Entegra Financial (ENFC) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 04, 2018
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, 2018
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		6,891,672
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 14,880	$ 15,534
Interest-earning deposits	98,239	93,933
Cash and cash equivalents	113,119	109,467
Investments - equity securities	6,696	6,095
Investments - available for sale	334,344	342,863
Other investments, at cost	12,039	12,386
Loans held for sale (includes loans at fair value of $1,170 and $0, respectively)	5,113	3,845
Loans receivable	1,052,172	1,005,139
Allowance for loan losses	(11,525)	(10,887)
Fixed assets, net	24,419	24,113
Real estate owned	2,802	2,568
Accrued interest receivable	5,706	5,405
Bank owned life insurance	32,543	32,150
Small Business Investment Company Holdings, at cost	3,537	3,491
Net deferred tax asset	8,515	8,831
Loan servicing rights	2,685	2,756
Goodwill	23,903	23,903
Core deposit intangible	3,923	4,269
Other assets	8,303	5,055
Total assets	1,628,294	1,581,449
Liabilities:
Deposits	1,220,578	1,162,177
Federal Home Loan Bank advances	213,500	223,500
Junior subordinated notes	14,433	14,433
Other borrowings	9,377	8,623
Post employment benefits	9,941	10,174
Accrued interest payable	998	935
Other liabilities	4,681	10,294
Total liabilities	1,473,508	1,430,136
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; 6,891,672 and 6,879,191 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively
Common stock held by Rabbi Trust, at cost; 17,672 shares at March 31, 2018 and December 31, 2017	(379)	(379)
Additional paid in capital	73,608	72,997
Retained earnings	85,378	78,718
Accumulated other comprehensive loss	(3,821)	(23)
Total shareholders' equity	154,786	151,313
Total liabilities and shareholders' equity	$ 1,628,294	$ 1,581,449

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Loans at fair value	$ 1,710	$ 0
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	6,891,672	6,879,191
Common stock, shares outstanding	6,891,672	6,879,191
Common Stock held by Rabbi Trust	17,672	17,672

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income:
Interest and fees on loans	$ 12,468	$ 9,035	$ 24,360	$ 17,511
Interest on tax exempt loans	92	98	184	187
Taxable securities	1,557	1,821	3,346	3,580
Tax-exempt securities	607	798	1,157	1,529
Interest-earning deposits	432	127	781	243
Other	173	145	343	311
Total interest and dividend income	15,329	12,024	30,171	23,361
Interest expense:
Deposits	1,827	1,085	3,209	2,113
Federal Home Loan Bank advances	930	542	1,750	1,072
Junior subordinated notes	142	141	280	278
Other borrowings	120	34	229	64
Interest Expense	3,019	1,802	5,468	3,527
Net interest income	12,310	10,222	24,703	19,834
Provision for loan losses	357	325	718	640
Net interest income after provision for loan losses	11,953	9,897	23,985	19,194
Noninterest income:
Servicing income, net	39	158	133	253
Mortgage banking	283	344	522	564
Gain on sale of SBA loans	229	4	290	146
Gain (loss) on sale of investments, net	(508)	36	(520)	43
Equity securities gains (losses)	45	100	(8)	313
Other than temporary impairment on cost method investment				(700)
Service charges on deposit accounts	405	412	836	803
Interchange fees	271	243	519	409
Bank owned life insurance	194	214	394	395
Other	340	182	548	312
Total noninterest income	1,298	1,693	2,714	2,538
Noninterest expenses:
Compensation and employee benefits	5,652	5,086	11,269	9,922
Net occupancy	1,122	926	2,214	1,877
Federal deposit insurance	148	135	427	239
Professional and advisory	333	363	610	637
Data processing	566	424	1,075	825
Marketing and advertising	235	226	444	474
Merger-related expenses	272	408	468	856
Net cost of operation of real estate owned	93	81	143	215
Other	1,018	981	1,912	1,948
Total noninterest expenses	9,439	8,630	18,562	16,993
Income before taxes	3,812	2,960	8,137	4,739
Income tax expense	725	858	1,468	1,337
Net income	$ 3,087	$ 2,102	$ 6,669	$ 3,402
Earnings per common share:
Earnings per share - basic	$ 0.45	$ 0.33	$ 0.97	$ 0.53
Earnings per share - diluted	$ 0.44	$ 0.32	$ 0.95	$ 0.52
Weighted average common shares outstanding:
Common shares outstanding - Basic	6,889,743	6,456,572	6,887,838	6,460,693
Common shares outstanding - Diluted	7,037,857	6,549,000	7,033,340	6,540,524

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,087	$ 2,102	$ 6,669	$ 3,402
Other comprehensive income (loss):
Change in unrealized holding gains and losses on securities available for sale	(1,358)	4,510	(5,863)	5,431
Reclassification adjustment for securities losses (gains) realized in net income	935	(36)	947	(43)
Reclassification adjustment for other then temporary impairment of securities available for sale				79
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale		55		109
Change in unrealized holding gains and losses on cash flow hedge	8	(107)	210	(68)
Reclassification adjustment for cash flow hedge effectiveness	(142)	2	(198)	(68)
Other comprehensive income (loss), before tax	(557)	4,424	(4,904)	5,528
Income tax effect related to items of other comprehensive income (loss)	132	(1,615)	1,097	(2,003)
Other comprehensive income (loss), after tax	(425)	2,809	(3,807)	3,525
Comprehensive income (loss)	$ 2,662	$ 4,911	$ 2,862	$ 6,927

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, 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)				(320)
Repurchase of common stock (in shares)	13,000
Ending Balance at Jun. 30, 2017		62,802	79,541	(1,931)	(279)	140,134
Ending Balance (in shares) at Jun. 30, 2017	6,458,679
Beginning Balance at Dec. 31, 2017		72,997	78,718	(23)	(379)	151,313
Beginning Balance (in shares) at Dec. 31, 2017	6,879,191
Net income (loss)			6,669			6,669
Other comprehensive income, net of tax				(3,807)		(3,807)
Stock compensation expense		515				515
Stock options exercised		117				117
Stock options exercised,net of shares surrendered (in shares)	8,081
Vesting of restricted stock units, net shares surrendered		(21)				(21)
Vesting of restricted stock units (in shares)	4,400
Repurchase of common stock
Cumulative effect of change in accounting principal			(9)	9
Ending Balance at Jun. 30, 2018		$ 73,608	$ 85,378	$ (3,821)	$ (379)	$ 154,786
Ending Balance (in shares) at Jun. 30, 2018	6,891,672

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 6,669	$ 3,402
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	(417)	(45)
Investment amortization, net	1,828	2,299
Equity securities loss (income)	8	(307)
Provision for loan losses	718	640
Provision for real estate owned	83	167
Share-based compensation expense	515	458
Deferred tax expense	1,407	1,240
Loss (gain) on sales of securities available for sale	520	(43)
Other than temporary impairment on investments		700
Income on bank owned life insurance, net	(394)	(395)
Mortgage banking income, net	(522)	(564)
Gain on sales of SBA loans	(290)	(146)
Net realized gain on sale of real estate owned	(17)	(41)
Loans originated for sale	(24,011)	(24,789)
Proceeds from sale of loans originated for sale	23,554	25,272
Net change in operating assets and liabilities:
Accrued interest receivable	(301)	(199)
Loan servicing rights	71	(115)
Other assets	(3,139)	189
Postemployment benefits	(233)	(48)
Accrued interest payable	63	73
Other liabilities	(6,826)	74
Net cash provided by operating activities	(714)	7,822
Activity for investment securities:
Purchases	(78,053)	(85,094)
Maturities/calls and principal repayments	24,251	21,222
Sales	55,601	36,842
Proceeds from sale of Visa Class B restricted shares	427
Net increase in loans	(46,882)	(48,554)
Net cash received in branch acquisition		146,750
Proceeds from sale of real estate owned	395	770
Proceeds from sale of fixed assets	(1,013)	(343)
Purchase of Small Business Investment Company Holdings, at cost	(46)	(1,116)
Purchase of other investments, at cost	(78)
Redemptions of other investments, at cost	425	3,053
Net cash provided by (used in) investing activities	(45,400)	73,530
Cash flows from financing activities:
Net increase in deposits	57,530	28,829
Net increase in escrow deposits	1,385	1,310
Net increase in other borrowings	755	646
Proceeds from FHLB advances	195,500	573,500
Repayment of FHLB advances	(205,500)	(648,500)
Cash received upon exercise of stock options	117
Cash paid for shares surrendered upon vesting of restricted stock	(21)
Repurchase of common stock		(320)
Net cash provided by financing activities	49,766	(44,535)
Increase (decrease) in cash and cash equivalents	3,652	36,817
Cash and cash equivalents, beginning of period	109,467	43,294
Cash and cash equivalents, end of period	113,119	80,111
Cash paid during the year for:
Interest on deposits and other borrowings	5,405	3,454
Income taxes	3,670	75
Noncash investing and financing activities:
Real estate acquired in satisfaction of mortgage loans	749	220
Investments to be settled	1,162
Loans originated for disposition of real estate owned	54	1,001
Acquisitions
Assets acquired		3,997
Liabilities assumed		(154,505)
Net assets/(liabilities)		$ (150,508)

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Entegra Financial Corp. (“we,” “us,” “our,” or 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 a 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. (“Entegra Services”), which holds investment securities. 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, the valuation of acquired loans, separately identifiable intangible assets associated with mergers and acquisitions, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of deferred tax assets. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank, and Entegra Services. 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 year’s financial statements may have been reclassified to conform to the current year’s presentation. Certain investment securities were reclassified to either collateralized mortgage obligations with guarantees, or collateralized mortgage obligations with no guarantee to better align the investment securities by cash flow attributes. The reclassifications had no 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 Securities and Exchange Commission’s (the “SEC”) instructions for Quarterly Reports on 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 for the year ended December 31, 2017, filed with the SEC on March 16, 2018 (the “2017 Form 10-K”). 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. Business Combinations 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. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. Recent Accounting Standards Updates In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02 Income Statement – Reporting Comprehensive Income (Topic 220: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities 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. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Fair Value of Assets and Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In June 2016, the FASB issued amendments to ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU 2016-15 , Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). 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, 2018
Business Combinations [Abstract]
ACQUISITIONS	NOTE 2. ACQUISITIONS The Company has determined that the acquisitions described below constitute a business combination as defined in Accounting Standards Codification (“ASC”) Topic 805, Business Combinations Fair Value Measurements Chattahoochee Bank of Georgia On October 1, 2017, the Bank acquired Chattahoochee Bank of Georgia in Gainesville, Georgia (“Chattahoochee”). In connection with the acquisition, the Bank acquired $189.2 million of assets and assumed $170.6 million of liabilities. Total consideration transferred was $25.4 million of cash and 395,666 shares of the Company’s common stock valued at $9.9 million. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $16.8 million which is deductible over 15 years for tax purposes. There were no loans purchased with evidence of credit impairment. The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: As Recorded by Fair Value As Recorded by (Dollars in thousands) Chattahoochee Adjustments the Company Assets Cash and cash equivalents $ 22,625 $ — $ 22,625 Loans 159,540 (570 ) 158,970 Fixed assets 3,945 (408 ) 3,537 Accrued interest receivable 421 — 421 Core deposit intangible — 2,070 2,070 Deferred tax asset 751 (751 ) — Other assets 1,579 (8 ) 1,571 Total assets acquired $ 188,861 $ 333 $ 189,194 Liabilities Deposits $ 165,624 $ 472 $ 166,096 Accrued Interest payable 102 (14 ) 88 Other liabilities 7,790 (3,341 ) 4,449 Total liabilities assumed 173,516 (2,883 ) 170,633 Excess of assets acquired over liabilities assumed $ 15,345 $ 3,216 $ 18,561 Consideration transferred Cash $ 25,448 Common stock issued (395,666 shares) 9,872 Total fair value of consideration transferred 35,320 Goodwill $ 16,759 Stearns Bank, N.A. On February 24, 2017, the Bank completed its acquisition of two branches from Stearns Bank, N.A. (“Stearns”). In connection with the acquisition, the Bank acquired the bank facilities and certain other assets and assumed $154.2 million of deposits. 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 The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: (Dollars in thousands) As Recorded by Fair Value As Recorded by 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 $ 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

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 3. INVESTMENT SECURITIES The following table presents the holdings of our equity securities as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 (Dollars in thousands) Mutual funds $ 6,696 $ 6,095 Equity securities with a fair value of $6.1 million as of June 30, 2018 are held in a Rabbi Trust and seek to generate returns that will fund the cost of certain deferred compensation agreements. Equity securities with a fair value of $0.6 million as of June 30, 2018 are in a mutual fund that qualifies under the Community Reinvestment Act (“CRA”) as CRA activity. There were gains and losses on equity securities of $45,000 and $(8,000), respectively, and gains of $0.1 million and $0.3 million for the three and six months ended June 30, 2018 and 2017, respectively. The CRA mutual fund was reclassified as an equity security in 2018. 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. In 2008, the Company received 4,301 shares of Class B restricted common stock of Visa, Inc. (the “Visa Class B shares”) as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly-traded Class A common shares. This conversion will not occur until the settlement of certain litigation for which Visa is indemnified by the holders of Visa’s Class B shares. Visa funded an escrow account from its initial public offering to settle these litigation claims. However, should this escrow account be insufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing the conversion ratio of each restricted Visa Class B share to unrestricted Class A shares. Based on the transfer restriction and the uncertainty of the outcome of the Visa litigation, the 4,301 Visa Class B shares that the Company owned were carried at a zero cost basis. The Company sold the 4,301 Visa Class B shares to another financial institution in the second quarter of 2018. 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, 2018 and December 31, 2017 are summarized as follows: June 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 29,513 $ 24 $ (153 ) $ 29,384 Municipal Securities 105,137 28 (1,877 ) 103,288 Mortgage-backed Securities - Guaranteed 86,942 8 (1,960 ) 84,990 Collateralized Mortgage Obligations - Guaranteed 15,420 1 (713 ) 14,708 Collateralized Mortgage Obligations - Non Guaranteed 70,207 111 (1,058 ) 69,260 Collateralized Loan Obligations 13,044 1 (28 ) 13,017 Corporate bonds 19,592 250 (145 ) 19,697 $ 339,855 $ 423 $ (5,934 ) $ 334,344 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 20,529 $ 7 $ (13 ) $ 20,523 Municipal Securities 93,250 975 (366 ) 93,859 Mortgage-backed Securities - Guaranteed 129,314 112 (1,387 ) 128,039 Collateralized Mortgage Obligation - Guaranteed 10,559 — (257 ) 10,302 Collateralized Mortgage Obligation - Non Guaranteed 64,706 323 (336 ) 64,693 Collateralized Loan Obligations 5,555 6 (22 ) 5,539 Corporate bonds 18,925 409 (43 ) 19,291 Mutual funds 629 — (12 ) 617 $ 343,467 $ 1,832 $ (2,436 ) $ 342,863 Information pertaining to securities with gross unrealized losses at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is detailed as follows: June 30, 2018 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 19,641 $ 153 $ — $ — $ 19,641 $ 153 Municipal Securities 65,523 1,048 23,607 829 89,130 1,877 Mortgage-backed Securities - Guaranteed 54,880 1,142 25,963 818 80,843 1,960 Collateralized Mortgage Obligations - Guaranteed 4,558 181 7,839 532 12,397 713 Collateralized Mortgage Obligations - Non Guaranteed 51,648 1,004 5,230 54 56,878 1,058 Collateralized Loan Obligations 5,012 28 — — 5,012 28 Corporate Bonds 5,648 103 1,031 42 6,679 145 $ 206,910 $ 3,659 $ 63,670 $ 2,275 $ 270,580 $ 5,934 December 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 9,943 $ 11 $ 998 $ 2 $ 10,941 $ 13 Municipal Securities 11,043 61 22,982 305 34,025 366 Mortgage-backed Securities - Guaranteed 51,185 447 47,637 940 98,822 1,387 Collateralized Mortgage Obligations - Guaranteed 4,139 57 6,163 200 10,302 257 Collateralized Mortgage Obligations - Non Guaranteed 25,862 225 10,654 111 36,516 336 Collateralized loan obligations 3,520 22 — — 3,520 22 Corporate bonds 1,304 9 1,044 34 2,348 43 Mutual funds — — 617 12 617 12 $ 106,996 $ 832 $ 90,095 $ 1,604 $ 197,091 $ 2,436 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, 2018 and December 31, 2017 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, 2018 Less Than 12 More Than 12 Total U.S. Treasury & Government Agencies 11 — 11 Municipal Securities 56 24 80 Mortgage-backed Securities - Guaranteed 44 21 65 Collateralized Mortgage Obligations - Guaranteed 3 4 7 Collateralized Mortgage Obligations - Non Guaranteed 29 6 35 Collateralized loan obligation 3 — 3 Corporate bonds 7 1 8 153 56 209 December 31, 2017 Less Than 12 More Than 12 Total U.S. Treasury & Government Agencies 6 1 7 Municipal Securities 11 22 33 Mortgage-backed Securities - Guaranteed 42 34 76 Collateralized Mortgage Obligations - Guaranteed 2 3 5 Collateralized Mortgage Obligations - Non Guaranteed 16 8 24 Collateralized loan obligation 2 — 2 Corporate bonds 2 1 3 Mutual funds — 1 1 81 70 151 At June 30, 2018, the Company held 209 investment securities that were in an unrealized loss position, of which 56 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. For the three and six months ended June 30, 2018 and 2017, the Company received proceeds from sales of securities and corresponding gross realized gains and losses as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) AFS Gross proceeds $ 45,165 $ 19,518 $ 55,174 $ 36,842 Gross realized gains 56 116 77 123 Gross realized losses 991 80 1,024 80 Visa Class B Restricted Shares Gross proceeds 427 — 427 — Gross realized gains 427 — 427 — Gross realized losses — — — — Total Gross proceeds $ 45,592 $ 19,518 $ 55,601 $ 36,842 Gross realized gains 483 116 504 123 Gross realized losses 991 80 1,024 80 — — — — The Company had securities pledged against deposits and borrowings of approximately $119.1 million and $143.3 million at June 30, 2018 and December 31, 2017, respectively. The amortized cost and estimated fair value of investments in debt securities at June 30, 2018, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available-for-Sale Amortized Fair (Dollars in thousands) Over 1 year through 5 years $ 6,187 $ 6,192 After 5 years through 10 years 25,999 25,944 Over 10 years 135,100 133,250 167,286 165,386 Mortgage-backed securities 172,569 168,958 Total $ 339,855 $ 334,344

