Mackinac Financial (MFNC) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014
Document and Entity Information	'
Entity Registrant Name	'MACKINAC FINANCIAL CORP /MI/
Entity Central Index Key	'0000036506
Document Type	'10-Q
Document Period End Date	30-Jun-14
Amendment Flag	'false
Current Fiscal Year End Date	'--12-31
Entity Current Reporting Status	'Yes
Entity Filer Category	'Smaller Reporting Company
Entity Common Stock, Shares Outstanding	5,527,690
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q2

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
ASSETS	'	'	'
Cash and due from banks	$20,744	$18,216	$26,216
Federal funds sold	2	3	3
Cash and cash equivalents	20,746	18,219	26,219
Interest-bearing deposits in other financial institutions	235	10	10
Securities available for sale	47,374	44,388	47,307
Federal Home Loan Bank stock	3,060	3,060	3,060
Loans:	'	'	'
Commercial	374,565	359,368	343,561
Mortgage	113,332	110,663	98,559
Consumer	15,043	13,801	13,435
Total Loans	502,940	483,832	455,555
Allowance for loan losses	-5,097	-4,661	-5,177
Net loans	497,843	479,171	450,378
Premises and equipment	9,790	10,210	10,536
Other real estate held for sale	1,947	1,884	2,481
Deferred tax asset	9,097	9,933	8,367
Other assets	5,777	5,925	5,143
TOTAL ASSETS	595,869	572,800	553,501
Deposits:	'	'	'
Noninterest bearing deposits	73,732	72,936	64,736
NOW, money market, interest checking	148,242	149,123	146,203
Savings	15,658	13,039	12,229
CDs less than $100,000	143,140	140,495	134,767
CDs more than $100,000	23,151	23,159	25,091
Brokered	80,093	67,547	64,881
Total deposits	484,016	466,299	447,907
Borrowings	42,087	37,852	35,925
Other liabilities	3,289	3,400	3,149
Total liabilities	529,392	507,551	486,981
SHAREHOLDERS' EQUITY:	'	'	'
Preferred stock - No par value: Authorized - 500,000 shares, none issued and outstanding	'	'	4,000
Common stock and additional paid in capital - No par value Authorized - 18,000,000 shares Issued and outstanding - 5,527,690; 5,541,390 and 5,557,859 respectively	53,703	53,621	53,934
Retained earnings	12,325	11,412	8,156
Accumulated other comprehensive income	449	216	430
Total shareholders' equity	66,477	65,249	66,520
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$595,869	$572,800	$553,501

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
CONSOLIDATED BALANCE SHEETS	'	'	'
Preferred stock, par value	'	'	'
Preferred stock, Authorized shares	500,000	500,000	500,000
Preferred stock, shares issued	0	0	'
Preferred stock, shares outstanding	0	0	'
Common stock, par value	'	'	'
Common stock and additional paid in capital, authorized shares	18,000,000	18,000,000	18,000,000
Common stock and additional paid in capital, shares issued	5,527,690	5,541,390	5,557,859
Common stock and additional paid in capital, shares outstanding	5,527,690	5,541,390	5,557,859

