Entegra Financial (ENFC) 10-Q 11 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document And Entity Information
Entity Registrant Name	ENTEGRA FINANCIAL CORP.
Entity Central Index Key	1,522,327
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,546,375
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 7,793	$ 7,860
Interest-earning deposits	21,202	51,122
Cash and cash equivalents	28,995	58,982
Investments - available for sale	239,741	219,859
Investments - held to maturity (fair value of $40,534 and $30,890 at June 30, 2015 and December 31, 2014, respectively)	39,777	29,285
Other investments, at cost	7,432	4,908
Loans held for sale	9,635	10,761
Loans receivable	582,466	540,479
Allowance for loan losses	(9,451)	(11,072)
Fixed assets, net	14,981	13,004
Real estate owned	4,710	4,425
Interest receivable	3,236	2,925
Bank owned life insurance	20,638	20,417
Net deferred tax asset	19,351	2,089
Real estate held for investment	2,434	2,489
Loan servicing rights	2,158	2,187
Other assets	3,421	2,910
Total assets	969,524	903,648
Liabilities:
Deposits	692,537	703,117
Federal Home Loan Bank advances	120,500	60,000
Junior subordinated notes	14,433	$ 14,433
Other borrowings	2,366
Post employment benefits	9,975	$ 9,759
Accrued interest payable	216	323
Other liabilities	2,355	8,697
Total liabilities	$ 842,382	$ 796,329
Commitments and contingencies (Note 14)
Shareholders' Equity:
Preferred stock - no par value, 10,000,000 shares authorized; none issued and outstanding
Common stock - no par value, 50,000,000 shares authorized; 6,546,375 shares issued and outstanding as of June 30, 2015 and December 31, 2014
Additional paid in capital	$ 63,651	$ 63,651
Retained earnings	65,657	45,937
Accumulated other comprehensive loss	(2,166)	(2,269)
Total shareholders' equity	127,142	107,319
Total liabilities and shareholders' equity	$ 969,524	$ 903,648

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Investment - held to maturity at fair value	$ 40,534	$ 30,890
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)
Preferred stock, shares outstanding (in shares)
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	6,546,375	6,546,375
Common stock, shares outstanding (in shares)	6,546,375	6,546,375

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - 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	$ 6,647	$ 6,737	$ 13,117	$ 14,345
Interest on tax exempt loans	32	16	58	33
Taxable securities	1,278	973	2,514	1,952
Tax-exempt securities	84	92	154	185
Interest-earning deposits	22	18	46	28
Other	49	26	107	47
Total interest and dividend income	8,112	7,862	15,996	16,590
Interest expense:
Deposits	1,149	1,348	2,358	2,689
Federal Home Loan Bank advances	183	174	388	348
Junior subordinated notes	115	$ 52	227	$ 175
Other borrowings	26		52
Total interest expense	1,473	$ 1,574	3,025	$ 3,212
Net interest income	$ 6,639	6,288	12,971	13,378
Provision for loan losses		6	(1,500)	11
Net interest income after provision for loan losses	$ 6,639	6,282	14,471	13,367
Noninterest income:
Servicing income, net	19	147	105	426
Mortgage banking	85	$ 232	340	426
Gain on sale of SBA loans	3		214	74
Gain on sale of investments, net	123	$ 317	287	379
Other than temporary impairment on cost method investment	(3)		(3)	(76)
Service charges on deposit accounts	317	$ 291	615	589
Interchange fees	322	291	600	541
Bank owned life insurance	133	129	262	258
Other	89	148	207	312
Total noninterest income	1,088	1,555	2,627	2,929
Noninterest expenses:
Compensation and employee benefits	3,817	2,947	7,514	5,894
Net occupancy	731	$ 669	1,433	$ 1,309
Federal Home Loan Bank prepayment penalty	1,762		1,762
Federal deposit insurance	279	$ 258	563	$ 696
Professional and advisory	261	182	511	380
Data processing	282	276	562	502
Net cost of operation of real estate owned	116	604	332	1,444
Other	933	732	2,080	1,556
Total noninterest expenses	8,181	5,668	14,757	11,781
Income (loss) before taxes	(454)	2,169	2,341	4,515
Income tax expense (benefit)	(17,559)	1,501	(17,379)	1,756
Net income	$ 17,105	$ 668	$ 19,720	$ 2,759
Earnings per share - basic and diluted (in dollars per share)	$ 2.61		$ 3.01
Average shares outstanding - basic and diluted (in shares)	6,546,375		6,546,375

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 17,105	$ 668	$ 19,720	$ 2,759
Other comprehensive income (loss):
Change in unrealized holding gains and losses on securities available for sale	(2,172)	2,314	(152)	4,444
Reclassification adjustment for securities gains realized in net income	(123)	(317)	(287)	(379)
Amortization of unrealized loss on securities transferred to held to maturity	493	50	542	100
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale	(675)	783	54	1,593
Other comprehensive income (loss), before tax	(2,477)	2,830	157	5,758
Income tax effect related to items of other comprehensive income (loss)	675	(783)	(54)	(1,593)
Other comprehensive income (loss), after tax	(1,802)	2,047	103	4,165
Comprehensive income	$ 15,303	$ 2,715	$ 19,823	$ 6,924

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning Balance at Dec. 31, 2013			$ 39,994	$ (7,476)	$ 32,518
Beginning Balance (in shares) at Dec. 31, 2013
Net income			$ 2,759		2,759
Other comprehensive income, net of tax				$ 4,165	4,165
Ending Balance at Jun. 30, 2014			$ 42,753	(3,311)	39,442
Ending Balance (in shares) at Jun. 30, 2014
Beginning Balance at Dec. 31, 2014		$ 63,651	45,937	$ (2,269)	107,319
Beginning Balance (in shares) at Dec. 31, 2014	6,546,375
Net income			$ 19,720		19,720
Other comprehensive income, net of tax				$ 103	103
Ending Balance at Jun. 30, 2015		$ 63,651	$ 65,657	$ (2,166)	$ 127,142
Ending Balance (in shares) at Jun. 30, 2015	6,546,375

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 19,720	$ 2,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and leasehold amortization	506	433
Security amortization, net	1,007	529
Provision for loan losses	(1,500)	11
Provision for real estate owned	166	1,097
Deferred income tax expense	(17,262)	1,756
Net increase (decrease) in deferred loan fees	(110)	(176)
Gain on sales of securities available for sale	(287)	(379)
Other than temporary impairment on cost method investment	3	76
Income on bank owned life insurance, net	(221)	(226)
Mortgage banking income, net	(340)	(426)
Gain on sale of SBA loans	(214)	(74)
Net realized loss on sale of real estate owned	(33)	(10)
Loans originated for sale	(14,950)	(11,495)
Proceeds from sale of loans originated for sale	16,630	9,702
Net change in operating assets and liabilities:
Interest receivable	(311)	2
Loan servicing rights	29	(206)
Other assets	(572)	(481)
Postemployment benefits	216	(264)
Accrued interest payable	(107)	45
Other liabilities	843	61
Net cash provided by operating activities	3,213	2,734
Activity for investment securities:
Purchases	(90,592)	(43,178)
Maturities/calls and principal repayments	31,890	11,909
Sales	25,707	15,425
Net increase in loans	(25,339)	$ (12,261)
Purchase of loans	(20,369)
Proceeds from sale of real estate owned	560	$ 2,134
Real estate cost capitalized	(8)
Purchase of fixed assets	(2,445)	$ (423)
Purchase of other investments, at cost	(2,674)
Redemptions of other investments, at cost	150	$ 209
Net cash used in investing activities	(83,120)	(26,185)
Cash flows from financing activities:
Net increase (decrease) in deposits	(11,264)	28,350
Net increase in escrow deposits	684	$ 595
Proceeds from FHLB advances	100,500
Repayment of FHLB advances	(40,000)
Net cash provided by financing activities	49,920	$ 28,945
Increase (decrease) in cash and cash equivalents	(29,987)	5,494
Cash and cash equivalents, beginning of period	58,982	34,316
Cash and cash equivalents, end of period	28,995	39,810
Cash paid during the year for:
Interest on deposits and other borrowings	3,132	3,167
Noncash investing and financing activities:
Real estate acquired in satisfaction of mortgage loans	1,689	1,063
Loans originated for disposition of real estate owned	$ 794	863
Transfer of investment securities available for sale to held to maturity		$ 4,399

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Entegra Financial Corp. (the “Company”) was incorporated on May 31, 2011 and became the holding company for Macon Bank, Inc. (the “Bank”) on September 30, 2014 upon the completion of Macon Bancorp’s merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Company’s primary operation is its investment in the Bank. The Company also owns 100% of the common stock of Macon Capital Trust I (the “Trust”), a Delaware statutory trust formed in 2003 to facilitate the issuance of trust preferred securities. The Bank is a North Carolina state-chartered savings bank and has a wholly owned subsidiary, Macon Services, Inc., which owned a real estate investment property as of June 30, 2015. The consolidated financials are presented in these financial statements. The Bank operates as a community-focused retail bank, originating primarily real estate based mortgage, consumer and commercial loans and accepting deposits from consumers and small businesses. Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated. Reclassification Certain amounts in the prior years’ financial statements may have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition as previously reported. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the SEC on March 30, 2015. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet including the estimates inherent in the process of preparing financial statements. Unrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. The Company has reviewed events occurring through the issuance date of the Consolidated Financial Statements and no subsequent events have occurred requiring accrual or disclosure in these financial statements other than those included in this Quarterly Report on Form 10-Q. Recent Accounting Standards Updates In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to real estate owned. In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to REO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying its interest in the real estate collateral to the creditor to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. As an emerging growth company, the amendments will be effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. For non-emerging growth companies, the amendments are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2014. Early implementation of the guidance is permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company has adopted the amendments and the related disclosures are included in Note 6. The amendments did not have a material effect on the Company’s financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. As an emerging growth company, the amendments will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2017. For non-emerging growth companies, the amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. As an emerging growth company, the guidance will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. For non-emerging growth companies, the guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

STOCK CONVERSION AND CHANGE IN

STOCK CONVERSION AND CHANGE IN CORPORATE FORM	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
STOCK CONVERSION AND CHANGE IN CORPORATE FORM	NOTE 2. STOCK CONVERSION AND CHANGE IN CORPORATE FORM On January 23, 2014, the Board of Directors of Macon Bancorp adopted a Plan of Conversion (the “Plan of Conversion”) which provided for the reorganization of Macon Bancorp from a North Carolina chartered mutual holding company into a stock holding company, Entegra Financial Corp., incorporated under the laws of the State of North Carolina (the “Conversion”). In connection with the Conversion, the Company sold 6,546,375 shares of common stock at an offering price of $10.00 per share and received gross sales proceeds of $65.5 million. The Company recognized $1.7 million in reorganization and stock issuance costs as of September 30, 2014 which were deducted from the gross sales proceeds. Of the $63.7 million in net sales proceeds, $44.6 million, or approximately 70%, was contributed to the capital of the Bank upon completion of the Conversion on September 30, 2014. Common Stock Offering Summary (Dollars in thousands) Gross proceeds $ 65,464 Issuance costs (1,813 ) Net proceeds $ 63,651 Contributed to bank subsidiary $ 44,581 Retained by the Company 19,070 $ 63,651 On September 30, 2014, liquidation accounts were established by the Company and the Bank for the benefit of eligible depositors of the Bank as defined in the Plan of Conversion. Each eligible depositor will have a pro rata interest in the liquidation accounts for each of his or her deposit accounts based upon the proportion that the balance of each such account bears to the balance of all deposit accounts of the Bank as of the dates specified in the Plan of Conversion. The liquidation accounts will be maintained for the benefit of eligible depositors who continue to maintain their deposit accounts in the Bank. The liquidation accounts will be reduced annually to the extent that eligible depositors reduce their qualifying deposits. In the unlikely event of a complete liquidation of the Bank or the Company or both, and only in such event, eligible depositors who continue to maintain accounts will be entitled to receive a distribution from the liquidation accounts before any distribution may be made with respect to common stock. Neither the Company nor the Bank may declare or pay a cash dividend if the effect thereof would cause its equity to be reduced below either the amount required for the liquidation accounts or the regulatory capital requirements imposed by the Company’s or the Bank’s regulators.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 3. INVESTMENT SECURITIES The amortized cost and estimated fair values of securities available for sale as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,814 $ 231 $ (52 ) $ 39,993 Municipal securities 32,453 167 (284 ) 32,336 Mortgage-backed securities 166,199 443 (1,342 ) 165,300 U.S. Treasury securities 1,500 18 — 1,518 Mutual funds 596 — (2 ) 594 $ 240,562 $ 859 $ (1,680 ) $ 239,741 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,540 $ 65 $ (123 ) $ 39,482 Municipal securities 25,483 225 (150 ) 25,558 Mortgage-backed securities 153,128 643 (1,053 ) 152,718 U.S. Treasury securities 1,500 10 — 1,510 Mutual funds 590 1 — 591 $ 220,241 $ 944 $ (1,326 ) $ 219,859 The amortized cost and estimated fair values of securities held to maturity (“HTM”) as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 21,429 $ 957 $ (42 ) $ 22,344 Municipal securities 12,508 142 (232 ) 12,418 Mortgage-backed securities 2,890 — (63 ) 2,827 Corporate debt securities 2,950 — (5 ) 2,945 $ 39,777 $ 1,099 $ (342 ) $ 40,534 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 23,193 $ 1,420 $ (5 ) $ 24,608 Municipal securities 4,392 190 — 4,582 Trust preferred securities 1,000 — — 1,000 Corporate debt securities 700 — — 700 $ 29,285 $ 1,610 $ (5 ) $ 30,890 During the six months ended June 30, 2014, the Bank transferred the following investment securities from available for sale to held to maturity: At Date of Transfer During the Six Months Ended June 30, 2014 (Dollars in thousands) Book value $ 4,473 Market value 4,399 Unrealized loss $ 74 There were no transfers of investment securities from available for sale to held to maturity during the six months ended June 30, 2015. Information pertaining to the activity for the three and six month periods ended June 30, 2015 and 2014 of unrealized losses related to HTM securities (before the impact of income taxes) previously recognized in accumulated other comprehensive income (“AOCI”) is summarized below: For the Three Months Ended For the Six Months Ended June 30 June 30 (Dollars in thousands) 2015 2014 2015 2014 Beginning unrealized loss related to HTM securities previously recognized in AOCI $ 1,838 $ 2,036 $ 1,887 $ 2,012 Additions for transfers to HTM — — — 74 Amortization of unrealized losses on HTM securities previously recognized in AOCI (493 ) (50 ) (542 ) (100 ) Ending unrealized loss in AOCI related to HTM securities previously recognized in AOCI $ 1,345 $ 1,986 $ 1,345 $ 1,986 Information pertaining to securities with gross unrealized losses at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2015 Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,685 $ 42 $ — $ — $ 5,685 $ 42 Municipal securities 8,753 232 — — 8,753 232 Mortgage-backed securities 2,828 63 — — 2,828 63 Corporate debt securities 745 5 — — 745 5 $ 18,011 $ 342 $ — $ — $ 18,011 $ 342 Available for Sale: U.S. government agencies $ 6,029 $ 9 $ 2,957 $ 43 $ 8,986 $ 52 Municipal securities 18,915 262 1,405 22 20,320 284 Mortgage-backed securities 79,607 788 21,952 554 101,559 1,342 Mutual funds 596 2 — — 596 2 $ 105,147 $ 1,061 $ 26,314 $ 619 $ 131,461 $ 1,680 December 31, 2014 Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 1,995 $ 5 $ — $ — $ 1,995 $ 5 $ 1,995 $ 5 $ — $ — $ 1,995 $ 5 Available for Sale: U.S. government agencies $ 14,472 $ 15 $ 7,893 $ 108 $ 22,365 $ 123 Municipal securities 4,306 49 8,409 101 12,715 150 Mortgage-backed securities 38,563 217 46,204 836 84,767 1,053 $ 57,341 $ 281 $ 62,506 $ 1,045 $ 119,847 $ 1,326 Information pertaining to the number of securities with unrealized losses is detailed in the table below. The Company believes all unrealized losses as of June 30, 2015 and December 31, 2014 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. June 30, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 6 1 7 Municipal securities 57 3 60 Mortgage-backed securities 49 14 63 Corporate debt securities 1 — 1 113 18 131 December 31, 2014 Less Than 12 Months More Than 12 Months Total U.S. government agencies 11 3 14 Municipal securities 9 19 28 Mortgage-backed securities 26 27 53 46 49 95 For the three and six months ended June 30, 2015 and 2014 the Company had proceeds from sales of securities available for sale and their corresponding gross realized gains and losses as detailed below: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Gross proceeds $ 12,010 $ 8,503 $ 25,707 $ 15,425 Gross realized gains 123 317 307 378 Gross realized losses — — 20 — The Company had securities pledged against deposits and borrowings of approximately $44.0 million and $10.7 million at June 30, 2015 and December 31, 2014, respectively. The amortized cost and estimated fair value of investments in debt securities at June 30, 2015, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available for Sale Amortized Cost Fair Value (Dollars in thousands) Over 1 year through 5 years $ 31,828 $ 31,994 After 5 years through 10 years 21,550 21,489 Over 10 years 20,985 20,958 74,363 74,441 Mortgage-backed securities 166,199 165,300 Total $ 240,562 $ 239,741 Held to Maturity Amortized Cost Fair Value (Dollars in thousands) After 5 years through 10 years $ 8,886 $ 8,848 Over 10 years 28,001 28,859 36,887 37,707 Mortgage-backed securities 2,890 2,827 Total $ 39,777 $ 40,534