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
LOANS RECEIVABLE	NOTE 4. LOANS RECEIVABLE Loans receivable as of June 30, 2018 and December 31, 2017 are summarized as follows: June 30, December 31, 2018 2017 (Dollars in thousands) Real estate mortgage loans: One-to-four family residential $ 318,352 $ 304,107 Commercial real estate 490,849 453,725 Home equity loans and lines of credit 48,881 49,877 Residential construction 40,178 37,108 Other construction and land 97,435 101,447 Total real estate loans 995,695 946,264 Commercial and industrial 53,158 56,939 Consumer 6,058 5,700 Total commercial and consumer 59,216 62,639 Loans receivable, gross 1,054,911 1,008,903 Less: Net deferred loan fees (1,230 ) (1,431 ) Acquired loans fair value discount (1,395 ) (2,012 ) Hedged loans basis adjustment (See Note 9) (81 ) — Unamortized premium 366 389 Unamortized discount (399 ) (710 ) Loans receivable, net of deferred fees $ 1,052,172 $ 1,005,139 The Bank had $254.2 million and $231.8 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2018 and December 31, 2017, respectively. The Bank also had $98.7 million and $108.3 million of loans pledged as collateral to secure funding availability with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2018 and December 31, 2017, respectively. Included in loans receivable and other borrowings at June 30, 2018 are $4.4 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, 2018 and 2017: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Discount on purchased loans, beginning of period $ 681 $ 1,083 $ 710 $ 1,150 Accretion (282 ) (127 ) (311 ) (194 ) Discount on purchased loans, end of period $ 399 $ 956 $ 399 $ 956 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, 2018 and 2017: For the Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Fair value discount, beginning of period $ 1,746 $ 786 $ 2,012 $ 857 Accretion (351 ) (82 ) (617 ) (153 ) Fair value discount, end of period $ 1,395 $ 704 $ 1,395 $ 704

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2018
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 for the periods indicated: Three Months Ended June 30, 2018 One-to-four Family Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,770 $ 4,561 $ 575 $ 453 $ 1,108 $ 636 $ 64 $ 11,167 Provision 1 341 (26 ) — 31 28 (18 ) 357 Charge-offs — — — — — (34 ) (29 ) (63 ) Recoveries 1 — 3 — 7 3 50 64 Ending balance $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Three Months Ended June 30, 2017 One-to-four Family Commercial Home Equity and Residential Other 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 Six Months Ended June 30, 2018 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Provision (150 ) 570 (47 ) 150 94 156 (55 ) 718 Charge-offs (110 ) (35 ) (41 ) — — (34 ) (58 ) (278 ) Recoveries 14 3 24 — 27 8 122 198 Ending balance $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Six Months Ended June 30, 2017 One-to-four Commercial Home Equity and Residential Other 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 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the net investment in loans for the periods indicated: June 30, 2018 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 87 $ 43 $ — $ — $ 54 $ 9 $ — $ 193 Collectively evaluated for impairment 3,685 4,859 552 453 1,092 624 67 11,332 $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Loans Receivable Individually evaluated for impairment $ 2,954 $ 5,309 $ 313 $ — $ 2,146 $ 282 $ — $ 11,004 Collectively evaluated for impairment 314,476 483,435 48,692 40,242 95,088 53,084 6,151 1,041,168 $ 317,430 $ 488,744 $ 49,005 $ 40,242 $ 97,234 $ 53,366 $ 6,151 $ 1,052,172 December 31, 2017 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 185 $ 56 $ — $ — $ 66 $ 15 $ — $ 322 Collectively evaluated for impairment 3,833 4,308 616 303 959 488 58 10,565 $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Loans Receivable Individually evaluated for impairment $ 3,873 $ 5,714 $ 313 $ — $ 1,443 $ 291 $ — $ 11,634 Collectively evaluated for impairment 299,111 445,315 49,648 37,144 99,725 56,785 5,777 993,505 $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 Portfolio Quality Indicators The Company’s loan 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 is not exhaustive, it provides a description of the risks that management has determined are the most significant. One-to-four family residential We centrally underwrite each of our one-to-four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. Commercial real estate Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customer’s business results are significantly unfavorable versus the original projections, the ability for our loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans are secured by real property and possibly other business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in our customer having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans are highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. Home equity and lines of credit Home equity loans are often secured by first or second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render our second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lien holders 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 of such businesses. 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 as of the dates indicated: June 30, 2018 Loan Grade One-to-Four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 7,759 $ — $ — $ — $ 1,124 $ 9 $ 8,892 2 — 8,009 — — — 1,072 — 9,081 3 33,577 96,389 4,549 9,049 8,510 16,101 302 168,477 4 110,927 273,282 3,799 18,295 52,974 21,397 313 480,987 5 23,528 87,217 614 3,793 19,415 12,768 6 147,341 6 328 7,750 — — 1,825 361 — 10,264 7 1,503 4,910 — — 1,124 527 — 8,064 $ 169,863 $ 485,316 $ 8,962 $ 31,137 $ 83,848 $ 53,350 $ 630 $ 833,106 Ungraded Loan Exposure: Performing $ 146,807 $ 3,406 $ 39,645 $ 9,105 $ 13,322 $ 16 $ 5,501 $ 217,802 Nonperforming 760 22 398 — 64 — 20 1,264 Subtotal $ 147,567 $ 3,428 $ 40,043 $ 9,105 $ 13,386 $ 16 $ 5,521 $ 219,066 Total $ 317,430 $ 488,744 $ 49,005 $ 40,242 $ 97,234 $ 53,366 $ 6,151 $ 1,052,172 December 31, 2017 Loan Grade One-to-Four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,086 $ — $ — $ — $ 1,665 $ 11 $ 10,762 2 1,164 12,360 — — 904 1,272 — $ 15,700 3 34,593 78,485 5,312 7,262 9,207 15,117 377 $ 150,353 4 99,816 249,103 3,901 16,294 57,065 25,137 523 $ 451,839 5 22,639 87,745 943 3,111 18,806 13,064 8 $ 146,316 6 1,741 8,623 — — 2,055 306 — $ 12,725 7 2,112 5,371 — — 425 474 — $ 8,382 $ 162,065 $ 450,773 $ 10,156 $ 26,667 $ 88,462 $ 57,035 $ 919 $ 796,077 Ungraded Loan Exposure: Performing $ 140,013 $ 256 $ 39,685 $ 10,477 $ 12,623 $ 41 $ 4,846 $ 207,941 Nonperforming 906 — 120 — 83 — 12 1,121 Subtotal $ 140,919 $ 256 $ 39,805 $ 10,477 $ 12,706 $ 41 $ 4,858 $ 209,062 Total $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 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, 2018 30-59 Days 60-89 Days 90 Days and Over Total Current Total Loans (Dollars in thousands) One-to-four family residential $ 3,145 $ 310 $ 707 $ 4,162 $ 313,268 $ 317,430 Commercial real estate 1,549 346 307 2,202 486,542 488,744 Home equity and lines of credit 342 59 373 774 48,231 49,005 Residential construction 2 — — 2 40,240 40,242 Other construction and land 604 — 794 1,398 95,836 97,234 Commercial 418 59 62 539 52,827 53,366 Consumer 6 4 20 30 6,121 6,151 Total $ 6,066 $ 778 $ 2,263 $ 9,107 $ 1,043,065 $ 1,052,172 December 31, 2017 30-59 Days 60-89 Days 90 Days and Over Total Current Total Loans (Dollars in thousands) One-to-four family residential $ 3,941 $ 591 $ 562 $ 5,094 $ 297,890 $ 302,984 Commercial real estate 2,093 308 683 3,084 447,945 451,029 Home equity and lines of credit 308 27 120 455 49,506 49,961 Residential construction 501 — — 501 36,643 37,144 Other construction and land 1,711 21 93 1,825 99,343 101,168 Commercial 488 1 95 584 56,492 57,076 Consumer 27 25 10 62 5,715 5,777 Total $ 9,069 $ 973 $ 1,563 $ 11,605 $ 993,534 $ 1,005,139 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of June 30, 2018 and December 31, 2017. June 30, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 2,055 $ 2,182 $ — $ 2,266 $ 2,376 $ — Commercial real estate 3,664 5,912 — 4,050 6,119 — Home equity and lines of credit 313 428 — 313 428 — Other construction and land 1,304 1,551 — 571 678 — $ 7,336 $ 10,073 $ — $ 7,200 $ 9,601 $ — Loans with a valuation allowance One-to-four family residential $ 899 $ 899 $ 87 $ 1,607 $ 1,607 $ 185 Commercial real estate 1,645 1,645 43 1,664 1,664 56 Other construction and land 842 842 54 872 872 66 Commercial 282 282 9 291 291 15 $ 3,668 $ 3,668 $ 193 $ 4,434 $ 4,434 $ 322 Total One-to-four family residential $ 2,954 $ 3,081 $ 87 $ 3,873 $ 3,983 $ 185 Commercial real estate 5,309 7,557 43 5,714 7,783 56 Home equity and lines of credit 313 428 — 313 428 — Other construction and land 2,146 2,393 54 1,443 1,550 66 Commercial 282 282 9 291 291 15 $ 11,004 $ 13,741 $ 193 $ 11,634 $ 14,035 $ 322 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, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 2,181 $ 22 $ 3,145 $ 37 $ 2,201 $ 44 $ 3,167 $ 69 Commercial real estate 5,912 32 7,095 32 5,934 65 7,177 63 Home equity and lines of credit 428 4 328 13 428 8 328 24 Other construction and land 1,551 5 686 5 1,554 11 689 10 $ 10,072 $ 63 $ 11,254 $ 87 $ 10,117 $ 128 $ 11,361 $ 166 Loans with a valuation allowance One-to-four family residential $ 900 $ 12 $ 1,125 $ 12 $ 906 $ 23 $ 1,134 $ 25 Commercial real estate 1,646 23 1,684 22 1,657 45 1,695 43 Home equity and lines of credit — — 100 1 — — 100 2 Other construction and land 848 11 735 10 860 23 764 19 Commercial 282 5 300 6 287 11 304 11 $ 3,676 $ 51 $ 3,944 $ 51 $ 3,710 $ 102 $ 3,997 $ 100 Total One-to-four family residential $ 3,081 $ 34 $ 4,270 $ 49 $ 3,107 $ 67 $ 4,301 $ 94 Commercial real estate 7,558 55 8,779 54 7,591 110 8,872 106 Home equity and lines of credit 428 4 428 14 428 8 428 26 Other construction and land 2,399 16 1,421 15 2,414 34 1,453 29 Commercial 282 5 300 6 287 11 304 11 $ 13,748 $ 114 $ 15,198 $ 138 $ 13,827 $ 230 $ 15,358 $ 266 No n-performing Loans T he following table summarizes the balances of non-performing loans as of June 30, 2018 and December 31, 2017. 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, December 31, (Dollars in thousands) One-to-four family residential $ 1,170 $ 1,421 Commercial real estate 1,881 2,666 Home equity loans and lines of credit 397 120 Other construction and land 994 464 Commercial 62 95 Consumer 20 12 Non-performing loans $ 4,524 $ 4,778 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: June 30, 2018 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 2,192 $ 363 $ 2,555 Commercial real estate 3,747 1,550 5,297 Home equity and lines of credit 283 30 313 Other construction and land 1,214 201 1,415 Commercial 282 — 282 $ 7,718 $ 2,144 $ 9,862 December 31, 2017 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,452 $ — $ 3,452 Commercial real estate 3,805 1,438 5,243 Home equity and lines of credit 313 — 313 Other construction and land 1,091 370 1,461 Commercial 291 — 291 $ 8,952 $ 1,808 $ 10,760 Loan modifications that were deemed TDRs at the time of the modification during the periods presented are summarized in the table below: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) Number of Recorded Number Recorded Extended payment terms Commercial real estate 1 $ 212 1 $ 212 There were no loan modifications that were deemed TDRs at the time of the modification during the three or six month periods ended June 30, 2017. There were no TDRs that defaulted during the three month and six month periods ending June 30, 2018 and 2017 and which were modified as TDRs within the previous 12 months.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 6. GOODWILL AND OTHER INTANGIBLES The Company had $23.9 million of goodwill as of June 30, 2018 and December 31, 2017. 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 As of and for June 30, December 31, 2018 2017 Dollars in thousands Gross balance at beginning of period $ 4,840 $ 1,120 Additions from acquisitions — 3,720 Gross balance at end of period 4,840 4,840 Less accumulated amortization (917 ) (571 ) Core deposit intangible, net $ 3,923 $ 4,269 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 $0.7 million per year.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2018
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, 2018 and 2017 and the year ended December 31, 2017. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2018 2017 2017 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 196,321 $ — $ 163,784 $ — $ 179,457 $ — Interest-bearing demand 206,568 184 176,788 93 226,718 228 Money Market 342,188 873 261,127 455 308,767 1,022 Savings 53,543 29 48,687 25 50,500 53 Time Deposits 421,958 2,123 363,612 1,540 396,735 3,171 $ 1,220,578 $ 3,209 $ 1,013,998 $ 2,113 $ 1,162,177 $ 4,474 The following table indicates wholesale deposits included in the money market and time deposits amounts above: As of and for the As of and for June 30, December 31, (Dollars in thousands) 2018 2017 2017 Wholesale money market $ 45,076 $ — $ 2,020 Wholesale time deposits 67,610 38,976 39,105 $ 112,686 $ 38,976 $ 41,125

