Entegra Financial (ENFC) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
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, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,466,375
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 11,805	$ 8,421
Interest-earning deposits	46,140	32,229
Cash and cash equivalents	57,945	40,650
Investments - trading	4,991	4,714
Investments - available for sale	291,334	238,862
Investments - held to maturity (fair value of $31,970 and $41,812 at June 30, 2016 and December 31, 2015, respectively)	30,907	41,164
Other investments, at cost	10,798	8,834
Loans held for sale	7,300	8,348
Loans receivable	721,461	624,072
Allowance for loan losses	(8,940)	(9,461)
Fixed assets, net	20,600	17,673
Real estate owned	5,413	5,369
Interest receivable	4,260	3,554
Bank owned life insurance	21,059	20,858
Net deferred tax asset	15,957	18,830
Loan servicing rights	2,392	2,344
Goodwill	1,872	711
Core deposit intangible	1,059	590
Other assets	4,219	4,304
Total assets	1,192,627	1,031,416
Liabilities:
Deposits	828,874	716,617
Federal Home Loan Bank advances	193,500	153,500
Junior subordinated notes	14,433	14,433
Other borrowings	2,675	2,198
Post employment benefits	10,253	10,224
Accrued interest payable	265	213
Other liabilities	5,653	2,762
Total liabilities	1,055,653	899,947
Commitments and contingencies (Note 13)
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; 6,466,375 and 6,546,375 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively
Common stock held by Rabbi Trust, at cost; 14,000 shares at June 30, 2016 and December 31, 2015	(279)	(279)
Additional paid in capital	62,759	63,722
Retained earnings	71,987	69,762
Accumulated other comprehensive gain (loss)	2,507	(1,736)
Total shareholders equity	136,974	131,469
Total liabilities and shareholders equity	$ 1,192,627	$ 1,031,416

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Investment - held to maturity at fair value	$ 31,970	$ 41,812
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	6,466,375	6,546,375
Common stock, shares outstanding	6,466,375	6,546,375
Common Stock held by Rabbi Trust	14,000	14,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Interest and fees on loans	$ 8,255	$ 6,647	$ 15,461	$ 13,117
Interest on tax exempt loans	98	32	143	58
Taxable securities	1,422	1,278	2,880	2,514
Tax-exempt securities	306	84	449	154
Interest-earning deposits	54	22	90	46
Other	122	49	227	107
Total interest and dividend income	10,257	8,112	19,250	15,996
Interest expense:
Deposits	1,032	1,149	1,974	2,358
Federal Home Loan Bank advances	319	183	594	388
Junior subordinated notes	128	115	254	227
Other borrowings	30	26	56	52
Total interest expense	1,509	1,473	2,878	3,025
Net interest income	8,748	6,639	16,372	12,971
Provision for loan losses				(1,500)
Net interest income after provision for loan losses	8,748	6,639	16,372	14,471
Noninterest income:
Servicing income, net	75	19	191	105
Mortgage banking	220	85	360	340
Gain on sale of SBA loans	284	3	618	214
Gain on sale of investments, net	429	123	698	287
Other than temporary impairment on cost method investment		(3)		(3)
Service charges on deposit accounts	387	317	781	615
Interchange fees	382	322	724	600
Bank owned life insurance	94	133	201	262
Other	228	89	401	207
Total noninterest income	2,099	1,088	3,974	2,627
Noninterest expenses:
Compensation and employee benefits	4,257	3,817	8,267	7,514
Net occupancy	835	731	1,651	1,433
Federal Home Loan Bank prepayment penalty		1,762		1,762
Marketing and advertising	302	85	502	237
Federal deposit insurance	184	279	360	563
Professional and advisory	293	261	505	511
Data processing	400	282	751	562
Merger-related expenses	1,771		1,916
Net cost of operation of real estate owned	210	116	496	332
Other	1,061	848	2,144	1,843
Total noninterest expenses	9,313	8,181	16,592	14,757
Income (loss) before taxes	1,534	(454)	3,754	2,341
Income tax expense (benefit)	676	(17,559)	1,530	(17,379)
Net income	$ 858	$ 17,105	$ 2,224	$ 19,720
Earnings per common share:
Basic	$ 0.13	$ 2.61	$ 0.34	$ 3.01
Diluted	$ 0.13	$ 2.61	$ 0.34	$ 3.01
Weighted average common shares outstanding:
Basic	6,466,665	6,546,375	6,492,209	6,546,375
Diluted	6,482,079	6,546,375	6,506,485	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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 858	$ 17,105	$ 2,224	$ 19,720
Other comprehensive income (loss):
Change in unrealized holding gains and losses on securities available for sale	3,049	(2,172)	6,504	(152)
Reclassification adjustment for securities gains realized in net income	(429)	(123)	(698)	(287)
Amortization of unrealized loss on securities transferred to held to maturity	(43)	493	(43)	542
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale	94	(675)	295	54
Change in unrealized holding gains and losses on cash flow hedge	(45)		(45)
Other comprehensive income, before tax	2,808	(2,477)	6,626	157
Income tax effect related to items of other comprehensive income	(1,024)	675	(2,385)	(54)
Other comprehensive income, after tax	1,786	(1,802)	4,243	103
Comprehensive income	$ 2,644	$ 15,303	$ 6,467	$ 19,823

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Common Stock held by Rabbi Trust	Total
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
Stock compensation expense
Repurchase of common stock
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
Beginning Balance at Dec. 31, 2015		63,722	69,762	(1,736)	(279)	131,469
Beginning Balance (in shares) at Dec. 31, 2015	6,546,375
Net income			2,224			2,224
Other comprehensive income, net of tax				4,243		4,243
Stock compensation expense		427				427
Repurchase of common stock		(1,390)				(1,390)
Repurchase of common stock (in shares)	(80,000)
Ending Balance at Jun. 30, 2016		$ 62,759	$ 71,987	$ 2,507	$ (279)	$ 136,974
Ending Balance (in shares) at Jun. 30, 2016	6,466,375

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 2,224	$ 19,720
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and leasehold amortization	609	506
Security amortization, net	1,257	1,007
Trading account income	(178)
Provision for loan losses		(1,500)
Provision for real estate owned	508	91
Amortization of core deposit intangible	61
Share-based compensation	427
Deferred income tax expense (benefit)	1,598	(17,262)
Net increase (decrease) in deferred loan fees	(236)	(110)
Gain on sales of securities available for sale	(698)	(287)
Other than temporary impairment on cost method investment		3
Income on bank owned life insurance, net	(201)	(221)
Mortgage banking income, net	(360)	(340)
Gain on sale of SBA loans	(618)	(214)
Net realized (gain) loss on sale of real estate owned	(178)	(33)
Loans originated for sale	(14,897)	(14,950)
Proceeds from sale of loans originated for sale	16,923	16,630
Net change in operating assets and liabilities:
Interest receivable	(154)	(311)
Loan servicing rights	(48)	29
Other assets	69	(497)
Postemployment benefits	29	216
Accrued interest payable	22	(107)
Other liabilities	626	843
Net cash provided by operating activities	6,785	3,213
Activity for investment securities:
Purchases	(103,802)	(90,592)
Maturities/calls and principal repayments	24,760	31,890
Sales	75,709	25,707
Net increase in loans	(33,339)	(25,339)
Purchased loans		(20,369)
Proceeds from sale of real estate owned	1,222	560
Real estate owned capitalized costs		(8)
Purchase of fixed assets	(144)	(2,445)
Purchase of other investments, at cost	(1,410)	(2,674)
Redemptions of other investments, at cost		150
Net cash paid in business combination	(5,912)
Net cash used in investing activities	(42,916)	(83,120)
Cash flows from financing activities:
Net increase (decrease) in deposits	23,026	(11,264)
Net increase in escrow deposits	815	684
Proceeds from FHLB advances	40,000	100,500
Repayment of FHLB advances	(9,025)	(40,000)
Repurchase of common stock	(1,390)
Net cash provided by financing activities	53,426	49,920
Increase (decrease) in cash and cash equivalents	17,295	(29,987)
Cash and cash equivalents, beginning of period	40,650	58,982
Cash and cash equivalents, end of period	57,945	28,995
Cash paid during the year for:
Interest on deposits and other borrowings	2,945	3,132
Acquisitions
Assets acquired	110,196
Liabilities assumed	97,877
Net assets	12,319
Noncash investing and financing activities:
Real estate acquired in satisfaction of mortgage loans	673	1,689
Loans originated for disposition of real estate owned		794
Investments to be settled	$ 2,293

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	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 Entegra Bank (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, Entegra Services, Inc., which was inactive as of June 30, 2016. 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 15, 2016. 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. Acquisition Activities The Company accounts for business combinations under the acquisition method of accounting. Assets acquired and liabilities assumed are measured and recorded at fair value at the date of acquisition, including identifiable intangible assets. If the fair value of net assets purchased exceeds the fair value of consideration paid, a bargain purchase gain is recognized at the date of acquisition. Conversely, if the consideration paid exceeds the fair value of the net assets acquired, goodwill is recognized at the acquisition date. Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. The determination of the fair value of loans acquired takes into account credit quality deterioration and probability of loss; therefore, the related allowance for loan losses is not carried forward. All identifiable intangible assets that are acquired in a business combination are recognized at fair value on the acquisition date. Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). Deposit liabilities and the related depositor relationship intangible assets may be exchanged in observable exchange transactions. As a result, the depositor relationship intangible asset is considered identifiable, because the separability criterion has been met. 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 as described in Footnote 16. Recent Accounting Standards Updates In January 2016, the Financial Accounting Standards Board (“FASB”) amended the Financial Instruments In March 2016, the FASB amended the Revenue from Contracts with Customers In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued amendments to Accounting Standards Update 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 2. INVESTMENT SECURITIES The amortized cost and estimated fair values of securities available for sale as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 13,100 $ 134 $ — $ 13,234 Municipal securities 94,766 2,879 (4 ) 97,641 Mortgage-backed securities 169,306 2,081 (416 ) 170,971 U.S. Treasury securities 1,499 58 — 1,557 Corporate debt securities 7,198 117 (3 ) 7,312 Mutual funds 609 10 — 619 $ 286,478 $ 5,279 $ (423 ) $ 291,334 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 25,633 $ 123 $ (36 ) $ 25,720 Municipal securities 39,751 311 (204 ) 39,858 Mortgage-backed securities 172,327 276 (1,429 ) 171,174 U.S. Treasury securities 1,500 10 — 1,510 Mutual funds 602 — (2 ) 600 $ 239,813 $ 720 $ (1,671 ) $ 238,862 The amortized cost and estimated fair values of securities held to maturity (“HTM”) as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 2,723 $ 283 $ — $ 3,006 Municipal securities 12,625 525 (7 ) 13,143 Mortgage-backed securities 4,531 71 — 4,602 U.S. Treasury securities 1,002 6 — 1,008 Corporate debt securities 10,026 193 (8 ) 10,211 $ 30,907 $ 1,078 $ (15 ) $ 31,970 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 15,877 $ 645 $ (23 ) $ 16,499 Municipal securities 12,428 199 (93 ) 12,534 Mortgage-backed securities 4,834 4 (62 ) 4,776 U.S. Treasury securities 1,002 — (7 ) 995 Corporate debt securities 7,023 25 (40 ) 7,008 $ 41,164 $ 873 $ (225 ) $ 41,812 Information pertaining to the activity for the three and six month periods ended June 30, 2016 and 2015 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) 2016 2015 2016 2015 Beginning unrealized loss related to $ 472 $ 1,838 $ 903 $ 1,887 Additions for transfers to HTM — — — — Amortization of unrealized losses on (139 ) (493 ) (570 ) (542 ) Ending unrealized loss in AOCI related to $ 333 $ 1,345 $ 333 $ 1,345 The increase in amortization during the three months ended June 30, 2015 was due to an increase in securities called. Information pertaining to securities with gross unrealized losses at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Held to Maturity: Municipal securities $ — $ — $ 1,204 $ 7 $ 1,204 $ 7 Corporate debt securities 743 8 — — 743 8 $ 743 $ 8 $ 1,204 $ 7 $ 1,947 $ 15 Available for Sale: Municipal securities $ 1,153 $ 3 $ 359 $ 1 $ 1,512 $ 4 Mortgage-backed securities 39,310 271 11,705 145 51,015 416 Corporate debt securities 1,020 3 — — 1,020 3 $ 41,483 $ 277 $ 12,064 $ 146 $ 53,547 $ 423 December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,705 $ 23 $ — $ — $ 5,705 $ 23 Municipal securities 4,365 93 — — 4,365 93 Mortgage-backed securities 2,693 62 — — 2,693 62 U.S. Treasury securities 995 7 — — 995 7 Corporate debt securities 4,911 40 — — 4,911 40 $ 18,669 $ 225 $ — $ — $ 18,669 $ 225 Available for Sale: U.S. government agencies $ 13,317 $ 36 $ — $ — $ 13,317 $ 36 Municipal securities 18,769 176 947 28 19,716 204 Mortgage-backed securities 102,419 926 20,905 503 123,324 1,429 Mutual funds 600 2 — — 600 2 $ 135,105 $ 1,140 $ 21,852 $ 531 $ 156,957 $ 1,671 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, 2016 and December 31, 2015 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, 2016 Less Than 12 Months More Than 12 Months Total U.S. government agencies 9 5 14 Municipal securities 1 3 4 Mortgage-backed securities 11 5 16 Corporate debt securities 3 — 3 24 13 37 December 31, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 13 — 13 Municipal securities 51 2 53 Mortgage-backed securities 71 15 86 U.S. Treasury securities 1 — 1 Corporate debt securities 9 — 9 Mutual funds 1 — 1 146 17 163 For the three and six months ended June 30, 2016 and 2015 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, 2016 2015 2016 2015 (Dollars in thousands) Gross proceeds $ 41,204 $ 12,010 $ 75,709 $ 25,707 Gross realized gains 445 123 732 307 Gross realized losses 16 — 34 20 The Company had securities pledged against deposits and borrowings of approximately $126.4 million and $69.6 million at June 30, 2016 and December 31, 2015, respectively. The amortized cost and estimated fair value of investments in debt securities at June 30, 2016, 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 Fair Value (Dollars in thousands) Less than 1 year $ 2,046 $ 2,058 Over 1 year through 5 years 21,312 21,635 After 5 years through 10 years 24,762 25,382 Over 10 years 69,052 71,288 117,172 120,363 Mortgage-backed securities 169,306 170,971 Total $ 286,478 $ 291,334 Held to Maturity Amortized Fair Value (Dollars in thousands) Over 1 year through 5 years $ 1,002 $ 1,008 After 5 years through 10 years 10,492 10,702 Over 10 years 14,882 15,658 26,376 27,368 Mortgage-backed securities 4,531 4,602 Total $ 30,907 $ 31,970

