,881 $ 101,291 $ 5,114 $ 75,081 $ 209,367 Ending balances: Individually evaluated for impairment $ 2,727 $ 21,582 $ 134 $ 9,418 $ 33,861 Collectively evaluated for impairment $ 25,154 $ 79,709 $ 4,980 $ 65,663 $ 175,506
Summary of Delinquencies And Nonaccruals, By Portfolio Class	The following chart summarizes delinquencies and nonaccruals, by portfolio class, as of June 30, 2016 and December 31, 2015. June 30, 2016 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ 104 $ 1 $ — $ 105 $ 36,655 $ 36,760 $ 118 Commercial real estate: Construction 22 — — 22 19,721 19,743 — Other 202 — — 202 67,053 67,255 59 Real Estate: Residential 320 143 37 500 70,077 70,577 148 Consumer: Other 16 15 — 31 4,158 4,189 7 Revolving credit — — — — 548 548 — Total $ 664 $ 159 $ 37 $ 860 $ 198,212 $ 199,072 $ 332 December 31, 2015 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ 321 $ 110 $ 1 $ 432 $ 27,449 $ 27,881 $ 139 Commercial real estate: Construction 25 — 3,186 3,211 27,321 30,532 3,384 Other 973 — 3,046 4,019 66,740 70,759 3,895 Real Estate: Residential 2,887 142 948 3,977 71,104 75,081 1,314 Consumer: Other 108 18 10 136 4,395 4,531 10 Revolving credit 4 — — 4 579 583 — Total $ 4,318 $ 270 $ 7,191 $ 11,779 $ 197,588 $ 209,367 $ 8,742
Schedule of loans held for sale, by portfolio class	Loans held for sale are summarized as follows, by portfolio class, as of June 30, 2016. June 30, 2016 (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Total Loans Non- Past Due Past Due Past Due Past Due Current Receivable accrual Commercial $ — $ 35 $ 255 $ 290 $ 75 $ 365 $ 365 Commercial real estate: Construction — — 18 18 235 253 253 Other — 59 2,296 2,355 211 2,566 2,566 Real Estate: Residential 41 248 295 584 502 1,086 1,086 Consumer: Other — 7 — 7 3 10 10 Revolving credit — — — — — — — Total $ 41 $ 349 $ 2,864 $ 3,254 $ 1,026 $ 4,280 $ 4,280
Summary of Internal Credit Risk Grades, By Portfolio Class	The following table summarizes management’s internal credit risk grades, by portfolio class, as of June 30, 2016 and December 31, 2015. June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ 2,177 $ — $ 392 $ 84 $ 2,653 Grade 2 – Modest 450 140 44 433 1,067 Grade 3 – Average 3,645 8,404 148 4,936 17,133 Grade 4 – Satisfactory 17,357 45,297 3,542 46,860 113,056 Grade 5 – Watch 11,435 18,733 325 10,378 40,871 Grade 6 – Special Mention 1,137 1,840 203 1,447 4,627 Grade 7 – Substandard 559 12,584 83 6,439 19,665 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 36,760 $ 86,998 $ 4,737 $ 70,577 $ 199,072 December 31, 2015 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ 975 $ — $ 434 $ — $ 1,409 Grade 2 – Modest 561 1,024 37 277 1,899 Grade 3 – Average 4,934 5,620 218 4,716 15,488 Grade 4 – Satisfactory 14,693 58,549 4,031 53,187 130,460 Grade 5 – Watch 2,445 9,654 152 2,988 15,239 Grade 6 – Special Mention 992 6,321 98 3,544 10,955 Grade 7 – Substandard 3,281 20,123 144 10,369 33,917 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 27,881 $ 101,291 $ 5,114 $ 75,081 $ 209,367
Schedule of Loans held for sale by management's internal credit risk grades, by portfolio class	Loans held for sale by management’s internal credit risk grades, by portfolio class, as of June 30, 2016 were as follows: June 30, 2016 ( Dollars in thousands Commercial Commercial Real Estate Consumer Residential Total Grade 1 - Minimal $ — $ — $ — $ — $ — Grade 2 – Modest — — — — — Grade 3 – Average — — — — — Grade 4 – Satisfactory — — — — — Grade 5 – Watch 12 — — — 12 Grade 6 – Special Mention — — — — — Grade 7 – Substandard 353 2,819 10 1,086 4,268 Grade 8 – Doubtful — — — — — Grade 9 – Loss — — — — — Total loans receivable $ 365 $ 2,819 $ 10 $ 1,086 $ 4,280
Schedule of Impaired Loans	The following chart details our impaired loans, which includes TDRs totaling $21.5 million and $29.1 million, by category, as of June 30, 2016 and December 31, 2015, respectively: June 30, 2016 ( Dollars in thousands Six months ended Three months ended Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance recorded: Commercial $ 635 $ 818 $ — $ 860 $ 22 $ 791 $ 10 Commercial real estate 10,195 13,241 — 10,345 249 10,222 117 Residential 3,821 3,979 — 3,846 108 3,831 57 Consumer 45 45 — 48 2 46 — Total: $ 14,696 $ 18,083 $ — $ 15,099 $ 381 $ 14,890 $ 184 With an allowance recorded: Commercial 1,016 1,016 46 1,058 20 1,033 11 Commercial real estate 3,843 3,843 389 3,888 94 3,856 53 Residential 3,888 3,888 403 3,913 85 3,897 41 Consumer 50 50 7 52 1 51 1 Total: $ 8,797 $ 8,797 $ 845 $ 8,911 $ 200 $ 8,837 $ 106 Total: Commercial 1,651 1,834 46 1,918 42 1,824 21 Commercial real estate 14,038 17,084 389 14,233 343 14,078 170 Residential 7,709 7,867 403 7,759 193 7,728 98 Consumer 95 95 7 100 3 97 1 Total: $ 23,493 $ 28,880 $ 845 $ 24,010 $ 581 $ 23,727 $ 290 December 31, 2015 ( Dollars in thousands Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ 1,070 $ 1,339 $ — $ 1,319 $ 72 Commercial real estate 17,180 22,037 — 18,989 722 Residential 4,016 4,338 — 4,936 137 Consumer 68 68 — 84 7 Total: $ 22,334 $ 27,782 $ — $ 25,328 $ 938 With an allowance recorded: Commercial 1,657 1,657 137 1,729 79 Commercial real estate 4,402 4,402 396 4,461 207 Residential 5,402 5,443 560 5,445 215 Consumer 66 66 10 66 3 Total: $ 11,527 $ 11,568 $ 1,103 $ 11,701 $ 504 Total: Commercial 2,727 2,996 137 3,048 151 Commercial real estate 21,582 26,439 396 23,450 929 Residential 9,418 9,781 560 10,381 352 Consumer 134 134 10 150 10 Total: $ 33,861 $ 39,350 $ 1,103 $ 37,029 $ 1,442
Summary of Troubled Debt Restructurings	The following is a summary of information pertaining to our TDRs: June 30, December 31, (Dollars in thousands) 2016 2015 Nonperforming TDRs $ 4 $ 5,449 Performing TDRs: Commercial 1,651 2,565 Commercial real estate 13,392 13,883 Residential 6,637 7,059 Consumer 95 106 Total performing TDRs 21,775 23,613 Total TDRs $ 21,779 $ 29,062
Summary of Loan Modifications	The following tables summarize how loans that were considered TDRs were modified during the periods indicated: For the Six Months ended June 30, 2016 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post- Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 3 $ 308 $ 144 — $ — $ — Residential 6 634 534 2 111 111 Commercial 4 179 155 2 193 77 Consumer — — — — — — Total 13 $ 1,121 $ 833 4 $ 304 $ 188 For the Three Months ended June 30, 2016 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 3 $ 308 $ 144 — $ — $ — Residential 4 502 456 — — — Commercial 2 44 44 1 87 51 Consumer — — — — — — Total 9 $ 854 $ 644 1 $ 87 $ 51 For the Six Months ended June 30, 2015 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post- Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 2 $ 252 $ 252 1 $ 148 $ 148 Residential 5 636 596 3 496 496 Commercial 1 62 62 1 27 27 Consumer 1 10 10 — — — Total 9 $ 960 $ 920 5 $ 671 $ 671 For the Three Months ended June 30, 2015 (Dollars in thousands) TDRs identified in the last twelve TDRs identified during the period months that subsequently defaulted (1) Pre- Post Pre- Post- modification modification modification modification Number outstanding outstanding Number outstanding outstanding of recorded recorded of recorded recorded contracts investment investment contracts investment investment Commercial real estate 1 $ 83 $ 83 1 $ 148 $ 148 Residential 3 549 509 2 200 200 Commercial — — — — — — Consumer 1 10 10 — — — Total 5 $ 642 $ 602 3 $ 348 $ 348 (1)
Schedule of Off-balance Sheet Financial Instruments	The following table summarizes the Company’s off-balance sheet financial instruments whose contract amounts represent credit risk: June 30, December 31, (Dollars in thousands) 2016 2015 Commitments to extend credit $ 28,411 $ 21,318 Standby letters of credit 183 257

