MVB Financial (MVBF) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 06, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	MVB FINANCIAL CORP
Entity Central Index Key	1,277,902
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,996,978

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Cash and cash equivalents:
Cash and due from banks	$ 11,944	$ 13,403
Interest bearing balances	2,070	16,674
Total cash and cash equivalents	14,014	30,077
Certificates of deposit with other banks	11,659	11,907
Investment Securities:
Securities available-for-sale	65,855	68,213
Securities held-to-maturity (fair value of $53,441 for 2015 and $55,871 for 2014)	53,141	54,538
Loans held for sale	116,307	69,527
Loans:	911,085	798,297
Less: Allowance for loan losses	(7,047)	(6,223)
Net Loans	904,038	792,074
Bank premises, furniture and equipment	25,645	25,472
Bank owned life insurance	22,011	21,679
Accrued interest receivable and other assets	22,617	19,193
Goodwill	17,779	17,779
Total assets	1,253,066	1,110,459
Deposits:
Non-interest bearing	76,666	67,066
Interest bearing	814,303	756,161
Total Deposits	890,969	823,227
Accrued interest, taxes, and other liabilities	10,791	10,310
Repurchase agreements	26,263	32,673
FHLB and other borrowings	178,245	101,287
Subordinated debt	33,524	33,524
Total Liabilities	1,139,792	1,001,021
STOCKHOLDERS' EQUITY
Preferred stock, par value $1,000; 20,783 authorized and 9,283 issued in 2015 and 2014, respectively	16,334	16,334
Common stock, par value $1; 20,000,000 shares authorized; 8,047,550 and 8,034,362 issued; and 7,996,473 and 7,983,285 outstanding in 2015 and 2014, respectively	8,048	8,034
Additional paid-in capital	74,450	74,342
Retained earnings	17,858	14,454
Accumulated other comprehensive loss	(2,332)	(2,642)
Treasury Stock, 51,077 shares, at cost	(1,084)	(1,084)
Total Stockholders' Equity	113,274	109,438
Total liabilities and stockholders’ equity	$ 1,253,066	$ 1,110,459

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Securities held-to-maturity, fair value	$ 53,441	$ 55,871
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	20,783	20,783
Preferred stock, shares issued	9,283	9,283
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,047,550	8,034,362
Common stock, shares outstanding	7,996,473	7,983,285
Treasury stock, shares	51,077	51,077

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income
Interest and fees on loans	$ 9,839	$ 7,996	$ 18,603	$ 15,162
Interest on deposits with other banks	63	51	127	97
Interest on investment securities - taxable	222	358	461	769
Interest on tax exempt loans and securities	570	757	1,141	1,511
Total interest income	10,694	9,162	20,332	17,539
Interest expense
Deposits	1,522	1,691	2,889	2,796
Repurchase agreements	20	107	44	233
FHLB and other borrowings	177	143	334	273
Subordinated debt	549	26	1,092	45
Total interest expense	2,268	1,967	4,359	3,347
Net interest income	8,426	7,195	15,973	14,192
Provision for loan losses	561	889	1,220	1,408
Net interest income after provision for loan losses	7,865	6,306	14,753	12,784
Noninterest income
Service charges on deposit accounts	164	171	296	317
Income on bank owned life insurance	165	127	332	255
Visa debit card and interchange income	231	203	440	370
Mortgage fee income	8,617	4,333	14,926	7,543
Gain on sale of portfolio loans	454	658	800	1,333
Insurance and investment services income	965	820	2,663	1,836
Gain on sale of securities	5	125	126	125
Gain (loss) on derivatives	(143)	604	2,106	939
Other operating income	76	25	256	102
Total noninterest income	10,534	7,066	21,945	12,820
Noninterest expense
Salary and employee benefits	10,194	7,932	19,928	14,729
Occupancy expense	880	677	1,755	1,304
Equipment depreciation and maintenance	484	349	967	711
Data processing and communications	944	696	1,870	1,381
Mortgage processing	790	567	1,536	1,112
Marketing, contributions and sponsorships	359	290	696	535
Professional fees	619	380	1,281	878
Printing, postage and supplies	170	199	356	392
Insurance, tax and assessment expense	419	385	847	724
Travel, entertainment, dues and subscriptions	432	362	752	674
Other operating expenses	420	351	690	584
Total noninterest expense	15,711	12,188	30,678	23,024
Income before income taxes	2,688	1,184	6,020	2,580
Income tax expense	783	215	2,012	453
Net Income	1,905	969	4,008	2,127
Preferred dividends	143	22	285	43
Net Income available to common shareholders	$ 1,762	$ 947	$ 3,723	$ 2,084
Earnings per share - basic (in dollars per share)	$ 0.22	$ 0.12	$ 0.47	$ 0.27
Earnings per share - diluted (in dollars per share)	$ 0.22	$ 0.12	$ 0.46	$ 0.26
Weighted average shares outstanding - basic (in shares)	7,987,333	7,897,242	7,985,320	7,778,152
Weighted average shares outstanding - diluted (in shares)	8,674,241	8,110,791	8,672,228	7,991,701

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income
Net Income	$ 1,905	$ 969	$ 4,008	$ 2,127
Other comprehensive income:
Unrealized holding gains during the year	(425)	1,109	114	1,646
Income tax effect	170	(443)	(44)	(658)
Reclassification adjustment for gain recognized in income	(5)	(125)	(126)	(125)
Income tax effect	2	50	50	50
Change in defined benefit pension plan	800	(315)	527	(315)
Income tax effect	(320)	126	(211)	126
Other comprehensive income	222	402	310	724
Comprehensive income	$ 2,127	$ 1,371	$ 4,318	$ 2,851

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net Income	$ 4,008,000	$ 2,127,000
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net amortization and accretion of investments	387,000	434,000
Net amortization of deferred loan fees	(4,000)	27,000
Provision for loan losses	1,220,000	1,408,000
Depreciation and amortization	932,000	587,000
Stock based compensation	203,000	129,000
Loans originated for sale	(708,970,000)	(381,190,000)
Proceeds of loans sold	677,116,000	408,709,000
Mortgage fee income	(14,926,000)	(7,543,000)
Gain on sale of investment securities	(126,000)	(125,000)
Income on bank owned life insurance	(332,000)	(255,000)
Deferred taxes	254,000	(936,000)
Other, net	(195,000)	150,000
Net cash (used in) provided by operating activities	(40,433,000)	23,522,000
Investing activities
Purchases of investment securities available-for-sale	(22,733,000)	(24,268,000)
Purchases of investment securities held-to-maturity		(250,000)
Maturities/paydowns of investment securities held-to-maturity	790,000	750,000
Maturities/paydowns of investment securities available-for-sale	13,521,000	4,759,000
Sales of investment securities available-for-sale	11,484,000	37,177,000
Sales of investment securities held-to-maturity	421,000
Purchases of premises and equipment	(1,105,000)	(4,962,000)
Net increase in loans	(113,180,000)	(112,078,000)
Purchases of restricted bank stock	(12,418,000)	(7,361,000)
Redemptions of restricted bank stock	9,498,000	5,937,000
Proceeds from sale of certificates of deposit with banks	248,000	76,000
Proceeds from sale of other real estate owned	239,000
Purchase of bank owned life insurance		(5,000,000)
Net cash used in investing activities	(113,235,000)	(105,220,000)
Financing activities
Net increase in deposits	67,742,000	51,232,000
Net (decrease) in repurchase agreements	(6,410,000)	(45,057,000)
Net change in short-term FHLB borrowings	77,041,000	22,202,000
Principal payments on FHLB borrowings	(83,000)	(1,080,000)
Proceeds from subordinated debt		29,313,000
Proceeds from stock offering		5,662,000
Preferred stock issuance		7,834,000
Dividend reinvestment plan proceeds		180,000
Common stock options exercised	(81,000)	48,000
Cash dividends paid on common stock	(319,000)	(317,000)
Cash dividends paid on preferred stock	(285,000)	(43,000)
Net cash provided by financing activities	137,605,000	69,974,000
(Decrease) increase in cash and cash equivalents	(16,063,000)	(11,724,000)
Cash and cash equivalents at beginning of period	30,077,000	39,843,000
Cash and cash equivalents at end of period	14,014,000	28,119,000
Supplemental disclosure of cash flow information
Loans transferred to other real estate owned		146,000
Cashless stock options exercised	169,000
Cash payments for:
Interest on deposits, repurchase agreements and borrowings	5,391,000	3,632,000
Income taxes	$ 1,900,000	$ 1,020,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	MVB Financial Corp. and Subsidiaries Notes to Consolidated Financial Statement s Note 1 – Basis of Presentation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10 ‑Q. Accordingly, they do not include all the information and footnotes required by GAAP for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, have been included and are of a normal, recurring nature. The consolidated balance sheet as of December 31, 2014 has been derived from audited financial statements included in the Company’s 2014 filing on Form 10-K. Operating results for the six and three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accounting and reporting policies of MVB Financial Corp. (“the Company” or “MVB”) and its subsidiaries (“Subsidiaries”), including MVB Bank, Inc. (the “Bank”), the Bank’s subsidiary Potomac Mortgage Group, Inc., which does business as MVB Mortgage (“MVB Mortgage”) and MVB Insurance, LLC, conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in MVB’s December 31, 2014, Form 10-K filed with the Securities and Exchange Commission. In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. Specifically, a portion of the prior periods’ interest income and interest expense was classified as gain on loans held for sale and has been reclassified in the current presentation. Information is presented in these notes with dollars expressed in thousands, unless otherwise noted or specified.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2 – Recent Accounting Pronouncements In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 5 to the Consolidated Financial Statements). The Company adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Company's Consolidated Financial Statements but resulted in additional disclosures. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): “Amendments to the Consolidation Analysis.” The amendments modify the evaluation reporting organizations must perform to determine if certain legal entities should be consolidated as VIEs. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the provisions of ASU No. 2015-02 to determine the potential impact the new standard will have on the Company's consolidated financial statements.

