Entegra Financial (ENFC) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
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, 2017
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		6,458,679
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 13,474	$ 10,709
Interest-earning deposits	66,637	32,585
Cash and cash equivalents	80,111	43,294
Investments - trading	5,636	5,211
Investments - available for sale	427,831	398,291
Other investments, at cost	12,208	15,261
Loans held for sale	3,668	4,584
Loans receivable, net	794,687	744,361
Allowance for loan losses	(9,934)	(9,305)
Fixed assets, net	21,022	20,209
Real estate owned	2,487	4,226
Interest receivable	5,211	5,012
Bank owned life insurance	31,742	31,347
Small Business Investment Company Holdings, at cost	2,771	1,655
Net deferred tax asset	15,851	18,985
Loan servicing rights	2,718	2,603
Goodwill	7,144	2,065
Core deposit intangible	2,470	979
Other assets	3,853	4,099
Total assets	1,409,476	1,292,877
Liabilities:
Deposits	1,013,998	830,013
Federal Home Loan Bank advances	223,500	298,500
Junior subordinated notes	14,433	14,433
Other borrowings	3,371	2,725
Post employment benefits	10,163	10,211
Accrued interest payable	644	254
Other liabilities	3,234	3,673
Total liabilities	1,269,343	1,159,809
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; 6,455,145 and 6,467,550 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively
Common stock held by Rabbi Trust, at cost; 14,000 shares at June 30, 2017 and December 31, 2016	(279)	(279)
Additional paid in capital	62,802	62,664
Retained earnings	79,541	76,139
Accumulated other comprehensive loss	(1,931)	(5,456)
Total equity	140,133	133,068
Total liabilities and equity	$ 1,409,476	$ 1,292,877

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
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	6,458,679	6,467,550
Common stock, shares outstanding	6,458,679	6,467,550
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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income:
Interest and fees on loans	$ 9,035	$ 8,255	$ 17,511	$ 15,461
Interest on tax exempt loans	98	98	187	143
Taxable securities	1,821	1,422	3,580	2,880
Tax-exempt securities	798	306	1,529	449
Interest-earning deposits	127	54	243	90
Other	145	122	317	227
Total interest and dividend income	12,024	10,257	23,367	19,250
Interest expense:
Deposits	1,085	1,032	2,113	1,974
Federal Home Loan Bank advances	542	319	1,072	594
Junior subordinated notes	141	128	278	254
Other borrowings	34	30	64	56
Total interest expense	1,802	1,509	3,527	2,878
Net interest income	10,222	8,748	19,840	16,372
Provision for loan losses	325		640
Net interest income after provision for loan losses	9,897	8,748	19,200	16,372
Noninterest income:
Servicing income, net	158	75	253	191
Mortgage banking	344	220	564	360
Gain on sale of SBA loans	4	284	146	618
Gain on sale of investments, net	36	429	43	698
Trading securities gains	100	104	307	178
Other than temporary impairment on cost method investment			(700)
Service charges on deposit accounts	412	387	803	781
Interchange fees	480	382	890	724
Bank owned life insurance	214	94	395	201
Other	182	124	312	223
Total noninterest income	1,930	2,099	3,013	3,974
Noninterest expenses:
Compensation and employee benefits	5,086	4,257	9,922	8,267
Net occupancy	926	835	1,877	1,651
Federal deposit insurance	135	184	239	360
Professional and advisory	363	293	637	505
Data processing	424	400	825	751
Marketing and advertising	226	302	474	502
Merger-related expenses	408	1,771	856	1,916
Net cost of operation of real estate owned	81	210	215	496
Other	1,218	1,061	2,429	2,144
Total noninterest expenses	8,867	9,313	17,474	16,592
Income before taxes	2,960	1,534	4,739	3,754
Income tax expense (benefit)	858	676	1,337	1,530
Net income (loss)	$ 2,102	$ 858	$ 3,402	$ 2,224
Earnings per common share:
Earnings per share - basic	$ 0.33	$ 0.13	$ 0.53	$ 0.34
Earnings per share - diluted	$ 0.32	$ 0.13	$ 0.52	$ 0.34
Weighted average common shares outstanding:
Common shares outstanding - Basic	6,456,572	6,466,665	6,460,693	6,492,209
Common shares outstanding - Diluted	6,549,000	6,482,079	6,540,524	6,506,485

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,102	$ 858	$ 3,402	$ 2,224
Other comprehensive income (loss):
Change in unrealized holding gains and losses on securities available for sale	4,510	3,049	5,431	6,504
Reclassification adjustment for securities gains realized in net income	(36)	(429)	(43)	(698)
Reclassification adjustment for other than temporary impairment realized in net income			79
Amortization of unrealized loss on securities transferred to held to maturity		139		570
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale	55	94	109	295
Change in unrealized holding gains and losses on cash flow hedge	(107)	(45)	(68)	(45)
Reclassification adjustment for cash flow effectiveness	2		20
Other comprehensive income (loss), before tax	4,424	2,808	5,528	6,626
Income tax effect related to items of other comprehensive income (loss)	(1,615)	(1,022)	(2,003)	(2,383)
Other comprehensive income (loss), after tax	2,809	1,786	3,525	4,243
Comprehensive income (loss)	$ 4,911	$ 2,644	$ 6,927	$ 6,467

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, 2015		$ 63,722	$ 69,763	$ (1,736)	$ (279)	$ 131,469
Beginning Balance (in shares) at Dec. 31, 2015	6,546,375
Net income (loss)			1,366			1,366
Other comprehensive income, net of tax				2,457		2,457
Stock compensation expense		208				208
Repurchase of common stock		(1,263)				(1,263)
Repurchase of common stock (in shares)	(74,003)
Ending Balance at Mar. 31, 2016		62,667	71,129	721	(279)	134,238
Ending Balance (in shares) at Mar. 31, 2016	6,472,372
Beginning Balance at Dec. 31, 2016		62,664	76,139	(5,456)	(279)	133,068
Beginning Balance (in shares) at Dec. 31, 2016	6,467,550
Net income (loss)			3,402			3,402
Other comprehensive income, net of tax				3,525		3,525
Stock compensation expense		458				458
Vesting of restricted stock units, net shares surrendered		(19)				(19)
Vesting of restricted stock units (in shares)	4,129
Repurchase of common stock		(301)				(301)
Repurchase of common stock (in shares)	(13,000)
Ending Balance at Jun. 30, 2017		$ 62,802	$ 79,541	$ (1,931)	$ (279)	$ 140,133
Ending Balance (in shares) at Jun. 30, 2017	6,458,679

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 3,402	$ 2,224
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and leasehold amortization	(45)	434
Investment amortization, net	2,299	1,257
Trading account income	(307)	(178)
Provision for loan losses	640
Provision for real estate owned	167	508
Share-based compensation expense	458	427
Deferred income tax expense	1,240	1,598
Gain on sales of securities available for sale	(43)	(698)
Other than temporary impairment on cost method investment	700
Income on bank owned life insurance, net	(395)	(201)
Mortgage banking income, net	(564)	(360)
Gain on sale of SBA loans	(146)	(618)
Net realized loss on sale of real estate owned	(41)	(178)
Loans originated for sale	(24,789)	(14,897)
Proceeds from sale of loans originated for sale	25,272	16,923
Net change in operating assets and liabilities:
Interest receivable	(199)	(154)
Loan servicing rights	(115)	(48)
Other assets	189	105
Postemployment benefits	(48)	29
Accrued interest payable	73	22
Other liabilities	74	626
Net cash provided by operating activities	7,822	6,821
Activity for investment securities:
Purchases	(85,094)	(103,802)
Maturities/calls and principal repayments	21,222	24,760
Sales	36,842	75,709
Net (increase) decrease in loans	(47,909)	(33,339)
Net cash received in branch acquisition	146,750
Proceeds from sale of real estate owned	770	1,222
Purchase of fixed assets	(343)	(144)
Purchase of other investments, at cost		(1,410)
Purchase of Small Business Investment Company Holdings, at cost	(1,116)	(36)
Net cash paid in business combination		(5,912)
Redemptions of other investments, at cost	3,053
Net cash used in investing activities	74,176	(42,952)
Cash flows from financing activities:
Net increase (decrease) in deposits	28,829	23,026
Net increase (decrease) in escrow deposits	1,310	815
Proceeds from FHLB advances	573,500	295,000
Repayment of FHLB advances	(648,500)	(264,025)
Proceeds from sale of common stock	(320)	(1,390)
Net cash provided by financing activities	(45,181)	53,426
Increase (decrease) in cash and cash equivalents	36,817	17,295
Cash and cash equivalents, beginning of period	43,294	40,650
Cash and cash equivalents, end of period	80,111	57,945
Cash paid during the year for:
Interest on deposits and other borrowings	3,454	2,945
Income taxes	75
Acquisitions
Assets acquired	3,997	110,196
Liabilities assumed	154,505	97,877
Net assets	150,508	12,319
Noncash investing and financing activities:
Real estate acquired in satisfaction of loans	220	673
Purchased investments to be settled		2,293
Loans originated for the disposition of real estate owned	$ 1,001

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
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 commercial bank and has a wholly owned subsidiary, Entegra Services, Inc., which was inactive as of June 30, 2017. 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, 2017. 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. Recent Accounting Standards Updates In March 2017, the Financial Accounting Standards Board (FASB) issued amendments to Accounting Standards Update (“ASU”) 2017-08 Receivables –Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. In March 2017, the FASB issued amendments to ASU 2017-07 Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension cost and Net Periodic Postretirement Benefit Cost. In January 2017, the FASB issued amendments to ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued amendments to ASU 2017-01 Business Combinations (Topic 80): Clarifying the Definition of a Business. 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.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
ACQUISITIONS	NOTE 2. ACQUISITIONS The Company has determined that the acquisition described below constitutes a business combination as defined in Accounting Standards Codification (ASC) Topic 805, Business Combinations Fair Value Measurements On February 24, 2017, the Bank completed its acquisition of two branches from Stearns Bank, N.A. (“Stearns”). In accordance with the Purchase and Assumption Agreement, dated October 19, 2016, by and between the Bank and Stearns (the “P&A Agreement”), the Bank acquired approximately $154.2 million of deposits, the bank facilities, and certain other assets. In consideration of the purchased assets and assumed liabilities, the Bank paid (1) the book value, or approximately $1.0 million, for the branch facilities and certain assets, and (2) a deposit premium of $5.7 million, equal to 3.65% of the average daily deposits for the 30- day period ending the tenth (10 th (Dollars in thousands) As Recorded by Stearns Fair Value Adjustments As Recorded by the Company Assets Cash and cash equivalents $ 1,258 $ — $ 1,258 Loans 7 — 7 Premises and equipment 950 132 1,082 Core deposit intangible — 1,650 1,650 Total assets acquired 2,215 1,782 3,997 Liabilities Deposits: Noninterest-bearing demand $ 16,032 $ — 16,032 Interest-bearing demand 40,525 — 40,525 Money market 15,368 — 15,368 Savings 7,717 — 7,717 Time deposits 73,480 1,062 74,542 Total deposits 153,122 1,062 154,184 Other liabilities 321 — 321 Total liabilities assumed 153,443 1,062 154,505 Excess of liabilities assumed over assets acquired $ 151,228 $ 720 $ 150,508 Cash received to settle the acquisition $ 145,492 Goodwill $ 5,016 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 real estate owned (REO) may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition. Pro forma disclosures are not significant and not meaningful. On June 26, 2017, the Company entered into a definitive agreement with Chattahoochee Bank of Georgia (“Chattahoochee”) pursuant to which the Company will acquire Chattahoochee through a combination of cash and stock valued at approximately $34.9 million. Chattahoochee currently operates one branch in Gainesville, Georgia and a loan production office in Duluth, Georgia and will add approximately $197 million in assets, $155 million in loans, and $166 million in deposits upon closing. The transaction is expected to close in the fourth quarter of 2017 subject to customary closing conditions, including regulatory approvals, and approval of Chattahoochee’s shareholders.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 3. INVESTMENT SECURITIES The following table presents the holdings of our trading account as of June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 (Dollars in thousands) Mutual funds $ 5,636 $ 5,211 The trading account is held in a Rabbi Trust and seeks to generate returns that will fund the cost of certain deferred compensation agreements. There were $0.3 million and $0.2 million of realized gains for the six months ended June 30, 2017 and 2016, respectively. The Company’s held-to-maturity (HTM) investment portfolio was transferred to available-for-sale (AFS) during the third quarter of 2016 in order to provide the Company more flexibility managing its investment portfolio. As a result of the transfer, the Company is prohibited from classifying any investment securities as HTM for two years from the date of the transfer. On April 28, 2017, the Louisiana Office of Financial Institutions closed First NBC Bank and appointed the FDIC as receiver. The Bank owned $0.7 million par value of subordinated debt issued by the holding company of First NBC Bank with an unrealized loss of $79,000 prior to the impairment. The Company concluded the investment to be other than temporarily impaired. As such, the financial information for the six months ended June 30, 2017 includes other than temporary impairment of $0.7 million before tax. The amortized cost and estimated fair values of AFS securities as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 1,000 $ 4 $ — $ 1,004 Municipal securities 153,811 662 (2,947 ) 151,526 Mortgage-backed securities U.S. government agencies 156,605 379 (1,318 ) 155,666 SBA securities 39,677 61 (119 ) 39,619 Agency collateralized mortgage obligations 13,965 48 (134 ) 13,879 Non-agency collateralized mortgage obligations 41,083 34 (330 ) 40,787 U.S. Treasury securities 2,501 14 (3 ) 2,512 Corporate bonds 21,910 367 (53 ) 22,224 Mutual funds 622 — (8 ) 614 $ 431,174 $ 1,569 $ (4,912 ) $ 427,831 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,076 $ 31 $ — $ 12,107 Municipal securities 152,208 337 (5,774 ) 146,771 Mortgage-backed securities U.S. government agencies 128,820 107 (2,161 ) 126,766 SBA securities 30,002 13 (303 ) 29,712 Agency collateralized mortgage obligations 17,049 14 (173 ) 16,890 Non-agency collateralized mortgage obligations 45,475 2 (908 ) 44,569 U.S. Treasury securities 2,501 15 (2 ) 2,514 Corporate bonds 18,354 171 (167 ) 18,358 Mutual funds 616 — (12 ) 604 $ 407,101 $ 690 $ (9,500 ) $ 398,291 Information pertaining to securities with gross unrealized losses at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2017 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 101,034 $ 2,760 $ 3,575 $ 187 $ 104,609 $ 2,947 Mortgage-backed securities U.S. government agencies 87,949 1,031 12,717 287 100,666 1,318 SBA 13,081 38 12,230 81 25,311 119 Agency collateralized mortgage obligations 5,817 91 1,755 43 7,572 134 Non-agency collateralized mortgage obligations 34,114 308 4,214 22 38,328 330 U.S. Treasury securities 998 3 — — 998 3 Corporate debt securities 1,537 53 — — 1,537 53 Mutual funds 614 8 — — 614 8 $ 245,144 $ 4,292 $ 34,491 $ 620 $ 279,635 $ 4,912 December 31, 2016 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 122,468 $ 5,759 $ 331 $ 15 $ 122,799 $ 5,774 Mortgage-backed securities U.S. government agencies 101,382 2,068 5,102 93 106,484 2,161 SBA 15,199 145 11,434 158 26,633 303 Agency collateralized mortgage obligations 13,135 127 1,058 46 14,193 173 Non-agency collateralized mortgage obligations 40,378 908 — — 40,378 908 U.S. Treasury securities 1,000 2 — — 1,000 2 Corporate debt securities 6,741 167 — — 6,741 167 Mutual funds 616 12 — — 616 12 $ 300,919 $ 9,188 $ 17,925 $ 312 $ 318,844 $ 9,500 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, 2017 and December 31, 2016 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, 2017 Less Than 12 Months More Than 12 Months Total Municipal securities 92 3 95 Mortgage-backed securities U.S. government agencies 61 8 69 SBA 9 9 18 Agency collateralized mortgage obligations 4 2 6 Non-agency collateralized mortgage obligations 16 3 19 U.S. Treasury securities 1 — 1 Corporate debt securities 2 — 2 Mutual funds 1 — 1 186 25 211 December 31, 2016 Less Than 12 Months More Than 12 Months Total Municipal securities 129 1 130 Mortgage-backed securities U.S. government agencies 66 5 71 SBA 11 8 19 Agency collateralized mortgage obligations 7 1 8 Non-agency collateralized mortgage obligations 18 — 18 U.S. Treasury securities 1 — 1 Corporate debt securities 8 — 8 240 15 255 At June 30, 2017, the Company held 211 investment securities that were in an unrealized loss position of which 25 had been in unrealized loss positions for over twelve months. Market changes in interest rates and credit spreads may result in temporary unrealized losses as market prices of securities fluctuate. The Company reviews its investment portfolio on a quarterly basis for indications of other than temporary impairment. The severity and duration of impairment and the likelihood of potential recovery of impairment is considered along with the intent and ability to hold any impaired security to maturity or recovery of carrying value. When reviewing the securities in loss positions, pricing is reviewed for deterioration, bond ratings are reviewed for downgrades, and credit enhancement levels are reviewed for erosion. The Company determined all unrealized losses to be temporary as of June 30, 2017. At June 30, 2017, there was no intent to sell any of the securities in an unrealized loss position, and it is more likely than not the Company will not be required to sell these securities. For the three and six months ended June 30, 2017 and 2016 the Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands) (Dollars in thousands) Gross proceeds $ 19,518 $ 41,204 $ 36,842 $ 75,709 Gross realized gains 116 445 123 732 Gross realized losses 80 16 80 34 The Company had securities pledged against deposits and borrowings of approximately $185.5 million and $237.1 million at June 30, 2017 and December 31, 2016, respectively. The amortized cost and estimated fair value of investments in debt securities at June 30, 2017, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available-for-Sale Amortized Cost Fair Value (Dollars in thousands) Less than 1 year $ 1,780 $ 1,768 Over 1 year through 5 years 11,222 11,280 After 5 years through 10 years 27,464 27,769 Over 10 years 139,378 137,063 179,844 177,880 Mortgage-backed securities 251,330 249,951 Total $ 431,174 $ 427,831