ACQUISITION ACTIVITIES

ACQUISITION ACTIVITIES	6 Months Ended
	Jun. 30, 2016
Acquisition Activities
ACQUISITION ACTIVITIES	NOTE 3. ACQUISITION ACTIVITIES The Company has determined that the acquisition described below constitutes a business combination as defined in ASC Topic 805, Business Combinations Fair Value Measurements On April 1, 2016, the Bank acquired Old Town Bank of Waynesville, North Carolina. In connection with the acquisition, the Bank acquired $110.2 million of assets and assumed $97.9 million of liabilities. Total consideration transferred was $13.5 million of cash. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $1.2 million, none of which is deductible for tax purposes. Loans purchased with evidence of credit impairment were not material. The purchased assets and assumed liabilities were recorded at their acquisition date fair values, and are summarized in the table below ( in thousands. As recorded by Fair Value As recorded by Old Town Bank Adjustments (1) the Company Assets Cash and cash equivalents $ 7,573 $ — $ 7,573 Investments 30,882 246 31,128 Loans 64,736 272 65,008 Fixed assets 3,414 (22 ) 3,392 Interest receivable 552 — 552 Core deposit intangible — 530 530 Other real estate owned 880 43 923 Deferred tax asset 259 200 459 Other assets 937 (306 ) 631 Total assets acquired $ 109,233 $ 963 $ 110,196 Liabilities Deposits $ 88,059 $ 648 $ 88,707 FHLB advances 9,000 25 9,025 Accrued Interest payable 30 — 30 Other liabilities 125 (10 ) 115 Total liabilities assumed 97,214 663 97,877 Excess of assets acquired over liabilities assumed $ 12,019 $ 300 $ 12,319 Purchase price 13,486 Goodwill $ 1,167 (1) Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition.

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
LOANS RECEIVABLE	NOTE 4. LOANS RECEIVABLE Loans receivable as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 December 31, 2015 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 268,699 $ 248,633 Commercial real estate 276,371 214,413 Home equity loans and lines of credit 51,675 53,446 Residential construction 14,270 7,848 Other construction and land 52,576 57,316 Total real estate loans 663,591 581,656 Commercial and industrial 55,530 41,046 Consumer 5,098 3,639 Total commercial and consumer 60,628 44,685 Loans receivable, gross 724,219 626,341 Less: Net deferred loan fees (1,152 ) (1,388 ) Unamortized premium 467 557 Unamortized discount (2,073 ) (1,438 ) Loans receivable, net $ 721,461 $ 624,072 The Bank had $126.2 million and $119.5 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2016 and December 31, 2015, respectively. The Bank also had $81.8 million and $88.4 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2016 and December 31, 2015, respectively. Included in loans receivable and other borrowings at June 30, 2016 are $2.7 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, 2016 and 2015: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2016 2015 2016 2015 Discount on purchased loans, beginning of period $ 1,361 $ 1,587 $ 1,438 $ 1,487 Additional discount for new purchases 870 — 870 484 Accretion (158 ) (88 ) (235 ) (177 ) Discount applied to charge-offs — — — (295 ) Discount on purchased loans, end of period $ 2,073 $ 1,499 $ 2,073 $ 1,499

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2016
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, 2016 One-to four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,725 $ 3,808 $ 959 $ 143 $ 1,177 $ 536 $ 150 $ 9,498 Provision — — — — — — — — Charge-offs (52 ) (431 ) (93 ) — (120 ) (10 ) (16 ) (722 ) Recoveries 6 2 21 32 7 4 92 164 Ending balance $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Three Months Ended June 30, 2015 One-to four Commercial Home Equity and Residential Other 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 Six Months Ended June 30, 2016 One-to four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision 293 587 (214 ) (135 ) 17 (185 ) (363 ) — Charge-offs (98 ) (431 ) (130 ) — (437 ) (10 ) (26 ) (1,132 ) Recoveries 29 2 134 32 84 122 208 611 Ending balance $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Six Months Ended June 30, 2015 One-to four Commercial Home Equity and Residential Other 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 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, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 242 $ 63 $ 6 $ — $ 164 $ 34 $ — $ 509 Collectively evaluated for impairment 2,437 3,316 881 175 900 496 226 8,431 $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Loans Receivable Individually evaluated for impairment $ 4,689 $ 9,940 $ 779 $ — $ 1,833 $ 311 $ — $ 17,552 Collectively evaluated for impairment 264,010 266,431 50,896 14,270 50,743 55,219 5,098 706,667 $ 268,699 $ 276,371 $ 51,675 $ 14,270 $ 52,576 $ 55,530 $ 5,098 $ 724,219 December 31, 2015 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 344 $ 61 $ 6 $ — $ 61 $ 38 $ — $ 510 Collectively evaluated for impairment 2,111 3,160 1,091 278 1,339 565 407 8,951 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Loans Receivable Individually evaluated for impairment $ 6,315 $ 9,013 $ 313 $ — $ 1,509 $ 318 $ — $ 17,468 Collectively evaluated for impairment 242,318 205,400 53,133 7,848 55,807 40,728 3,639 608,873 $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 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 material 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 is 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, 2016 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 63 $ — $ — $ — $ 10,504 $ — $ 10,567 2 — 4,368 — — — 1,484 — 5,852 3 26,997 22,970 1,528 472 1,094 3,451 — 56,512 4 68,958 126,695 3,726 7,636 8,869 27,775 70 243,729 5 25,987 91,156 3,604 1,419 24,636 9,848 347 156,997 6 2,145 14,910 7 1,216 1,378 262 — 19,918 7 4,628 14,266 466 — 2,207 446 — 22,013 $ 128,715 $ 274,428 $ 9,331 $ 10,743 $ 38,184 $ 53,770 $ 417 $ 515,588 Ungraded Loan Exposure: Performing $ 139,296 $ 1,943 $ 42,281 $ 3,527 $ 14,326 $ 1,760 $ 4,681 $ 207,814 Nonperforming 688 — 63 — 66 — — 817 Subtotal $ 139,984 $ 1,943 $ 42,344 $ 3,527 $ 14,392 $ 1,760 $ 4,681 $ 208,631 Total $ 268,699 $ 276,371 $ 51,675 $ 14,270 $ 52,576 $ 55,530 $ 5,098 $ 724,219 December 31, 2015 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 65 $ — $ — $ — $ 10,336 $ — $ 10,401 2 — 4,446 — — — 99 — 4,545 3 18,518 11,396 1,358 525 1,479 1,734 — 35,010 4 46,942 74,542 1,961 2,036 13,850 18,586 1 157,918 5 33,886 97,469 6,648 1,347 22,864 9,274 592 172,080 6 2,903 13,171 — 1,106 1,718 297 — 19,195 7 3,335 13,106 — — 579 458 — 17,478 $ 105,584 $ 214,195 $ 9,967 $ 5,014 $ 40,490 $ 40,784 $ 593 $ 416,627 Ungraded Loan Exposure: Performing $ 141,771 $ 218 $ 43,158 $ 2,834 $ 16,707 $ 262 $ 3,046 $ 207,996 Nonperforming 1,278 — 321 — 119 — — 1,718 Subtotal $ 143,049 $ 218 $ 43,479 $ 2,834 $ 16,826 $ 262 $ 3,046 $ 209,714 Total $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 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, 2016 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 3,914 $ 2,787 $ 1,866 $ 8,567 $ 260,132 $ 268,699 Commercial real estate 2,811 478 3,079 6,368 270,003 276,371 Home equity and lines of credit 201 195 530 926 50,749 51,675 Residential construction 224 218 — 442 13,828 14,270 Other construction and land 1,600 19 1,387 3,006 49,570 52,576 Commercial 132 82 239 453 55,077 55,530 Consumer 16 1 1 18 5,080 5,098 Total $ 8,898 $ 3,780 $ 7,102 $ 19,780 $ 704,439 $ 724,219 December 31, 2015 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 5,610 $ 1,260 $ 1,205 $ 8,075 $ 240,558 $ 248,633 Commercial real estate 1,585 — 605 2,190 212,223 214,413 Home equity and lines of credit 369 38 322 729 52,717 53,446 Residential construction — — — — 7,848 7,848 Other construction and land 208 397 138 743 56,573 57,316 Commercial 625 — — 625 40,421 41,046 Consumer 12 4 — 16 3,623 3,639 Total $ 8,409 $ 1,699 $ 2,270 $ 12,378 $ 613,963 $ 626,341 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of June 30, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Recorded Balance Unpaid Principal Specific Recorded Balance Unpaid Principal Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,658 $ 2,712 $ — $ 4,289 $ 4,403 $ — Commercial real estate 8,178 10,193 — 7,226 8,809 — Home equity and lines of credit 679 794 — 213 328 — Residential construction — — — — — — Other construction and land 900 1,069 — 658 818 — Commercial — — — — — — $ 12,415 $ 14,768 $ — $ 12,386 $ 14,358 $ — Loans with a valuation allowance One-to four-family residential $ 2,031 $ 2,031 $ 243 $ 2,026 $ 2,026 $ 344 Commercial real estate 1,762 1,762 63 1,787 1,787 61 Home equity and lines of credit 100 100 5 100 100 6 Residential construction — — — — — — Other construction and land 933 1,028 164 851 851 61 Commercial 311 311 34 318 318 38 $ 5,137 $ 5,232 $ 509 $ 5,082 $ 5,082 $ 510 Total One-to four-family residential $ 4,689 $ 4,743 $ 243 $ 6,315 $ 6,429 $ 344 Commercial real estate 9,940 11,955 63 9,013 10,596 61 Home equity and lines of credit 779 894 5 313 428 6 Residential construction — — — — — — Other construction and land 1,833 2,097 164 1,509 1,669 61 Commercial 311 311 34 318 318 38 $ 17,552 $ 20,000 $ 509 $ 17,468 $ 19,440 $ 510 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, 2016 2015 2016 2015 Average Interest Income Average Interest Income Average Interest Income Average Interest Income (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,681 $ 19 $ 5,598 $ 45 $ 2,690 $ 55 $ 5,607 $ 87 Commercial real estate 8,416 13 9,536 114 8,419 59 9,555 214 Home equity and lines of credit 679 3 713 — 679 5 714 1 Residential construction — — — — — — — — Other construction and land 908 8 1,239 8 912 16 1,241 18 Commercial — — — — — — — — $ 12,684 $ 43 $ 17,086 $ 167 $ 12,700 $ 135 $ 17,117 $ 320 Loans with a valuation allowance One-to four-family residential $ 2,036 $ — $ 2,190 $ 22 $ 2,043 $ 24 $ 2,198 $ 44 Commercial real estate 1,768 14 3,186 35 1,775 41 3,196 69 Home equity and lines of credit 100 1 431 1 100 2 431 2 Residential construction — — — — — — — — Other construction and land 985 8 1,009 10 989 18 1,014 21 Commercial 312 4 326 5 315 9 326 10 $ 5,201 $ 27 $ 7,142 $ 73 $ 5,222 $ 94 $ 7,165 $ 146 Total One-to four-family residential $ 4,717 $ 19 $ 7,788 $ 67 $ 4,733 $ 79 $ 7,805 $ 131 Commercial real estate 10,184 27 12,722 149 10,194 100 12,751 283 Home equity and lines of credit 779 4 1,144 1 779 7 1,145 3 Residential construction — — — — — — — — Other construction and land 1,893 16 2,248 18 1,901 34 2,255 39 Commercial 312 4 326 5 315 9 326 10 $ 17,885 $ 70 $ 24,228 $ 240 $ 17,922 $ 229 $ 24,282 $ 466 Nonperforming Loans The following table summarizes the balances of nonperforming loans as of June 30, 2016 and December 31, 2015. 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, 2016 December 31, 2015 (Dollars in thousands) One-to four-family residential $ 2,246 $ 2,893 Commercial real estate 5,179 3,628 Home equity loans and lines of credit 528 320 Residential construction — — Other construction and land 1,434 384 Commercial 48 55 Consumer 1 — Non-performing loans $ 9,436 $ 7,280 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: June 30, 2016 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,138 $ 211 $ 3,349 Commercial real estate 4,451 2,860 7,311 Home equity and lines of credit 213 — 213 Residential construction — — — Other construction and land 1,490 406 1,896 Commercial 311 11 322 $ 9,603 $ 3,488 $ 13,091 December 31, 2015 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 4,182 $ 211 $ 4,393 Commercial real estate 5,134 2,922 8,056 Home equity and lines of credit 313 — 313 Residential construction — — — Other construction and land 1,259 250 1,509 Commercial 318 12 330 $ 11,206 $ 3,395 $ 14,601 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, 2016 Six Months Ended June 30, 2016 (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 — $ — $ — — $ — $ — — $ — $ — — $ — $ — 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 There were no TDRs that defaulted during the three month and six month periods ending June 30, 2016 and 2015 and which were modified as TDRs within the previous 12 months.