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
LOANS RECEIVABLE	NOTE 4. LOANS RECEIVABLE Loans receivable as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 December 31, 2014 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 232,167 $ 227,209 Commercial real estate 192,021 179,435 Home equity loans and lines of credit 54,078 56,561 Residential construction 10,363 7,823 Other construction and land 54,369 50,298 Total real estate loans 542,998 521,326 Commercial and industrial 36,847 19,135 Consumer 5,295 3,200 Total commercial and consumer 42,142 22,335 Loans receivable, gross 585,140 543,661 Less: Net deferred loan fees (1,585 ) (1,695 ) Unamortized premium 410 — Unamortized discount (1,499 ) (1,487 ) Loans receivable, net $ 582,466 $ 540,479 The Bank had $148.8 million and $117.9 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2015 and December 31, 2014, respectively. The Bank also had $97.3 million and $97.7 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2015 and December 31, 2014, respectively. During January 2014, the Bank purchased the remaining participation balance of certain commercial real estate loans from the Federal Deposit Insurance Corporation (“FDIC”). The Bank had previously purchased a 50% participation in the loans from an institution that was subsequently taken into receivership by the FDIC. At the date of purchase, the outstanding loan balance purchased was $9.3 million and the loans were purchased at a total discount of $2.6 million. The loans were not deemed to be impaired at the time of purchase. Subsequent to the transaction, $2.8 million of the participation balance purchased was repaid, resulting in the Bank recognizing approximately $0.5 million of the initial discount, in addition to recognizing $0.3 million of previously collected but deferred interest. In addition, the Bank restructured a $1.8 million loan in the second quarter of 2014 and recognized $0.2 million of the discount in interest income. During the six months ended June 30, 2015, the Bank purchased the remaining participation balance of a commercial real estate loan from another community bank. The Bank had previously purchased a 54% participation in the loan from the participating institution. At the date of purchase, the outstanding loan balance purchased was $1.6 million and the loan was purchased at a discount of $0.5 million. The loan was not deemed to be impaired at the time of purchase. Also during the six months ended June 30, 2015, the Bank purchased $15.2 million in externally sourced loans which were comprised of $2.5 million in commercial SBA guaranteed loans, $10.0 million in commercial and industrial participation loans, and a $2.7 million commercial real estate whole loan purchase. Included in loans receivable and other borrowings at June 30, 2015 are $2.4 million in participated loans that did not qualify for sale accounting. Interest expense on the other borrowings accrues at the same rate as the interest income recognized on the loans receivable, resulting in no effect to net income. The following tables present the activity related to the discount on purchased loans for the three and six month periods ended June 30, 2015 and 2014: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Discount on purchased loans, beginning of period $ 1,587 $ 1,974 $ 1,487 $ — Additional discount for new purchases — — 484 2,607 Accretion (88 ) (92 ) (177 ) (187 ) Discount applied to charge-offs — — (295 ) — Interest income recognized for repayments and restructurings — (217 ) — (755 ) Discount on purchased loans, end of period $ 1,499 $ 1,665 $ 1,499 $ 1,665

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
ALLOWANCE FOR LOAN LOSSES	NOTE 5. ALLOWANCE FOR LOAN LOSSES The following tables present, by portfolio segment, the changes in the allowance for loan losses: Three Months Ended June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,773 $ 2,363 $ 1,168 $ 304 $ 1,990 $ 596 $ 417 $ 9,611 Provision (507 ) 184 170 38 (304 ) 82 337 — Charge-offs 19 15 260 — 67 1 7 369 Recoveries 13 75 2 2 47 3 67 209 Ending balance $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Three Months Ended June 30, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,265 $ 2,851 $ 1,453 $ 501 $ 3,256 $ 340 $ 290 $ 11,956 Provision (20 ) 149 (136 ) (14 ) 125 (61 ) (37 ) 6 Charge-offs 85 205 188 — 132 125 18 753 Recoveries 22 51 17 — 8 150 104 352 Ending balance $ 3,202 $ 2,450 $ 1,488 $ 524 $ 3,712 $ 259 $ 321 $ 11,561 Six Months Ended June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Provision (607 ) (232 ) 91 (168 ) (1,350 ) 363 403 (1,500 ) Charge-offs 238 45 369 — 86 1 20 759 Recoveries 122 167 25 2 166 10 146 638 Ending balance $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Six Months Ended June 30, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 Provision (18 ) 149 (137 ) (14 ) 130 (62 ) (37 ) 11 Charge-offs 516 1,998 331 — 475 125 63 3,508 Recoveries 23 335 34 — 86 155 174 807 Ending balance $ 3,202 $ 2,450 $ 1,488 $ 524 $ 3,712 $ 259 $ 321 $ 11,561 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 437 $ 156 $ 67 $ — $ 92 $ 39 $ — $ 791 Collectively evaluated for impairment 1,823 2,451 1,013 344 1,574 641 814 8,660 $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Loans Receivable Individually evaluated for impairment $ 7,519 $ 12,695 $ 1,065 $ — $ 2,239 $ 324 $ — $ 23,842 Collectively evaluated for impairment 224,648 179,326 53,013 10,363 52,130 36,523 5,295 561,298 $ 232,167 $ 192,021 $ 54,078 $ 10,363 $ 54,369 $ 36,847 $ 5,295 $ 585,140 December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 719 $ 235 $ 14 $ — $ 705 $ 3 $ — $ 1,676 Collectively evaluated for impairment 2,264 2,482 1,319 510 2,231 305 285 9,396 $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Loans Receivable Individually evaluated for impairment $ 9,912 $ 17,828 $ 1,686 $ — $ 3,911 $ 328 $ — $ 33,665 Collectively evaluated for impairment 217,297 161,607 54,875 7,823 46,387 18,807 3,200 509,996 $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 Portfolio Quality Indicators The Company’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. The Company’s internal credit risk grading system is based on experiences with similarly graded loans, industry best practices, and regulatory guidance. Credit risk grades are refreshed each quarter, at which time management analyzes the resulting information, as well as other external statistics and factors, to track loan performance. The Company’s internally assigned grades pursuant to the Board-approved lending policy are as follows: · Pass (1-5) – Acceptable loans with any identifiable weaknesses appropriately mitigated. · Special Mention (6) – Potential weakness or identifiable weakness present without appropriate mitigating factors; however, loan continues to perform satisfactorily with no material delinquency noted. This may include some deterioration in repayment capacity and/or loan-to-value of securing collateral. · Substandard (7) – Significant weakness that remains unmitigated, most likely due to diminished repayment capacity, serious delinquency, and/or marginal performance based upon restructured loan terms. · Doubtful (8) – Significant weakness that remains unmitigated and collection in full is highly questionable or improbable. · Loss (9) – Collectability is unlikely resulting in immediate charge-off. Beginning as of March 31, 2015, we no longer risk grade consumer purposed loans within all categories for which the individual loan balance is less than $417,000. These loan types provide limited credit information subsequent to origination and therefore may not be properly risk graded within our standard risk grading system. All of our consumer purposed loans are now considered ungraded and will be analyzed on a performing versus non-performing basis. The non-performing ungraded loans will be deemed substandard when determining our classified assets. Consumer purposed loans may include residential loans, home equity loans and lines of credit, residential lot loans, and other consumer loans. This change in risk grading methodology did not have any impact on our allowance for loan losses calculation. Description of segment and class risks Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. One-to four family residential We centrally underwrite each of our one-to four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. Commercial real estate Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customer’s business results are significantly unfavorable versus the original projections, the ability for our loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans are secured by real property and possibly other business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in our customer having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans are highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. Home equity and lines of credit Home equity loans are often secured by first or second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render our second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lienholders that may further weaken our collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. Residential construction and other construction and land Residential mortgage construction loans are typically secured by undeveloped or partially developed land with funds to be disbursed as home construction is completed contingent upon receipt and satisfactory review of invoices and inspections. Declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the collateral’s current market value. Non-commercial construction and land development loans can experience delays in completion and/or cost overruns that exceed the borrower’s financial ability to complete the project. Cost overruns can result in foreclosure of partially completed collateral with unrealized value and diminished marketability. Commercial We centrally underwrite each of our commercial loans based primarily upon the customer’s ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. We strive to gain a complete understanding of our borrower’s businesses including the experience and background of the principals. To the extent that the loan is secured by collateral, which is a predominant feature of the majority of our commercial loans, or other assets including accounts receivable and inventory, we gain an understanding of the likely value of the collateral and what level of strength it brings to the loan transaction. To the extent that the principals or other parties are obligated under the note or guaranty agreements, we analyze the relative financial strength and liquidity of each guarantor. Common risks to each class of commercial loans include risks that are not specific to individual transactions such as general economic conditions within our markets, as well as risks that are specific to each transaction including volatility or seasonality of cash flows, changing demand for products and services, personal events such as death, disability or change in marital status, and reductions in the value of our collateral. Consumer The consumer loan portfolio includes loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. The following tables present the recorded investment in gross loans by loan grade: June 30, 2015 Loan Grade One-to Four-Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 66 $ — $ — $ — $ 9,669 $ 11 $ 9,746 2 — — — — — 99 — 99 3 11,937 8,747 1,276 567 1,005 484 907 24,923 4 40,356 57,355 2,474 4,914 11,247 17,527 1,620 135,493 5 32,656 94,272 5,860 2,094 20,189 8,139 96 163,306 6 2,995 15,866 — 999 1,973 419 — 22,252 7 4,694 15,715 500 — 3,270 510 — 24,689 $ 92,638 $ 192,021 $ 10,110 $ 8,574 $ 37,684 $ 36,847 $ 2,634 $ 380,508 Ungraded Loan Exposure: Performing $ 137,904 $ — $ 43,380 $ 1,789 $ 16,640 $ — $ 2,659 $ 202,372 Nonperforming 1,625 — 588 — 45 — 2 2,260 Subtotal $ 139,529 $ — $ 43,968 $ 1,789 $ 16,685 $ — $ 2,661 $ 204,632 Total $ 232,167 $ 192,021 $ 54,078 $ 10,363 $ 54,369 $ 36,847 $ 5,295 $ 585,140 December 31, 2014 Loan Grade One-to Four-Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 68 $ — $ — $ — $ 2,511 $ 20 $ 2,599 2 — — — — — 100 — 100 3 63,065 14,356 5,978 690 5,154 483 454 90,180 4 58,948 37,349 10,424 2,327 9,027 2,917 419 121,411 5 44,445 90,397 10,486 3,048 21,024 6,399 179 175,978 6 5,714 21,232 882 574 2,451 429 1 31,283 7 7,400 14,139 1,568 — 5,404 555 — 29,066 $ 179,572 $ 177,541 $ 29,338 $ 6,639 $ 43,060 $ 13,394 $ 1,073 $ 450,617 Ungraded Loan Exposure: Performing $ 46,247 $ 1,736 $ 26,864 $ 1,119 $ 7,073 $ 5,741 $ 2,125 $ 90,905 Nonperforming 1,390 158 359 65 165 — 2 2,139 Subtotal $ 47,637 $ 1,894 $ 27,223 $ 1,184 $ 7,238 $ 5,741 $ 2,127 $ 93,044 Total $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 Delinquency Analysis of Loans by Class The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. June 30, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 3,723 $ 362 $ 2,302 $ 6,387 $ 225,780 $ 232,167 Commercial real estate 4,310 77 561 4,948 187,073 192,021 Home equity and lines of credit 493 — 1,088 1,581 52,497 54,078 Residential construction 119 — — 119 10,244 10,363 Other construction and land 904 6 669 1,579 52,790 54,369 Commercial — 9 — 9 36,838 36,847 Consumer 15 4 — 19 5,276 5,295 Total $ 9,564 $ 458 $ 4,620 $ 14,642 $ 570,498 $ 585,140 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 6,298 $ 448 $ 2,669 $ 9,415 $ 217,794 $ 227,209 Commercial real estate 2,136 909 1,006 4,051 175,384 179,435 Home equity and lines of credit 557 528 759 1,844 54,717 56,561 Residential construction — — 65 65 7,758 7,823 Other construction and land 1,530 964 473 2,967 47,331 50,298 Commercial — 22 — 22 19,113 19,135 Consumer 247 4 1 252 2,948 3,200 Total $ 10,768 $ 2,875 $ 4,973 $ 18,616 $ 525,045 $ 543,661 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of June 30, 2015 and December 31, 2014. June 30, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 5,337 $ 5,379 $ — $ 5,943 $ 6,096 $ — Commercial real estate 9,514 11,096 — 14,231 16,515 — Home equity and lines of credit 713 828 — 1,537 1,912 — Residential construction — — — — — — Other construction and land 1,236 1,683 — 1,901 2,579 — Commercial — — — — — — $ 16,800 $ 18,986 $ — $ 23,612 $ 27,102 $ — Loans with a valuation allowance One-to four-family residential $ 2,182 $ 2,182 $ 437 $ 3,969 $ 4,028 $ 719 Commercial real estate 3,181 3,181 156 3,597 3,745 235 Home equity and lines of credit 352 510 67 149 149 14 Residential construction — — — — — — Other construction and land 1,003 1,003 92 2,010 2,010 705 Commercial 324 323 39 328 328 3 $ 7,042 $ 7,199 $ 791 $ 10,053 $ 10,260 $ 1,676 Total One-to four-family residential $ 7,519 $ 7,561 $ 437 $ 9,912 $ 10,124 $ 719 Commercial real estate 12,695 14,277 156 17,828 20,260 235 Home equity and lines of credit 1,065 1,338 67 1,686 2,061 14 Residential construction — — — — — — Other construction and land 2,239 2,686 92 3,911 4,589 705 Commercial 324 323 39 328 328 3 $ 23,842 $ 26,185 $ 791 $ 33,665 $ 37,362 $ 1,676 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 5,598 $ 45 $ 5,839 $ 39 $ 5,607 $ 87 $ 5,400 $ 83 Commercial real estate 9,536 114 15,059 137 9,555 214 14,293 238 Home equity and lines of credit 713 — 1,200 12 714 1 1,126 24 Residential construction — — — — — — — — Other construction and land 1,239 8 5,795 57 1,241 18 6,169 115 Commercial — — 18 — — — 19 — $ 17,086 $ 167 $ 27,911 $ 245 $ 17,117 $ 320 $ 27,007 $ 460 Loans with a valuation allowance One-to four-family residential $ 2,190 $ 22 $ 4,865 $ 54 $ 2,198 $ 44 $ 5,215 $ 116 Commercial real estate 3,186 35 2,573 25 3,196 69 2,790 58 Home equity and lines of credit 431 1 229 2 431 2 303 6 Residential construction — — 1,921 — — — 1,932 — Other construction and land 1,009 10 336 24 1,014 21 338 48 Commercial 326 5 — — 326 10 — — $ 7,142 $ 73 $ 9,924 $ 105 $ 7,165 $ 146 $ 10,578 $ 228 Total One-to four-family residential $ 7,788 $ 67 $ 10,704 $ 93 $ 7,805 $ 131 $ 10,615 $ 199 Commercial real estate 12,722 149 17,632 162 12,751 283 17,083 296 Home equity and lines of credit 1,144 1 1,429 14 1,145 3 1,429 30 Residential construction — — 1,921 — — — 1,932 — Other construction and land 2,248 18 6,131 81 2,255 39 6,507 163 Commercial 326 5 18 — 326 10 19 — $ 24,228 $ 240 $ 37,835 $ 350 $ 24,282 $ 466 $ 37,585 $ 688 Nonperforming Loans The following table summarizes the balances of nonperforming loans as of June 30, 2015 and December 31, 2014. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. June 30, 2015 December 31, 2014 (Dollars in thousands) One-to four-family residential $ 4,602 $ 5,661 Commercial real estate 5,602 7,011 Home equity loans and lines of credit 1,086 1,347 Residential construction — 65 Other construction and land 995 2,679 Commercial 62 15 Consumer 2 2 Non-performing loans $ 12,349 $ 16,780 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: June 30, 2015 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 4,246 $ 372 $ 4,618 Commercial real estate 7,550 5,165 12,715 Home equity and lines of credit 130 183 313 Residential construction — — — Other construction and land 1,430 491 1,921 Commercial 323 14 337 $ 13,679 $ 6,225 $ 19,904 December 31, 2014 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 5,760 $ 715 $ 6,475 Commercial real estate 10,710 3,797 14,507 Home equity and lines of credit 443 — 443 Residential construction — — — Other construction and land 1,519 672 2,191 Commercial 328 16 344 $ 18,760 $ 5,200 $ 23,960 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate — $ — $ — 1 $ 1,988 $ 1,693 — $ — $ — 1 $ 1,988 $ 1,693 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Below market interest rate: One-to four-family residential 1 $ 218 $ 161 2 $ 409 $ 326 Home equity loans and lines of credit — — — 1 50 40 1 $ 218 $ 161 3 $ 459 $ 366 Extended payment terms: Other construction and land 1 $ 666 $ 556 2 $ 720 $ 596 Commercial real estate 3 4,451 3,039 7 6,770 5,332 Commercial — — — 1 18 12 4 $ 5,117 $ 3,595 10 $ 7,508 $ 5,940 The following table summarizes TDRs that defaulted during the three and six month periods ended June 30, 2014 and which were modified as TDRs within the previous 12 months. There were no TDRs that defaulted during the three or six month periods ending June 30, 2015 and which were modified as TDRs within the previous 12 months. Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) Below market interest rate: One-to-four family residential 1 $ 135 1 $ 135 Home equity and lines of credit — — — — Other construction and land — — — — 1 $ 135 1 $ 135 Extended payment terms: Commercial real estate 1 $ 215 1 $ 215

REAL ESTATE OWNED

REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2015
Banking and Thrift [Abstract]
REAL ESTATE OWNED	NOTE 6. REAL ESTATE OWNED The following tables summarize real estate owned and changes in the valuation allowance for real estate owned as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014. June 30, December 31, (Dollars in thousands) 2015 2014 Real estate owned, gross $ 6,268 $ 6,185 Less: Valuation allowance 1,558 1,760 Real estate owned, net $ 4,710 $ 4,425 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Valuation allowance, beginning $ 1,606 $ 5,119 $ 1,760 $ 5,560 Provision charged to expense 23 462 91 1,097 Reduction due to disposal (71 ) (2,920 ) (293 ) (3,996 ) Valuation allowance, ending $ 1,558 $ 2,661 $ 1,558 $ 2,661 As of June 30, 2015, the Company had $2.7 million in loans secured by residential real estate properties for which formal foreclosure proceedings were in process. As of June 30, 2015, the Company had $0.7 million of residential real estate properties included in real estate owned.