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
LOANS RECEIVABLE	NOTE 4. LOANS RECEIVABLE Loans receivable as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30 December 31, 2017 2016 (Dollars in thousands) Real estate mortgage loans: One-to-four family residential $ 284,639 $ 278,437 Commercial real estate 318,267 292,879 Home equity loans and lines of credit 48,275 50,334 Residential construction 22,510 18,531 Other construction and land 74,907 60,605 Total real estate loans 748,598 700,786 Commercial and industrial 43,605 41,306 Consumer 5,196 4,594 Total commercial and consumer 48,801 45,900 Loans receivable, gross 797,399 746,686 Less: Net deferred loan fees (1,572 ) (923 ) Fair value discount (704 ) (857 ) Unamortized premium 520 605 Unamortized discount (956 ) (1,150 ) Loans receivable, net of deferred fees $ 794,687 $ 744,361 The Bank had $167.2 million and $144.3 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2017 and December 31, 2016, respectively. The Bank also had $93.2 million and $89.1 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2017 and December 31, 2016, respectively. Included in loans receivable and other borrowings at June 30, 2017 are $3.4 million in participated loans that did not qualify for sale accounting. Interest expense on the other borrowings accrues at the same rate as the interest income recognized on the loans receivable, resulting in no effect to net income. The following tables present the activity related to the discount on individually purchased loans for the three and six month periods ended June 30, 2017 and 2016: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Discount on purchased loans, beginning of period $ 1,083 $ 1,361 $ 1,150 $ 1,366 Accretion (127 ) (128 ) (194 ) (133 ) Discount on purchased loans, end of period $ 956 $ 1,233 $ 956 $ 1,233 The following table presents the activity related to the fair value discount on loans from business combinations for the three and six month periods ended June 30, 2017 and 2016: For the Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Fair value discount, beginning of period $ 786 $ 67 $ 857 $ 72 Additional discount for acquisitions — 960 — 960 Accretion (82 ) (187 ) (153 ) (192 ) Fair value discount, end of period $ 704 $ 840 $ 704 $ 840

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2017
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, 2017 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Provision 247 50 (97 ) 32 (30 ) 89 34 325 Charge-offs (46 ) — (1 ) — 53 — (9 ) (3 ) Recoveries 64 (34 ) 5 — 12 7 60 114 Ending balance $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Three Months Ended June 30, 2016 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,725 $ 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 Six Months Ended June 30, 2017 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Provision 555 162 (109 ) 63 167 (29 ) (169 ) 640 Charge-offs (50 ) (88 ) (1 ) — (175 ) — (24 ) (338 ) Recoveries 69 43 5 — 67 15 128 327 Ending balance $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Six Months Ended June 30, 2016 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 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 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the net investment in loans: June 30, 2017 One-to-four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 182 $ 82 $ 2 $ — $ 55 $ 27 $ — $ 348 Collectively evaluated for impairment 3,204 4,014 570 248 852 558 140 9,586 $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Loans Receivable Individually evaluated for impairment $ 4,158 $ 6,652 $ 313 $ — $ 1,321 $ 300 $ — $ 12,744 Collectively evaluated for impairment 278,930 310,156 48,060 22,449 73,297 43,781 5,270 781,943 $ 283,088 $ 316,808 $ 48,373 $ 22,449 $ 74,618 $ 44,081 $ 5,270 $ 794,687 December 31, 2016 One-to-four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 201 $ 178 $ 2 $ — $ 175 $ 28 $ — $ 584 Collectively evaluated for impairment 2,611 3,801 675 185 673 571 205 8,721 $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Loans Receivable Individually evaluated for impairment $ 3,769 $ 7,601 $ 313 $ — $ 1,682 $ 306 $ — $ 13,671 Collectively evaluated for impairment 273,169 284,502 50,087 18,439 58,444 41,397 4,652 730,690 $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 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. Description of segment and class risks Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. One-to-four family residential We centrally underwrite each of our one-to-four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. Commercial real estate Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customer’s business results are significantly unfavorable versus the original projections, the ability for our loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans are secured by real property and possibly other business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in our customer having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans are highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. Home equity and lines of credit Home equity loans are often secured by first or second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render our second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lienholders that may further weaken our collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. Residential construction and other construction and land Residential mortgage construction loans are typically secured by undeveloped or partially developed land with funds to be disbursed as home construction is completed contingent upon receipt and satisfactory review of invoices and inspections. Declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the collateral’s current market value. Non-commercial construction and land development loans can experience delays in completion and/or cost overruns that exceed the borrower’s financial ability to complete the project. Cost overruns can result in foreclosure of partially completed collateral with unrealized value and diminished marketability. Commercial construction and land development loans are dependent on the supply and demand for commercial real estate in the markets we serve as well as the demand for newly constructed residential homes and building lots. Deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for our customers. 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, 2017 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,999 $ — $ — $ — $ 1,022 $ — $ 11,021 2 1,184 4,205 — — — 1,176 — 6,565 3 27,994 34,062 2,118 501 4,433 5,045 — 74,153 4 84,747 159,813 3,411 11,343 35,803 22,759 306 318,182 5 22,858 86,260 2,172 4,440 17,151 12,586 21 145,488 6 2,332 10,917 — — 2,118 267 — 15,634 7 2,640 6,735 — — 466 441 — 10,282 $ 141,755 $ 311,991 $ 7,701 $ 16,284 $ 59,971 $ 43,296 $ 327 $ 581,325 Ungraded Loan Exposure: Performing $ 140,370 $ 4,817 $ 40,363 $ 5,953 $ 14,353 $ 785 $ 4,943 $ 211,584 Nonperforming 963 — 309 212 294 — — 1,778 Subtotal $ 141,333 $ 4,817 $ 40,672 $ 6,165 $ 14,647 $ 785 $ 4,943 $ 213,362 Total $ 283,088 $ 316,808 $ 48,373 $ 22,449 $ 74,618 $ 44,081 $ 5,270 $ 794,687 December 31, 2016 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,203 $ — $ — $ — $ 431 $ — $ 10,634 2 — 4,287 — — — 1,465 — 5,752 3 27,975 24,626 1,814 586 2,164 2,803 — 59,968 4 75,246 130,857 3,363 10,646 22,293 21,942 51 264,398 5 26,306 95,408 3,476 2,347 17,930 11,344 324 157,135 6 2,587 11,501 — 284 2,470 270 — 17,112 7 1,713 6,686 — — 869 421 — 9,689 $ 133,827 $ 283,568 $ 8,653 $ 13,863 $ 45,726 $ 38,676 $ 375 $ 524,688 Ungraded Loan Exposure: Performing $ 142,222 $ 8,535 $ 41,497 $ 4,576 $ 14,149 $ 3,027 $ 4,230 $ 218,236 Nonperforming 889 — 250 — 251 — 47 1,437 Subtotal $ 143,111 $ 8,535 $ 41,747 $ 4,576 $ 14,400 $ 3,027 $ 4,277 $ 219,673 Total $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 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, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 3,759 $ 426 $ 878 $ 5,063 $ 278,025 $ 283,088 Commercial real estate 831 — 2,053 2,884 313,924 316,808 Home equity and lines of credit 37 29 280 346 48,027 48,373 Residential construction — 212 — 212 22,237 22,449 Other construction and land 196 — 303 499 74,119 74,618 Commercial 535 — 34 569 43,512 44,081 Consumer 26 — — 26 5,244 5,270 Total $ 5,384 $ 667 $ 3,548 $ 9,599 $ 785,088 $ 794,687 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 4,917 $ 1,108 $ 427 $ 6,452 $ 270,486 $ 276,938 Commercial real estate 1,382 1,800 1,638 4,820 287,283 292,103 Home equity and lines of credit 126 44 231 401 49,999 50,400 Residential construction 180 — — 180 18,259 18,439 Other construction and land 468 — 794 1,262 58,864 60,126 Commercial 368 — — 368 41,335 41,703 Consumer 62 1 — 63 4,589 4,652 Total $ 7,503 $ 2,953 $ 3,090 $ 13,546 $ 730,815 $ 744,361 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of June 30, 2017 and December 31, 2016. June 30, 2017 December 31, 2016 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,035 $ 3,145 $ — $ 2,625 $ 2,723 $ — Commercial real estate 4,971 7,095 — 5,526 7,710 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 586 686 — 771 911 — Commercial — — — — — — $ 8,805 $ 11,254 $ — $ 9,135 $ 11,672 $ — Loans with a valuation allowance One-to four-family residential $ 1,123 $ 1,123 $ 182 $ 1,144 $ 1,144 $ 201 Commercial real estate 1,681 1,681 82 2,075 2,075 178 Home equity and lines of credit 100 100 2 100 100 2 Residential construction — — — — — — Other construction and land 735 735 55 911 911 175 Commercial 300 300 27 306 306 28 $ 3,939 $ 3,939 $ 348 $ 4,536 $ 4,536 $ 584 Total One-to four-family residential $ 4,158 $ 4,268 $ 182 $ 3,769 $ 3,867 $ 201 Commercial real estate 6,652 8,776 82 7,601 9,785 178 Home equity and lines of credit 313 428 2 313 428 2 Residential construction — — — — — — Other construction and land 1,321 1,421 55 1,682 1,822 175 Commercial 300 300 27 306 306 28 $ 12,744 $ 15,193 $ 348 $ 13,671 $ 16,208 $ 584 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, 2017 2016 2017 2016 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,145 $ 37 $ 2,681 $ 19 $ 3,167 $ 69 $ 2,690 $ 55 Commercial real estate 7,095 32 8,416 13 7,177 63 8,419 59 Home equity and lines of credit 328 13 679 3 328 24 679 5 Other construction and land 686 5 908 8 689 10 912 16 $ 11,254 $ 87 $ 12,684 $ 43 $ 11,361 $ 166 $ 12,700 $ 135 Loans with a valuation allowance One-to four-family residential $ 1,125 $ 12 $ 2,036 $ — $ 1,134 $ 25 $ 2,043 $ 24 Commercial real estate 1,684 22 1,768 14 1,695 43 1,775 41 Home equity and lines of credit 100 1 100 1 100 2 100 2 Other construction and land 735 10 985 8 764 19 989 18 Commercial 300 6 312 4 304 11 315 9 $ 3,944 $ 51 $ 5,201 $ 27 $ 3,997 $ 100 $ 5,222 $ 94 Total One-to four-family residential $ 4,270 $ 49 $ 4,717 $ 19 $ 4,301 $ 94 $ 4,733 $ 79 Commercial real estate 8,779 54 10,184 27 8,872 106 10,194 100 Home equity and lines of credit 428 14 779 4 428 26 779 7 Other construction and land 1,421 15 1,893 16 1,453 29 1,901 34 Commercial 300 6 312 4 304 11 315 9 $ 15,198 $ 138 $ 17,885 $ 70 $ 15,358 $ 266 $ 17,922 $ 229 Nonperforming Loans The following table summarizes the balances of nonperforming loans as of June 30, 2017 and December 31, 2016. 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, 2017 December 31, 2016 (Dollars in thousands) One-to four-family residential $ 1,554 $ 1,125 Commercial real estate 3,771 3,536 Home equity loans and lines of credit 309 250 Residential construction 211 — Other construction and land 708 1,042 Commercial 34 41 Consumer — 47 Non-performing loans $ 6,587 $ 6,041 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: June 30, 2017 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,506 $ 210 $ 3,716 Commercial real estate 4,557 2,284 6,841 Home equity and lines of credit 312 — 312 Other construction and land 1,122 219 1,341 Commercial 300 — 300 $ 9,797 $ 2,713 $ 12,510 December 31, 2016 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,560 $ 210 $ 3,770 Commercial real estate 4,327 2,366 6,693 Home equity and lines of credit 313 — 313 Other construction and land 1,377 206 1,583 Commercial 305 — 305 $ 9,882 $ 2,782 $ 12,664 There were no loan modifications that were deemed TDRs at the time of the modification during the three and six month periods ended June 30, 2017 or 2016. There were no TDR’s that defaulted during the three and six month periods ending June 30, 2017 and 2016 and which were modified as TDR’s within the previous 12 months.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 6. GOODWILL AND OTHER INTANGIBLES The Company had $7.1 million and $2.1 million of goodwill as of June 30, 2017 and December 31, 2016, respectively. The following is a summary of changes in the carrying amounts of goodwill: As of and for the Six Months Ending As of and for the Year Ending June 30, December 31, 2017 2016 Dollars in thousands Balance at beginning of period $ 2,065 $ 711 Additions: Prior acquisitions measurement period adjustments 63 — Goodwill from current year acquisitions 5,016 1,354 Balance at end of period $ 7,144 $ 2,065 The Company’s other intangible assets consist of core deposit intangibles related to acquired core deposits. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: As of and for the Six Months Ending As of and for the Year Ending June 30, December 31, 2017 2016 Dollars in thousands Gross balance at beginning of period $ 1,120 $ 590 Additions from acquisitions 1,650 530 Gross balance at end of period 2,770 1,120 Less accumulated amortization (300 ) (141 ) Core deposit intangible, net $ 2,470 $ 979 Core deposit intangibles are amortized using the straight-line method over their estimated useful lives of seven years. Estimated amortization expense for core deposit intangibles for each of the next five years is approximately $0.4 million per year.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016 and the year ended December 31, 2016. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2017 2016 2016 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 163,784 $ — $ 127,010 $ — $ 139,136 $ — Interest-bearing demand 176,788 93 116,648 94 122,271 160 Money Market 261,127 455 236,750 324 239,387 770 Savings 48,687 25 38,057 26 40,014 49 Time Deposits 363,612 1,540 310,409 1,530 289,205 2,985 $ 1,013,998 $ 2,113 $ 828,874 $ 1,974 $ 830,013 $ 3,964