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2018
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 (dollars in thousands): June 30, 2018 December 31, 2017 Year of Maturity Balance Weighted Balance Weighted 2018 $ 155,500 2.03 % $ 205,500 1.43 % 2019 48,000 2.22 % 18,000 2.02 % 2020 10,000 2.68 % — — $ 213,500 2.10 % $ 223,500 1.48 % The Company has a $15.0 million revolving credit loan facility with NexBank SSB. The loan facility, which is secured by Entegra Bank stock, bears interest at LIBOR plus 350 basis points and is intended to be used for general corporate purposes. The Company had drawn $5.0 million on the revolving credit loan facility as of June 30, 2018 and December 31, 2017. The Company also had other borrowings of $4.4 million and $3.6 million at June 30, 2018 and December 31, 2017, respectively, which is comprised of participated loans that did not qualify for sale accounting. Interest expense on these other borrowings accrues at the same rate as the interest income recognized on the loans receivable, resulting in no effect to net income.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Interest Rate Swaps Risk Management Objective of Interest Rate Swaps The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of certain balance sheet assets and liabilities. In the normal course of business, the Company also uses derivative financial instruments to add stability to interest income or expense and to manage its exposure to movements in interest rates. The Company does not use derivatives for trading or speculative purposes and only enters into transactions that have a qualifying hedging relationship. The Company’s hedging strategies involving interest rate derivatives are classified as either “Fair Value Hedges” or “Cash Flow Hedges,” depending upon the rate characteristic of the hedged item. Fair Value Hedge : Cash Flow Hedge : Credit and Collateral Risks for Interest Rate Swaps The Company manages credit exposure on interest rate swap transactions by entering into a bilateral credit support agreement with each counterparty. The credit support agreements allow for collateralization of exposures beyond specified minimum threshold amounts. The Company’s agreements with its interest rate swap counterparties contain a provision where if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivative counterparties also include provisions that if not met, could result in the Company being declared in default. If the Company were to be declared in default, the counterparty could terminate the derivative positions and the Company and the counterparty would be required to settle their obligations under the agreements. At June 30, 2018, the Company had no derivatives in a net liability position under these agreements. Mortgage Derivatives Risk Management Objective of Mortgage Lending Activities The Company also maintains a risk management program to manage interest rate risk and pricing risk associated with its mortgage lending activities. The risk management program includes the use of forward contracts and other derivatives that are recorded in the financial statements at fair value and are used to offset changes in value of the mortgage inventory due to changes in market interest rates. As a normal part of our operations, we enter into derivative contracts to economically hedge risks associated with overall price risk related to interest rate lock commitments (“IRLCs”) and mortgage loans held-for-sale for which the fair value option has been elected. Fair value changes occur as a result of interest rate movements as well as changes in the value of the associated servicing. Derivative instruments used include forward sales commitments and IRLCs. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of mortgage loans in order to economically hedge the effect of changes in interest rates resulting from IRLCs. Credit and Collateral Risks for Mortgage Lending Activities The Company’s underlying risks are primarily related to interest rates and forward sales commitments entered into as part of its mortgage banking activities. Forward sales commitments are contracts for the delayed delivery or net settlement of an underlying instrument, such as a mortgage loan, in which the seller agrees to deliver on a specified future date, either a specified instrument at a specified price or yield or the net cash equivalent of an underlying instrument. These hedges are used to preserve the Company’s position relative to future sales of mortgage loans to third parties in an effort to minimize the volatility of the expected gain on sale from changes in interest rate and the associated pricing changes. 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 sheets (in thousands). Derivative Assets (1) Derivative Liabilities (1) June 30, December 31, June 30, December 31, Derivatives designated as hedging instruments: Interest rate swaps $ 696 $ 561 $ 50 $ — Total $ 696 $ 561 $ 50 $ — Derivatives not designated as hedging instruments: Mortgage derivatives $ 75 $ 73 $ 19 $ — Total $ 75 $ 73 $ 19 $ — (1) All derivative assets are located in “Other assets” on the consolidated balance sheets and all derivative liabilities are located in “Other liabilities” on the consolidated balance sheets. The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income: Three months ended June 30, 2018 2017 (dollars in thousands) Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 15,329 $ 3,019 $ 12,024 $ 1,802 Gain (loss) on fair value hedging relationships Interest rate swaps: Hedged items (81 ) — — — Derivatives designated as hedging instruments 74 — — — Gain (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income — 142 — (2 ) Six months ended June 30, 2018 2017 (dollars in thousands) Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 30,171 $ 5,468 $ 23,361 $ 3,527 Gain (loss) on fair value hedging relationships Interest rate swaps: Hedged items (81 ) — — — Derivatives designated as hedging instruments 74 — — — Gain (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income — 198 — (20 ) Derivatives Designated as Hedging Instrument s Fair Value Hedges The Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps, designated as fair value hedges, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments over the life of the agreements without the exchange of the underlying notional amount. The gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company entered into a pay-fixed/receive-variable interest rate swap in April 2018 with a notional amount of $25.0 million which was designated as a fair value hedge associated with the Company’s fixed rate loan program. As of June 30, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: (dollars in thousands) Carrying amount of the Cumulative amount of fair Line item in the balance sheet in which the hedged item is included June 30, 2018 June 30, 2018 Loans receivable (1) $ 109,186 $ (81 ) (1) These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2018, the amortized cost basis of the closed portfolio used in the the hedging relationship was $109.2 million, the cumulative basis adjustment associated with the hedging relationship was $(81,000), and the amount of the designated hedged items was $25.0 million . As of December 31, 2017, the Company had no interest rate swaps that were designated as fair value hedges. Cash Flow Hedges Interest rate swap contracts, designated as cash flow hedges, 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 Company entered into a new pay-fixed/receive-variable interest rate swap in June 2018 associated with the Company’s junior subordinated debt. The forward starting interest rate swap begins exchanging cash flows in 2020 when the current interest rate swap agreement expires. The structure of the swap agreements designated as cash flow hedges 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 Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 3.02%/Receive 3 month LIBOR 3 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 table below presents the effect of the Company’s derivatives in cash flow hedging relationships for the periods presented (dollars in thousands): Three months ended June 30, Six months ended June 30, Interest rate swaps Location 2018 2017 2018 2017 Amount of gain (loss) recognized in AOCI on derivatives OCI $ 8 $ (107 ) $ 210 $ (68 ) Amount of gain (loss) reclassified from AOCI into income Interest expense (142 ) 2 (198 ) 20 Amount of gain (loss) recognized in consolidated statement of comprehensive income $ (134 ) $ (105 ) $ 12 $ (48 ) Derivatives Not Designated as Hedging Instruments Mortgage Derivatives Mortgage derivative fair value assets and liabilities are described above. At June 30, 2018 and December 31, 2017, the Company had the following IRLCs and forward commitments for the future delivery of residential mortgage loans. (Dollars in thousands) As of June 30, As of December 31, Mortgage derivatives Interest rate lock commitments $ 3,912 $ 5,705 Forward sales commitment 4,500 5,705 The table below presents the effect of the Company’s derivatives not designated as hedging instruments for the periods presented: Three months ended June 30, Six months ended June 30, Interest rate products Location 2018 2017 2018 2017 (Dollars in thousands) Amount of gain (loss) recognized in income on forward commitments Noninterest income $ (51 ) $ 10 $ (41 ) $ (12 ) Amount of gain (loss) recognized in income on interest rate lock commitments Noninterest income 12 8 29 16 Amount of gain (loss) recognized in income on derivatives not designated as hedging instruments $ (39 ) $ 18 $ (12 ) $ 4

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10. INCOME TAXES The components of net deferred taxes as of June 30, 2018 and December 31, 2017 are summarized as follows: June 30, December 31, 2018 2017 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 2,519 $ 2,356 Deferred compensation and post employment benefits 1,933 1,993 Non-accrual interest 222 204 Valuation reserve for other real estate 315 346 North Carolina NOL carryover 407 475 Federal NOL carryover 2,293 3,507 AMT credit carryforward 322 645 Unrealized losses on securities 1,240 149 Loan basis differences 67 77 Deposit premium 73 104 Fixed assets 101 63 Core deposit intangible 90 52 Other 1,403 1,009 Total deferred tax assets 10,985 10,980 Deferred tax liabilities: Loan servicing rights 603 620 Goodwill 316 126 Core deposit intangible 81 89 Deferred loan costs 929 757 Prepaid expenses 7 31 Unrealized gains on securities 377 377 Derivative instruments 152 128 Other 5 21 Total deferred tax liabilities 2,470 2,149 Net Deferred tax asset $ 8,515 $ 8,831 The following table summarizes the amount and expiration dates of the Company’s unused net operating losses as of June 30, 2018: (Dollars in thousands) Amount Expiration Federal $ 10,983 2031-2036 North Carolina $ 19,224 2026-2029

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share
EARNINGS PER SHARE	NOTE 11. EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock as of the dates indicated: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share amounts) 2018 2017 2018 2017 Numerator: Net income $ 3,087 $ 2,102 $ 6,669 $ 3,402 Denominator: Weighted-average common shares outstanding - basic 6,889,743 6,456,572 6,887,838 6,460,693 Effect of dilutive securities: Stock options 97,924 46,926 97,450 38,110 Restricted stock units 50,190 45,502 48,052 41,721 Weighted-average common shares outstanding - diluted 7,037,857 6,549,000 7,033,340 6,540,524 Earnings per share - basic $ 0.45 $ 0.33 $ 0.97 $ 0.53 Earnings per share - diluted $ 0.44 $ 0.32 $ 0.95 $ 0.52 The following table presents stock options that are not deemed dilutive in calculating diluted earnings per share for the respective periods in the table above: Average Stock Price Anti-dilutive Shares Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 2018 2017 Stock options $ 28.52 $ 23.58 $ 28.54 $ 23.04 21,131 616 20,362 808

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of AOCI and changes in those components as of and for the three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, 2018 Available for Deferred Tax Cash Flow Total (Dollars in thousands) Balance, beginning of period $ (3,943 ) $ — $ 547 $ (3,396 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — — — Change in net unrealized holding losses on securities available for sale (1,358 ) — — (1,358 ) Reclassification adjustment for net securities gains realized in net income 935 — — 935 Change in unrealized holding gains on cash flow hedge 8 8 Reclassification adjustment for cash flow hedge effectiveness (142 ) (142 ) Cumulative effect of change in accounting principle — — — Income tax effect 95 — 37 132 Balance, end of period $ (4,271 ) $ — $ 450 $ (3,821 ) Three Months Ended June 30, 2017 (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 ) Six Months Ended June 30, 2018 Available Deferred Tax Cash Flow Total (Dollars in thousands) Balance, beginning of period $ (455 ) $ — $ 432 $ (23 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — — — Change in net unrealized holding losses on securities available for sale (5,863 ) — — (5,863 ) Reclassification adjustment for net securities gains realized in net income 947 — — 947 Reclassification adjustment for other than temporary impairment of securities available for sale — — — — Change in unrealized holding gains on cash flow hedge 210 210 Reclassification adjustment for cash flow effectiveness (198 ) (198 ) Cumulative effect of change in accounting principle 9 — 9 Income tax effect 1,091 — 6 1,097 Balance, end of period $ (4,271 ) $ — $ 450 $ (3,821 ) Six Months Ended June 30, 2017 (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 held to maturity — — 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 ) The following table shows the line items in the Consolidated Statements of Income affected by amounts reclassified from AOCI as of the dates indicated: Three Months Six Months (Dollars in thousands) 2018 2017 2018 2017 Income Statement Line Item Affected Available-for-sale securities Gains(losses) recognized $ (935 ) $ 36 $ (947 ) $ 43 Gain(loss) on sale of investments, net Other than temporary impairment — — — (79 ) Other than temporary impairment of AFS securities Income tax effect 210 (13 ) 213 13 Income tax expense Reclassified out of AOCI, net of tax (725 ) 23 (734 ) (23 ) Net income Cash flow hedge Interest expense (94 ) (11 ) (124 ) (28 ) Interest expense - FHLB advances Interest expense (48 ) 9 (74 ) 8 Interest expense - Junior subordinated notes Income tax effect 32 1 45 7 Income tax expense Reclassified out of AOCI, net of tax (110 ) (1 ) (153 ) (13 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance — (55 ) — (109 ) Income tax expense Total reclassified out of AOCI, net of tax $ (615 ) $ (31 ) $ (581 ) $ (119 ) Net income

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
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, 2018 (Dollars in thousands) Lines of credit $ 178,744 Standby letters of credit 1,648 $ 180,392 As of June 30, 2018, the Company had outstanding commitments to originate loans as follows: June 30, 2018 Amount Range of Rates (Dollar in thousands) Fixed $ 40,335 3.35% to 7.99% Variable 9,384 4.24% to 7.5% $ 49,719 The allowance for unfunded commitments was $0.1 million at June 30, 2018 and December 31, 2017. 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, 2018 and December 31, 2017. 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, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	NOTE 14. FAIR VALUE Overview Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 (“ASC 820”), Fair Value Measurements and Disclosures Fair Value Hierarchy Level 1 Valuation is based on inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as interest rates, yield curves observable at commonly quoted intervals, and other market-corroborated inputs. Level 3 Valuation is generated from techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company evaluates fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s valuation process. Fair Value Option ASC 820 allows companies to report selected financial assets and liabilities at fair value using the fair value option. The changes in fair value are recognized in earnings and the assets and liabilities measured under this methodology are required to be displayed separately on the balance sheet. The Company made the election in June 2018, to record mortgage loans held-for-sale at fair value under the fair value option, which allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to hedge them without the burden of complying with the requirements for hedge accounting. Financial Assets and Financial Liabilities Measured on a Recurring Basis The Company uses the following methods and assumptions in estimating the fair value of its financial assets and financial liabilities on a recurring basis: Investment Securities Available-for-Sale 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. Equity Securities Equity securities represent investments in exchange traded mutual funds which are valued by reference to quoted market prices and considered a Level 1 security. Mortgage Loans Held-for-Sale Mortgage loans held-for-sale are recorded at fair value on a recurring basis. The estimated fair value is determined using Level 3 inputs based on observable data such as the existing forward commitment terms or the current market value of similar loans. 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 IRLCs, forward sale commitments, and interest rate swaps. IRLCs 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. The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at the dates indicated, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Equity securities $ 6,696 $ — $ — $ 6,696 Securities available for sale: U.S. Treasury & Government Agencies 2,942 26,442 — 29,384 Municipal Securities — 103,288 — 103,288 Mortgage-backed Securities - Guaranteed — 84,990 — 84,990 Collateralized Mortgage Obligations - Guaranteed — 14,708 — 14,708 Collateralized Mortgage Obligations - Non Guaranteed — 69,260 — 69,260 Collateralized Loan Obligations — 13,017 13,017 Corporate bonds — 19,204 493 19,697 Total securities available for sale 2,942 330,909 493 334,344 Mortgage loans held for sale — — 1,170 1,170 Loan servicing rights — — 2,685 2,685 Interest rate swaps — 696 — 696 Mortgage derivatives — — 75 75 Total recurring assets at fair value $ 9,638 $ 331,605 $ 4,423 $ 345,666 Liabilities: Interest rate swaps $ — $ 50 $ — $ 50 Mortgage derivatives — — 19 19 Total recurring liabilities at fair value $ — $ 50 $ 19 $ 69 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Equity securities $ 6,095 $ — $ — $ 6,095 Securities available for sale: U.S. Treasury & Government Agencies 2,496 18,027 — 20,523 Municipal Securities — 93,859 — 93,859 Mortgage-backed Securities - Guaranteed — 128,039 — 128,039 Collateralized Mortgage Obligations - Guaranteed — 10,302 — 10,302 Collateralized Mortgage Obligations - NonGuaranteed — 64,693 — 64,693 Collateralized Loan Obligations 5,539 5,539 Corporate bonds — 18,799 492 19,291 Mutual funds 617 — — 617 Total securities available for sale 3,113 339,258 492 342,863 Loan servicing rights — — 2,756 2,756 Interest rate swaps — 561 — 561 Mortgage derivatives — — 73 73 Total assets $ 9,208 $ 339,819 $ 3,321 $ 352,348 There were no liabilities measured at fair value on a recurring basis as of December 31, 2017. 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, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) Balance at beginning of period $ 4,649 $ 3,740 $ 3,321 $ 4,807 AFS securities Fair value adjustment — (2 ) — (4 ) Transfer from (to) Level 2 (1,331 ) — — (1,086 ) Mortgage loans held for sale 1,170 — 1,170 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 145 141 245 292 Fair value adjustment (186 ) (61 ) (316 ) (177 ) Mortgage derivative gains(losses) included in other income (43 ) 18 (16 ) 4 Balance at end of period $ 4,404 $ 3,836 $ 4,404 $ 3,836 Financial Assets Measured on a Nonrecurring Basis The Company uses the following methods and assumptions in estimating the fair value of its financial assets on a nonrecurring basis: SBA Loans Held for Sale SBA loans held for sale are carried at the lower of cost or fair value. The fair value of SBA loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics and 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 (“REO”), 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. REO 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 cost less a valuation allowance. From time to time, impairment of SBIC is evident as a result of underlying financial review and a valuation allowance is established. SBIC carried at cost less a valuation allowance is classified as Level 3. The following table presents nonfinancial assets measured at fair value on a nonrecurring basis at the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,055 $ 2,055 Commercial real estate — — 3,664 3,664 Home equity loans and lines of credit — — 313 313 Other construction and land — — 1,304 1,304 Real estate owned: One-to-four family residential — — 265 265 Commercial real estate — — 950 950 Other construction and land — — 1,587 1,587 Total assets $ — $ — $ 10,138 $ 10,138 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,266 $ 2,266 Commercial real estate — — 4,050 4,050 Home equity loans and lines of credit — — 313 313 Other construction and land — — 571 571 Real estate owned: One-to-four family residential — — 288 288 Commercial real estate — — 544 544 Other construction and land — — 1,736 1,736 Total assets $ — $ — $ 9,768 $ 9,768 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 or December 31, 2017. Impaired loans totaling $3.7 million at June 30, 2018 and $4.4 million at December 31, 2017 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, 2018. Valuation Technique Unobservable Input General Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0% - 8% Loan servicing rights Discounted Cash Flows Prepayment speed 5% - 35% Discount rate 12% - 14% Mortgage loans held for sale External pricing model Recent trade pricing 98% - 101% Mortgage derivatives External pricing model Pull-through rate 76%-100% SBIC Indicative value provided by fund Current operations and financial condition N/A Fair Value of Financial Assets and Financial Liabilities The following table includes the estimated fair value of the Company’s financial assets and financial liabilities at the dates indicated: Fair Value Measurements at June 30, 2018 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 113,119 $ 113,119 $ 113,119 $ — $ — Equity securities 6,696 6,696 6,696 — — Securities available for sale 334,344 334,344 2,942 329,930 1,472 Loans held for sale 5,113 5,583 — 4,413 1,170 Loans receivable, net 1,052,172 1,026,470 — — 1,026,470 Other investments, at cost 12,039 12,039 — 12,039 — Accrued interest receivable 5,706 5,706 — 5,706 — Bank owned life insurance 32,543 32,543 — 32,543 — Loan servicing rights 2,685 2,685 — — 2,685 Mortgage derivatives 75 75 — — 75 Interest rate swaps 696 696 — 696 — SBIC investments 3,537 3,537 — — 3,537 Liabilities: Demand deposits 798,620 798,620 — 798,620 — Time deposits 421,958 424,440 — — 424,440 Federal Home Loan Bank advances 213,500 213,633 — 213,633 — Junior subordinated debentures 14,433 12,287 — 12,287 — Other borrowings 9,377 9,310 — 9,310 — Accrued interest payable 998 998 — 998 — Mortgage derivatives 19 19 — — 19 Interest rate swaps 50 50 — 50 — Fair Value Measurements at December 31, 2017 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 109,467 $ 109,467 $ 109,467 $ — $ — Equity securities 6,095 6,095 6,095 — — Securities available for sale 342,863 342,863 3,113 339,258 492 Loans held for sale 3,845 4,211 — 4,211 — Loans receivable, net 1,005,139 992,993 — — 992,993 Other investments, at cost 12,386 12,386 — 12,386 — Accrued interest receivable 5,405 5,405 — 5,405 — BOLI 32,150 32,150 — 32,150 — Loan servicing rights 2,756 2,756 — — 2,756 Forward sales commitments 28 28 — — 28 Interest rate lock commitments 45 45 — — 45 Derivative asset 561 561 — 561 — SBIC investments 3,491 3,491 — — 3,491 Liabilities: Demand deposits $ 765,442 $ 765,442 $ — $ 765,442 $ — Time deposits 396,735 390,806 — — 390,806 FHLB advances 223,500 223,627 — 223,627 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 8,623 8,620 — 8,620 — Accrued interest payable 935 935 — 935 —