LOAN SERVICING

LOAN SERVICING	6 Months Ended
	Jun. 30, 2015
Transfers and Servicing [Abstract]
LOAN SERVICING	NOTE 7. LOAN SERVICING Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others is detailed below. June 30, 2015 December 31, 2014 (Dollars in thousands) $ 245,209 $ 246,348 The following summarizes the activity in the balance of loan servicing rights for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,232 $ 2,051 $ 2,187 $ 1,883 Capitalization from loans sold 83 162 216 210 Fair value adjustment (157 ) (124 ) (245 ) (4 ) Loan servicing rights, end of period $ 2,158 $ 2,089 $ 2,158 $ 2,089 The Bank held custodial escrow deposits of $1.4 million and $0.6 million for loan servicing accounts at June 30, 2015 and December 31, 2014, respectively.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2015
Banking and Thrift [Abstract]
DEPOSITS	NOTE 8. DEPOSITS The following table summarizes deposit balances and interest expense by type of deposit as of and for the six months ended June 30, 2015 and 2014 and the year ended December 31, 2014. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2015 2014 2014 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 95,604 $ — $ 80,959 $ — $ 86,110 $ — Interest-bearing demand 98,447 76 89,912 63 92,877 149 Money Market 171,475 294 187,268 499 178,320 983 Savings 30,043 16 26,874 18 27,591 36 Time Deposits 296,968 1,972 327,563 2,109 318,219 4,193 $ 692,537 $ 2,358 $ 712,576 $ 2,689 $ 703,117 $ 5,361

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
BORROWINGS	NOTE 9. BORROWINGS The scheduled maturities and respective weighted average rates of outstanding FHLB advances, are as follows for the dates indicated: June 30, 2015 December 31, 2014 Year of Maturity Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in thousands) 2015 $ 57,000 0.27 % $ 20,000 0.33 % 2016 40,000 0.64 % 10,000 0.84 % 2017 8,000 1.23 % 5,000 1.38 % 2018 2,000 1.25 % — — 2019 12,500 1.82 % 10,000 1.83 % 2020 1,000 1.78 % 15,000 2.79 % $ 120,500 0.64 % $ 60,000 1.37 % During the second quarter of 2015, the Company prepaid a $15.0 million FHLB advance and incurred a prepayment penalty of $1.8 million. The advance, which carried an interest rate equal to 90-day LIBOR plus 2.56% and reset quarterly, was replaced with a $15.0 million three month fixed rate advance at a rate of 0.23%.

JUNIOR SUBORDINATED DEBT

JUNIOR SUBORDINATED DEBT	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
JUNIOR SUBORDINATED DEBT	NOTE 10. JUNIOR SUBORDINATED DEBT The Company issued $14.4 million of junior subordinated notes to its wholly owned subsidiary, Macon Capital Trust I, to fully and unconditionally guarantee the trust preferred securities issued by the Trust. These notes qualify as Tier I capital for the Company. The notes accrue and pay interest quarterly at a rate per annum, reset quarterly, equal to 90-day LIBOR plus 2.80% (3.08% at June 30, 2015). The notes mature on March 30, 2034. The Company has the right to redeem the notes, in whole or in part, on or after March 30, 2009 at a price equal to 100% of the principal amount plus accrued and unpaid interest. In addition, the Company may redeem the notes in whole (but not in part) upon the occurrence of a capital disqualification event, an investment company event, or a tax event at a specified redemption price as defined in the indenture. The Company also may, at its option, defer the payment of interest on the notes for a period up to 20 consecutive quarters, provided that interest will also accrue on the deferred payments of interest. The Company had previously deferred interest on the notes from December 31, 2010 to December 30, 2014. As of June 30, 2015, the Company was current on all interest payments due.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11. INCOME TAXES During the second quarter of 2015, the Company completed an analysis of all positive and negative evidence in assessing the need to maintain the valuation allowance against its net deferred tax asset. As a result of this analysis, the Company determined that significant positive evidence existed that would support the reversal of $17.6 million of the valuation allowance including the following: · A pattern of sustained profitability, excluding non-recurring items, since the first quarter of 2014; · A 3 year cumulative profit; · Forecasted earnings sufficient to utilize all remaining net operating losses prior to expiration beginning in 2025 for North Carolina and 2032 for Federal; · Significant improvements in asset quality; · Resolution of all remaining regulatory orders; and · A strong capital position enabling future earnings investments. The remaining valuation allowance of $1.3 million is expected to be reversed through a reduction in the provision for income taxes during the third and fourth quarters of 2015 in accordance with the intra-period tax allocation rules under GAAP. Remaining in accumulated other comprehensive income is $0.8 million in valuation allowance related to net deferred tax assets on investment securities. This valuation allowance will be recognized as tax expense on a security-by-security basis upon the sale or maturity of the individual securities. The tax expense is expected to be recognized over the remaining life of the securities of approximately 4.5 years. The components of net deferred taxes as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 3,554 $ 4,235 Deferred compensation and post employment benefits 3,523 3,514 Non-accrual interest 264 202 Valuation reserve for other real estate 586 673 North Carolina NOL carryover 1,093 1,404 Federal NOL carryover 12,106 12,392 Unrealized losses on securities 814 867 Other 506 393 Gross deferred tax assets 22,446 23,680 Less: valuation allowance (1,300 ) (19,810 ) Total deferred tax assets 21,146 3,870 Deferred tax liabilities: Fixed assets 302 461 Loan servicing rights 811 813 Deferred loan costs 534 413 Prepaid expenses 148 94 Total deferred tax liabilities 1,795 1,781 Net deferred tax asset $ 19,351 $ 2,089 On July 23, 2013, North Carolina Governor Pat McCrory signed a major tax reform bill into law that lowered the North Carolina corporate income tax rate among other things. Specifically, the corporate income tax rate was reduced from 6.9% to 6% in 2014 and to 5% in 2015. The rate was to be further reduced to 4% during the 2016 tax year and to 3% for post-2016 tax years provided that specified revenue growth targets are reached. Based on state income tax revenues announced by the North Carolina Governor’s Office on July 29, 2015, the $20.2 billion revenue target for the fiscal year ended June 30, 2015 was met, resulting in a reduction of the state income tax rate to 4% effective January 1, 2016. As a result, the Company treated this announcement as a subsequent event and recorded a $0.4 million reduction in the net deferred tax asset as of June 30, 2015.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 12. EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: (Dollars in thousands, except per share amounts) For the Three Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 Numerator: Net income $ 17,105 $ 19,720 Denominator: Weighted-average common shares outstanding - basic 6,546,375 6,546,375 Effect of dilutive shares — — Weighted-average common shares outstanding - diluted 6,546,375 6,546,375 Earnings per share - basic $ 2.61 $ 3.01 Earnings per share - diluted $ 2.61 $ 3.01

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of accumulated other comprehensive income and changes in those components as of and for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on Investment Securities Total (Dollars in thousands) Balance, beginning of period $ 910 $ (1,135 ) $ (139 ) $ (364 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — (675 ) (675 ) Change in net unrealized holding losses on securities available for sale (2,172 ) — — (2,172 ) Reclassification adjustment for net securities gains realized in net income (123 ) — — (123 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 493 — 493 Income tax benefit 873 (198 ) — 675 Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ (2,166 ) Three Months Ended June 30, 2014 (Dollars in thousands) Balance, beginning of period $ (2,052 ) $ (1,257 ) $ (2,049 ) $ (5,358 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 782 782 Change in unrealized holding gains on securities available for sale 2,314 — — 2,314 Reclassification adjustment for net securities gains realized in net income (317 ) — — (317 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 50 — 50 Income tax benefit (763 ) (19 ) — (782 ) Balance, end of period $ (818 ) $ (1,226 ) $ (1,267 ) $ (3,311 ) Six Months Ended June 30, 2015 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on Investment Securities Total (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ (2,269 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 54 54 Change in net unrealized holding losses on securities available for sale (152 ) — — (152 ) Reclassification adjustment for net securities gains realized in net income (287 ) — — (287 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 542 — 542 Income tax benefit 163 (217 ) — (54 ) Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ (2,166 ) Six Months Ended June 30, 2014 (Dollars in thousands) Balance, beginning of period $ (3,374 ) $ (1,242 ) $ (2,860 ) $ (7,476 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 1,593 1,593 Change in unrealized holding gains on securities available for sale 4,444 — — 4,444 Reclassification adjustment for net securities gains realized in net income (379 ) — — (379 ) Transfer of net unrealized loss from available for sale to held to maturity 74 (74 ) — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 100 — 100 Income tax benefit (1,583 ) (10 ) — (1,593 ) Balance, end of period $ (818 ) $ (1,226 ) $ (1,267 ) $ (3,311 ) The following table shows the line items in the Consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) (Dollars in thousands) Gain on sale of investments, net $ 123 $ 317 $ 287 $ 379 Tax effect — — — — Impact, net of tax 123 317 287 379 Interest income - taxable securities 493 50 542 100 Tax effect — — — — Impact, net of tax 493 50 542 100 Total reclassifications, net of tax $ 616 $ 367 $ 829 $ 479

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 14. COMMITMENTS AND CONTINGENCIES To accommodate the financial needs of its customers, the Company makes commitments under various terms to lend funds. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held includes first and second mortgages on one-to-four family dwellings, accounts receivable, inventory, and commercial real estate. Certain lines of credit are unsecured. The following summarizes the Company’s approximate commitments to extend credit: June 30, 2015 (Dollars in thousands) Lines of credit $ 70,071 Standby letters of credit 654 $ 70,725 As of June 30, 2015, the Company had outstanding commitments to originate loans as follows: June 30, 2015 Amount Range of Rates (Dollar in thousands) Fixed $ 8,746 2.99% to 6.00% Variable 16,397 3.25% to 6.49% $ 25,143 The allowance for unfunded commitments was $0.1 million at June 30, 2015 and December 31, 2014. The Company is exposed to loss as a result of its obligation for representations and warranties on loans sold to Fannie Mae and maintained a reserve of $0.3 million as of June 30, 2015 and December 31, 2014. In the normal course of business, the Company is periodically involved in litigation. In the opinion of the Company’s management, none of this litigation is expected to have a material adverse effect on the accompanying consolidated financial statements.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	NOTE 15. FAIR VALUE DISCLOSURES We use fair value measurements when recording and disclosing certain financial assets and liabilities. Securities available-for-sale, loan servicing rights and mortgage derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and real estate owned. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which is developed, based on market data we have obtained from independent sources. Unobservable inputs reflect our estimate of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: · Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. · Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. · Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are made at a specific point of time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the Company’s entire holdings of a particular financial instrument. Because no active 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, current interest rates and prepayment trends, 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 any of these assumptions used in calculating fair value also would affect significantly the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Securities We obtain fair values for debt securities from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. Loan Servicing Rights Loan servicing rights are carried at fair value as determined by a third party valuation firm. The valuation model utilizes a discounted cash flow analysis using discount rates and prepayment speed assumptions used by market participants. The Company classifies loan servicing rights fair value measurements as Level 3. Derivative Instruments Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. The Company classifies these instruments as Level 3. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. Loans held for sale carried at fair value are classified as Level 2. Impaired Loans Impaired loans are carried at the lower of recorded investment or fair value. The fair value of collateral dependent impaired loans is estimated using the value of the collateral less selling costs if repayment is expected from liquidation of the collateral. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrower’s business. Impaired loans carried at fair value are classified as Level 3. Impaired loans measured using the present value of expected future cash flows are not deemed to be measured at fair value. Real Estate Owned Real estate owned, obtained in partial or total satisfaction of a loan is recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent, state certified appraisers. Like impaired loans, appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. Real estate owned carried at fair value is classified as Level 3. In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entity’s assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Following is a description of valuation methodologies used for the disclosure of the fair value of financial instruments not carried at fair value: Cash and Cash Equivalents The carrying amount of such instruments is deemed to be a reasonable estimate of fair value. Loans The fair value of variable rate performing loans is based on carrying values adjusted for credit risk. The fair value of fixed rate performing loans is estimated using discounted cash flow analyses, utilizing interest rates currently being offered for loans with similar terms, adjusted for credit risk. The fair value of nonperforming loans is based on their carrying values less any specific reserve. A prepayment assumption is used to estimate the portion of loans that will be repaid prior to their scheduled maturity. No adjustment has been made for the illiquidity in the market for loans as there is no active market for many of the Company’s loans on which to reasonably base this estimate. Bank Owned Life Insurance Fair values approximate net cash surrender values. Other Investments, at cost No ready market exists for this stock and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, the carrying amount is deemed to be a reasonable estimate of fair value. Deposits The fair values disclosed for demand deposits are equal to the amounts payable on demand at the reporting date. The fair value of certificates of deposit are estimated by discounting the amounts payable at the certificate rates using the rates currently offered for deposits of similar remaining maturities. Advances from the FHLB The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Notes The carrying amount approximates fair value because the debt is variable rate tied to LIBOR. Accrued Interest Receivable and Payable Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. Loan Commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: June 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ — $ 39,993 $ — $ 39,993 Municipal securities — 32,336 — 32,336 Mortgage-backed securities — 165,300 — 165,300 U.S. Treasury securities 1,518 — — 1,518 Mutual funds 594 — — 594 2,112 237,629 — 239,741 Loan servicing rights — — 2,158 2,158 Forward sales commitments — — 5 5 Interest rate lock commitments — — 13 13 Total assets $ 2,112 $ 237,629 $ 2,176 $ 241,917 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ — $ 39,482 $ — $ 39,482 Municipal securities — 25,558 — 25,558 Mortgage-backed securities — 152,718 — 152,718 U.S. Treasury securities 1,510 — — 1,510 Mutual funds 591 — — 591 2,101 217,758 — 219,859 Loan servicing rights — — 2,187 2,187 Forward sales commitments — — 9 9 Interest rate lock commitments — — 52 52 Total assets $ 2,101 $ 217,758 $ 2,248 $ 222,107 The following table presents the changes in assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Balance at beginning of period $ 2,368 $ 2,071 $ 2,248 $ 1,888 Loan servicing right activity, included in servicing income, net Capitalization from loans sold 83 162 216 210 Fair value adjustment (157 ) (124 ) (245 ) (4 ) Mortgage derivative gains included in Other income (118 ) 47 (43 ) 62 Balance at end of period $ 2,176 $ 2,156 $ 2,176 $ 2,156 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The table below presents information about certain assets and liabilities measured at fair value on a nonrecurring basis. There were no loans held for sale carried at fair value at either June 30, 2015 or December 31, 2014. June 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 5,337 $ 5,337 Commercial real estate — — 9,514 9,514 Home equity loans and lines of credit — — 904 904 Other construction and land — — 1,236 1,236 Real estate owned: One-to four family residential — — 671 671 Commercial real estate — — 1,039 1,039 Other construction and land — — 3,000 3,000 Total assets $ — $ — $ 21,701 $ 21,701 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 6,407 $ 6,407 Commercial real estate — — 14,551 14,551 Home equity loans and lines of credit — — 1,456 1,456 Other construction and land — — 2,227 2,227 Real estate owned: One-to four family residential — — 220 220 Commercial real estate — — 774 774 Other construction and land — — 3,431 3,431 Total assets $ — $ — $ 29,066 $ 29,066 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2015 or December 31, 2014. Impaired loans totaling $6.8 million at June 30, 2015 and $9.0 million at December 31, 2014, were measured using the present value of expected future cash flows. These impaired loans were not deemed to be measured at fair value on a nonrecurring basis. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2015. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Loan servicing rights Discounted Cash Flows Prepayment speed 8 – 25% Discount rate 12% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 107% The approximate carrying and estimated fair value of financial instruments are summarized below: Fair Value Measurements at June 30, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 28,995 $ 28,995 $ 28,995 $ — $ — Securities available for sale 239,741 239,741 2,112 237,629 — Securities held to maturity 39,777 40,534 — 40,534 — Loans held for sale 9,635 10,293 — 10,293 — Loans receivable, net 582,466 588,203 — — 588,203 Other investments, at cost 7,432 7,432 — 7,432 — Interest receivable 3,236 3,236 — 3,236 — Bank owned life insurance 20,638 20,638 — 20,638 — Loan servicing rights 2,158 2,158 — — 2,158 Forward sales commitments 5 5 — — 5 Interest rate lock commitments 13 13 — — 13 Liabilities: Demand deposits $ 395,569 $ 395,569 $ — $ 395,569 $ — Time deposits 296,968 300,083 — — 300,083 Federal Home Loan Bank advances 120,500 122,997 — 122,997 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 216 216 — 216 — Fair Value Measurements at December 31, 2014 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 58,982 $ 58,982 $ 58,982 $ — $ — Securities available for sale 219,859 219,859 2,101 217,758 — Securities held to maturity 29,285 30,890 — 30,890 — Loans held for sale 10,761 11,501 — 11,501 — Loans receivable, net 529,407 546,450 — — 546,450 Other investments, at cost 4,908 4,908 — 4,908 — Interest receivable 2,925 2,925 — 2,925 — Bank owned life insurance 20,417 20,417 — 20,417 — Loan servicing rights 2,187 2,187 — — 2,187 Forward sales commitments 9 9 — — 9 Interest rate lock commitments 52 52 — — 52 Liabilities: Demand deposits $ 384,898 $ 384,898 $ — $ 384,898 $ — Time deposits 318,219 321,491 — — 321,491 Federal Home Loan Bank advances 60,000 62,108 — 62,108 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 323 323 — 323 —