Investments

Investments	6 Months Ended
	Jun. 30, 2015
INVESTMENTS
INVESTMENTS	Note 3 – Investments Amortized cost and fair values of investment securities held-to-maturity at June 30, 2015, including gross unrealized gains and losses, are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value Municipal securities $ $ $ $ Total investment securities held-to-maturity $ $ $ $ Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value Municipal securities $ $ $ $ Total investment securities held–to-maturity $ $ $ $ Amortized cost and fair values of investment securities available-for-sale at June 30, 2015 are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value U.S. Agency securities $ $ $ $ U.S. Sponsored Mortgage-backed securities Total debt securities Equity and other securities — Total investment securities available-for-sale $ $ $ $ Amortized cost and fair values of investment securities available-for-sale at December 31, 2014 are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value U.S. Agency securities $ $ $ $ U.S. Sponsored Mortgage-backed securities Total debt securities Equity and other securities — Total investment securities available-for-sale $ $ $ $ The following tables summarize amortized cost and fair values of debt securities by maturity at June 30, 2015: Held to Maturity Available for sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ — $ — $ — $ — After one year, but within five After five years, but within ten After ten years Total $ $ $ $ Investment securities with a carrying value of $114,838 at June 30, 2015, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window. The Company's investment portfolio includes securities that are in an unrealized loss position as of June 30, 2015, the details of which are included in the following table. Although these securities, if sold at June 30, 2015 would result in a pretax loss of $1,539 , the Company has no intent to sell the applicable securities at such market values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Declines in the market values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company's ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of June 30, 2015, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in market value. The following table discloses investments in an unrealized loss position at June 30, 2015: Description and number of positions Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (9) $ $ $ $ U.S. Sponsored Mortgage-backed securities (15) Municipal securities (60) $ $ $ $ The following table discloses investments in an unrealized loss position at December 31, 2014: Description and number of positions Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (9) $ $ $ $ U.S. Sponsored Mortgage-backed securities (8) Municipal securities (42) $ $ $ $ For the three month period ended June 30, 2015 and 2014, the Company sold investments available-for-sale of $0 and $37.2 million, respectively, resulting in gross gains of $0 and $214 and gross losses of $0 and $89 . For the six month period ended June 30, 2015 and 2014, the Company sold investments available-for-sale of $11.4 million and $37.2 million, respectively, resulting in gross gains of $ 121 and $ 214 and gross losses of $0 and $89 . For the three and six month periods ended June 30, 2015, the Company sold investments held-to-maturity of $421 , resulting in gross gains of $ 5 . The held-to-maturity investment was sold due to a credit downgrade. The Company sold no held-to-maturity investments during 2014.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2015
LOANS AND ALLOWANCE FOR LOAN LOSSES
LOANS AND ALLOWANCE FOR LOAN LOSSES	Note 4 – Loans and Allowance for Loan Losses The following table summarizes the primary segments of the allowance for loan losses (“ALL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2015: Home (in thousands) Commercial Residential Equity Consumer Total ALL balance March 31, 2015 $ $ $ $ $ Charge-offs — — — — — Recoveries — — — Provision ALL balance June 30, 2015 $ $ $ $ $ Home Commercial Residential Equity Consumer Total ALL balance December 31, 2014 $ $ $ $ $ Charge-offs — — Recoveries Provision ALL balance June 30, 2015 $ $ $ $ $ Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment $ $ $ $ $ The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2015: (in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment Total Loans $ $ $ $ $ The following table summarizes the primary segments of the allowance for loan losses (“ALL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2014: Home (in thousands) Commercial Residential Equity Consumer Total ALL balance March 31, 2014 $ $ $ $ $ Charge-offs — — Recoveries — — Provision ALL balance June 30, 2014 $ $ $ $ $ Home Commercial Residential Equity Consumer Total ALL balance December 31, 2013 $ $ $ $ $ Charge-offs — — Recoveries — Provision ALL balance June 30, 2014 $ $ $ $ $ Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment $ $ $ $ $ The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2014: (in thousands) Commercial Residential Equity Consumer Total Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment Total Loans $ $ $ $ $ The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. All loan origination fees and direct loan origination costs are deferred and recognized over the life of the loan. As of June 30, 2015 and 2014, net deferred fees and costs of $1,186 and $1,596 , respectively, were included in the carrying value of loans. During December 2013 the Bank purchased $74.3 million in performing commercial real estate secured loans in the northern Virginia area. At the time of acquisition, none of these loans were considered impaired. They were acquired at a premium of roughly 1.024 or $1.8 million, which is being amortized in accordance with ASC 310-20. These loans , with the exception of one, are collectively evaluated for impairment under ASC 450. The l oans continue to be individually monitored for payoff activity, and any necessary adjustments to the premium are made accordingly. The loan that has been individually evaluated for impairment is discussed in further detail below in the discussion of impaired loans. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2015 and December 31, 2014 (in thousands): Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal June 30, 2015 Investment Allowance Investment Investment Balance Commercial Commercial Business $ — $ — $ $ $ Commercial Real Estate — Acquisition & Development Total Commercial Residential Home Equity — Consumer Total impaired loans $ $ $ $ $ December 31, 2014 Commercial Commercial Business $ — $ — $ $ $ Commercial Real Estate Acquisition & Development Total Commercial Residential — Home Equity — Consumer — Total impaired loans $ $ $ $ $ Impaired loans have decreased during 2015, primarily as the result of three loans, of which the recorded investment of each has decreased for various reasons. A loan that is dependent upon the condition of the coal industry, which had a balance of $3.6 million as of December 31, 2014, was reduced by principal payments totaling $567 and now represents a recorded investment of $3.0 million. Meanwhile, two unrelated acquisition and development loans with a total December 31, 2014 balance of $3.1 million were r educed as the result of a principal curtailment of a $268 and a $300 charge-off. These two loans now represent a total recorded investment of $2.5 million. Meanwhile, it is important to note that $8.1 million, or 59% , of the $13.7 million total recorded investment in impaired loans as of June 30, 2015 was concentrated in just two impaired loans. Furthermore, one of the two loans had a balance of $5.0 million and is a loan to finance a commercial real estate property in the Northern Virginia market, which had as primary tenants, government contractors that have vacated the premises as a result of losing significant contracts with the United States government. This loan was purchased from another financial institution in late 2013 but it is the Bank’s position that the “Loan Sales Agreement” has been breached by the selling institution and legal recourse is being pursued by the Bank. The following tables present the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands): Six months ended Three months ended June 30, 2015 June 30, 2015 Interest Interest Interest Interest Average Income Income Average Income Income Investment Recognized Recognized on Investment Recognized Recognized in Impaired on Accrual Cash in Impaired on Accrual on Cash Loans Basis Basis Loans Basis Basis Commercial Commercial Business $ $ $ Commercial Real Estate Acquisition & Development Total Commercial Residential — Home Equity — — Consumer — — — — Total $ $ $ $ $ $ Six months ended Three months ended June 30, 2014 June 30, 2014 Average Interest Interest Average Interest Interest Investment Income Income Investment Income Income in Impaired Recognized on Recognized on in Impaired Recognized on Recognized on Loans Accrual Basis Cash Basis Loans Accrual Basis Cash Basis Commercial Commercial Business $ — $ — $ — $ — $ — $ — Commercial Real Estate Acquisition & Development Total Commercial Residential Home Equity — — — Consumer — — Total $ $ $ $ $ $ As of June 30, 2015, the Bank did not hold any foreclosed residential real estate property. However, there were five consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure. The total recorded investment in these loans was $420 as of June 30, 2015. Bank management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as "Pass" rated. The criticized rating categories utilized by Bank management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. The portion of any loan that represents a specific allocation of the allowance for loan losses is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank's Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of one million dollars or greater is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process, and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Bank’s Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2015 and December 31, 2014 (in thousands): Special June 30, 2015 Pass Mention Substandard Doubtful Total Commercial Commercial Business $ $ $ $ — $ Commercial Real Estate — Acquisition & Development Total Commercial Residential Home Equity — Consumer — Total Loans $ $ $ $ $ Special December 31, 2014 Pass Mention Substandard Doubtful Total Commercial Commercial Business $ $ $ $ — $ Commercial Real Estate — Acquisition & Development Total Commercial Residential — Home Equity — Consumer — Total Loans $ $ $ $ $ Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan that has deteriorated and is in a collection process could warrant non-accrual status. A thorough review is to be presented to the Chief Credit Officer and or the Management Loan Committee ("MLC"), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status will be subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan approaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments , when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest should be charged off when a loan is placed in non-accrual status. Any payments subsequently received should be applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and or MLC. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2015 and December 31, 2014 (in thousands): 30-59 Days 60-89 Days 90 Days + Total Non- 90+ Days June 30, 2015 Current Past Due Past Due Past Due Past Due Total Loans Accrual Still Accruing Commercial Commercial Business $ $ $ — $ $ $ $ $ Commercial Real Estate Acquisition & Development — — Total Commercial Residential — Home Equity — — Consumer Total $ $ $ $ $ $ $ $ 30-59 Days 60-89 Days 90 Days + Total Non- 90+ Days December 31, 2014 Current Past Due Past Due Past Due Past Due Total Loans Accrual Still Accruing Commercial Commercial Business $ $ $ $ $ $ $ $ Commercial Real Estate — Acquisition & Development — — — Total Commercial Residential Home Equity — — — — Consumer — — — — Total $ $ $ $ $ $ $ $ The ALL is maintained to absorb losses from the loan portfolio. The ALL is based on the Bank management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank's methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank's ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualified factors. The segments described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Company and Bank management track the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters. "Pass" rated credits are segregated from "Criticized" credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Company and Bank management have identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volume and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan’s risk grading deteriorates. Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. To estimate the liability for off-balance sheet credit exposures, bank management analyzed the portfolios of letters of credit, non-revolving lines of credit, and revolving lines of credit, and based its calculation on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in the similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the off-balance sheet liability related to these loans. Troubled Debt Restructurings The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. No new TDR’s have defaulted. At June 30, 2015 and December 31, 2014, the Bank had specific reserve allocations for TDR’s of $619 and $582 , respectively . The following tables present details related to loans identified as TDR’s for the periods indicated (in thousands): New TDRs (1) For the Six months ended For the Three months ended June 30, 2014 June 30, 2014 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Commercial Acquisition and development $ $ — $ — $ — Total Commercial — — — Residential Real Estate — — — Total $ $ — $ — $ — (1) The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan. There were no new TDR’s for the six and three months ended June 30, 2015.

Borrowed Funds

Borrowed Funds	6 Months Ended
	Jun. 30, 2015
BORROWED FUNDS
BORROWED FUNDS	NOTE 5 - BORROWED FUNDS Short-term Borrowings Along with traditional deposits, the Bank has access to short-term borrowings from FHLB to fund its operations and investments. Short-term borrowings from FHLB totaled $1 72 . 9 million at June 30, 2015 , compared to $95.8 million at December 31, 2014. Information related to short-term borrowings is summarized as follows : June 30, December 31, (Dollars in thousands) 2015 2014 Balance at end of period $ $ Average balance during the three and twelve months ended Maximum month-end balance during the three and twelve months ended Weighted-average rate during the three and twelve months ended % % Rate at end of period % % Repurchase agreements: Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase “repurchase agreements” with customers represent funds deposited by customers, on an overnight basis, that are collateralized by investment securities owned by the Company. Repurchase agreements with customers are included in borrowings section on the consolidated balance sheets. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between the Company and the client and are accounted for as secured borrowings. The Company's repurchase agreements reflected in liabilities consist of customer accounts and securities which are pledged on an individual security basis. As of June 30, 2015 and December 31, 2014, the Bank had repurchase agreements of $26.3 million and $32.7 million, respectively. These borrowings were collateralized by investment securities and FHLB letters of credit with a carrying value of $116.2 million and $163.7 million at June 30, 2015 and December 31, 2014, respectively. Declines in the value of the collateral would require the Company to pledge additional securities. As of June 30, 2015 and December 31, 2014 the Company had $3.9 million and $5.6 million, respectively, of available unpledged securities. Information related to repurchase agreements is summarized as follows: June 30, December 31, (Dollars in thousands) 2015 2014 Balance at end of period $ $ Average balance during the three and twelve months ended Maximum month-end balance during the three and twelve months ended Weighted-average rate during the three and twelve months ended % % Rate at end of period % % Term notes from the FHLB were as follows: June 30, December 31, (Dollars in thousands) 2015 2014 Fixed interest rate notes, originating between April 2002 and December 2007, due between July 2016 and April 2022, interest of between 4.50% and 5.90% payable monthly $ $ Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 , including interest of 5.22% $ $ Subordinated Debt In March 2007, the Company completed the private placement of $4 million Floating Rate, Trust Preferred Securities through its MVB Financial Statutory Trust I subsidiary (the “Trust”). The Company established the trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The proceeds from the sale of the Trust Preferred Securities were loaned to the Company under subordinated Debentures (the “Debentures”) issued to the Trust pursuant to an Indenture. The Debentures are the only asset of the Trust. The Trust Preferred Securities have been issued to a pooling vehicle that will use the distributions on the Trust Preferred Securities to securitize note obligations. The obligations of the Company with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. The securities issued by the Trust are includable for regulatory purposes as a component of the Company’s Tier I capital. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by the Company since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three month LIBOR Rate. The obligations of the Company with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of the Trust's obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. On June 30, 2014, MVB Financial Corp. (the “Company”) issued its Convertible Subordinated Promissory Notes Due 2024 (the “Notes”) to various investors in the aggregate principal amount of $29,400,000 . The Notes were issued in $100,000 increments per Note subject to a minimum investment of $1,000,000 . The Notes expire 10 years after the initial issuance date of the Notes (the “Maturity Date”). Interest on the Notes accrues on the unpaid principal amount of each Note (paid quarterly in arrears on January 1, April 1, July 1 and October 1 of each year) which rate shall be dependent upon the principal invested in the Notes and the holder’s ownership of common stock in the Company. For investments of less than $3,000,000 in Notes, an ownership of Company common stock representing at least 30% of the principal of the Notes acquired, the interest rate on the Notes is 7% per annum. For investments of $3,000,000 or greater in Notes and ownership of the Company’s common stock representing at least 30% of the principal of the Notes acquired, the interest rate on the Notes is 7.5% per annum. For investments of $10,000,000 or greater, the interest rate on the Notes is 7% per annum, regardless of whether the holder owns or acquires MVB common stock. The principal on the Notes shall be paid in full at the Maturity Date. On the fifth anniversary of the issuance of the Notes, a holder may elect to continue to receive the stated fixed rate on the Notes or a floating rate determined by LIBOR plus 5% up to a maximum rate of 9% , adjusted quarterly. The Notes are unsecured and subject to the terms and conditions of any senior debt and after consultation with the Board of Governors of the Federal Reserve System, the Company may, after the Notes have been outstanding for five years, and without premium or penalty, prepay all or a portion of the unpaid principal amount of any Note together with the unpaid interest accrued on such portion of the principal amount of such Note. All such prepayments shall be made pro rata among the holders of all outstanding Notes. At the election of a holder, any or all of the Notes may be converted into shares of common stock during the 30 -day period after the first, second, third, fourth, and fifth anniversaries of the issuance of the Notes or upon a notice to prepay by the Company. The Notes will convert into common stock based on $16 per share of the Company’s common stock. The conversion price will be subject to anti-dilution adjustments for certain events such as stock splits, reclassifications, non-cash distributions, extraordinary cash dividends, pro rata repurchases of common stock, and business combination transactions. The Company must give 20 days’ notice to the holders of the Company’s intent to prepay the Notes, so that holders may execute the conversion right set forth above if a holder so desires. Repayment of the Notes is subordinated to the Company’s outstanding senior debt including (if any) without limitation, senior secured loans. No payment will be made by the Company, directly or indirectly, on the Notes, unless and until all of the senior debt then due has been paid in full. Notwithstanding the foregoing, so long as there exists no event of default under any senior debt, the Company would make, and a holder would receive and retain for the holder’s account, regularly scheduled payments of accrued interest and principal pursuant to the terms of the Notes. The Company must obtain a consent of the holders of the Notes prior to issuing any new senior debt in excess of $15,000,000 after the date of issuance of the Notes and prior to the Maturity Date. An event of default will occur upon the Company’s bankruptcy or any failure to pay interest, principal, or other amounts owing on the Notes when due. Upon the occurrence and during the continuance of an event of default (but subject to the subordination provisions of the Notes) the holders of a majority of the outstanding principal amount of the Notes may declare all or any portion of the outstanding principal amount of the Notes due and payable and demand immediate payment of such amount. The Notes are redeemable, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed on any interest payment date after a date five years from the original issue date. The Company reflects subordinated debt in the amount of $33.5 million as of June 30, 2015 and December 31, 2014 and interest expense of $ 1,092 and $ 45 for the six months ended June 30, 2015 and 2014. A summary of maturities of borrowings and subordinated debt over the next five years is as follows: (dollars in thousands) Year Amount 2015 $ 2016 2017 2018 2019 Thereafter $