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2016
Other Real Estate [Abstract]
Schedule Of Transactions In Other Real Estate Owned	The following table shows transactions in OREO for the periods ended June 30, 2016 and December 31, 2015: June 30, December 31, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 13,624 $ 19,501 Additions 766 4,058 Sales (2,809 ) (9,709 ) Write-downs (4,325 ) (226 ) Balance, end of period $ 7,256 $ 13,624

ADVANCES FROM THE FEDERAL HOM26

ADVANCES FROM THE FEDERAL HOME LOAN BANK (Tables)	6 Months Ended
	Jun. 30, 2016
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]
Schedule Of Advances From Federal Home Loan Bank	Advances from the FHLB consisted of the following at June 30, 2016: (Dollars in thousands) Advance Advance Advance Maturing Type Amount Rate On Convertible Advance $ 2,000 3.60 % 9/4/18 Convertible Advance 5,000 3.45 % 9/10/18 Convertible Advance 5,000 2.95 % 9/18/18 Fixed Rate 5,000 3.86 % 8/20/19 $ 17,000

JUNIOR SUBORDINATED DEBENTURES

JUNIOR SUBORDINATED DEBENTURES (Tables)	6 Months Ended
	Jun. 30, 2016
Junior Subordinated Debentures Tables
Schedule of redemption	The redemption consisted of the following ( in thousands Assets Other assets $ 186 Reduction to assets 186 Liabilities Junior subordinated debentures 6,117 Accrued interest payable 958 Reduction to liabilities 7,075 Cash paid (617 ) Gain on extinguishment of debt $ 6,272

SUBORDINATED DEBENTURES (Tables

SUBORDINATED DEBENTURES (Tables)	6 Months Ended
	Jun. 30, 2016
Subordinated Debentures Tables
Schedule of redemption of debentures	The redemption consisted of the following ( in thousands Assets Reduction to assets $ — Liabilities Subordinated debentures 11,023 Accrued interest payable 5,274 Reduction to liabilities 16,297 Cash paid (3,454 ) Gain on extinguishment of debt $ 12,843

SHAREHOLDERS' EQUITY AND CAPI29

SHAREHOLDERS' EQUITY AND CAPITAL REQUIREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Schedule of capital ratios and regulatory minimum requirements	The following table summarizes the capital ratios and the regulatory minimum requirements for the Company and the Bank. Minimum To Be Well Minimum Capitalized Under Capital Prompt Corrective Actual Requirement Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2016 The Company Total Capital (to Risk-Weighted Assets) $ 40,303 17.28 % $ 18,661 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 37,368 16.02 % $ 9,331 4.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 37,368 9.68 % $ 15,447 4.00 % N/A N/A The Bank Total Capital (to Risk-Weighted Assets) $ 41,053 17.58 % $ 18,682 8.00 % $ 23,353 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 38,114 16.32 % $ 14,012 6.00 % (1 ) (1 ) Tier 1 Capital (to Average Assets) $ 38,114 9.90 % $ 15,397 4.00 % $ 30,793 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 38,114 16.32 % $ 10,509 4.50 % N/A N/A December 31, 2015 The Company Total Capital (to Risk-Weighted Assets) $ (10,642 ) (4.15 )% $ 20,537 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ (10,642 ) (4.15 )% $ 10,269 4.00 % N/A N/A Tier 1 Capital (to Average Assets) $ (10,642 ) (2.87 )% $ 14,831 4.00 % N/A N/A The Bank Total Capital (to Risk-Weighted Assets) $ 15,402 5.92 % $ 20,802 8.00 % $ 26,002 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 12,135 4.67 % $ 15,601 6.00 % (1 ) (1 ) Tier 1 Capital (to Average Assets) $ 12,135 3.28 % $ 14,819 4.00 % $ 29,639 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 12,135 4.67 % $ 11,701 4.50 % N/A N/A (1)

INCOME (LOSS) PER SHARE (Tables

INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Net income (loss) per common share
Reconciliation Of Numerators And Denominators Used To Calculate Basic And Diluted Earnings (Losses) Per Share	(Dollars in thousands, except Six Months ended June 30, per share amounts) 2016 2015 Basic income (loss) per common share: Net income (loss) available to common shareholders $ 6,630 $ (798 ) Weighted average common shares outstanding - basic 161,854,447 3,816,340 Basic income (loss) per common share $ 0.04 $ (0.21 ) Diluted income (loss) per common share: Net income (loss) available to common shareholders $ 6,630 $ (798 ) Weighted average common shares outstanding - basic 161,854,447 3,816,340 Incremental shares — — Weighted average common shares outstanding - diluted 161,854,447 3,816,340 Diluted income (loss) per common share $ 0.04 $ (0.21 ) (Dollars in thousands, except Three Months ended June 30, per share amounts) 2016 2015 Basic income (loss) per common share: Net income (loss) available to common shareholders $ 9,913 $ (703 ) Weighted average common shares outstanding - basic 319,862,554 3,816,340 Basic income (loss) per common share $ 0.03 $ (0.18 ) Diluted income (loss) per common share: Net income (loss) available to common shareholders $ 9,913 $ (703 ) Weighted average common shares outstanding - basic 319,862,554 3,816,340 Incremental shares — — Weighted average common shares outstanding - diluted 319,862,554 3,816,340 Diluted income (loss) per common share $ 0.03 $ (0.18 )