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2017
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, 2017 December 31, 2016 Year of Maturity Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in thousands) 2017 $ 175,500 1.01 % $ 273,500 0.64 % 2018 45,000 1.24 % 25,000 1.17 % 2019 3,000 1.56 % — — $ 223,500 1.06 % $ 298,500 0.68 %

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2017
Derivative Financial Instruments And Hedging Activities
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, 2017 December 31, 2016 Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 428 $ 476 Total $ 428 $ 476 Not designated as hedges: Mortgage banking - loan commitment Other assets $ 61 $ 41 Mortgage banking - forward sales commitment Other assets 8 19 Total $ 69 $ 60 Mortgage banking - loan commitment Other liabilities $ 4 $ — Mortgage banking - forward sales commitment Other liabilities 1 $ — Total $ 5 $ — 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. The structure of the swap agreements is described in the table below (dollars in thousands): Underlyings Designation Notional Payment Provision Life of Swap Contract Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 0.958%/Receive 3 month LIBOR 4 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 15,000 Pay 1.054%/Receive 3 month LIBOR 2 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 20,500 Pay 1.354%/Receive 3 month LIBOR 2 yrs The swap contracts involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments without exchange of the underlying notional amounts. 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. The ineffectiveness of the cash flow hedge is recognized through earnings. There was no ineffectiveness during the three and six months ended June 30, 2017 or 2016. 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 AOCI on Derivative (Effective Portion) Gain(Loss) Reclassified from AOCI into Income (Effective Portion) For the three months ended June 30, For the six months ended June 30, June 30, 2017 December 31, 2016 Location 2017 2016 2017 2016 Interest rate swap $ 270 $ 476 Interest Expense $ 2 $ — $ 20 $ — The Company is 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, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10. INCOME TAXES The components of net deferred taxes as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 7,673 $ 8,560 Allowance for loan losses 3,503 3,245 Deferred compensation and post employment benefits 3,332 3,365 State net operating loss 480 557 Valuation reserve for other real estate 498 693 Non-accrual interest 354 375 Loan basis differences 200 238 Unrealized losses on securities 1,078 3,079 Deposit premium 93 155 Other 1,412 1,380 Gross deferred tax assets 18,623 21,647 Deferred tax liabilities: Fixed assets — 263 Loan servicing rights 1,005 962 Deferred loan costs 1,118 1,002 Prepaid expenses 74 57 Core deposit intangible 120 158 Other 455 220 Total deferred tax liabilities 2,772 2,662 Net deferred tax asset $ 15,851 $ 18,985 As of June 30, 2017 and December 31, 2016, $0.1 million and $0.2 million, respectively, 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 0.5 year. The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: As of June, 2017 (Dollars in thousands) Amount Expiration Dates Federal $ 21,922 2031-2034 North Carolina $ 24,509 2026-2027

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share amounts) 2017 2016 2017 2016 Numerator: Net income $ 2,102 $ 858 $ 3,402 $ 2,224 Denominator: Weighted-average common shares outstanding - basic 6,456,572 6,466,665 6,460,693 6,492,209 Effect of dilutive shares 92,428 15,414 79,831 14,276 Weighted-average common shares outstanding - diluted 6,549,000 6,482,079 6,540,524 6,506,485 Earnings per share - basic $ 0.33 $ 0.13 $ 0.53 $ 0.34 Earnings per share - diluted $ 0.32 $ 0.13 $ 0.52 $ 0.34 At June 30, 2017, the Company had 5,000 potentially dilutive shares of common stock that were excluded from diluted earnings per share because their effect would be anti-dilutive. These potentially dilutive shares of common stock are issuable upon exercise of stock options granted to employees with a weighted average exercise price of $21.05. At June 30, 2016, the Company had 411,500 potentially dilutive shares of common stock that were excluded from diluted earnings per share because their effect would be anti-dilutive. These potentially dilutive shares of common stock are issuable upon exercise of stock options granted to employees and directors with a weighted average exercise price of $18.42.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016. Three Months Ended June 30, 2017 Held to Maturity Deferred Tax Available Securities Valuation for Sale Transferred Allowance on Cash Flow Securities from AFS AFS Hedge Total (Dollars in thousands) Balance, beginning of period $ (4,928 ) $ — $ (148 ) $ 336 $ (4,740 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 55 — 55 Change in net unrealized holding losses on securities available for sale 4,510 — — — 4,510 Reclassification adjustment for net securities gains realized in net income (36 ) — — — (36 ) Change in unrealized holding gains on cash flow hedge (107 ) (107 ) Reclassification adjustment for cash flow hedge effectiveness 2 2 Income tax effect (1,654 ) — — 39 (1,615 ) Balance, end of period $ (2,108 ) $ — $ (93 ) $ 270 $ (1,931 ) Three Months Ended June 30, 2016 (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 available for sale — — 94 — 94 Change in net unrealized holding losses on securities available for sale 3,049 — — — 3,049 Reclassification adjustment for net securities gains realized in net income (429 ) — — — (429 ) 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 — 139 — — 139 Change in unrealized holding gains on cash flow hedge (45 ) (45 ) Income tax effect (984 ) (55 ) — 17 (1,022 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Six Months Ended June 30, 2017 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on AFS Cash Flow Hedge Total (Dollars in thousands) Balance, beginning of period $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 109 — 109 Change in net unrealized holding losses on securities available for sale 5,431 — — — 5,431 Reclassification adjustment for net securities gains realized in net income (43 ) — — — (43 ) Reclassification adjustment for other than temporary impairment of securities available for sale 79 — — — 79 Change in unrealized holding gains on cash flow hedge (68 ) (68 ) Reclassification adjustment for cash flow effectiveness 20 20 Income tax effect (2,021 ) — — 18 (2,003 ) Balance, end of period $ (2,108 ) $ — $ (93 ) $ 270 $ (1,931 ) Six Months Ended June 30, 2016 (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 available for sale — — 295 — 295 Change in net unrealized holding losses on securities available for sale 6,504 — — — 6,504 Reclassification adjustment for net securities gains realized in net income (698 ) — — — (698 ) 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 — 570 — — 570 Change in unrealized holding gains on cash flow hedge (45 ) (45 ) Income tax effect (2,182 ) (218 ) — 17 (2,383 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 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, (Dollars in thousands) 2017 2016 2017 2016 Income Statement Line Item Affected Available-for-sale securities Gains recognized $ 36 $ 429 $ 43 $ 698 Gain on sale of investments, net of loss Other than temporary impairment — — (79 ) — Other than temporary impairment of AFS securities Income tax effect (13 ) (159 ) 13 (258 ) Income tax expense Reclassified out of AOCI, net of tax 23 270 (23 ) 440 Net income Held-to-maturity securities Amortization of unrealized losses — (139 ) — (570 ) Interest income - taxable securities Income tax effect — 55 — 218 Income tax expense Reclassified out of AOCI, net of tax — (84 ) — (352 ) Net income Cash flow hedge Interest expense - effective portion (11 ) — (28 ) — Interest expense - FHLB advances Interest expense - effective portion 9 — 8 — Interest expense - Junior subordinated notes Income tax effect 1 — 7 — Income tax expense Reclassified out of AOCI, net of tax (1 ) — (13 ) — Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance (55 ) (94 ) (109 ) (295 ) Income tax expense Total reclassified out of AOCI, net of tax $ (34 ) $ 92 $ (144 ) $ (207 ) Net income

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
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, 2017 (Dollars in thousands) Lines of credit $ 109,127 Standby letters of credit 840 $ 109,967 As of June 30, 2017, the Company had outstanding commitments to originate loans as follows: June 30, 2017 Amount Range of Rates (Dollar in thousands) Fixed $ 17,449 3.70% to 5.75% Variable 10,402 3.99% to 6.75% $ 27,851 The allowance for unfunded commitments was $0.1 million at June 30, 2017 and December 31, 2016. 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, 2017 and December 31, 2016. 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, 2017
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. AFS securities, 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: Investment Securities We obtain fair values for debt securities from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. Also included in securities are corporate bonds which are valued using significant unobservable inputs and are classified as Level 2 or Level 3 based on market information available during the period. 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. Small Business Investment Company Holdings Small Business Investment Company Holdings (SBIC) are carried at the lower of cost or fair value. From time to time impairment of SBIC is evident as a result of underlying financial review and a valuation allowance for other-than-temporary impairment is established. SBIC carried at fair value is classified as Level 3. In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entity’s assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Following is a description of valuation methodologies used for the disclosure of the fair value of financial instruments not carried at fair value: Cash and Cash Equivalents The carrying amount of such instruments is deemed to be a reasonable estimate of fair value. Loans The fair value of variable rate performing loans is based on carrying values adjusted for credit risk. The fair value of fixed rate performing loans is estimated using discounted cash flow analyses, utilizing interest rates currently being offered for loans with similar terms, adjusted for credit risk. The fair value of nonperforming loans is based on their carrying values less any specific reserve. A prepayment assumption is used to estimate the portion of loans that will be repaid prior to their scheduled maturity. No adjustment has been made for the illiquidity in the market for loans as there is no active market for many of the Company’s loans on which to reasonably base this estimate. Bank Owned Life Insurance Fair values approximate net cash surrender values. Other Investments, at cost No ready market exists for this stock and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, the carrying amount is deemed to be a reasonable estimate of fair value. Deposits The fair values disclosed for demand deposits are equal to the amounts payable on demand at the reporting date. The fair value of certificates of deposit are estimated by discounting the amounts payable at the certificate rates using the rates currently offered for deposits of similar remaining maturities. Advances from the FHLB The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Notes The carrying amount approximates fair value because the debt is variable rate tied to LIBOR. 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, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,636 $ — $ — $ 5,636 Securities available for sale: U.S. government agencies — 1,004 — 1,004 Municipal securities — 151,526 — 151,526 Mortgage-backed securities — 249,951 — 249,951 U.S. Treasury securities 2,512 — — 2,512 Corporate bonds — 21,170 1,054 22,224 Mutual funds 614 — — 614 8,762 423,651 1,054 433,467 Loan servicing rights — — 2,718 2,718 Derivative assets — 428 — 428 Forward sales commitments — — 8 8 Interest rate lock commitments — — 61 61 Total assets $ 8,762 $ 424,079 $ 3,841 $ 436,682 Forward sales commitments $ — $ — $ 1 $ 1 Interest rate lock commitments — — 4 4 Total liabilities $ — $ — $ 5 $ 5 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,211 $ — $ — $ 5,211 Securities available for sale: U.S. government agencies — 12,107 — 12,107 Municipal securities — 146,771 — 146,771 Mortgage-backed securities — 217,937 — 217,937 U.S. Treasury securities 2,514 — — 2,514 Corporate bonds — 16,214 2,144 18,358 Mutual funds 604 — — 604 8,329 393,029 2,144 403,502 Loan servicing rights — — 2,603 2,603 Derivative assets — 476 — 476 Forward sales commitments — — 19 19 Interest rate lock commitments — — 41 41 Total assets $ 8,329 $ 393,505 $ 4,807 $ 406,641 There were no liabilities measured at fair value on a recurring basis as of December 31, 2016. The following table presents the changes in assets and liabilities 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, 2017 2016 2017 2016 (Dollars in thousands) (Dollars in thousands) Balance at beginning of period $ 3,740 $ 2,478 $ 4,807 $ 2,390 Corporate bonds Fair value adjustment (2 ) — (4 ) — Transfer to Level 2 — — (1,086 ) Loan servicing right activity, included in servicing income, net Capitalization from loans sold 141 131 292 259 Fair value adjustment (61 ) (138 ) (177 ) (212 ) Mortgage derivative gains(losses) included in other income 18 39 4 73 Balance at end of period $ 3,836 $ 2,510 $ 3,836 $ 2,510 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, 2017 or December 31, 2016. June 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,579 $ 2,579 Commercial real estate — — 4,938 4,938 Home equity loans and lines of credit — — 213 213 Other construction and land — — 586 586 Commercial — — 300 300 Real estate owned: One-to-four family residential — — — — Commercial real estate — — 864 864 Other construction and land — — 1,623 1,623 SBIC — — 2,771 2,771 Total assets $ — $ — $ 13,874 $ 13,874 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,205 $ 2,205 Commercial real estate — — 6,329 6,329 Home equity loans and lines of credit — — 213 213 Other construction and land — — 809 809 Real estate owned: One-to-four family residential — — 1,336 1,336 Commercial real estate — — 722 722 Other construction and land — — 2,168 2,168 Total assets $ — $ — $ 13,782 $ 13,782 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2017 or December 31, 2016. Impaired loans totaling $4.4 million at June 30, 2017 and $4.6 million at December 31, 2016, 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, 2017. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0% - 8% Loan servicing rights Discounted Cash Flows Prepayment speed 5% - 35% Discount rate 12% - 14% SBIC Indicative value provided by fund Current operations and financial condition 0% - 13% The approximate carrying and estimated fair value of financial instruments are summarized below: Carrying Fair Value Measurements at June 30, 2017 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 80,111 $ 80,111 $ 80,111 $ — $ — Trading securities 5,636 5,636 5,636 — — Securities available for sale 427,831 427,831 3,126 423,651 1,054 Loans held for sale 3,668 4,015 — 4,015 — Loans receivable, net 794,687 787,146 — — 787,146 Other investments, at cost 12,208 12,208 — 12,208 — Interest receivable 5,211 5,211 — 5,211 — Bank owned life insurance 31,742 31,742 — 31,742 — Loan servicing rights 2,718 2,718 — — 2,718 Forward sales commitments 8 8 — — 8 Interest rate lock commitments 61 61 — — 61 Derivative asset 428 428 — 428 — SBIC investments 2,771 2,771 — — 2,771 Liabilities: Demand deposits $ 658,864 $ 658,864 $ — $ 658,864 $ — Time deposits 355,134 360,148 — — 360,148 Federal Home Loan Bank advances 223,500 233,640 — 233,640 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 3,371 3,392 — 3,392 — Accrued interest payable 644 644 — 644 — Forward sales commitments 1 1 — — 1 Interest rate lock commitments 4 4 — — 4 Carrying Fair Value Measurements at December 31, 2016 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 43,294 $ 43,294 $ 43,294 $ — $ — Trading securities 5,211 5,211 5,211 — — Securities available for sale 398,291 398,291 3,118 393,029 2,144 Loans held for sale 4,584 5,093 — 5,093 — Loans receivable, net 744,361 741,612 — — 741,612 Other investments, at cost 15,261 15,261 — 15,261 — Interest receivable 5,012 5,012 — 5,012 — Bank owned life insurance 31,347 31,347 — 31,347 — Loan servicing rights 2,603 2,603 — — 2,603 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 41 41 — — 41 Derivative asset 476 476 — 476 — SBIC investments 1,666 1,666 — — 1,666 Liabilities: Demand deposits $ 540,808 540,808 $ — $ 540,808 $ — Time deposits 289,205 286,611 — — 286,611 Federal Home Loan Bank advances 298,500 298,667 — 298,667 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,725 2,907 — 2,907 — Accrued interest payable 254 254 — 254 —