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
REVENUE RECOGNITION	NOTE 15. Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Summary of Significant Accounting Policies ASC Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. ASC Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of ASC Topic 606. Noninterest revenue streams in-scope of ASC Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional-based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange Fees Interchange fees are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks, such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or within days of the transaction. Other Other noninterest income consists of other recurring revenue streams such as safety deposit box rental fees, revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606, for the three and six months ended June 30, 2018 and 2017. Three months ended Six months ended June 30, June 30, (dollars in thousands) 2018 2017 2018 2017 Noninterest income In-scope of Topic 606: Service charges on deposit accounts $ 405 $ 412 $ 836 $ 803 Interchange fees 271 243 519 409 Other 340 182 548 312 Noninterest income (in-scope of Topic 606) 1,016 837 1,903 1,524 Noninterest income (out-of-scope of Topic 606) 282 856 811 1,014 Total noninterest income $ 1,298 $ 1,693 $ 2,714 $ 2,538 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of ASC Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of ASC Topic 606, the Company did not capitalize any contract acquisition cost

ORGANIZATION AND BASIS OF PRE23

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
Organization And Basis Of Presentation
Organization	Organization Entegra Financial Corp. (“we,” “us,” “our,” or 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 a 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. (“Entegra Services”), which holds investment securities. 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, the valuation of acquired loans, separately identifiable intangible assets associated with mergers and acquisitions, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of deferred tax assets.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank, and Entegra Services. 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 year’s financial statements may have been reclassified to conform to the current year’s presentation. Certain investment securities were reclassified to either collateralized mortgage obligations with guarantees, or collateralized mortgage obligations with no guarantee to better align the investment securities by cash flow attributes. The reclassifications had no 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 Securities and Exchange Commission’s (the “SEC”) instructions for Quarterly Reports on 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 for the year ended December 31, 2017, filed with the SEC on March 16, 2018 (the “2017 Form 10-K”). 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.
Business Combinations	Business Combinations 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. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred.
Recently Issued Accounting Standards	Recent Accounting Standards Updates In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02 Income Statement – Reporting Comprehensive Income (Topic 220: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities 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. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Fair Value of Assets and Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In June 2016, the FASB issued amendments to ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU 2016-15 , Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). 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, 2018
As Recorded by Chattahoochee [Member]
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values	The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: As Recorded by Fair Value As Recorded by (Dollars in thousands) Chattahoochee Adjustments the Company Assets Cash and cash equivalents $ 22,625 $ — $ 22,625 Loans 159,540 (570 ) 158,970 Fixed assets 3,945 (408 ) 3,537 Accrued interest receivable 421 — 421 Core deposit intangible — 2,070 2,070 Deferred tax asset 751 (751 ) — Other assets 1,579 (8 ) 1,571 Total assets acquired $ 188,861 $ 333 $ 189,194 Liabilities Deposits $ 165,624 $ 472 $ 166,096 Accrued Interest payable 102 (14 ) 88 Other liabilities 7,790 (3,341 ) 4,449 Total liabilities assumed 173,516 (2,883 ) 170,633 Excess of assets acquired over liabilities assumed $ 15,345 $ 3,216 $ 18,561 Consideration transferred Cash $ 25,448 Common stock issued (395,666 shares) 9,872 Total fair value of consideration transferred 35,320 Goodwill $ 16,759
As Recorded by Stearns [Member]
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values	The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: (Dollars in thousands) As Recorded by Fair Value As Recorded by 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 $ 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, 2018
Investment Securities
Schedule of holdings of our trading account	The following table presents the holdings of our equity securities as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 (Dollars in thousands) Mutual funds $ 6,696 $ 6,095
Schedule of investment securities available for sale	The amortized cost and estimated fair values of AFS securities as of June 30, 2018 and December 31, 2017 are summarized as follows: June 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 29,513 $ 24 $ (153 ) $ 29,384 Municipal Securities 105,137 28 (1,877 ) 103,288 Mortgage-backed Securities - Guaranteed 86,942 8 (1,960 ) 84,990 Collateralized Mortgage Obligations - Guaranteed 15,420 1 (713 ) 14,708 Collateralized Mortgage Obligations - Non Guaranteed 70,207 111 (1,058 ) 69,260 Collateralized Loan Obligations 13,044 1 (28 ) 13,017 Corporate bonds 19,592 250 (145 ) 19,697 $ 339,855 $ 423 $ (5,934 ) $ 334,344 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 20,529 $ 7 $ (13 ) $ 20,523 Municipal Securities 93,250 975 (366 ) 93,859 Mortgage-backed Securities - Guaranteed 129,314 112 (1,387 ) 128,039 Collateralized Mortgage Obligation - Guaranteed 10,559 — (257 ) 10,302 Collateralized Mortgage Obligation - Non Guaranteed 64,706 323 (336 ) 64,693 Collateralized Loan Obligations 5,555 6 (22 ) 5,539 Corporate bonds 18,925 409 (43 ) 19,291 Mutual funds 629 — (12 ) 617 $ 343,467 $ 1,832 $ (2,436 ) $ 342,863
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income	Information pertaining to securities with gross unrealized losses at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is detailed as follows: June 30, 2018 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 19,641 $ 153 $ — $ — $ 19,641 $ 153 Municipal Securities 65,523 1,048 23,607 829 89,130 1,877 Mortgage-backed Securities - Guaranteed 54,880 1,142 25,963 818 80,843 1,960 Collateralized Mortgage Obligations - Guaranteed 4,558 181 7,839 532 12,397 713 Collateralized Mortgage Obligations - Non Guaranteed 51,648 1,004 5,230 54 56,878 1,058 Collateralized Loan Obligations 5,012 28 — — 5,012 28 Corporate Bonds 5,648 103 1,031 42 6,679 145 $ 206,910 $ 3,659 $ 63,670 $ 2,275 $ 270,580 $ 5,934 December 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 9,943 $ 11 $ 998 $ 2 $ 10,941 $ 13 Municipal Securities 11,043 61 22,982 305 34,025 366 Mortgage-backed Securities - Guaranteed 51,185 447 47,637 940 98,822 1,387 Collateralized Mortgage Obligations - Guaranteed 4,139 57 6,163 200 10,302 257 Collateralized Mortgage Obligations - Non Guaranteed 25,862 225 10,654 111 36,516 336 Collateralized loan obligations 3,520 22 — — 3,520 22 Corporate bonds 1,304 9 1,044 34 2,348 43 Mutual funds — — 617 12 617 12 $ 106,996 $ 832 $ 90,095 $ 1,604 $ 197,091 $ 2,436
Securities Gross Unrealized Losses Position	Information pertaining to the number of securities with unrealized losses is detailed in the table below. June 30, 2018 Less Than 12 More Than 12 Total U.S. Treasury & Government Agencies 11 — 11 Municipal Securities 56 24 80 Mortgage-backed Securities - Guaranteed 44 21 65 Collateralized Mortgage Obligations - Guaranteed 3 4 7 Collateralized Mortgage Obligations - Non Guaranteed 29 6 35 Collateralized loan obligation 3 — 3 Corporate bonds 7 1 8 153 56 209 December 31, 2017 Less Than 12 More Than 12 Total U.S. Treasury & Government Agencies 6 1 7 Municipal Securities 11 22 33 Mortgage-backed Securities - Guaranteed 42 34 76 Collateralized Mortgage Obligations - Guaranteed 2 3 5 Collateralized Mortgage Obligations - Non Guaranteed 16 8 24 Collateralized loan obligation 2 — 2 Corporate bonds 2 1 3 Mutual funds — 1 1 81 70 151
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, 2018 and 2017, the Company received proceeds from sales of securities and corresponding gross realized gains and losses as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) AFS Gross proceeds $ 45,165 $ 19,518 $ 55,174 $ 36,842 Gross realized gains 56 116 77 123 Gross realized losses 991 80 1,024 80 Visa Class B Restricted Shares Gross proceeds 427 — 427 — Gross realized gains 427 — 427 — Gross realized losses — — — — Total Gross proceeds $ 45,592 $ 19,518 $ 55,601 $ 36,842 Gross realized gains 483 116 504 123 Gross realized losses 991 80 1,024 80 — — — —
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity	The amortized cost and estimated fair value of investments in debt securities at June 30, 2018, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available-for-Sale Amortized Fair (Dollars in thousands) Over 1 year through 5 years $ 6,187 $ 6,192 After 5 years through 10 years 25,999 25,944 Over 10 years 135,100 133,250 167,286 165,386 Mortgage-backed securities 172,569 168,958 Total $ 339,855 $ 334,344

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2018
Loans Receivable
Loan Receivable	Loans receivable as of June 30, 2018 and December 31, 2017 are summarized as follows: June 30, December 31, 2018 2017 (Dollars in thousands) Real estate mortgage loans: One-to-four family residential $ 318,352 $ 304,107 Commercial real estate 490,849 453,725 Home equity loans and lines of credit 48,881 49,877 Residential construction 40,178 37,108 Other construction and land 97,435 101,447 Total real estate loans 995,695 946,264 Commercial and industrial 53,158 56,939 Consumer 6,058 5,700 Total commercial and consumer 59,216 62,639 Loans receivable, gross 1,054,911 1,008,903 Less: Net deferred loan fees (1,230 ) (1,431 ) Acquired loans fair value discount (1,395 ) (2,012 ) Hedged loans basis adjustment (See Note 9) (81 ) — Unamortized premium 366 389 Unamortized discount (399 ) (710 ) Loans receivable, net of deferred fees $ 1,052,172 $ 1,005,139
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, 2018 and 2017: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Discount on purchased loans, beginning of period $ 681 $ 1,083 $ 710 $ 1,150 Accretion (282 ) (127 ) (311 ) (194 ) Discount on purchased loans, end of period $ 399 $ 956 $ 399 $ 956 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, 2018 and 2017: For the Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Fair value discount, beginning of period $ 1,746 $ 786 $ 2,012 $ 857 Accretion (351 ) (82 ) (617 ) (153 ) Fair value discount, end of period $ 1,395 $ 704 $ 1,395 $ 704

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2018
Allowance For Loan Losses
Changes in Allowance for Loan Losses	The following tables present, by portfolio segment, the changes in the allowance for loan losses for the periods indicated: Three Months Ended June 30, 2018 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,770 $ 4,561 $ 575 $ 453 $ 1,108 $ 636 $ 64 $ 11,167 Provision 1 341 (26 ) — 31 28 (18 ) 357 Charge-offs — — — — — (34 ) (29 ) (63 ) Recoveries 1 — 3 — 7 3 50 64 Ending balance $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Three Months Ended June 30, 2017 One-to-four Commercial Home Equity and Residential Other 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 Six Months Ended June 30, 2018 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Provision (150 ) 570 (47 ) 150 94 156 (55 ) 718 Charge-offs (110 ) (35 ) (41 ) — — (34 ) (58 ) (278 ) Recoveries 14 3 24 — 27 8 122 198 Ending balance $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Six Months Ended June 30, 2017 One-to-four Commercial Home Equity and Residential Other 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
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 for the periods indicated: June 30, 2018 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 87 $ 43 $ — $ — $ 54 $ 9 $ — $ 193 Collectively evaluated for impairment 3,685 4,859 552 453 1,092 624 67 11,332 $ 3,772 $ 4,902 $ 552 $ 453 $ 1,146 $ 633 $ 67 $ 11,525 Loans Receivable Individually evaluated for impairment $ 2,954 $ 5,309 $ 313 $ — $ 2,146 $ 282 $ — $ 11,004 Collectively evaluated for impairment 314,476 483,435 48,692 40,242 95,088 53,084 6,151 1,041,168 $ 317,430 $ 488,744 $ 49,005 $ 40,242 $ 97,234 $ 53,366 $ 6,151 $ 1,052,172 December 31, 2017 One-to-four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 185 $ 56 $ — $ — $ 66 $ 15 $ — $ 322 Collectively evaluated for impairment 3,833 4,308 616 303 959 488 58 10,565 $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Loans Receivable Individually evaluated for impairment $ 3,873 $ 5,714 $ 313 $ — $ 1,443 $ 291 $ — $ 11,634 Collectively evaluated for impairment 299,111 445,315 49,648 37,144 99,725 56,785 5,777 993,505 $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139
Credit Risk Profile by Rating	The following tables present the recorded investment in gross loans by loan grade as of the dates indicated: June 30, 2018 Loan Grade One-to-Four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 7,759 $ — $ — $ — $ 1,124 $ 9 $ 8,892 2 — 8,009 — — — 1,072 — 9,081 3 33,577 96,389 4,549 9,049 8,510 16,101 302 168,477 4 110,927 273,282 3,799 18,295 52,974 21,397 313 480,987 5 23,528 87,217 614 3,793 19,415 12,768 6 147,341 6 328 7,750 — — 1,825 361 — 10,264 7 1,503 4,910 — — 1,124 527 — 8,064 $ 169,863 $ 485,316 $ 8,962 $ 31,137 $ 83,848 $ 53,350 $ 630 $ 833,106 Ungraded Loan Exposure: Performing $ 146,807 $ 3,406 $ 39,645 $ 9,105 $ 13,322 $ 16 $ 5,501 $ 217,802 Nonperforming 760 22 398 — 64 — 20 1,264 Subtotal $ 147,567 $ 3,428 $ 40,043 $ 9,105 $ 13,386 $ 16 $ 5,521 $ 219,066 Total $ 317,430 $ 488,744 $ 49,005 $ 40,242 $ 97,234 $ 53,366 $ 6,151 $ 1,052,172 December 31, 2017 Loan Grade One-to-Four Commercial Home Equity and Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,086 $ — $ — $ — $ 1,665 $ 11 $ 10,762 2 1,164 12,360 — — 904 1,272 — $ 15,700 3 34,593 78,485 5,312 7,262 9,207 15,117 377 $ 150,353 4 99,816 249,103 3,901 16,294 57,065 25,137 523 $ 451,839 5 22,639 87,745 943 3,111 18,806 13,064 8 $ 146,316 6 1,741 8,623 — — 2,055 306 — $ 12,725 7 2,112 5,371 — — 425 474 — $ 8,382 $ 162,065 $ 450,773 $ 10,156 $ 26,667 $ 88,462 $ 57,035 $ 919 $ 796,077 Ungraded Loan Exposure: Performing $ 140,013 $ 256 $ 39,685 $ 10,477 $ 12,623 $ 41 $ 4,846 $ 207,941 Nonperforming 906 — 120 — 83 — 12 1,121 Subtotal $ 140,919 $ 256 $ 39,805 $ 10,477 $ 12,706 $ 41 $ 4,858 $ 209,062 Total $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139
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, 2018 30-59 Days 60-89 Days 90 Days and Over Total Current Total Loans (Dollars in thousands) One-to-four family residential $ 3,145 $ 310 $ 707 $ 4,162 $ 313,268 $ 317,430 Commercial real estate 1,549 346 307 2,202 486,542 488,744 Home equity and lines of credit 342 59 373 774 48,231 49,005 Residential construction 2 — — 2 40,240 40,242 Other construction and land 604 — 794 1,398 95,836 97,234 Commercial 418 59 62 539 52,827 53,366 Consumer 6 4 20 30 6,121 6,151 Total $ 6,066 $ 778 $ 2,263 $ 9,107 $ 1,043,065 $ 1,052,172 December 31, 2017 30-59 Days 60-89 Days 90 Days and Over Total Current Total Loans (Dollars in thousands) One-to-four family residential $ 3,941 $ 591 $ 562 $ 5,094 $ 297,890 $ 302,984 Commercial real estate 2,093 308 683 3,084 447,945 451,029 Home equity and lines of credit 308 27 120 455 49,506 49,961 Residential construction 501 — — 501 36,643 37,144 Other construction and land 1,711 21 93 1,825 99,343 101,168 Commercial 488 1 95 584 56,492 57,076 Consumer 27 25 10 62 5,715 5,777 Total $ 9,069 $ 973 $ 1,563 $ 11,605 $ 993,534 $ 1,005,139
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, 2018 and December 31, 2017. June 30, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 2,055 $ 2,182 $ — $ 2,266 $ 2,376 $ — Commercial real estate 3,664 5,912 — 4,050 6,119 — Home equity and lines of credit 313 428 — 313 428 — Other construction and land 1,304 1,551 — 571 678 — $ 7,336 $ 10,073 $ — $ 7,200 $ 9,601 $ — Loans with a valuation allowance One-to-four family residential $ 899 $ 899 $ 87 $ 1,607 $ 1,607 $ 185 Commercial real estate 1,645 1,645 43 1,664 1,664 56 Other construction and land 842 842 54 872 872 66 Commercial 282 282 9 291 291 15 $ 3,668 $ 3,668 $ 193 $ 4,434 $ 4,434 $ 322 Total One-to-four family residential $ 2,954 $ 3,081 $ 87 $ 3,873 $ 3,983 $ 185 Commercial real estate 5,309 7,557 43 5,714 7,783 56 Home equity and lines of credit 313 428 — 313 428 — Other construction and land 2,146 2,393 54 1,443 1,550 66 Commercial 282 282 9 291 291 15 $ 11,004 $ 13,741 $ 193 $ 11,634 $ 14,035 $ 322 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, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest (Dollars in thousands) (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 2,181 $ 22 $ 3,145 $ 37 $ 2,201 $ 44 $ 3,167 $ 69 Commercial real estate 5,912 32 7,095 32 5,934 65 7,177 63 Home equity and lines of credit 428 4 328 13 428 8 328 24 Other construction and land 1,551 5 686 5 1,554 11 689 10 $ 10,072 $ 63 $ 11,254 $ 87 $ 10,117 $ 128 $ 11,361 $ 166 Loans with a valuation allowance One-to-four family residential $ 900 $ 12 $ 1,125 $ 12 $ 906 $ 23 $ 1,134 $ 25 Commercial real estate 1,646 23 1,684 22 1,657 45 1,695 43 Home equity and lines of credit — — 100 1 — — 100 2 Other construction and land 848 11 735 10 860 23 764 19 Commercial 282 5 300 6 287 11 304 11 $ 3,676 $ 51 $ 3,944 $ 51 $ 3,710 $ 102 $ 3,997 $ 100 Total One-to-four family residential $ 3,081 $ 34 $ 4,270 $ 49 $ 3,107 $ 67 $ 4,301 $ 94 Commercial real estate 7,558 55 8,779 54 7,591 110 8,872 106 Home equity and lines of credit 428 4 428 14 428 8 428 26 Other construction and land 2,399 16 1,421 15 2,414 34 1,453 29 Commercial 282 5 300 6 287 11 304 11 $ 13,748 $ 114 $ 15,198 $ 138 $ 13,827 $ 230 $ 15,358 $ 266
Financing Receivables on Nonaccrual Status	T he following table summarizes the balances of non-performing loans as of June 30, 2018 and December 31, 2017. June 30, December 31, (Dollars in thousands) One-to-four family residential $ 1,170 $ 1,421 Commercial real estate 1,881 2,666 Home equity loans and lines of credit 397 120 Other construction and land 994 464 Commercial 62 95 Consumer 20 12 Non-performing loans $ 4,524 $ 4,778
Summary of TDR Loans	The following tables summarize TDR loans as of the dates indicated: June 30, 2018 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 2,192 $ 363 $ 2,555 Commercial real estate 3,747 1,550 5,297 Home equity and lines of credit 283 30 313 Other construction and land 1,214 201 1,415 Commercial 282 — 282 $ 7,718 $ 2,144 $ 9,862 December 31, 2017 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,452 $ — $ 3,452 Commercial real estate 3,805 1,438 5,243 Home equity and lines of credit 313 — 313 Other construction and land 1,091 370 1,461 Commercial 291 — 291 $ 8,952 $ 1,808 $ 10,760 Loan modifications that were deemed TDRs at the time of the modification during the periods presented are summarized in the table below: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) Number of Recorded Number Recorded Extended payment terms Commercial real estate 1 $ 212 1 $ 212