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments	The carrying values and estimated fair values of the Company’s financial instruments were as follows: June 30, 2016 Fair Value Measurements (Dollars in thousands) Quoted Significant market other Significant price in observable unobservable Carrying Estimated active markets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and cash equivalents $ 64,024 $ 64,024 $ 64,024 $ — $ — Securities available-for-sale 80,969 80,969 — 80,969 — Nonmarketable equity securities 1,090 1,090 — — 1,090 Loans held for sale 4,280 4,280 — 4,280 — Loans, net 194,580 193,287 — — 193,287 Assets held for sale 768 768 — — 768 Financial Liabilities: Demand deposit, interest-bearing transaction, and savings accounts 163,268 163,268 163,268 — — Certificates of deposit 159,974 159,977 — 159,977 — Repurchase agreements 1,659 1,659 — 1,659 — Advances from the Federal Home Loan Bank 17,000 17,000 — 17,000 — December 31, 2015 Fair Value Measurements (Dollars in thousands) Quoted Significant market other Significant price in observable unobservable Carrying Estimated active markets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and cash equivalents $ 22,137 $ 22,137 $ 22,137 $ — $ — Securities available-for-sale 89,701 89,701 — 89,701 — Nonmarketable equity securities 1,330 1,330 — — 1,330 Loans, net 204,766 204,975 — — 204,975 Financial Liabilities: Demand deposit, interest-bearing transaction, and savings accounts 156,860 156,860 156,860 — — Certificates of deposit 173,971 174,964 — 174,964 — Repurchase agreements 1,716 1,716 — 1,716 — Advances from the Federal Home Loan Bank 17,000 17,108 — 17,108 — Subordinated debentures 11,021 * — — — Junior subordinated debentures 6,117 * — — —
Schedule Of Carrying Values And Estimated Fair Values Of Off-Balance Sheet Financial Instruments	Notional Estimated Amount Fair Value Off-Balance Sheet Financial Instruments: Commitments to extend credit $ 28,411 n/a Standby letters of credit 183 n/a Notional Estimated Amount Fair Value Off-Balance Sheet Financial Instruments: Commitments to extend credit $ 21,318 n/a Standby letters of credit 257 n/a * The Company is unable to determine this value.
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis	The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of and for the periods ended June 30, 2016 and December 31, 2015, by level within the fair value hierarchy. Quoted prices in Significant active markets Other Significant for identical Observable Unobservable (Dollars in thousands) assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2016 Assets: Government sponsored enterprises $ 21,780 $ — $ 21,780 $ — Mortgage-backed securities 53,388 — 53,388 — Obligations of state and local governments 5,801 — 5,801 — Total $ 80,969 $ — $ 80,969 $ — December 31, 2015 Assets: Government sponsored enterprises $ 36,032 $ — $ 36,032 $ — Mortgage-backed securities 52,445 — 52,445 — Obligations of state and local governments 1,224 — 1,224 — Total $ 89,701 $ — $ 89,701 $ —
Schedule Of Assets And Liabilities Recorded At Fair Value On A Non-Recurring Basis	The following tables present the assets and liabilities carried on the balance sheet by caption and by level within the valuation hierarchy described above for which a nonrecurring change in fair value has been recorded during the periods ended June 30, 2016 and December 31, 2015. Quoted prices in Significant active markets Other Significant (Dollars in thousands) for identical Observable Unobservable assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2016 Assets: Loans held for sale $ 4,280 $ — $ 4,280 $ — Impaired loans, net of valuation allowance 22,648 — — 22,648 Other real estate owned 7,256 — — 7,256 Assets held for sale 768 — — 768 Total $ 34,952 $ — $ 4,280 $ 30,672 December 31, 2015 Assets: Impaired loans, net of valuation allowance $ 32,758 $ — $ — $ 32,758 Other real estate owned 13,624 — — 13,624 Total $ 46,382 $ — $ — $ 46,382
Schedule Of Quantitative Information About Level 3 Fair Value Measurements On A Non-Recurring Basis	The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2016. Management believes the weighted average range of adjustments to be appropriate. As discussed previously, depressed real estate values in the areas we serve may cause larger adjustments from time to time. (Dollars in thousands) June 30, Valuation Unobservable Range 2016 Techniques Inputs (Weighted Avg Impaired loans: Commercial $ 1,605 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 23.50% Flows Independent quotes (1.00%) Commercial real estate 13,649 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 32.33% Flows Independent quotes (7.20%) Residential 7,306 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 46.60% Flows Independent quotes (11.57%) Consumer 88 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 10.00% Flows Independent quotes (1.11%) Other real estate owned 7,256 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00% - 10.00% Flows Independent quotes (10.00%) Assets held for sale 768 Appraised Value Appraisals and/or sales of comparable properties/ 0.00% - 10.00% Independent quotes (10.00%) The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015. Management believes the weighted average range of adjustments to be appropriate. As discussed previously, depressed real estate values in the areas we serve may cause larger adjustments from time to time. (Dollars in thousands) December 31, Valuation Unobservable Range 2015 Techniques Inputs (Weighted Avg ) Impaired loans: Commercial $ 2,590 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (8.77%) Commercial real estate 21,186 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-32.33% Flows Independent quotes (10.23%) Residential 8,858 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (9.90%) Consumer 124 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (10.00%) Other real estate owned 13,624 Appraised Value/ Appraisals and/or sales Discounted Cash of comparable properties/ 0.00%-10.00% Flows Independent quotes (10.00%)

ORGANIZATION, SIGNIFICANT ACC32

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 06, 2009	Jun. 30, 2016
Deferred tax asset related to unrealized losses		$ 59
Furniture and Fixtures [Member] | Maximum [Member]
Estimated useful life of asset (in years)		10 years
Furniture and Fixtures [Member] | Minimum [Member]
Estimated useful life of asset (in years)		3 years
Building [Member]
Estimated useful life of asset (in years)		40 years
Preferred Stock [Member]
Aggregate purchase price of fixed rate cumulative perpetual preferred stock, series T	$ 12,900
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, shares issued to U.S. Treasury	12,895
Fixed Rate cumulative perpetual preferred stock, series T, liquidation preference	$ 1,000
Warrant term (in years)	10 years
Maximum number of common stock shares purchased under ten-year warrant	91,714
Common stock, initial price per share	$ 21.09

ORGANIZATION, SIGNIFICANT ACC33

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Details Narrative 1) - USD ($) $ / shares in Units, $ in Thousands	Apr. 11, 2016	Jun. 30, 2016	Dec. 31, 2015
Common Stock issued		363,314,783	3,846,340
Private Placement [Member]
Common Stock issued	359,468,443
Stock Issued, Price per share	$ 0.10
Proceeds from issuance of stock	$ 45,000
Proceeds from issuance of stock net of commissions and expenses	41,500
Capital contributed to Bank from Company	$ 38,000
Private Placement [Member] | Series A Preferred Stock [Member]
Stock Issued, Price per share	$ 10
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, shares issued to U.S. Treasury	905,315.57

ORGANIZATION, SIGNIFICANT ACC34

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Details Narrative 2) - USD ($) $ in Thousands	1 Months Ended
	Jul. 30, 2011	Jun. 30, 2016	Apr. 11, 2016	Dec. 31, 2015	Jul. 30, 2010
Subordinated debentures				$ 11,021	$ 12,100
Subordinated borrowing terms and conditions	Interest at a rate equal to the current Prime Rate in effect, as published by the Wall Street Journal, plus 3
Subordinated promissory note current Prime Rate margin					3.00%
Subordinated promissory note interest rate floor	8.00%
Subordinated promissory note interest rate ceiling	12.00%
Private Placement [Member]
Amount of settlement fund			$ 2,400
Percentage of principal subordinated promissory notes			20.00%

ORGANIZATION, SIGNIFICANT ACC35

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Details Narrative 3) - USD ($) $ in Thousands	Apr. 11, 2016	Dec. 21, 2004	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Subordinated Borrowing [Line Items]
Gain loss on series T trust preferred stock	$ 13,800
Gains losses on extinguishment of debt	19,100		$ 19,115		$ 19,115
Hcsb Financial Trust I [Member]
Subordinated Borrowing [Line Items]
Proceeds from Preferred securities issued and sold		$ 6,000
Initial proceed from capital investment in trust		186
Funds due to trust		$ 6,200
Alesco Preferred Funding VI LTD [Member]
Subordinated Borrowing [Line Items]
Payment for repurchase of trust preferred securiies	600
Attorneys' fees and other expenses	25
Direct legal expenses	$ 17

ORGANIZATION, SIGNIFICANT ACC36

ORGANIZATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS (Details Narrative 4) - USD ($) $ in Thousands	Jul. 07, 2016	Jun. 30, 2016
Fair value of nonaccrual loans		$ 4,280
Subsequent Event [Member]
Fair value of nonaccrual loans	$ 4,300
OREO fair value	$ 270	$ 270

REGULATORY MATTERS AND FUTURE37

REGULATORY MATTERS AND FUTURE OPERATIONS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 11, 2016	Dec. 31, 2015	Feb. 09, 2013	Aug. 11, 2012	Mar. 12, 2011
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Nonperforming assets	$ 11,900		$ 22,400
Percentage of nonperforming assets	3.10%		6.19%
Percentage of total loans to nonperforming loans	0.17%		4.18%
Loans held for sale	$ 4,280
Private Placement [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital contributed to Bank from Company		$ 38,000
Consent Order Requirements [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Charge-off or collect assets classified as "Doubtful"						50.00%
Percentage of Reduce assets classified in accordance with the approved plan				75.00%	65.00%
Percentage of assets reduced after approval plan	85.35%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 81,130	$ 91,309
Gross Unrealized Gains	642	59
Gross Unrealized Losses	(803)	(1,667)
Estimated Fair Value	80,969	89,701
Government Sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21,638	36,720
Gross Unrealized Gains	192
Gross Unrealized Losses	(50)	(688)
Estimated Fair Value	21,780	36,032
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	53,839	53,368
Gross Unrealized Gains	302	54
Gross Unrealized Losses	(753)	(977)
Estimated Fair Value	53,388	52,445
Obligations Of State And Local Governments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,653	1,221
Gross Unrealized Gains	148	5
Gross Unrealized Losses		(2)
Estimated Fair Value	$ 5,801	$ 1,224

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Securities Available-For-Sale Amortized Cost [Abstract]
Due after one year through five years	$ 322
Due after five years through ten years	14,945
Due after ten years	65,863
Total	81,130	$ 91,309
Market value	80,969	89,701
Government Sponsored Enterprises Debt Securities [Member]
Securities Available-For-Sale Amortized Cost [Abstract]
Due after one year through five years	322
Due after five years through ten years	2,000
Due after ten years	19,316
Total	21,638	36,720
Market value	21,780	36,032
Mortgage Backed Securities [Member]
Securities Available-For-Sale Amortized Cost [Abstract]
Due after five years through ten years	10,239
Due after ten years	43,600
Total	53,839	53,368
Market value	53,388	52,445
Obligations Of State And Local Governments [Member]
Securities Available-For-Sale Amortized Cost [Abstract]
Due after five years through ten years	2,706
Due after ten years	2,947
Total	5,653	1,221
Market value	$ 5,801	$ 1,224