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2015
Banking and Thrift [Abstract]
REGULATORY MATTERS	NOTE 16. REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by their respective federal and state banking regulators. Failure to satisfy minimum capital requirements may result in certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to average assets (as defined). In July 2013, federal bank regulatory agencies issued final rules to revise their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (“Basel III”). On January 1, 2015, the Basel III rules became effective and include transition provisions which implement certain portions of the rules through January 1, 2019. The rule also includes changes in what constitutes regulatory capital, some of which are subject to a transition period. These changes include the phasing-out of certain instruments as qualifying capital. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of common stock are required to be deducted from capital, subject to a transition period. Finally, common equity Tier 1 capital includes accumulated other comprehensive income (which includes all unrealized gains and losses on available for sale debt and equity securities), subject to a transition period and a one-time opt-out election. The Bank elected to opt-out of this provision. As such, accumulated comprehensive income is not included in the Bank’s Tier 1 capital. The tables below summarize capital ratios and related information in accordance with Basel III as measured at June 30, 2015 and pre-existing rules at December 31, 2014. Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital Adequacy Purposes To Be Well-Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015: Tier 1 Leverage Capital $ 114,336 12.47 % $ 36,618 > $ 45,772 > Common Equity Tier 1 Capital $ 114,336 18.76 % $ 27,433 > $ 39,625 > Tier 1 Risk-based Capital $ 114,336 18.76 % $ 36,577 >6 $ 48,769 > Total Risk-based Capital $ 122,063 20.02 % $ 48,769 > $ 60,962 > As of December 31, 2014: Tier 1 Leverage Capital $ 105,556 11.91 % $ 35,440 > $ 44,300 > Tier 1 Risk-based Capital $ 105,556 19.89 % $ 21,231 > $ 31,847 > Total Risk-based Capital $ 112,246 21.15 % $ 42,462 > $ 53,078 > Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio As of June 30, 2015: Tier I Leverage Capital $ 132,570 14.46 % $ 36,640 > Common Equity Tier 1 Capital $ 125,074 20.45 % $ 27,458 > Tier I Risk-based Capital $ 132,570 21.70 % $ 36,611 >6 Total Risk Based Capital $ 140,308 22.97 % $ 48,814 > As of December 31, 2014: Tier I Leverage Capital $ 123,377 13.94 % $ 35,398 > Tier I Risk-based Capital $ 123,377 23.24 % $ 21,236 > Total Risk Based Capital $ 130,067 24.50 % $ 42,472 > The Company and the Bank are no longer subject to any regulatory orders.

ORGANIZATION AND BASIS OF PRE24

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2015
Summary Of Significant Accounting Policies Policies
Organization	Organization Entegra Financial Corp. (the “Company”) was incorporated on May 31, 2011 and became the holding company for Macon Bank, Inc. (the “Bank”) on September 30, 2014 upon the completion of Macon Bancorp’s merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Company’s primary operation is its investment in the Bank. The Company also owns 100% of the common stock of Macon Capital Trust I (the “Trust”), a Delaware statutory trust formed in 2003 to facilitate the issuance of trust preferred securities. The Bank is a North Carolina state-chartered savings bank and has a wholly owned subsidiary, Macon Services, Inc., which owned a real estate investment property as of June 30, 2015. The consolidated financials are presented in these financial statements. The Bank operates as a community-focused retail bank, originating primarily real estate based mortgage, consumer and commercial loans and accepting deposits from consumers and small businesses.
Estimates	Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated.
Reclassification	Reclassification Certain amounts in the prior years’ financial statements may have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition as previously reported.
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the SEC on March 30, 2015. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period.
Subsequent Events	Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet including the estimates inherent in the process of preparing financial statements. Unrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. The Company has reviewed events occurring through the issuance date of the Consolidated Financial Statements and no subsequent events have occurred requiring accrual or disclosure in these financial statements other than those included in this Quarterly Report on Form 10-Q.
Recently Issued Accounting Standards	Recent Accounting Standards Updates In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to real estate owned. In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to REO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying its interest in the real estate collateral to the creditor to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. As an emerging growth company, the amendments will be effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. For non-emerging growth companies, the amendments are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2014. Early implementation of the guidance is permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company has adopted the amendments and the related disclosures are included in Note 6. The amendments did not have a material effect on the Company’s financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. As an emerging growth company, the amendments will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2017. For non-emerging growth companies, the amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. As an emerging growth company, the guidance will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. For non-emerging growth companies, the guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

STOCK CONVERSION AND CHANGE I25

STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Conversion And Change In Corporate Form Tables
Proceeds From Common Stock Offering Summary	Common Stock Offering Summary (Dollars in thousands) Gross proceeds $ 65,464 Issuance costs (1,813 ) Net proceeds $ 63,651 Contributed to bank subsidiary $ 44,581 Retained by the Company 19,070 $ 63,651

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Investment Securities Tables
Schedule of investment securities available for sale	The amortized cost and estimated fair values of securities available for sale as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,814 $ 231 $ (52 ) $ 39,993 Municipal securities 32,453 167 (284 ) 32,336 Mortgage-backed securities 166,199 443 (1,342 ) 165,300 U.S. Treasury securities 1,500 18 — 1,518 Mutual funds 596 — (2 ) 594 $ 240,562 $ 859 $ (1,680 ) $ 239,741 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,540 $ 65 $ (123 ) $ 39,482 Municipal securities 25,483 225 (150 ) 25,558 Mortgage-backed securities 153,128 643 (1,053 ) 152,718 U.S. Treasury securities 1,500 10 — 1,510 Mutual funds 590 1 — 591 $ 220,241 $ 944 $ (1,326 ) $ 219,859
Schedule of investment securities held to maturity	The amortized cost and estimated fair values of securities held to maturity (“HTM”) as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 21,429 $ 957 $ (42 ) $ 22,344 Municipal securities 12,508 142 (232 ) 12,418 Mortgage-backed securities 2,890 — (63 ) 2,827 Corporate debt securities 2,950 — (5 ) 2,945 $ 39,777 $ 1,099 $ (342 ) $ 40,534 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 23,193 $ 1,420 $ (5 ) $ 24,608 Municipal securities 4,392 190 — 4,582 Trust preferred securities 1,000 — — 1,000 Corporate debt securities 700 — — 700 $ 29,285 $ 1,610 $ (5 ) $ 30,890
Transfer of Investment Securities from Available for Sale to Held to Maturity	During the six months ended June 30, 2014, the Bank transferred the following investment securities from available for sale to held to maturity: At Date of Transfer During the Six Months Ended June 30, 2014 (Dollars in thousands) Book value $ 4,473 Market value 4,399 Unrealized loss $ 74
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income	During the six months ended June 30, 2014, the Bank transferred the following investment securities from available for sale to held to maturity: At Date of Transfer During the Six Months Ended June 30, 2014 (Dollars in thousands) Book value $ 4,473 Market value 4,399 Unrealized loss $ 74
Securities Gross Unrealized Losses Position	Information pertaining to securities with gross unrealized losses at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2015 Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,685 $ 42 $ — $ — $ 5,685 $ 42 Municipal securities 8,753 232 — — 8,753 232 Mortgage-backed securities 2,828 63 — — 2,828 63 Corporate debt securities 745 5 — — 745 5 $ 18,011 $ 342 $ — $ — $ 18,011 $ 342 Available for Sale: U.S. government agencies $ 6,029 $ 9 $ 2,957 $ 43 $ 8,986 $ 52 Municipal securities 18,915 262 1,405 22 20,320 284 Mortgage-backed securities 79,607 788 21,952 554 101,559 1,342 Mutual funds 596 2 — — 596 2 $ 105,147 $ 1,061 $ 26,314 $ 619 $ 131,461 $ 1,680 December 31, 2014 Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 1,995 $ 5 $ — $ — $ 1,995 $ 5 $ 1,995 $ 5 $ — $ — $ 1,995 $ 5 Available for Sale: U.S. government agencies $ 14,472 $ 15 $ 7,893 $ 108 $ 22,365 $ 123 Municipal securities 4,306 49 8,409 101 12,715 150 Mortgage-backed securities 38,563 217 46,204 836 84,767 1,053 $ 57,341 $ 281 $ 62,506 $ 1,045 $ 119,847 $ 1,326 Information pertaining to the number of securities with unrealized losses is detailed in the table below. The Company believes all unrealized losses as of June 30, 2015 and December 31, 2014 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. June 30, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 6 1 7 Municipal securities 57 3 60 Mortgage-backed securities 49 14 63 Corporate debt securities 1 — 1 113 18 131 December 31, 2014 Less Than 12 Months More Than 12 Months Total U.S. government agencies 11 3 14 Municipal securities 9 19 28 Mortgage-backed securities 26 27 53 46 49 95
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses	For the three and six months ended June 30, 2015 and 2014 the Company had proceeds from sales of securities available for sale and their corresponding gross realized gains and losses as detailed below: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Gross proceeds $ 12,010 $ 8,503 $ 25,707 $ 15,425 Gross realized gains 123 317 307 378 Gross realized losses — — 20 —
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity	The amortized cost and estimated fair value of investments in debt securities at June 30, 2015, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available for Sale Amortized Cost Fair Value (Dollars in thousands) Over 1 year through 5 years $ 31,828 $ 31,994 After 5 years through 10 years 21,550 21,489 Over 10 years 20,985 20,958 74,363 74,441 Mortgage-backed securities 166,199 165,300 Total $ 240,562 $ 239,741 Held to Maturity Amortized Cost Fair Value (Dollars in thousands) After 5 years through 10 years $ 8,886 $ 8,848 Over 10 years 28,001 28,859 36,887 37,707 Mortgage-backed securities 2,890 2,827 Total $ 39,777 $ 40,534

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Loans Receivable Tables
Loan Receivable	Loans receivable as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 December 31, 2014 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 232,167 $ 227,209 Commercial real estate 192,021 179,435 Home equity loans and lines of credit 54,078 56,561 Residential construction 10,363 7,823 Other construction and land 54,369 50,298 Total real estate loans 542,998 521,326 Commercial and industrial 36,847 19,135 Consumer 5,295 3,200 Total commercial and consumer 42,142 22,335 Loans receivable, gross 585,140 543,661 Less: Net deferred loan fees (1,585 ) (1,695 ) Unamortized premium 410 — Unamortized discount (1,499 ) (1,487 ) Loans receivable, net $ 582,466 $ 540,479
Activity Related to Discount on Purchased Loans	The following tables present the activity related to the discount on purchased loans for the three and six month periods ended June 30, 2015 and 2014: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Discount on purchased loans, beginning of period $ 1,587 $ 1,974 $ 1,487 $ — Additional discount for new purchases — — 484 2,607 Accretion (88 ) (92 ) (177 ) (187 ) Discount applied to charge-offs — — (295 ) — Interest income recognized for repayments and restructurings — (217 ) — (755 ) Discount on purchased loans, end of period $ 1,499 $ 1,665 $ 1,499 $ 1,665