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
FAIR VALUE OF FINANCIAL INSTRUMENTS	Note 6 – Fair Value of Financial Instruments The following summarizes the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial instruments. Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company classified investments in government securities as Level 2 instruments and valued them using the market approach. The following measurements are made on a recurring basis. · Available-for-sale investment securities - Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities and private label entities, municipal bonds and corporate debt securities. There have been no changes in valuation techniques for the year ended December 31, 2014. Valuation techniques are consistent with techniques used in prior periods. · Loans held for sale — Loans held for sale are carried at fair value. These loans currently consist of one-to-four-family residential loans originated for sale in the secondary market. Fair value is based on the committed market rates or the price secondary markets are currently offering for similar loans using observable market data. · Interest rate lock commitment - For mortgage interest rate locks, the fair value is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis less (iii) expected costs to deliver the interest rate locks, any expected “pull through rate” is applied to this calculation to estimate the derivative value. · Interest rate cap - The fair value of the interest rate cap is determined at the end of each quarter by using Bloomberg Finance which values the interest rate cap using observable inputs from forward and futures yield curves as well as standard market volatility. · Forward sales commitments – Forward sales commitments are considered derivatives and are recorded at fair value, based on (i) committed sales prices from investors for commitments to sell mortgage loans or (ii) observable market data inputs for commitments to sell mortgage backed securities. A majority of the interest rate locks and loans held for sale are committed on a best efforts basis. The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2015 and December 31, 2014 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2015 (in thousands) Level I Level II Level III Total Assets: U.S. Government Agency Securities $ — $ $ — $ U.S. Sponsored Mortgage backed securities — — Equity and Other Securities — Loans held for sale — — Interest rate lock commitment — — Forward sales commitments Interest rate cap — — December 31, 2014 (in thousands) Level I Level II Level III Total Assets: U.S. Government Agency Securities $ — $ $ — $ U.S. Sponsored Mortgage backed securities — — Equity and Other Securities — Loans held for sale — — Interest rate lock commitment — — Interest rate cap — — Liability: Forward sales commitments — — The following table represents recurring level III assets: For the three months ended For the three months ended For the six months ended For the six months ended (in thousands) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Balance, beginning of period $ $ $ $ Realized and unrealized gains (loss) included in earnings Balance, end of period $ $ $ $ Assets Measured on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 2015 and 2014 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. · Impaired Loans - Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. For a majority of impaired real estate related loans, the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. · Other Real Estate owned — Other real estate owned, which is obtained through the Bank’s foreclosure process is valued utilizing the appraised collateral value. Collateral values are estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. At the time, the foreclosure is completed, the Company obtains a current external appraisal. · Mortgage Servicing Rights – Mortgage servicing rights (“MSRs”) do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 are included in the tables below: June 30, 2015 (in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ $ Other real estate owned — — Mortgage servicing rights — — December 31, 2014 (in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ $ Other real estate owned — — Mortgage servicing rights — — The following tables present quantitative information about the Level 3 significant unobservable inputs for assets measured at fair value on a nonrecurring basis at June 30, 2015 and December 31, 2014. Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable (Dollars in thousands) Fair Value Technique Input Range June 30, 2015: Impaired loans $ Appraisal of collateral (1) Appraisal adjustments(2) 20% - 30% Liquidation expense (2) 5% - 10% Other real estate owned $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Mortgage servicing rights $ Discounted cash flows Constant prepayment rate 12% Cost of service 0.25% Discount rate 12% Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable (Dollars in thousands) Fair Value Technique Input Range December 31, 2014: Impaired loans $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Other real estate owned $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Mortgage servicing rights $ Discounted cash flows Constant prepayment rate 12% Cost of service 0.25% Discount rate 12% (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not observable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The following summarizes the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial instruments. Cash and cash equivalents: The carrying amounts for cash and cash equivalents approximate fair value because they have original maturities of 90 days or less and do not present unanticipated credit concerns. Certificates of deposits: The fair values for certificates of deposits are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for certificates of deposits with similar terms of investors. No prepayments of principal are assumed. Securities: Fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities. Loans held for sale: Loans held for sale are reported at fair value. These loans currently consist of one-to-four-family residential loans originated for sale in the secondary market. Fair value is based on committed market rates or the price secondary markets are currently offering for similar loans using observable market data. (Level II) Loans: The fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed. Mortgage servicing rights: The carrying value of mortgage servicing rights approximates their fair value. Interest rate lock commitment: For mortgage interest rate locks, the fair value is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis less (iii) expected costs to deliver the interest rate locks, any expected “pull through rate” is applied to this calculation to estimate the derivative value. The “pull through rate” range from 78% – 80% and 77% - 81% as of June 30, 2015 and December 31, 2014. Interest rate cap: The fair value of the interest rate cap is determined at the end of each quarter by using Bloomberg Finance which values the interest rate cap using observable inputs from forward and futures yield curves as well as standard market volatility. Accrued interest receivable and payable and repurchase agreements: The carrying values of accrued interest receivable and payable approximate their fair values. Deposits: The fair values of demand deposits (i.e., non-interest bearing checking, NOW and money market), savings accounts and other variable rate deposits approximate their carrying values. Fair values of fixed maturity deposits are estimated using a discounted cash flow methodology at rates currently offered for deposits with similar remaining maturities. Any intangible value of long-term relationships with depositors is not considered in estimating the fair values disclosed. Forward Sales Commitments: Forward sales commitments are used to mitigate interest rate risk for residential mortgage loans held for sale and interest rate locks and manage expected funding percentages. These instruments are considered derivatives and are recorded at fair value, based on (i) committed sales prices from investors for commitments to sell mortgage loans or (ii) observable market data inputs for commitments to sell mortgage backed securities. FHLB and other borrowings: The fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed. Subordinated debt: The fair values for debt are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for debt with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed. Off-balance sheet instruments: The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of agreements and the present credit standing of the counterparties. The amounts of fees currently charged on commitments and standby letters of credit are deemed insignificant, and therefore, the estimated fair values and carrying values are not shown. The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows (in thousands): Fair Value Measurements at: Quoted Prices in Significant Significant Active Markets For Other Unobservable Carrying Estimated Identical Assets Observable Inputs Value Fair Value (Level 1) Inputs (Level 2) (Level 3) June 30, 2015: Financial assets: Cash and cash equivalents $ $ $ $ — $ — Certificates of deposits with other banks — — Securities available-for-sale — Securities held-to-maturity — — Loans held for sale — — Loans, net — — Mortgage servicing rights — — Interest rate lock commitment — — Forward sales commitments — — Interest rate cap — — Accrued interest receivable — Financial liabilities: Deposits $ $ $ — $ $ — Repurchase agreements — — FHLB and other borrowings — — Accrued interest payable — — Subordinated debt — — December 31, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Certificates of deposits with other banks — — Securities available-for-sale — Securities held-to-maturity — — Loans held for sale — — Loans, net — — Mortgage servicing rights — — Interest rate lock commitment — — Interest rate cap — — Accrued interest receivable — Financial liabilities: Deposits $ $ $ — $ $ — Repurchase agreements — — FHLB and other borrowings — — Forward sales commitments — — Accrued interest payable — — Subordinated debt — — Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments .

Stock Offerings

Stock Offerings	6 Months Ended
	Jun. 30, 2015
STOCK OFFERINGS
STOCK OFFERING	Note 7 – Stock Offerings On June 30, 2014, the Company filed Certificates of Designations for its Convertible Noncumulative Perpetual Preferred Stock, Series B (“Class B Preferred”) and its Convertible Noncumulative Perpetual Preferred Stock, Series C (“Class C Preferred”). The Class B Preferred Certificate designated 400 shares of preferred stock as Class B Preferred shares. The Class B Preferred shares carry an annual dividend rate of 6% and are convertible into shares of Company common stock within thirty days after the first, second, third, fourth and fifth anniversaries of the original issue date, based on a common stock price of $16 per share, as adjusted for future corporate activities. The Class B Preferred shares are redeemable by the Company on or after the fifth anniversary of the original issue date for Liquidation Amount, as defined therein, plus declared and unpaid dividends. Redemption is subject to any necessary regulatory approvals. In the event of liquidation of the Company, shares of Class B Preferred stock shall be junior to creditors of the Company and to the shares of Senior Noncumulative Perpetual Preferred Stock, Series A. Holders of Class B Preferred shares shall have no voting rights, except for authorization of senior shares of stock, amendment to the Class B Preferred shares, share exchanges, reclassifications or changes of control, or as required by law. The Class C Preferred Certificate designated 383.4 shares of preferred stock as Class C Preferred shares. The Class C Preferred shares carry an annual dividend rate of 6.5% and are convertible into shares of Company common stock within thirty days after the first, second, third, fourth and fifth anniversaries of the original issue date, based on a common stock price of $16 per share, as adjusted for future corporate activities. The Class C Preferred shares are redeemable by the Company on or after the fifth anniversary of the original issue date for Liquidation Amount, as defined therein, plus declared and unpaid dividends. Redemption is subject to any necessary regulatory approvals. In the event of liquidation of the Company, shares of Class C Preferred stock shall be junior to creditors of the Company and to the shares of Senior Noncumulative Perpetual Preferred Stock, Series A and the Class B Preferred shares. Holders of Class C Preferred shares shall have no voting rights, except for authorization of senior shares of stock, amendment to the Class C Preferred shares, share exchanges, reclassifications or changes of control, or as required by law. The proceeds of these preferred stock offerings will be used to support continued growth of the Company and its Subsidiaries. On September 8, 2011 MVB received $8.5 million in Small Business Lending Fund (SBLF) capital. MVB issued 8,500 shares of $1,000 per share preferred stock with dividends payable in arrears on January 1, April 1, July 1 and October 1 each year. At December 31, 2014 and 2013, MVB's loan production qualified for the lowest dividend rate possible of 1% . MVB may continue to utilize the SBLF capital through March 8, 2016 at the 1% dividend rate. After that time, if the SBLF is not retired, the dividend rate increases to 9% .

Net Income Per Common Share

Net Income Per Common Share	6 Months Ended
	Jun. 30, 2015
Net Income Per Common Share
Net Income Per Common Share	Note 8 – Net Income Per Common Share The Company determines basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income plus interest on convertible preferred stock by the weighted average number of shares outstanding increased by both the number of shares that would be issued assuming the exercise of stock options and convertible preferred stock . At June 30, 2015 and 2014, stock options to purchase 678,159 and 494,470 shares at an average price of $10.53 and $9.09 , respectively, were outstanding. For the six and months ended June 30, 2015 and 2014, the dilutive effect of stock options was 197,283 and 213,549 shares, respectively. For the six and months ended June 30, 2015 and 2014, the dilutive effect of convertible preferred stock was 489,625 and 0 shares, respectively.

Segement Reporting

Segement Reporting	6 Months Ended
	Jun. 30, 2015
SEGMENT REPORTING
SEGMENT REPORTING	Note 9 – Segment Reporting During 2013, the Company identified three reportable segments: commercial and retail banking; mortgage banking; and insurance services. Revenue from commercial and retail banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. In addition, the commercial and retail banking segment activity includes holding company revenue and expense items. Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The mortgage banking services are conducted by MVB Mortgage. Revenue from insurance services is comprised mainly of commissions on the sale of insurance products. Information about the reportable segments and reconciliation to the consolidated financial statements for the three and six month periods ended June 30, 2015 and 2014 are as follows: r Commercial & Three months ended June 30, 2015 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the three-month period ended June 30, 2015 $ $ $ $ - $ Total assets as of June 30, 2015 Total assets as of December 31, 2014 Goodwill as of June 30, 2015 - - Goodwill as of December 31, 2014 $ $ $ - $ - $ Commercial & Three months ended June 30, 2014 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income — Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the three-month period ended June 30, 2014 $ $ $ - $ Total assets as of June 30, 2014 Total assets as of December 31, 2013 Goodwill as of June 30, 2014 - - Goodwill as of December 31, 2013 $ $ $ - $ - $ Commercial & Six months ended June 30, 2015 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income before income taxes — Income tax expense — Net income — Preferred stock dividends — — — Net income available to common shareholders $ $ $ $ — $ Capital expenditures for the six-month period ended June 30, 2015 $ $ $ $ - $ Total assets as of June 30, 2015 Total assets as of December 31, 2014 Goodwill as of June 30, 2015 - - Goodwill as of December 31, 2014 $ $ $ - $ - $ Commercial & Six months ended June 30, 2014 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income — Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the six-month period ended June 30, 2014 $ $ $ $ - $ Total assets as of June 30, 2014 Total assets as of December 31, 2013 Goodwill as of June 30, 2014 - - Goodwill as of December 31, 2013 $ $ $ - $ - $ Commercial & Retail Banking For the three months ended June 30 , 2015, the Commercial & Retail Banking segment earned $911 compared to $823 during the three months ended June 30 , 2014. Net interest income increased by $1.1 million , mainly the result of average loan balances increasing by $173.0 million. In addition, average subordinated debt increased $29.1 million which led to a $262 increase in interest expense. Noninterest income decreased by $528 , largely the result of decreased gains on sales of portfolio loans of $204 and decreased gains on security sales of $121 . The decreased gain on sales of portfolio loans was the result of an $8.1 million decrease in volume of portfolio loans sold. Noninterest expense increased by $747 , ma inly the result of the following: $387 increase in salaries expense and $300 increase in data processing and communications expense . Preferred stock dividends also increased by $121 as a result of new preferred stock issued by the Company on June 30, 2014. For the six months ended June 30 , 2015, the Commercial & Retail Banking segment earned $ 874 compared to $ 2.0 million during the six months ended June 30 , 2014. Net interest income increased by $1.5 million , mainly the result of average loan balances increasing by $171.8 million. In addition, average subordinated debt increased $29.2 million which led to a $956 increase in interest expense. Noninterest income decreased by $1.0 million , largely the result of decreased gains on sales of portfolio loans of $533 and decrease of $494 in gain on derivative. The decreased gain on sales of portfolio loans was the result of an $8.1 million decrease in volume of portfolio loans sold. Noninterest expense increased by $2.2 million, mainly the result of the following: $1.1 million in salaries expense, $521 in occupancy and equipment expense, $599 in data processing and communications expense and $446 in professional fees. Preferred stock dividends also increased by $121 as a result of new preferred stock issued by the Company on June 30, 2014. Mortgage Banking For the three months ended June 30 , 2015, the Mortgage Banking segment earned $1. 2 million compared to $400 during the three months ended June 30 , 2014. Net interest income increased $198 , noninterest income increased by $3.5 million and noninterest expense increased by $2.5 million. The $769 earnings increase is mainly due to a 69% increase in origination volume, which helped drive a $4.2 million increase in mortgage fee income . A $9.5 million decrease in loans held for sale caused a $691 decrease in gain on derivative. Personnel expense also increased by $1.9 million . F or the six months ended June 30 , 2015, the Mo rtgage Banking segment earned $3 . 0 million compared to $ 359 during the six months ended June 30 , 2014. Net interest income increased $317 , noninterest income increased by $8.9 million and noninterest expense increased by $5.0 million. The $2.6 million earnings increase is mainly due to a 94% increase in origination volume, which helped drive a $7.2 million increase in mortgage fee income as well as a $1.7 million increase in gain on derivative. Personnel expense also increased by $4.0 million . Insurance For the three months ended June 30 , 2015 , the Insurance segment lost $174 compared to a $253 loss during the three months ended June 30 , 2014. Noninterest income increased by $114 and noninterest expense decreased by $15 . Income tax benefit for the second quarter 2015 de creased by $50 . For the six months ended June 30 , 2015 , the Insurance segment earned $169 compared to a $ 261 loss during the six months ended June 30 , 2014. Noninterest income increased by $782 and noninterest expense in creased by $86 . Income tax expense for the six months ended June 30, 2015 in creased by $266 .