INVESTMENT SECURITIES (Detail40

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Securities Available-for-Sale, Less than twelve months, Fair Value	$ 20,471	$ 60,131
Securities Available-for-Sale, Less than twelve months, Unrealized losses	(213)	(914)
Securities Available-for-Sale, Twelve months or more, Fair value	17,649	21,551
Securities Available-for-Sale, Twelve months or more, Unrealized losses	(590)	(753)
Securities Available-for-Sale, Total, Fair Value	38,120	81,682
Securities Available-for-Sale, Total, Unrealized losses	(803)	(1,667)
Government Sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities Available-for-Sale, Less than twelve months, Fair Value	6,912	31,490
Securities Available-for-Sale, Less than twelve months, Unrealized losses	(50)	(558)
Securities Available-for-Sale, Twelve months or more, Fair value		4,543
Securities Available-for-Sale, Twelve months or more, Unrealized losses		(130)
Securities Available-for-Sale, Total, Fair Value	6,912	36,033
Securities Available-for-Sale, Total, Unrealized losses	(50)	(688)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities Available-for-Sale, Less than twelve months, Fair Value	13,559	28,024
Securities Available-for-Sale, Less than twelve months, Unrealized losses	(163)	(354)
Securities Available-for-Sale, Twelve months or more, Fair value	17,649	17,008
Securities Available-for-Sale, Twelve months or more, Unrealized losses	(590)	(623)
Securities Available-for-Sale, Total, Fair Value	31,208	45,032
Securities Available-for-Sale, Total, Unrealized losses	$ (753)	(977)
Obligations Of State And Local Governments [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities Available-for-Sale, Less than twelve months, Fair Value		617
Securities Available-for-Sale, Less than twelve months, Unrealized losses		(2)
Securities Available-for-Sale, Twelve months or more, Unrealized losses
Securities Available-for-Sale, Total, Fair Value		617
Securities Available-for-Sale, Total, Unrealized losses		$ (2)

INVESTMENT SECURITIES (Detail41

INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 20	$ 78	$ 37	$ 212
Gross realized losses	(122)		(122)
Net gain	$ (102)	$ 78	$ (85)	$ 212

INVESTMENT SECURITIES (Detail42

INVESTMENT SECURITIES (Details Narrative) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Book value of investment securities pledged to secure deposits	$ 35,200		$ 35,200		$ 36,700
Market value of investment securities pledged to secure deposits	35,400		35,400		$ 36,100
Proceeds from sales of securities available-for-sale	$ 4,000	$ 11,500	$ 8,199	$ 17,901
Mortgage Backed Securities [Member]
Number of individual securities in an unrealized loss position for more than twelve months | Number	16		16

LOAN PORTFOLIO (Details)

LOAN PORTFOLIO (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total gross loans	$ 199,072	$ 209,367
Residential Portfolio Segment [Member]
Total gross loans	70,577	75,081
Commercial Real Estate Portfolio Segment [Member]
Total gross loans	86,998	101,291
Commercial Loan [Member]
Total gross loans	36,760	27,881
Consumer Loan [Member]
Total gross loans	$ 4,737	$ 5,114

LOAN PORTFOLIO (Details 1)

LOAN PORTFOLIO (Details 1) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Initial carrying value	$ 5,500
Balance charged off amount	(2,931)
loan held foe sale	4,280
Residential Portfolio Segment [Member]
Initial carrying value	1,830
Balance charged off amount	(744)
loan held foe sale	1,086
Commercial Real Estate Portfolio Segment [Member]
Initial carrying value	4,749
Balance charged off amount	(1,930)
loan held foe sale	2,819
Commercial Loan [Member]
Initial carrying value	615
Balance charged off amount	(250)
loan held foe sale	365
Consumer Loan [Member]
Initial carrying value	17
Balance charged off amount	(7)
loan held foe sale	$ 10

LOAN PORTFOLIO (Details 2)

LOAN PORTFOLIO (Details 2) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Allowances for loan losses, Beginning balance	$ 4,601	$ 5,787	$ 5,787
Allowances for loan losses, Charge-offs	(6,468)	(1,108)	(2,333)
Allowances for loan losses, Recoveries	1,375	920	1,147
Allowances for loan losses, Provisions	4,984
Allowances for loan losses, Ending balance	4,492	5,599	4,601
Allowances for loan losses, Individually evaluated for impairment, Ending Balances	845	1,528	1,103
Allowances for loan losses, Collectively evaluated for impairment, Ending Balances	3,647	4,071	3,498
Loans receivable	199,072	231,298	209,367
Loans receivable, Individually evaluated for impairment	23,493	38,110	33,861
Loans receivable, Collectively evaluated for impairment	175,579	193,188	175,506
Commercial Loan [Member]
Allowances for loan losses, Beginning balance	952	597	597
Allowances for loan losses, Charge-offs	(1,068)	(451)	(539)
Allowances for loan losses, Recoveries	1,253	157	200
Allowances for loan losses, Provisions	(402)	670	694
Allowances for loan losses, Ending balance	735	973	952
Allowances for loan losses, Individually evaluated for impairment, Ending Balances	46	148	137
Allowances for loan losses, Collectively evaluated for impairment, Ending Balances	689	825	815
Loans receivable	36,760	34,603	27,881
Loans receivable, Individually evaluated for impairment	1,651	2,929	2,727
Loans receivable, Collectively evaluated for impairment	35,109	31,674	25,154
Commercial Real Estate Portfolio Segment [Member]
Allowances for loan losses, Beginning balance	2,543	3,591	3,591
Allowances for loan losses, Charge-offs	(4,591)	(253)	(1,212)
Allowances for loan losses, Recoveries	50	688	727
Allowances for loan losses, Provisions	4,359	(902)	(563)
Allowances for loan losses, Ending balance	2,361	3,124	2,543
Allowances for loan losses, Individually evaluated for impairment, Ending Balances	389	786	396
Allowances for loan losses, Collectively evaluated for impairment, Ending Balances	1,972	2,338	2,147
Loans receivable	86,998	108,817	101,291
Loans receivable, Individually evaluated for impairment	14,038	24,164	21,582
Loans receivable, Collectively evaluated for impairment	72,960	84,653	79,709
Consumer Loan [Member]
Allowances for loan losses, Beginning balance	80	185	185
Allowances for loan losses, Charge-offs	(32)	(47)	(81)
Allowances for loan losses, Recoveries	12	12	37
Allowances for loan losses, Provisions	66	70	(61)
Allowances for loan losses, Ending balance	126	220	80
Allowances for loan losses, Individually evaluated for impairment, Ending Balances	7	9	10
Allowances for loan losses, Collectively evaluated for impairment, Ending Balances	119	211	70
Loans receivable	4,737	5,877	5,114
Loans receivable, Individually evaluated for impairment	95	112	134
Loans receivable, Collectively evaluated for impairment	4,642	5,765	4,980
Residential Portfolio Segment [Member]
Allowances for loan losses, Beginning balance	1,026	1,414	1,414
Allowances for loan losses, Charge-offs	(777)	(357)	(501)
Allowances for loan losses, Recoveries	60	63	183
Allowances for loan losses, Provisions	961	162	(70)
Allowances for loan losses, Ending balance	1,270	1,282	1,026
Allowances for loan losses, Individually evaluated for impairment, Ending Balances	403	585	560
Allowances for loan losses, Collectively evaluated for impairment, Ending Balances	867	697	466
Loans receivable	70,577	82,001	75,081
Loans receivable, Individually evaluated for impairment	7,709	10,905	9,418
Loans receivable, Collectively evaluated for impairment	$ 62,868	$ 71,096	$ 65,663

LOAN PORTFOLIO (Details 3)