REAL ESTATE OWNED

REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015. June 30 December 31, (Dollars in thousands) 2016 2015 Real estate owned, gross $ 6,769 $ 6,741 Less: Valuation allowance 1,356 1,372 Real estate owned, net $ 5,413 $ 5,369 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Valuation allowance, beginning $ 1,651 $ 1,606 $ 1,372 $ 1,760 Provision charged to expense 166 23 508 91 Reduction due to disposal (461 ) (71 ) (524 ) (293 ) Valuation allowance, ending $ 1,356 $ 1,558 $ 1,356 $ 1,558 As of June 30, 2016 and December 31, 2015, the Company had $0.3 million and $0.7 million, respectively, in loans secured by residential real estate properties for which formal foreclosure proceedings were in process. As of June 30, 2016 and December 31, 2015, the Company had $1.9 million and $1.4 million, respectively, of residential real estate properties included in real estate owned.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2016
Banking and Thrift [Abstract]
DEPOSITS	NOTE 7. DEPOSITS The following table summarizes deposit balances and interest expense by type of deposit as of and for the six months ended June 30, 2016 and 2015 and the year ended December 31, 2015. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2016 2015 2015 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 127,010 $ — $ 95,604 $ — $ 121,062 $ — Interest-bearing demand 116,648 94 98,447 76 103,198 136 Money Market 236,750 324 171,475 294 180,377 558 Savings 38,057 26 30,043 16 35,838 33 Time Deposits 310,409 1,530 296,968 1,972 276,142 3,607 $ 828,874 $ 1,974 $ 692,537 $ 2,358 $ 716,617 $ 4,334

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
BORROWINGS	NOTE 8. BORROWINGS The scheduled maturities and respective weighted average rates of outstanding FHLB advances are as follows for the dates indicated: June 30, 2016 December 31, 2015 Year of Balance Weighted Balance Weighted (Dollars in thousands) 2016 130,000 0.58 % 130,000 0.49 % 2017 38,000 0.88 % 8,000 1.23 % 2018 12,000 0.91 % 2,000 1.25 % 2019 12,500 1.82 % 12,500 1.82 % 2020 1,000 1.78 % 1,000 1.78 % $ 193,500 0.75 % $ 153,500 0.65 %

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 9. Derivative Financial Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to business and operational risks through management of its core business activities. The Company manages interest rate risk primarily by managing the amount, sources, and duration of its investment securities portfolio and borrowings and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Derivative financial instruments are used to manage differences in the amount, timing, and duration of known or expected cash receipts or payments principally related to loans and borrowings. The table below presents the fair value of the Company’s derivative financial instruments as of the dates indicated as well as their classification on the consolidated balance sheet (in thousands). Fair Value Balance Sheet Location June 30, December 31, Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other liabilities $ 43 $ — Total $ 43 $ — Not designated as hedges: Mortgage banking - loan commitment Other assets $ 99 $ 30 Mortgage banking - forward sales commitment Other assets 19 15 Total $ 118 $ 45 Derivative contracts that are not accounted for as hedging instruments under ASC 815, Derivatives and Hedging The Company’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. At June 30, 2016, the Company had one interest rate swap with a notional amount of $14.0 million that was designated as a cash flow hedge of the interest expense on junior subordinated notes. The swap contract involves the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the four year life of the agreement without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense when the swaps become effective, as interest payments are made on the Company’s LIBOR based, variable-rate junior subordinated debt. The table below presents the effect of the Company’s cash flow hedge on the Consolidated Statement of Income (in thousands). Amount of Gain(Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Gain(Loss) Reclassifed from Accumulated Other Comprehensive Income into Income (Effective Portion) For the three and June 30, 2016 December 31, 2015 Location 2016 2015 Interest rate swap $ (28 ) $ — Interest Expense $ 1 $ — The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. The Company manages dealer credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements and counterparty limits. The agreements contain collateral arrangements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. The Company has agreements with its derivative counterparties that contain a provision in which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could also be declared in default on its derivative obligations. Furthermore, certain agreements covering the Company’s derivative instruments contain provisions that require the Company to maintain its status as a well / adequately capitalized institution. These provisions enable the counterparties to the derivative instruments to request immediate payment or require the Company to post additional collateral.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10. INCOME TAXES During 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 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. As of June 30, 2016 and December 31, 2015, $0.3 million and $0.6 million in valuation allowance related to net deferred tax assets on investment securities remains in accumulated other comprehensive income. 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 1.5 years. The components of net deferred taxes as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, December 31, 2016 2015 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 10,445 $ 10,750 Allowance for loan losses 3,303 3,557 Deferred compensation and post employment benefits 3,415 3,498 North Carolina net operating loss 698 988 Valuation reserve for other real estate 501 516 Non-accrual interest 325 286 Tax credits and other carryforwards 308 197 Deferred gains 195 154 Unrealized losses on securities — 697 Loan basis difference 288 — Deposit premium 209 — Other 740 421 Gross deferred tax assets 20,427 21,064 Deferred tax liabilities: Fixed assets 437 499 Loan servicing rights 884 881 Deferred loan costs 908 708 Prepaid expenses 149 146 Unrealized gains on securities 1,700 — Other 392 — Total deferred tax liabilities 4,470 2,234 Net deferred tax asset $ 15,957 $ 18,830

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings per common share:
EARNINGS PER SHARE	NOTE 11. 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 For the Six Months Numerator: Net income $ 858 $ 2,224 Denominator: Weighted-average common shares outstanding - basic 6,466,665 6,492,209 Effect of dilutive shares 15,414 14,276 Weighted-average common shares outstanding - diluted 6,482,079 6,506,485 Earnings per share - basic $ 0.13 $ 0.34 Earnings per share - diluted $ 0.13 $ 0.34 (Dollars in thousands, except per share amounts) For the Three Months For the Six Months 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 For the three and six months ended June 30, 2016, all of the 411,500 outstanding stock options remain anti-dilutive and have not been included in calculating diluted earnings per share. There were no stock options outstanding during the six months ended June 30, 2015. For the three and six months ended June 30, 2016, all of the 178,300 outstanding restricted stock units were dilutive and included in calculating diluted earnings per share. There were no restricted stock units outstanding during the six months ended June 30, 2015.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 12. 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, 2016 and 2015. Three Months Ended June 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ 1,394 $ (295 ) $ (378 ) $ — $ 721 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 94 — 94 Change in net unrealized holding gains and losses on securities available for sale 3,049 — — — 3,049 Reclassification adjustment for net securities gains realized in net income (429 ) — — — (429 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 139 — — 139 Change in unrealized holding loss on cash flow hedge — — — (43 ) (43 ) Income tax effect (984 ) (55 ) — 15 (1,024 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Three Months Ended June 30, 2015 (Dollars in thousands) Balance, beginning of period $ 910 $ (1,135 ) $ (139 ) $ — $ (364 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — (675 ) — (675 ) Change in unrealized holding gains and 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 effect 873 (198 ) — — 675 Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 ) Six Months Ended June 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 295 — 295 Change in net unrealized holding gains and losses on securities available for sale 6,504 — — — 6,504 Reclassification adjustment for net securities gains realized in net income (698 ) — — — (698 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 570 — — 570 Change in unrealized holding loss on cash flow hedge — — — (43 ) (43 ) Income tax effect (2,182 ) (218 ) — 15 (2,385 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Six Months Ended June 30, 2015 (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ — $ (2,269 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 54 — 54 Change in unrealized holding gains and 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 effect 163 (217 ) — — (54 ) Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 ) 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, 2016 2015 2016 2015 (Dollars in thousands) (Dollars in thousands) Gain on sale of investments, net $ 429 $ 123 $ 698 $ 287 Tax effect — — — — Impact, net of tax 429 123 698 287 Interest income - taxable securities 139 493 570 542 Tax effect — — — — Impact, net of tax 139 493 570 542 Total reclassifications, net of tax $ 568 $ 616 $ 1,268 $ 829

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. 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, 2016 (Dollars in thousands) Lines of credit $ 94,239 Standby letters of credit 826 $ 95,065 As of June 30, 2016, the Company had outstanding commitments to originate loans as follows: June 30, 2016 Amount Range of Rates (Dollar in thousands) Fixed $ 24,280 2.75% to 7.99% Variable 27,706 3.50% to 6.49% $ 51,986 The allowance for unfunded commitments was $0.1 million at June 30, 2016 and December 31, 2015. 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, 2016 and December 31, 2015. 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, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	NOTE 14. 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 Available for Sale We obtain fair values for debt securities available for sale from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities available for sale 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. Trading securities represent investments in exchange traded mutual funds 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, forward sale commitments and interest rate swaps. Interest rate lock commitments and forward sale commitments 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. Interest rate swaps are valued by a third party using significant assumptions that are observable in the market and can be corroborated by market data. The Company classifies interest rate swaps as Level 2. 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. Securities Held to Maturity We obtain fair values for debt securities held to maturity from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities held to maturity 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. 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. Other Borrowings 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. 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, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets - mutual funds $ 4,991 $ — $ — $ 4,991 Securities available for sale: U.S. government agencies — 13,234 — 13,234 Municipal securities — 97,641 — 97,641 Mortgage-backed securities — 170,971 — 170,971 U.S. Treasury securities 1,557 — — 1,557 Corporate debt securities — 7,312 — 7,312 Mutual funds 619 — — 619 7,167 289,158 — 296,325 Loan servicing rights — — 2,392 2,392 Forward sales commitments — — 19 19 Interest rate lock commitments — — 99 99 Total assets $ 7,167 $ 289,158 $ 2,510 $ 298,835 Derivative liabilities $ — $ 43 $ — $ 43 December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 4,714 $ — $ — $ 4,714 Securities available for sale: U.S. government agencies — 25,720 — 25,720 Municipal securities — 39,858 — 39,858 Mortgage-backed securities — 171,174 — 171,174 U.S. Treasury securities 1,510 — — 1,510 Mutual funds 600 — — 600 6,824 236,752 — 243,576 Loan servicing rights — — 2,344 2,344 Forward sales commitments — — 16 16 Interest rate lock commitments — — 30 30 Total assets $ 6,824 $ 236,752 $ 2,390 $ 245,966 There were no liabilities measured on a recurring basis at December 31, 2015. 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, 2016 2015 2016 2015 (Dollars in thousands) Balance at beginning of period $ 2,478 $ 2,368 $ 2,390 $ 2,248 Loan servicing right activity, included in servicing income, net Capitalization from loans sold 131 83 259 216 Fair value adjustment (138 ) (157 ) (212 ) (245 ) Mortgage derivative gains (losses) included in Other income 39 (118 ) 73 (43 ) Balance at end of period $ 2,510 $ 2,176 $ 2,510 $ 2,176 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, 2016 or December 31, 2015. June 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 3,055 $ 3,055 Commercial real estate — — 8,178 8,178 Home equity loans and lines of credit — — 679 679 Other construction and land — — 999 999 Real estate owned: One-to four family residential — — 1,958 1,958 Commercial real estate — — 1,008 1,008 Other construction and land — — 2,447 2,447 Total assets $ — $ — $ 18,324 $ 18,324 December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 4,163 $ 4,163 Commercial real estate — — 7,226 7,226 Home equity loans and lines of credit — — 213 213 Other construction and land — — 658 658 Real estate owned: One-to four family residential — — 1,384 1,384 Commercial real estate — — 1,123 1,123 Other construction and land — — 2,862 2,862 Total assets $ — $ — $ 17,629 $ 17,629 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2016 or December 31, 2015. Impaired loans totaling $4.6 million and $5.2 million at June 30, 2016 and December 31, 2015, respectively, 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, 2016. Valuation Unobservable Input General 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 5 - 35% Discount rate 12% - 14% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 108% The approximate carrying and estimated fair value of financial instruments are summarized below: Fair Value Measurements at June 30, 2016 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 57,945 $ 57,945 $ 57,945 $ — $ — Trading securities 4,991 4,991 4,991 — — Securities available for sale 291,334 291,334 2,176 289,158 — Securities held to maturity 30,907 31,970 1,002 30,968 — Loans held for sale 7,300 8,011 — 8,011 — Loans receivable, net 721,461 714,929 — — 714,929 Other investments, at cost 10,798 10,798 — 10,798 — Interest receivable 4,260 4,260 — 4,260 — Bank owned life insurance 21,059 21,059 — 21,059 — Loan servicing rights 2,392 2,392 — — 2,392 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 99 99 — — 99 Liabilities: Demand deposits $ 518,465 518,465 $ — $ 518,465 $ — Time deposits 310,409 311,243 — — 311,243 Federal Home Loan Bank advances 193,500 193,946 — 193,946 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,675 2,853 — — 2,853 Accrued interest payable 265 265 — 265 — Interest rate swap 43 43 — 43 — Fair Value Measurements at December 31, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 40,650 $ 40,650 $ 40,650 $ — $ — Trading securities 4,714 4,714 4,714 — — Securities available for sale 238,862 238,862 2,110 236,752 — Securities held to maturity 41,164 41,812 995 40,817 — Loans held for sale 8,348 8,952 — 8,952 — Loans receivable, net 624,072 620,516 — — 620,516 Other investments, at cost 8,834 8,834 — 8,834 — Interest receivable 3,554 3,554 — 3,554 — Bank owned life insurance 20,858 20,858 — 20,858 — Loan servicing rights 2,344 2,344 — — 2,344 Forward sales commitments 16 16 — — 16 Interest rate lock commitments 30 30 — — 30 Liabilities: Demand deposits $ 440,475 440,475 $ — $ 440,475 $ — Time deposits 276,142 275,403 — — 275,403 Federal Home Loan Bank advances 153,500 153,441 — 153,441 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 213 213 — 213 —

SHARE REPURCHASES

SHARE REPURCHASES	6 Months Ended
	Jun. 30, 2016
Banking and Thrift [Abstract]
SHARE REPURCHASES	NOTE 15. SHARE REPURCHASES On January 28, 2016, the Company announced that the Board of Directors had authorized the repurchase of up to 327,318 shares of the Company’s common stock through January 27, 2017. The authorization represented approximately 5% of the Company’s shares outstanding as of December 31, 2015. The following table summarizes share repurchase activity through June 30, 2016: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1, 2016 to January 31, 2016 — $ — — — February 1, 2016 to February 29, 2016 40,621 $ 17.04 40,621 286,697 March 1, 2016 to March 31, 2016 33,382 $ 17.70 33,382 253,315 April 1, 2016 to April 30, 2016 5,997 $ 17.65 5,997 247,318 May 1, 2016 to May 31, 2016 — $ — — 247,318 June 1, 2016 to June 30, 2016 — $ — — 247,318 Total year-to-date 2016 80,000 $ 17.42 80,000 247,318

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
SUBSEQUENT EVENTS	NOTE 16. SUBSEQUENT EVENTS 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 August 2, 2016, the revenue target for the fiscal year ended June 30, 2016 was met, resulting in a reduction of the state income tax rate to 3% effective January 1, 2017. The Company treated this announcement as a subsequent event and recorded a $0.3 million reduction in the net deferred tax asset as of June 30, 2016. As such, these financial results differ from the earnings reported on Form 8-K dated July 21, 2016.