SHARE REPURCHASES

SHARE REPURCHASES	6 Months Ended
	Jun. 30, 2017
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. On February 24, 2017, the Company announced the extension of the stock repurchase program through February 23, 2018. The following table summarizes repurchase activity for the six months ended June 30, 2017. 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, 2017 to January 31, 2017 — $ — — 222,750 February 1, 2017 to February 28, 2017 — $ — — 222,750 March 1, 2017 to March 31, 2017 13,000 $ 23.12 13,000 209,750 April 1, 2017 to June 30, 2017 — $ — — 209,750 Total year-to-date 2017 13,000 $ — 13,000 209,750

ORGANIZATION AND BASIS OF PRE23

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2017
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 commercial bank and has a wholly owned subsidiary, Entegra Services, Inc., which was inactive as of June 30, 2017. 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, 2017. 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.
Recently Issued Accounting Standards	Recent Accounting Standards Updates In March 2017, the Financial Accounting Standards Board (FASB) issued amendments to Accounting Standards Update (“ASU”) 2017-08 Receivables –Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. In March 2017, the FASB issued amendments to ASU 2017-07 Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension cost and Net Periodic Postretirement Benefit Cost. In January 2017, the FASB issued amendments to ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued amendments to ASU 2017-01 Business Combinations (Topic 80): Clarifying the Definition of a Business. 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.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2017
As Recorded by Stearns [Member]
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values	(Dollars in thousands) As Recorded by Stearns Fair Value Adjustments As Recorded by the Company Assets Cash and cash equivalents $ 1,258 $ — $ 1,258 Loans 7 — 7 Premises and equipment 950 132 1,082 Core deposit intangible — 1,650 1,650 Total assets acquired 2,215 1,782 3,997 Liabilities Deposits: Noninterest-bearing demand $ 16,032 $ — 16,032 Interest-bearing demand 40,525 — 40,525 Money market 15,368 — 15,368 Savings 7,717 — 7,717 Time deposits 73,480 1,062 74,542 Total deposits 153,122 1,062 154,184 Other liabilities 321 — 321 Total liabilities assumed 153,443 1,062 154,505 Excess of liabilities assumed over assets acquired $ 151,228 $ 720 $ 150,508 Cash received to settle the acquisition $ 145,492 Goodwill $ 5,016

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Investment Securities Tables
Schedule of holdings of our trading account	The following table presents the holdings of our trading account as of June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 (Dollars in thousands) Mutual funds $ 5,636 $ 5,211
Schedule of investment securities available for sale	The amortized cost and estimated fair values of AFS securities as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 1,000 $ 4 $ — $ 1,004 Municipal securities 153,811 662 (2,947 ) 151,526 Mortgage-backed securities U.S. government agencies 156,605 379 (1,318 ) 155,666 SBA securities 39,677 61 (119 ) 39,619 Agency collateralized mortgage obligations 13,965 48 (134 ) 13,879 Non-agency collateralized mortgage obligations 41,083 34 (330 ) 40,787 U.S. Treasury securities 2,501 14 (3 ) 2,512 Corporate bonds 21,910 367 (53 ) 22,224 Mutual funds 622 — (8 ) 614 $ 431,174 $ 1,569 $ (4,912 ) $ 427,831 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,076 $ 31 $ — $ 12,107 Municipal securities 152,208 337 (5,774 ) 146,771 Mortgage-backed securities U.S. government agencies 128,820 107 (2,161 ) 126,766 SBA securities 30,002 13 (303 ) 29,712 Agency collateralized mortgage obligations 17,049 14 (173 ) 16,890 Non-agency collateralized mortgage obligations 45,475 2 (908 ) 44,569 U.S. Treasury securities 2,501 15 (2 ) 2,514 Corporate bonds 18,354 171 (167 ) 18,358 Mutual funds 616 — (12 ) 604 $ 407,101 $ 690 $ (9,500 ) $ 398,291
Unrealized Losses Related to Available-for-Sale Previously Recognized in Other Comprehensive Income	Information pertaining to securities with gross unrealized losses at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2017 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 101,034 $ 2,760 $ 3,575 $ 187 $ 104,609 $ 2,947 Mortgage-backed securities U.S. government agencies 87,949 1,031 12,717 287 100,666 1,318 SBA 13,081 38 12,230 81 25,311 119 Agency collateralized mortgage obligations 5,817 91 1,755 43 7,572 134 Non-agency collateralized mortgage obligations 34,114 308 4,214 22 38,328 330 U.S. Treasury securities 998 3 — — 998 3 Corporate debt securities 1,537 53 — — 1,537 53 Mutual funds 614 8 — — 614 8 $ 245,144 $ 4,292 $ 34,491 $ 620 $ 279,635 $ 4,912 December 31, 2016 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 122,468 $ 5,759 $ 331 $ 15 $ 122,799 $ 5,774 Mortgage-backed securities U.S. government agencies 101,382 2,068 5,102 93 106,484 2,161 SBA 15,199 145 11,434 158 26,633 303 Agency collateralized mortgage obligations 13,135 127 1,058 46 14,193 173 Non-agency collateralized mortgage obligations 40,378 908 — — 40,378 908 U.S. Treasury securities 1,000 2 — — 1,000 2 Corporate debt securities 6,741 167 — — 6,741 167 Mutual funds 616 12 — — 616 12 $ 300,919 $ 9,188 $ 17,925 $ 312 $ 318,844 $ 9,500
Securities Gross Unrealized Losses Position	June 30, 2017 Less Than 12 Months More Than 12 Months Total Municipal securities 92 3 95 Mortgage-backed securities U.S. government agencies 61 8 69 SBA 9 9 18 Agency collateralized mortgage obligations 4 2 6 Non-agency collateralized mortgage obligations 16 3 19 U.S. Treasury securities 1 — 1 Corporate debt securities 2 — 2 Mutual funds 1 — 1 186 25 211 December 31, 2016 Less Than 12 Months More Than 12 Months Total Municipal securities 129 1 130 Mortgage-backed securities U.S. government agencies 66 5 71 SBA 11 8 19 Agency collateralized mortgage obligations 7 1 8 Non-agency collateralized mortgage obligations 18 — 18 U.S. Treasury securities 1 — 1 Corporate debt securities 8 — 8 240 15 255
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses	For the three and six months ended June 30, 2017 and 2016 the Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands) (Dollars in thousands) Gross proceeds $ 19,518 $ 41,204 $ 36,842 $ 75,709 Gross realized gains 116 445 123 732 Gross realized losses 80 16 80 34
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity	Available-for-Sale Amortized Cost Fair Value (Dollars in thousands) Less than 1 year $ 1,780 $ 1,768 Over 1 year through 5 years 11,222 11,280 After 5 years through 10 years 27,464 27,769 Over 10 years 139,378 137,063 179,844 177,880 Mortgage-backed securities 251,330 249,951 Total $ 431,174 $ 427,831

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2017
Loans Receivable Tables
Loan Receivable	Loans receivable as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30 December 31, 2017 2016 (Dollars in thousands) Real estate mortgage loans: One-to-four family residential $ 284,639 $ 278,437 Commercial real estate 318,267 292,879 Home equity loans and lines of credit 48,275 50,334 Residential construction 22,510 18,531 Other construction and land 74,907 60,605 Total real estate loans 748,598 700,786 Commercial and industrial 43,605 41,306 Consumer 5,196 4,594 Total commercial and consumer 48,801 45,900 Loans receivable, gross 797,399 746,686 Less: Net deferred loan fees (1,572 ) (923 ) Fair value discount (704 ) (857 ) Unamortized premium 520 605 Unamortized discount (956 ) (1,150 ) Loans receivable, net of deferred fees $ 794,687 $ 744,361
Activity Related to Discount on Purchased Loans	The following tables present the activity related to the discount on individually purchased loans for the three and six month periods ended June 30, 2017 and 2016: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Discount on purchased loans, beginning of period $ 1,083 $ 1,361 $ 1,150 $ 1,366 Accretion (127 ) (128 ) (194 ) (133 ) Discount on purchased loans, end of period $ 956 $ 1,233 $ 956 $ 1,233 The following table presents the activity related to the fair value discount on loans from business combinations for the three and six month periods ended June 30, 2017 and 2016: For the Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Fair value discount, beginning of period $ 786 $ 67 $ 857 $ 72 Additional discount for acquisitions — 960 — 960 Accretion (82 ) (187 ) (153 ) (192 ) Fair value discount, end of period $ 704 $ 840 $ 704 $ 840

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Provision 247 50 (97 ) 32 (30 ) 89 34 325 Charge-offs (46 ) — (1 ) — 53 — (9 ) (3 ) Recoveries 64 (34 ) 5 — 12 7 60 114 Ending balance $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Three Months Ended June 30, 2016 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,725 $ 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 Six Months Ended June 30, 2017 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Provision 555 162 (109 ) 63 167 (29 ) (169 ) 640 Charge-offs (50 ) (88 ) (1 ) — (175 ) — (24 ) (338 ) Recoveries 69 43 5 — 67 15 128 327 Ending balance $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Six Months Ended June 30, 2016 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 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
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 net investment in loans: June 30, 2017 One-to-four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 182 $ 82 $ 2 $ — $ 55 $ 27 $ — $ 348 Collectively evaluated for impairment 3,204 4,014 570 248 852 558 140 9,586 $ 3,386 $ 4,096 $ 572 $ 248 $ 907 $ 585 $ 140 $ 9,934 Loans Receivable Individually evaluated for impairment $ 4,158 $ 6,652 $ 313 $ — $ 1,321 $ 300 $ — $ 12,744 Collectively evaluated for impairment 278,930 310,156 48,060 22,449 73,297 43,781 5,270 781,943 $ 283,088 $ 316,808 $ 48,373 $ 22,449 $ 74,618 $ 44,081 $ 5,270 $ 794,687 December 31, 2016 One-to-four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 201 $ 178 $ 2 $ — $ 175 $ 28 $ — $ 584 Collectively evaluated for impairment 2,611 3,801 675 185 673 571 205 8,721 $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Loans Receivable Individually evaluated for impairment $ 3,769 $ 7,601 $ 313 $ — $ 1,682 $ 306 $ — $ 13,671 Collectively evaluated for impairment 273,169 284,502 50,087 18,439 58,444 41,397 4,652 730,690 $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361
Credit Risk Profile by Rating	The following tables present the recorded investment in gross loans by loan grade: June 30, 2017 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,999 $ — $ — $ — $ 1,022 $ — $ 11,021 2 1,184 4,205 — — — 1,176 — 6,565 3 27,994 34,062 2,118 501 4,433 5,045 — 74,153 4 84,747 159,813 3,411 11,343 35,803 22,759 306 318,182 5 22,858 86,260 2,172 4,440 17,151 12,586 21 145,488 6 2,332 10,917 — — 2,118 267 — 15,634 7 2,640 6,735 — — 466 441 — 10,282 $ 141,755 $ 311,991 $ 7,701 $ 16,284 $ 59,971 $ 43,296 $ 327 $ 581,325 Ungraded Loan Exposure: Performing $ 140,370 $ 4,817 $ 40,363 $ 5,953 $ 14,353 $ 785 $ 4,943 $ 211,584 Nonperforming 963 — 309 212 294 — — 1,778 Subtotal $ 141,333 $ 4,817 $ 40,672 $ 6,165 $ 14,647 $ 785 $ 4,943 $ 213,362 Total $ 283,088 $ 316,808 $ 48,373 $ 22,449 $ 74,618 $ 44,081 $ 5,270 $ 794,687 December 31, 2016 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,203 $ — $ — $ — $ 431 $ — $ 10,634 2 — 4,287 — — — 1,465 — 5,752 3 27,975 24,626 1,814 586 2,164 2,803 — 59,968 4 75,246 130,857 3,363 10,646 22,293 21,942 51 264,398 5 26,306 95,408 3,476 2,347 17,930 11,344 324 157,135 6 2,587 11,501 — 284 2,470 270 — 17,112 7 1,713 6,686 — — 869 421 — 9,689 $ 133,827 $ 283,568 $ 8,653 $ 13,863 $ 45,726 $ 38,676 $ 375 $ 524,688 Ungraded Loan Exposure: Performing $ 142,222 $ 8,535 $ 41,497 $ 4,576 $ 14,149 $ 3,027 $ 4,230 $ 218,236 Nonperforming 889 — 250 — 251 — 47 1,437 Subtotal $ 143,111 $ 8,535 $ 41,747 $ 4,576 $ 14,400 $ 3,027 $ 4,277 $ 219,673 Total $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361
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, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 3,759 $ 426 $ 878 $ 5,063 $ 278,025 $ 283,088 Commercial real estate 831 — 2,053 2,884 313,924 316,808 Home equity and lines of credit 37 29 280 346 48,027 48,373 Residential construction — 212 — 212 22,237 22,449 Other construction and land 196 — 303 499 74,119 74,618 Commercial 535 — 34 569 43,512 44,081 Consumer 26 — — 26 5,244 5,270 Total $ 5,384 $ 667 $ 3,548 $ 9,599 $ 785,088 $ 794,687 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 4,917 $ 1,108 $ 427 $ 6,452 $ 270,486 $ 276,938 Commercial real estate 1,382 1,800 1,638 4,820 287,283 292,103 Home equity and lines of credit 126 44 231 401 49,999 50,400 Residential construction 180 — — 180 18,259 18,439 Other construction and land 468 — 794 1,262 58,864 60,126 Commercial 368 — — 368 41,335 41,703 Consumer 62 1 — 63 4,589 4,652 Total $ 7,503 $ 2,953 $ 3,090 $ 13,546 $ 730,815 $ 744,361
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, 2017 and December 31, 2016. June 30, 2017 December 31, 2016 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,035 $ 3,145 $ — $ 2,625 $ 2,723 $ — Commercial real estate 4,971 7,095 — 5,526 7,710 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 586 686 — 771 911 — Commercial — — — — — — $ 8,805 $ 11,254 $ — $ 9,135 $ 11,672 $ — Loans with a valuation allowance One-to four-family residential $ 1,123 $ 1,123 $ 182 $ 1,144 $ 1,144 $ 201 Commercial real estate 1,681 1,681 82 2,075 2,075 178 Home equity and lines of credit 100 100 2 100 100 2 Residential construction — — — — — — Other construction and land 735 735 55 911 911 175 Commercial 300 300 27 306 306 28 $ 3,939 $ 3,939 $ 348 $ 4,536 $ 4,536 $ 584 Total One-to four-family residential $ 4,158 $ 4,268 $ 182 $ 3,769 $ 3,867 $ 201 Commercial real estate 6,652 8,776 82 7,601 9,785 178 Home equity and lines of credit 313 428 2 313 428 2 Residential construction — — — — — — Other construction and land 1,321 1,421 55 1,682 1,822 175 Commercial 300 300 27 306 306 28 $ 12,744 $ 15,193 $ 348 $ 13,671 $ 16,208 $ 584 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, 2017 2016 2017 2016 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,145 $ 37 $ 2,681 $ 19 $ 3,167 $ 69 $ 2,690 $ 55 Commercial real estate 7,095 32 8,416 13 7,177 63 8,419 59 Home equity and lines of credit 328 13 679 3 328 24 679 5 Other construction and land 686 5 908 8 689 10 912 16 $ 11,254 $ 87 $ 12,684 $ 43 $ 11,361 $ 166 $ 12,700 $ 135 Loans with a valuation allowance One-to four-family residential $ 1,125 $ 12 $ 2,036 $ — $ 1,134 $ 25 $ 2,043 $ 24 Commercial real estate 1,684 22 1,768 14 1,695 43 1,775 41 Home equity and lines of credit 100 1 100 1 100 2 100 2 Other construction and land 735 10 985 8 764 19 989 18 Commercial 300 6 312 4 304 11 315 9 $ 3,944 $ 51 $ 5,201 $ 27 $ 3,997 $ 100 $ 5,222 $ 94 Total One-to four-family residential $ 4,270 $ 49 $ 4,717 $ 19 $ 4,301 $ 94 $ 4,733 $ 79 Commercial real estate 8,779 54 10,184 27 8,872 106 10,194 100 Home equity and lines of credit 428 14 779 4 428 26 779 7 Other construction and land 1,421 15 1,893 16 1,453 29 1,901 34 Commercial 300 6 312 4 304 11 315 9 $ 15,198 $ 138 $ 17,885 $ 70 $ 15,358 $ 266 $ 17,922 $ 229
Financing Receivables on Nonaccrual Status	June 30, 2017 December 31, 2016 (Dollars in thousands) One-to four-family residential $ 1,554 $ 1,125 Commercial real estate 3,771 3,536 Home equity loans and lines of credit 309 250 Residential construction 211 — Other construction and land 708 1,042 Commercial 34 41 Consumer — 47 Non-performing loans $ 6,587 $ 6,041
Summary of TDR Loans	The following tables summarize TDR loans as of the dates indicated: June 30, 2017 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,506 $ 210 $ 3,716 Commercial real estate 4,557 2,284 6,841 Home equity and lines of credit 312 — 312 Other construction and land 1,122 219 1,341 Commercial 300 — 300 $ 9,797 $ 2,713 $ 12,510 December 31, 2016 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,560 $ 210 $ 3,770 Commercial real estate 4,327 2,366 6,693 Home equity and lines of credit 313 — 313 Other construction and land 1,377 206 1,583 Commercial 305 — 305 $ 9,882 $ 2,782 $ 12,664