LOAN PORTFOLIO (Details 3) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 860	$ 11,779
Current	198,212	197,588
Total Loans Receivable	199,072	209,367	$ 231,298
Nonaccrual Loans	332	8,742
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	664	4,318
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	159	270
90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	37	7,191
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	105	432
Current	36,655	27,449
Total Loans Receivable	36,760	27,881	34,603
Nonaccrual Loans	118	139
Commercial Loan [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	104	321
Commercial Loan [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	110
Commercial Loan [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	22	3,211
Current	19,721	27,321
Total Loans Receivable	19,743	30,532
Nonaccrual Loans		3,384
Commercial Real Estate Construction Financing Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	22	25
Commercial Real Estate Construction Financing Receivable [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Real Estate Construction Financing Receivable [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		3,186
Commercial Real Estate Other Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	202	4,019
Current	67,053	66,740
Total Loans Receivable	67,255	70,759
Nonaccrual Loans	59	3,895
Commercial Real Estate Other Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	202	973
Commercial Real Estate Other Receivable [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Real Estate Other Receivable [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		3,046
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	500	3,977
Current	70,077	71,104
Total Loans Receivable	70,577	75,081	$ 82,001
Nonaccrual Loans	148	1,314
Residential Portfolio Segment [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	320	2,887
Residential Portfolio Segment [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	143	142
Residential Portfolio Segment [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	37	948
Consumer Other Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31	136
Current	4,158	4,395
Total Loans Receivable	4,189	4,531
Nonaccrual Loans	7	10
Consumer Other Financing Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16	108
Consumer Other Financing Receivable [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	15	18
Consumer Other Financing Receivable [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		10
Revolving Credit Facilities [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4
Current	548	579
Total Loans Receivable	548	583
Nonaccrual Loans
Revolving Credit Facilities [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4
Revolving Credit Facilities [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Revolving Credit Facilities [Member] | 90 + Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due

LOAN PORTFOLIO (Details 4)

LOAN PORTFOLIO (Details 4) $ in Thousands	Jun. 30, 2016USD ($)
Total Past Due	$ 3,254
Current	1,026
Loans held for sale	4,280
Nonaccrual Loans	4,280
Commercial Loan [Member]
Total Past Due	290
Current	75
Loans held for sale	365
Nonaccrual Loans	365
Commercial Real Estate Construction Financing Receivable [Member]
Total Past Due	18
Current	235
Loans held for sale	253
Nonaccrual Loans	253
Commercial Real Estate Other Receivable [Member]
Total Past Due	2,355
Current	211
Loans held for sale	2,566
Nonaccrual Loans	2,566
Residential Portfolio Segment [Member]
Total Past Due	584
Current	502
Loans held for sale	1,086
Nonaccrual Loans	1,086
Consumer Other Financing Receivable [Member]
Total Past Due	7
Current	3
Loans held for sale	10
Nonaccrual Loans	10
Revolving Credit Facilities [Member]
Total Past Due
Current
Loans held for sale
Nonaccrual Loans
30-59 Days Past Due [Member]
Total Past Due	41
30-59 Days Past Due [Member] | Commercial Loan [Member]
Total Past Due
30-59 Days Past Due [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Total Past Due
30-59 Days Past Due [Member] | Commercial Real Estate Other Receivable [Member]
Total Past Due
30-59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Total Past Due	41
30-59 Days Past Due [Member] | Consumer Other Financing Receivable [Member]
Total Past Due
30-59 Days Past Due [Member] | Revolving Credit Facilities [Member]
Total Past Due
60-89 Days Past Due [Member]
Total Past Due	349
60-89 Days Past Due [Member] | Commercial Loan [Member]
Total Past Due	35
60-89 Days Past Due [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Total Past Due
60-89 Days Past Due [Member] | Commercial Real Estate Other Receivable [Member]
Total Past Due	59
60-89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Total Past Due	248
60-89 Days Past Due [Member] | Consumer Other Financing Receivable [Member]
Total Past Due	7
60-89 Days Past Due [Member] | Revolving Credit Facilities [Member]
Total Past Due
90 + Days Past Due [Member]
Total Past Due	2,864
90 + Days Past Due [Member] | Commercial Loan [Member]
Total Past Due	255
90 + Days Past Due [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Total Past Due	18
90 + Days Past Due [Member] | Commercial Real Estate Other Receivable [Member]
Total Past Due	2,296
90 + Days Past Due [Member] | Residential Portfolio Segment [Member]
Total Past Due	295
90 + Days Past Due [Member] | Consumer Other Financing Receivable [Member]
Total Past Due
90 + Days Past Due [Member] | Revolving Credit Facilities [Member]
Total Past Due

LOAN PORTFOLIO (Details 5)

LOAN PORTFOLIO (Details 5) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Total loans	$ 199,072	$ 209,367	$ 231,298
Grade 1 - Minimal [Member]
Total loans	2,653	1,409
Grade 2 - Modest [Member]
Total loans	1,067	1,899
Grade 3 - Average [Member]
Total loans	17,133	15,488
Grade 4 - Satisfactory [Member]
Total loans	113,056	130,460
Grade 5 - Watch [Member]
Total loans	40,871	15,239
Grade 6 - Special Mention [Member]
Total loans	4,627	10,955
Grade 7 - Substandard [Member]
Total loans	19,665	33,917
Grade 8 - Doubtful [Member]
Total loans
Grade 9 - Loss [Member]
Total loans
Commercial Loan [Member]
Total loans	36,760	27,881	34,603
Commercial Loan [Member] | Grade 1 - Minimal [Member]
Total loans	2,177	975
Commercial Loan [Member] | Grade 2 - Modest [Member]
Total loans	450	561
Commercial Loan [Member] | Grade 3 - Average [Member]
Total loans	3,645	4,934
Commercial Loan [Member] | Grade 4 - Satisfactory [Member]
Total loans	17,357	14,693
Commercial Loan [Member] | Grade 5 - Watch [Member]
Total loans	11,435	2,445
Commercial Loan [Member] | Grade 6 - Special Mention [Member]
Total loans	1,137	992
Commercial Loan [Member] | Grade 7 - Substandard [Member]
Total loans	559	3,281
Commercial Real Estate Portfolio Segment [Member]
Total loans	86,998	101,291	108,817
Commercial Real Estate Portfolio Segment [Member] | Grade 1 - Minimal [Member]
Total loans
Commercial Real Estate Portfolio Segment [Member] | Grade 2 - Modest [Member]
Total loans	140	1,024
Commercial Real Estate Portfolio Segment [Member] | Grade 3 - Average [Member]
Total loans	8,404	5,620
Commercial Real Estate Portfolio Segment [Member] | Grade 4 - Satisfactory [Member]
Total loans	45,297	58,549
Commercial Real Estate Portfolio Segment [Member] | Grade 5 - Watch [Member]
Total loans	18,733	9,654
Commercial Real Estate Portfolio Segment [Member] | Grade 6 - Special Mention [Member]
Total loans	1,840	6,321
Commercial Real Estate Portfolio Segment [Member] | Grade 7 - Substandard [Member]
Total loans	12,584	20,123
Consumer Loan [Member]
Total loans	4,737	5,114	5,877
Consumer Loan [Member] | Grade 1 - Minimal [Member]
Total loans	392	434
Consumer Loan [Member] | Grade 2 - Modest [Member]
Total loans	44	37
Consumer Loan [Member] | Grade 3 - Average [Member]
Total loans	148	218
Consumer Loan [Member] | Grade 4 - Satisfactory [Member]
Total loans	3,542	4,031
Consumer Loan [Member] | Grade 5 - Watch [Member]
Total loans	325	152
Consumer Loan [Member] | Grade 6 - Special Mention [Member]
Total loans	203	98
Consumer Loan [Member] | Grade 7 - Substandard [Member]
Total loans	83	144
Residential Portfolio Segment [Member]
Total loans	70,577	75,081	$ 82,001
Residential Portfolio Segment [Member] | Grade 1 - Minimal [Member]
Total loans	84
Residential Portfolio Segment [Member] | Grade 2 - Modest [Member]
Total loans	433	277
Residential Portfolio Segment [Member] | Grade 3 - Average [Member]
Total loans	4,936	4,716
Residential Portfolio Segment [Member] | Grade 4 - Satisfactory [Member]
Total loans	46,860	53,187
Residential Portfolio Segment [Member] | Grade 5 - Watch [Member]
Total loans	10,378	2,988
Residential Portfolio Segment [Member] | Grade 6 - Special Mention [Member]
Total loans	1,447	3,544
Residential Portfolio Segment [Member] | Grade 7 - Substandard [Member]
Total loans	6,439	10,369
Revolving Credit Facilities [Member]
Total loans	548	583
Consumer Other Financing Receivable [Member]
Total loans	4,189	4,531
Commercial Real Estate Other Receivable [Member]
Total loans	67,255	70,759
Commercial Real Estate Construction Financing Receivable [Member]
Total loans	$ 19,743	$ 30,532

LOAN PORTFOLIO (Details 6)