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
Organization And Basis Of Presentation Policies
Organization	Organization Entegra Financial Corp. (the “Company”) was incorporated on May 31, 2011 and became the holding company for Entegra Bank (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, Entegra Services, Inc., which was inactive as of June 30, 2016. 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 15, 2016. 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.
Acquisition Activities	Acquisition Activities The Company accounts for business combinations under the acquisition method of accounting. Assets acquired and liabilities assumed are measured and recorded at fair value at the date of acquisition, including identifiable intangible assets. If the fair value of net assets purchased exceeds the fair value of consideration paid, a bargain purchase gain is recognized at the date of acquisition. Conversely, if the consideration paid exceeds the fair value of the net assets acquired, goodwill is recognized at the acquisition date. Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. The determination of the fair value of loans acquired takes into account credit quality deterioration and probability of loss; therefore, the related allowance for loan losses is not carried forward. All identifiable intangible assets that are acquired in a business combination are recognized at fair value on the acquisition date. Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). Deposit liabilities and the related depositor relationship intangible assets may be exchanged in observable exchange transactions. As a result, the depositor relationship intangible asset is considered identifiable, because the separability criterion has been met.
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 as described in Footnote 16.
Recent Accounting Standards Updates	Recent Accounting Standards Updates In January 2016, the Financial Accounting Standards Board (“FASB”) amended the Financial Instruments In March 2016, the FASB amended the Revenue from Contracts with Customers In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued amendments to Accounting Standards Update 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 13,100 $ 134 $ — $ 13,234 Municipal securities 94,766 2,879 (4 ) 97,641 Mortgage-backed securities 169,306 2,081 (416 ) 170,971 U.S. Treasury securities 1,499 58 — 1,557 Corporate debt securities 7,198 117 (3 ) 7,312 Mutual funds 609 10 — 619 $ 286,478 $ 5,279 $ (423 ) $ 291,334 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 25,633 $ 123 $ (36 ) $ 25,720 Municipal securities 39,751 311 (204 ) 39,858 Mortgage-backed securities 172,327 276 (1,429 ) 171,174 U.S. Treasury securities 1,500 10 — 1,510 Mutual funds 602 — (2 ) 600 $ 239,813 $ 720 $ (1,671 ) $ 238,862
Schedule of investment securities held to maturity	The amortized cost and estimated fair values of securities held to maturity (“HTM”) as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 2,723 $ 283 $ — $ 3,006 Municipal securities 12,625 525 (7 ) 13,143 Mortgage-backed securities 4,531 71 — 4,602 U.S. Treasury securities 1,002 6 — 1,008 Corporate debt securities 10,026 193 (8 ) 10,211 $ 30,907 $ 1,078 $ (15 ) $ 31,970 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 15,877 $ 645 $ (23 ) $ 16,499 Municipal securities 12,428 199 (93 ) 12,534 Mortgage-backed securities 4,834 4 (62 ) 4,776 U.S. Treasury securities 1,002 — (7 ) 995 Corporate debt securities 7,023 25 (40 ) 7,008 $ 41,164 $ 873 $ (225 ) $ 41,812
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income	Information pertaining to the activity for the three and six month periods ended June 30, 2016 and 2015 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) 2016 2015 2016 2015 Beginning unrealized loss related to $ 472 $ 1,838 $ 903 $ 1,887 Additions for transfers to HTM — — — — Amortization of unrealized losses on (139 ) (493 ) (570 ) (542 ) Ending unrealized loss in AOCI related to $ 333 $ 1,345 $ 333 $ 1,345
Securities Gross Unrealized Losses Position	Information pertaining to securities with gross unrealized losses at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Held to Maturity: Municipal securities $ — $ — $ 1,204 $ 7 $ 1,204 $ 7 Corporate debt securities 743 8 — — 743 8 $ 743 $ 8 $ 1,204 $ 7 $ 1,947 $ 15 Available for Sale: Municipal securities $ 1,153 $ 3 $ 359 $ 1 $ 1,512 $ 4 Mortgage-backed securities 39,310 271 11,705 145 51,015 416 Corporate debt securities 1,020 3 — — 1,020 3 $ 41,483 $ 277 $ 12,064 $ 146 $ 53,547 $ 423 December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,705 $ 23 $ — $ — $ 5,705 $ 23 Municipal securities 4,365 93 — — 4,365 93 Mortgage-backed securities 2,693 62 — — 2,693 62 U.S. Treasury securities 995 7 — — 995 7 Corporate debt securities 4,911 40 — — 4,911 40 $ 18,669 $ 225 $ — $ — $ 18,669 $ 225 Available for Sale: U.S. government agencies $ 13,317 $ 36 $ — $ — $ 13,317 $ 36 Municipal securities 18,769 176 947 28 19,716 204 Mortgage-backed securities 102,419 926 20,905 503 123,324 1,429 Mutual funds 600 2 — — 600 2 $ 135,105 $ 1,140 $ 21,852 $ 531 $ 156,957 $ 1,671
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses	June 30, 2016 Less Than 12 Months More Than 12 Months Total U.S. government agencies 9 5 14 Municipal securities 1 3 4 Mortgage-backed securities 11 5 16 Corporate debt securities 3 — 3 24 13 37 December 31, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 13 — 13 Municipal securities 51 2 53 Mortgage-backed securities 71 15 86 U.S. Treasury securities 1 — 1 Corporate debt securities 9 — 9 Mutual funds 1 — 1 146 17 163
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, 2016, 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 Fair Value (Dollars in thousands) Less than 1 year $ 2,046 $ 2,058 Over 1 year through 5 years 21,312 21,635 After 5 years through 10 years 24,762 25,382 Over 10 years 69,052 71,288 117,172 120,363 Mortgage-backed securities 169,306 170,971 Total $ 286,478 $ 291,334 Held to Maturity Amortized Fair Value (Dollars in thousands) Over 1 year through 5 years $ 1,002 $ 1,008 After 5 years through 10 years 10,492 10,702 Over 10 years 14,882 15,658 26,376 27,368 Mortgage-backed securities 4,531 4,602 Total $ 30,907 $ 31,970

ACQUISITION ACTIVITIES (Tables)

ACQUISITION ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Acquisition Activities Tables
Schedule of Assets Acquired and Liabilities Assumed in Acquisition [Table Text Block]	The purchased assets and assumed liabilities were recorded at their acquisition date fair values, and are summarized in the table below ( in thousands. As recorded by Fair Value As recorded by Old Town Bank Adjustments (1) the Company Assets Cash and cash equivalents $ 7,573 $ — $ 7,573 Investments 30,882 246 31,128 Loans 64,736 272 65,008 Fixed assets 3,414 (22 ) 3,392 Interest receivable 552 — 552 Core deposit intangible — 530 530 Other real estate owned 880 43 923 Deferred tax asset 259 200 459 Other assets 937 (306 ) 631 Total assets acquired $ 109,233 $ 963 $ 110,196 Liabilities Deposits $ 88,059 $ 648 $ 88,707 FHLB advances 9,000 25 9,025 Accrued Interest payable 30 — 30 Other liabilities 125 (10 ) 115 Total liabilities assumed 97,214 663 97,877 Excess of assets acquired over liabilities assumed $ 12,019 $ 300 $ 12,319 Purchase price 13,486 Goodwill $ 1,167 (1) Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition.

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Loans Receivable Tables
Loan Receivable	Loans receivable as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 December 31, 2015 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 268,699 $ 248,633 Commercial real estate 276,371 214,413 Home equity loans and lines of credit 51,675 53,446 Residential construction 14,270 7,848 Other construction and land 52,576 57,316 Total real estate loans 663,591 581,656 Commercial and industrial 55,530 41,046 Consumer 5,098 3,639 Total commercial and consumer 60,628 44,685 Loans receivable, gross 724,219 626,341 Less: Net deferred loan fees (1,152 ) (1,388 ) Unamortized premium 467 557 Unamortized discount (2,073 ) (1,438 ) Loans receivable, net $ 721,461 $ 624,072
Activity Related to Discount on Purchased Loans	Loans receivable as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 December 31, 2015 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 268,699 $ 248,633 Commercial real estate 276,371 214,413 Home equity loans and lines of credit 51,675 53,446 Residential construction 14,270 7,848 Other construction and land 52,576 57,316 Total real estate loans 663,591 581,656 Commercial and industrial 55,530 41,046 Consumer 5,098 3,639 Total commercial and consumer 60,628 44,685 Loans receivable, gross 724,219 626,341 Less: Net deferred loan fees (1,152 ) (1,388 ) Unamortized premium 467 557 Unamortized discount (2,073 ) (1,438 ) Loans receivable, net $ 721,461 $ 624,072

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 One-to four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,725 $ 3,808 $ 959 $ 143 $ 1,177 $ 536 $ 150 $ 9,498 Provision — — — — — — — — Charge-offs (52 ) (431 ) (93 ) — (120 ) (10 ) (16 ) (722 ) Recoveries 6 2 21 32 7 4 92 164 Ending balance $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Three Months Ended June 30, 2015 One-to four Commercial Home Equity and Residential Other 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 Six Months Ended June 30, 2016 One-to four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision 293 587 (214 ) (135 ) 17 (185 ) (363 ) — Charge-offs (98 ) (431 ) (130 ) — (437 ) (10 ) (26 ) (1,132 ) Recoveries 29 2 134 32 84 122 208 611 Ending balance $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Six Months Ended June 30, 2015 One-to four Commercial Home Equity and Residential Other 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
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, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 242 $ 63 $ 6 $ — $ 164 $ 34 $ — $ 509 Collectively evaluated for impairment 2,437 3,316 881 175 900 496 226 8,431 $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Loans Receivable Individually evaluated for impairment $ 4,689 $ 9,940 $ 779 $ — $ 1,833 $ 311 $ — $ 17,552 Collectively evaluated for impairment 264,010 266,431 50,896 14,270 50,743 55,219 5,098 706,667 $ 268,699 $ 276,371 $ 51,675 $ 14,270 $ 52,576 $ 55,530 $ 5,098 $ 724,219 December 31, 2015 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 344 $ 61 $ 6 $ — $ 61 $ 38 $ — $ 510 Collectively evaluated for impairment 2,111 3,160 1,091 278 1,339 565 407 8,951 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Loans Receivable Individually evaluated for impairment $ 6,315 $ 9,013 $ 313 $ — $ 1,509 $ 318 $ — $ 17,468 Collectively evaluated for impairment 242,318 205,400 53,133 7,848 55,807 40,728 3,639 608,873 $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341
Credit Risk Profile by Rating	The following tables present the recorded investment in gross loans by loan grade: June 30, 2016 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 63 $ — $ — $ — $ 10,504 $ — $ 10,567 2 — 4,368 — — — 1,484 — 5,852 3 26,997 22,970 1,528 472 1,094 3,451 — 56,512 4 68,958 126,695 3,726 7,636 8,869 27,775 70 243,729 5 25,987 91,156 3,604 1,419 24,636 9,848 347 156,997 6 2,145 14,910 7 1,216 1,378 262 — 19,918 7 4,628 14,266 466 — 2,207 446 — 22,013 $ 128,715 $ 274,428 $ 9,331 $ 10,743 $ 38,184 $ 53,770 $ 417 $ 515,588 Ungraded Loan Exposure: Performing $ 139,296 $ 1,943 $ 42,281 $ 3,527 $ 14,326 $ 1,760 $ 4,681 $ 207,814 Nonperforming 688 — 63 — 66 — — 817 Subtotal $ 139,984 $ 1,943 $ 42,344 $ 3,527 $ 14,392 $ 1,760 $ 4,681 $ 208,631 Total $ 268,699 $ 276,371 $ 51,675 $ 14,270 $ 52,576 $ 55,530 $ 5,098 $ 724,219 December 31, 2015 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 65 $ — $ — $ — $ 10,336 $ — $ 10,401 2 — 4,446 — — — 99 — 4,545 3 18,518 11,396 1,358 525 1,479 1,734 — 35,010 4 46,942 74,542 1,961 2,036 13,850 18,586 1 157,918 5 33,886 97,469 6,648 1,347 22,864 9,274 592 172,080 6 2,903 13,171 — 1,106 1,718 297 — 19,195 7 3,335 13,106 — — 579 458 — 17,478 $ 105,584 $ 214,195 $ 9,967 $ 5,014 $ 40,490 $ 40,784 $ 593 $ 416,627 Ungraded Loan Exposure: Performing $ 141,771 $ 218 $ 43,158 $ 2,834 $ 16,707 $ 262 $ 3,046 $ 207,996 Nonperforming 1,278 — 321 — 119 — — 1,718 Subtotal $ 143,049 $ 218 $ 43,479 $ 2,834 $ 16,826 $ 262 $ 3,046 $ 209,714 Total $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341
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, 2016 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 3,914 $ 2,787 $ 1,866 $ 8,567 $ 260,132 $ 268,699 Commercial real estate 2,811 478 3,079 6,368 270,003 276,371 Home equity and lines of credit 201 195 530 926 50,749 51,675 Residential construction 224 218 — 442 13,828 14,270 Other construction and land 1,600 19 1,387 3,006 49,570 52,576 Commercial 132 82 239 453 55,077 55,530 Consumer 16 1 1 18 5,080 5,098 Total $ 8,898 $ 3,780 $ 7,102 $ 19,780 $ 704,439 $ 724,219 December 31, 2015 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 5,610 $ 1,260 $ 1,205 $ 8,075 $ 240,558 $ 248,633 Commercial real estate 1,585 — 605 2,190 212,223 214,413 Home equity and lines of credit 369 38 322 729 52,717 53,446 Residential construction — — — — 7,848 7,848 Other construction and land 208 397 138 743 56,573 57,316 Commercial 625 — — 625 40,421 41,046 Consumer 12 4 — 16 3,623 3,639 Total $ 8,409 $ 1,699 $ 2,270 $ 12,378 $ 613,963 $ 626,341
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, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Recorded Balance Unpaid Principal Specific Recorded Balance Unpaid Principal Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,658 $ 2,712 $ — $ 4,289 $ 4,403 $ — Commercial real estate 8,178 10,193 — 7,226 8,809 — Home equity and lines of credit 679 794 — 213 328 — Residential construction — — — — — — Other construction and land 900 1,069 — 658 818 — Commercial — — — — — — $ 12,415 $ 14,768 $ — $ 12,386 $ 14,358 $ — Loans with a valuation allowance One-to four-family residential $ 2,031 $ 2,031 $ 243 $ 2,026 $ 2,026 $ 344 Commercial real estate 1,762 1,762 63 1,787 1,787 61 Home equity and lines of credit 100 100 5 100 100 6 Residential construction — — — — — — Other construction and land 933 1,028 164 851 851 61 Commercial 311 311 34 318 318 38 $ 5,137 $ 5,232 $ 509 $ 5,082 $ 5,082 $ 510 Total One-to four-family residential $ 4,689 $ 4,743 $ 243 $ 6,315 $ 6,429 $ 344 Commercial real estate 9,940 11,955 63 9,013 10,596 61 Home equity and lines of credit 779 894 5 313 428 6 Residential construction — — — — — — Other construction and land 1,833 2,097 164 1,509 1,669 61 Commercial 311 311 34 318 318 38 $ 17,552 $ 20,000 $ 509 $ 17,468 $ 19,440 $ 510 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, 2016 2015 2016 2015 Average Interest Income Average Interest Income Average Interest Income Average Interest Income (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,681 $ 19 $ 5,598 $ 45 $ 2,690 $ 55 $ 5,607 $ 87 Commercial real estate 8,416 13 9,536 114 8,419 59 9,555 214 Home equity and lines of credit 679 3 713 — 679 5 714 1 Residential construction — — — — — — — — Other construction and land 908 8 1,239 8 912 16 1,241 18 Commercial — — — — — — — — $ 12,684 $ 43 $ 17,086 $ 167 $ 12,700 $ 135 $ 17,117 $ 320 Loans with a valuation allowance One-to four-family residential $ 2,036 $ — $ 2,190 $ 22 $ 2,043 $ 24 $ 2,198 $ 44 Commercial real estate 1,768 14 3,186 35 1,775 41 3,196 69 Home equity and lines of credit 100 1 431 1 100 2 431 2 Residential construction — — — — — — — — Other construction and land 985 8 1,009 10 989 18 1,014 21 Commercial 312 4 326 5 315 9 326 10 $ 5,201 $ 27 $ 7,142 $ 73 $ 5,222 $ 94 $ 7,165 $ 146 Total One-to four-family residential $ 4,717 $ 19 $ 7,788 $ 67 $ 4,733 $ 79 $ 7,805 $ 131 Commercial real estate 10,184 27 12,722 149 10,194 100 12,751 283 Home equity and lines of credit 779 4 1,144 1 779 7 1,145 3 Residential construction — — — — — — — — Other construction and land 1,893 16 2,248 18 1,901 34 2,255 39 Commercial 312 4 326 5 315 9 326 10 $ 17,885 $ 70 $ 24,228 $ 240 $ 17,922 $ 229 $ 24,282 $ 466
Financing Receivables on Nonaccrual Status	The following table summarizes the balances of nonperforming loans as of June 30, 2016 and December 31, 2015. 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, 2016 December 31, 2015 (Dollars in thousands) One-to four-family residential $ 2,246 $ 2,893 Commercial real estate 5,179 3,628 Home equity loans and lines of credit 528 320 Residential construction — — Other construction and land 1,434 384 Commercial 48 55 Consumer 1 — Non-performing loans $ 9,436 $ 7,280
Summary of TDR Loans	The following tables summarize TDR loans as of the dates indicated: June 30, 2016 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,138 $ 211 $ 3,349 Commercial real estate 4,451 2,860 7,311 Home equity and lines of credit 213 — 213 Residential construction — — — Other construction and land 1,490 406 1,896 Commercial 311 11 322 $ 9,603 $ 3,488 $ 13,091 December 31, 2015 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 4,182 $ 211 $ 4,393 Commercial real estate 5,134 2,922 8,056 Home equity and lines of credit 313 — 313 Residential construction — — — Other construction and land 1,259 250 1,509 Commercial 318 12 330 $ 11,206 $ 3,395 $ 14,601 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, 2016 Six Months Ended June 30, 2016 (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 — $ — $ — — $ — $ — — $ — $ — — $ — $ — 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