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2015
Allowance For Loan Losses Tables
Changes in Allowance for Loan Losses	The following tables present, by portfolio segment, the changes in the allowance for loan losses: Three Months Ended June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,773 $ 2,363 $ 1,168 $ 304 $ 1,990 $ 596 $ 417 $ 9,611 Provision (507 ) 184 170 38 (304 ) 82 337 — Charge-offs 19 15 260 — 67 1 7 369 Recoveries 13 75 2 2 47 3 67 209 Ending balance $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Three Months Ended June 30, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,265 $ 2,851 $ 1,453 $ 501 $ 3,256 $ 340 $ 290 $ 11,956 Provision (20 ) 149 (136 ) (14 ) 125 (61 ) (37 ) 6 Charge-offs 85 205 188 — 132 125 18 753 Recoveries 22 51 17 — 8 150 104 352 Ending balance $ 3,202 $ 2,450 $ 1,488 $ 524 $ 3,712 $ 259 $ 321 $ 11,561 Six Months Ended June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Provision (607 ) (232 ) 91 (168 ) (1,350 ) 363 403 (1,500 ) Charge-offs 238 45 369 — 86 1 20 759 Recoveries 122 167 25 2 166 10 146 638 Ending balance $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Six Months Ended June 30, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 Provision (18 ) 149 (137 ) (14 ) 130 (62 ) (37 ) 11 Charge-offs 516 1,998 331 — 475 125 63 3,508 Recoveries 23 335 34 — 86 155 174 807 Ending balance $ 3,202 $ 2,450 $ 1,488 $ 524 $ 3,712 $ 259 $ 321 $ 11,561
Investment in Loans by Portfolio Segment	The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: June 30, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 437 $ 156 $ 67 $ — $ 92 $ 39 $ — $ 791 Collectively evaluated for impairment 1,823 2,451 1,013 344 1,574 641 814 8,660 $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Loans Receivable Individually evaluated for impairment $ 7,519 $ 12,695 $ 1,065 $ — $ 2,239 $ 324 $ — $ 23,842 Collectively evaluated for impairment 224,648 179,326 53,013 10,363 52,130 36,523 5,295 561,298 $ 232,167 $ 192,021 $ 54,078 $ 10,363 $ 54,369 $ 36,847 $ 5,295 $ 585,140 December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 719 $ 235 $ 14 $ — $ 705 $ 3 $ — $ 1,676 Collectively evaluated for impairment 2,264 2,482 1,319 510 2,231 305 285 9,396 $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Loans Receivable Individually evaluated for impairment $ 9,912 $ 17,828 $ 1,686 $ — $ 3,911 $ 328 $ — $ 33,665 Collectively evaluated for impairment 217,297 161,607 54,875 7,823 46,387 18,807 3,200 509,996 $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661
Credit Risk Profile by Rating	The following tables present the recorded investment in gross loans by loan grade: June 30, 2015 Loan Grade One-to Four-Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 66 $ — $ — $ — $ 9,669 $ 11 $ 9,746 2 — — — — — 99 — 99 3 11,937 8,747 1,276 567 1,005 484 907 24,923 4 40,356 57,355 2,474 4,914 11,247 17,527 1,620 135,493 5 32,656 94,272 5,860 2,094 20,189 8,139 96 163,306 6 2,995 15,866 — 999 1,973 419 — 22,252 7 4,694 15,715 500 — 3,270 510 — 24,689 $ 92,638 $ 192,021 $ 10,110 $ 8,574 $ 37,684 $ 36,847 $ 2,634 $ 380,508 Ungraded Loan Exposure: Performing $ 137,904 $ — $ 43,380 $ 1,789 $ 16,640 $ — $ 2,659 $ 202,372 Nonperforming 1,625 — 588 — 45 — 2 2,260 Subtotal $ 139,529 $ — $ 43,968 $ 1,789 $ 16,685 $ — $ 2,661 $ 204,632 Total $ 232,167 $ 192,021 $ 54,078 $ 10,363 $ 54,369 $ 36,847 $ 5,295 $ 585,140 December 31, 2014 Loan Grade One-to Four-Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 68 $ — $ — $ — $ 2,511 $ 20 $ 2,599 2 — — — — — 100 — 100 3 63,065 14,356 5,978 690 5,154 483 454 90,180 4 58,948 37,349 10,424 2,327 9,027 2,917 419 121,411 5 44,445 90,397 10,486 3,048 21,024 6,399 179 175,978 6 5,714 21,232 882 574 2,451 429 1 31,283 7 7,400 14,139 1,568 — 5,404 555 — 29,066 $ 179,572 $ 177,541 $ 29,338 $ 6,639 $ 43,060 $ 13,394 $ 1,073 $ 450,617 Ungraded Loan Exposure: Performing $ 46,247 $ 1,736 $ 26,864 $ 1,119 $ 7,073 $ 5,741 $ 2,125 $ 90,905 Nonperforming 1,390 158 359 65 165 — 2 2,139 Subtotal $ 47,637 $ 1,894 $ 27,223 $ 1,184 $ 7,238 $ 5,741 $ 2,127 $ 93,044 Total $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661
Aging Analysis of Recorded Investment of Past-Due Financing Receivables	The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. June 30, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 3,723 $ 362 $ 2,302 $ 6,387 $ 225,780 $ 232,167 Commercial real estate 4,310 77 561 4,948 187,073 192,021 Home equity and lines of credit 493 — 1,088 1,581 52,497 54,078 Residential construction 119 — — 119 10,244 10,363 Other construction and land 904 6 669 1,579 52,790 54,369 Commercial — 9 — 9 36,838 36,847 Consumer 15 4 — 19 5,276 5,295 Total $ 9,564 $ 458 $ 4,620 $ 14,642 $ 570,498 $ 585,140 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 6,298 $ 448 $ 2,669 $ 9,415 $ 217,794 $ 227,209 Commercial real estate 2,136 909 1,006 4,051 175,384 179,435 Home equity and lines of credit 557 528 759 1,844 54,717 56,561 Residential construction — — 65 65 7,758 7,823 Other construction and land 1,530 964 473 2,967 47,331 50,298 Commercial — 22 — 22 19,113 19,135 Consumer 247 4 1 252 2,948 3,200 Total $ 10,768 $ 2,875 $ 4,973 $ 18,616 $ 525,045 $ 543,661
Summary of Average Impaired Loans	The following table presents investments in loans considered to be impaired and related information on those impaired loans as of June 30, 2015 and December 31, 2014. June 30, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 5,337 $ 5,379 $ — $ 5,943 $ 6,096 $ — Commercial real estate 9,514 11,096 — 14,231 16,515 — Home equity and lines of credit 713 828 — 1,537 1,912 — Residential construction — — — — — — Other construction and land 1,236 1,683 — 1,901 2,579 — Commercial — — — — — — $ 16,800 $ 18,986 $ — $ 23,612 $ 27,102 $ — Loans with a valuation allowance One-to four-family residential $ 2,182 $ 2,182 $ 437 $ 3,969 $ 4,028 $ 719 Commercial real estate 3,181 3,181 156 3,597 3,745 235 Home equity and lines of credit 352 510 67 149 149 14 Residential construction — — — — — — Other construction and land 1,003 1,003 92 2,010 2,010 705 Commercial 324 323 39 328 328 3 $ 7,042 $ 7,199 $ 791 $ 10,053 $ 10,260 $ 1,676 Total One-to four-family residential $ 7,519 $ 7,561 $ 437 $ 9,912 $ 10,124 $ 719 Commercial real estate 12,695 14,277 156 17,828 20,260 235 Home equity and lines of credit 1,065 1,338 67 1,686 2,061 14 Residential construction — — — — — — Other construction and land 2,239 2,686 92 3,911 4,589 705 Commercial 324 323 39 328 328 3 $ 23,842 $ 26,185 $ 791 $ 33,665 $ 37,362 $ 1,676 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 5,598 $ 45 $ 5,839 $ 39 $ 5,607 $ 87 $ 5,400 $ 83 Commercial real estate 9,536 114 15,059 137 9,555 214 14,293 238 Home equity and lines of credit 713 — 1,200 12 714 1 1,126 24 Residential construction — — — — — — — — Other construction and land 1,239 8 5,795 57 1,241 18 6,169 115 Commercial — — 18 — — — 19 — $ 17,086 $ 167 $ 27,911 $ 245 $ 17,117 $ 320 $ 27,007 $ 460 Loans with a valuation allowance One-to four-family residential $ 2,190 $ 22 $ 4,865 $ 54 $ 2,198 $ 44 $ 5,215 $ 116 Commercial real estate 3,186 35 2,573 25 3,196 69 2,790 58 Home equity and lines of credit 431 1 229 2 431 2 303 6 Residential construction — — 1,921 — — — 1,932 — Other construction and land 1,009 10 336 24 1,014 21 338 48 Commercial 326 5 — — 326 10 — — $ 7,142 $ 73 $ 9,924 $ 105 $ 7,165 $ 146 $ 10,578 $ 228 Total One-to four-family residential $ 7,788 $ 67 $ 10,704 $ 93 $ 7,805 $ 131 $ 10,615 $ 199 Commercial real estate 12,722 149 17,632 162 12,751 283 17,083 296 Home equity and lines of credit 1,144 1 1,429 14 1,145 3 1,429 30 Residential construction — — 1,921 — — — 1,932 — Other construction and land 2,248 18 6,131 81 2,255 39 6,507 163 Commercial 326 5 18 — 326 10 19 — $ 24,228 $ 240 $ 37,835 $ 350 $ 24,282 $ 466 $ 37,585 $ 688
Financing Receivables on Nonaccrual Status	The following table summarizes the balances of nonperforming loans as of June 30, 2015 and December 31, 2014. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. June 30, 2015 December 31, 2014 (Dollars in thousands) One-to four-family residential $ 4,602 $ 5,661 Commercial real estate 5,602 7,011 Home equity loans and lines of credit 1,086 1,347 Residential construction — 65 Other construction and land 995 2,679 Commercial 62 15 Consumer 2 2 Non-performing loans $ 12,349 $ 16,780
Summary of TDR Loans	The following tables summarize TDR loans as of the dates indicated: June 30, 2015 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 4,246 $ 372 $ 4,618 Commercial real estate 7,550 5,165 12,715 Home equity and lines of credit 130 183 313 Residential construction — — — Other construction and land 1,430 491 1,921 Commercial 323 14 337 $ 13,679 $ 6,225 $ 19,904 December 31, 2014 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 5,760 $ 715 $ 6,475 Commercial real estate 10,710 3,797 14,507 Home equity and lines of credit 443 — 443 Residential construction — — — Other construction and land 1,519 672 2,191 Commercial 328 16 344 $ 18,760 $ 5,200 $ 23,960 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate — $ — $ — 1 $ 1,988 $ 1,693 — $ — $ — 1 $ 1,988 $ 1,693 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Below market interest rate: One-to four-family residential 1 $ 218 $ 161 2 $ 409 $ 326 Home equity loans and lines of credit — — — 1 50 40 1 $ 218 $ 161 3 $ 459 $ 366 Extended payment terms: Other construction and land 1 $ 666 $ 556 2 $ 720 $ 596 Commercial real estate 3 4,451 3,039 7 6,770 5,332 Commercial — — — 1 18 12 4 $ 5,117 $ 3,595 10 $ 7,508 $ 5,940 The following table summarizes TDRs that defaulted during the three and six month periods ended June 30, 2014 and which were modified as TDRs within the previous 12 months. There were no TDRs that defaulted during the three or six month periods ending June 30, 2015 and which were modified as TDRs within the previous 12 months. Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) Below market interest rate: One-to-four family residential 1 $ 135 1 $ 135 Home equity and lines of credit — — — — Other construction and land — — — — 1 $ 135 1 $ 135 Extended payment terms: Commercial real estate 1 $ 215 1 $ 215

REAL ESTATE OWNED (Tables)

REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2015
Real Estate Owned Tables
Summary of Real Estate Owned and Changes in the Valuation Allowances	The following tables summarize real estate owned and changes in the valuation allowance for real estate owned as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014. June 30, December 31, (Dollars in thousands) 2015 2014 Real estate owned, gross $ 6,268 $ 6,185 Less: Valuation allowance 1,558 1,760 Real estate owned, net $ 4,710 $ 4,425 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Valuation allowance, beginning $ 1,606 $ 5,119 $ 1,760 $ 5,560 Provision charged to expense 23 462 91 1,097 Reduction due to disposal (71 ) (2,920 ) (293 ) (3,996 ) Valuation allowance, ending $ 1,558 $ 2,661 $ 1,558 $ 2,661

LOAN SERVICING (Tables)

LOAN SERVICING (Tables)	6 Months Ended
	Jun. 30, 2015
Loan Servicing Tables
Summary of Unpaid Principal Mortgage and Other Loans	The unpaid principal balances of mortgage and other loans serviced for others is detailed below. June 30, 2015 December 31, 2014 (Dollars in thousands) $ 245,209 $ 246,348
Loan Servicing Rights	The following summarizes the activity in the balance of loan servicing rights for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,232 $ 2,051 $ 2,187 $ 1,883 Capitalization from loans sold 83 162 216 210 Fair value adjustment (157 ) (124 ) (245 ) (4 ) Loan servicing rights, end of period $ 2,158 $ 2,089 $ 2,158 $ 2,089

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2015
Deposits Tables
Summary of Deposit Balances and Interest Expenses	The following table summarizes deposit balances and interest expense by type of deposit as of and for the six months ended June 30, 2015 and 2014 and the year ended December 31, 2014. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2015 2014 2014 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 95,604 $ — $ 80,959 $ — $ 86,110 $ — Interest-bearing demand 98,447 76 89,912 63 92,877 149 Money Market 171,475 294 187,268 499 178,320 983 Savings 30,043 16 26,874 18 27,591 36 Time Deposits 296,968 1,972 327,563 2,109 318,219 4,193 $ 692,537 $ 2,358 $ 712,576 $ 2,689 $ 703,117 $ 5,361

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2015
Borrowings Tables
Schedule of Outstanding FHLB advances	The scheduled maturities and respective weighted average rates of outstanding FHLB advances, are as follows for the dates indicated: June 30, 2015 December 31, 2014 Year of Maturity Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in thousands) 2015 $ 57,000 0.27 % $ 20,000 0.33 % 2016 40,000 0.64 % 10,000 0.84 % 2017 8,000 1.23 % 5,000 1.38 % 2018 2,000 1.25 % — — 2019 12,500 1.82 % 10,000 1.83 % 2020 1,000 1.78 % 15,000 2.79 % $ 120,500 0.64 % $ 60,000 1.37 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2015
Income Taxes Tables
Schedule of net deferred taxes	The components of net deferred taxes as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 3,554 $ 4,235 Deferred compensation and post employment benefits 3,523 3,514 Non-accrual interest 264 202 Valuation reserve for other real estate 586 673 North Carolina NOL carryover 1,093 1,404 Federal NOL carryover 12,106 12,392 Unrealized losses on securities 814 867 Other 506 393 Gross deferred tax assets 22,446 23,680 Less: valuation allowance (1,300 ) (19,810 ) Total deferred tax assets 21,146 3,870 Deferred tax liabilities: Fixed assets 302 461 Loan servicing rights 811 813 Deferred loan costs 534 413 Prepaid expenses 148 94 Total deferred tax liabilities 1,795 1,781 Net deferred tax asset $ 19,351 $ 2,089

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share Tables
Schedule of reconciliation of average shares outstanding	The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: (Dollars in thousands, except per share amounts) For the Three Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 Numerator: Net income $ 17,105 $ 19,720 Denominator: Weighted-average common shares outstanding - basic 6,546,375 6,546,375 Effect of dilutive shares — — Weighted-average common shares outstanding - diluted 6,546,375 6,546,375 Earnings per share - basic $ 2.61 $ 3.01 Earnings per share - diluted $ 2.61 $ 3.01

ACCUMULATED OTHER COMPREHENSI35

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income Loss Tables
Schedule of Accumulated other comprehensive income (loss)	The following table summarizes the components of accumulated other comprehensive income and changes in those components as of and for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on Investment Securities Total (Dollars in thousands) Balance, beginning of period $ 910 $ (1,135 ) $ (139 ) $ (364 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — (675 ) (675 ) Change in net unrealized holding losses on securities available for sale (2,172 ) — — (2,172 ) Reclassification adjustment for net securities gains realized in net income (123 ) — — (123 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 493 — 493 Income tax benefit 873 (198 ) — 675 Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ (2,166 ) Three Months Ended June 30, 2014 (Dollars in thousands) Balance, beginning of period $ (2,052 ) $ (1,257 ) $ (2,049 ) $ (5,358 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 782 782 Change in unrealized holding gains on securities available for sale 2,314 — — 2,314 Reclassification adjustment for net securities gains realized in net income (317 ) — — (317 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 50 — 50 Income tax benefit (763 ) (19 ) — (782 ) Balance, end of period $ (818 ) $ (1,226 ) $ (1,267 ) $ (3,311 ) Six Months Ended June 30, 2015 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on Investment Securities Total (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ (2,269 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 54 54 Change in net unrealized holding losses on securities available for sale (152 ) — — (152 ) Reclassification adjustment for net securities gains realized in net income (287 ) — — (287 ) Transfer of net unrealized loss from available for sale to held to maturity — — — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 542 — 542 Income tax benefit 163 (217 ) — (54 ) Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ (2,166 ) Six Months Ended June 30, 2014 (Dollars in thousands) Balance, beginning of period $ (3,374 ) $ (1,242 ) $ (2,860 ) $ (7,476 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 1,593 1,593 Change in unrealized holding gains on securities available for sale 4,444 — — 4,444 Reclassification adjustment for net securities gains realized in net income (379 ) — — (379 ) Transfer of net unrealized loss from available for sale to held to maturity 74 (74 ) — — Amortization of unrealized gains and losses on securities transferred to held to maturity — 100 — 100 Income tax benefit (1,583 ) (10 ) — (1,593 ) Balance, end of period $ (818 ) $ (1,226 ) $ (1,267 ) $ (3,311 ) The following table shows the line items in the Consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) (Dollars in thousands) Gain on sale of investments, net $ 123 $ 317 $ 287 $ 379 Tax effect — — — — Impact, net of tax 123 317 287 379 Interest income - taxable securities 493 50 542 100 Tax effect — — — — Impact, net of tax 493 50 542 100 Total reclassifications, net of tax $ 616 $ 367 $ 829 $ 479

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Tables
Schedule of commitments to fund lines of credit	The following summarizes the Company’s approximate commitments to extend credit: June 30, 2015 (Dollars in thousands) Lines of credit $ 70,071 Standby letters of credit 654 $ 70,725
Schedule of Outstanding commitments to originate mortgage loans	As of June 30, 2015, the Company had outstanding commitments to originate loans as follows: June 30, 2015 Amount Range of Rates (Dollar in thousands) Fixed $ 8,746 2.99% to 6.00% Variable 16,397 3.25% to 6.49% $ 25,143

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures Tables
Summary of assets and liabilities measured at fair value on a recurring basis	Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: June 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ — $ 39,993 $ — $ 39,993 Municipal securities — 32,336 — 32,336 Mortgage-backed securities — 165,300 — 165,300 U.S. Treasury securities 1,518 — — 1,518 Mutual funds 594 — — 594 2,112 237,629 — 239,741 Loan servicing rights — — 2,158 2,158 Forward sales commitments — — 5 5 Interest rate lock commitments — — 13 13 Total assets $ 2,112 $ 237,629 $ 2,176 $ 241,917 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ — $ 39,482 $ — $ 39,482 Municipal securities — 25,558 — 25,558 Mortgage-backed securities — 152,718 — 152,718 U.S. Treasury securities 1,510 — — 1,510 Mutual funds 591 — — 591 2,101 217,758 — 219,859 Loan servicing rights — — 2,187 2,187 Forward sales commitments — — 9 9 Interest rate lock commitments — — 52 52 Total assets $ 2,101 $ 217,758 $ 2,248 $ 222,107
Schedule of changes in assets measured at fair value on a recurring basis	The following table presents the changes in assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Balance at beginning of period $ 2,368 $ 2,071 $ 2,248 $ 1,888 Loan servicing right activity, included in servicing income, net Capitalization from loans sold 83 162 216 210 Fair value adjustment (157 ) (124 ) (245 ) (4 ) Mortgage derivative gains included in Other income (118 ) 47 (43 ) 62 Balance at end of period $ 2,176 $ 2,156 $ 2,176 $ 2,156
Summary of assets and liabilities measured at a fair value on a nonrecurring basis	The table below presents information about certain assets and liabilities measured at fair value on a nonrecurring basis. There were no loans held for sale carried at fair value at either June 30, 2015 or December 31, 2014. June 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 5,337 $ 5,337 Commercial real estate — — 9,514 9,514 Home equity loans and lines of credit — — 904 904 Other construction and land — — 1,236 1,236 Real estate owned: One-to four family residential — — 671 671 Commercial real estate — — 1,039 1,039 Other construction and land — — 3,000 3,000 Total assets $ — $ — $ 21,701 $ 21,701 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 6,407 $ 6,407 Commercial real estate — — 14,551 14,551 Home equity loans and lines of credit — — 1,456 1,456 Other construction and land — — 2,227 2,227 Real estate owned: One-to four family residential — — 220 220 Commercial real estate — — 774 774 Other construction and land — — 3,431 3,431 Total assets $ — $ — $ 29,066 $ 29,066
Schedule of significant unobservable inputs used in the fair value measurements	The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2015. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Loan servicing rights Discounted Cash Flows Prepayment speed 8 – 25% Discount rate 12% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 107%
Schedule of carrying amount and estimated fair value of the Company's financial instruments	The approximate carrying and estimated fair value of financial instruments are summarized below: Fair Value Measurements at June 30, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 28,995 $ 28,995 $ 28,995 $ — $ — Securities available for sale 239,741 239,741 2,112 237,629 — Securities held to maturity 39,777 40,534 — 40,534 — Loans held for sale 9,635 10,293 — 10,293 — Loans receivable, net 582,466 588,203 — — 588,203 Other investments, at cost 7,432 7,432 — 7,432 — Interest receivable 3,236 3,236 — 3,236 — Bank owned life insurance 20,638 20,638 — 20,638 — Loan servicing rights 2,158 2,158 — — 2,158 Forward sales commitments 5 5 — — 5 Interest rate lock commitments 13 13 — — 13 Liabilities: Demand deposits $ 395,569 $ 395,569 $ — $ 395,569 $ — Time deposits 296,968 300,083 — — 300,083 Federal Home Loan Bank advances 120,500 122,997 — 122,997 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 216 216 — 216 — Fair Value Measurements at December 31, 2014 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 58,982 $ 58,982 $ 58,982 $ — $ — Securities available for sale 219,859 219,859 2,101 217,758 — Securities held to maturity 29,285 30,890 — 30,890 — Loans held for sale 10,761 11,501 — 11,501 — Loans receivable, net 529,407 546,450 — — 546,450 Other investments, at cost 4,908 4,908 — 4,908 — Interest receivable 2,925 2,925 — 2,925 — Bank owned life insurance 20,417 20,417 — 20,417 — Loan servicing rights 2,187 2,187 — — 2,187 Forward sales commitments 9 9 — — 9 Interest rate lock commitments 52 52 — — 52 Liabilities: Demand deposits $ 384,898 $ 384,898 $ — $ 384,898 $ — Time deposits 318,219 321,491 — — 321,491 Federal Home Loan Bank advances 60,000 62,108 — 62,108 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 323 323 — 323 —