LOAN PORTFOLIO (Details 6) $ in Thousands	Jun. 30, 2016USD ($)
Loans held for sale	$ 4,280
Grade 5 - Watch [Member]
Loans held for sale	12
Grade 7 - Substandard [Member]
Loans held for sale	4,268
Commercial Loan [Member]
Loans held for sale	365
Commercial Loan [Member] | Grade 7 - Substandard [Member]
Loans held for sale	353
Commercial Real Estate Portfolio Segment [Member]
Loans held for sale	2,819
Commercial Real Estate Portfolio Segment [Member] | Grade 7 - Substandard [Member]
Loans held for sale	2,819
Consumer Loan [Member]
Loans held for sale	10
Consumer Loan [Member] | Grade 7 - Substandard [Member]
Loans held for sale	1,086
Residential Portfolio Segment [Member]
Loans held for sale	1,086
Residential Portfolio Segment [Member] | Grade 7 - Substandard [Member]
Loans held for sale	$ 10

LOAN PORTFOLIO (Details 7)

LOAN PORTFOLIO (Details 7) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Recorded-Investment	$ 14,696	$ 14,696	$ 22,334
Unpaid Principal Balance	18,083	18,083	27,782
Average Recorded Investment	14,890	15,099	25,328
Interest Income Recognized	184	381	938
Recorded-Investment	8,797	8,797	11,527
Unpaid Principal Balance	8,797	8,797	11,568
Related Allowance	845	845	1,103
Average Recorded Investment	8,837	8,911	11,701
Interest Income Recognized	106	200	504
Recorded-Investment	23,493	23,493	33,861
Unpaid Principal Balance	28,880	28,880	39,350
Average Recorded Investment	23,727	24,010	37,029
Interest Income Recognized	290	581	1,442
Commercial Loan [Member]
Recorded-Investment	635	635	1,070
Unpaid Principal Balance	818	818	1,339
Average Recorded Investment	791	860	1,319
Interest Income Recognized	10	22	72
Recorded-Investment	1,016	1,016	1,657
Unpaid Principal Balance	1,016	1,016	1,657
Related Allowance	46	46	137
Average Recorded Investment	1,033	1,058	1,729
Interest Income Recognized	11	20	79
Recorded-Investment	1,651	1,651	2,727
Unpaid Principal Balance	1,834	1,834	2,996
Average Recorded Investment	1,824	1,918	3,048
Interest Income Recognized	21	42	151
Commercial Real Estate Portfolio Segment [Member]
Recorded-Investment	10,195	10,195	17,180
Unpaid Principal Balance	13,241	13,241	22,037
Average Recorded Investment	10,222	10,345	18,989
Interest Income Recognized	117	249	722
Recorded-Investment	3,843	3,843	4,402
Unpaid Principal Balance	3,843	3,843	4,402
Related Allowance	389	389	396
Average Recorded Investment	3,856	3,888	4,461
Interest Income Recognized	53	94	207
Recorded-Investment	14,038	14,038	21,582
Unpaid Principal Balance	17,084	17,084	26,439
Average Recorded Investment	14,078	14,233	23,450
Interest Income Recognized	170	343	929
Consumer Loan [Member]
Recorded-Investment	45	45	68
Unpaid Principal Balance	45	45	68
Average Recorded Investment	46	48	84
Interest Income Recognized		2	7
Recorded-Investment	50	50	66
Unpaid Principal Balance	50	50	66
Related Allowance	7	7	10
Average Recorded Investment	51	52	66
Interest Income Recognized	1	1	3
Recorded-Investment	95	95	134
Unpaid Principal Balance	95	95	134
Average Recorded Investment	97	100	150
Interest Income Recognized	1	3	10
Residential Portfolio Segment [Member]
Recorded-Investment	3,821	3,821	4,016
Unpaid Principal Balance	3,979	3,979	4,338
Average Recorded Investment	3,831	3,846	4,936
Interest Income Recognized	57	108	137
Recorded-Investment	3,888	3,888	5,402
Unpaid Principal Balance	3,888	3,888	5,443
Related Allowance	403	403	560
Average Recorded Investment	3,897	3,913	5,445
Interest Income Recognized	41	85	215
Recorded-Investment	7,709	7,709	9,418
Unpaid Principal Balance	7,867	7,867	9,781
Average Recorded Investment	7,728	7,759	10,381
Interest Income Recognized	$ 98	$ 193	$ 352

LOAN PORTFOLIO (Details 8)

LOAN PORTFOLIO (Details 8) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Restructured debt balances	$ 21,779	$ 29,062
Financial Receivable Modifications Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	4	5,449
Financial Receivable Modifications Performing [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	21,775	23,613
Commercial Loan [Member] | Financial Receivable Modifications Performing [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	1,651	2,565
Commercial Real Estate [Member] | Financial Receivable Modifications Performing [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	13,392	13,883
Consumer Loan [Member] | Financial Receivable Modifications Performing [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	95	106
Residential Portfolio Segment [Member] | Financial Receivable Modifications Performing [Member]
Financing Receivable, Modifications [Line Items]
Restructured debt balances	$ 6,637	$ 7,059

LOAN PORTFOLIO (Details 9)

LOAN PORTFOLIO (Details 9) - Troubled Debt Restructuring [Member] $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)Number	Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)Number
Tdrs That Are In Compliance With Terms Of Agreement [Member]
Number of contracts | Number		9	5	13	9
Pre- Modification Outstanding Recorded Investment		$ 854	$ 642	$ 1,121	$ 960
Post-Modification Outstanding Recorded Investment		$ 644	$ 602	$ 833	$ 920
Tdrs That Are In Compliance With Terms Of Agreement [Member] | Commercial Real Estate Portfolio Segment [Member]
Number of contracts | Number		3	1	3	2
Pre- Modification Outstanding Recorded Investment		$ 308	$ 83	$ 308	$ 252
Post-Modification Outstanding Recorded Investment		$ 144	$ 83	$ 144	$ 252
Tdrs That Are In Compliance With Terms Of Agreement [Member] | Residential Portfolio Segment [Member]
Number of contracts | Number		4	3	6	5
Pre- Modification Outstanding Recorded Investment		$ 502	$ 549	$ 634	$ 636
Post-Modification Outstanding Recorded Investment		$ 456	$ 509	$ 534	$ 596
Tdrs That Are In Compliance With Terms Of Agreement [Member] | Commercial Loan [Member]
Number of contracts | Number		2		4	1
Pre- Modification Outstanding Recorded Investment		$ 44		$ 179	$ 62
Post-Modification Outstanding Recorded Investment		$ 44		$ 155	$ 62
Tdrs That Are In Compliance With Terms Of Agreement [Member] | Consumer Loan [Member]
Number of contracts | Number			1		1
Pre- Modification Outstanding Recorded Investment			$ 10		$ 10
Post-Modification Outstanding Recorded Investment			$ 10		$ 10
Tdrs That Are Subsequently Defaulted [Member]
Number of contracts | Number	[1]	1	3	4	5
Pre- Modification Outstanding Recorded Investment	[1]	$ 87	$ 348	$ 304	$ 671
Post-Modification Outstanding Recorded Investment	[1]	$ 51	$ 348	$ 188	$ 671
Tdrs That Are Subsequently Defaulted [Member] | Commercial Real Estate Portfolio Segment [Member]
Number of contracts | Number	[1]		1		1
Pre- Modification Outstanding Recorded Investment	[1]		$ 148		$ 148
Post-Modification Outstanding Recorded Investment	[1]		$ 148		$ 148
Tdrs That Are Subsequently Defaulted [Member] | Residential Portfolio Segment [Member]
Number of contracts | Number	[1]		2	2	3
Pre- Modification Outstanding Recorded Investment	[1]		$ 200	$ 111	$ 496
Post-Modification Outstanding Recorded Investment	[1]		$ 200	$ 111	$ 496
Tdrs That Are Subsequently Defaulted [Member] | Commercial Loan [Member]
Number of contracts | Number	[1]	1		2	1
Pre- Modification Outstanding Recorded Investment	[1]	$ 87		$ 193	$ 27
Post-Modification Outstanding Recorded Investment	[1]	$ 51		$ 77	$ 27
[1]	Loans past due 90 days or more are considered to be in default.