GOODWILL AND OTHER INTANGIBLE28

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of gross carrying amounts and accumulated amortization of core deposit intangibles	The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: As of and for the As of and for June 30, December 31, 2018 2017 Dollars in thousands Gross balance at beginning of period $ 4,840 $ 1,120 Additions from acquisitions — 3,720 Gross balance at end of period 4,840 4,840 Less accumulated amortization (917 ) (571 ) Core deposit intangible, net $ 3,923 $ 4,269

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Deposits Tables Abstract
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, 2018 and 2017 and the year ended December 31, 2017. As of and for the As of and for the Year Ended Six Months Ended June 30, December 31, 2018 2017 2017 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 196,321 $ — $ 163,784 $ — $ 179,457 $ — Interest-bearing demand 206,568 184 176,788 93 226,718 228 Money Market 342,188 873 261,127 455 308,767 1,022 Savings 53,543 29 48,687 25 50,500 53 Time Deposits 421,958 2,123 363,612 1,540 396,735 3,171 $ 1,220,578 $ 3,209 $ 1,013,998 $ 2,113 $ 1,162,177 $ 4,474
Summary of wholesale deposits included in the money market and time deposits amounts	The following table indicates wholesale deposits included in the money market and time deposits amounts above: As of and for the As of and for June 30, December 31, (Dollars in thousands) 2018 2017 2017 Wholesale money market $ 45,076 $ — $ 2,020 Wholesale time deposits 67,610 38,976 39,105 $ 112,686 $ 38,976 $ 41,125

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2018
Borrowings
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 (dollars in thousands): June 30, 2018 December 31, 2017 Year of Maturity Balance Weighted Balance Weighted 2018 $ 155,500 2.03 % $ 205,500 1.43 % 2019 48,000 2.22 % 18,000 2.02 % 2020 10,000 2.68 % — — $ 213,500 2.10 % $ 223,500 1.48 %

DERIVATIVE FINANCIAL INSTRUME31

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Financial Instruments And Hedging Activities
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 sheets (in thousands). Derivative Assets (1) Derivative Liabilities (1) June 30, December 31, June 30, December 31, Derivatives designated as hedging instruments: Interest rate swaps $ 696 $ 561 $ 50 $ — Total $ 696 $ 561 $ 50 $ — Derivatives not designated as hedging instruments: Mortgage derivatives $ 75 $ 73 $ 19 $ — Total $ 75 $ 73 $ 19 $ — (1) All derivative assets are located in “Other assets” on the consolidated balance sheets and all derivative liabilities are located in “Other liabilities” on the consolidated balance sheets.
Schedule of Cash Flow Hedges Included in Statement of Income	The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income: Three months ended June 30, 2018 2017 (dollars in thousands) Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 15,329 $ 3,019 $ 12,024 $ 1,802 Gain (loss) on fair value hedging relationships Interest rate swaps: Hedged items (81 ) — — — Derivatives designated as hedging instruments 74 — — — Gain (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income — 142 — (2 ) Six months ended June 30, 2018 2017 (dollars in thousands) Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 30,171 $ 5,468 $ 23,361 $ 3,527 Gain (loss) on fair value hedging relationships Interest rate swaps: Hedged items (81 ) — — — Derivatives designated as hedging instruments 74 — — — Gain (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income — 198 — (20 )
Schedule of Fair value Hedges recorded on the balance sheet related to cumulative basis adjustments	As of June 30, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: (dollars in thousands) Carrying amount of the Cumulative amount of fair Line item in the balance sheet in which the hedged item is included June 30, 2018 June 30, 2018 Loans receivable (1) $ 109,186 $ (81 ) (1) These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2018, the amortized cost basis of the closed portfolio used in the the hedging relationship was $109.2 million, the cumulative basis adjustment associated with the hedging relationship was $(81,000), and the amount of the designated hedged items was $25.0 million .
Schedule of Structure of the Swap Agreements	The structure of the swap agreements designated as cash flow hedges 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 Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 3.02%/Receive 3 month LIBOR 3 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 derivatives in cash flow hedging	The table below presents the effect of the Company’s derivatives in cash flow hedging relationships for the periods presented (dollars in thousands): Three months ended June 30, Six months ended June 30, Interest rate swaps Location 2018 2017 2018 2017 Amount of gain (loss) recognized in AOCI on derivatives OCI $ 8 $ (107 ) $ 210 $ (68 ) Amount of gain (loss) reclassified from AOCI into income Interest expense (142 ) 2 (198 ) 20 Amount of gain (loss) recognized in consolidated statement of comprehensive income $ (134 ) $ (105 ) $ 12 $ (48
Schedule of Company's IRLCs and forward commitments for the future delivery of residential mortgage loans	At June 30, 2018 and December 31, 2017, the Company had the following IRLCs and forward commitments for the future delivery of residential mortgage loans. (Dollars in thousands) As of June 30, As of December 31, Mortgage derivatives Interest rate lock commitments $ 3,912 $ 5,705 Forward sales commitment 4,500 5,705 The table below presents the effect of the Company’s derivatives not designated as hedging instruments for the periods presented: Three months ended June 30, Six months ended June 30, Interest rate products Location 2018 2017 2018 2017 (Dollars in thousands) Amount of gain (loss) recognized in income on forward commitments Noninterest income $ (51 ) $ 10 $ (41 ) $ (12 ) Amount of gain (loss) recognized in income on interest rate lock commitments Noninterest income 12 8 29 16 Amount of gain (loss) recognized in income on derivatives not designated as hedging instruments $ (39 ) $ 18 $ (12 ) $ 4

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2018
Income Taxes
Schedule of Deferred Tax Assets and Liabilities	The components of net deferred taxes as of June 30, 2018 and December 31, 2017 are summarized as follows: June 30, December 31, 2018 2017 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 2,519 $ 2,356 Deferred compensation and post employment benefits 1,933 1,993 Non-accrual interest 222 204 Valuation reserve for other real estate 315 346 North Carolina NOL carryover 407 475 Federal NOL carryover 2,293 3,507 AMT credit carryforward 322 645 Unrealized losses on securities 1,240 149 Loan basis differences 67 77 Deposit premium 73 104 Fixed assets 101 63 Core deposit intangible 90 52 Other 1,403 1,009 Total deferred tax assets 10,985 10,980 Deferred tax liabilities: Loan servicing rights 603 620 Goodwill 316 126 Core deposit intangible 81 89 Deferred loan costs 929 757 Prepaid expenses 7 31 Unrealized gains on securities 377 377 Derivative instruments 152 128 Other 5 21 Total deferred tax liabilities 2,470 2,149 Net Deferred tax asset $ 8,515 $ 8,831
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 30, 2018: (Dollars in thousands) Amount Expiration Federal $ 10,983 2031-2036 North Carolina $ 19,224 2026-2029

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Earnings Per Share Tables Abstract
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 as of the dates indicated: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share amounts) 2018 2017 2018 2017 Numerator: Net income $ 3,087 $ 2,102 $ 6,669 $ 3,402 Denominator: Weighted-average common shares outstanding - basic 6,889,743 6,456,572 6,887,838 6,460,693 Effect of dilutive securities: Stock options 97,924 46,926 97,450 38,110 Restricted stock units 50,190 45,502 48,052 41,721 Weighted-average common shares outstanding - diluted 7,037,857 6,549,000 7,033,340 6,540,524 Earnings per share - basic $ 0.45 $ 0.33 $ 0.97 $ 0.53 Earnings per share - diluted $ 0.44 $ 0.32 $ 0.95 $ 0.52 The following table presents stock options that are not deemed dilutive in calculating diluted earnings per share for the respective periods in the table above: Average Stock Price Anti-dilutive Shares Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 2018 2017 Stock options $ 28.52 $ 23.58 $ 28.54 $ 23.04 21,131 616 20,362 808

ACCUMULATED OTHER COMPREHENSI34

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income Loss
Schedule of Accumulated other comprehensive income (loss)	The following table summarizes the components of AOCI and changes in those components as of and for the three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, 2018 Available for Deferred Tax Cash Flow Total (Dollars in thousands) Balance, beginning of period $ (3,943 ) $ — $ 547 $ (3,396 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — — — Change in net unrealized holding losses on securities available for sale (1,358 ) — — (1,358 ) Reclassification adjustment for net securities gains realized in net income 935 — — 935 Change in unrealized holding gains on cash flow hedge 8 8 Reclassification adjustment for cash flow hedge effectiveness (142 ) (142 ) Cumulative effect of change in accounting principle — — — Income tax effect 95 — 37 132 Balance, end of period $ (4,271 ) $ — $ 450 $ (3,821 ) Three Months Ended June 30, 2017 (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 ) Six Months Ended June 30, 2018 Available Deferred Tax Cash Flow Total (Dollars in thousands) Balance, beginning of period $ (455 ) $ — $ 432 $ (23 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — — — Change in net unrealized holding losses on securities available for sale (5,863 ) — — (5,863 ) Reclassification adjustment for net securities gains realized in net income 947 — — 947 Reclassification adjustment for other than temporary impairment of securities available for sale — — — — Change in unrealized holding gains on cash flow hedge 210 210 Reclassification adjustment for cash flow effectiveness (198 ) (198 ) Cumulative effect of change in accounting principle 9 — 9 Income tax effect 1,091 — 6 1,097 Balance, end of period $ (4,271 ) $ — $ 450 $ (3,821 ) Six Months Ended June 30, 2017 (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 held to maturity — — 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 )
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 AOCI as of the dates indicated: Three Months Six Months (Dollars in thousands) 2018 2017 2018 2017 Income Statement Line Item Affected Available-for-sale securities Gains(losses) recognized $ (935 ) $ 36 $ (947 ) $ 43 Gain(loss) on sale of investments, net Other than temporary impairment — — — (79 ) Other than temporary impairment of AFS securities Income tax effect 210 (13 ) 213 13 Income tax expense Reclassified out of AOCI, net of tax (725 ) 23 (734 ) (23 ) Net income Cash flow hedge Interest expense (94 ) (11 ) (124 ) (28 ) Interest expense - FHLB advances Interest expense (48 ) 9 (74 ) 8 Interest expense - Junior subordinated notes Income tax effect 32 1 45 7 Income tax expense Reclassified out of AOCI, net of tax (110 ) (1 ) (153 ) (13 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance — (55 ) — (109 ) Income tax expense Total reclassified out of AOCI, net of tax $ (615 ) $ (31 ) $ (581 ) $ (119 ) Net income

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies
Schedule of commitments to fund lines of credit	The following summarizes the Company’s approximate commitments to extend credit: June 30, 2018 (Dollars in thousands) Lines of credit $ 178,744 Standby letters of credit 1,648 $ 180,392
Schedule of Outstanding commitments to originate mortgage loans	As of June 30, 2018, the Company had outstanding commitments to originate loans as follows: June 30, 2018 Amount Range of Rates (Dollar in thousands) Fixed $ 40,335 3.35% to 7.99% Variable 9,384 4.24% to 7.5% $ 49,719