GOODWILL AND OTHER INTANGIBLE28

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in the carrying amounts of goodwill	As of and for the Six Months Ending As of and for the Year Ending June 30, December 31, 2017 2016 Dollars in thousands Balance at beginning of period $ 2,065 $ 711 Additions: Prior acquisitions measurement period adjustments 63 — Goodwill from current year acquisitions 5,016 1,354 Balance at end of period $ 7,144 $ 2,065
Schedule of gross carrying amounts and accumulated amortization of core deposit intangibles	The Company’s other intangible assets consist of core deposit intangibles related to acquired core deposits. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: As of and for the Six Months Ending As of and for the Year Ending June 30, December 31, 2017 2016 Dollars in thousands Gross balance at beginning of period $ 1,120 $ 590 Additions from acquisitions 1,650 530 Gross balance at end of period 2,770 1,120 Less accumulated amortization (300 ) (141 ) Core deposit intangible, net $ 2,470 $ 979

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016 and the year ended December 31, 2016. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2017 2016 2016 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 163,784 $ — $ 127,010 $ — $ 139,136 $ — Interest-bearing demand 176,788 93 116,648 94 122,271 160 Money Market 261,127 455 236,750 324 239,387 770 Savings 48,687 25 38,057 26 40,014 49 Time Deposits 363,612 1,540 310,409 1,530 289,205 2,985 $ 1,013,998 $ 2,113 $ 828,874 $ 1,974 $ 830,013 $ 3,964

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2017
Borrowings Tables
Scheduled maturities of FHLB advances and respective weighted average rates	The scheduled maturities and respective weighted average rates of outstanding FHLB advances are as follows for the dates indicated: June 30, 2017 December 31, 2016 Year of Maturity Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in thousands) 2017 $ 175,500 1.01 % $ 273,500 0.64 % 2018 45,000 1.24 % 25,000 1.17 % 2019 3,000 1.56 % — — $ 223,500 1.06 % $ 298,500 0.68 %

DERIVATIVE FINANCIAL INSTRUME31

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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, 2017 December 31, 2016 Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 428 $ 476 Total $ 428 $ 476 Not designated as hedges: Mortgage banking - loan commitment Other assets $ 61 $ 41 Mortgage banking - forward sales commitment Other assets 8 19 Total $ 69 $ 60 Mortgage banking - loan commitment Other liabilities $ 4 $ — Mortgage banking - forward sales commitment Other liabilities 1 $ — Total $ 5 $ —
Schedule of Structure of the Swap Agreements	The structure of the swap agreements is described in the table below (dollars in thousands): Underlyings Designation Notional Payment Provision Life of Swap Contract Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 0.958%/Receive 3 month LIBOR 4 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 15,000 Pay 1.054%/Receive 3 month LIBOR 2 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 20,500 Pay 1.354%/Receive 3 month LIBOR 2 yrs
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 AOCI on Derivative (Effective Portion) Gain(Loss) Reclassified from AOCI into Income (Effective Portion) For the three months ended June 30, For the six months ended June 30, June 30, 2017 December 31, 2016 Location 2017 2016 2017 2016 Interest rate swap $ 270 $ 476 Interest Expense $ 2 $ — $ 20 $ —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2017
Income Taxes Tables
Schedule of Deferred Tax Assets and Liabilities	The components of net deferred taxes as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 7,673 $ 8,560 Allowance for loan losses 3,503 3,245 Deferred compensation and post employment benefits 3,332 3,365 State net operating loss 480 557 Valuation reserve for other real estate 498 693 Non-accrual interest 354 375 Loan basis differences 200 238 Unrealized losses on securities 1,078 3,079 Deposit premium 93 155 Other 1,412 1,380 Gross deferred tax assets 18,623 21,647 Deferred tax liabilities: Fixed assets — 263 Loan servicing rights 1,005 962 Deferred loan costs 1,118 1,002 Prepaid expenses 74 57 Core deposit intangible 120 158 Other 455 220 Total deferred tax liabilities 2,772 2,662 Net deferred tax asset $ 15,851 $ 18,985
Schedule of Unused net operating losses and expiration dates	The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: As of June, 2017 (Dollars in thousands) Amount Expiration Dates Federal $ 21,922 2031-2034 North Carolina $ 24,509 2026-2027

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share amounts) 2017 2016 2017 2016 Numerator: Net income $ 2,102 $ 858 $ 3,402 $ 2,224 Denominator: Weighted-average common shares outstanding - basic 6,456,572 6,466,665 6,460,693 6,492,209 Effect of dilutive shares 92,428 15,414 79,831 14,276 Weighted-average common shares outstanding - diluted 6,549,000 6,482,079 6,540,524 6,506,485 Earnings per share - basic $ 0.33 $ 0.13 $ 0.53 $ 0.34 Earnings per share - diluted $ 0.32 $ 0.13 $ 0.52 $ 0.34

ACCUMULATED OTHER COMPREHENSI34

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016. Three Months Ended June 30, 2017 Held to Maturity Deferred Tax Available Securities Valuation for Sale Transferred Allowance on Cash Flow Securities from AFS AFS Hedge Total (Dollars in thousands) Balance, beginning of period $ (4,928 ) $ — $ (148 ) $ 336 $ (4,740 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 55 — 55 Change in net unrealized holding losses on securities available for sale 4,510 — — — 4,510 Reclassification adjustment for net securities gains realized in net income (36 ) — — — (36 ) Change in unrealized holding gains on cash flow hedge (107 ) (107 ) Reclassification adjustment for cash flow hedge effectiveness 2 2 Income tax effect (1,654 ) — — 39 (1,615 ) Balance, end of period $ (2,108 ) $ — $ (93 ) $ 270 $ (1,931 ) Three Months Ended June 30, 2016 (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 available for sale — — 94 — 94 Change in net unrealized holding losses on securities available for sale 3,049 — — — 3,049 Reclassification adjustment for net securities gains realized in net income (429 ) — — — (429 ) 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 — 139 — — 139 Change in unrealized holding gains on cash flow hedge (45 ) (45 ) Income tax effect (984 ) (55 ) — 17 (1,022 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Six Months Ended June 30, 2017 Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on AFS Cash Flow Hedge Total (Dollars in thousands) Balance, beginning of period $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 109 — 109 Change in net unrealized holding losses on securities available for sale 5,431 — — — 5,431 Reclassification adjustment for net securities gains realized in net income (43 ) — — — (43 ) Reclassification adjustment for other than temporary impairment of securities available for sale 79 — — — 79 Change in unrealized holding gains on cash flow hedge (68 ) (68 ) Reclassification adjustment for cash flow effectiveness 20 20 Income tax effect (2,021 ) — — 18 (2,003 ) Balance, end of period $ (2,108 ) $ — $ (93 ) $ 270 $ (1,931 ) Six Months Ended June 30, 2016 (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 available for sale — — 295 — 295 Change in net unrealized holding losses on securities available for sale 6,504 — — — 6,504 Reclassification adjustment for net securities gains realized in net income (698 ) — — — (698 ) 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 — 570 — — 570 Change in unrealized holding gains on cash flow hedge (45 ) (45 ) Income tax effect (2,182 ) (218 ) — 17 (2,383 ) Balance, end of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507
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, (Dollars in thousands) 2017 2016 2017 2016 Income Statement Line Item Affected Available-for-sale securities Gains recognized $ 36 $ 429 $ 43 $ 698 Gain on sale of investments, net of loss Other than temporary impairment — — (79 ) — Other than temporary impairment of AFS securities Income tax effect (13 ) (159 ) 13 (258 ) Income tax expense Reclassified out of AOCI, net of tax 23 270 (23 ) 440 Net income Held-to-maturity securities Amortization of unrealized losses — (139 ) — (570 ) Interest income - taxable securities Income tax effect — 55 — 218 Income tax expense Reclassified out of AOCI, net of tax — (84 ) — (352 ) Net income Cash flow hedge Interest expense - effective portion (11 ) — (28 ) — Interest expense - FHLB advances Interest expense - effective portion 9 — 8 — Interest expense - Junior subordinated notes Income tax effect 1 — 7 — Income tax expense Reclassified out of AOCI, net of tax (1 ) — (13 ) — Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance (55 ) (94 ) (109 ) (295 ) Income tax expense Total reclassified out of AOCI, net of tax $ (34 ) $ 92 $ (144 ) $ (207 ) Net income

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 (Dollars in thousands) Lines of credit $ 109,127 Standby letters of credit 840 $ 109,967
Schedule of Outstanding commitments to originate mortgage loans	As of June 30, 2017, the Company had outstanding commitments to originate loans as follows: June 30, 2017 Amount Range of Rates (Dollar in thousands) Fixed $ 17,449 3.70% to 5.75% Variable 10,402 3.99% to 6.75% $ 27,851

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,636 $ — $ — $ 5,636 Securities available for sale: U.S. government agencies — 1,004 — 1,004 Municipal securities — 151,526 — 151,526 Mortgage-backed securities — 249,951 — 249,951 U.S. Treasury securities 2,512 — — 2,512 Corporate bonds — 21,170 1,054 22,224 Mutual funds 614 — — 614 8,762 423,651 1,054 433,467 Loan servicing rights — — 2,718 2,718 Derivative assets — 428 — 428 Forward sales commitments — — 8 8 Interest rate lock commitments — — 61 61 Total assets $ 8,762 $ 424,079 $ 3,841 $ 436,682 Forward sales commitments $ — $ — $ 1 $ 1 Interest rate lock commitments — — 4 4 Total liabilities $ — $ — $ 5 $ 5 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,211 $ — $ — $ 5,211 Securities available for sale: U.S. government agencies — 12,107 — 12,107 Municipal securities — 146,771 — 146,771 Mortgage-backed securities — 217,937 — 217,937 U.S. Treasury securities 2,514 — — 2,514 Corporate bonds — 16,214 2,144 18,358 Mutual funds 604 — — 604 8,329 393,029 2,144 403,502 Loan servicing rights — — 2,603 2,603 Derivative assets — 476 — 476 Forward sales commitments — — 19 19 Interest rate lock commitments — — 41 41 Total assets $ 8,329 $ 393,505 $ 4,807 $ 406,641
Schedule of changes in assets measured at fair value on a recurring basis	The following table presents the changes in assets and liabilities 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, 2017 2016 2017 2016 (Dollars in thousands) (Dollars in thousands) Balance at beginning of period $ 3,740 $ 2,478 $ 4,807 $ 2,390 Corporate bonds Fair value adjustment (2 ) — (4 ) — Transfer to Level 2 — — (1,086 ) Loan servicing right activity, included in servicing income, net Capitalization from loans sold 141 131 292 259 Fair value adjustment (61 ) (138 ) (177 ) (212 ) Mortgage derivative gains(losses) included in other income 18 39 4 73 Balance at end of period $ 3,836 $ 2,510 $ 3,836 $ 2,510
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, 2017 or December 31, 2016. June 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,579 $ 2,579 Commercial real estate — — 4,938 4,938 Home equity loans and lines of credit — — 213 213 Other construction and land — — 586 586 Commercial — — 300 300 Real estate owned: One-to-four family residential — — — — Commercial real estate — — 864 864 Other construction and land — — 1,623 1,623 SBIC — — 2,771 2,771 Total assets $ — $ — $ 13,874 $ 13,874 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,205 $ 2,205 Commercial real estate — — 6,329 6,329 Home equity loans and lines of credit — — 213 213 Other construction and land — — 809 809 Real estate owned: One-to-four family residential — — 1,336 1,336 Commercial real estate — — 722 722 Other construction and land — — 2,168 2,168 Total assets $ — $ — $ 13,782 $ 13,782
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, 2017. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0% - 8% Loan servicing rights Discounted Cash Flows Prepayment speed 5% - 35% Discount rate 12% - 14% SBIC Indicative value provided by fund Current operations and financial condition 0% - 13%
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: Carrying Fair Value Measurements at June 30, 2017 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 80,111 $ 80,111 $ 80,111 $ — $ — Trading securities 5,636 5,636 5,636 — — Securities available for sale 427,831 427,831 3,126 423,651 1,054 Loans held for sale 3,668 4,015 — 4,015 — Loans receivable, net 794,687 787,146 — — 787,146 Other investments, at cost 12,208 12,208 — 12,208 — Interest receivable 5,211 5,211 — 5,211 — Bank owned life insurance 31,742 31,742 — 31,742 — Loan servicing rights 2,718 2,718 — — 2,718 Forward sales commitments 8 8 — — 8 Interest rate lock commitments 61 61 — — 61 Derivative asset 428 428 — 428 — SBIC investments 2,771 2,771 — — 2,771 Liabilities: Demand deposits $ 658,864 $ 658,864 $ — $ 658,864 $ — Time deposits 355,134 360,148 — — 360,148 Federal Home Loan Bank advances 223,500 233,640 — 233,640 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 3,371 3,392 — 3,392 — Accrued interest payable 644 644 — 644 — Forward sales commitments 1 1 — — 1 Interest rate lock commitments 4 4 — — 4 Carrying Fair Value Measurements at December 31, 2016 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 43,294 $ 43,294 $ 43,294 $ — $ — Trading securities 5,211 5,211 5,211 — — Securities available for sale 398,291 398,291 3,118 393,029 2,144 Loans held for sale 4,584 5,093 — 5,093 — Loans receivable, net 744,361 741,612 — — 741,612 Other investments, at cost 15,261 15,261 — 15,261 — Interest receivable 5,012 5,012 — 5,012 — Bank owned life insurance 31,347 31,347 — 31,347 — Loan servicing rights 2,603 2,603 — — 2,603 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 41 41 — — 41 Derivative asset 476 476 — 476 — SBIC investments 1,666 1,666 — — 1,666 Liabilities: Demand deposits $ 540,808 540,808 $ — $ 540,808 $ — Time deposits 289,205 286,611 — — 286,611 Federal Home Loan Bank advances 298,500 298,667 — 298,667 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,725 2,907 — 2,907 — Accrued interest payable 254 254 — 254 —