REAL ESTATE OWNED (Tables)

REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015. June 30 December 31, (Dollars in thousands) 2016 2015 Real estate owned, gross $ 6,769 $ 6,741 Less: Valuation allowance 1,356 1,372 Real estate owned, net $ 5,413 $ 5,369 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Valuation allowance, beginning $ 1,651 $ 1,606 $ 1,372 $ 1,760 Provision charged to expense 166 23 508 91 Reduction due to disposal (461 ) (71 ) (524 ) (293 ) Valuation allowance, ending $ 1,356 $ 1,558 $ 1,356 $ 1,558

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 and the year ended December 31, 2015. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2016 2015 2015 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 127,010 $ — $ 95,604 $ — $ 121,062 $ — Interest-bearing demand 116,648 94 98,447 76 103,198 136 Money Market 236,750 324 171,475 294 180,377 558 Savings 38,057 26 30,043 16 35,838 33 Time Deposits 310,409 1,530 296,968 1,972 276,142 3,607 $ 828,874 $ 1,974 $ 692,537 $ 2,358 $ 716,617 $ 4,334

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2016
Borrowings Tables
Scheduled maturities of FHLB advances and respective weighted average rates	The following table summarizes deposit balances and interest expense by type of deposit as of and for the six months ended June 30, 2016 and 2015 and the year ended December 31, 2015. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2016 2015 2015 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 127,010 $ — $ 95,604 $ — $ 121,062 $ — Interest-bearing demand 116,648 94 98,447 76 103,198 136 Money Market 236,750 324 171,475 294 180,377 558 Savings 38,057 26 30,043 16 35,838 33 Time Deposits 310,409 1,530 296,968 1,972 276,142 3,607 $ 828,874 $ 1,974 $ 692,537 $ 2,358 $ 716,617 $ 4,334

DERIVATIVE FINANCIAL INSTRUME32

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Financial Instruments And Hedging Activities Tables
Schedule of fair value of the Company's derivative financial instruments	The table below presents the fair value of the Company’s derivative financial instruments as of the dates indicated as well as their classification on the consolidated balance sheet (in thousands). Fair Value Balance Sheet Location June 30, December 31, Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other liabilities $ 43 $ — Total $ 43 $ — Not designated as hedges: Mortgage banking - loan commitment Other assets $ 99 $ 30 Mortgage banking - forward sales commitment Other assets 19 15 Total $ 118 $ 45
Schedule of Cash Flow Hedges Included in Statement of Income	The table below presents the effect of the Company’s cash flow hedge on the Consolidated Statement of Income (in thousands). Amount of Gain(Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Gain(Loss) Reclassifed from Accumulated Other Comprehensive Income into Income (Effective Portion) For the three and June 30, 2016 December 31, 2015 Location 2016 2015 Interest rate swap $ (28 ) $ — Interest Expense $ 1 $ —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Taxes Tables
Schedule of Deferred Tax Assets and Liabilities	The components of net deferred taxes as of June 30, 2016 and December 31, 2015 are summarized as follows: June 30, December 31, 2016 2015 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 10,445 $ 10,750 Allowance for loan losses 3,303 3,557 Deferred compensation and post employment benefits 3,415 3,498 North Carolina net operating loss 698 988 Valuation reserve for other real estate 501 516 Non-accrual interest 325 286 Tax credits and other carryforwards 308 197 Deferred gains 195 154 Unrealized losses on securities — 697 Loan basis difference 288 — Deposit premium 209 — Other 740 421 Gross deferred tax assets 20,427 21,064 Deferred tax liabilities: Fixed assets 437 499 Loan servicing rights 884 881 Deferred loan costs 908 708 Prepaid expenses 149 146 Unrealized gains on securities 1,700 — Other 392 — Total deferred tax liabilities 4,470 2,234 Net deferred tax asset $ 15,957 $ 18,830

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
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 For the Six Months Numerator: Net income $ 858 $ 2,224 Denominator: Weighted-average common shares outstanding - basic 6,466,665 6,492,209 Effect of dilutive shares 15,414 14,276 Weighted-average common shares outstanding - diluted 6,482,079 6,506,485 Earnings per share - basic $ 0.13 $ 0.34 Earnings per share - diluted $ 0.13 $ 0.34 (Dollars in thousands, except per share amounts) For the Three Months For the Six Months 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, 2016
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, 2016 and 2015. Three Months Ended June 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ 1,394 $ (295 ) $ (378 ) $ — $ 721 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 94 — 94 Change in net unrealized holding gains and losses on securities available for sale 3,049 — — — 3,049 Reclassification adjustment for net securities gains realized in net income (429 ) — — — (429 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 139 — — 139 Change in unrealized holding loss on cash flow hedge — — — (43 ) (43 ) Income tax effect (984 ) (55 ) — 15 (1,024 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Three Months Ended June 30, 2015 (Dollars in thousands) Balance, beginning of period $ 910 $ (1,135 ) $ (139 ) $ — $ (364 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — (675 ) — (675 ) Change in unrealized holding gains and 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 effect 873 (198 ) — — 675 Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 ) Six Months Ended June 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 295 — 295 Change in net unrealized holding gains and losses on securities available for sale 6,504 — — — 6,504 Reclassification adjustment for net securities gains realized in net income (698 ) — — — (698 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 570 — — 570 Change in unrealized holding loss on cash flow hedge — — — (43 ) (43 ) Income tax effect (2,182 ) (218 ) — 15 (2,385 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Six Months Ended June 30, 2015 (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ — $ (2,269 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 54 — 54 Change in unrealized holding gains and 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 effect 163 (217 ) — — (54 ) Balance, end of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 )
Schedule of Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss)	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, 2016 2015 2016 2015 (Dollars in thousands) (Dollars in thousands) Gain on sale of investments, net $ 429 $ 123 $ 698 $ 287 Tax effect — — — — Impact, net of tax 429 123 698 287 Interest income - taxable securities 139 493 570 542 Tax effect — — — — Impact, net of tax 139 493 570 542 Total reclassifications, net of tax $ 568 $ 616 $ 1,268 $ 829

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 (Dollars in thousands) Lines of credit $ 94,239 Standby letters of credit 826 $ 95,065
Schedule of Outstanding commitments to originate mortgage loans	As of June 30, 2016, the Company had outstanding commitments to originate loans as follows: June 30, 2016 Amount Range of Rates (Dollar in thousands) Fixed $ 24,280 2.75% to 7.99% Variable 27,706 3.50% to 6.49% $ 51,986

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets - mutual funds $ 4,991 $ — $ — $ 4,991 Securities available for sale: U.S. government agencies — 13,234 — 13,234 Municipal securities — 97,641 — 97,641 Mortgage-backed securities — 170,971 — 170,971 U.S. Treasury securities 1,557 — — 1,557 Corporate debt securities — 7,312 — 7,312 Mutual funds 619 — — 619 7,167 289,158 — 296,325 Loan servicing rights — — 2,392 2,392 Forward sales commitments — — 19 19 Interest rate lock commitments — — 99 99 Total assets $ 7,167 $ 289,158 $ 2,510 $ 298,835 Derivative liabilities $ — $ 43 $ — $ 43 December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 4,714 $ — $ — $ 4,714 Securities available for sale: U.S. government agencies — 25,720 — 25,720 Municipal securities — 39,858 — 39,858 Mortgage-backed securities — 171,174 — 171,174 U.S. Treasury securities 1,510 — — 1,510 Mutual funds 600 — — 600 6,824 236,752 — 243,576 Loan servicing rights — — 2,344 2,344 Forward sales commitments — — 16 16 Interest rate lock commitments — — 30 30 Total assets $ 6,824 $ 236,752 $ 2,390 $ 245,966 There were no liabilities measured on a recurring basis at December 31, 2015.
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, 2016 2015 2016 2015 (Dollars in thousands) Balance at beginning of period $ 2,478 $ 2,368 $ 2,390 $ 2,248 Loan servicing right activity, included in servicing income, net Capitalization from loans sold 131 83 259 216 Fair value adjustment (138 ) (157 ) (212 ) (245 ) Mortgage derivative gains (losses) included in Other income 39 (118 ) 73 (43 ) Balance at end of period $ 2,510 $ 2,176 $ 2,510 $ 2,176
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, 2016 or December 31, 2015. June 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 3,055 $ 3,055 Commercial real estate — — 8,178 8,178 Home equity loans and lines of credit — — 679 679 Other construction and land — — 999 999 Real estate owned: One-to four family residential — — 1,958 1,958 Commercial real estate — — 1,008 1,008 Other construction and land — — 2,447 2,447 Total assets $ — $ — $ 18,324 $ 18,324 December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 4,163 $ 4,163 Commercial real estate — — 7,226 7,226 Home equity loans and lines of credit — — 213 213 Other construction and land — — 658 658 Real estate owned: One-to four family residential — — 1,384 1,384 Commercial real estate — — 1,123 1,123 Other construction and land — — 2,862 2,862 Total assets $ — $ — $ 17,629 $ 17,629 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2016 or December 31, 2015.
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, 2016. Valuation Unobservable Input General 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 5 - 35% Discount rate 12% - 14% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 108%
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, 2016 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 57,945 $ 57,945 $ 57,945 $ — $ — Trading securities 4,991 4,991 4,991 — — Securities available for sale 291,334 291,334 2,176 289,158 — Securities held to maturity 30,907 31,970 1,002 30,968 — Loans held for sale 7,300 8,011 — 8,011 — Loans receivable, net 721,461 714,929 — — 714,929 Other investments, at cost 10,798 10,798 — 10,798 — Interest receivable 4,260 4,260 — 4,260 — Bank owned life insurance 21,059 21,059 — 21,059 — Loan servicing rights 2,392 2,392 — — 2,392 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 99 99 — — 99 Liabilities: Demand deposits $ 518,465 518,465 $ — $ 518,465 $ — Time deposits 310,409 311,243 — — 311,243 Federal Home Loan Bank advances 193,500 193,946 — 193,946 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,675 2,853 — — 2,853 Accrued interest payable 265 265 — 265 — Interest rate swap 43 43 — 43 — Fair Value Measurements at December 31, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 40,650 $ 40,650 $ 40,650 $ — $ — Trading securities 4,714 4,714 4,714 — — Securities available for sale 238,862 238,862 2,110 236,752 — Securities held to maturity 41,164 41,812 995 40,817 — Loans held for sale 8,348 8,952 — 8,952 — Loans receivable, net 624,072 620,516 — — 620,516 Other investments, at cost 8,834 8,834 — 8,834 — Interest receivable 3,554 3,554 — 3,554 — Bank owned life insurance 20,858 20,858 — 20,858 — Loan servicing rights 2,344 2,344 — — 2,344 Forward sales commitments 16 16 — — 16 Interest rate lock commitments 30 30 — — 30 Liabilities: Demand deposits $ 440,475 440,475 $ — $ 440,475 $ — Time deposits 276,142 275,403 — — 275,403 Federal Home Loan Bank advances 153,500 153,441 — 153,441 — Junior subordinated debentures 14,433 14,433 — 14,433 — Accrued interest payable 213 213 — 213 —