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures
Summary of assets and liabilities measured at fair value on a recurring basis	The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at the dates indicated, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Equity securities $ 6,696 $ — $ — $ 6,696 Securities available for sale: U.S. Treasury & Government Agencies 2,942 26,442 — 29,384 Municipal Securities — 103,288 — 103,288 Mortgage-backed Securities - Guaranteed — 84,990 — 84,990 Collateralized Mortgage Obligations - Guaranteed — 14,708 — 14,708 Collateralized Mortgage Obligations - Non Guaranteed — 69,260 — 69,260 Collateralized Loan Obligations — 13,017 13,017 Corporate bonds — 19,204 493 19,697 Total securities available for sale 2,942 330,909 493 334,344 Mortgage loans held for sale — — 1,170 1,170 Loan servicing rights — — 2,685 2,685 Interest rate swaps — 696 — 696 Mortgage derivatives — — 75 75 Total recurring assets at fair value $ 9,638 $ 331,605 $ 4,423 $ 345,666 Liabilities: Interest rate swaps $ — $ 50 $ — $ 50 Mortgage derivatives — — 19 19 Total recurring liabilities at fair value $ — $ 50 $ 19 $ 69 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Equity securities $ 6,095 $ — $ — $ 6,095 Securities available for sale: U.S. Treasury & Government Agencies 2,496 18,027 — 20,523 Municipal Securities — 93,859 — 93,859 Mortgage-backed Securities - Guaranteed — 128,039 — 128,039 Collateralized Mortgage Obligations - Guaranteed — 10,302 — 10,302 Collateralized Mortgage Obligations - NonGuaranteed — 64,693 — 64,693 Collateralized Loan Obligations 5,539 5,539 Corporate bonds — 18,799 492 19,291 Mutual funds 617 — — 617 Total securities available for sale 3,113 339,258 492 342,863 Loan servicing rights — — 2,756 2,756 Interest rate swaps — 561 — 561 Mortgage derivatives — — 73 73 Total assets $ 9,208 $ 339,819 $ 3,321 $ 352,348
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, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) Balance at beginning of period $ 4,649 $ 3,740 $ 3,321 $ 4,807 AFS securities Fair value adjustment — (2 ) — (4 ) Transfer from (to) Level 2 (1,331 ) — — (1,086 ) Mortgage loans held for sale 1,170 — 1,170 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 145 141 245 292 Fair value adjustment (186 ) (61 ) (316 ) (177 ) Mortgage derivative gains(losses) included in other income (43 ) 18 (16 ) 4 Balance at end of period $ 4,404 $ 3,836 $ 4,404 $ 3,836
Summary of assets and liabilities measured at a fair value on a nonrecurring basis	The following table presents nonfinancial assets measured at fair value on a nonrecurring basis at the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,055 $ 2,055 Commercial real estate — — 3,664 3,664 Home equity loans and lines of credit — — 313 313 Other construction and land — — 1,304 1,304 Real estate owned: One-to-four family residential — — 265 265 Commercial real estate — — 950 950 Other construction and land — — 1,587 1,587 Total assets $ — $ — $ 10,138 $ 10,138 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,266 $ 2,266 Commercial real estate — — 4,050 4,050 Home equity loans and lines of credit — — 313 313 Other construction and land — — 571 571 Real estate owned: One-to-four family residential — — 288 288 Commercial real estate — — 544 544 Other construction and land — — 1,736 1,736 Total assets $ — $ — $ 9,768 $ 9,768
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, 2018. Valuation Technique Unobservable Input General Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0% - 8% Loan servicing rights Discounted Cash Flows Prepayment speed 5% - 35% Discount rate 12% - 14% Mortgage loans held for sale External pricing model Recent trade pricing 98% - 101% Mortgage derivatives External pricing model Pull-through rate 76%-100% SBIC Indicative value provided by fund Current operations and financial condition N/A
Schedule of carrying amount and estimated fair value of the Company's financial instruments	The following table includes the estimated fair value of the Company’s financial assets and financial liabilities at the dates indicated: Fair Value Measurements at June 30, 2018 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 113,119 $ 113,119 $ 113,119 $ — $ — Equity securities 6,696 6,696 6,696 — — Securities available for sale 334,344 334,344 2,942 329,930 1,472 Loans held for sale 5,113 5,583 — 4,413 1,170 Loans receivable, net 1,052,172 1,026,470 — — 1,026,470 Other investments, at cost 12,039 12,039 — 12,039 — Accrued interest receivable 5,706 5,706 — 5,706 — Bank owned life insurance 32,543 32,543 — 32,543 — Loan servicing rights 2,685 2,685 — — 2,685 Mortgage derivatives 75 75 — — 75 Interest rate swaps 696 696 — 696 — SBIC investments 3,537 3,537 — — 3,537 Liabilities: Demand deposits 798,620 798,620 — 798,620 — Time deposits 421,958 424,440 — — 424,440 Federal Home Loan Bank advances 213,500 213,633 — 213,633 — Junior subordinated debentures 14,433 12,287 — 12,287 — Other borrowings 9,377 9,310 — 9,310 — Accrued interest payable 998 998 — 998 — Mortgage derivatives 19 19 — — 19 Interest rate swaps 50 50 — 50 — Fair Value Measurements at December 31, 2017 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 109,467 $ 109,467 $ 109,467 $ — $ — Equity securities 6,095 6,095 6,095 — — Securities available for sale 342,863 342,863 3,113 339,258 492 Loans held for sale 3,845 4,211 — 4,211 — Loans receivable, net 1,005,139 992,993 — — 992,993 Other investments, at cost 12,386 12,386 — 12,386 — Accrued interest receivable 5,405 5,405 — 5,405 — BOLI 32,150 32,150 — 32,150 — Loan servicing rights 2,756 2,756 — — 2,756 Forward sales commitments 28 28 — — 28 Interest rate lock commitments 45 45 — — 45 Derivative asset 561 561 — 561 — SBIC investments 3,491 3,491 — — 3,491 Liabilities: Demand deposits $ 765,442 $ 765,442 $ — $ 765,442 $ — Time deposits 396,735 390,806 — — 390,806 FHLB advances 223,500 223,627 — 223,627 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 8,623 8,620 — 8,620 — Accrued interest payable 935 935 — 935 —

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative)	Dec. 31, 2017
Disclosure Organization Details Narrative Abstract
Ownership percentage in Macon Capital Trust I	100.00%

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	Oct. 02, 2017	Jun. 30, 2018	Dec. 31, 2017	Feb. 24, 2017
Liabilities
Goodwill		$ 23,903	$ 23,903
Chattahoochee Bank of Georgia [Member]
Assets
Cash and cash equivalents	$ 22,625
Loans	159,540
Fixed assets	3,945
Accrued interest receivable	421
Core deposit intangible
Deferred tax asset	751
Other assets	1,579
Total assets acquired	188,861
Liabilities
Deposits	165,624
Accrued interest payable	102
Other liabilities	7,790
Total liabilities assumed	173,516
Excess of assets acquired over liabilities assumed	15,345
Cash paid for merger	$ 25,448
Equity consideration (in shares)	9,872
Aggregate Merger Consideration	$ 35,320
Fair Value Adjustments
Assets
Cash and cash equivalents
Loans	(570)
Fixed assets	(408)
Accrued interest receivable
Premises and equipment				132
Core deposit intangible	2,070			1,650
Deferred tax asset	(751)
Other assets	(8)
Total assets acquired	333			1,782
Liabilities
Deposits	472			1,062
Accrued interest payable	(14)
Other liabilities	(3,341)
Total liabilities assumed	(2,883)			1,062
Excess of assets acquired over liabilities assumed	3,216			720
As recorded by the Company [Member]
Assets
Cash and cash equivalents	22,625			1,258
Loans	158,970			7
Fixed assets	3,537
Accrued interest receivable	421
Premises and equipment				1,082
Core deposit intangible	2,070			1,650
Deferred tax asset
Other assets	1,571
Total assets acquired	189,194			3,997
Liabilities
Deposits	166,096			154,184
Accrued interest payable	88
Other liabilities	4,449			321
Total liabilities assumed	170,633			154,505
Excess of assets acquired over liabilities assumed	18,561			150,508
Cash received to settle the acquisition				145,492
Goodwill	$ 16,759			5,016
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
Liabilities
Deposits				153,122
Other liabilities				321
Total liabilities assumed				153,443
Excess of assets acquired over liabilities assumed				$ 151,228

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Trading Securities Cash	$ 6,696	$ 6,095
Amortized Cost	339,855	343,467
Gross Unrealized Gains	423	1,832
Gross Unrealized Losses	(5,934)	(2,436)
Estimated fair value	334,344	342,863
U.S. Government Agencies [Member]
Amortized Cost	29,513	20,529
Gross Unrealized Gains	24	7
Gross Unrealized Losses	(153)	(13)
Estimated fair value	29,384	20,523
Municipal Securities [Member]
Amortized Cost	105,137	93,250
Gross Unrealized Gains	28	975
Gross Unrealized Losses	(1,877)	(366)
Estimated fair value	103,288	93,859
Mortgage-backed Securities - Guaranteed [Member]
Amortized Cost	86,942	129,314
Gross Unrealized Gains	8	112
Gross Unrealized Losses	(1,960)	(1,387)
Estimated fair value	84,990	128,039
Collateralized Mortgage Obligations - Guaranteed [Member]
Amortized Cost	15,420	10,559
Gross Unrealized Gains	1
Gross Unrealized Losses	(713)	(257)
Estimated fair value	14,708	10,302
Collateralized Mortgage Obligations - Non Guaranteed [Member]
Amortized Cost	70,207	64,706
Gross Unrealized Gains	111	323
Gross Unrealized Losses	(1,058)	(336)
Estimated fair value	69,260	64,693
Mortgage-backed Securities, Collateralized mortgage obligations [Member]
Amortized Cost	13,044	5,555
Gross Unrealized Gains	1	6
Gross Unrealized Losses	(28)	(22)
Estimated fair value	13,017	5,539
Corporate debt securities [Member]
Amortized Cost	19,592	18,925
Gross Unrealized Gains	250	409
Gross Unrealized Losses	(145)	(43)
Estimated fair value	$ 19,697	19,291
Mutual Funds [Member]
Amortized Cost		629
Gross Unrealized Gains
Gross Unrealized Losses		(12)
Estimated fair value		$ 617

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Held to maturity, Less Than 12 Months Fair Value	$ 153	$ 81
Held to maturity, Over 12 Months Fair Value	56	70
Held to maturity, Fair Value	209	151
Available for sale, Less Than 12 Months Fair Value	206,910	106,996
Available for sale, Less Than 12 Months Unrealized Losses	3,659	832
Available for sale, Over 12 Months Fair Value	63,670	90,095
Available for sale, Over 12 Months Unrealized Losses	2,275	1,604
Available for sale, Fair Value	270,580	197,091
Available for sale, Unrealized Losses	5,934	2,436
U.S. Government Agencies [Member]
Held to maturity, Less Than 12 Months Fair Value	11	6
Held to maturity, Over 12 Months Fair Value		1
Held to maturity, Fair Value	11	7
Available for sale, Less Than 12 Months Fair Value	19,641	9,943
Available for sale, Less Than 12 Months Unrealized Losses	153	11
Available for sale, Over 12 Months Fair Value		998
Available for sale, Over 12 Months Unrealized Losses		2
Available for sale, Fair Value	19,641	10,941
Available for sale, Unrealized Losses	153	13
Municipal Securities [Member]
Held to maturity, Less Than 12 Months Fair Value	56	11
Held to maturity, Over 12 Months Fair Value	24	22
Held to maturity, Fair Value	80	33
Available for sale, Less Than 12 Months Fair Value	65,523	11,043
Available for sale, Less Than 12 Months Unrealized Losses	1,048	61
Available for sale, Over 12 Months Fair Value	23,607	22,982
Available for sale, Over 12 Months Unrealized Losses	829	305
Available for sale, Fair Value	89,130	34,025
Available for sale, Unrealized Losses	1,877	366
Mortgage-backed Securities - Guaranteed [Member]
Held to maturity, Less Than 12 Months Fair Value	44	42
Held to maturity, Over 12 Months Fair Value	21	34
Held to maturity, Fair Value	65	76
Available for sale, Less Than 12 Months Fair Value	54,880	51,185
Available for sale, Less Than 12 Months Unrealized Losses	1,142	447
Available for sale, Over 12 Months Fair Value	25,963	47,637
Available for sale, Over 12 Months Unrealized Losses	818	940
Available for sale, Fair Value	80,843	98,822
Available for sale, Unrealized Losses	1,960	1,387
Collateralized Mortgage Obligations - Guaranteed [Member]
Held to maturity, Less Than 12 Months Fair Value	3	2
Held to maturity, Over 12 Months Fair Value	4	3
Held to maturity, Fair Value	7	5
Available for sale, Less Than 12 Months Fair Value	4,558	4,139
Available for sale, Less Than 12 Months Unrealized Losses	181	57
Available for sale, Over 12 Months Fair Value	7,839	6,163
Available for sale, Over 12 Months Unrealized Losses	532	200
Available for sale, Fair Value	12,397	10,302
Available for sale, Unrealized Losses	713	257
Collateralized Mortgage Obligations - Non Guaranteed [Member]
Held to maturity, Less Than 12 Months Fair Value	29	16
Held to maturity, Over 12 Months Fair Value	6	8
Held to maturity, Fair Value	35	24
Available for sale, Less Than 12 Months Fair Value	51,648	25,862
Available for sale, Less Than 12 Months Unrealized Losses	1,004	225
Available for sale, Over 12 Months Fair Value	5,230	10,654
Available for sale, Over 12 Months Unrealized Losses	54	111
Available for sale, Fair Value	56,878	36,516
Available for sale, Unrealized Losses	1,058	336
Mortgage-backed Securities, Collateralized mortgage obligations [Member]
Held to maturity, Less Than 12 Months Fair Value	3	2
Held to maturity, Over 12 Months Fair Value
Held to maturity, Fair Value	3	2
Available for sale, Less Than 12 Months Fair Value	5,012	3,520
Available for sale, Less Than 12 Months Unrealized Losses	28	22
Available for sale, Over 12 Months Fair Value
Available for sale, Over 12 Months Unrealized Losses
Available for sale, Fair Value	5,012	3,520
Available for sale, Unrealized Losses	28	22
Corporate debt securities [Member]
Held to maturity, Less Than 12 Months Fair Value	7	2
Held to maturity, Over 12 Months Fair Value	1	1
Held to maturity, Fair Value	8	3
Available for sale, Less Than 12 Months Fair Value	5,648	1,304
Available for sale, Less Than 12 Months Unrealized Losses	103	9
Available for sale, Over 12 Months Fair Value	1,031	1,044
Available for sale, Over 12 Months Unrealized Losses	42	34
Available for sale, Fair Value	6,679	2,348
Available for sale, Unrealized Losses	$ 145	43
Mutual Funds [Member]
Held to maturity, Less Than 12 Months Fair Value
Held to maturity, Over 12 Months Fair Value		1
Held to maturity, Fair Value		1
Available for sale, Less Than 12 Months Fair Value
Available for sale, Less Than 12 Months Unrealized Losses
Available for sale, Over 12 Months Fair Value		617
Available for sale, Over 12 Months Unrealized Losses		12
Available for sale, Fair Value		617
Available for sale, Unrealized Losses		$ 12

INVESTMENT SECURITIES (Detail41

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Gross proceeds	$ 45,592	$ 19,518	$ 55,601	$ 36,842
Gross realized gains	483	116	504	123
Gross realized losses	991	80	1,024	80
Securities pledged against deposits	143,300		143,300		$ 119,100
Available-for-sale Securities [Member]
Gross proceeds	45,165	19,518	55,174	36,842
Gross realized gains	56	116	77	123
Gross realized losses	991	80	1,024	80
Visa Class B Restricted Shares [Member]
Gross proceeds	427		427
Gross realized gains	427		427
Gross realized losses

INVESTMENT SECURITIES (Detail42

INVESTMENT SECURITIES (Details 4) $ in Thousands	Jun. 30, 2018USD ($)
Disclosure Investment Securities Details 6Abstract
Available for sale, Over 1 year through 5 years, Amortized Cost	$ 6,187
Available for sale, After 5 years through 10 years, Amortized Cost	25,999
Available for sale, Over 10 years, Amortized Cost	135,100
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost	167,286
Available for sale, Mortgage-backed securities, Amortized Cost	172,569
Available for sale, Total, Amortized Cost	339,855
Available for Sale, Over 1 year through 5 years, Fair Value	6,192
Available for Sale, After 5 years through 10 years, Fair Value	25,944
Available for Sale, Over 10 years, Fair Value	133,250
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value	165,386
Available for Sale, Mortgage-backed securities, Fair Value	168,958
Available for Sale, Total, Fair Value	$ 334,344

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,054,911		$ 1,008,903
Less: Net deferred loan fees	(1,230)		(1,431)
Fair value discount	1,395	$ 1,746	2,012	$ 704	$ 786	$ 857
Hedged loans basis adjustment	(81)
Unamortized premium	366		389
Unamortized discount	(399)		(710)
Loans receivable	1,052,172		1,005,139
One To Four Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	318,352		304,107
Loans receivable	317,430		302,984
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	490,849		453,725
Loans receivable	488,744		451,029
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	48,881		49,877
Loans receivable	49,005		49,961
Residential Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	40,178		37,108
Loans receivable	40,242		37,144
Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	97,435		101,447
Loans receivable	97,234		101,168
Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	995,695		946,264
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	53,158		56,939
Loans receivable	53,366		57,076
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	6,058		5,700
Loans receivable	6,151		5,777
Commercial and Consumer Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 59,216		$ 62,639

LOANS RECEIVABLE (Detail Narrat

LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restructuring of loan	$ 9,862	$ 10,760
Federal Reserve Bank Advances [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	98,700	108,300
Federal Home Loan Bank of Atlanta [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral to secure funding amount	$ 254,200	$ 231,800

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Discount on purchased loans, beginning of period			$ 1,431
Discount on purchased loans, end of period	$ 1,230		1,230
Fair value discount, beginning of year	1,746	$ 786	2,012	$ 857
Accretion	(351)	(82)	(617)	(153)
Discount on purchased loans, end of period	1,395	704	1,395	704
Federal Deposit Insurance Corporation [Member]
Discount on purchased loans, beginning of period	1,083	681	710	1,150
Accretion	(127)	(282)	(311)	(194)
Discount on purchased loans, end of period	$ 399	$ 399	$ 399	$ 399

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 11,167	$ 9,498	$ 10,887	$ 9,305
Provision	357	325	718	640
Charge-offs	(63)	(3)	(278)	(338)
Recoveries	64	114	198	327
Balance, end of period	11,525	9,934	11,525	9,934
One To Four Family Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	3,770	3,121	4,018	2,812
Provision	1	247	(150)	555
Charge-offs		(46)	(110)	(50)
Recoveries	1	64	14	69
Balance, end of period	3,772	3,386	3,772	3,386
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	4,561	4,080	4,364	3,979
Provision	341	50	570	162
Charge-offs			(35)	(88)
Recoveries		(34)	3	43
Balance, end of period	4,902	4,096	4,902	4,096
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	575	665	616	677
Provision	(26)	(97)	(47)	(109)
Charge-offs		(1)	(41)	(1)
Recoveries	3	5	24	5
Balance, end of period	552	572	552	572
Residential Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	453	216	303	185
Provision		32	150	63
Charge-offs
Recoveries
Balance, end of period	453	248	453	248
Other Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,108	872	1,025	848
Provision	31	(30)	94	167
Charge-offs		53		(175)
Recoveries	7	12	27	67
Balance, end of period	1,146	907	1,146	907
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	636	489	503	599
Provision	28	89	156	(29)
Charge-offs	(34)		(34)
Recoveries	3	7	8	15
Balance, end of period	633	585	633	585
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	64	55	58	205
Provision	(18)	34	(55)	(169)
Charge-offs	(29)	(9)	(58)	(24)
Recoveries	50	60	122	128
Balance, end of period	$ 67	$ 140	$ 67	$ 140