LOAN PORTFOLIO (Details 10)

LOAN PORTFOLIO (Details 10) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Standby Letters Of Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount	$ 183	$ 257
Commitments To Extend Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount	$ 28,411	$ 21,318

LOAN PORTFOLIO (Details Narrati

LOAN PORTFOLIO (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Total loans	$ 199,072	$ 209,367	$ 231,298
Classified loans	19,700
Classified loans collateralized by real estate	19,000
Recorded investment in impaired loans	23,493	33,861
TDR impaired loans	21,779	29,062
Loans held for sale	4,280
Loan held for sale carrying value	5,500
Financial Receivable Modifications Nonperforming [Member]
TDR impaired loans	4	$ 5,449
Financial Receivable Modifications Nonperforming [Member] | Troubled Debt Restructuring [Member]
Loans held for sale	3,300
Pass [Member]
Total loans	$ 133,900
Pass [Member] | Credit Concentration Risk [Member]
Concentration of Loan (as a percentage)	67.30%

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Other Real Estate [Roll Forward]
Balance, beginning of year	$ 13,624	$ 19,501
Additions	766	4,058
Sales	(2,809)	(9,709)
Write-downs	(4,325)	(226)
Balance, end of period	$ 7,256	$ 13,624

OTHER REAL ESTATE OWNED (Deta56

OTHER REAL ESTATE OWNED (Details Narrtive) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016USD ($)Number	Dec. 31, 2015USD ($)	Jul. 07, 2016USD ($)
Write-downs expenses	$ (4,325)	$ (226)
Subsequent Event [Member]
Number of properties | Number	11
Other real estate	$ 270		$ 270
Write-downs expenses	$ 584

ADVANCES FROM THE FEDERAL HOM57

ADVANCES FROM THE FEDERAL HOME LOAN BANK (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Loan Balance	$ 17,000
Convertible Advance 2018-09-04 [Member]
Interest Rate	3.60%
Maturity Date	Sep. 4, 2018
Loan Balance	$ 2,000
Convertible Advance 2018-09-10 [Member]
Interest Rate	3.45%
Maturity Date	Sep. 10, 2018
Loan Balance	$ 5,000
Convertible Advance 2018-09-18 [Member]
Interest Rate	2.95%
Maturity Date	Sep. 18, 2018
Loan Balance	$ 5,000
Convertible Advance 2019-08-20 [Member]
Interest Rate	3.86%
Maturity Date	Aug. 20, 2019
Loan Balance	$ 5,000

ADVANCES FROM THE FEDERAL HOM58

ADVANCES FROM THE FEDERAL HOME LOAN BANK (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2016
Federal Home Loan Bank Stock			$ 1,100
Excess borrowing capacity with FHLB			7,400
Scheduled principal reductions	$ 5,000	$ 12,000
One To Four Family Residential Properties [Member]
First mortgage loans pledged as collateral			3,200
Commercial Real Estate [Member]
First mortgage loans pledged as collateral			1,300
Home Equity Lines Of Credit [Member]
First mortgage loans pledged as collateral			4,000
Mortgage Backed Securities [Member]
First mortgage loans pledged as collateral			$ 12,000

JUNIOR SUBORDINATED DEBENTURE59

JUNIOR SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 11, 2016	Dec. 31, 2015
Assets
Other assets	$ 2,155		$ 884
Liabilities
Junior subordinated debentures			6,117
Accrued interest payable	$ 123		$ 5,958
Junior Subordinated Debt [Member]
Assets
Other assets		$ 186
Reduction to assets		186
Liabilities
Junior subordinated debentures		6,117
Accrued interest payable		958
Reduction to liabilities		7,075
Cash paid		(617)
Gain on extinguishment of debt		$ 6,272

JUNIOR SUBORDINATED DEBENTURE60

JUNIOR SUBORDINATED DEBENTURES (Details Narrative) - USD ($) $ in Thousands	Apr. 11, 2016	Dec. 21, 2004	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Subordinated Borrowing [Line Items]
Amortization of debt issuance costs			$ 2
Junior Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Debt issuance costs net of accumulated amortization			73
Amortization of debt issuance costs			$ 4		$ 4	$ 4
Hcsb Financial Trust I [Member]
Subordinated Borrowing [Line Items]
Proceeds from Preferred securities issued and sold		$ 6,000
Initial proceed from capital investment in trust		186
Funds due to trust		$ 6,200
Deferred interest payments	$ 958

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 11, 2016	Dec. 31, 2015	Jul. 30, 2010
Liabilities
Subordinated debentures			$ 11,021	$ 12,100
Accrued interest payable	$ 123		$ 5,958
Subordinated Debt [Member]
Assets
Reduction to assets
Liabilities
Subordinated debentures		11,023
Accrued interest payable		5,274
Reduction to liabilities		16,297
Cash paid		(3,454)
Gain on extinguishment of debt		$ 12,843

SUBORDINATED DEBENTURES (Deta62

SUBORDINATED DEBENTURES (Details Narrative) - USD ($) $ in Thousands	1 Months Ended
	Jul. 30, 2011	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 30, 2010
Subordinated Borrowings [Abstract]
Subordinated debentures			$ 11,021		$ 12,100
Subordinated promissory note interest rate	9.00%
Subordinated promissory note callable	4 years
Subordinated promissory note term	10 years
Subordinated borrowing terms and conditions	Interest at a rate equal to the current Prime Rate in effect, as published by the Wall Street Journal, plus 3
Subordinated promissory note current Prime Rate margin					3.00%
Subordinated promissory note interest rate floor	8.00%
Subordinated promissory note interest rate ceiling	12.00%
Subordinated debt cancelled				$ 1,000

SHAREHOLDERS' EQUITY AND CAPI63

SHAREHOLDERS' EQUITY AND CAPITAL REQUIREMENTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Apr. 11, 2016	Mar. 31, 2014	Jun. 30, 2016	Dec. 31, 2014	Dec. 31, 2015	Mar. 06, 2009
Approximate quarterly interest payments on trust preferred securities		$ 161		$ 290
Accrued dividend payments due on Series T Preferred Stock	$ 5,100
Series T Preferred Stock [Member]
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, shares issued to U.S. Treasury						12,895
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, Liquidation preference (per share)						$ 1,000
Dividend Rate for first five years			5.00%
Dividend Rate after first five years			9.00%
Aggregate purchase price of Fixed Rate Cumulative Perpetual Preferred Stock, Series T						$ 12,900
Capital Purchase Program Warrant [Member]
Maximum number of common stock shares purchased under ten-year warrant					91,714
Common stock, initial exercise price					$ 21.09

SHAREHOLDERS' EQUITY AND CAPI64

SHAREHOLDERS' EQUITY AND CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
The Company [Member]
Total capital (to risk weighted assets)
Actual Amount		$ 40,303	$ (10,642)
Actual Ratio (as a percent)		17.28%	(4.15%)
For Capital Adequacy Purposes Amount		$ 18,661	$ 20,537
For Capital Adequacy Purposes Ratio (as a percent)		8.00%	8.00%
Tier I capital (to risk weighted assets)
Actual Amount		$ 37,368	$ (10,642)
Actual Ratio (as a percent)		16.02%	(4.15%)
For Capital Adequacy Purposes Amount		$ 9,331	$ 10,269
For Capital Adequacy Purposes Ratio (as a percent)		4.00%	4.00%
Tier I capital (to average assets)
Actual Amount		$ 37,368	$ (10,642)
Actual Ratio (as a percent)		9.68%	(2.87%)
For Capital Adequacy Purposes Amount		$ 15,447	$ 14,831
For Capital Adequacy Purposes Ratio (as a percent)		4.00%	4.00%
The Bank [Member]
Total capital (to risk weighted assets)
Actual Amount		$ 41,053	$ 15,402
Actual Ratio (as a percent)		17.58%	5.92%
For Capital Adequacy Purposes Amount		$ 18,682	$ 20,802
For Capital Adequacy Purposes Ratio (as a percent)		8.00%	8.00%
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount		$ 23,353	$ 26,002
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)		10.00%	10.00%
Tier I capital (to risk weighted assets)
Actual Amount		$ 38,114	$ 12,135
Actual Ratio (as a percent)		16.32%	4.67%
For Capital Adequacy Purposes Amount		$ 14,012	$ 15,601
For Capital Adequacy Purposes Ratio (as a percent)		6.00%	6.00%
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount	[1]
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	[1]
Tier I capital (to average assets)
Actual Amount		$ 38,114	$ 12,135
Actual Ratio (as a percent)		9.90%	3.28%
For Capital Adequacy Purposes Amount		$ 15,397	$ 14,819
For Capital Adequacy Purposes Ratio (as a percent)		4.00%	4.00%
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount		$ 30,793	$ 29,639
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)		8.00%	8.00%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
CET1 capital to risk-weighted assets, Actual Amount		$ 38,114	$ 12,135
CET1 capital to risk-weighted assets, Actual Percent		16.32%	4.67%
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount		$ 10,509	$ 11,701
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent		4.50%	4.50%
[1]	Minimum capital amounts and ratios presented as of June 30, 2016 and December 31, 2015, are amounts to be well-capitalized under the various regulatory capital requirements administered by the FDIC. On February 10, 2011, the Bank became subject to a regulatory Consent Order with the FDIC and the State Board. Minimum capital amounts and ratios presented for the Bank as of June 30, 2016 and December 31, 2015, are the minimum levels set forth in the Consent Order. No minimum Tier 1 capital to risk-weighted assets ratio was specified in the Consent Order. Regardless of the Bank's capital ratios, it is unable to be classified as "well-capitalized" while it is operating under the Consent Order.