SHARE REPURCHASES (Tables)

SHARE REPURCHASES (Tables)	6 Months Ended
	Jun. 30, 2016
Banking and Thrift [Abstract]
Schedule of Share Repurchase Activity	The following table summarizes share repurchase activity through June 30, 2016: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1, 2016 to January 31, 2016 — $ — — — February 1, 2016 to February 29, 2016 40,621 $ 17.04 40,621 286,697 March 1, 2016 to March 31, 2016 33,382 $ 17.70 33,382 253,315 April 1, 2016 to April 30, 2016 5,997 $ 17.65 5,997 247,318 May 1, 2016 to May 31, 2016 — $ — — 247,318 June 1, 2016 to June 30, 2016 — $ — — 247,318 Total year-to-date 2016 80,000 $ 17.42 80,000 247,318

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative)	Dec. 31, 2015
Organization Details Narrative
Ownership percentage in Macon Capital Trust I	100.00%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost	$ 286,478	$ 239,813
Gross Unrealized Gains	5,279	720
Gross Unrealized Losses	(423)	(1,671)
Estimated fair value	291,334	238,862
U.S. Government Agencies [Member]
Amortized Cost	13,100	25,633
Gross Unrealized Gains	134	123
Gross Unrealized Losses		(36)
Estimated fair value	13,234	25,720
Municipal Securities [Member]
Amortized Cost	94,766	39,751
Gross Unrealized Gains	2,879	311
Gross Unrealized Losses	(4)	(204)
Estimated fair value	97,641	39,858
Collateralized Mortgage Backed Securities [Member]
Amortized Cost	169,306	172,327
Gross Unrealized Gains	2,081	276
Gross Unrealized Losses	(416)	(1,429)
Estimated fair value	170,971	171,174
U.S. Treasury securities [Member]
Amortized Cost	1,499	1,500
Gross Unrealized Gains	58	10
Gross Unrealized Losses
Estimated fair value	1,557	1,510
Mutual Funds [Member]
Amortized Cost	609	602
Gross Unrealized Gains	10
Gross Unrealized Losses		(2)
Estimated fair value	619	$ 600
Corporate debt securities [Member]
Amortized Cost	7,198
Gross Unrealized Gains	117
Gross Unrealized Losses	(3)
Estimated fair value	$ 7,312

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost	$ 30,907	$ 41,164
Gross Unrealized Gains	1,078	873
Gross Unrealized Losses	(15)	(225)
Estimated Fair Value	31,970	41,812
U.S. Government Agencies [Member]
Amortized Cost	2,723	15,877
Gross Unrealized Gains	283	645
Gross Unrealized Losses		(23)
Estimated Fair Value	3,006	16,499
Municipal Securities [Member]
Amortized Cost	12,625	12,428
Gross Unrealized Gains	525	199
Gross Unrealized Losses	(7)	(93)
Estimated Fair Value	13,143	12,534
Collateralized Mortgage Backed Securities [Member]
Amortized Cost	4,531	4,834
Gross Unrealized Gains	71	4
Gross Unrealized Losses		(62)
Estimated Fair Value	4,602	4,776
U.S. Treasury securities [Member]
Amortized Cost	1,002	1,002
Gross Unrealized Gains	6
Gross Unrealized Losses		(7)
Estimated Fair Value	1,008	995
Corporate debt securities [Member]
Amortized Cost	10,026	7,023
Gross Unrealized Gains	193	25
Gross Unrealized Losses	(8)	(40)
Estimated Fair Value	$ 10,211	$ 7,008

INVESTMENT SECURITIES (Detail42

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investment Securities Details 3
Beginning unrealized loss related to HTM securities previously recognized in OCI	$ 472	$ 1,838	$ 903	$ 1,887
Additions for transfers to HTM
Amortization of unrealized losses on HTM securities previously recognized in OCI	43	(493)	43	(542)
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI	$ 333	$ 1,345	$ 333	$ 1,345

INVESTMENT SECURITIES (Detail43

INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Held to maturity, Less Than 12 Months Fair Value	$ 743	$ 18,669
Held to maturity, Less Than 12 Months Unrealized Losses	8	225
Held to maturity, Over 12 Months Fair Value	1,204
Held to maturity, Over 12 Months Unrealized Losses	7
Held to maturity, Fair Value	1,947	18,669
Held to maturity, Unrealized Losses	15	225
Available for sale, Less Than 12 Months Fair Value	41,483	135,105
Available for sale, Less Than 12 Months Unrealized Losses	277	1,140
Available for sale, Over 12 Months Fair Value	12,064	21,852
Available for sale, Over 12 Months Unrealized Losses	146	531
Available for sale, Fair Value	53,547	156,957
Available for sale, Unrealized Losses	423	1,671
U.S. Government Agencies [Member]
Held to maturity, Less Than 12 Months Fair Value		5,705
Held to maturity, Less Than 12 Months Unrealized Losses		23
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value		5,705
Held to maturity, Unrealized Losses		23
Available for sale, Less Than 12 Months Fair Value		13,317
Available for sale, Less Than 12 Months Unrealized Losses		36
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value		13,317
Available for sale, Unrealized Losses		36
Municipal Securities [Member]
Held to maturity, Less Than 12 Months Fair Value		4,365
Held to maturity, Less Than 12 Months Unrealized Losses		93
Held to maturity, Over 12 Months Fair Value	1,204
Held to maturity, Over 12 Months Unrealized Losses	7
Held to maturity, Fair Value	1,204	4,365
Held to maturity, Unrealized Losses	7	93
Available for sale, Less Than 12 Months Fair Value	1,153	18,769
Available for sale, Less Than 12 Months Unrealized Losses	3	176
Available for sale, Over 12 Months Fair Value	359	947
Available for sale, Over 12 Months Unrealized Losses	1	28
Available for sale, Fair Value	1,512	19,716
Available for sale, Unrealized Losses	4	204
Collateralized Mortgage Backed Securities [Member]
Held to maturity, Less Than 12 Months Fair Value		2,693
Held to maturity, Less Than 12 Months Unrealized Losses		62
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value		2,693
Held to maturity, Unrealized Losses		62
Available for sale, Less Than 12 Months Fair Value	39,310	102,419
Available for sale, Less Than 12 Months Unrealized Losses	271	926
Available for sale, Over 12 Months Fair Value	11,705	20,905
Available for sale, Over 12 Months Unrealized Losses	145	503
Available for sale, Fair Value	51,015	123,324
Available for sale, Unrealized Losses	416	1,429
U.S. Treasury securities [Member]
Held to maturity, Less Than 12 Months Fair Value		995
Held to maturity, Less Than 12 Months Unrealized Losses		7
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value		995
Held to maturity, Unrealized Losses		7
Corporate debt securities [Member]
Held to maturity, Less Than 12 Months Fair Value	743	4,911
Held to maturity, Less Than 12 Months Unrealized Losses	8	40
Held to maturity, Over 12 Months Fair Value
Held to maturity, Over 12 Months Unrealized Losses
Held to maturity, Fair Value	743	4,911
Held to maturity, Unrealized Losses	8	40
Available for sale, Less Than 12 Months Fair Value	1,020
Available for sale, Less Than 12 Months Unrealized Losses	3
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	1,020
Available for sale, Unrealized Losses	$ 3
Mutual Funds [Member]
Available for sale, Less Than 12 Months Fair Value		600
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		600
Available for sale, Unrealized Losses		$ 2

INVESTMENT SECURITIES (Detail44

INVESTMENT SECURITIES (Details 5) - Securities	Jun. 30, 2016	Dec. 31, 2015
Number of securities less than 12 months	24	146
Number of securities more than 12 months	13	17
Number of securities	37	163
U.S. Government Agencies [Member]
Number of securities less than 12 months	9	13
Number of securities more than 12 months	5
Number of securities	14	13
Municipal Securities [Member]
Number of securities less than 12 months	1	51
Number of securities more than 12 months	3	2
Number of securities	4	53
Collateralized Mortgage Backed Securities [Member]
Number of securities less than 12 months	11	71
Number of securities more than 12 months	5	15
Number of securities	16	86
U.S. Treasury securities [Member]
Number of securities less than 12 months		1
Number of securities more than 12 months
Number of securities		1
Corporate debt securities [Member]
Number of securities less than 12 months	3	9
Number of securities more than 12 months
Number of securities	3	9
Mutual Funds [Member]
Number of securities less than 12 months		1
Number of securities more than 12 months
Number of securities		1

INVESTMENT SECURITIES (Detail45

INVESTMENT SECURITIES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Investment Securities Details 6
Gross proceeds	$ 41,204	$ 12,010	$ 75,709	$ 25,707
Gross realized gains	445	123	732	307
Gross realized losses	16		34	$ 20
Securities pledged against deposits	$ 126,400		$ 126,400		$ 69,600

INVESTMENT SECURITIES (Detail46

INVESTMENT SECURITIES (Details 7) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investment Securities Details 6
Available for sale, Less than 1 year, Amortized Cost	$ 2,046
Available for sale, Over 1 year through 5 years, Amortized Cost	21,312
Available for sale, After 5 years through 10 years, Amortized Cost	24,762
Available for sale, Over 10 years, Amortized Cost	69,052
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	117,172
Available for sale, Mortgage-backed securities, Amortized Cost	169,306
Available for sale, Total, Amortized Cost	286,478
Available for Sale, Less than 1 year, Fair Value	2,058
Available for Sale, Over 1 year through 5 years, Fair Value	21,635
Available for Sale, After 5 years through 10 years, Fair Value	25,382
Available for Sale, Over 10 years, Fair Value	71,288
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	120,363
Available for Sale, Mortgage-backed securities, Fair Value	170,971
Available for Sale, Total, Fair Value	291,334
Held to Maturity, Less than 1 year, Amortized Cost	1,002
Held to Maturity, After 5 years through 10 years, Amortized Cost	10,492
Held to Maturity, Over 10 years, Amortized Cost	14,882
Held to Maturity, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	26,376
Held to Maturity, Mortgage-backed securities, Amortized Cost	4,531
Held to Maturity, Total, Amortized Cost	30,907	$ 41,164
Held to Maturity, Less than 1 year, Fair Value	1,008
Held to Maturity, After 5 years through 10 years, Fair Value	10,702
Held to Maturity, Over 10 years, Fair Value	15,658
Held to Maturity, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	27,368
Held to Maturity, Mortgage-backed securities, Fair Value	4,602
Held to Maturity, Total, Fair Value	$ 31,970	$ 41,812

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Apr. 02, 2016	Dec. 31, 2015
Goodwill		$ 1,872		$ 711
As recorded by Old Town Bank [Member]
Cash and cash equivalents			$ 7,573
Investments			30,882
Loans			64,736
Fixed assets			3,414
Interest receivable			552
Core deposit intangible
Other real estate owned			880
Deferred tax asset			259
Other assets			937
Total assets acquired			109,233
Deposits			88,059
FHLB advances			9,000
Accrued interest payable			30
Other liabilities			125
Total liabilities assumed			97,214
Excess of assets acquired over liabilities assumed			12,019
Fair Value Adjustments [Member]
Cash and cash equivalents	[1]
Investments	[1]		246
Loans	[1]		272
Fixed assets	[1]		(22)
Interest receivable	[1]
Core deposit intangible	[1]		530
Other real estate owned	[1]		43
Deferred tax asset	[1]		200
Other assets	[1]		(306)
Total assets acquired	[1]		963
Deposits	[1]		648
FHLB advances	[1]		25
Accrued interest payable	[1]
Other liabilities	[1]		(10)
Total liabilities assumed	[1]		663
Excess of assets acquired over liabilities assumed	[1]		300
As recorded by the Company [Member]
Cash and cash equivalents			7,573
Investments			31,128
Loans			65,008
Fixed assets			3,392
Interest receivable			552
Core deposit intangible			530
Other real estate owned			923
Deferred tax asset			459
Other assets			631
Total assets acquired			110,196
Deposits			88,707
FHLB advances			9,025
Accrued interest payable			30
Other liabilities			115
Total liabilities assumed			97,877
Excess of assets acquired over liabilities assumed			12,319
Purchase price			13,486
Goodwill			$ 1,167
[1]	Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition.