ALLOWANCE FOR LOAN LOSSES (De47

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses
Individually evaluated for impairment	$ 193		$ 322
Collectively evaluated for impairment	11,332		10,565
Balance, end of period	11,525	$ 11,167	10,887	$ 9,934	$ 9,498	$ 9,305
Loans Receivable
Individually evaluated for impairment	11,004		11,634
Collectively evaluated for impairment	1,041,168		993,505
Total Loans Receivable	1,052,172		1,005,139
One To Four Family Residential [Member]
Allowance for loan losses
Individually evaluated for impairment	87		185
Collectively evaluated for impairment	3,685		3,833
Balance, end of period	3,772	3,770	4,018	3,386	3,121	2,812
Loans Receivable
Individually evaluated for impairment	2,954		3,873
Collectively evaluated for impairment	314,476		299,111
Total Loans Receivable	317,430		302,984
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	43		56
Collectively evaluated for impairment	4,859		4,308
Balance, end of period	4,902	4,561	4,364	4,096	4,080	3,979
Loans Receivable
Individually evaluated for impairment	5,309		5,714
Collectively evaluated for impairment	483,435		445,315
Total Loans Receivable	488,744		451,029
Home Equity Line of Credit [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	552		616
Balance, end of period	552	575	616	572	665	677
Loans Receivable
Individually evaluated for impairment	313		313
Collectively evaluated for impairment	48,692		49,648
Total Loans Receivable	49,005		49,961
Residential Construction [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	453		303
Balance, end of period	453	453	303	248	216	185
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	40,242		37,144
Total Loans Receivable	40,242		37,144
Other Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	54		66
Collectively evaluated for impairment	1,092		959
Balance, end of period	1,146	1,108	1,025	907	872	848
Loans Receivable
Individually evaluated for impairment	2,146		1,443
Collectively evaluated for impairment	95,088		99,725
Total Loans Receivable	97,234		101,168
Commercial Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment	9		15
Collectively evaluated for impairment	624		488
Balance, end of period	633	636	503	585	489	599
Loans Receivable
Individually evaluated for impairment	282		291
Collectively evaluated for impairment	53,084		56,785
Total Loans Receivable	53,366		57,076
Consumer Portfolio Segment [Member]
Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	67		58
Balance, end of period	67	$ 64	58	$ 140	$ 55	$ 205
Loans Receivable
Individually evaluated for impairment
Collectively evaluated for impairment	6,151		5,777
Total Loans Receivable	$ 6,151		$ 5,777

ALLOWANCE FOR LOAN LOSSES (De48

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loans receivable	$ 1,052,172	$ 1,005,139
One To Four Family Residential [Member]
Loans receivable	317,430	302,984
Commercial Portfolio Segment [Member]
Loans receivable	53,366	57,076
Home Equity Line of Credit [Member]
Loans receivable	49,005	49,961
Residential Construction [Member]
Loans receivable	40,242	37,144
Other Portfolio Segment [Member]
Loans receivable	97,234	101,168
Commercial Real Estate Portfolio Segment [Member]
Loans receivable	488,744	451,029
Consumer Portfolio Segment [Member]
Loans receivable	6,151	5,777
Graded Loan [Member]
Loans receivable	833,106	796,077
Graded Loan [Member] | One To Four Family Residential [Member]
Loans receivable	169,863	162,065
Graded Loan [Member] | Commercial Portfolio Segment [Member]
Loans receivable	53,350	57,035
Graded Loan [Member] | Home Equity Line of Credit [Member]
Loans receivable	8,962	10,156
Graded Loan [Member] | Residential Construction [Member]
Loans receivable	31,137	26,667
Graded Loan [Member] | Other Portfolio Segment [Member]
Loans receivable	83,848	88,462
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	485,316	450,773
Graded Loan [Member] | Consumer Portfolio Segment [Member]
Loans receivable	630	919
Graded Loan [Member] | Loan Grade One [Member]
Loans receivable	8,892	10,762
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member]
Loans receivable
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member]
Loans receivable	1,124	1,665
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member]
Loans receivable
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member]
Loans receivable
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member]
Loans receivable
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	7,759	9,086
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member]
Loans receivable	9	11
Graded Loan [Member] | Loan Grade Two [Member]
Loans receivable	9,081	15,700
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member]
Loans receivable		1,164
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member]
Loans receivable	1,072	1,272
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member]
Loans receivable		904
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	8,009	12,360
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Three [Member]
Loans receivable	168,477	150,353
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member]
Loans receivable	33,577	34,593
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member]
Loans receivable	14,466	15,117
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member]
Loans receivable	4,549	5,312
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member]
Loans receivable	9,049	7,262
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member]
Loans receivable	8,510	9,207
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	96,389	78,485
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member]
Loans receivable	302	377
Graded Loan [Member] | Loan Grade Four [Member]
Loans receivable	480,987	451,839
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member]
Loans receivable	110,927	99,816
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member]
Loans receivable	21,397	25,137
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member]
Loans receivable	3,799	3,901
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member]
Loans receivable	18,295	16,294
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member]
Loans receivable	52,974	57,065
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	273,282	249,103
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member]
Loans receivable	313	523
Graded Loan [Member] | Loan Grade Five [Member]
Loans receivable	147,341	146,316
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member]
Loans receivable	23,528	22,639
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member]
Loans receivable	12,768	13,064
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member]
Loans receivable	614	943
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member]
Loans receivable	3,793	3,111
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member]
Loans receivable	19,415	18,806
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	87,217	87,745
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member]
Loans receivable	6	8
Graded Loan [Member] | Loan Grade Six [Member]
Loans receivable	10,264	12,725
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member]
Loans receivable	328	1,741
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member]
Loans receivable	361	306
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member]
Loans receivable	1,825	2,055
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	7,750	8,623
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Seven [Member]
Loans receivable	8,064	8,382
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member]
Loans receivable	1,503	2,112
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member]
Loans receivable	527	474
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member]
Loans receivable
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member]
Loans receivable	1,124	425
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	4,910	5,371
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member]
Loans receivable
UnGraded Loan [Member]
Loans receivable	219,066	209,062
UnGraded Loan [Member] | One To Four Family Residential [Member]
Loans receivable	147,567	140,919
UnGraded Loan [Member] | Commercial Portfolio Segment [Member]
Loans receivable	16	41
UnGraded Loan [Member] | Home Equity Line of Credit [Member]
Loans receivable	40,043	39,805
UnGraded Loan [Member] | Residential Construction [Member]
Loans receivable	9,105	10,477
UnGraded Loan [Member] | Other Portfolio Segment [Member]
Loans receivable	13,386	12,706
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	3,428	256
UnGraded Loan [Member] | Consumer Portfolio Segment [Member]
Loans receivable	5,521	4,858
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member]
Loans receivable	1,264	1,121
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member]
Loans receivable	760	906
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans receivable
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans receivable	398	120
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member]
Loans receivable
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans receivable	64	83
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	22
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans receivable	20	12
UnGraded Loan [Member] | Performing Financing Receivable [Member]
Loans receivable	217,802	207,941
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member]
Loans receivable	146,807	140,013
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Loans receivable	16	41
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member]
Loans receivable	39,645	39,685
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member]
Loans receivable	9,105	10,477
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member]
Loans receivable	13,322	12,623
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable	3,406	256
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Loans receivable	$ 5,501	$ 4,846

ALLOWANCE FOR LOAN LOSSES (De49

ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 6,066	$ 9,069
60-89 Days Past	778	973
90 Days and Over Past Due	2,263	1,563
Total Past Due	9,107	11,605
Current	1,043,065	993,534
Total Loans Receivable	1,052,172	1,005,139
One To Four Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,145	3,941
60-89 Days Past	310	591
90 Days and Over Past Due	707	562
Total Past Due	4,162	5,094
Current	313,268	297,890
Total Loans Receivable	317,430	302,984
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,549	2,093
60-89 Days Past	346	308
90 Days and Over Past Due	307	683
Total Past Due	2,202	3,084
Current	486,542	447,945
Total Loans Receivable	488,744	451,029
Home Equity Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	342	308
60-89 Days Past	59	27
90 Days and Over Past Due	373	120
Total Past Due	774	455
Current	48,231	49,506
Total Loans Receivable	49,005	49,961
Residential Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	2	501
60-89 Days Past
90 Days and Over Past Due
Total Past Due	2	501
Current	40,240	36,643
Total Loans Receivable	40,242	37,144
Other Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	604	1,711
60-89 Days Past		21
90 Days and Over Past Due	794	93
Total Past Due	1,398	1,825
Current	95,836	99,343
Total Loans Receivable	97,234	101,168
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	418	488
60-89 Days Past	59	1
90 Days and Over Past Due	62	95
Total Past Due	539	584
Current	52,827	56,492
Total Loans Receivable	53,366	57,076
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	6	27
60-89 Days Past	4	25
90 Days and Over Past Due	20	10
Total Past Due	30	62
Current	6,121	5,715
Total Loans Receivable	$ 6,151	$ 5,777

ALLOWANCE FOR LOAN LOSSES (De50

ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	$ 7,336	$ 7,200
Unpaid Principal Balance, without a valuation allowance	10,073	9,601
Recorded Balance, Recorded Balance, with a valuation allowance	3,668	4,434
Unpaid Principal Balance, with a valuation allowance	3,668	4,434
Recorded Balance	11,004	11,634
Unpaid Principal Balance	13,741	14,035
Specific Allowance	193	322
One To Four Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	2,055	2,266
Unpaid Principal Balance, without a valuation allowance	2,182	2,376
Recorded Balance, Recorded Balance, with a valuation allowance	899	1,607
Unpaid Principal Balance, with a valuation allowance	899	1,607
Recorded Balance	2,954	3,873
Unpaid Principal Balance	3,081	3,983
Specific Allowance	87	185
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	3,664	4,050
Unpaid Principal Balance, without a valuation allowance	5,912	6,119
Recorded Balance, Recorded Balance, with a valuation allowance	1,645	1,664
Unpaid Principal Balance, with a valuation allowance	1,645	1,664
Recorded Balance	5,309	5,714
Unpaid Principal Balance	7,557	7,783
Specific Allowance	43	56
Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	313	313
Unpaid Principal Balance, without a valuation allowance	428	428
Recorded Balance	313	313
Unpaid Principal Balance	428	428
Specific Allowance
Other Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, without a valuation allowance	1,304	571
Unpaid Principal Balance, without a valuation allowance	1,551	678
Recorded Balance, Recorded Balance, with a valuation allowance	842	872
Unpaid Principal Balance, with a valuation allowance	842	872
Recorded Balance	2,146	1,443
Unpaid Principal Balance	2,393	1,550
Specific Allowance	54	66
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Recorded Balance, Recorded Balance, with a valuation allowance	282	291
Unpaid Principal Balance, with a valuation allowance	282	291
Recorded Balance	282	291
Unpaid Principal Balance	282	291
Specific Allowance	$ 9	$ 15

ALLOWANCE FOR LOAN LOSSES (De51

ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Average Investment in Impaired Loans, without a valuation allowance	$ 10,072	$ 11,254	$ 10,117	$ 11,361
Interest Income Recognized, without a valuation allowance	63	87	128	166
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	3,676	3,944	3,710	3,997
Interest Income Recognized, with a valuation allowance	51	51	102	100
Average Investment in Impaired Loans	13,748	15,198	13,827	15,358
Interest Income Recognized	114	138	230	266
One To Four Family Residential [Member]
Average Investment in Impaired Loans, without a valuation allowance	2,181	3,145	2,201	3,167
Interest Income Recognized, without a valuation allowance	22	37	44	69
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	900	1,125	906	1,134
Interest Income Recognized, with a valuation allowance	12	12	23	25
Average Investment in Impaired Loans	3,081	4,270	3,107	4,301
Interest Income Recognized	34	49	67	94
Commercial Real Estate Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	5,912	7,095	5,934	7,177
Interest Income Recognized, without a valuation allowance	32	32	65	63
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	1,646	1,684	1,657	1,695
Interest Income Recognized, with a valuation allowance	23	22	45	43
Average Investment in Impaired Loans	7,558	8,779	7,591	8,872
Interest Income Recognized	55	54	110	106
Home Equity Line of Credit [Member]
Average Investment in Impaired Loans, without a valuation allowance	428	328	428	328
Interest Income Recognized, without a valuation allowance	4	13	8	24
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance		100		100
Interest Income Recognized, with a valuation allowance		1		2
Average Investment in Impaired Loans	428	428	428	428
Interest Income Recognized	4	14	8	26
Other Portfolio Segment [Member]
Average Investment in Impaired Loans, without a valuation allowance	1,551	686	1,554	689
Interest Income Recognized, without a valuation allowance	5	5	11	10
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	848	735	860	764
Interest Income Recognized, with a valuation allowance	11	10	23	19
Average Investment in Impaired Loans	2,399	1,421	2,414	1,453
Interest Income Recognized	16	15	34	29
Commercial Portfolio Segment [Member]
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance	282	300	287	304
Interest Income Recognized, with a valuation allowance	5	6	11	11
Average Investment in Impaired Loans	282	300	287	304
Interest Income Recognized	$ 5	$ 6	$ 11	$ 11

ALLOWANCE FOR LOAN LOSSES (De52

ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 4,524	$ 4,778
One To Four Family Residential [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	1,170	1,421
Commercial Real Estate Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	1,881	2,666
Home Equity Line of Credit [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	397	120
Other Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	994	464
Commercial Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	62	95
Consumer Portfolio Segment [Member]
Non Performing Loan Receivables and Other Assets [Line Items]
Finance receivable, non-accrual	$ 20	$ 12

ALLOWANCE FOR LOAN LOSSES (De53

ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Modifications [Line Items]
TDR loans	$ 9,862	$ 10,760
Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	7,718	8,952
Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,144	1,808
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,555	3,452
One To Four Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	2,192	3,452
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	363
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	5,297	5,243
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	3,747	3,805
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,550	1,438
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	313	313
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	283	313
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	30
Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,415	1,461
Other Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	1,214	1,091
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	201	370
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	282	291
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans	282	291
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
TDR loans

GOODWILL AND OTHER INTANGIBLE54

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount at beginning of period	$ 4,840	$ 1,120
Additions from acquisitions during the period		3,720
Gross balance at end of period	4,840	4,840
Accumulated amortization	(917)	(571)
Finite Lived Core Deposits Net	3,923	$ 4,269
Amortization expense	$ 700

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Deposits By Type [Line Items]
Balance	$ 1,220,578	$ 1,013,998	$ 1,220,578	$ 1,013,998	$ 1,162,177
Interest Expense	1,827	1,085	3,209	2,113	4,474
Noninterest-bearing demand [Member]
Deposits By Type [Line Items]
Balance	196,321	163,784	196,321	163,784	179,457
Interest Expense
Interest-bearing Deposits [Member]
Deposits By Type [Line Items]
Balance	206,568	176,788	206,568	176,788	226,718
Interest Expense			184	93	228
Money Market Funds [Member]
Deposits By Type [Line Items]
Balance	206,568	261,127	206,568	261,127	308,767
Interest Expense			873	455	1,022
Savings Deposits [Member]
Deposits By Type [Line Items]
Balance	53,543	48,687	53,543	48,687	50,500
Interest Expense			29	25	53
Time deposit [Member]
Deposits By Type [Line Items]
Balance	$ 421,958	$ 363,612	421,958	363,612	396,735
Interest Expense			$ 2,123	$ 1,540	$ 3,171

DEPOSITS (Details 2)

DEPOSITS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Disclosure Deposits Details 3Abstract
Wholesale money market	$ 45,076	$ 2,020
Wholesale time deposits	67,610	28,824	38,976
Total	$ 112,686	$ 30,844	$ 38,976

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance	$ 213,500	$ 223,500
Rate	2.10%	1.48%
Maturity 2018 [Member]
Balance	$ 155,500	$ 205,500
Rate	2.03%	1.43%
Maturity 2019 [Member]
Balance	$ 48,000	$ 18,000
Rate	2.22%	2.02%
Maturity 2020 [Member]
Balance	$ 10,000
Rate	2.68%

DERIVATIVE FINANCIAL INSTRUME58

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Interest rate swap		$ (3,821)	$ (1,931)	$ (3,821)	$ (1,931)	$ (3,396)	$ (23)	$ (4,740)	$ (5,456)
Interest Expense		3,019	$ 1,802	5,468	$ 3,527
Designated as Hedging Instrument [Member]
Asset derivatives, Fair value	[1]	696		696			561
Liability derivatives, Fair value	[1]	50		50
Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Asset derivatives, Fair value	[1]	696		696			561
Liability derivatives, Fair value	[1]	50		50
Not Designated as Hedging Instrument [Member]
Asset derivatives, Fair value	[1]	75		75			$ 73
Liability derivatives, Fair value	[1]	$ 19		$ 19
[1]	All derivative assets are located in "Other assets" on the consolidated balance sheets and all derivative liabilities are located in "Other liabilities" on the consolidated balance sheets.