INCOME (LOSS) PER SHARE (Detail

INCOME (LOSS) PER 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
Basic loss per common share:
Net loss available to common shareholders	$ 9,913	$ (703)	$ 6,630	$ (798)
Weighted average common shares outstanding - basic	319,862,554	3,816,340	161,854,447	3,816,340
Basic loss per common share	$ 0.03	$ (0.18)	$ 0.04	$ (0.21)
Diluted loss per common share:
Net loss available to common shareholders	$ 9,913	$ (703)	$ 6,630	$ (798)
Weighted average common shares outstanding - basic	319,862,554	3,816,340	161,854,447	3,816,340
Incremental shares from assumed conversion of stock options and restricted stock awards
Average common shares outstanding - diluted	319,862,554	3,816,340	161,854,447	3,816,340
Diluted loss per common share	$ 0.03	$ (0.18)	$ 0.04	$ (0.21)
Antidilutive stock options excluded from computation of earnings per share (in shares)		91,714		91,714

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Financial Assets:
Securities available-for-sale		$ 80,969	$ 89,701
Loans held for sale		4,280
Assets held for sale		768
Commitments To Extend Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount		28,411	21,318
Standby Letters Of Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount		183	257
Fair Value Inputs Level2 [Member]
Financial Assets:
Securities available-for-sale		80,969	89,701
Loans held for sale		4,280
Financial Liabilities:
Certificates of deposit		159,977	174,964
Repurchase agreements		1,659	1,716
Advances from the Federal Home Loan Bank		17,000	17,108
Fair Value Inputs Level3 [Member]
Financial Assets:
Nonmarketable equity securities		1,090	1,330
Loans, net		193,287	204,975
Assets held for sale		768
Fair Value Inputs Level1 [Member]
Financial Assets:
Cash and cash equivalents		64,024	22,137
Financial Liabilities:
Demand deposit, interest-bearing transaction, and savings accounts		163,268	156,860
Carrying Reported Amount Fair Value Disclosure [Member]
Financial Assets:
Cash and cash equivalents		64,024	22,137
Securities available-for-sale		80,969	89,701
Nonmarketable equity securities		1,090	1,330
Loans held for sale		4,280
Loans, net		194,580	204,766
Assets held for sale		768
Financial Liabilities:
Demand deposit, interest-bearing transaction, and savings accounts		163,268	156,860
Certificates of deposit		159,974	173,971
Repurchase agreements		1,659	1,716
Advances from the Federal Home Loan Bank		17,000	17,000
Subordinated debentures			11,021
Junior subordinated debentures			6,117
Estimate Of Fair Value Fair Value Disclosure [Member]
Financial Assets:
Cash and cash equivalents		64,024	22,137
Securities available-for-sale		80,969	89,701
Nonmarketable equity securities		1,090	1,330
Loans held for sale		4,280
Loans, net		193,287	204,975
Assets held for sale		768
Financial Liabilities:
Demand deposit, interest-bearing transaction, and savings accounts		163,268	156,860
Certificates of deposit		159,977	174,964
Repurchase agreements		1,659	1,716
Advances from the Federal Home Loan Bank		$ 17,000	17,108
Subordinated debentures	[1]
Junior subordinated debentures	[1]
[1]	The Company is unable to determine this value.

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets and liabilities fair value disclosure	$ 80,969	$ 89,701
Fair Value Inputs Level2 [Member]
Assets and liabilities fair value disclosure	80,969	89,701
Mortgage Backed Securities [Member]
Assets and liabilities fair value disclosure	53,388	52,445
Mortgage Backed Securities [Member] | Fair Value Inputs Level2 [Member]
Assets and liabilities fair value disclosure	53,388	52,445
Obligations of state and local governments [Member]
Assets and liabilities fair value disclosure	5,801	1,224
Obligations of state and local governments [Member] | Fair Value Inputs Level2 [Member]
Assets and liabilities fair value disclosure	5,801	1,224
Government Sponsored Enterprises Debt Securities [Member]
Assets and liabilities fair value disclosure	21,780	36,032
Government Sponsored Enterprises Debt Securities [Member] | Fair Value Inputs Level2 [Member]
Assets and liabilities fair value disclosure	$ 21,780	$ 36,032

FAIR VALUE (Details 3)

FAIR VALUE (Details 3) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair value of assets	$ 34,952	$ 46,382
Fair Value Inputs Level3 [Member]
Fair value of assets	30,672	46,382
Impaired Loans [Member]
Fair value of assets	22,648	32,758
Impaired Loans [Member] | Fair Value Inputs Level3 [Member]
Fair value of assets	22,648	32,758
Assets held for sale [Member]
Fair value of assets	768
Assets held for sale [Member] | Fair Value Inputs Level3 [Member]
Fair value of assets	768
Other Real Estate Owned [Member]
Fair value of assets	7,256	13,624
Other Real Estate Owned [Member] | Fair Value Inputs Level3 [Member]
Fair value of assets	7,256	$ 13,624
Loans Held For Sale [Member]
Fair value of assets	4,280
Loans Held For Sale [Member] | Fair Value Inputs Level2 [Member]
Fair value of assets	$ 4,280

FAIR VALUE (Details 4)

FAIR VALUE (Details 4) - Fair Value Inputs Level3 [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Other Real Estate Owned [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Valuation Techniques	Appraised Value/ Discounted Cash Flows	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	10.00%	10.00%
Fair value on a non-recurring basis	$ 7,256	$ 13,624
Assets held for sale [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Valuation Techniques	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	10.00%
Fair value on a non-recurring basis	$ 768
Minimum [Member] | Other Real Estate Owned [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%	0.00%
Minimum [Member] | Assets held for sale [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%
Maximum [Member] | Other Real Estate Owned [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	10.00%	10.00%
Maximum [Member] | Assets held for sale [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	10.00%
Commercial Loan [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Fair value on a non-recurring basis	$ 1,605	$ 2,590
Valuation Techniques	Appraised Value/ Discounted Cash Flows	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	1.00%	8.77%
Commercial Loan [Member] | Minimum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%	0.00%
Commercial Loan [Member] | Maximum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	23.50%	10.00%
Consumer Loan [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Fair value on a non-recurring basis	$ 88	$ 124
Valuation Techniques	Appraised Value/ Discounted Cash Flows	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	1.11%	10.00%
Consumer Loan [Member] | Minimum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%	0.00%
Consumer Loan [Member] | Maximum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	10.00%	10.00%
Residential Portfolio Segment [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Fair value on a non-recurring basis	$ 7,306	$ 8,858
Valuation Techniques	Appraised Value/ Discounted Cash Flows	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	11.57%	9.90%
Residential Portfolio Segment [Member] | Minimum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%	0.00%
Residential Portfolio Segment [Member] | Maximum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	46.60%	10.00%
Commercial Real Estate [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Fair value on a non-recurring basis	$ 13,649	$ 21,186
Valuation Techniques	Appraised Value/ Discounted Cash Flows	Appraised Value/ Discounted Cash Flows
Unobservable Inputs	Appraisals and/or sales of comparable properties/ Independent quotes	Appraisals and/or sales of comparable properties/ Independent quotes
Range (Weighted Avg)	7.20%	10.23%
Commercial Real Estate [Member] | Minimum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	0.00%	0.00%
Commercial Real Estate [Member] | Maximum [Member] | Impaired Loans [Member]
Quantitative Information For Financial Instruments Measured At Fair Value On A Non-Recurring Basis [Line Items]
Range	32.33%	32.33%

SUBSEQUENT EVENTS (DetailsNarra

SUBSEQUENT EVENTS (DetailsNarrative) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Value of shares issued	$ 35,947
2016 Public Offering [Member]
Number of shares issued | shares	14,167,600
Value of shares issued	$ 1,400
Share price | $ / shares	$ 0.10