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 724,219	$ 626,341
Less: Net deferred loan fees	(1,152)	(1,388)
Unamortized premium	467	557
Unamortized discount	(2,073)	(1,438)
Loans receivable, net	721,461	624,072
One To Four Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	268,699	248,633
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	276,371	214,413
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	51,675	53,446
Residential Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	14,270	7,848
Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	52,576	57,316
Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	663,591	581,656
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	55,530	41,046
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	5,098	3,639
Commercial and Consumer Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 60,628	$ 44,685

LOANS RECEIVABLE (Detail Narrat

LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restructuring of loan	$ 13,091		$ 13,091		$ 14,601
Federal Deposit Insurance Corporation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Discount on loans purchased	870		870	$ 484
Federal Reserve Bank Advances [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	81,800		81,800		88,400
Federal Home Loan Bank of Atlanta [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	$ 126,200		$ 126,200		$ 119,500

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Discount on purchased loans, beginning of period			$ 1,388
Discount on purchased loans, end of period	$ 1,152		1,152
Federal Deposit Insurance Corporation [Member]
Discount on purchased loans, beginning of period	1,361	$ 1,587	1,438	$ 1,487
Additional discount for new purchases	870		870	484
Accretion	(158)	(88)	(235)	(177)
Discount applied to charge-offs				(295)
Discount on purchased loans, end of period	$ 2,073	$ 1,499	$ 2,073	$ 1,499

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 9,498	$ 9,611	$ 9,461	$ 11,072
Provision				(1,500)
Charge-offs	(722)	(369)	(1,132)	(759)
Recoveries	164	209	611	638
Balance, end of period	8,940	9,451	8,940	9,451
One To Four Family Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,725	2,773	2,455	2,983
Provision		(507)	293	(607)
Charge-offs	(52)	(19)	(98)	(238)
Recoveries	6	13	29	122
Balance, end of period	2,679	2,260	2,679	2,260
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	3,808	2,363	3,221	2,717
Provision		184	587	(232)
Charge-offs	(431)	(15)	(431)	(45)
Recoveries	2	75	2	167
Balance, end of period	3,379	2,607	3,379	2,607
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	959	1,168	1,097	1,333
Provision		170	(214)	91
Charge-offs	(93)	(260)	(130)	(369)
Recoveries	21	2	134	25
Balance, end of period	887	1,080	887	1,080
Residential Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	143	304	278	510
Provision		38	(135)	(168)
Charge-offs
Recoveries	32	2	32	2
Balance, end of period	175	344	175	344
Other Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,177	1,990	1,400	2,936
Provision		(304)	17	(1,350)
Charge-offs	(120)	(67)	(437)	(86)
Recoveries	7	47	84	166
Balance, end of period	1,064	1,666	1,064	1,666
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	536	596	603	308
Provision		82	(185)	363
Charge-offs	(10)	(1)	(10)	(1)
Recoveries	4	3	122	10
Balance, end of period	530	680	530	680
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	150	417	407	285
Provision		337	(363)	403
Charge-offs	(16)	(7)	(26)	(20)
Recoveries	92	67	208	146
Balance, end of period	$ 226	$ 814	$ 226	$ 814

ALLOWANCE FOR LOAN LOSSES (De52

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Allowance for loan losses
Individually evaluated for impairment	$ 509		$ 510
Collectively evaluated for impairment	8,431		8,951
Balance, end of period	8,940	$ 9,498	9,461	$ 9,451	$ 9,611	$ 11,072
Loans Receivable
Individually evaluated for impairment	17,552		17,468
Collectively evaluated for impairment	706,667		608,873
Total Loans Receivable	724,219		626,341
One To Four Family Residential [Member]
Allowance for loan losses
Individually evaluated for impairment	242		344
Collectively evaluated for impairment	2,437		2,111
Balance, end of period	2,679	2,725	2,455	2,260	2,773	2,983
Loans Receivable
Individually evaluated for impairment	4,689		6,315
Collectively evaluated for impairment	264,010		242,318
Total Loans Receivable	268,699		248,633
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	63		61
Collectively evaluated for impairment	3,316		3,160
Balance, end of period	3,379	3,808	3,221	2,607	2,363	2,717
Loans Receivable
Individually evaluated for impairment	9,940		9,013
Collectively evaluated for impairment	266,431		205,400
Total Loans Receivable	276,371		214,413
Home Equity Line of Credit [Member]
Allowance for loan losses
Individually evaluated for impairment	6		6
Collectively evaluated for impairment	881		1,091
Balance, end of period	887	959	1,097	1,080	1,168	1,333
Loans Receivable
Individually evaluated for impairment	779		313
Collectively evaluated for impairment	50,896		53,133
Total Loans Receivable	51,675		53,446
Residential Construction [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	175		278
Balance, end of period	175	143	278	344	304	510
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	14,270		7,848
Total Loans Receivable	14,270		7,848
Other Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	164		61
Collectively evaluated for impairment	900		1,339
Balance, end of period	1,064	1,177	1,400	1,666	1,990	2,936
Loans Receivable
Individually evaluated for impairment	1,833		1,509
Collectively evaluated for impairment	50,743		55,807
Total Loans Receivable	52,576		57,316
Commercial Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	34		38
Collectively evaluated for impairment	496		565
Balance, end of period	530	536	603	680	596	308
Loans Receivable
Individually evaluated for impairment	311		318
Collectively evaluated for impairment	55,219		40,728
Total Loans Receivable	55,530		41,046
Consumer Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	226		407
Balance, end of period	226	$ 150	407	$ 814	$ 417	$ 285
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	5,098		3,639
Total Loans Receivable	$ 5,098		$ 3,639

ALLOWANCE FOR LOAN LOSSES (De53

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Loans Reported amount	$ 724,219	$ 626,341
One To Four Family Residential [Member]
Loans Reported amount	268,699	248,633
Commercial Portfolio Segment [Member]
Loans Reported amount	55,530	41,046
Home Equity Line of Credit [Member]
Loans Reported amount	51,675	53,446
Residential Construction [Member]
Loans Reported amount	14,270	7,848
Other Portfolio Segment [Member]
Loans Reported amount	52,576	57,316
Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	276,371	214,413
Consumer Portfolio Segment [Member]
Loans Reported amount	5,098	3,639
Graded Loan [Member]
Loans Reported amount	515,588	416,627
Graded Loan [Member] | One To Four Family Residential [Member]
Loans Reported amount	128,715	105,584
Graded Loan [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	53,770	40,784
Graded Loan [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	9,331	9,967
Graded Loan [Member] | Residential Construction [Member]
Loans Reported amount	10,743	5,014
Graded Loan [Member] | Other Portfolio Segment [Member]
Loans Reported amount	38,184	40,490
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	274,428	214,195
Graded Loan [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	417	593
Graded Loan [Member] | Loan Grade One [Member]
Loans Reported amount	10,567	10,401
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	10,504	10,336
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 Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	63	65
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member]
Loans Reported amount	5,852	4,545
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	1,484	99
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 Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	4,368	4,446
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Three [Member]
Loans Reported amount	56,512	35,010
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member]
Loans Reported amount	26,997	18,518
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	3,451	1,734
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	1,528	1,358
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member]
Loans Reported amount	472	525
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member]
Loans Reported amount	1,094	1,479
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	22,970	11,396
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Four [Member]
Loans Reported amount	243,729	157,918
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member]
Loans Reported amount	68,958	46,942
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	27,775	18,586
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	3,726	1,961
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member]
Loans Reported amount	7,636	2,036
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member]
Loans Reported amount	8,869	13,850
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	126,695	74,542
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	70	1
Graded Loan [Member] | Loan Grade Five [Member]
Loans Reported amount	156,997	172,080
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member]
Loans Reported amount	25,987	33,886
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	9,848	9,274
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	3,604	6,648
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member]
Loans Reported amount	1,419	1,347
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member]
Loans Reported amount	24,636	22,864
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	91,156	97,469
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	347	592
Graded Loan [Member] | Loan Grade Six [Member]
Loans Reported amount	19,918	19,195
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member]
Loans Reported amount	2,145	2,903
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	262	297
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	7
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member]
Loans Reported amount	1,216	1,106
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member]
Loans Reported amount	1,378	1,718
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	14,910	13,171
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Seven [Member]
Loans Reported amount	22,013	17,478
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member]
Loans Reported amount	4,628	3,335
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	446	458
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	466
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member]
Loans Reported amount
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member]
Loans Reported amount	2,207	579
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	14,266	13,106
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount
UnGraded Loan [Member]
Loans Reported amount	208,631	209,714
UnGraded Loan [Member] | One To Four Family Residential [Member]
Loans Reported amount	139,984	143,049
UnGraded Loan [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	1,760	262
UnGraded Loan [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	42,344	43,479
UnGraded Loan [Member] | Residential Construction [Member]
Loans Reported amount	3,527	2,834
UnGraded Loan [Member] | Other Portfolio Segment [Member]
Loans Reported amount	14,392	16,826
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	1,943	218
UnGraded Loan [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	4,681	3,046
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member]
Loans Reported amount	817	1,718
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member]
Loans Reported amount	688	1,278
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	63	321
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member]
Loans Reported amount
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans Reported amount	66	119
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
UnGraded Loan [Member] | Performing Financing Receivable [Member]
Loans Reported amount	207,814	207,996
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member]
Loans Reported amount	139,296	141,771
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans Reported amount	1,760	262
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans Reported amount	42,281	43,158
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member]
Loans Reported amount	3,527	2,834
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans Reported amount	14,326	16,707
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans Reported amount	1,943	218
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans Reported amount	$ 4,681	$ 3,046

ALLOWANCE FOR LOAN LOSSES (De54

ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 8,898	$ 8,409
60-89 Days Past	3,780	1,699
90 Days and Over Past Due	7,102	2,270
Total Past Due	19,780	12,378
Current	704,439	613,963
Total Loans Receivable	724,219	626,341
One To Four Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,914	5,610
60-89 Days Past	2,787	1,260
90 Days and Over Past Due	1,866	1,205
Total Past Due	8,567	8,075
Current	260,132	240,558
Total Loans Receivable	268,699	248,633
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	2,811	1,585
60-89 Days Past	478
90 Days and Over Past Due	3,079	605
Total Past Due	6,368	2,190
Current	270,003	212,223
Total Loans Receivable	276,371	214,413
Home Equity Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	201	369
60-89 Days Past	195	38
90 Days and Over Past Due	530	322
Total Past Due	926	729
Current	50,749	52,717
Total Loans Receivable	51,675	53,446
Residential Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	224
60-89 Days Past	218
90 Days and Over Past Due
Total Past Due	442
Current	13,828	7,848
Total Loans Receivable	14,270	7,848
Other Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,600	208
60-89 Days Past	19	397
90 Days and Over Past Due	1,387	138
Total Past Due	3,006	743
Current	49,570	56,573
Total Loans Receivable	52,576	57,316
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	132	625
60-89 Days Past	82
90 Days and Over Past Due	239
Total Past Due	453	625
Current	55,077	40,421
Total Loans Receivable	55,530	41,046
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	16	12
60-89 Days Past	1	4
90 Days and Over Past Due	1
Total Past Due	18	16
Current	5,080	3,623
Total Loans Receivable	$ 5,098	$ 3,639

ALLOWANCE FOR LOAN LOSSES (De55

ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	$ 12,415	$ 12,386
Unpaid Principal Balance, without a valuation allowance	14,768	14,358
Recorded Balance, Recorded Balance, with a valuation allowance	5,137	5,082
Unpaid Principal Balance, with a valuation allowance	5,232	5,082
Recorded Balance	17,552	17,468
Unpaid Principal Balance	20,000	19,440
Specific Allowance	509	510
One To Four Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	2,658	4,289
Unpaid Principal Balance, without a valuation allowance	2,712	4,403
Recorded Balance, Recorded Balance, with a valuation allowance	2,031	2,026
Unpaid Principal Balance, with a valuation allowance	2,031	2,026
Recorded Balance	4,689	6,315
Unpaid Principal Balance	4,743	6,429
Specific Allowance	243	344
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	8,178	7,226
Unpaid Principal Balance, without a valuation allowance	10,193	8,809
Recorded Balance, Recorded Balance, with a valuation allowance	1,762	1,787
Unpaid Principal Balance, with a valuation allowance	1,762	1,787
Recorded Balance	9,940	9,013
Unpaid Principal Balance	11,955	10,596
Specific Allowance	63	61
Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	679	213
Unpaid Principal Balance, without a valuation allowance	794	328
Recorded Balance, Recorded Balance, with a valuation allowance	100	100
Unpaid Principal Balance, with a valuation allowance	100	100
Recorded Balance	779	313
Unpaid Principal Balance	894	428
Specific Allowance	5	6
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 Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	900	658
Unpaid Principal Balance, without a valuation allowance	1,069	818
Recorded Balance, Recorded Balance, with a valuation allowance	933	851
Unpaid Principal Balance, with a valuation allowance	1,028	851
Recorded Balance	1,833	1,509
Unpaid Principal Balance	2,097	1,669
Specific Allowance	164	61
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	311	318
Unpaid Principal Balance, with a valuation allowance	311	318
Recorded Balance	311	318
Unpaid Principal Balance	311	318
Specific Allowance	$ 34	$ 38

ALLOWANCE FOR LOAN LOSSES (De56

ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Average Investment in Impaired Loans, without a valuation allowance	$ 12,684	$ 17,086	$ 12,700	$ 17,117
Interest Income Recognized, without a valuation allowance	43	167	135	320
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	5,201	7,142	5,222	7,165
Interest Income Recognized, with a valuation allowance	27	73	94	146
Average Investment in Impaired Loans	17,885	24,228	17,922	24,282
Interest Income Recognized	70	240	229	466
One To Four Family Residential [Member]
Average Investment in Impaired Loans, without a valuation allowance	2,681	5,598	2,690	5,607
Interest Income Recognized, without a valuation allowance	19	45	55	87
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	2,036	2,190	2,043	2,198
Interest Income Recognized, with a valuation allowance		22	24	44
Average Investment in Impaired Loans	4,717	7,788	4,733	7,805
Interest Income Recognized	19	67	79	131
Commercial Real Estate Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	8,416	9,536	8,419	9,555
Interest Income Recognized, without a valuation allowance	13	114	59	214
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	1,768	3,186	1,775	3,196
Interest Income Recognized, with a valuation allowance	14	35	41	69
Average Investment in Impaired Loans	10,184	12,722	10,194	12,751
Interest Income Recognized	27	149	100	283
Home Equity Line of Credit [Member]
Average Investment in Impaired Loans, without a valuation allowance	679	713	679	714
Interest Income Recognized, without a valuation allowance	3		5	1
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	100	431	100	431
Interest Income Recognized, with a valuation allowance	1	1	2	2
Average Investment in Impaired Loans	779	1,144	779	1,145
Interest Income Recognized	4	1	7	3
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
Interest Income Recognized, with a valuation allowance
Average Investment in Impaired Loans
Interest Income Recognized
Other Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	908	1,239	912	1,241
Interest Income Recognized, without a valuation allowance	8	8	16	18
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	985	1,009	989	1,014
Interest Income Recognized, with a valuation allowance	8	10	18	21
Average Investment in Impaired Loans	1,893	2,248	1,901	2,255
Interest Income Recognized	16	18	34	39
Commercial Portfolio Segment [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	312	326	315	326
Interest Income Recognized, with a valuation allowance	4	5	9	10
Average Investment in Impaired Loans	312	326	315	326
Interest Income Recognized	$ 4	$ 5	$ 9	$ 10

ALLOWANCE FOR LOAN LOSSES (De57

ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 9,436	$ 7,280
One To Four Family Residential [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	2,246	2,893
Commercial Real Estate Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	5,179	3,628
Home Equity Line of Credit [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	528	320
Residential Construction [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual
Other Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	1,434	384
Commercial Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	48	55
Consumer Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 1