SHARE REPURCHASES (Tables)

SHARE REPURCHASES (Tables)	6 Months Ended
	Jun. 30, 2017
Banking and Thrift [Abstract]
Schedule of Share Repurchase Activity	The following table summarizes repurchase activity for the six months ended June 30, 2017. 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, 2017 to January 31, 2017 — $ — — 222,750 February 1, 2017 to February 28, 2017 — $ — — 222,750 March 1, 2017 to March 31, 2017 13,000 $ 23.12 13,000 209,750 April 1, 2017 to June 30, 2017 — $ — — 209,750 Total year-to-date 2017 13,000 $ — 13,000 209,750

ORGANIZATION AND BASIS OF PRE38

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative)	Jun. 30, 2017
Organization And Basis Of Presentation Details Narrative
Ownership percentage in Macon Capital Trust I	100.00%

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Feb. 24, 2017	Dec. 31, 2016	Dec. 31, 2015
Deposits:
Goodwill	$ 7,144		$ 2,065	$ 711
As Recorded by Stearns [Member]
Assets
Cash and cash equivalents		$ 1,258
Loans		7
Premises and equipment		950
Core deposit intangible
Total assets acquired		2,215
Deposits:
Noninterest-bearing demand		16,032
Interest-bearing demand		40,525
Money market		15,368
Savings		7,717
Time deposits		73,480
Total deposits		153,122
Other liabilities		321
Total liabilities assumed		153,443
Excess of assets acquired over liabilities assumed		151,228
Fair Value Adjustments [Member]
Assets
Cash and cash equivalents
Loans
Premises and equipment		132
Core deposit intangible		1,650
Total assets acquired		1,782
Deposits:
Noninterest-bearing demand
Interest-bearing demand
Money market
Savings
Time deposits		1,062
Total deposits		1,062
Other liabilities
Total liabilities assumed		1,062
Excess of assets acquired over liabilities assumed		720
As recorded by the Company [Member]
Assets
Cash and cash equivalents		1,258
Loans		7
Premises and equipment		1,082
Core deposit intangible		1,650
Total assets acquired		3,997
Deposits:
Noninterest-bearing demand		16,032
Interest-bearing demand		40,525
Money market		15,368
Savings		7,717
Time deposits		74,542
Total deposits		154,184
Other liabilities		321
Total liabilities assumed		154,505
Excess of assets acquired over liabilities assumed		150,508
Cash received to settle the acquisition		145,492
Goodwill		$ 5,016

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Trading Securities Cash	$ 5,636	$ 5,211
Amortized Cost	431,174	407,101
Gross Unrealized Gains	1,569	690
Gross Unrealized Losses	(4,912)	(9,500)
Estimated fair value	427,831	398,291
U.S. Government Agencies [Member]
Amortized Cost	1,000	12,076
Gross Unrealized Gains	4	31
Gross Unrealized Losses
Estimated fair value	1,004	12,107
Municipal Securities [Member]
Amortized Cost	153,811	152,208
Gross Unrealized Gains	662	337
Gross Unrealized Losses	(2,947)	(5,774)
Estimated fair value	151,526	146,771
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized Cost	156,605	128,820
Gross Unrealized Gains	379	107
Gross Unrealized Losses	(1,318)	(2,161)
Estimated fair value	155,666	126,766
Mortgage-backed Securities, SBA securities [Member]
Amortized Cost	39,677	30,002
Gross Unrealized Gains	61	13
Gross Unrealized Losses	(119)	(303)
Estimated fair value	39,619	29,712
Mortgage-backed Securities, Collateralized mortgage obligations [Member]
Amortized Cost	13,965	17,049
Gross Unrealized Gains	48	14
Gross Unrealized Losses	(134)	(173)
Estimated fair value	13,879	16,890
Mortgage-backed Securities, Non-agency collateralized mortgage obligations
Amortized Cost	41,083	45,475
Gross Unrealized Gains	34	2
Gross Unrealized Losses	(330)	(908)
Estimated fair value	40,787	44,569
U.S. Treasury securities [Member]
Amortized Cost	2,501	2,501
Gross Unrealized Gains	14	15
Gross Unrealized Losses	(3)	(2)
Estimated fair value	2,512	2,514
Corporate debt securities [Member]
Amortized Cost	21,910	616
Gross Unrealized Gains	367
Gross Unrealized Losses	(53)	(12)
Estimated fair value	22,224	604
Mutual Funds [Member]
Amortized Cost	622	18,354
Gross Unrealized Gains		171
Gross Unrealized Losses	(8)	(167)
Estimated fair value	$ 614	$ 18,358

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available for sale, Less Than 12 Months Fair Value	$ 245,144	$ 300,919
Available for sale, Less Than 12 Months Unrealized Losses	4,292	9,188
Available for sale, Over 12 Months Fair Value	34,491	17,925
Available for sale, Over 12 Months Unrealized Losses	620	312
Available for sale, Fair Value	279,635	318,844
Available for sale, Unrealized Losses	4,912	9,500
Municipal Securities [Member]
Available for sale, Less Than 12 Months Fair Value	101,034	122,468
Available for sale, Less Than 12 Months Unrealized Losses	2,760	5,759
Available for sale, Over 12 Months Fair Value	3,575	331
Available for sale, Over 12 Months Unrealized Losses	187	15
Available for sale, Fair Value	104,609	122,799
Available for sale, Unrealized Losses	2,947	5,774
U.S. Government Agencies [Member]
Available for sale, Less Than 12 Months Fair Value	87,949	101,382
Available for sale, Less Than 12 Months Unrealized Losses	1,031	2,068
Available for sale, Over 12 Months Fair Value	12,717	5,102
Available for sale, Over 12 Months Unrealized Losses	287	93
Available for sale, Fair Value	100,666	106,484
Available for sale, Unrealized Losses	1,318	2,161
Mortgage-backed Securities, SBA securities [Member]
Available for sale, Less Than 12 Months Fair Value	13,081	15,199
Available for sale, Less Than 12 Months Unrealized Losses	38	145
Available for sale, Over 12 Months Fair Value	12,230	11,434
Available for sale, Over 12 Months Unrealized Losses	81	158
Available for sale, Fair Value	25,311	26,633
Available for sale, Unrealized Losses	119	303
Mortgage-backed Securities, Collateralized mortgage obligations [Member]
Available for sale, Less Than 12 Months Fair Value	5,817	13,135
Available for sale, Less Than 12 Months Unrealized Losses	91	127
Available for sale, Over 12 Months Fair Value	1,755	1,058
Available for sale, Over 12 Months Unrealized Losses	43	46
Available for sale, Fair Value	7,572	14,193
Available for sale, Unrealized Losses	134	173
Mortgage-backed Securities, Non-agency collateralized mortgage obligations
Available for sale, Less Than 12 Months Fair Value	34,114	40,378
Available for sale, Less Than 12 Months Unrealized Losses	308	908
Available for sale, Over 12 Months Fair Value	4,214
Available for sale, Over 12 Months Unrealized Losses	22
Available for sale, Fair Value	38,328	40,378
Available for sale, Unrealized Losses	330	908
U.S. Treasury securities [Member]
Available for sale, Less Than 12 Months Fair Value	998	1,000
Available for sale, Less Than 12 Months Unrealized Losses	3	2
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	998	1,000
Available for sale, Unrealized Losses	3	2
Corporate debt securities [Member]
Available for sale, Less Than 12 Months Fair Value	1,537	6,741
Available for sale, Less Than 12 Months Unrealized Losses	53	167
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	1,537	6,741
Available for sale, Unrealized Losses	53	167
Mutual Funds [Member]
Available for sale, Less Than 12 Months Fair Value	614	616
Available for sale, Less Than 12 Months Unrealized Losses	8	12
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	614	616
Available for sale, Unrealized Losses	$ 8	$ 12

INVESTMENT SECURITIES (Detail42

INVESTMENT SECURITIES (Details 3) - Securities	Jun. 30, 2017	Dec. 31, 2016
Number of securities less than 12 months	186	240
Number of securities more than 12 months	25	15
Number of securities	211	255
Municipal Securities [Member]
Number of securities less than 12 months	92	129
Number of securities more than 12 months	3	1
Number of securities	95	130
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Number of securities less than 12 months	61	66
Number of securities more than 12 months	8	5
Number of securities	69	71
Mortgage-backed Securities, SBA securities [Member]
Number of securities less than 12 months	9	11
Number of securities more than 12 months	9	8
Number of securities	18	19
Mortgage-backed Securities, Collateralized mortgage obligations [Member]
Number of securities less than 12 months	4	7
Number of securities more than 12 months	2	1
Number of securities	6	8
Mortgage-backed Securities, Non-agency collateralized mortgage obligations
Number of securities less than 12 months	16	18
Number of securities more than 12 months	3
Number of securities	19	18
U.S. Treasury securities [Member]
Number of securities less than 12 months	1	1
Number of securities more than 12 months
Number of securities	1	1
Corporate debt securities [Member]
Number of securities less than 12 months	2	8
Number of securities more than 12 months
Number of securities	2	8
Mutual Funds [Member]
Number of securities less than 12 months	1
Number of securities more than 12 months
Number of securities	1

INVESTMENT SECURITIES (Detail43

INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Investment Securities Details 4
Gross proceeds	$ 19,518	$ 41,204	$ 36,842	$ 75,709
Gross realized gains	116	445	123	732
Gross realized losses	80	$ 16	80	$ 34
Securities pledged against deposits	$ 185,500		$ 185,500		$ 237,100

INVESTMENT SECURITIES (Detail44

INVESTMENT SECURITIES (Details 5) $ in Thousands	Jun. 30, 2017USD ($)
Investment Securities Details 4
Available for sale, Less than 1 year, Amortized Cost	$ 1,780
Available for sale, Over 1 year through 5 years, Amortized Cost	11,222
Available for sale, After 5 years through 10 years, Amortized Cost	27,464
Available for sale, Over 10 years, Amortized Cost	139,378
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	179,844
Available for sale, Mortgage-backed securities, Amortized Cost	251,330
Available for sale, Total, Amortized Cost	431,174
Available for Sale, Less than 1 year, Fair Value	1,768
Available for Sale, Over 1 year through 5 years, Fair Value	11,280
Available for Sale, After 5 years through 10 years, Fair Value	27,769
Available for Sale, Over 10 years, Fair Value	137,063
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	177,880
Available for Sale, Mortgage-backed securities, Fair Value	249,951
Available for Sale, Total, Fair Value	$ 427,831

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 797,399		$ 746,686
Less: Net deferred loan fees	(1,572)		(923)
Fair value discount	(704)	$ (786)	(857)	$ (840)	$ (67)	$ (72)
Unamortized premium	520		605
Unamortized discount	(956)		(1,150)
Loans receivable, net	794,687		744,361
One To Four Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	284,639		278,437
Loans receivable, net	283,088		276,938
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	318,267		292,879
Loans receivable, net	316,808		292,103
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	48,275		50,334
Loans receivable, net	48,373		50,400
Residential Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	22,510		18,531
Loans receivable, net	22,449		18,439
Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	74,907		60,605
Loans receivable, net	74,618		60,126
Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	748,598		700,786
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	43,605		41,306
Loans receivable, net	44,081		41,703
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	5,196		4,594
Loans receivable, net	5,270		4,652
Commercial and Consumer Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 48,801		$ 45,900

LOANS RECEIVABLE (Detail Narrat

LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restructuring of loan	$ 12,510	$ 12,664
Federal Reserve Bank Advances [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	93,200	89,100
Federal Home Loan Bank of Atlanta [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	$ 167,200	$ 144,300

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Discount on purchased loans, beginning of period			$ 923
Discount on purchased loans, end of period	$ 1,572		1,572
Fair value discount, beginning of year	786	$ 67	857	$ 72
Additional discount for acquisitions		960		960
Accretion	(82)	(187)	(153)	(192)
Fair value discount, end of year	704	840	704	840
Federal Deposit Insurance Corporation [Member]
Discount on purchased loans, beginning of period	1,083	1,361	1,150	1,366
Accretion	(127)	(128)	(194)	(133)
Discount on purchased loans, end of period	$ 956	$ 1,233	$ 956	$ 1,233

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 9,498	$ 9,498	$ 9,305	$ 9,461
Provision	325		640
Charge-offs	(3)	(722)	(338)	(1,132)
Recoveries	114	164	327	611
Balance, end of period	9,934	8,940	9,934	8,940
One To Four Family Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	3,121	2,725	2,812	2,455
Provision	247		555	293
Charge-offs	(46)	(52)	(50)	(98)
Recoveries	64	6	69	29
Balance, end of period	3,386	2,679	3,386	2,679
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	4,080	3,808	3,979	3,221
Provision	50		162	587
Charge-offs		(431)	(88)	(431)
Recoveries	(34)	2	43	2
Balance, end of period	4,096	3,379	4,096	3,379
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	665	959	677	1,097
Provision	(97)		(109)	(214)
Charge-offs	(1)	(93)	(1)	(130)
Recoveries	5	21	5	134
Balance, end of period	572	887	572	887
Residential Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	216	143	185	278
Provision	32		63	(135)
Charge-offs
Recoveries		32		32
Balance, end of period	248	175	248	175
Other Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	872	1,177	848	1,400
Provision	(30)		167	17
Charge-offs	53	(120)	(175)	(437)
Recoveries	12	7	67	84
Balance, end of period	907	1,064	907	1,064
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	489	536	599	603
Provision	89		(29)	(185)
Charge-offs		(10)		(10)
Recoveries	7	4	15	122
Balance, end of period	585	530	585	530
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	55	150	205	407
Provision	34		(169)	(363)
Charge-offs	(9)	(16)	(24)	(26)
Recoveries	60	92	128	208
Balance, end of period	$ 140	$ 226	$ 140	$ 226