Pension Plan

Pension Plan	6 Months Ended
	Jun. 30, 2015
PENSION PLAN
PENSION PLAN	Note 10 – Pension Plan The Company participates in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee's compensation. Accruals under the Plan were frozen as of May 31, 2014. Freezing the plan resulted in a re-measurement of the pension obligations and plan assets as of the freeze date. The pension obligation was re-measured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.46% . Information pertaining to the activity in the Company's defined benefit plan, using the latest available actuarial valuations for the three and six months ended June 30, 2015 and 2014 is as follows: For the three months ended For the three months ended (in thousands) June 30, 2015 June 30, 2014 Service cost $ - $ Interest cost Expected Return on Plan Assets Amortization of Net Actuarial Loss Amortization of Prior Service Cost — — Net Periodic Benefit Cost $ $ Contributions Paid $ $ For the six months ended For the six months ended (in thousands) June 30, 2015 June 30, 2014 Service cost $ — $ Interest cost Expected Return on Plan Assets Amortization of Net Actuarial Loss Amortization of Prior Service Cost — — Net Periodic Benefit Cost $ $ Contributions Paid $ $

Comprehensive Income

Comprehensive Income	6 Months Ended
	Jun. 30, 2015
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME	Note 11 – Comprehensive Income The following tables present the components of accumulated other comprehensive income (“AOCI”) for the three and six months ended June 30, 2015 and 2014: For the three months ended For the three months ended For the six months ended For the six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Amount Amount Amount Amount (in thousands) Reclassified Reclassified Reclassified Reclassified Affected line item in the Statement where net Details about AOCI Components from AOCI from AOCI from AOCI from AOCI income is presented Available-for-sale securities Unrealized holding gains $ $ $ $ Gain on sale of securities Total before tax Income tax expense Net of tax Defined benefit pension plan items Amortization of net actuarial loss Salaries and benefits Total before tax Income tax expense Net of tax Total reclassifications $ $ $ $ Unrealized gains (losses) on available- Defined benefit for-sale pension plan (in thousands) securities items Total Balance at March 31, 2015 $ $ $ Other comprehensive income (loss) before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2015 $ $ $ Balance at March 31, 2014 $ $ $ Other comprehensive income loss before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2014 $ $ $ Balance at January 1, 2015 $ $ $ Other comprehensive income (loss) before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2015 $ $ $ Balance at January 1, 2014 $ $ $ Other comprehensive income loss before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2014 $ $ $

Mergers and Acquisitions

Mergers and Acquisitions	6 Months Ended
	Jun. 30, 2015
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS	Note 12 – Mergers and Acquisitions On July 29, 2014 the Company and its subsidiary, the Bank, had entered into an amended Purchase and Assumption Agreement (“Agreement”) with CFG Community Bank (“CFG Bank”) and its parent, Capital Funding Bancorp, Inc., and affiliates, Capital Finance, LLC and Capital Funding, LLC. The Agreement was subsequently terminated on October 31, 2014 by a Mutual Termination Agreement (“Mutual Termination Agreement”) among the parties. The Agreement and Agreement Amendment provided that the Bank, subject to regulatory approvals, would purchase certain assets and assume certain liabilities of CFG Bank and its subsidiaries for $30 million in consideration, consisting of $26 million in cash and $4 million in shares of Company common stock, subject to certain adjustments; however, under the Mutual Termination Agreement, the Company, CFG Bank, Capital Funding Bancorp, Inc. and the other affiliates of CFG Bank have mutually agreed to terminate the Agreement and Agreement Amendment without any future obligation or liability between or among the parties under the Agreement or Agreement Amendment. The Bank and CFG Bank, as well as other CFG Bank affiliates, intend to continue a working relationship and may, from time to time, engage in loan transactions and, if applicable, servicing arrangements. On May 1, 2015, MVB Bank, Inc. (MVB Bank), a wholly-owned subsidiary of MVB Financial Corp. (MVB Financial or the Company), issued a joint news release with BB&T Corporation (BB&T) and Susquehanna Bancshares, Inc. (Susquehanna) announcing the signing of a definitive agreement, subject to customary closing conditions including regulatory approvals, through which MVB Bank will acquire two branch locations of Susquehanna Bank in Berkeley County, West Virginia and will assume approximately $69 million of deposits and $17 million of loans. The two Susquehanna Bank branch locations are slated for divestiture under BB&T’s agreement with the United States Department of Justice and commitments to the Board of Governors of the Federal Reserve System in connection with BB&T’s pending acquisition of Susquehanna. On July 22, 2015, regulatory approvals for the acquisition of the two Susquehanna Bank branch locations were received. The acquisition is expected to close August 28, 2015. The following acquisition related costs are included in the consolidated statements of income for the three and six months ended June 30, 2015 and 2014: Three Months Ended Three Months Ended (in thousands) June 30, 2015 June 30, 2014 Professional fees $ $ Marketing — Printing, postage and supplies Equipment depreciation and maintenance — Travel and entertainment Total $ $ Six months ended Six months ended (in thousands) June 30, 2015 June 30, 2014 Professional fees $ $ Marketing — Printing, postage and supplies Equipment depreciation and maintenance — Travel and entertainment Total $ $

Investment (Tables)

Investment (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENTS
Schedule of amortized cost and fair values of investment securities held-to-maturity	Amortized cost and fair values of investment securities held-to-maturity at June 30, 2015, including gross unrealized gains and losses, are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value Municipal securities $ $ $ $ Total investment securities held-to-maturity $ $ $ $ Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value Municipal securities $ $ $ $ Total investment securities held–to-maturity $ $ $ $
Schedule of amortized cost and fair values of investment securities available-for-sale	Amortized cost and fair values of investment securities available-for-sale at June 30, 2015 are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value U.S. Agency securities $ $ $ $ U.S. Sponsored Mortgage-backed securities Total debt securities Equity and other securities — Total investment securities available-for-sale $ $ $ $ Amortized cost and fair values of investment securities available-for-sale at December 31, 2014 are summarized as follows: Amortized Unrealized Unrealized Fair (in thousands) Cost Gain Loss Value U.S. Agency securities $ $ $ $ U.S. Sponsored Mortgage-backed securities Total debt securities Equity and other securities — Total investment securities available-for-sale $ $ $ $
Schedule of amortized cost and fair values of debt securities by maturity	The following tables summarize amortized cost and fair values of debt securities by maturity at June 30, 2015: Held to Maturity Available for sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ — $ — $ — $ — After one year, but within five After five years, but within ten After ten years Total $ $ $ $
Schedule of investments in an unrealized loss position	The following table discloses investments in an unrealized loss position at June 30, 2015: Description and number of positions Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (9) $ $ $ $ U.S. Sponsored Mortgage-backed securities (15) Municipal securities (60) $ $ $ $ The following table discloses investments in an unrealized loss position at December 31, 2014: Description and number of positions Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (9) $ $ $ $ U.S. Sponsored Mortgage-backed securities (8) Municipal securities (42) $ $ $ $

Loans and Allowance for Loan 20

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2015
LOANS AND ALLOWANCE FOR LOAN LOSSES
Schedule of activity in the allowance	Home (in thousands) Commercial Residential Equity Consumer Total ALL balance March 31, 2015 $ $ $ $ $ Charge-offs — — — — — Recoveries — — — Provision ALL balance June 30, 2015 $ $ $ $ $ Home Commercial Residential Equity Consumer Total ALL balance December 31, 2014 $ $ $ $ $ Charge-offs — — Recoveries Provision ALL balance June 30, 2015 $ $ $ $ $ Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment $ $ $ $ $ Home (in thousands) Commercial Residential Equity Consumer Total ALL balance March 31, 2014 $ $ $ $ $ Charge-offs — — Recoveries — — Provision ALL balance June 30, 2014 $ $ $ $ $ Home Commercial Residential Equity Consumer Total ALL balance December 31, 2013 $ $ $ $ $ Charge-offs — — Recoveries — Provision ALL balance June 30, 2014 $ $ $ $ $ Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment $ $ $ $ $
Summary of the primary segments of the loan portfolio	(in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment Total Loans $ $ $ $ $ (in thousands) Commercial Residential Equity Consumer Total Individually evaluated for impairment $ $ $ $ $ Collectively evaluated for impairment Total Loans $ $ $ $ $
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary	Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal June 30, 2015 Investment Allowance Investment Investment Balance Commercial Commercial Business $ — $ — $ $ $ Commercial Real Estate — Acquisition & Development Total Commercial Residential Home Equity — Consumer Total impaired loans $ $ $ $ $ December 31, 2014 Commercial Commercial Business $ — $ — $ $ $ Commercial Real Estate Acquisition & Development Total Commercial Residential — Home Equity — Consumer — Total impaired loans $ $ $ $ $
Schedule of the average recorded investment in impaired loans and related interest income recognized	The following tables present the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands): Six months ended Three months ended June 30, 2015 June 30, 2015 Interest Interest Interest Interest Average Income Income Average Income Income Investment Recognized Recognized on Investment Recognized Recognized in Impaired on Accrual Cash in Impaired on Accrual on Cash Loans Basis Basis Loans Basis Basis Commercial Commercial Business $ $ $ Commercial Real Estate Acquisition & Development Total Commercial Residential — Home Equity — — Consumer — — — — Total $ $ $ $ $ $ Six months ended Three months ended June 30, 2014 June 30, 2014 Average Interest Interest Average Interest Interest Investment Income Income Investment Income Income in Impaired Recognized on Recognized on in Impaired Recognized on Recognized on Loans Accrual Basis Cash Basis Loans Accrual Basis Cash Basis Commercial Commercial Business $ — $ — $ — $ — $ — $ — Commercial Real Estate Acquisition & Development Total Commercial Residential Home Equity — — — Consumer — — Total $ $ $ $ $ $
Schedule of loans, internal risk rating	The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2015 and December 31, 2014 (in thousands): Special June 30, 2015 Pass Mention Substandard Doubtful Total Commercial Commercial Business $ $ $ $ — $ Commercial Real Estate — Acquisition & Development Total Commercial Residential Home Equity — Consumer — Total Loans $ $ $ $ $ Special December 31, 2014 Pass Mention Substandard Doubtful Total Commercial Commercial Business $ $ $ $ — $ Commercial Real Estate — Acquisition & Development Total Commercial Residential — Home Equity — Consumer — Total Loans $ $ $ $ $
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans	30-59 Days 60-89 Days 90 Days + Total Non- 90+ Days June 30, 2015 Current Past Due Past Due Past Due Past Due Total Loans Accrual Still Accruing Commercial Commercial Business $ $ $ — $ $ $ $ $ Commercial Real Estate Acquisition & Development — — Total Commercial Residential — Home Equity — — Consumer Total $ $ $ $ $ $ $ $ 30-59 Days 60-89 Days 90 Days + Total Non- 90+ Days December 31, 2014 Current Past Due Past Due Past Due Past Due Total Loans Accrual Still Accruing Commercial Commercial Business $ $ $ $ $ $ $ $ Commercial Real Estate — Acquisition & Development — — — Total Commercial Residential Home Equity — — — — Consumer — — — — Total $ $ $ $ $ $ $ $
Schedule of loans identified as Troubled Debt Restructurings	New TDRs (1) For the Six months ended For the Three months ended June 30, 2014 June 30, 2014 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Commercial Acquisition and development $ $ — $ — $ — Total Commercial — — — Residential Real Estate — — — Total $ $ — $ — $ — (1) The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.