ALLOWANCE FOR LOAN LOSSES (De58

ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
TDR loans	$ 13,091	$ 14,601
Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	9,603	11,206
Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,488	3,395
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,349	4,393
One To Four Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,138	4,182
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	211	211
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	7,311	8,056
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	4,451	5,134
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,860	2,922
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	213	313
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	213	313
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans
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 Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,896	1,509
Other Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,490	1,259
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	406	250
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	322	330
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	311	318
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	$ 11	$ 12

ALLOWANCE FOR LOAN LOSSES (De59

ALLOWANCE FOR LOAN LOSSES (Details 9) - Forgiveness of Principal [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)LoansModifications
Number of Loans | LoansModifications	1
Pre-modification Outstanding Recorded Investment	$ 1,988
Post-modification Outstanding Recorded Investment	$ 1,693
Commercial Real Estate Portfolio Segment [Member]
Number of Loans | LoansModifications	1
Pre-modification Outstanding Recorded Investment	$ 1,988
Post-modification Outstanding Recorded Investment	$ 1,693

REAL ESTATE OWNED (Details)

REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Real Estate Owned Details
Real estate owned, gross	$ 6,769		$ 6,741
Less: Valuation allowance	1,356	$ 1,651	1,372	$ 1,558	$ 1,606	$ 1,760
Real estate owned, net	$ 5,413		$ 5,369

REAL ESTATE OWNED (Details 2)

REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Real Estate Owned Valuation Allowance [Roll Forward]
Valuation allowance, beginning	$ 1,651	$ 1,606	$ 1,372	$ 1,760
Provision charged to expense	166	23	508	91
Reduction due to disposal	(461)	(71)	(524)	(293)
Valuation allowance, ending	1,356	$ 1,558	1,356	$ 1,558
Real estate acquired through foreclosure	6,769		6,769		$ 6,741
Residential Real Estate [Member]
Real Estate Owned Valuation Allowance [Roll Forward]
Real estate acquired through foreclosure	300		300		700
Other real estate	$ 1,900		$ 1,900		$ 1,400

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Deposits By Type [Line Items]
Balance	$ 828,874	$ 692,537	$ 828,874	$ 692,537	$ 716,617
Interest Expense	1,032	1,149	1,974	2,358	4,334
Interest-bearing Deposits [Member]
Deposits By Type [Line Items]
Balance	116,648	98,447	116,648	98,447	103,198
Interest Expense			94	76	136
Money Market Funds [Member]
Deposits By Type [Line Items]
Balance	236,750	171,475	236,750	171,475	180,377
Interest Expense			324	294	558
Savings Deposits [Member]
Deposits By Type [Line Items]
Balance	38,057	30,043	38,057	30,043	35,838
Interest Expense			26	16	33
Time deposit [Member]
Deposits By Type [Line Items]
Balance	310,409	296,968	310,409	296,968	276,142
Interest Expense			1,530	1,972	3,607
Noninterest-bearing demand [Member]
Deposits By Type [Line Items]
Balance	$ 127,010	$ 95,604	127,010	95,604	121,062
Interest Expense
Noninterest-bearing demand [Member]
Deposits By Type [Line Items]
Interest Expense

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance	$ 193,500	$ 153,500
Rate	0.75%	0.65%
Maturity 2016 [Member]
Balance	$ 130,000	$ 130,000
Rate	0.58%	0.49%
Maturity 2017 [Member]
Balance	$ 38,000	$ 8,000
Rate	0.88%	1.23%
Maturity 2018 [Member]
Balance	$ 12,000	$ 2,000
Rate	0.91%	1.25%
Maturity 2019 [Member]
Balance	$ 12,500	$ 12,500
Rate	1.82%	1.82%
Maturity 2020 [Member]
Balance	$ 1,000	$ 1,000
Rate	1.78%	1.78%

DERIVATIVE FINANCIAL INSTRUME64

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Asset derivatives, Fair value	$ 118	$ 45
Liability derivatives, Fair value	43
Mortgage banking - loan commitment [Member]
Asset derivatives, Fair value	99	30
Mortgage loan forward sales commitments [Member]
Asset derivatives, Fair value	19	$ 15
Interest rate swaps [Member]
Liability derivatives, Fair value	$ 43

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Deferred tax assets:
Federal net operating loss	$ 10,445	$ 10,750
Allowance for loan losses	3,303	3,557
Deferred compensation and post employment benefits	3,415	3,498
North Carolina NOL carryover	698	988
Valuation reserve for other real estate	501	516
Non-accrual interest	325	286
Tax credits and other carryforwards	308	197
Deferred gains	195	154
Unrealized losses on securities		697
Loan basis difference	288
Deposit premium	209
Other	740	421
Gross deferred tax assets	20,427	21,064
Fixed assets	437	499
Loan servicing rights	884	881
Deferred loan costs	908	708
Prepaid expenses	149	146
Unrealized gains on securities	1,700
Other	392
Total deferred tax liabilities	4,470	2,234
Net deferred tax asset	$ 15,957	$ 18,830

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share Details
Net income	$ 858	$ 17,105	$ 2,224	$ 19,720
Weighted average shares outstanding	6,466,665	6,546,375	6,492,209	6,546,375
Effect of dilutive securities	15,414		14,276
Average shares outstanding	6,482,079	6,546,375	6,506,485	6,546,375
Earnings per share - basic	$ 0.13	$ 2.61	$ 0.34	$ 3.01
Earnings per share - diluted	$ 0.13	$ 2.61	$ 0.34	$ 3.01
Anti-dilutive shares not included in calculating earnings per share (in shares)	411,500		411,500

ACCUMULATED OTHER COMPREHENSI67

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Balance, beginning of period	$ 721	$ (364)	$ (1,736)	$ (2,269)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	94	(675)	295	54
Change in unrealized holding gain (loss) on securities available for sale	3,049	(2,172)	6,504	(152)
Reclassification adjustment for net securities gains realized in net income	(429)	(123)	(698)	(287)
Transfer of net unrealized loss from available for sale to held to maturity	139		570
Amortization of unrealized gains and losses on securities transferred to held to maturity	(43)	493	(43)	542
Income tax benefit (expense)	(1,024)	675	(2,385)	(54)
Balance, end of period	2,507	(2,166)	2,507	(2,166)
Available-for-sale Securities [Member]
Balance, beginning of period	1,394	910	(594)	(236)
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	3,049	(2,172)	6,504	(152)
Reclassification adjustment for net securities gains realized in net income	(429)	(123)	(698)	(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
Income tax benefit (expense)	(984)	873	(2,182)	163
Balance, end of period	3,030	(512)	3,030	(512)
Held-to-maturity Securities [Member]
Balance, beginning of period	(295)	(1,135)	(563)	(1,165)
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	139		570
Amortization of unrealized gains and losses on securities transferred to held to maturity		493		542
Income tax benefit (expense)	(55)	(198)	(218)	(217)
Balance, end of period	(211)	(840)	(211)	(840)
Valuation Allowance of Deferred Tax Assets [Member]
Balance, beginning of period	(378)	(139)	(579)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	94	(675)	295
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	(284)	(814)	(284)	(814)
Cash flow Cash hedge [Member]
Balance, beginning of period				(868)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale				54
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	(43)		(43)
Income tax benefit (expense)	15		15
Balance, end of period	$ (28)		$ (28)

ACCUMULATED OTHER COMPREHENSI68

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax	$ 568	$ 616	$ 1,268	$ 829
Gain on sale of investments, net [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	429	123	698	287
Tax effect
Impact, net of tax	429	123	698	287
Investment Income (Expense) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	139	493	570	542
Tax effect
Impact, net of tax	$ 139	$ 493	$ 570	$ 542

COMMITMENTS AND CONTINGENCIES69

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2016USD ($)
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 95,065
Lines of credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	94,239
Standby Letters of Credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 826

COMMITMENTS AND CONTINGENCIES70

COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fixed	$ 24,280
Variable	27,706
Total	$ 51,986
Minimum [Member]
Fixed	2.75%
Variable	3.50%
Maximum [Member]
Fixed	7.99%
Variable	6.49%

COMMITMENTS AND CONTINGENCIES71

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Mortgage Loans Sold to Federal National Mortgage Association[Member]
Loss Contingencies [Line Items]
Obligation for representations and warranties, reserve	$ 300	$ 300
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Allowance for unfunded commitments	$ 100	$ 100

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 298,835	$ 245,966
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	296,325	243,576
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	7,167	6,824
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	289,158	236,752
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	2,510	2,390
Trading account assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	4,991	4,714
Trading account assets [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	7,167	4,714
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	1,557	1,510
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	619	600
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	13,234	25,720
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	97,641	39,858
Available-for-sale Securities [Member] | Collateralized 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	170,971	171,174
Available-for-sale Securities [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	7,312
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	4,991	6,824
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [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	1,557	1,510
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [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	619	600
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	289,158	236,752
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [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	13,234	25,720
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [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	97,641	39,858
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized 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	170,971	171,174
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	7,312
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	2,392	2,344
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	2,392	2,344
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	19	16
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	19	16
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	99	30
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	$ 99	$ 30

FAIR VALUE DISCLOSURES (Detai73

FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures Details 2
Balance at beginning of period	$ 2,478	$ 2,368	$ 2,390	$ 2,248
Capitalization from loans sold	131	83	259	216
Fair value adjustment	(138)	(157)	(212)	(245)
Mortgage derivative gains included in Other income	39	(118)	73	(43)
Balance at end of period	$ 2,510	$ 2,176	$ 2,510	$ 2,176

FAIR VALUE DISCLOSURES (Detai74

FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets measured at fair value on nonrecurring basis	$ 18,324	$ 17,629
Impaired loans measured at present value	4,600	5,200
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value on nonrecurring basis	18,324	17,629
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	3,055	4,163
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	8,178	7,226
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	679	213
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	999	658
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	3,055	4,163
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	8,178	7,226
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	679	213
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	999	658
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	1,958	1,384
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,008	1,123
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	2,447	2,862
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	1,958	1,384
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,008	1,123
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	$ 2,447	$ 2,862

FAIR VALUE DISCLOSURES (Detai75

FAIR VALUE DISCLOSURES (Details 4)	6 Months Ended
	Jun. 30, 2016
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] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment Speed	5.00%
Discount rate	12.00%
Loan Servicing Rights[Member] | Discounted Cash Flow Method [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment Speed	35.00%
Discount rate	14.00%
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	108.00%

FAIR VALUE DISCLOSURES (Detai76

FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets:
Cash and equivalents	$ 57,945	$ 40,650	$ 28,995	$ 58,982
Trading securities	4,991	4,714
Securities available for sale	291,334	238,862
Securities held to maturity	30,907	41,164
Other investments, at cost	10,798	8,834
Interest receivable	4,260	3,554
Bank owned life insurance	21,059	20,858
Loan servicing rights	2,392	2,344
Liabilities:
Federal Home Loan Bank advances	193,500	153,500
Junior subordinated debentures	14,433	14,433
Other borrowings	2,675	2,198
Accrued interest payable	265	213
Reported Value Measurement [Member]
Assets:
Cash and equivalents	57,945	40,650
Trading securities	4,991	4,714
Securities available for sale	291,334	238,862
Securities held to maturity	30,907	41,164
Loans held for sale	7,300	8,348
Loans receivable, net	721,461	624,072
Other investments, at cost	10,798	8,834
Interest receivable	4,260	3,554
Bank owned life insurance	21,059	20,858
Loan servicing rights	2,392	2,344
Liabilities:
Demand deposits	518,465	440,475
Time deposits	310,409	276,142
Federal Home Loan Bank advances	193,500	153,500
Junior subordinated debentures	14,433	14,433
Other borrowings	2,675
Accrued interest payable	265	213
Interest rate swap	43
Reported Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	19	16
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	99	30
Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents	57,945	40,650
Trading securities	4,991	4,714
Securities available for sale	291,334	238,862
Securities held to maturity	31,970	41,812
Loans held for sale	8,011	8,952
Loans receivable, net	714,929	620,516
Other investments, at cost	10,798	8,834
Interest receivable	4,260	3,554
Bank owned life insurance	21,059	20,858
Loan servicing rights	2,392	2,344
Liabilities:
Demand deposits	518,465	440,475
Time deposits	311,243	275,403
Federal Home Loan Bank advances	193,946	153,441
Junior subordinated debentures	14,433	14,433
Other borrowings	2,853
Accrued interest payable	265	213
Interest rate swap	43
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	19	16
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	99	30
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents	57,945	40,650
Trading securities	4,991	4,714
Securities available for sale	2,176	2,110
Securities held to maturity	1,002	995
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
Other borrowings
Accrued interest payable
Interest rate swap
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents
Trading securities
Securities available for sale	289,158	236,752
Securities held to maturity	30,968	40,817
Loans held for sale	8,011	8,952
Loans receivable, net
Other investments, at cost	10,798	8,834
Interest receivable	4,260	3,554
Bank owned life insurance	21,059	20,858
Loan servicing rights
Liabilities:
Demand deposits	518,465	440,475
Time deposits
Federal Home Loan Bank advances	193,946	153,441
Junior subordinated debentures	14,433	14,433
Other borrowings
Accrued interest payable	265	213
Interest rate swap	43
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents
Trading securities
Securities available for sale
Securities held to maturity
Loans held for sale
Loans receivable, net	714,929	620,516
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights	2,392	2,344
Liabilities:
Demand deposits
Time deposits	311,243	275,403
Federal Home Loan Bank advances
Junior subordinated debentures
Other borrowings	2,853
Accrued interest payable
Interest rate swap
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	19	16
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	$ 99	$ 30

SHARE REPURCHASES (Details)

SHARE REPURCHASES (Details) - $ / shares	1 Months Ended			6 Months Ended
	Apr. 30, 2016	Mar. 31, 2016	Feb. 29, 2016	Jun. 30, 2016	May 31, 2016	Jan. 28, 2016
Share Repurchases Details
Number of Shares Authorized to be Repurchased						327,318
Number of Shares Purchased	5,997	33,382	40,621	80,000
Average Price Paid per Share	$ 17.65	$ 17.70	$ 17.04	$ 17.42
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs	247,318	253,315	286,697	247,318	247,318