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2015
Regulatory Matters Tables
Schedule of actual and required capital amounts and ratios	Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital Adequacy Purposes To Be Well-Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015: Tier 1 Leverage Capital $ 114,336 12.47 % $ 36,618 > $ 45,772 > Common Equity Tier 1 Capital $ 114,336 18.76 % $ 27,433 > $ 39,625 > Tier 1 Risk-based Capital $ 114,336 18.76 % $ 36,577 >6 $ 48,769 > Total Risk-based Capital $ 122,063 20.02 % $ 48,769 > $ 60,962 > As of December 31, 2014: Tier 1 Leverage Capital $ 105,556 11.91 % $ 35,440 > $ 44,300 > Tier 1 Risk-based Capital $ 105,556 19.89 % $ 21,231 > $ 31,847 > Total Risk-based Capital $ 112,246 21.15 % $ 42,462 > $ 53,078 > Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio As of June 30, 2015: Tier I Leverage Capital $ 132,570 14.46 % $ 36,640 > Common Equity Tier 1 Capital $ 125,074 20.45 % $ 27,458 > Tier I Risk-based Capital $ 132,570 21.70 % $ 36,611 >6 Total Risk Based Capital $ 140,308 22.97 % $ 48,814 > As of December 31, 2014: Tier I Leverage Capital $ 123,377 13.94 % $ 35,398 > Tier I Risk-based Capital $ 123,377 23.24 % $ 21,236 > Total Risk Based Capital $ 130,067 24.50 % $ 42,472 >

STOCK CONVERSION AND CHANGE I39

STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Stock Conversion And Change In Corporate Form Details
Common stock, shares, issued	6,546,375	6,546,375
Common stock price per share	$ 10
Proceeds from issuance of common stock, gross	$ 65,464
Stock issuance costs	(1,813)
Proceeds from issuance of common stock, net	63,651
Amount contributed to the capital of the bank from stock conversion	44,581
Amount Retained by the Company from stock conversion	$ 19,070
Amount contributed to the capital of the bank from stock conversion, percentage	70.00%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized Cost	$ 240,562	$ 220,241
Gross Unrealized Gains	859	944
Gross Unrealized Losses	(1,680)	(1,326)
Estimated fair value	239,741	219,859
U.S. Government Agencies [Member]
Amortized Cost	39,814	39,540
Gross Unrealized Gains	231	65
Gross Unrealized Losses	(52)	(123)
Estimated fair value	39,993	39,482
Municipal Securities [Member]
Amortized Cost	32,453	25,483
Gross Unrealized Gains	167	225
Gross Unrealized Losses	(284)	(150)
Estimated fair value	32,336	25,558
Mortgage-backed Securities [Member]
Amortized Cost	166,199	153,128
Gross Unrealized Gains	443	643
Gross Unrealized Losses	(1,342)	(1,053)
Estimated fair value	165,300	152,718
U.S. Treasury securities [Member]
Amortized Cost	1,500	1,500
Gross Unrealized Gains	$ 18	$ 10
Gross Unrealized Losses
Estimated fair value	$ 1,518	$ 1,510
Mutual funds [Member]
Amortized Cost	$ 596	590
Gross Unrealized Gains		$ 1
Gross Unrealized Losses	$ (2)
Estimated fair value	$ 594	$ 591

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized Cost	$ 39,777	$ 29,285
Gross Unrealized Gains	1,099	1,610
Gross Unrealized Losses	(342)	(5)
Estimated Fair Value	40,534	30,890
U.S. Government Agencies [Member]
Amortized Cost	21,429	23,193
Gross Unrealized Gains	957	1,420
Gross Unrealized Losses	(42)	(5)
Estimated Fair Value	22,344	24,608
Municipal Securities [Member]
Amortized Cost	12,508	4,392
Gross Unrealized Gains	142	$ 190
Gross Unrealized Losses	(232)
Estimated Fair Value	12,418	$ 4,582
Trust preferred securities [Member]
Amortized Cost		$ 1,000
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value		$ 1,000
Corporate debt securities [Member]
Amortized Cost	$ 2,950	$ 700
Gross Unrealized Gains
Gross Unrealized Losses	$ (5)
Estimated Fair Value	2,945	$ 700
Mortgage-backed Securities [Member]
Amortized Cost	$ 2,890
Gross Unrealized Gains
Gross Unrealized Losses	$ (63)
Estimated Fair Value	$ 2,827

INVESTMENT SECURITIES (Detail42

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investment Securities Details 3
Book value		$ 4,473		$ 4,473
Market value		$ 4,399		4,399
Unrealized loss				$ 74

INVESTMENT SECURITIES (Detail43

INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investment Securities Details 3
Beginning unrealized loss related to HTM securities previously recognized in OCI	$ 1,838	$ 2,036	$ 1,887	$ 2,012
Additions for transfers to HTM				74
Amortization of unrealized losses on HTM securities previously recognized in OCI	$ (493)	$ (50)	$ (542)	(100)
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI	$ 1,345	$ 1,986	$ 1,345	$ 1,986

INVESTMENT SECURITIES (Detail44

INVESTMENT SECURITIES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Held to maturity, Less Than 12 Months Fair Value	$ 18,011	$ 1,995
Held to maturity, Less Than 12 Months Unrealized Losses	$ 342	$ 5
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	$ 18,011	$ 1,995
Held to maturity, Unrealized Losses	342	5
Available for sale, Less Than 12 Months Fair Value	105,147	57,341
Available for sale, Less Than 12 Months Unrealized Losses	1,061	281
Available for sale, Over 12 Months Fair Value	26,314	62,506
Available for sale, Over 12 Months Unrealized Losses	619	1,045
Available for sale, Fair Value	131,461	119,847
Available for sale, Unrealized Losses	1,680	1,326
U.S. Government Agencies [Member]
Held to maturity, Less Than 12 Months Fair Value	5,685	1,995
Held to maturity, Less Than 12 Months Unrealized Losses	$ 42	$ 5
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	$ 5,685	$ 1,995
Held to maturity, Unrealized Losses	42	5
Available for sale, Less Than 12 Months Fair Value	6,029	14,472
Available for sale, Less Than 12 Months Unrealized Losses	9	15
Available for sale, Over 12 Months Fair Value	2,957	7,893
Available for sale, Over 12 Months Unrealized Losses	43	108
Available for sale, Fair Value	8,986	22,365
Available for sale, Unrealized Losses	52	123
Municipal Securities [Member]
Held to maturity, Less Than 12 Months Fair Value	8,753
Held to maturity, Less Than 12 Months Unrealized Losses	$ 232
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	$ 8,753
Held to maturity, Unrealized Losses	232
Available for sale, Less Than 12 Months Fair Value	18,915	4,306
Available for sale, Less Than 12 Months Unrealized Losses	262	49
Available for sale, Over 12 Months Fair Value	1,405	8,409
Available for sale, Over 12 Months Unrealized Losses	22	101
Available for sale, Fair Value	20,320	12,715
Available for sale, Unrealized Losses	284	150
Mortgage-backed Securities [Member]
Held to maturity, Less Than 12 Months Fair Value	2,828
Held to maturity, Less Than 12 Months Unrealized Losses	$ 63
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	$ 2,828
Held to maturity, Unrealized Losses	63
Available for sale, Less Than 12 Months Fair Value	79,607	38,563
Available for sale, Less Than 12 Months Unrealized Losses	788	217
Available for sale, Over 12 Months Fair Value	21,952	46,204
Available for sale, Over 12 Months Unrealized Losses	554	836
Available for sale, Fair Value	101,559	84,767
Available for sale, Unrealized Losses	1,342	$ 1,053
Corporate debt securities [Member]
Held to maturity, Less Than 12 Months Fair Value	745
Held to maturity, Less Than 12 Months Unrealized Losses	$ 5
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	$ 745
Held to maturity, Unrealized Losses	5
Mutual funds [Member]
Available for sale, Less Than 12 Months Fair Value	596
Available for sale, Less Than 12 Months Unrealized Losses	$ 2
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	$ 596
Available for sale, Unrealized Losses	$ 2

INVESTMENT SECURITIES (Detail45

INVESTMENT SECURITIES (Details 6) - Number	Jun. 30, 2015	Dec. 31, 2014
Number of securities less than 12 months	113	46
Number of securities more than 12 months	18	49
Number of securities	131	95
U.S. Government Agencies [Member]
Number of securities less than 12 months	6	11
Number of securities more than 12 months	1	3
Number of securities	7	14
Municipal Securities [Member]
Number of securities less than 12 months	57	9
Number of securities more than 12 months	3	19
Number of securities	60	28
Mortgage-backed Securities [Member]
Number of securities less than 12 months	49	26
Number of securities more than 12 months	14	27
Number of securities	63	53
Corporate debt securities [Member]
Number of securities less than 12 months	1
Number of securities more than 12 months
Number of securities	1

INVESTMENT SECURITIES (Detail46

INVESTMENT SECURITIES (Details 7) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Gross proceeds	$ 12,010	$ 8,503	$ 25,707	$ 15,425
Gross realized gains	$ 123	$ 317	307	$ 378
Gross realized losses			20
Securities Pledged as Collateral [Member]
Securities pledged against deposits	$ 44,000		$ 44,000		$ 10,700

INVESTMENT SECURITIES (Detail47

INVESTMENT SECURITIES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investment Securities Details 8
Available for sale, Over 1 year through 5 years, Amortized Cost	$ 31,828
Available for sale, After 5 years through 10 years, Amortized Cost	21,550
Available for sale, Over 10 years, Amortized Cost	20,985
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	74,363
Available for sale, Mortgage-backed securities, Amortized Cost	166,199
Available for sale, Total, Amortized Cost	240,562
Available for Sale, Over 1 year through 5 years, Fair Value	31,994
Available for Sale, After 5 years through 10 years, Fair Value	21,489
Available for Sale, Over 10 years, Fair Value	20,958
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	74,441
Available for Sale, Mortgage-backed securities, Fair Value	165,300
Available for Sale, Total, Fair Value	239,741
Held to Maturity, After 5 years through 10 years, Amortized Cost	8,886
Held to Maturity, Over 10 years, Amortized Cost	28,001
Held to Maturity Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	36,887
Held to Maturity Mortgage-backed securities, Amortized Cost	2,890
Held to Maturity, Total, Amortized Cost	39,777	$ 29,285
Held to Maturity, After 5 years through 10 years, Fair Value	8,848
Held to Maturity, Over 10 years, Fair Value	28,859
Held to Maturity Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	37,707
Held to Maturity Mortgage-backed securities, Fair Value	2,827
Held to Maturity, Total, Fair Value	$ 40,534	$ 30,890

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 585,140	$ 543,661
Less: Net deferred loan fees	(1,585)	$ (1,695)
Unamortized premium	410
Unamortized discount	(1,499)	$ (1,487)
Loans receivable, net	582,466	540,479
One To Four Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	232,167	227,209
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	192,021	179,435
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	54,078	56,561
Residential Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	10,363	7,823
Other construction and land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	54,369	50,298
Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	542,998	521,326
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	36,847	19,135
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	5,295	3,200
Commercial and Consumer Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 42,142	$ 22,335

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Discount on purchased loans, beginning of period				$ 1,695
Discount on purchased loans, end of period		$ 1,585		1,585
Federal Deposit Insurance Corporation [Member]
Discount on purchased loans, beginning of period		$ 1,587	$ 1,974	1,487
Additional discount for new purchases	$ 2,600			484	$ 2,607
Accretion		$ (88)	$ (92)	(177)	$ (187)
Discount applied to charge-offs				$ (295)
Interest income recognized for repayments and restructurings			$ (217)		$ (755)
Discount on purchased loans, end of period		$ 1,499	$ 1,665	$ 1,499	$ 1,665

LOANS RECEIVABLE (Detail Narrat

LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restructuring of loan		$ 19,904		$ 19,904		$ 23,960
Federal Reserve Bank Advances [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount		97,300		97,300		97,700
Federal Home Loan Bank of Atlanta [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount		$ 148,800		148,800		$ 117,900
Federal Deposit Insurance Corporation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated loans and purchased percentage	50.00%
Outstanding loan balance purchased	$ 9,300
Discount on loans purchased	2,600			$ 484	$ 2,607
Repayment for loan purchased	2,800
Discount on payments	500
Deferred interest income recognized	$ 300
Restructuring of loan			$ 1,800		1,800
Interest income recognized for repayments and restructurings			$ 217		$ 755

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 9,611	$ 11,956	$ 11,072	$ 14,251
Provision		6	(1,500)	11
Charge-offs	$ 369	753	759	3,508
Recoveries	209	352	638	807
Balance, end of period	9,451	11,561	9,451	11,561
One To Four Family Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,773	3,265	2,983	3,693
Provision	(507)	(20)	(607)	(18)
Charge-offs	19	85	238	516
Recoveries	13	22	122	23
Balance, end of period	2,260	3,202	2,260	3,202
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,363	2,851	2,717	4,360
Provision	184	149	(232)	149
Charge-offs	15	205	45	1,998
Recoveries	75	51	167	335
Balance, end of period	2,607	2,450	2,607	2,450
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,168	1,453	1,333	1,580
Provision	170	(136)	91	(137)
Charge-offs	260	188	369	331
Recoveries	2	17	25	34
Balance, end of period	1,080	1,488	1,080	1,488
Residential Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	304	501	510	501
Provision	$ 38	$ (14)	$ (168)	$ (14)
Charge-offs
Recoveries	$ 2		$ 2
Balance, end of period	344	$ 524	344	$ 524
Other construction and land [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,990	3,256	2,936	3,516
Provision	(304)	125	(1,350)	130
Charge-offs	67	132	86	475
Recoveries	47	8	166	86
Balance, end of period	1,666	3,712	1,666	3,712
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	596	340	308	336
Provision	82	(61)	363	(62)
Charge-offs	1	125	1	125
Recoveries	3	150	10	155
Balance, end of period	680	259	680	259
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	417	290	285	265
Provision	337	(37)	403	(37)
Charge-offs	7	18	20	63
Recoveries	67	104	146	174
Balance, end of period	$ 814	$ 321	$ 814	$ 321

ALLOWANCE FOR LOAN LOSSES (De52

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Allowance for loan losses
Individually evaluated for impairment	$ 791		$ 1,676
Collectively evaluated for impairment	8,660		9,396
Balance, end of period	9,451	$ 9,611	11,072	$ 11,561	$ 11,956	$ 14,251
Loans Receivable
Individually evaluated for impairment	23,842		33,665
Collectively evaluated for impairment	561,298		509,996
Total Loans Receivable	585,140		543,661
One To Four Family Residential [Member]
Allowance for loan losses
Individually evaluated for impairment	437		719
Collectively evaluated for impairment	1,823		2,264
Balance, end of period	2,260	2,773	2,983	3,202	3,265	3,693
Loans Receivable
Individually evaluated for impairment	7,519		9,912
Collectively evaluated for impairment	224,648		217,297
Total Loans Receivable	232,167		227,209
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	156		235
Collectively evaluated for impairment	2,451		2,482
Balance, end of period	2,607	2,363	2,717	2,450	2,851	4,360
Loans Receivable
Individually evaluated for impairment	12,695		17,828
Collectively evaluated for impairment	179,326		161,607
Total Loans Receivable	192,021		179,435
Home Equity Line of Credit [Member]
Allowance for loan losses
Individually evaluated for impairment	67		14
Collectively evaluated for impairment	1,013		1,319
Balance, end of period	1,080	1,168	1,333	1,488	1,453	1,580
Loans Receivable
Individually evaluated for impairment	1,065		1,686
Collectively evaluated for impairment	53,013		54,875
Total Loans Receivable	$ 54,078		$ 56,561
Residential Construction [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	$ 344		$ 510
Balance, end of period	$ 344	304	$ 510	524	501	501
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	$ 10,363		$ 7,823
Total Loans Receivable	10,363		7,823
Other construction and land [Member]
Allowance for loan losses
Individually evaluated for impairment	92		705
Collectively evaluated for impairment	1,574		2,231
Balance, end of period	1,666	1,990	2,936	3,712	3,256	3,516
Loans Receivable
Individually evaluated for impairment	2,239		3,911
Collectively evaluated for impairment	52,130		46,387
Total Loans Receivable	54,369		50,298
Commercial Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	39		3
Collectively evaluated for impairment	641		305
Balance, end of period	680	596	308	259	340	336
Loans Receivable
Individually evaluated for impairment	324		328
Collectively evaluated for impairment	36,523		18,807
Total Loans Receivable	$ 36,847		$ 19,135
Consumer Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	$ 814		$ 285
Balance, end of period	$ 814	$ 417	$ 285	$ 321	$ 290	$ 265
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	$ 5,295		$ 3,200
Total Loans Receivable	$ 5,295		$ 3,200