Borrowed Funds (Tables)

Borrowed Funds (Tables)	6 Months Ended
	Jun. 30, 2015
BORROWED FUNDS
Schedule of information related to short-term borrowings and repurchase agreements	Short-term Borrowings June 30, December 31, (Dollars in thousands) 2015 2014 Balance at end of period $ $ Average balance during the three and twelve months ended Maximum month-end balance during the three and twelve months ended Weighted-average rate during the three and twelve months ended % % Rate at end of period % % Repurchase agreements: June 30, December 31, (Dollars in thousands) 2015 2014 Balance at end of period $ $ Average balance during the three and twelve months ended Maximum month-end balance during the three and twelve months ended Weighted-average rate during the three and twelve months ended % % Rate at end of period % %
Schedule of borrowings from the FHLB	Term notes from the FHLB were as follows: June 30, December 31, (Dollars in thousands) 2015 2014 Fixed interest rate notes, originating between April 2002 and December 2007, due between July 2016 and April 2022, interest of between 4.50% and 5.90% payable monthly $ $ Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 , including interest of 5.22% $ $
Schedule of maturities of borrowings over the next five years	Year Amount 2015 $ 2016 2017 2018 2019 Thereafter $

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Fair value of assets and liabilities
Schedule Of Recurring Level III Assets	For the three months ended For the three months ended For the six months ended For the six months ended (in thousands) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Balance, beginning of period $ $ $ $ Realized and unrealized gains (loss) included in earnings Balance, end of period $ $ $ $
Schedule of quantitative information about assets measured at fair value on a non-recurring basis	Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable (Dollars in thousands) Fair Value Technique Input Range June 30, 2015: Impaired loans $ Appraisal of collateral (1) Appraisal adjustments(2) 20% - 30% Liquidation expense (2) 5% - 10% Other real estate owned $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Mortgage servicing rights $ Discounted cash flows Constant prepayment rate 12% Cost of service 0.25% Discount rate 12% Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable (Dollars in thousands) Fair Value Technique Input Range December 31, 2014: Impaired loans $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Other real estate owned $ Appraisal of collateral (1) Appraisal adjustments (2) 20% - 30% Liquidation expense (2) 5% - 10% Mortgage servicing rights $ Discounted cash flows Constant prepayment rate 12% Cost of service 0.25% Discount rate 12% (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not observable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Recurring
Fair value of assets and liabilities
Schedule of assets measured at fair value	June 30, 2015 (in thousands) Level I Level II Level III Total Assets: U.S. Government Agency Securities $ — $ $ — $ U.S. Sponsored Mortgage backed securities — — Equity and Other Securities — Loans held for sale — — Interest rate lock commitment — — Forward sales commitments Interest rate cap — — December 31, 2014 (in thousands) Level I Level II Level III Total Assets: U.S. Government Agency Securities $ — $ $ — $ U.S. Sponsored Mortgage backed securities — — Equity and Other Securities — Loans held for sale — — Interest rate lock commitment — — Interest rate cap — — Liability: Forward sales commitments — —
Non-recurring
Fair value of assets and liabilities
Schedule of assets measured at fair value	June 30, 2015 (in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ $ Other real estate owned — — Mortgage servicing rights — — December 31, 2014 (in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ $ Other real estate owned — — Mortgage servicing rights — —
Schedule of carrying values and estimated fair values of the Company's financial instruments	The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows (in thousands): Fair Value Measurements at: Quoted Prices in Significant Significant Active Markets For Other Unobservable Carrying Estimated Identical Assets Observable Inputs Value Fair Value (Level 1) Inputs (Level 2) (Level 3) June 30, 2015: Financial assets: Cash and cash equivalents $ $ $ $ — $ — Certificates of deposits with other banks — — Securities available-for-sale — Securities held-to-maturity — — Loans held for sale — — Loans, net — — Mortgage servicing rights — — Interest rate lock commitment — — Forward sales commitments — — Interest rate cap — — Accrued interest receivable — Financial liabilities: Deposits $ $ $ — $ $ — Repurchase agreements — — FHLB and other borrowings — — Accrued interest payable — — Subordinated debt — — December 31, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Certificates of deposits with other banks — — Securities available-for-sale — Securities held-to-maturity — — Loans held for sale — — Loans, net — — Mortgage servicing rights — — Interest rate lock commitment — — Interest rate cap — — Accrued interest receivable — Financial liabilities: Deposits $ $ $ — $ $ — Repurchase agreements — — FHLB and other borrowings — — Forward sales commitments — — Accrued interest payable — — Subordinated debt — —

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2015
SEGMENT REPORTING
Schedule of information about the reportable segments and reconciliation to the consolidated financial statements	r Commercial & Three months ended June 30, 2015 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the three-month period ended June 30, 2015 $ $ $ $ - $ Total assets as of June 30, 2015 Total assets as of December 31, 2014 Goodwill as of June 30, 2015 - - Goodwill as of December 31, 2014 $ $ $ - $ - $ Commercial & Three months ended June 30, 2014 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income — Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the three-month period ended June 30, 2014 $ $ $ - $ Total assets as of June 30, 2014 Total assets as of December 31, 2013 Goodwill as of June 30, 2014 - - Goodwill as of December 31, 2013 $ $ $ - $ - $ Commercial & Six months ended June 30, 2015 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income before income taxes — Income tax expense — Net income — Preferred stock dividends — — — Net income available to common shareholders $ $ $ $ — $ Capital expenditures for the six-month period ended June 30, 2015 $ $ $ $ - $ Total assets as of June 30, 2015 Total assets as of December 31, 2014 Goodwill as of June 30, 2015 - - Goodwill as of December 31, 2014 $ $ $ - $ - $ Commercial & Six months ended June 30, 2014 Retail Mortgage Intercompany (in thousands) Banking Banking Insurance Eliminations Consolidated Revenues: Interest income $ $ $ — $ $ Mortgage fee income — Insurance and investment services income — — Other income — Total operating income Expenses: Interest expense — Provision for loan losses — — — Salaries and employee benefits — Other expense Total operating expenses Income (loss) before income taxes — Income tax expense (benefit) — Net income (loss) — Preferred stock dividends — — — Net income (loss) available to common shareholders $ $ $ $ — $ Capital expenditures for the six-month period ended June 30, 2014 $ $ $ $ - $ Total assets as of June 30, 2014 Total assets as of December 31, 2013 Goodwill as of June 30, 2014 - - Goodwill as of December 31, 2013 $ $ $ - $ - $

Pension Plan (Tables)

Pension Plan (Tables)	6 Months Ended
	Jun. 30, 2015
PENSION PLAN
Schedule of information pertaining to the activity in the Company's defined benefit plan	For the three months ended For the three months ended (in thousands) June 30, 2015 June 30, 2014 Service cost $ - $ Interest cost Expected Return on Plan Assets Amortization of Net Actuarial Loss Amortization of Prior Service Cost — — Net Periodic Benefit Cost $ $ Contributions Paid $ $ For the six months ended For the six months ended (in thousands) June 30, 2015 June 30, 2014 Service cost $ — $ Interest cost Expected Return on Plan Assets Amortization of Net Actuarial Loss Amortization of Prior Service Cost — — Net Periodic Benefit Cost $ $ Contributions Paid $ $

Comprehensive Income (Tables)

Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
COMPREHENSIVE INCOME
Schedule of reclassifications from other comprehensive income (AOCI) components	For the three months ended For the three months ended For the six months ended For the six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Amount Amount Amount Amount (in thousands) Reclassified Reclassified Reclassified Reclassified Affected line item in the Statement where net Details about AOCI Components from AOCI from AOCI from AOCI from AOCI income is presented Available-for-sale securities Unrealized holding gains $ $ $ $ Gain on sale of securities Total before tax Income tax expense Net of tax Defined benefit pension plan items Amortization of net actuarial loss Salaries and benefits Total before tax Income tax expense Net of tax Total reclassifications $ $ $ $
Schedule of the components of accumulated OCI	Unrealized gains (losses) on available- Defined benefit for-sale pension plan (in thousands) securities items Total Balance at March 31, 2015 $ $ $ Other comprehensive income (loss) before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2015 $ $ $ Balance at March 31, 2014 $ $ $ Other comprehensive income loss before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2014 $ $ $ Balance at January 1, 2015 $ $ $ Other comprehensive income (loss) before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2015 $ $ $ Balance at January 1, 2014 $ $ $ Other comprehensive income loss before reclassification Amounts reclassified from AOCI Net current period OCI Balance at June 30, 2014 $ $ $

Mergers and Acquisitions (Table

Mergers and Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2015
MERGERS AND ACQUISITIONS
Schedule of acquisition related costs included in consolidated statements of income	Three Months Ended Three Months Ended (in thousands) June 30, 2015 June 30, 2014 Professional fees $ $ Marketing — Printing, postage and supplies Equipment depreciation and maintenance — Travel and entertainment Total $ $ Six months ended Six months ended (in thousands) June 30, 2015 June 30, 2014 Professional fees $ $ Marketing — Printing, postage and supplies Equipment depreciation and maintenance — Travel and entertainment Total $ $

Investments - Held-to-maturity

Investments - Held-to-maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized cost and fair values of investment securities held-to-maturity
Amortized Cost	$ 53,141	$ 54,538
Unrealized Gain	1,048	1,600
Unrealized Loss	(748)	(267)
Securities held-to-maturity, fair value	53,441	55,871
Municipal securities
Amortized cost and fair values of investment securities held-to-maturity
Amortized Cost	53,141	54,538
Unrealized Gain	1,048	1,600
Unrealized Loss	(748)	(267)
Securities held-to-maturity, fair value	$ 53,441	$ 55,871

Investments - Available-for-sal

Investments - Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	$ 66,543	$ 68,889
Unrealized Gain	103	208
Unrealized Loss	(791)	(884)
Fair Value	65,855	68,213
Debt Securities [Member]
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	65,873	68,219
Unrealized Gain	30	131
Unrealized Loss	(791)	(884)
Fair Value	65,112	67,466
U.S. Agency securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	30,847	37,926
Unrealized Gain	13	73
Unrealized Loss	(278)	(465)
Fair Value	30,582	37,534
U.S. Sponsored Mortgage backed securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	35,026	30,293
Unrealized Gain	17	58
Unrealized Loss	(513)	(419)
Fair Value	34,530	29,932
Equity and other securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	670	670
Unrealized Gain	73	77
Fair Value	$ 743	$ 747

Investments - Summary of maturi

Investments - Summary of maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Held to Maturity, Amortized Cost
After one year, but within five	$ 4,758
After five years, but within ten	14,497
After ten Years	33,886
Total	53,141
Held to Maturity, Approximate Fair Value
After one year, but within five	4,870
After five years, but within ten	14,593
After ten Years	33,978
Total	53,441	$ 55,871
Available for sale, Amortized Cost
After one year, but within five	23,112
After five years, but within ten	9,845
After ten Years	32,916
Total	65,873
Available for sale, Fair Value
After one year, but within five	22,962
After five years, but within ten	9,702
After ten Years	32,448
Fair Value	65,112
Carrying value of investment securities pledged	$ 114,838

Investments - Summary of unreal

Investments - Summary of unrealized loss positions (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)position
Investments in an unrealized loss position
Total temporary impairment	$ 1,539,000		$ 1,539,000
Fair Value, AFS
12 months or more, Fair Value					$ 26,900,000
Unrealized Loss, AFS
12 months or more, Unrealized Loss					(462,000)
Fair Value, AFS and HTM
Less than 12 months, Fair Value	48,188,000		48,188,000		2,202,000
12 months or more, Fair Value	34,921,000		34,921,000		58,213,000
Unrealized Loss, AFS and HTM
Less than 12 months, Unrealized Loss	(652,000)		(652,000)		(9,000)
12 months or more, Unrealized Loss	(887,000)		(887,000)		(1,142,000)
Available-for-sale Securities
Sales of investment securities available-for-sale	0	$ 37,200,000	11,484,000	$ 37,177,000
Gains on the sale of investments available-for-sale	0	214,000	121,000	214,000
Losses on the sale of investments available-for-sale	0	89,000	0	89,000
Held-to-maturity Securities [Abstract]
Proceeds from sale of held to maturity securities	421,000		421,000		$ 0
Gain on sale of securities	$ 5,000	$ 125,000	$ 126,000	$ 125,000
U.S. Agency securities
Description and number of positions
Number of investments in an unrealized loss position, AFS	9		9		9
Fair Value, AFS
Less than 12 months, Fair Value	$ 13,102,000		$ 13,102,000		$ 996,000
12 months or more, Fair Value	13,964,000		13,964,000
Unrealized Loss, AFS
Less than 12 months, Unrealized Loss	(135,000)		(135,000)		$ (3,000)
12 months or more, Unrealized Loss	$ (143,000)		$ (143,000)
U.S. Sponsored Mortgage backed securities
Description and number of positions
Number of investments in an unrealized loss position, AFS	15		15		8
Fair Value, AFS
Less than 12 months, Fair Value	$ 18,826,000		$ 18,826,000		$ 678,000
12 months or more, Fair Value	12,836,000		12,836,000		14,824,000
Unrealized Loss, AFS
Less than 12 months, Unrealized Loss	(168,000)		(168,000)		(3,000)
12 months or more, Unrealized Loss	$ (345,000)		$ (345,000)		$ (416,000)
Municipal securities
Description and number of positions
Number of investments in an unrealized loss position, AFS | position					42
Number of investments in an unrealized loss position, HTM | item	60		60
Fair Value, HTM
Less than 12 months, Fair Value	$ 16,260,000		$ 16,260,000		$ 528,000
12 months or more, Fair Value	8,121,000		8,121,000		16,489,000
Unrealized Loss, HTM
Less than 12 months, Unrealized Loss	(349,000)		(349,000)		(3,000)
12 months or more, Unrealized Loss	$ (399,000)		$ (399,000)		$ (264,000)