ALLOWANCE FOR LOAN LOSSES (De49

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses
Individually evaluated for impairment	$ 348		$ 584
Collectively evaluated for impairment	9,586		8,721
Balance, end of period	9,934	$ 9,498	9,305	$ 8,940	$ 9,498	$ 9,461
Loans Receivable
Individually evaluated for impairment	12,744		13,671
Collectively evaluated for impairment	781,943		730,690
Total Loans Receivable	794,687		744,361
One To Four Family Residential [Member]
Allowance for loan losses
Individually evaluated for impairment	182		201
Collectively evaluated for impairment	3,204		2,611
Balance, end of period	3,386	3,121	2,812	2,679	2,725	2,455
Loans Receivable
Individually evaluated for impairment	4,158		3,769
Collectively evaluated for impairment	278,930		273,169
Total Loans Receivable	283,088		276,938
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	82		178
Collectively evaluated for impairment	4,014		3,801
Balance, end of period	4,096	4,080	3,979	3,379	3,808	3,221
Loans Receivable
Individually evaluated for impairment	6,652		7,601
Collectively evaluated for impairment	310,156		284,502
Total Loans Receivable	316,808		292,103
Home Equity Line of Credit [Member]
Allowance for loan losses
Individually evaluated for impairment	2		2
Collectively evaluated for impairment	570		675
Balance, end of period	572	665	677	887	959	1,097
Loans Receivable
Individually evaluated for impairment	313		313
Collectively evaluated for impairment	48,060		50,087
Total Loans Receivable	48,373		50,400
Residential Construction [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	248		185
Balance, end of period	248	216	185	175	143	278
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	22,449		18,439
Total Loans Receivable	22,449		18,439
Other Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	55		175
Collectively evaluated for impairment	852		673
Balance, end of period	907	872	848	1,064	1,177	1,400
Loans Receivable
Individually evaluated for impairment	1,321		1,682
Collectively evaluated for impairment	73,297		58,444
Total Loans Receivable	74,618		60,126
Commercial Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	27		28
Collectively evaluated for impairment	558		571
Balance, end of period	585	489	599	530	536	603
Loans Receivable
Individually evaluated for impairment	300		306
Collectively evaluated for impairment	43,781		41,397
Total Loans Receivable	44,081		41,703
Consumer Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	140		205
Balance, end of period	140	$ 55	205	$ 226	$ 150	$ 407
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	5,270		4,652
Total Loans Receivable	$ 5,270		$ 4,652

ALLOWANCE FOR LOAN LOSSES (De50

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Loans receivable, net	$ 794,687	$ 744,361
One To Four Family Residential [Member]
Loans receivable, net	283,088	276,938
Commercial Portfolio Segment [Member]
Loans receivable, net	44,081	41,703
Home Equity Line of Credit [Member]
Loans receivable, net	48,373	50,400
Residential Construction [Member]
Loans receivable, net	22,449	18,439
Other Portfolio Segment [Member]
Loans receivable, net	74,618	60,126
Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	316,808	292,103
Consumer Portfolio Segment [Member]
Loans receivable, net	5,270	4,652
Graded Loan [Member]
Loans receivable, net	581,325	524,688
Graded Loan [Member] | One To Four Family Residential [Member]
Loans receivable, net	141,755	133,827
Graded Loan [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	43,296	38,676
Graded Loan [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	7,701	8,653
Graded Loan [Member] | Residential Construction [Member]
Loans receivable, net	16,284	13,863
Graded Loan [Member] | Other Portfolio Segment [Member]
Loans receivable, net	59,971	45,726
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	311,991	283,568
Graded Loan [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net	327	375
Graded Loan [Member] | Loan Grade One [Member]
Loans receivable, net	11,021	10,634
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	1,022	431
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	9,999	10,203
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Two [Member]
Loans receivable, net	6,565	5,752
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member]
Loans receivable, net	1,184
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	1,176	1,465
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	4,205	4,287
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Three [Member]
Loans receivable, net	74,153	59,968
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member]
Loans receivable, net	27,994	27,975
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	5,045	2,803
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	2,118	1,814
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member]
Loans receivable, net	501	586
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member]
Loans receivable, net	4,433	2,164
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	34,062	24,626
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Four [Member]
Loans receivable, net	318,182	264,398
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member]
Loans receivable, net	84,747	75,246
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	22,759	21,942
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	3,411	3,363
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member]
Loans receivable, net	11,343	10,646
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member]
Loans receivable, net	35,803	22,293
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	159,813	130,857
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net	306	51
Graded Loan [Member] | Loan Grade Five [Member]
Loans receivable, net	145,488	157,135
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member]
Loans receivable, net	22,858	26,306
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	12,586	11,344
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	2,172	3,476
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member]
Loans receivable, net	4,440	2,347
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member]
Loans receivable, net	17,151	17,930
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	86,260	95,408
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net	21	324
Graded Loan [Member] | Loan Grade Six [Member]
Loans receivable, net	15,634	17,112
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member]
Loans receivable, net	2,332	2,587
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	267	270
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member]
Loans receivable, net		284
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member]
Loans receivable, net	2,118	2,470
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	10,917	11,501
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Seven [Member]
Loans receivable, net	10,282	9,689
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member]
Loans receivable, net	2,640	1,713
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	441	421
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member]
Loans receivable, net
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member]
Loans receivable, net	466	869
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	6,735	6,686
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net
UnGraded Loan [Member]
Loans receivable, net	213,362	219,673
UnGraded Loan [Member] | One To Four Family Residential [Member]
Loans receivable, net	141,333	143,111
UnGraded Loan [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	785	3,027
UnGraded Loan [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	40,672	41,747
UnGraded Loan [Member] | Residential Construction [Member]
Loans receivable, net	6,165	4,576
UnGraded Loan [Member] | Other Portfolio Segment [Member]
Loans receivable, net	14,647	14,400
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	4,817	8,535
UnGraded Loan [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net	4,943	4,277
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member]
Loans receivable, net	1,778	1,437
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member]
Loans receivable, net	963	889
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	309	250
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member]
Loans receivable, net	212
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans receivable, net	294	251
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net		47
UnGraded Loan [Member] | Performing Financing Receivable [Member]
Loans receivable, net	211,584	218,236
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member]
Loans receivable, net	140,370	142,222
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans receivable, net	785	3,027
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans receivable, net	40,363	41,497
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member]
Loans receivable, net	5,953	4,576
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans receivable, net	14,353	14,149
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, net	4,817	8,535
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans receivable, net	$ 4,943	$ 4,230

ALLOWANCE FOR LOAN LOSSES (De51

ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 5,384	$ 7,503
60-89 Days Past	667	2,953
90 Days and Over Past Due	3,548	3,090
Total Past Due	9,599	13,546
Current	785,088	730,815
Loans receivable, net	794,687	744,361
One To Four Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,759	4,917
60-89 Days Past	426	1,108
90 Days and Over Past Due	878	427
Total Past Due	5,063	6,452
Current	278,025	270,486
Loans receivable, net	283,088	276,938
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	831	1,382
60-89 Days Past		1,800
90 Days and Over Past Due	2,053	1,638
Total Past Due	2,884	4,820
Current	313,924	287,283
Loans receivable, net	316,808	292,103
Home Equity Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	37	126
60-89 Days Past	29	44
90 Days and Over Past Due	280	231
Total Past Due	346	401
Current	48,027	49,999
Loans receivable, net	48,373	50,400
Residential Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		180
60-89 Days Past	212
90 Days and Over Past Due
Total Past Due	212	180
Current	22,237	18,259
Loans receivable, net	22,449	18,439
Other Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	196	468
60-89 Days Past
90 Days and Over Past Due	303	794
Total Past Due	499	1,262
Current	74,119	58,864
Loans receivable, net	74,618	60,126
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	535	368
60-89 Days Past
90 Days and Over Past Due	34
Total Past Due	569	368
Current	43,512	41,335
Loans receivable, net	44,081	41,703
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	26	62
60-89 Days Past		1
90 Days and Over Past Due
Total Past Due	26	63
Current	5,244	4,589
Loans receivable, net	$ 5,270	$ 4,652

ALLOWANCE FOR LOAN LOSSES (De52

ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	$ 8,805	$ 9,135
Unpaid Principal Balance, without a valuation allowance	11,254	11,672
Recorded Balance, Recorded Balance, with a valuation allowance	3,939	4,536
Unpaid Principal Balance, with a valuation allowance	3,939	4,536
Recorded Balance	12,744	13,671
Unpaid Principal Balance	15,193	16,208
Specific Allowance	348	584
One To Four Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	3,035	2,625
Unpaid Principal Balance, without a valuation allowance	3,145	2,723
Recorded Balance, Recorded Balance, with a valuation allowance	1,123	1,144
Unpaid Principal Balance, with a valuation allowance	1,123	1,144
Recorded Balance	4,158	3,769
Unpaid Principal Balance	4,268	3,867
Specific Allowance	182	201
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	4,971	5,526
Unpaid Principal Balance, without a valuation allowance	7,095	7,710
Recorded Balance, Recorded Balance, with a valuation allowance	1,681	2,075
Unpaid Principal Balance, with a valuation allowance	1,681	2,075
Recorded Balance	6,652	7,601
Unpaid Principal Balance	8,776	9,785
Specific Allowance	82	178
Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	213	213
Unpaid Principal Balance, without a valuation allowance	328	328
Recorded Balance, Recorded Balance, with a valuation allowance	100	100
Unpaid Principal Balance, with a valuation allowance	100	100
Recorded Balance	313	313
Unpaid Principal Balance	428	428
Specific Allowance	2	2
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	586	771
Unpaid Principal Balance, without a valuation allowance	686	911
Recorded Balance, Recorded Balance, with a valuation allowance	735	911
Unpaid Principal Balance, with a valuation allowance	735	911
Recorded Balance	1,321	1,682
Unpaid Principal Balance	1,421	1,822
Specific Allowance	55	175
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	300	306
Unpaid Principal Balance, with a valuation allowance	300	306
Recorded Balance	300	306
Unpaid Principal Balance	300	306
Specific Allowance	$ 27	$ 28

ALLOWANCE FOR LOAN LOSSES (De53

ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Average Investment in Impaired Loans, without a valuation allowance	$ 11,254	$ 12,684	$ 11,361	$ 12,700
Interest Income Recognized, without a valuation allowance	87	43	166	135
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	3,944	5,201	3,997	5,222
Interest Income Recognized, with a valuation allowance	51	27	100	94
Average Investment in Impaired Loans	15,198	17,885	15,358	17,922
Interest Income Recognized	138	70	266	229
One To Four Family Residential [Member]
Average Investment in Impaired Loans, without a valuation allowance	3,145	2,681	3,167	2,690
Interest Income Recognized, without a valuation allowance	37	19	69	55
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	1,125	2,036	1,134	2,043
Interest Income Recognized, with a valuation allowance	12		25	24
Average Investment in Impaired Loans	4,270	4,717	4,301	4,733
Interest Income Recognized	49	19	94	79
Commercial Real Estate Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	7,095	8,416	7,177	8,419
Interest Income Recognized, without a valuation allowance	32	13	63	59
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	1,684	1,768	1,695	1,775
Interest Income Recognized, with a valuation allowance	22	14	43	41
Average Investment in Impaired Loans	8,779	10,184	8,872	10,194
Interest Income Recognized	54	27	106	100
Home Equity Line of Credit [Member]
Average Investment in Impaired Loans, without a valuation allowance	328	679	328	679
Interest Income Recognized, without a valuation allowance	13	3	24	5
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	100	100	100	100
Interest Income Recognized, with a valuation allowance	1	1	2	2
Average Investment in Impaired Loans	428	779	428	779
Interest Income Recognized	14	4	26	7
Other Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	686	908	689	912
Interest Income Recognized, without a valuation allowance	5	8	10	16
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	735	985	764	989
Interest Income Recognized, with a valuation allowance	10	8	19	18
Average Investment in Impaired Loans	1,421	1,893	1,453	1,901
Interest Income Recognized	15	16	29	34
Commercial Portfolio Segment [Member]
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	300	312	304	315
Interest Income Recognized, with a valuation allowance	6	4	11	9
Average Investment in Impaired Loans	300	312	304	315
Interest Income Recognized	$ 6	$ 4	$ 11	$ 9

ALLOWANCE FOR LOAN LOSSES (De54

ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 6,587	$ 6,041
One To Four Family Residential [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	1,554	1,125
Commercial Real Estate Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	3,771	3,536
Home Equity Line of Credit [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	309	250
Residential Construction [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	211
Other Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	708	1,042
Commercial Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	34	41
Consumer Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual		$ 47

ALLOWANCE FOR LOAN LOSSES (De55

ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Modifications [Line Items]
TDR loans	$ 12,510	$ 12,664
Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	9,797	9,882
Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,713	2,782
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,716	3,770
One To Four Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,506	3,560
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	210	210
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	6,841	6,693
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	4,557	4,327
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,284	2,366
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	312	313
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	312	313
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans
Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,341	1,583
Other Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,122	1,377
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	219	206
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	300	305
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	300	305
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans

GOODWILL AND OTHER INTANGIBLE56

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at beginning of period	$ 2,065	$ 711
Prior acquisitions measurement period adjustments	63
Goodwill from current year acquisitions	5,016	1,354
Balance at end of period	$ 7,144	$ 2,065

GOODWILL AND OTHER INTANGIBLE57

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount at beginning of period	$ 1,120	$ 590
Additions from acquisitions during the period	1,650	530
Gross balance at end of period	2,770	1,120
Accumulated amortization	(300)	(141)
Finite Lived Core Deposits Net	$ 2,470	979
Amortization expense		$ 400

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Deposits By Type [Line Items]
Balance	$ 1,013,998	$ 828,874	$ 1,013,998	$ 828,874	$ 830,013
Interest Expense	1,085	1,032	2,113	1,974	3,964
Noninterest-bearing demand [Member]
Deposits By Type [Line Items]
Balance	163,784	127,010	163,784	127,010	139,136
Interest Expense
Interest-bearing Deposits [Member]
Deposits By Type [Line Items]
Balance	176,788	116,648	176,788	116,648	122,271
Interest Expense			93	94	160
Money Market Funds [Member]
Deposits By Type [Line Items]
Balance	261,127	236,750	261,127	236,750	239,387
Interest Expense			455	324	770
Savings Deposits [Member]
Deposits By Type [Line Items]
Balance	48,687	38,057	48,687	38,057	40,014
Interest Expense			25	26	49
Time deposit [Member]
Deposits By Type [Line Items]
Balance	$ 363,612	$ 310,409	363,612	310,409	289,205
Interest Expense			$ 1,540	$ 1,530	$ 2,985