ALLOWANCE FOR LOAN LOSSES (De53

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loans Reported amount	$ 585,140	$ 543,661
One To Four Family Residential [Member]
Loans Reported amount	232,167	227,209
Commercial Portfolio Segment [Member]
Loans Reported amount	36,847	19,135
Home Equity Line of Credit [Member]
Loans Reported amount	54,078	56,561
Residential Construction [Member]
Loans Reported amount	10,363	7,823
Other construction and land [Member]
Loans Reported amount	54,369	50,298
Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	192,021	179,435
Consumer Portfolio Segment [Member]
Loans Reported amount	5,295	3,200
Graded Loan [Member]
Loans Reported amount	380,508	450,617
Graded Loan [Member] | One To Four Family Residential [Member]
Loans Reported amount	92,638	179,572
Graded Loan [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	192,021	177,541
Graded Loan [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	10,110	29,338
Graded Loan [Member] | Residential Construction [Member]
Loans Reported amount	8,574	6,639
Graded Loan [Member] | Other construction and land [Member]
Loans Reported amount	37,684	43,060
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	36,847	13,394
Graded Loan [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	2,634	1,073
Graded Loan [Member] | Loan Grade One [Member]
Loans Reported amount	$ 9,746	$ 2,599
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	$ 66	$ 68
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade One [Member] | Other construction and land [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	$ 9,669	$ 2,511
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	11	20
Graded Loan [Member] | Loan Grade Two [Member]
Loans Reported amount	$ 99	$ 100
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Other construction and land [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	$ 99	$ 100
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Three [Member]
Loans Reported amount	$ 24,923	$ 90,180
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member]
Loans Reported amount	11,937	63,065
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	8,747	14,356
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	1,276	5,978
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member]
Loans Reported amount	567	690
Graded Loan [Member] | Loan Grade Three [Member] | Other construction and land [Member]
Loans Reported amount	1,005	5,154
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	484	483
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	907	454
Graded Loan [Member] | Loan Grade Four [Member]
Loans Reported amount	135,493	121,411
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member]
Loans Reported amount	40,356	58,948
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	57,355	37,349
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	2,474	10,424
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member]
Loans Reported amount	4,914	2,327
Graded Loan [Member] | Loan Grade Four [Member] | Other construction and land [Member]
Loans Reported amount	11,247	9,027
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	17,527	2,917
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	1,620	419
Graded Loan [Member] | Loan Grade Five [Member]
Loans Reported amount	163,306	175,978
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member]
Loans Reported amount	32,656	44,445
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	94,272	90,397
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	5,860	10,486
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member]
Loans Reported amount	2,094	3,048
Graded Loan [Member] | Loan Grade Five [Member] | Other construction and land [Member]
Loans Reported amount	20,189	21,024
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	8,139	6,399
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	96	179
Graded Loan [Member] | Loan Grade Six [Member]
Loans Reported amount	22,252	31,283
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member]
Loans Reported amount	2,995	5,714
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	$ 15,866	21,232
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member]
Loans Reported amount		882
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member]
Loans Reported amount	$ 999	574
Graded Loan [Member] | Loan Grade Six [Member] | Other construction and land [Member]
Loans Reported amount	1,973	2,451
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	$ 419	429
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount		1
Graded Loan [Member] | Loan Grade Seven [Member]
Loans Reported amount	$ 24,689	29,066
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member]
Loans Reported amount	4,694	7,400
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	15,715	14,139
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	$ 500	$ 1,568
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Seven [Member] | Other construction and land [Member]
Loans Reported amount	$ 3,270	$ 5,404
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	$ 510	$ 555
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
UnGraded Loan [Member]
Loans Reported amount	$ 204,632	$ 93,044
UnGraded Loan [Member] | One To Four Family Residential [Member]
Loans Reported amount	$ 139,529	47,637
UnGraded Loan [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount		1,894
UnGraded Loan [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	$ 43,968	27,223
UnGraded Loan [Member] | Residential Construction [Member]
Loans Reported amount	1,789	1,184
UnGraded Loan [Member] | Other construction and land [Member]
Loans Reported amount	$ 16,685	7,238
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount		5,741
UnGraded Loan [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	$ 2,661	2,127
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member]
Loans Reported amount	202,372	90,905
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member]
Loans Reported amount	$ 1,625	1,390
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount		158
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	$ 588	359
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member]
Loans Reported amount		65
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other construction and land [Member]
Loans Reported amount	$ 45	$ 165
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	$ 2	$ 2
UnGraded Loan [Member] | Performing Financing Receivable [Member]
Loans Reported amount	2,260	2,139
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member]
Loans Reported amount	$ 137,904	46,247
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount		1,736
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	$ 43,380	26,864
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member]
Loans Reported amount	1,789	1,119
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other construction and land [Member]
Loans Reported amount	$ 16,640	7,073
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount		5,741
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	$ 2,659	$ 2,125

ALLOWANCE FOR LOAN LOSSES (De54

ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 14,642	$ 18,616
Current	570,498	525,045
Total Loans Receivable	585,140	543,661
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,564	10,768
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	458	2,875
90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,620	4,973
One To Four Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,387	9,415
Current	225,780	217,794
Total Loans Receivable	232,167	227,209
One To Four Family Residential [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,723	6,298
One To Four Family Residential [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	362	448
One To Four Family Residential [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,302	2,669
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,948	4,051
Current	187,073	175,384
Total Loans Receivable	192,021	179,435
Commercial Real Estate Portfolio Segment [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,310	2,136
Commercial Real Estate Portfolio Segment [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	77	909
Commercial Real Estate Portfolio Segment [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	561	1,006
Home Equity Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,581	1,844
Current	52,497	54,717
Total Loans Receivable	54,078	56,561
Home Equity Line of Credit [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 493	557
Home Equity Line of Credit [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		528
Home Equity Line of Credit [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 1,088	759
Residential Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	119	65
Current	10,244	7,758
Total Loans Receivable	10,363	$ 7,823
Residential Construction [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 119
Residential Construction [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Residential Construction [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 65
Other construction and land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 1,579	2,967
Current	52,790	47,331
Total Loans Receivable	54,369	50,298
Other construction and land [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	904	1,530
Other construction and land [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	964
Other construction and land [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	669	473
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9	22
Current	36,838	19,113
Total Loans Receivable	$ 36,847	$ 19,135
Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 9	$ 22
Commercial Portfolio Segment [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 19	$ 252
Current	5,276	2,948
Total Loans Receivable	5,295	3,200
Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	15	247
Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 4	4
Consumer Portfolio Segment [Member] | 90 Days and Over Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 1

ALLOWANCE FOR LOAN LOSSES (De55

ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	$ 16,800	$ 23,612
Unpaid Principal Balance, without a valuation allowance	18,986	27,102
Recorded Balance, Recorded Balance, with a valuation allowance	7,042	10,053
Unpaid Principal Balance, with a valuation allowance	7,199	10,260
Recorded Balance	23,842	33,665
Unpaid Principal Balance	26,185	37,362
Specific Allowance	791	1,676
One To Four Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	5,337	5,943
Unpaid Principal Balance, without a valuation allowance	5,379	6,096
Recorded Balance, Recorded Balance, with a valuation allowance	2,182	3,969
Unpaid Principal Balance, with a valuation allowance	2,182	4,028
Recorded Balance	7,519	9,912
Unpaid Principal Balance	7,561	10,124
Specific Allowance	437	719
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	9,514	14,231
Unpaid Principal Balance, without a valuation allowance	11,096	16,515
Recorded Balance, Recorded Balance, with a valuation allowance	3,181	3,597
Unpaid Principal Balance, with a valuation allowance	3,181	3,745
Recorded Balance	12,695	17,828
Unpaid Principal Balance	14,277	20,260
Specific Allowance	156	235
Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	713	1,537
Unpaid Principal Balance, without a valuation allowance	828	1,912
Recorded Balance, Recorded Balance, with a valuation allowance	352	149
Unpaid Principal Balance, with a valuation allowance	510	149
Recorded Balance	1,065	1,686
Unpaid Principal Balance	1,338	2,061
Specific Allowance	$ 67	$ 14
Residential Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance
Unpaid Principal Balance, without a valuation allowance
Recorded Balance, Recorded Balance, with a valuation allowance
Unpaid Principal Balance, with a valuation allowance
Recorded Balance
Unpaid Principal Balance
Specific Allowance
Other construction and land [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	$ 1,236	$ 1,901
Unpaid Principal Balance, without a valuation allowance	1,683	2,579
Recorded Balance, Recorded Balance, with a valuation allowance	1,003	2,010
Unpaid Principal Balance, with a valuation allowance	1,003	2,010
Recorded Balance	2,239	3,911
Unpaid Principal Balance	2,686	4,589
Specific Allowance	$ 92	$ 705
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance
Unpaid Principal Balance, without a valuation allowance
Recorded Balance, Recorded Balance, with a valuation allowance	$ 324	$ 328
Unpaid Principal Balance, with a valuation allowance	323	328
Recorded Balance	324	328
Unpaid Principal Balance	323	328
Specific Allowance	$ 39	$ 3

ALLOWANCE FOR LOAN LOSSES (De56

ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Average Investment in Impaired Loans, without a valuation allowance	$ 17,086	$ 27,911	$ 17,117	$ 27,007
Interest Income Recognized, without a valuation allowance	167	245	320	460
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	7,142	9,924	7,165	10,578
Interest Income Recognized, with a valuation allowance	73	105	146	228
Average Investment in Impaired Loans	24,228	37,835	24,282	37,585
Interest Income Recognized	240	350	466	688
One To Four Family Residential [Member]
Average Investment in Impaired Loans, without a valuation allowance	5,598	5,839	5,607	5,400
Interest Income Recognized, without a valuation allowance	45	39	87	83
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	2,190	4,865	2,198	5,215
Interest Income Recognized, with a valuation allowance	22	54	44	116
Average Investment in Impaired Loans	7,788	10,704	7,805	10,615
Interest Income Recognized	67	93	131	199
Commercial Real Estate Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	9,536	15,059	9,555	14,293
Interest Income Recognized, without a valuation allowance	114	137	214	238
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	3,186	2,573	3,196	2,790
Interest Income Recognized, with a valuation allowance	35	25	69	58
Average Investment in Impaired Loans	12,722	17,632	12,751	17,083
Interest Income Recognized	149	162	283	296
Home Equity Line of Credit [Member]
Average Investment in Impaired Loans, without a valuation allowance	$ 713	1,200	714	1,126
Interest Income Recognized, without a valuation allowance		12	1	24
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	$ 431	229	431	303
Interest Income Recognized, with a valuation allowance	1	2	2	6
Average Investment in Impaired Loans	1,144	1,429	1,145	1,429
Interest Income Recognized	$ 1	$ 14	$ 3	$ 30
Residential Construction [Member]
Average Investment in Impaired Loans, without a valuation allowance
Interest Income Recognized, without a valuation allowance
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance		$ 1,921		$ 1,932
Interest Income Recognized, with a valuation allowance
Average Investment in Impaired Loans		$ 1,921		$ 1,932
Interest Income Recognized
Other construction and land [Member]
Average Investment in Impaired Loans, without a valuation allowance	$ 1,239	$ 5,795	$ 1,241	$ 6,169
Interest Income Recognized, without a valuation allowance	8	57	18	115
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	1,009	336	1,014	338
Interest Income Recognized, with a valuation allowance	10	24	21	48
Average Investment in Impaired Loans	2,248	6,131	2,255	6,507
Interest Income Recognized	$ 18	81	$ 39	163
Commercial Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance		$ 18		$ 19
Interest Income Recognized, without a valuation allowance
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	$ 326		$ 326
Interest Income Recognized, with a valuation allowance	5		10
Average Investment in Impaired Loans	326	$ 18	326	$ 19
Interest Income Recognized	$ 5		$ 10

ALLOWANCE FOR LOAN LOSSES (De57

ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 4,602	$ 16,780
One To Four Family Residential [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	5,661
Commercial Real Estate Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	7,011
Home Equity Line of Credit [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	1,347
Residential Construction [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	65
Other construction and land [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	2,679
Commercial Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	4,602	15
Consumer Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 4,602	$ 2

ALLOWANCE FOR LOAN LOSSES (De58

ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
TDR loans	$ 19,904	$ 23,960
Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	13,679	18,760
Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	6,225	5,200
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	4,618	6,475
One To Four Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	4,246	5,760
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	372	715
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	12,715	14,507
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	7,550	10,710
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	5,165	3,797
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	313	443
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	130	$ 443
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	$ 183
Residential Construction [Member]
Financing Receivable, Modifications [Line Items]
TDR loans
Residential Construction [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans
Residential Construction [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans
Other construction and land [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	$ 1,921	$ 2,191
Other construction and land [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,430	1,519
Other construction and land [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	491	672
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	337	344
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	323	328
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	$ 14	$ 16

ALLOWANCE FOR LOAN LOSSES (De59

ALLOWANCE FOR LOAN LOSSES (Details 9) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)Number	Jun. 30, 2014USD ($)Number	Jun. 30, 2015USD ($)Number	Jun. 30, 2014USD ($)Number
Forgiveness Of Principal [Member]
Number of Loans | Number			1
Pre-modification Outstanding Recorded Investment			$ 1,988
Post-modification Outstanding Recorded Investment			$ 1,693
Forgiveness Of Principal [Member] | Commercial Real Estate Portfolio Segment [Member]
Number of Loans | Number			1
Pre-modification Outstanding Recorded Investment			$ 1,988
Post-modification Outstanding Recorded Investment			$ 1,693
Below Market Interest Rate [Member]
Number of Loans | Number		1		3
Pre-modification Outstanding Recorded Investment		$ 218		$ 459
Post-modification Outstanding Recorded Investment		$ 161		$ 366
Number of Loans Recorded Investment | Number		1		1
Recorded Investment		$ 135		$ 135
Below Market Interest Rate [Member] | One To Four Family Residential [Member]
Number of Loans | Number		1		2
Pre-modification Outstanding Recorded Investment		$ 218		$ 409
Post-modification Outstanding Recorded Investment		$ 161		$ 326
Number of Loans Recorded Investment | Number		1		1
Recorded Investment		$ 135		$ 135
Below Market Interest Rate [Member] | Home Equity Line of Credit [Member]
Number of Loans | Number				1
Pre-modification Outstanding Recorded Investment				$ 50
Post-modification Outstanding Recorded Investment				$ 40
Number of Loans Recorded Investment | Number
Recorded Investment
Below Market Interest Rate [Member] | Other construction and land [Member]
Number of Loans Recorded Investment | Number
Recorded Investment
Extended Payment Term [Member]
Number of Loans | Number		4		10
Pre-modification Outstanding Recorded Investment		$ 5,117		$ 7,508
Post-modification Outstanding Recorded Investment		$ 3,595		$ 5,940
Extended Payment Term [Member] | Commercial Real Estate Portfolio Segment [Member]
Number of Loans | Number		3		7
Pre-modification Outstanding Recorded Investment		$ 4,451		$ 6,770
Post-modification Outstanding Recorded Investment		$ 3,039		$ 5,332
Number of Loans Recorded Investment | Number		1		1
Recorded Investment		$ 215		$ 215
Extended Payment Term [Member] | Other construction and land [Member]
Number of Loans | Number		1		2
Pre-modification Outstanding Recorded Investment		$ 666		$ 720
Post-modification Outstanding Recorded Investment		$ 556		$ 596
Extended Payment Term [Member] | Commercial Portfolio Segment [Member]
Number of Loans | Number				1
Pre-modification Outstanding Recorded Investment				$ 18
Post-modification Outstanding Recorded Investment				$ 12

REAL ESTATE OWNED (Details)

REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Real Estate Owned Details
Real estate owned, gross	$ 6,268		$ 6,185
Less: Valuation allowance	1,558	$ 1,606	1,760	$ 2,661	$ 5,119	$ 5,560
Real estate owned, net	$ 4,710		$ 4,425

REAL ESTATE OWNED (Details 2)

REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Real Estate Owned Details 2
Valuation allowance, beginning	$ 1,606	$ 5,119	$ 1,760	$ 5,560
Provision charged to expense	23	462	91	1,097
Reduction due to disposal	(71)	(2,920)	(293)	(3,996)
Valuation allowance, ending	$ 1,558	$ 2,661	$ 1,558	$ 2,661

REAL ESTATE OWNED (Details Narr

REAL ESTATE OWNED (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate acquired through foreclosure	$ 6,268	$ 6,185
Residential Real Estate [Member]
Real estate acquired through foreclosure	2,700
Other real estate	$ 700

LOAN SERVICING (Details)