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses - Allowance (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Activity in the allowance for loan losses:
Balance at beginning of period	$ 6,481	$ 5,451	$ 6,223	$ 4,935
Charge-offs		(104)	(423)	(111)
Recoveries	5	5	28	9
Provision	561	889	1,219	1,408
Balance at end of period	6,481	5,451	6,223	4,935	$ 4,935	$ 7,047	$ 6,241
Individually evaluated for impairment						943	1,865
Collectively evaluated for impairment						6,104	4,376
Net deferred fees and costs						1,186	1,596
Loans acquired, purchase price					74,300
Commercial
Activity in the allowance for loan losses:
Balance at beginning of period	4,647	3,902	4,363	3,609
Charge-offs			(409)
Recoveries		4	21	4
Provision	554	579	1,226	872
Balance at end of period	4,647	3,902	4,363	3,609	$ 3,609	5,201	4,485
Individually evaluated for impairment						605	1,507
Collectively evaluated for impairment						4,596	2,978
Premium on loans acquired, ratio					1.024
Premium on loans acquired, premium amount					$ 1,800
Residential
Activity in the allowance for loan losses:
Balance at beginning of period	957	746	962	519
Charge-offs		(103)	(14)	(103)
Recoveries			1
Provision	61	42	69	269
Balance at end of period	957	746	962	519	519	1,018	685
Individually evaluated for impairment						303	322
Collectively evaluated for impairment						715	363
Home Equity
Activity in the allowance for loan losses:
Balance at beginning of period	680	555	691	554
Recoveries		1	1	2
Provision	(48)	269	(60)	269
Balance at end of period	680	555	691	554	554	632	825
Individually evaluated for impairment						28	29
Collectively evaluated for impairment						604	796
Consumer
Activity in the allowance for loan losses:
Balance at beginning of period	197	248	207	253
Charge-offs		(1)		(8)
Recoveries	5		5	3
Provision	(6)	(1)	(16)	(2)
Balance at end of period	$ 197	$ 248	$ 207	$ 253	$ 253	196	246
Individually evaluated for impairment						7	7
Collectively evaluated for impairment						$ 189	$ 239

Loans and Allowance for Loan 32

Loans and Allowance for Loan Losses - Primary Segments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Primary segments of the loan portfolio:
Individually evaluated for impairment	$ 13,674		$ 7,642
Collectively evaluated for impairment	897,411		726,612
Total Loans	911,085	$ 798,297	734,254
Commercial
Primary segments of the loan portfolio:
Individually evaluated for impairment	12,627		6,726
Collectively evaluated for impairment	644,457		526,776
Total Loans	657,084	560,752	533,502
Residential
Primary segments of the loan portfolio:
Individually evaluated for impairment	1,008		873
Collectively evaluated for impairment	183,535		142,754
Total Loans	184,543	174,507	143,627
Home Equity
Primary segments of the loan portfolio:
Individually evaluated for impairment	28		29
Collectively evaluated for impairment	53,078		39,060
Total Loans	53,106	45,935	39,089
Consumer
Primary segments of the loan portfolio:
Individually evaluated for impairment	11		14
Collectively evaluated for impairment	16,341		18,022
Total Loans	$ 16,352	$ 17,103	$ 18,036

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses - Impaired Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	$ 7,736		$ 7,736		$ 2,799
Impaired Loans with Specific Allowance, Related Allowance	943		943		690
Impaired Loans with No Specific Allowance, Recorded Investment	5,938		5,938		11,982
Total Impaired Loans, Recorded Investment	13,674		13,674		14,781
Total Impaired Loans, Unpaid Principal Balance	15,039		$ 15,039		15,856
Impaired loans, additional information
Number of loans causing change in impaired loans | item			3
Financing Receivable, Allowance for Credit Losses, Write-downs		$ 104	$ 423	$ 111
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	13,883	7,660	14,222	7,364
Interest income recognized on an accrual basis on impaired loans	61	78	123	159
Interest income recognized on a cash basis on impaired loans	53	89	107	125
Total Recorded Investment in Impaired Financing Receivables [Member] | Credit Concentration Risk [Member]
Impaired loans by class
Total Impaired Loans, Recorded Investment	8,100		$ 8,100
Impaired loans, additional information
Number of loans causing change in impaired loans | item			2
Concentration Risk, Percentage			59.00%
Total Recorded Investment in Impaired Financing Receivables [Member] | Government Contracts Concentration Risk [Member]
Impaired loans by class
Total Impaired Loans, Recorded Investment	5,000		$ 5,000
Impaired loans, additional information
Number of loans causing change in impaired loans | item			1
Commercial
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	6,801		$ 6,801		1,800
Impaired Loans with Specific Allowance, Related Allowance	605		605		362
Impaired Loans with No Specific Allowance, Recorded Investment	5,826		5,826		11,982
Total Impaired Loans, Recorded Investment	12,627		12,627		13,782
Total Impaired Loans, Unpaid Principal Balance	14,002		14,002		14,857
Impaired loans, additional information
Financing Receivable, Allowance for Credit Losses, Write-downs			409
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	12,908	6,732	13,244	6,572
Interest income recognized on an accrual basis on impaired loans	56	73	112	147
Interest income recognized on a cash basis on impaired loans	$ 53	84	$ 104	116
Number of loans, in process of foreclosure | item	5		5
Impaired loans, recorded investment, in process of foreclosure	$ 420		$ 420
Commercial Business
Impaired loans by class
Impaired Loans with No Specific Allowance, Recorded Investment	3,039		3,039		3,606
Total Impaired Loans, Recorded Investment	3,039		3,039		3,606
Total Impaired Loans, Unpaid Principal Balance	3,039		3,039		3,606
Impaired loans, additional information
Proceeds from Collection of Loans Receivable			567
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	3,228		3,369
Interest income recognized on an accrual basis on impaired loans	39		78
Interest income recognized on a cash basis on impaired loans	39		75
Commercial Real Estate
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	6,530		6,530		1,527
Impaired Loans with Specific Allowance, Related Allowance	507		507		260
Impaired Loans with No Specific Allowance, Recorded Investment					5,021
Total Impaired Loans, Recorded Investment	6,530		6,530		6,548
Total Impaired Loans, Unpaid Principal Balance	6,530		6,530		6,548
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	6,533	1,907	6,538	1,911
Interest income recognized on an accrual basis on impaired loans	15	15	30	30
Interest income recognized on a cash basis on impaired loans	12	15	25	35
Acquisition & Development
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	271		271		273
Impaired Loans with Specific Allowance, Related Allowance	98		98		102
Impaired Loans with No Specific Allowance, Recorded Investment	2,787		2,787		3,355
Total Impaired Loans, Recorded Investment	3,058		3,058		3,628
Total Impaired Loans, Unpaid Principal Balance	4,433		4,433		4,703
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	3,147	4,825	3,337	4,661
Interest income recognized on an accrual basis on impaired loans	2	58	4	117
Interest income recognized on a cash basis on impaired loans	2	69	4	81
Two Unrelated Acquisition and Development Loans [Member]
Impaired loans by class
Total Impaired Loans, Recorded Investment	2,500		$ 2,500		3,100
Impaired loans, additional information
Number of loans causing change in impaired loans | item			2
Financing Receivable, Principal Curtailment			$ 268
Financing Receivable, Allowance for Credit Losses, Write-downs			300
Residential
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	900		900		969
Impaired Loans with Specific Allowance, Related Allowance	303		303		298
Impaired Loans with No Specific Allowance, Recorded Investment	108		108
Total Impaired Loans, Recorded Investment	1,008		1,008		969
Total Impaired Loans, Unpaid Principal Balance	1,008		1,008		969
Impaired loans, additional information
Financing Receivable, Allowance for Credit Losses, Write-downs		103	14	103
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	946	884	948	734
Interest income recognized on an accrual basis on impaired loans	5	5	10	10
Interest income recognized on a cash basis on impaired loans		5	2	8
Home Equity
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	28		28		28
Impaired Loans with Specific Allowance, Related Allowance	28		28		28
Total Impaired Loans, Recorded Investment	28		28		28
Total Impaired Loans, Unpaid Principal Balance	28		28		28
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	28	29	28	28
Interest income recognized on an accrual basis on impaired loans			1	1
Interest income recognized on a cash basis on impaired loans			1
Consumer
Impaired loans by class
Impaired Loans with Specific Allowance, Recorded Investment	7		7		2
Impaired Loans with Specific Allowance, Related Allowance	7		7		2
Impaired Loans with No Specific Allowance, Recorded Investment	4		4
Total Impaired Loans, Recorded Investment	11		11		2
Total Impaired Loans, Unpaid Principal Balance	1		1		$ 2
Impaired loans, additional information
Financing Receivable, Allowance for Credit Losses, Write-downs		1		8
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	$ 1	$ 15	$ 2	30
Interest income recognized on an accrual basis on impaired loans				1
Interest income recognized on a cash basis on impaired loans				$ 1

Loans and Allowance for Loan 34

Loans and Allowance for Loan Losses - Impaired Loans Additional Information (Details) - 3 months ended Jun. 30, 2015 - item	Total
LOANS AND ALLOWANCE FOR LOAN LOSSES
Number of points in internal risk rating system	9
Number of categories in internal risk rating system considered as not criticized	6
Maximum period above which loans past due are considered Substandard	90 days

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses - Internal Risk Rating (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Classes of the loan portfolio summarized by credit quality indicators:
Minimum threshold for performing annual review of commercial relationship	$ 1,000
Total Loans	911,085	$ 798,297	$ 734,254
Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	876,212	764,709
Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	20,240	17,929
Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	12,717	13,527
Doubtful
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,916	2,132
Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	657,084	560,752	533,502
Commercial | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	626,171	531,153
Commercial | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	17,399	14,935
Commercial | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	11,682	12,532
Commercial | Doubtful
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,832	2,132
Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	313,726	238,878
Commercial Business | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	307,156	234,547
Commercial Business | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	3,385	618
Commercial Business | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	3,185	3,713
Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	267,832	280,780
Commercial Real Estate | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	249,488	262,215
Commercial Real Estate | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	11,072	11,242
Commercial Real Estate | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	7,272	7,323
Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	75,526	41,094
Acquisition & Development | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	69,527	34,391
Acquisition & Development | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	2,942	3,075
Acquisition & Development | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,225	1,496
Acquisition & Development | Doubtful
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,832	2,132
Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	184,543	174,507	143,627
Residential | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	181,412	171,395
Residential | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	2,051	2,147
Residential | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	996	965
Residential | Doubtful
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	84
Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	53,106	45,935	39,089
Home Equity | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	52,724	45,684
Home Equity | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	354	223
Home Equity | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	28	28
Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	16,352	17,103	$ 18,036
Consumer | Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	15,905	16,477
Consumer | Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	436	624
Consumer | Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	$ 11	$ 2

Loans and Allowance for Loan 36

Loans and Allowance for Loan Losses - Aging (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Aging categories of performing loans and nonaccrual loans
Current	$ 893,118	$ 771,702
30-59 Days Past Due	3,288	8,981
60-89 Days Past Due	4,957	8,551
90 Days + Past Due	9,722	9,063
Total Past Due	17,967	26,595
Total Loans	911,085	798,297	$ 734,254
Non-Accrual	8,450	3,949
90 Days+ Still Accruing	$ 1,332	5,306
Period loan is past due when placed on non-accrual status	90 days
Commercial
Aging categories of performing loans and nonaccrual loans
Current	$ 640,206	541,803
30-59 Days Past Due	3,135	3,972
60-89 Days Past Due	4,837	6,425
90 Days + Past Due	8,906	8,552
Total Past Due	16,878	18,949
Total Loans	657,084	560,752	533,502
Non-Accrual	7,953	3,462
90 Days+ Still Accruing	1,013	5,090
Commercial Business
Aging categories of performing loans and nonaccrual loans
Current	310,523	233,464
30-59 Days Past Due	3,107	3,738
60-89 Days Past Due		1,500
90 Days + Past Due	96	176
Total Past Due	3,203	5,414
Total Loans	313,726	238,878
Non-Accrual	146	107
90 Days+ Still Accruing	10	69
Commercial Real Estate
Aging categories of performing loans and nonaccrual loans
Current	257,298	270,600
30-59 Days Past Due	28	234
60-89 Days Past Due	4,837	4,925
90 Days + Past Due	5,669	5,021
Total Past Due	10,534	10,180
Total Loans	267,832	280,780
Non-Accrual	5,020
90 Days+ Still Accruing	649	5,021
Acquisition & Development
Aging categories of performing loans and nonaccrual loans
Current	72,385	37,739
90 Days + Past Due	3,141	3,355
Total Past Due	3,141	3,355
Total Loans	75,526	41,094
Non-Accrual	2,787	3,355
90 Days+ Still Accruing	354
Residential
Aging categories of performing loans and nonaccrual loans
Current	183,834	167,392
30-59 Days Past Due		4,478
60-89 Days Past Due	119	2,126
90 Days + Past Due	590	511
Total Past Due	709	7,115
Total Loans	184,543	174,507	143,627
Non-Accrual	457	487
90 Days+ Still Accruing	133	216
Home Equity
Aging categories of performing loans and nonaccrual loans
Current	52,927	45,815
30-59 Days Past Due	143	120
90 Days + Past Due	36
Total Past Due	179	120
Total Loans	53,106	45,935	39,089
Non-Accrual	36
Consumer
Aging categories of performing loans and nonaccrual loans
Current	16,151	16,692
30-59 Days Past Due	10	411
60-89 Days Past Due	1
90 Days + Past Due	190
Total Past Due	201	411
Total Loans	16,352	$ 17,103	$ 18,036
Non-Accrual	4
90 Days+ Still Accruing	$ 186