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances [Abstract]
2,017	$ 175,500	$ 273,500
2,018	45,000	25,000
2,019	3,000
Total	$ 223,500	$ 298,500
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract]
2,017	1.01%	0.64%
2,018	1.24%	1.17%
2,019	1.56%
Total	1.06%	0.68%

DERIVATIVE FINANCIAL INSTRUME60

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Designated as Hedging Instrument [Member]
Asset derivatives, Fair value	$ 428	$ 476
Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Asset derivatives, Fair value	428	476
Not Designated as Hedging Instrument [Member]
Asset derivatives, Fair value	69	60
Liability derivatives, Fair value	5
Not Designated as Hedging Instrument [Member] | Mortgage banking - loan commitment [Member]
Asset derivatives, Fair value	61	41
Liability derivatives, Fair value	4
Not Designated as Hedging Instrument [Member] | Mortgage loan forward sales commitments [Member]
Asset derivatives, Fair value	8	19
Liability derivatives, Fair value	$ 1

DERIVATIVE FINANCIAL INSTRUME61

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Junior Subordinated Debt [Member]
Notional Amount	$ 14
Fixed Interest Rate	0.958%
Underlying Rate	3 month LIBOR
Life of Swap Contract	4 years
FHLB Variable Rate Advance [Member]
Notional Amount	$ 15
Fixed Interest Rate	1.054%
Underlying Rate	3 month LIBOR
Life of Swap Contract	2 years
FHLB Variable Rate Advance 1 [Member]
Notional Amount	$ 21
Fixed Interest Rate	1.354%
Underlying Rate	3 month LIBOR
Life of Swap Contract	2 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Federal net operating loss	$ 7,673	$ 8,560
Allowance for loan losses	3,503	3,245
Deferred compensation and post employment benefits	3,332	3,365
State net operating loss	480	557
Valuation reserve for other real estate	498	693
Non-accrual interest	354	375
Loan basis differences	200	238
Unrealized losses on securities	1,078	3,079
Deposit premium	93	155
Other	1,412	1,380
Gross deferred tax assets	18,623	21,647
Fixed assets		263
Loan servicing rights	1,005	962
Deferred loan costs	1,118	1,002
Prepaid expenses	74	57
Core deposit intangible	120	158
Other	455	220
Total deferred tax liabilities	2,772	2,662
Net deferred tax asset	$ 15,851	$ 18,985

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Federal [Member]
Unused Net Operating Losses	$ 21,922
Federal [Member] | Minimum [Member]
Expiration Dates	2,031
Federal [Member] | Maximum [Member]
Expiration Dates	2,034
North Carolina [Member]
Unused Net Operating Losses	$ 24,509
North Carolina [Member] | Minimum [Member]
Expiration Dates	2,026
North Carolina [Member] | Maximum [Member]
Expiration Dates	2,027

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share Details
Net income	$ 2,102	$ 858	$ 1,366	$ 3,402	$ 2,224
Weighted average shares outstanding	6,456,572	6,466,665		6,460,693	6,492,209
Effect of dilutive securities	92,428	15,414		79,831	14,276
Average shares outstanding	6,549,000	6,482,079		6,540,524	6,506,485
Earnings per share - basic	$ 0.33	$ 0.13		$ 0.53	$ 0.34
Earnings per share - diluted	0.32	$ 0.13		$ 0.52	$ 0.34
Dilutive common stock excluded from diuted earnings per share				5,000	411,500
Weighted Average Exercise Price of stock options granted to employees	$ 21.05		$ 18.42	$ 21.05

ACCUMULATED OTHER COMPREHENSI65

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Balance, beginning of period	$ (4,740)	$ 721	$ (5,456)	$ (1,736)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	55	94	109	295
Change in unrealized holding gain (loss) on securities available for sale	4,510	3,049	5,431	6,504
Reclassification adjustment for net securities gains realized in net income	(36)	(429)	(43)	(698)
Reclassification adjustment for other than temporary impairment realized in net income			79
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		139		570
Change in unrealized holding gains and losses on cash flow hedge	(107)	(45)	(68)	(45)
Reclassification adjustment for cash flow effectiveness	(2)		(20)
Income tax benefit (expense)	(1,615)	(1,022)	(2,003)	(2,383)
Balance, end of period	(1,931)	2,507	(1,931)	2,507
Valuation Allowance of Deferred Tax Assets [Member]
Balance, beginning of period			(202)	(579)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale			109	295
Change in unrealized holding gain (loss) on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Reclassification adjustment for other than temporary impairment 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	(93)	(284)	(93)	(284)
Available-for-sale Securities [Member]
Balance, beginning of period	(4,928)	1,394	(5,554)	(594)
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	4,510	3,049	5,431	6,504
Reclassification adjustment for net securities gains realized in net income	(36)	(429)	(43)	(698)
Reclassification adjustment for other than temporary impairment realized in net income			79
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)	(1,654)	(984)	(2,021)	(2,182)
Balance, end of period	(2,108)	3,030	(2,108)	3,030
Held-to-maturity Securities [Member]
Balance, beginning of period		(295)		(563)
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
Reclassification adjustment for other than temporary impairment 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		139		570
Income tax benefit (expense)		(55)		(218)
Balance, end of period		(211)		(211)
Trading account assets [Member]
Balance, beginning of period	(148)	(378)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale	55	94
Change in unrealized holding gain (loss) on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Income tax benefit (expense)
Balance, end of period	(93)	(284)	(93)	(284)
Cash Flow Hedge [Member]
Balance, beginning of period	336		300
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
Reclassification adjustment for other than temporary impairment realized in net income
Change in unrealized holding gains and losses on cash flow hedge	(107)	(45)	(68)	(45)
Reclassification adjustment for cash flow effectiveness	2		20
Income tax benefit (expense)	39	(17)	18	17
Balance, end of period	$ 270	$ (28)	$ 270	$ (28)

ACCUMULATED OTHER COMPREHENSI66

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Increase related to transfer from AFS
Interest expense - Junior subordinated notes	$ 141	$ 128	$ 278	254
Cash Flow Hedge [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense - FHLB advances	(11)		(28)
Interest expense - Junior subordinated notes	9		8
Tax effect	1		7
Impact, net of tax	(1)		(13)
Valuation Allowance of Deferred Tax [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax	(55)	(94)	(109)	(295)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax	(34)	92	(144)	(207)
Gain on sale of investments, net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	36	429	43	698
Interest expense - Other than temporary impairment on AFS securities			(79)
Tax effect	(13)	(159)	13	(258)
Impact, net of tax	23	270	(23)	440
Investment Income (Expense) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax		(139)		(570)
Tax effect		55		218
Impact, net of tax		$ (84)		$ (352)

COMMITMENTS AND CONTINGENCIES67

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2017USD ($)
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 109,967
Lines of credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	109,127
Standby Letters of Credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 840

COMMITMENTS AND CONTINGENCIES68

COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Fixed	$ 17,449
Variable	10,402
Total	$ 27,851
Minimum [Member]
Fixed (as a percent)	3.70%
Variable (as a percent)	3.99%
Maximum [Member]
Fixed (as a percent)	5.75%
Variable (as a percent)	6.75%

COMMITMENTS AND CONTINGENCIES69

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
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, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 436,682	$ 406,641
Liabilities measured at fair value on recurring basis	5
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	433,467	403,502
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	2,512
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	1,004	12,107
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		5,211
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	8,762	8,329
Fair Value, Inputs, Level 1 [Member] | 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	8,762	8,329
Fair Value, Inputs, Level 1 [Member] | 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	2,512
Fair Value, Inputs, Level 1 [Member] | 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		5,211
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	424,079	393,505
Fair Value, Inputs, Level 2 [Member] | 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	423,651	393,029
Fair Value, Inputs, Level 2 [Member] | 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	1,004	12,107
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	3,841	4,807
Liabilities measured at fair value on recurring basis	5
Fair Value, Inputs, Level 3 [Member] | 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	1,054	2,144
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	5,636
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	5,636
Mutual Funds [Member] | 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	614	604
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | 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	614	604
Municipal Securities [Member] | 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	151,526	146,771
Municipal Securities [Member] | Fair Value, Inputs, Level 2 [Member] | 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	151,526	146,771
Collateralized Mortgage Backed Securities [Member] | 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	249,951	217,937
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | 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	249,951	217,937
Corporate Bond [Member] | 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	22,224	18,358
Corporate Bond [Member] | Fair Value, Inputs, Level 2 [Member] | 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	21,170	16,214
Corporate Bond [Member] | Fair Value, Inputs, Level 3 [Member] | 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	1,054	2,144
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	2,718	2,603
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	2,718	2,603
Derivative Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	428	476
Derivative Assets [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	428	476
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	8	19
Liabilities measured at fair value on recurring basis	1
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	8	19
Liabilities measured at fair value on recurring basis	1
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	61	41
Liabilities measured at fair value on recurring basis	4
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	61	41
Liabilities measured at fair value on recurring basis	$ 4
U.S. Treasury securities [Member] | 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		2,514
U.S. Treasury securities [Member] | Fair Value, Inputs, Level 1 [Member] | 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		$ 2,514

FAIR VALUE DISCLOSURES (Detai71

FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value Disclosures Details 2
Balance at beginning of period	$ 3,740	$ 2,478	$ 4,807	$ 2,390
Corporate bonds Fair value adjustment	(2)		(4)
Corporate bonds Transfer to Level 2			(1,086)
Capitalization from loans sold	141	131	292	259
Fair value adjustment	(61)	(138)	(177)	(212)
Mortgage derivative gains included in Other income	18	39	4	73
Balance at end of period	$ 3,836	$ 2,510	$ 3,836	$ 2,510

FAIR VALUE DISCLOSURES (Detai72

FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets measured at fair value on nonrecurring basis	$ 13,874	$ 13,782
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value on nonrecurring basis	13,874	13,782
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	2,579	2,205
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	4,938	6,329
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	213	213
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	586	809
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Consumer Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	300
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	2,579	2,205
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	4,938	6,329
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	213	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	586	809
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Consumer Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	300
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis		1,336
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	864	722
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,623	2,168
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		1,336
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	864	722
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	1,623	$ 2,168
Fair Value, Measurements, Nonrecurring [Member] | SBIC Investments [Member]
Assets measured at fair value on nonrecurring basis	2,771
Fair Value, Measurements, Nonrecurring [Member] | SBIC Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value on nonrecurring basis	$ 2,771

FAIR VALUE DISCLOSURES (Detai73

FAIR VALUE DISCLOSURES (Details 4)	6 Months Ended
	Jun. 30, 2017
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Collateral discounts and estimated selling cost
Valuation Technique	Discounted Appraisals
Impaired Loans [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral discounts and estimated selling cost	0.00%
Impaired Loans [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
Valuation Technique	Discounted Appraisals
Real Estate Owned [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] | 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]
Valuation Technique	Discounted Cash Flows
Loan Servicing Rights[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] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment Speed	35.00%
Discount rate	14.00%
Corporate Bond [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Recent trade pricing
Valuation Technique	Discounted Cash Flows
Corporate Bond [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	0.00%
Corporate Bond [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	8.00%
SBIC Investments [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	Current operations and financial condition
Valuation Technique	Indicative value provided by fund
SBIC Investments [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	0.00%
SBIC Investments [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	13.00%

FAIR VALUE DISCLOSURES (Detai74

FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Assets:
Cash and equivalents	$ 80,111	$ 43,294	$ 57,945	$ 40,650
Trading securities	5,636	5,211
Securities available for sale	427,831	398,291
Other investments, at cost	12,208	15,261
Interest receivable	5,211	5,012
Bank owned life insurance	31,742	31,347
Loan servicing rights	2,718	2,603
Liabilities:
Federal Home Loan Bank advances	223,500	298,500
Junior subordinated debentures	14,433	14,433
Other borrowings	3,371	2,725
Accrued interest payable	644	254
Reported Value Measurement [Member]
Assets:
Cash and equivalents	80,111	43,294
Trading securities	5,636	5,211
Securities available for sale	427,831	398,291
Loans held for sale	3,668	4,584
Loans receivable, net	794,687	744,361
Other investments, at cost	12,208	15,261
Interest receivable	5,211	5,012
Bank owned life insurance	31,742	31,347
Loan servicing rights	2,718	2,603
Derivative asset	428	476
SBIC investments	2,771	1,666
Liabilities:
Demand deposits	658,864	540,808
Time deposits	355,134	289,205
Federal Home Loan Bank advances	223,500	298,500
Junior subordinated debentures	14,433	14,433
Other borrowings	3,371	2,725
Accrued interest payable	644	254
Reported Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	8	19
Liabilities:
Commitments	1
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	61	41
Liabilities:
Commitments	4
Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents	80,111	43,294
Trading securities	5,636	5,211
Securities available for sale	427,831	398,291
Loans held for sale	4,015	5,093
Loans receivable, net	787,146	741,612
Other investments, at cost	12,208	15,261
Interest receivable	5,211	5,012
Bank owned life insurance	31,742	31,347
Loan servicing rights	2,718	2,603
Derivative asset	428	476
SBIC investments	2,771	1,666
Liabilities:
Demand deposits	658,864	540,808
Time deposits	360,148	286,611
Federal Home Loan Bank advances	233,640	298,667
Junior subordinated debentures	14,433	14,433
Other borrowings	3,392	2,907
Accrued interest payable	644	254
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	8	19
Liabilities:
Commitments	1
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	61	41
Liabilities:
Commitments	4
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents	80,111	43,294
Trading securities	5,636	5,211
Securities available for sale	3,126	3,118
Loans held for sale
Loans receivable, net
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights
Derivative asset
SBIC investments
Liabilities:
Demand deposits
Time deposits
Federal Home Loan Bank advances
Junior subordinated debentures
Other borrowings
Accrued interest payable
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents
Trading securities
Securities available for sale	423,651	393,029
Loans held for sale	4,015	5,093
Loans receivable, net
Other investments, at cost	12,208	15,261
Interest receivable	5,211	5,012
Bank owned life insurance	31,742	31,347
Loan servicing rights
Derivative asset	428	476
SBIC investments
Liabilities:
Demand deposits	658,864	540,808
Time deposits
Federal Home Loan Bank advances	233,640	298,667
Junior subordinated debentures	14,433	14,433
Other borrowings	3,392	2,907
Accrued interest payable	644	254
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member]
Assets:
Cash and equivalents
Trading securities
Securities available for sale	1,054	2,144
Loans held for sale
Loans receivable, net	787,146	741,612
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights	2,718	2,603
Derivative asset
SBIC investments	2,771	1,666
Liabilities:
Demand deposits
Time deposits	360,148	286,611
Federal Home Loan Bank advances
Junior subordinated debentures
Other borrowings
Accrued interest payable
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments	8	19
Liabilities:
Commitments	1
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments	61	$ 41
Liabilities:
Commitments	$ 4

SHARE REPURCHASES (Details)

SHARE REPURCHASES (Details) - $ / shares	1 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Feb. 28, 2017	Jan. 31, 2017	Jan. 28, 2016
Share Repurchases Details
Number of Shares Authorized to be Repurchased					327,318
Number of Shares Purchased	13,000	13,000
Average Price Paid per Share	$ 23.12	$ 23.12
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs	209,750	209,750	222,750	222,750