DERIVATIVE FINANCIAL INSTRUME59

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Junior Subordinated Debt [Member]
Notional Amount	$ 14
Fixed Interest Rate	0.958%
Underlying Rate	3 month LIBOR
Life of Swap Contract	4 years
Junior Subordinated Debt [Member]
Notional Amount	$ 14
Fixed Interest Rate	3.02%
Underlying Rate	3 month LIBOR
Life of Swap Contract	3 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

DERIVATIVE FINANCIAL INSTRUME60

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest Income	$ 15,329	$ 12,024	$ 30,171	$ 23,361
Interest Expenses	3,019	1,802	5,468	3,527
Fair Value Hedging Relationships [Member] | Hedged Assets [Member]
Interest Income	(81)		(81)
Fair Value Hedging Relationships [Member] | Interest Rate Swap - Derivatives Designated As Hedging Instruments [Member]
Interest Income	74		74
Cash Flow Hedging Relationships [Member] | Interest Rate Swap - Accumulated Other Comprehensive Loss Into Income [Member]
Interest Expenses	$ 142	$ (2)	$ 198	$ (2)

DERIVATIVE FINANCIAL INSTRUME61

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loan Receivable	$ 1,052,172	$ 1,005,139
Hedged Assets [Member]
Loan Receivable	109,186
Hedged Assets [Member] | Fair Value Hedging Relationships [Member]
Loan Receivable	$ (81)

DERIVATIVE FINANCIAL INSTRUME62

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure Derivative Financial Instruments And Hedging Activities Details 5Abstract
Amount of gain (loss) recognized in AOCI on derivatives	$ 8	$ (107)	$ 210	$ (68)
Amount of gain (loss) reclassified from AOCI into income	(142)	2	(198)	(68)
Amount of gain (loss) recognized in consolidated statement of comprehensive income	$ (134)	$ (105)	$ 12	$ (48)

DERIVATIVE FINANCIAL INSTRUME63

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Amount of gain (loss) recognized in income	$ (39)	$ 18	$ (12)	$ 4
Interest Rate Lock Commitments [Member]
Amount of gain (loss) recognized in income	12	8	29	16
Forward Sales Commitments [Member]
Amount of gain (loss) recognized in income	(51)	$ 10	(41)	$ (12)
Residential Real Estate [Member] | Interest Rate Lock Commitments [Member]
Fair value Derivative Assets and Liabilities	3,912		3,912		$ 5,705
Residential Real Estate [Member] | Forward Sales Commitments [Member]
Fair value Derivative Assets and Liabilities	$ 4,500		$ 4,500		$ 5,705

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for loan losses	$ 2,519	$ 2,356
Deferred compensation and post employment benefits	1,933	1,993
Non-accrual interest	222	204
Valuation reserve for other real estate	315	346
North Carolina NOL carryover	407	475
Federal NOL carryover	2,293	3,507
AMT credit carryforward	322	645
Unrealized losses on securities	1,240	149
Loan basis differences	67	77
Deposit premium	73	104
Fixed assets	101	63
Core deposit intangible	90	52
Other	1,403	1,009
Total deferred tax assets	10,985	10,980
Deferred tax liabilities:
Loan servicing rights	603	620
Goodwill	316	126
Core deposit intangible	81	89
Deferred loan costs	929	757
Prepaid expenses	7	31
Unrealized gains on securities	377	377
Derivative instruments	152	128
Other	5	21
Total deferred tax liabilities	2,470	2,149
Net deferred tax asset	$ 8,515	$ 8,831

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Federal [Member]
Unused Net Operating Losses	$ 10,983
Federal [Member] | Minimum [Member]
Expiration Dates	2,031
Federal [Member] | Maximum [Member]
Expiration Dates	2,036
North Carolina [Member]
Unused Net Operating Losses	$ 19,224
North Carolina [Member] | Minimum [Member]
Expiration Dates	2,026
North Carolina [Member] | Maximum [Member]
Expiration Dates	2,029

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 3,087	$ 2,102	$ 6,669	$ 3,402
Weighted average shares outstanding	6,889,743	6,456,572	6,887,838	6,460,693
Effect of dilutive stock options	97,924	46,926	97,450	38,110
Effect of dilutive restricted stock units	50,190	45,502	48,052	41,721
Average shares outstanding	7,037,857	6,549,000	7,033,340	6,540,524
Earnings per share - basic	$ 0.45	$ 0.33	$ 0.97	$ 0.53
Earnings per share - diluted	0.44	0.32	0.95	0.52
Equity Option [Member]
Average Stock Price	$ 28.52	$ 23.58	$ 28.54	$ 23.04
Anti-Dilutaive Shares	21,131	616	20,362	808

ACCUMULATED OTHER COMPREHENSI67

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Balance, beginning of period	$ (3,396)	$ (4,740)	$ (23)	$ (5,456)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale		55		109
Change in net unrealized holding losses on securities available for sale	(1,358)	4,510	(5,863)	5,431
Reclassification adjustment for net securities gains realized in net income	935	(36)	947	(43)
Reclassification adjustment for other then temporary impairment of securities available for sale				79
Change in unrealized holding gains and losses on cash flow hedge	8	(107)	210	(68)
Reclassification adjustment for cash flow hedge effectiveness	(142)	2	(198)	(68)
Cumulative effect of change in accounting principle			9	20
Income tax effect	132	(1,615)	1,097	(2,003)
Balance, end of period	(3,821)	(1,931)	(3,821)	(1,931)
Valuation Allowance of Deferred Tax Assets [Member]
Balance, beginning of period		(148)		(202)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale		55		109
Change in net unrealized holding losses on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Reclassification adjustment for other then temporary impairment of securities available for sale
Change in unrealized holding gains and losses on cash flow hedge
Income tax effect
Balance, end of period		(93)		(93)
Available-for-sale Securities [Member]
Balance, beginning of period	(3,943)	(4,928)	(455)	(5,554)
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale
Change in net unrealized holding losses on securities available for sale	(1,358)	4,510	(5,863)	5,431
Reclassification adjustment for net securities gains realized in net income	935	(36)	947	(43)
Reclassification adjustment for other then temporary impairment of securities available for sale				79
Cumulative effect of change in accounting principle			9
Income tax effect	95	(1,654)	1,091	(2,021)
Balance, end of period	(4,271)	(2,108)	(4,271)	(2,108)
Cash Flow Hedge [Member]
Balance, beginning of period	547	336	432	300
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale
Change in net unrealized holding losses on securities available for sale
Reclassification adjustment for net securities gains realized in net income
Change in unrealized holding gains and losses on cash flow hedge	8	(107)	210
Reclassification adjustment for cash flow hedge effectiveness	(142)	2	(198)	(68)
Cumulative effect of change in accounting principle				20
Income tax effect	37	39	6	18
Balance, end of period	$ 450	$ 270	$ 450	$ 270

ACCUMULATED OTHER COMPREHENSI68

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for other then temporary impairment of securities available for sale				$ (79)
Interest expense - Junior subordinated notes	(142)	(141)	(280)	(278)
Cash Flow Hedge [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense - FHLB advances	(94)	(11)	(124)	(28)
Interest expense - Junior subordinated notes	(48)	9	(74)	8
Tax effect	32	1	45	7
Impact, net of tax	(110)	(1)	(153)	(13)
Valuation Allowance of Deferred Tax [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax		(55)		(109)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Impact, net of tax	(615)	(31)	(581)	(119)
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	(935)	36	(947)	43
Reclassification adjustment for other then temporary impairment of securities available for sale				(79)
Tax effect	210	(13)	213	13
Impact, net of tax	$ (725)	$ 23	$ (734)	$ (23)

COMMITMENTS AND CONTINGENCIES69

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2018USD ($)
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 180,392
Lines of credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	178,744
Standby Letters of Credit [Member]
Other Commitments [Line Items]
Commitments to fund lines of credit	$ 1,648

COMMITMENTS AND CONTINGENCIES70

COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Fixed	$ 40,335
Variable	9,384
Total	$ 49,719
Minimum [Member]
Fixed (as a percent)	3.35%
Variable (as a percent)	4.24%
Maximum [Member]
Fixed (as a percent)	7.99%
Variable (as a percent)	7.50%

COMMITMENTS AND CONTINGENCIES71

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
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, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 345,666	$ 352,348
Liabilities measured at fair value on recurring basis	69
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	2,685	2,756
Derivative Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	1,170	561
Mortgage Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	75
Liabilities measured at fair value on recurring basis	19
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	696	45
Liabilities measured at fair value on recurring basis	50
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		28
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	9,638	9,208
Liabilities measured at fair value on recurring basis
Fair Value, Inputs, Level 1 [Member] | 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
Fair Value, Inputs, Level 1 [Member] | Derivative Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Fair Value, Inputs, Level 1 [Member] | Mortgage Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Liabilities measured at fair value on recurring basis
Fair Value, Inputs, Level 1 [Member] | 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
Liabilities measured at fair value on recurring basis
Fair Value, Inputs, Level 1 [Member] | 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
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	331,605	339,819
Liabilities measured at fair value on recurring basis	50
Fair Value, Inputs, Level 2 [Member] | 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
Fair Value, Inputs, Level 2 [Member] | Derivative Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis		561
Fair Value, Inputs, Level 2 [Member] | Mortgage Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Liabilities measured at fair value on recurring basis
Fair Value, Inputs, Level 2 [Member] | 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	696
Liabilities measured at fair value on recurring basis	50
Fair Value, Inputs, Level 2 [Member] | 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
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	4,423	3,321
Liabilities measured at fair value on recurring basis	19
Fair Value, Inputs, Level 3 [Member] | 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	2,685	2,756
Fair Value, Inputs, Level 3 [Member] | Derivative Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	1,170
Fair Value, Inputs, Level 3 [Member] | Mortgage Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	75
Liabilities measured at fair value on recurring basis	19
Fair Value, Inputs, Level 3 [Member] | 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		45
Liabilities measured at fair value on recurring basis
Fair Value, Inputs, Level 3 [Member] | 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		28
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	6,696	6,095
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	6,696	6,095
Trading account 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
Trading account assets [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
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	334,344	342,863
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	29,384	20,523
Available-for-sale Securities [Member] | Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	103,288	93,859
Available-for-sale Securities [Member] | Mortgage-backed Securities - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	84,990	128,039
Available-for-sale Securities [Member] | Collateralized Mortgage Obligations - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	14,708	10,302
Available-for-sale Securities [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	69,260	64,693
Available-for-sale Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	7,052	5,539
Available-for-sale Securities [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	19,697	19,291
Available-for-sale Securities [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis		617
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,942	3,113
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	2,942	2,496
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed Securities - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis		617
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	330,909	339,258
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [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	26,442	18,027
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	103,288	93,859
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	84,990	128,039
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	14,708	10,302
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	69,260	64,693
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	13,017	5,539
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	19,204	18,799
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [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	493	492
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [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
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed Securities - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis	$ 493	492
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on recurring basis

FAIR VALUE DISCLOSURES (Detai73

FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure Fair Value Disclosures Details 2Abstract
Balance at beginning of period	$ 4,649	$ 3,740	$ 3,321	$ 4,807
Corporate bonds Fair value adjustment		(2)		(4)
Corporate bonds Transfer to Level 2	(1,331)			(1,086)
Corporate bonds Sold	1,170		1,170
Capitalization from loans sold	145	141	245	292
Fair value adjustment	(186)	(61)	(316)	(177)
Mortgage derivative gains included in Other income	(43)	18	(16)	4
Balance at end of period	$ 4,404	$ 3,836	$ 4,404	$ 3,836

FAIR VALUE DISCLOSURES (Detai74

FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets measured at fair value on nonrecurring basis	$ 10,138	$ 9,768
Impaired loans measured at present value	3,700	4,400
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value on nonrecurring basis	9,053	9,768
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	2,055	2,266
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	3,664	4,050
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member]
Assets measured at fair value on nonrecurring basis	313	313
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,304	571
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	2,055	2,266
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	3,664	4,050
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	313	313
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	1,304	571
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member]
Assets measured at fair value on nonrecurring basis	265	288
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	950	544
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member]
Assets measured at fair value on nonrecurring basis	1,587	1,736
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	265	288
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	950	544
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	$ 1,587	$ 1,736

FAIR VALUE DISCLOSURES (Detai75

FAIR VALUE DISCLOSURES (Details 4)	6 Months Ended
	Jun. 30, 2018
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
Mortgage loans held for sale [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	External pricing model
Valuation Technique	Recent trade pricing
Mortgage loans held for sale [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	98.00%
Mortgage loans held for sale [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	101.00%
Mortgage Derivatives [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	External pricing model
Valuation Technique	Pull-through rate
Mortgage Derivatives [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	76.00%
Mortgage Derivatives [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Recent trade pricing	100.00%

FAIR VALUE DISCLOSURES (Detai76

FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and equivalents	$ 113,119	$ 109,467	$ 80,111	$ 43,294
Trading securities	6,696	6,095
Securities available for sale	334,344	342,863
Other investments, at cost	12,039	12,386
Interest receivable	5,706	5,405
Bank owned life insurance	32,543	32,150
Loan servicing rights	2,685	2,756
Liabilities:
Federal Home Loan Bank advances	213,500	223,500
Junior subordinated debentures	14,433	14,433
Other borrowings	9,377	8,623
Accrued interest payable	998	935
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and equivalents	113,119	109,467
Trading securities	6,696	6,095
Securities available for sale	2,942	3,113
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]
Assets:
Cash and equivalents
Trading securities
Securities available for sale	329,930	339,258
Loans held for sale	4,413	4,211
Loans receivable, net
Other investments, at cost	12,039	12,386
Interest receivable	5,706	5,405
Bank owned life insurance	32,543	32,150
Loan servicing rights
Derivative asset		561
SBIC investments
Liabilities:
Demand deposits	798,620	765,442
Time deposits
Federal Home Loan Bank advances	213,633	223,627
Junior subordinated debentures	12,287	14,433
Other borrowings	9,310	8,620
Accrued interest payable	998	935
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Assets:
Derivative asset	696
Liabilities:
Derivative Liabilities	50
Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and equivalents
Trading securities
Securities available for sale	1,472	492
Loans held for sale	1,170
Loans receivable, net	1,026,470	992,993
Other investments, at cost
Interest receivable
Bank owned life insurance
Loan servicing rights	2,685	2,756
Derivative asset
SBIC investments	3,537	3,491
Liabilities:
Demand deposits
Time deposits	424,440	390,806
Federal Home Loan Bank advances
Junior subordinated debentures
Other borrowings
Accrued interest payable
Fair Value, Inputs, Level 3 [Member] | Forward Sales Commitments [Member]
Assets:
Commitments		28
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments		45
Fair Value, Inputs, Level 3 [Member] | Mortgage Derivatives [Member]
Assets:
Derivative asset	75
Liabilities:
Derivative Liabilities	19
Reported Value Measurement [Member]
Assets:
Cash and equivalents	113,119	109,467
Trading securities	6,696	6,095
Securities available for sale	334,344	342,863
Loans held for sale	5,113	3,845
Loans receivable, net	1,052,172	1,005,139
Other investments, at cost	12,039	12,386
Interest receivable	5,706	5,405
Bank owned life insurance	32,543	32,150
Loan servicing rights	2,685	2,756
Derivative asset		561
SBIC investments	3,537	3,491
Liabilities:
Demand deposits	798,620	765,442
Time deposits	421,958	396,735
Federal Home Loan Bank advances	213,500	223,500
Junior subordinated debentures	14,433	14,433
Other borrowings	9,377	8,623
Accrued interest payable	998	935
Reported Value Measurement [Member] | Interest Rate Swap [Member]
Assets:
Derivative asset	696
Liabilities:
Derivative Liabilities	50
Reported Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments		28
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments		45
Reported Value Measurement [Member] | Mortgage Derivatives [Member]
Assets:
Derivative asset	75
Liabilities:
Derivative Liabilities	19
Fair Value Measurement [Member]
Assets:
Cash and equivalents	113,119	109,467
Trading securities	6,696	6,095
Securities available for sale	334,344	342,863
Loans held for sale	5,583	4,211
Loans receivable, net	1,026,470	992,993
Other investments, at cost	12,039	12,386
Interest receivable	5,706	5,405
Bank owned life insurance	32,543	32,150
Loan servicing rights	2,685	2,756
Derivative asset		561
SBIC investments	3,537	3,491
Liabilities:
Demand deposits	798,620	765,442
Time deposits	424,440	390,806
Federal Home Loan Bank advances	213,633	223,627
Junior subordinated debentures	12,287	14,433
Other borrowings	9,310	8,620
Accrued interest payable	998	935
Fair Value Measurement [Member] | Interest Rate Swap [Member]
Assets:
Derivative asset	696
Liabilities:
Derivative Liabilities	50
Fair Value Measurement [Member] | Forward Sales Commitments [Member]
Assets:
Commitments		28
Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member]
Assets:
Commitments		$ 45
Fair Value Measurement [Member] | Mortgage Derivatives [Member]
Assets:
Derivative asset	75
Liabilities:
Derivative Liabilities	$ 19

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Noninterest Income
Service Charges on Deposit Accounts	$ 405	$ 412	$ 836	$ 803
Noninterest Income	1,298	1,693	2,714	2,538
In-scope of Topic 606 [Member]
Noninterest Income
Service Charges on Deposit Accounts	405	412	836	803
Interchange fees	271	243	519	409
Other	340	182	548	312
Noninterest Income	1,016	837	1,903	1,524
Out-of-scope of Topic 606 [Member]
Noninterest Income
Noninterest Income	$ 282	$ 856	$ 811	$ 1,014