Loans and Allowance for Loan 37

Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)contract	Jun. 30, 2015USD ($)contract	Jun. 30, 2014USD ($)contract	Dec. 31, 2014USD ($)
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Specific reserve allocations for TDR's	$ 619	$ 619		$ 582
Number of Contracts | contract	0	0	2
Pre-Modification Outstanding Recorded Investment			$ 885
Post-Modification Outstanding Recorded Investment			$ 880
Commercial
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts | contract			1
Pre-Modification Outstanding Recorded Investment			$ 496
Post-Modification Outstanding Recorded Investment			$ 492
Acquisition & Development
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts | contract			1
Pre-Modification Outstanding Recorded Investment			$ 496
Post-Modification Outstanding Recorded Investment			$ 492
Residential real estate
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts | contract			1
Pre-Modification Outstanding Recorded Investment			$ 389
Post-Modification Outstanding Recorded Investment			$ 388

Borrowed Funds - Short-term bor

Borrowed Funds - Short-term borrowings and Repurchase Agreements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Borrowed funds
Available Unpledged Securities	$ 3,900	$ 5,600
Federal Home Loan Bank and Other Borrowings	178,245	101,287
Short-term borrowings from FHLB
Short-term borrowings and Repurchase Agreements
Balance at end of year	172,871	95,829
Average balance during the year	130,956	76,185
Maximum month-end balance	$ 172,871	$ 120,229
Weighted-average rate during the year	0.32%	0.27%
Rate at the end of the period	0.34%	0.32%
Repurchase agreements
Short-term borrowings and Repurchase Agreements
Balance at end of year	$ 26,263	$ 32,673
Average balance during the year	26,140	55,731
Maximum month-end balance	$ 26,263	$ 83,781
Weighted-average rate during the year	0.29%	0.52%
Rate at the end of the period	0.30%	0.35%
Investment Securities And FHLB Letters Of Credit [Member]
Borrowed funds
Federal Home Loan Bank and Other Borrowings	$ 116,200	$ 163,700

Borrowed Funds - Term notes fro

Borrowed Funds - Term notes from the FHLB (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Borrowed funds
Borrowings from the FHLB	$ 5,374	$ 5,458
Fixed interest rate note, originating between April 1999 and December 2007, due between April 2014 and April 2022
Borrowed funds
Borrowings from the FHLB	$ 4,544	$ 4,618
Fixed interest rate note, originating between April 1999 and December 2007, due between April 2014 and April 2022 | Minimum
Borrowed funds
Interest rate on debt security (as a percent)	4.50%	4.50%
Fixed interest rate note, originating between April 1999 and December 2007, due between April 2014 and April 2022 | Maximum
Borrowed funds
Interest rate on debt security (as a percent)	5.90%	5.90%
Amortizing fixed interest rate note, originating February 2007, due February 2022
Borrowed funds
Borrowings from the FHLB	$ 830	$ 840
Interest rate on debt security (as a percent)	5.22%	5.22%
Monthly installments	$ 5	$ 5

Borrowed Funds - Subordinated D

Borrowed Funds - Subordinated Debt (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Mar. 31, 2007
Subordinated Debentures
Borrowed funds	$ 33,524,000		$ 33,524,000		$ 33,524,000
Interest expense on borrowed funds	$ 549,000	$ 26,000	$ 1,092,000	$ 45,000
Subordinated Debt | Subordinated Debentures
Subordinated Debentures
Face amount of debt issued						$ 4,000,000
Variable rate basis spread (as a percent)	1.62%
Debt instrument interest rate description	three month LIBOR Rate
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024
Subordinated Debentures
Face amount of debt issued		29,400,000		29,400,000
Debt Instrument Face Amount Of Incremental Issue		100,000		100,000
Debt Instrument Minimum Investment Required		$ 1,000,000		$ 1,000,000
Term of debt instrument	10 years
Debt Instrument Period From Issuance That Issuer May Prepay Debt	5 years
Debt Instrument Convertible Threshold Consecutive Trading Days After First Second Third Fourth And Fifth Anniversaries Of Issuance Or Prepayment Notice	30 days
Debt Instrument, Convertible, Conversion Price	$ 16		$ 16
Debt Instrument Convertible Notice Period Of Intent To Prepay	20 days
Debt Instrument Threshold Amount Of New Senior Debt Issuance That Issuer Must Obtain Holder Consent	$ 15,000,000		$ 15,000,000
Debt Instrument, Redemption Price, Percentage	100.00%
Debt Instrument Redemption Period From Issuance	5 years
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | LIBOR
Subordinated Debentures
Debt Instrument Basis Spread On Variable Rate After Fifth Anniversary	5.00%
Debt Instrument Maximum Interest Rate Stated Percentage After Fifth Anniversary	9.00%		9.00%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Less Than Three Million Dollars [Member]
Subordinated Debentures
Debt Instrument Investment Amount Of Holder	$ 3,000,000		$ 3,000,000
Debt Instrument Minimum Ownership Of Common Stock As Percentage Of Principal Acquired	30.00%		30.00%
Interest rate on debt security (as a percent)	7.00%		7.00%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Of Three Million Dollars Or Greater [Member]
Subordinated Debentures
Debt Instrument Investment Amount Of Holder	$ 3,000,000		$ 3,000,000
Debt Instrument Minimum Ownership Of Common Stock As Percentage Of Principal Acquired	30.00%		30.00%
Interest rate on debt security (as a percent)	7.50%		7.50%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Of Ten Million Dollars Or Greater [Member]
Subordinated Debentures
Debt Instrument Investment Amount Of Holder	$ 10,000,000		$ 10,000,000
Interest rate on debt security (as a percent)	7.00%		7.00%

Borrowed Funds - Summary of Mat

Borrowed Funds - Summary of Maturities (Details) $ in Thousands	Jun. 30, 2015USD ($)
Maturities of borrowings over the next five years
2,015	$ 172,956
2,016	1,246
2,017	1,470
2,018	81
2,019	85
Thereafter	35,931
Total	$ 211,769

Fair Value of Financial Instr42

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Available-for-sale securities	$ 65,855	$ 68,213
Level I
Financial assets:
Available-for-sale securities	73	77
Level II
Financial assets:
Available-for-sale securities	65,782	68,136
Loans held for sale	116,307	69,527
Level III
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,262	1,423
U.S. Agency securities
Financial assets:
Available-for-sale securities	30,582	37,534
U.S. Sponsored Mortgage backed securities
Financial assets:
Available-for-sale securities	34,530	29,932
Equity and other securities
Financial assets:
Available-for-sale securities	743	747
Recurring | Level II
Financial assets:
Loans held for sale	116,307	69,527
Recurring | Total
Financial assets:
Loans held for sale	116,307	69,527
Recurring | U.S. Agency securities | Level II
Financial assets:
Available-for-sale securities	30,582	37,534
Recurring | U.S. Agency securities | Total
Financial assets:
Available-for-sale securities	30,582	37,534
Recurring | U.S. Sponsored Mortgage backed securities | Level II
Financial assets:
Available-for-sale securities	34,530	29,932
Recurring | U.S. Sponsored Mortgage backed securities | Total
Financial assets:
Available-for-sale securities	34,530	29,932
Recurring | Equity and other securities | Level I
Financial assets:
Available-for-sale securities	73	77
Recurring | Equity and other securities | Level II
Financial assets:
Available-for-sale securities	670	670
Recurring | Equity and other securities | Total
Financial assets:
Available-for-sale securities	743	747
Non-recurring | Level III
Assets measured at fair value on a nonrecurring basis
Impaired loans	12,731	14,091
Other real estate owned	375	575
Mortgage servicing rights	1,262	1,423
Non-recurring | Total
Assets measured at fair value on a nonrecurring basis
Impaired loans	12,731	14,091
Other real estate owned	375	575
Mortgage servicing rights	1,262	1,423
Interest rate lock commitment | Level III
Financial assets:
Derivative asset	1,653	1,020
Interest rate lock commitment | Recurring | Level III
Financial assets:
Derivative asset	1,653	1,020
Interest rate lock commitment | Recurring | Total
Financial assets:
Derivative asset	1,653	1,020
Interest rate cap | Level II
Financial assets:
Derivative asset	936	1,423
Interest rate cap | Recurring | Level II
Financial assets:
Derivative asset	936	1,423
Interest rate cap | Recurring | Total
Financial assets:
Derivative asset	936	1,423
Forward sales commitments | Level II
Financial assets:
Derivative asset	783
Financial liabilities:
Derivative Liability		(431)
Forward sales commitments | Recurring | Level II
Financial assets:
Derivative asset	783
Financial liabilities:
Derivative Liability		431
Forward sales commitments | Recurring | Total
Financial assets:
Derivative asset	$ 783
Financial liabilities:
Derivative Liability		$ 431

Fair Value of Financial Instr43

Fair Value of Financial Instruments - Summary of recurring level III assets (Details) - Level III - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 1,790	$ 2,607	$ 1,020	$ 2,271
Realized and unrealized gains (loss) included in earnings	(137)	603	633	939
Balance, end of period	$ 1,653	$ 3,210	$ 1,653	$ 3,210

Fair Value of Financial Instr44

Fair Value of Financial Instruments - Assets measured at fair value on nonrecurring basis (Details) - Non-recurring - Level III - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Impaired loans
Quantitative information about assets measured at fair value on a non-recurring basis
Fair Value	$ 12,731	$ 14,091
Impaired loans | Appraisal of collateral | Minimum
Fair Value Inputs [Abstract]
Appraisal adjustments (as a percent)	20.00%	20.00%
Liquidation expenses (as a percent)	5.00%	5.00%
Impaired loans | Appraisal of collateral | Maximum
Fair Value Inputs [Abstract]
Appraisal adjustments (as a percent)	30.00%	30.00%
Liquidation expenses (as a percent)	10.00%	10.00%
Other real estate owned
Quantitative information about assets measured at fair value on a non-recurring basis
Fair Value	$ 375	$ 575
Other real estate owned | Appraisal of collateral | Minimum
Fair Value Inputs [Abstract]
Appraisal adjustments (as a percent)	20.00%	20.00%
Liquidation expenses (as a percent)	5.00%	5.00%
Other real estate owned | Appraisal of collateral | Maximum
Fair Value Inputs [Abstract]
Appraisal adjustments (as a percent)	30.00%	30.00%
Liquidation expenses (as a percent)	10.00%	10.00%
Mortgage servicing rights
Quantitative information about assets measured at fair value on a non-recurring basis
Fair Value	$ 1,262	$ 1,423
Mortgage servicing rights | Discounted cash flow
Fair Value Inputs [Abstract]
Prepayment rate (as a percent)	12.00%	12.00%
Cost of service (as a percent)	0.25%	0.25%
Discount rate (as a percent)	12.00%	12.00%

Fair Value of Financial Instr45

Fair Value of Financial Instruments - Carrying values and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Carrying values and estimated fair values of financial instruments:
Prepayments of principal amount of loans assumed	$ 0
Financial assets:
Cash and cash equivalents	14,014	$ 30,077	$ 28,119	$ 39,843
Certificates of deposit with other banks	11,659	11,907
Securities available-for-sale	65,855	68,213
Securities held-to-maturity	53,441	55,871
Financial liabilities:
FHLB and other borrowings	178,245	101,287
Level I
Financial assets:
Cash and cash equivalents	14,014	30,077
Securities available-for-sale	73	77
Level II
Financial assets:
Certificates of deposit with other banks	11,891	12,035
Securities available-for-sale	65,782	68,136
Securities held-to-maturity	53,441	55,871
Loans held for sale	116,307	69,527
Accrued interest receivable	668	728
Financial liabilities:
Deposits	894,979	824,078
Repurchase agreements	26,263	32,673
FHLB and other borrowings	178,264	101,338
Accrued interest payable	437	376
Subordinated debt	31,172	31,172
Level III
Financial assets:
Loans, net	912,331	803,036
Mortgage servicing rights	1,262	1,423
Accrued interest receivable	2,255	1,659
Carrying Value
Financial assets:
Cash and cash equivalents	14,014	30,077
Certificates of deposit with other banks	11,659	11,907
Securities available-for-sale	65,855	68,213
Securities held-to-maturity	53,141	54,538
Loans held for sale	116,307	69,527
Loans, net	904,038	792,074
Mortgage servicing rights	1,262	1,423
Accrued interest receivable	2,923	2,387
Financial liabilities:
Deposits	890,969	823,227
Repurchase agreements	26,263	32,673
FHLB and other borrowings	178,245	101,287
Accrued interest payable	437	376
Subordinated debt	33,524	33,524
Total
Financial assets:
Cash and cash equivalents	14,014	30,077
Certificates of deposit with other banks	11,891	12,035
Securities available-for-sale	65,855	68,213
Securities held-to-maturity	53,441	55,871
Loans held for sale	116,307	69,527
Loans, net	912,331	803,036
Mortgage servicing rights	1,262	1,423
Accrued interest receivable	2,923	2,387
Financial liabilities:
Deposits	894,979	824,078
Repurchase agreements	26,263	32,673
FHLB and other borrowings	178,264	101,338
Accrued interest payable	437	376
Subordinated debt	31,172	31,172
Interest rate lock commitment | Level III
Financial assets:
Derivative asset	1,653	1,020
Interest rate lock commitment | Carrying Value
Financial assets:
Derivative asset	1,653	1,020
Interest rate lock commitment | Total
Financial assets:
Derivative asset	1,653	1,020
Interest rate cap | Level II
Financial assets:
Derivative asset	936	1,423
Interest rate cap | Carrying Value
Financial assets:
Derivative asset	936	1,423
Interest rate cap | Total
Financial assets:
Derivative asset	936	1,423
Forward sales commitments | Level II
Financial assets:
Derivative asset	783
Financial liabilities:
Derivative Liability		431
Forward sales commitments | Carrying Value
Financial assets:
Derivative asset	783
Financial liabilities:
Derivative Liability		431
Forward sales commitments | Total
Financial assets:
Derivative asset	$ 783
Financial liabilities:
Derivative Liability		$ 431