LOAN SERVICING (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loan Servicing Details
Unpaid principal balance of mortgage loans serviced for others	$ 245,209	$ 246,348

LOAN SERVICING (Details 2)

LOAN SERVICING (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Loan Servicing Details 2
Loan servicing rights, beginning of period	$ 2,232	$ 2,051	$ 2,187	$ 1,883
Capitalization from loans sold	83	162	216	210
Fair value adjustment	(157)	(124)	(245)	(4)
Loan servicing rights, end of period	$ 2,158	$ 2,089	$ 2,158	$ 2,089

LOAN SERVICING (Details Narrati

LOAN SERVICING (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loan Servicing Details 2
Escrow deposits	$ 1,400	$ 600

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Deposits By Type [Line Items]
Balance	$ 692,537	$ 712,576	$ 692,537	$ 712,576	$ 703,117
Interest Expense	1,149	1,348	2,358	2,689	5,361
Noninterest-bearing demand [Member]
Deposits By Type [Line Items]
Balance	95,604	80,959	$ 95,604	$ 80,959	$ 86,110
Interest Expense
Interest-bearing Deposits [Member]
Deposits By Type [Line Items]
Balance	98,447	89,912	$ 98,447	$ 89,912	$ 92,877
Interest Expense			76	63	149
Money Market Funds [Member]
Deposits By Type [Line Items]
Balance	171,475	187,268	171,475	187,268	178,320
Interest Expense			294	499	983
Savings Deposits [Member]
Deposits By Type [Line Items]
Balance	30,043	26,874	30,043	26,874	27,591
Interest Expense			16	18	36
Time deposit [Member]
Deposits By Type [Line Items]
Balance	$ 296,968	$ 327,563	296,968	327,563	318,219
Interest Expense			$ 1,972	$ 2,109	$ 4,193

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal Home Loan Bank, Advances [Abstract]
2,015	$ 57,000	$ 20,000
2,016	40,000	10,000
2,017	8,000	$ 5,000
2,018	2,000
2,019	12,500	$ 10,000
2,020	1,000	15,000
Total	$ 120,500	$ 60,000	$ 15,000
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract]
2,015	0.27%	0.33%
2,016	0.64%	0.84%
2,017	1.23%	1.38%
2,018	1.25%
2,019	1.82%	1.83%
2,020	1.78%	2.79%
Total	0.64%	1.37%	2.56%

JUNIOR SUBORDINATED DEBT (Detai

JUNIOR SUBORDINATED DEBT (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Debt Instrument [Line Items]
Junior subordinated notes	$ 14,433	$ 14,433
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Junior subordinated notes	$ 14,400
Debt instrument, interest rate	3.08%
Debt instrument, maturity date	Mar. 30, 2034
Debt redemption price percentage	100.00%
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	2.80%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for loan losses	$ 3,554	$ 4,235
Deferred compensation and post employment benefits	3,523	3,514
Non-accrual interest	264	202
Valuation reserve for other real estate	586	673
North Carolina NOL carryover	1,093	1,404
Federal NOL carryover	12,106	12,392
Unrealized losses on securities	814	867
Other	506	393
Gross deferred tax assets	22,446	23,680
Less: valuation allowance	(1,300)	(19,810)
Total deferred tax assets	21,146	3,870
Fixed assets	302	461
Loan servicing rights	811	813
Deferred loan costs	534	413
Prepaid expenses	148	94
Total deferred tax liabilities	1,795	1,781
Net deferred tax asset	$ 19,351	$ 2,089

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share Details
Net income	$ 17,105	$ 668	$ 19,720	$ 2,759
Weighted average shares outstanding	6,546,375		6,546,375
Effect of dilutive securities
Average shares outstanding	6,546,375		6,546,375
Earnings per share - basic	$ 2.61		$ 3.01
Earnings per share - diluted	$ 2.61		$ 3.01

ACCUMULATED OTHER COMPREHENSI71

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Balance, beginning of period	$ (364)	$ (5,358)	$ (2,269)	$ (7,476)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	(675)	783	54	1,593
Change in unrealized holding gain (loss) on securities available for sale	(2,172)	2,314	(152)	4,444
Reclassification adjustment for net securities gains realized in net income	$ (123)	$ (317)	$ (287)	$ (379)
Transfer of net unrealized loss from available for sale to held to maturity
Amortization of unrealized gains and losses on securities transferred to held to maturity	$ 493	$ 50	$ 542	$ 100
Income tax benefit (expense)	675	(783)	(54)	(1,593)
Balance, end of period	(2,166)	(3,311)	(2,166)	(3,311)
Available-for-sale Securities [Member]
Balance, beginning of period	$ 910	$ (2,052)	$ (236)	$ (3,374)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale
Change in unrealized holding gain (loss) on securities available for sale	$ (2,172)	$ 2,314	$ (152)	$ 4,444
Reclassification adjustment for net securities gains realized in net income	$ (123)	$ (317)	$ (287)	(379)
Transfer of net unrealized loss from available for sale to held to maturity				$ 74
Amortization of unrealized gains and losses on securities transferred to held to maturity
Income tax benefit (expense)	$ 873	$ (763)	$ 163	$ (1,583)
Balance, end of period	(512)	(818)	(512)	(818)
Held-to-maturity Securities [Member]
Balance, beginning of period	$ (1,135)	$ (1,257)	$ (1,165)	$ (1,242)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale
Change in unrealized holding gain (loss) on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Transfer of net unrealized loss from available for sale to held to maturity				$ (74)
Amortization of unrealized gains and losses on securities transferred to held to maturity	$ 493	$ 50	$ 542	100
Income tax benefit (expense)	(198)	(19)	(217)	(10)
Balance, end of period	(840)	(1,226)	(840)	(1,226)
Valuation Allowance of Deferred Tax Assets [Member]
Balance, beginning of period	(139)	(2,049)	(868)	(2,860)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	$ (675)	$ 782	$ 54	$ 1,593
Change in unrealized holding gain (loss) on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Transfer of net unrealized loss from available for sale to held to maturity
Amortization of unrealized gains and losses on securities transferred to held to maturity
Income tax benefit (expense)
Balance, end of period	$ (814)	$ (1,267)	$ (814)	$ (1,267)

ACCUMULATED OTHER COMPREHENSI72

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax	$ 616	$ 367	$ 829	$ 479
Gain on sale of investments, net [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	$ 123	$ 317	$ 287	$ 379
Tax effect
Impact, net of tax	$ 123	$ 317	$ 287	$ 379
Investment Income (Expense) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	$ 493	$ 50	$ 542	$ 100
Tax effect
Impact, net of tax	$ 493	$ 50	$ 542	$ 100

COMMITMENTS AND CONTINGENCIES73

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2015USD ($)
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 70,725
Standby Letters of Credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	654
Line of Credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 70,071

COMMITMENTS AND CONTINGENCIES74

COMMITMENTS AND CONTINGENCIES (Details 2) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total
Fixed	$ 8,746
Variable	16,397
Total	$ 25,143
Minimum [Member]
Fixed	2.99%
Variable	3.25%
Maximum [Member]
Fixed	6.00%
Variable	6.49%

COMMITMENTS AND CONTINGENCIES75

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Mortgage Loans Sold to Federal National Mortgage Association[Member]
Loss Contingencies [Line Items]
Allowance for unfunded commitments	$ 100
Obligation for representations and warranties, reserve		$ 300
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Allowance for unfunded commitments		$ 100
Obligation for representations and warranties, reserve	$ 300

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 241,917	$ 222,107
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	237,629	217,758
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,112	2,101
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,176	2,248
Loan Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,158	2,187
Loan Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,158	2,187
Forward Sales Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	5	9
Forward Sales Commitments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	5	9
Interest Rate Lock Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	13	52
Interest Rate Lock Commitments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	13	52
Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	239,741	219,859
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	237,629	217,758
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,112	2,101
Available-for-sale Securities [Member] | Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	32,336	25,558
Available-for-sale Securities [Member] | Municipal Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	32,336	25,558
Available-for-sale Securities [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	165,300	152,718
Available-for-sale Securities [Member] | Mortgage-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	165,300	152,718
Available-for-sale Securities [Member] | Mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	594	591
Available-for-sale Securities [Member] | Mutual funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	594	591
Available-for-sale Securities [Member] | US Government Corporations and Agencies Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	39,993	39,482
Available-for-sale Securities [Member] | US Government Corporations and Agencies Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	39,993	39,482
Available-for-sale Securities [Member] | U.S. Treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	1,518	1,510
Available-for-sale Securities [Member] | U.S. Treasury securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 1,518	$ 1,510

FAIR VALUE DISCLOSURES (Detai77

FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value Disclosures Details 2
Balance at beginning of period	$ 2,368	$ 2,071	$ 2,248	$ 1,888
Capitalization from loans sold	83	162	216	210
Fair value adjustment	(157)	(124)	(245)	(4)
Mortgage derivative gains included in Other income	(118)	47	(43)	62
Balance at end of period	$ 2,176	$ 2,156	$ 2,176	$ 2,156

FAIR VALUE DISCLOSURES (Detai78

FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Impaired loans measured at present value	$ 6,800	$ 9,000
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	5,337	6,407
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	9,514	14,551
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	904	1,456
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other construction and land [Member]
Assets measured at fair value on nonrecurring basis	1,236	2,227
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	5,337	6,407
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	9,514	14,551
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	904	1,456
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other construction and land [Member]
Assets measured at fair value on nonrecurring basis	1,236	2,227
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	671	220
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,039	774
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other construction and land [Member]
Assets measured at fair value on nonrecurring basis	3,000	3,431
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential Construction [Member]
Assets measured at fair value on nonrecurring basis	21,701	29,066
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	671	220
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,039	774
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other construction and land [Member]
Assets measured at fair value on nonrecurring basis	3,000	3,431
Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Construction [Member]
Assets measured at fair value on nonrecurring basis	$ 21,701	$ 29,066

FAIR VALUE DISCLOSURES (Detai79

FAIR VALUE DISCLOSURES (Details 4) - 6 months ended Jun. 30, 2015	Total
Impaired Loans [Member] | Discounted Appraised Value [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Collateral discounts and estimated selling cost
Unobservable Input	Discounted Appraisals
Impaired Loans [Member] | Discounted Appraised Value [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral discounts and estimated selling cost	0.00%
Impaired Loans [Member] | Discounted Appraised Value [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral discounts and estimated selling cost	30.00%
Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Collateral discounts and estimated selling cost
Unobservable Input	Discounted Appraisals
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral discounts and estimated selling cost	0.00%
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral discounts and estimated selling cost	30.00%
Loan Servicing Rights [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Discounted Cash Flows
Loan Servicing Rights [Member] | Discounted Cash Flow Method [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	12.00%
Loan Servicing Rights [Member] | Discounted Cash Flow Method [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment Speed	8.00%
Loan Servicing Rights [Member] | Discounted Cash Flow Method [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment Speed	25.00%
Forward Sales Commitments [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Value of underlying loan
Unobservable Input	Change in market price of underlying loan
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Value of underlying loan rate	101.00%
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Value of underlying loan rate	107.00%

FAIR VALUE DISCLOSURES (Detai80

FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Assets:
Cash and equivalents	$ 28,995		$ 58,982	$ 39,810		$ 34,316
Securities available for sale	239,741		219,859
Securities held to maturity	39,777		29,285
Loans held for sale	9,635		10,761
Other investments, at cost	7,432		4,908
Interest receivable	3,236		2,925
Bank owned life insurance	20,638		20,417
Loan servicing rights	2,158	$ 2,232	2,187	$ 2,089	$ 2,051	1,883
Liabilities:
Federal Home Loan Bank advances	120,500		60,000			$ 15,000
Junior subordinated debentures	14,433		14,433
Accrued interest payable	216		323
Reported Value Measurement [Member]
Assets:
Cash and equivalents	28,995		58,982
Securities available for sale	239,741		219,859
Securities held to maturity	39,777		29,285
Loans held for sale	9,635		10,761
Loans receivable, net	582,466		529,407
Other investments, at cost	7,432		4,908
Interest receivable	3,236		2,925
Bank owned life insurance	20,638		20,417
Loan servicing rights	2,158		2,187
Liabilities:
Demand deposits	395,569		384,898
Time deposits	296,968		318,219
Federal Home Loan Bank advances	120,500		60,000
Junior subordinated debentures	14,433		14,433
Accrued interest payable	216		323
Reported Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	5		9
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	13		52
Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents	28,995		58,982
Securities available for sale	239,741		219,859
Securities held to maturity	40,534		30,890
Loans held for sale	10,293		11,501
Loans receivable, net	588,203		546,450
Other investments, at cost	7,432		4,908
Interest receivable	3,236		2,925
Bank owned life insurance	20,638		20,417
Loan servicing rights	2,158		2,187
Liabilities:
Demand deposits	395,569		384,898
Time deposits	300,083		321,491
Federal Home Loan Bank advances	122,997		62,108
Junior subordinated debentures	14,433		14,433
Accrued interest payable	216		323
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	5		9
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	$ 13		$ 52
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and equivalents
Securities available for sale
Securities held to maturity
Loans held for sale
Loans receivable, net	$ 588,203		$ 546,450
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights	$ 2,158		$ 2,187
Liabilities:
Demand deposits
Time deposits	$ 300,083		$ 321,491
Federal Home Loan Bank advances
Junior subordinated debentures
Accrued interest payable
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	$ 5		$ 9
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	13		52
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and equivalents	28,995		58,982
Securities available for sale	$ 2,112		$ 2,101
Securities held to maturity
Loans held for sale
Loans receivable, net
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights
Liabilities:
Demand deposits
Time deposits
Federal Home Loan Bank advances
Junior subordinated debentures
Accrued interest payable
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and equivalents
Securities available for sale	$ 237,629		$ 217,758
Securities held to maturity	40,534		30,890
Loans held for sale	$ 10,293		$ 11,501
Loans receivable, net
Other investments, at cost	$ 7,432		$ 4,908
Interest receivable	3,236		2,925
Bank owned life insurance	$ 20,638		$ 20,417
Loan servicing rights
Liabilities:
Demand deposits	$ 395,569		$ 384,898
Time deposits
Federal Home Loan Bank advances	$ 122,997		$ 62,108
Junior subordinated debentures	14,433		14,433
Accrued interest payable	$ 216		$ 323

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Bank [Member]
Tier I capital to risk-weighted assets, Actual Amount	$ 114,336	$ 105,556
Tier I capital to risk-weighted assets, Actual Percent	18.76%	19.89%
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount	$ 36,577	$ 21,231
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent	6.00%	4.00%
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Amount	$ 48,769	$ 31,847
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Percent	8.00%	6.00%
Common Equity Tier 1 Capital, Actual Amount	$ 114,336
Common Equity Tier 1 Capital, Actual Percent	18.76%
Common Equity Tier 1 Capital, Required to be Categorized Adequately Capitalized, Amount	$ 27,433
Common Equity Tier 1 Capital, Required to be Categorized Adequately Capitalized, Percent	4.50%
Common Equity Tier 1 Capital, Required to meet Memorandum of Understanding, Amount	$ 39,625
Common Equity Tier 1 Capital, Required to meet Memorandum of Understanding, Percent	6.50%
Total Capital to risk-weighted assets, Actual Amount	$ 122,063	$ 112,246
Total Capital to risk-weighted assets, Actual Percent	20.02%	21.15%
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount	$ 48,769	$ 42,462
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent	8.00%	8.00%
Total Capital to risk-weighted assets, Required to meet Memorandum of Understanding, Amount	$ 60,962	$ 53,078
Total Capital to risk-weighted assets, Required to meet Memorandum of Understanding, Percent	10.00%	10.00%
Tier I capital to total average assets, Actual Amount	$ 114,336	$ 105,556
Tier I capital to total average assets, Actual Percent	12.47%	11.91%
Tier I capital to total average assets, Minimum capital adequacy Amount	$ 36,618	$ 35,440
Tier I capital to total average assets, Minimum capital adequacy Percent	4.00%	4.00%
Tier I capital to total average assets, Required to meet Memorandum of Understanding, Amount	$ 45,772	$ 44,300
Tier I capital to total average assets, Required to meet Memorandum of Understanding, Percent	5.00%	5.00%
Parent Company [Member]
Tier I capital to risk-weighted assets, Actual Amount	$ 132,570	$ 123,377
Tier I capital to risk-weighted assets, Actual Percent	21.70%	23.24%
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount	$ 36,611	$ 21,236
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent	6.00%	4.00%
Common Equity Tier 1 Capital, Actual Amount	$ 125,074
Common Equity Tier 1 Capital, Actual Percent	20.45%
Common Equity Tier 1 Capital, Required to be Categorized Adequately Capitalized, Amount	$ 27,458
Common Equity Tier 1 Capital, Required to be Categorized Adequately Capitalized, Percent	4.50%
Total Capital to risk-weighted assets, Actual Amount	$ 140,308	$ 130,067
Total Capital to risk-weighted assets, Actual Percent	22.97%	24.50%
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount	$ 48,814	$ 42,472
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent	8.00%	8.00%
Tier I capital to total average assets, Actual Amount	$ 132,570	$ 123,377
Tier I capital to total average assets, Actual Percent	14.46%	13.94%
Tier I capital to total average assets, Minimum capital adequacy Amount	$ 36,640	$ 35,398
Tier I capital to total average assets, Minimum capital adequacy Percent	4.00%	4.00%