Stock Offerings (Details)

Stock Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 08, 2011	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014
Stock offering
Number of shares issued		9,283				9,283
SBLF capital received			$ 7,834
Preferred stock, par value (in dollars per share)		$ 1,000				$ 1,000
Series B Preferred Stock
Stock offering
Number of shares issued		400
Dividend rate (as a percent)		6.00%
Period from first, second, third, fourth, and fifth anniversary of original issue date that stock may be convertible		30 days
Conversion price (in dollars per share)		$ 16
Series C Preferred Stock
Stock offering
Number of shares issued		383.4
Dividend rate (as a percent)		6.50%
Period from first, second, third, fourth, and fifth anniversary of original issue date that stock may be convertible		30 days
Conversion price (in dollars per share)		$ 16
Preferred Class A
Stock offering
Dividend rate (as a percent)				1.00%	1.00%
Stock offering (in shares)	8,500
SBLF capital received	$ 8,500
Preferred stock, par value (in dollars per share)	$ 1,000
Preferred Class A | Through 8 March 2016
Stock offering
Dividend rate (as a percent)		1.00%
Preferred Class A | After 8 March 2016
Stock offering
Dividend rate (as a percent)		9.00%

Net Income Per Common Share (De

Net Income Per Common Share (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Line Items]
Number of options outstanding (in shares)	678,159	494,470
Weighted average exercise price of options outstanding (in dollars per share)	$ 10.53	$ 9.09
Dilutive effect of stock (in shares)	197,283	213,549
Convertible Preferred Stock [Member]
Earnings Per Share [Line Items]
Dilutive effect of stock (in shares)	489,625	0

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2013USD ($)item	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Information about the reportable segments and reconciliation to the consolidated financial statements
Number of Reportable Segments | item			3
Revenues:
Interest income	$ 10,694	$ 9,162		$ 20,332	$ 17,539
Gain on loans held for sale	8,617	4,333		14,926	7,543
Insurance and investment services income	965	820		2,663	1,836
Other income	952	1,913		4,356	3,441
Total operating income	21,228	16,228		42,277	30,359
Expenses:
Interest expense	2,268	1,967		4,359	3,347
Salary and employee benefits	10,194	7,932		19,928	14,729
Provision for loan losses	561	889		1,220	1,408
Other expense	5,517	4,256		10,750	8,295
Total operating expenses	18,540	15,044		36,257	27,779
Income before income taxes	2,688	1,184		6,020	2,580
Income tax expense (benefit)	783	215		2,012	453
Net Income	1,905	969		4,008	2,127
Preferred dividends	143	22		285	43
Net Income available to common shareholders	1,762	947		3,723	2,084
Capital expenditures	711	2,666		1,105	4,962
Total assets	1,253,066	1,062,621	$ 987,060	1,253,066	1,062,621	$ 1,110,459
Goodwill	17,779	17,779	17,779	17,779	17,779	17,779
Commercial & Retail Banking
Revenues:
Interest income				18,622	16,123
Gain on loans held for sale				63	(8)
Insurance and investment services income				178	129
Other income				4,068	5,204
Total operating income				22,931	21,448
Expenses:
Interest expense				4,234	3,278
Salary and employee benefits				7,476	6,362
Provision for loan losses				1,220	1,408
Other expense				9,059	7,996
Total operating expenses				21,989	19,044
Income before income taxes				942	2,404
Income tax expense (benefit)				68	375
Net Income	911			874	2,029
Preferred dividends				285	43
Net Income available to common shareholders				589	1,986
Capital expenditures				997	4,428
Total assets	1,390,957	1,143,107	1,021,097	1,390,957	1,143,107	1,189,746
Goodwill	897	897	897	897	897	897
Increase (decrease) in net interest income	1,100			1,500
Increase (decrease) in noninterest income	(528)			1,000
Increase (decrease) in noninterest expense	747,000			2,200
Increase (decrease) in interest exepense	262			956,000
Increase (decrease) in gain on derivative				494
Increase (decrease) in average subordinated debt	29,100			29,200
Increase (decrease) in volume of portfolio loans sold	(8,100)			(8,100)
Increase (decrease) in professional fees				446
Increase (decrease) in dividends on Preferred stock	121			121
Increase (decrease) in occupancy and equipment expense				521
Increase in data processing and communications expense	300			599
Increase (decrease) in average loan balances	173,000			171,800
Increase (decrease) in salaries expense	387			1,100
Increase (decrease) in income from portfolio loans held for sale	204			533
Decrease on gains for security sales	121
Mortgage Banking
Revenues:
Interest income				1,966	1,235
Gain on loans held for sale				15,385	8,139
Other income				2,600	939
Total operating income				19,951	10,313
Expenses:
Interest expense				903	489
Salary and employee benefits				10,664	6,632
Other expense				3,581	2,595
Total operating expenses				15,148	9,716
Income before income taxes				4,803	597
Income tax expense (benefit)				1,838	238
Net Income				2,965	359	400
Net Income available to common shareholders				2,965	359
Capital expenditures				99	191
Total assets	139,767	101,609	92,290	139,767	101,609	101,791
Goodwill	16,882	16,882	16,882	16,882	16,882	16,882
Increase (decrease) in net interest income	198			317,000
Increase (decrease) in noninterest income	3,500			8,900
Increase (decrease) in noninterest expense	2,500			5,000
Increase (decrease) in earnings	769,000			2,600
Increase (decrease) in mortgage fee income	4,200			7,200
Increase (decrease) in gain on derivative	$ 691,000			$ 1,700
Increase (decrease) loan origination volume (as a percent)	69.00%			94.00%
Increase (decrease) in personnel expense	$ 1,900			$ 4,000
Decrease in loans held for sale	9,500
Insurance
Revenues:
Insurance and investment services income				2,485	1,707
Other income				4
Total operating income				2,489	1,707
Expenses:
Salary and employee benefits				1,788	1,735
Other expense				426	393
Total operating expenses				2,214	2,128
Income before income taxes				275	(421)
Income tax expense (benefit)				106	(160)
Net Income	174	(253)		169	(261)
Net Income available to common shareholders				169	(261)
Capital expenditures				9	343
Total assets	4,321	4,431	3,012	4,321	4,431	4,031
Increase (decrease) in net interest income	114
Increase (decrease) in noninterest income				782
Increase (decrease) in noninterest expense	(15)			86
Increase (decrease) in income tax expense	50			266
Operating segments | Commercial & Retail Banking
Revenues:
Interest income	9,719	8,364
Gain on loans held for sale	76	25
Insurance and investment services income	106	71
Other income	2,132	2,746
Total operating income	12,033	11,206
Expenses:
Interest expense	2,193	1,931
Salary and employee benefits	3,718	3,331
Provision for loan losses	561	889
Other expense	4,485	4,125
Total operating expenses	10,957	10,276
Income before income taxes	1,076	930
Income tax expense (benefit)	165	107
Net Income	911	823
Preferred dividends	143	22
Net Income available to common shareholders	768	801
Capital expenditures	638	2,559
Total assets	1,390,957	1,143,107	1,021,097	1,390,957	1,143,107	1,189,746
Goodwill	897	897	897	897	897	897
Operating segments | Mortgage Banking
Revenues:
Interest income	1,137	688
Gain on loans held for sale	8,833	4,649
Other income	(88)	604
Total operating income	9,882	5,941
Expenses:
Interest expense	529	278
Salary and employee benefits	5,574	3,655
Other expense	1,888	1,346
Total operating expenses	7,991	5,279
Income before income taxes	1,891	662
Income tax expense (benefit)	723	263
Net Income	1,168	399
Net Income available to common shareholders	1,168	399
Capital expenditures	71	74
Total assets	139,767	101,609	92,290	139,767	101,609	101,791
Goodwill	16,882	16,882	16,882	16,882	16,882	16,882
Operating segments | Insurance
Revenues:
Insurance and investment services income	859	749
Other income	4
Total operating income	863	749
Expenses:
Salary and employee benefits	902	946
Other expense	240	211
Total operating expenses	1,142	1,157
Income before income taxes	(279)	(408)
Income tax expense (benefit)	(105)	(155)
Net Income	(174)	(253)
Net Income available to common shareholders	(174)	(253)
Capital expenditures	2	33
Total assets	4,321	4,431	3,012	4,321	4,431	4,031
Intercompany Eliminations
Revenues:
Interest income	(162)	110		(256)	181
Gain on loans held for sale	(292)	(341)		(522)	(588)
Other income	(1,096)	(1,437)		(2,316)	(2,702)
Total operating income	(1,550)	(1,668)		(3,094)	(3,109)
Expenses:
Interest expense	(454)	(242)		(778)	(420)
Other expense	(1,096)	(1,426)		(2,316)	(2,689)
Total operating expenses	(1,550)	(1,668)		(3,094)	(3,109)
Total assets	$ (281,979)	$ (186,526)	$ (129,339)	$ (281,979)	$ (186,526)	$ (185,109)

Pension Plan (Details)

Pension Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	May. 31, 2014
PENSION PLAN
Discount rate used to re-measure pension obligation (as a percent)					4.46%
Components of net periodic pension cost
Service cost		$ 138		$ 346
Interest cost	$ 78	77	$ 157	155
Expected return on plan assets	(79)	(79)	(158)	(158)
Amortization of loss	64	35	128	70
Net periodic pension cost	63	171	127	413
Contributions paid	$ 36	$ 94	$ 72	$ 188

Comprehensive Income - Reclassi

Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Comprehensive Income
Gain on sale of securities	$ 5	$ 125	$ 126	$ 125
Salary and employee benefits	10,194	7,932	19,928	14,729
Income before income taxes	2,688	1,184	6,020	2,580
Income tax expense	(783)	(215)	(2,012)	(453)
Net Income	1,905	969	4,008	2,127
Amount Reclassified from AOCI
Comprehensive Income
Net Income	(36)	54	(2)	32
Available-for-sale securities, Unrealized holding gains | Amount Reclassified from AOCI
Comprehensive Income
Gain on sale of securities	5	125	126	125
Income before income taxes	5	125	126	125
Income tax expense	(2)	(50)	(50)	(50)
Net Income	3	75	76	75
Defined benefit pension plan items, Change in defined benefit pension plan | Amount Reclassified from AOCI
Comprehensive Income
Salary and employee benefits	(64)	(35)	(128)	(70)
Income before income taxes	(64)	(35)	(128)	(70)
Income tax expense	25	14	50	27
Net Income	$ (39)	$ (21)	$ (78)	$ (43)

Comprehensive Income - Componen

Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated other comprehensive income (loss)
Beginning balance	$ (2,554)	$ (2,639)	$ (2,642)	$ (2,961)
Other comprehensive loss before reclassification	186	456	308	756
Amounts reclassified from AOCI	36	(54)	2	(32)
Net current period OCI	222	402	310	724
Ending balance	(2,332)	(2,237)	(2,332)	(2,237)
Available-for-sale securities, Unrealized holding gains
Accumulated other comprehensive income (loss)
Beginning balance	(154)	(1,154)	(406)	(1,476)
Other comprehensive loss before reclassification	(255)	666	70	988
Amounts reclassified from AOCI	(3)	(75)	(76)	(75)
Net current period OCI	(258)	591	(6)	913
Ending balance	(412)	(563)	(412)	(563)
Defined benefit pension plan items, Change in defined benefit pension plan
Accumulated other comprehensive income (loss)
Beginning balance	(2,400)	(1,485)	(2,236)	(1,485)
Other comprehensive loss before reclassification	441	(210)	238	(232)
Amounts reclassified from AOCI	39	21	78	43
Net current period OCI	480	(189)	316	(189)
Ending balance	$ (1,920)	$ (1,674)	$ (1,920)	$ (1,674)

Mergers and Acquisitions (Detai

Mergers and Acquisitions (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)store	Jun. 30, 2014USD ($)
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income	$ 20	$ 48	$ 20	$ 163
Consulting
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income	12	3	12	72
Advertising
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income		2		4
Printing, stationery and supplies
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income	3	1	3	8
Equipment depreciation and maintenance
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income		1		6
Travel
Mergers and acquisitions
Acquisition related costs included in consolidated statements of income	5	$ 41	5	$ 73
CFG | Bank
Mergers and acquisitions
Aggregate consideration			30,000
Consideration in cash			26,000
Consideration in shares of common stock			$ 4,000
Susquehanna Bank [Member]
Mergers and acquisitions
Number of branch locations acquired | store			2
Deposits acquired	69,000		$ 69,000
Loans acquired	$ 17,000		$ 17,000