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest and fees on loans:	'	'	'	'
Taxable	$6,373	$6,014	$12,654	$11,903
Tax-exempt	'	28	23	55
Interest on securities:	'	'	'	'
Taxable	244	241	481	481
Tax-exempt	14	6	27	13
Other interest income	32	32	80	63
Total interest income	6,663	6,321	13,265	12,515
INTEREST EXPENSE:	'	'	'	'
Deposits	800	886	1,622	1,763
Borrowings	204	166	391	327
Total interest expense	1,004	1,052	2,013	2,090
Net interest income	5,659	5,269	11,252	10,425
Provision for loan losses	191	100	374	475
Net interest income after provision for loan losses	5,468	5,169	10,878	9,950
OTHER INCOME:	'	'	'	'
Deposit service fees	192	175	349	337
Income from loans sold on the secondary market	139	279	242	578
SBA/USDA loan sale gains	166	554	548	663
Mortgage servicing income	89	182	102	285
Other	64	61	100	146
Total other income	650	1,251	1,341	2,009
OTHER EXPENSE:	'	'	'	'
Salaries and employee benefits	2,523	2,375	5,064	4,681
Occupancy	546	363	1,084	745
Furniture and equipment	303	255	622	525
Data processing	288	268	574	533
Advertising	123	111	230	215
Professional service fees	276	320	607	545
Loan and deposit	83	45	162	118
Writedowns and losses on other real estate held for sale	14	87	14	89
FDIC insurance assessment	90	95	175	200
Telephone	82	63	164	145
Other	570	541	1,309	1,038
Total other expenses	4,898	4,523	10,005	8,834
Income before provision for income taxes	1,220	1,897	2,214	3,125
Provision for income taxes	414	637	748	1,052
NET INCOME	806	1,260	1,466	2,073
Preferred dividend and accretion of discount	'	63	'	200
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$806	$1,197	$1,466	$1,873
INCOME PER COMMON SHARE:	'	'	'	'
Basic (in dollars per share)	$0.15	$0.22	$0.27	$0.34
Diluted (in dollars per share)	$0.14	$0.22	$0.26	$0.34

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME	'	'	'	'
Net income	$806	$1,260	$1,466	$2,073
Net change in net unrealized gains and losses on securities available for sale:	'	'	'	'
Unrealized gains (losses) arising during the period	150	-832	345	-763
Less: reclassification adjustment for gains included in net income	'	15	'	15
Net securities gain (loss) during the period	150	-817	345	-748
Tax effect	-45	277	-112	254
Other comprehensive income (loss)	105	-540	233	-494
Total comprehensive income	$911	$720	$1,699	$1,579

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)	Total	Preferred Stock	Common Shareholders' Equity
In Thousands, unless otherwise specified
Balance, beginning of period at Dec. 31, 2012	$72,448	$11,000	$61,448
Increase (Decrease) in Shareholders' Equity	'	'	'
Net income for period	2,073	'	2,073
Net unrealized gain (loss) on securities available for sale	-494	'	-494
Total comprehensive income	1,579	'	1,579
Stock compensation	183	'	183
Dividend on common stock	-444	'	-444
Repurchase of common stock	-46	'	-46
Redemption of Preferred Series A stock	-7,000	-7,000	'
Dividend on preferred stock	-200	'	-200
Balance, end of period at Jun. 30, 2013	66,520	4,000	62,520
Balance, beginning of period at Mar. 31, 2013	73,039	11,000	62,039
Increase (Decrease) in Shareholders' Equity	'	'	'
Net income for period	1,260	'	1,260
Net unrealized gain (loss) on securities available for sale	-540	'	-540
Total comprehensive income	720	'	720
Stock compensation	75	'	75
Dividend on common stock	-222	'	-222
Repurchase of common stock	-29	'	-29
Redemption of Preferred Series A stock	-7,000	-7,000	'
Dividend on preferred stock	-63	'	-63
Balance, end of period at Jun. 30, 2013	66,520	4,000	62,520
Balance, beginning of period at Dec. 31, 2013	65,249	'	65,249
Increase (Decrease) in Shareholders' Equity	'	'	'
Net income for period	1,466	'	1,466
Net unrealized gain (loss) on securities available for sale	233	'	233
Total comprehensive income	1,699	'	1,699
Stock compensation	225	'	225
Dividend on common stock	-553	'	-553
Repurchase of common stock	-143	'	-143
Balance, end of period at Jun. 30, 2014	66,477	'	66,477
Balance, beginning of period at Mar. 31, 2014	65,730	'	65,730
Increase (Decrease) in Shareholders' Equity	'	'	'
Net income for period	806	'	806
Net unrealized gain (loss) on securities available for sale	105	'	105
Total comprehensive income	911	'	911
Stock compensation	113	'	113
Dividend on common stock	-277	'	-277
Balance, end of period at Jun. 30, 2014	$66,477	'	$66,477

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:	'	'
Net income	$1,466	$2,073
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	751	840
Provision for loan losses	374	475
Deferred income taxes, net	748	1,052
Gain on sales/calls of securities	'	-15
(Gain) on sale of loans sold to secondary market	-191	-458
Origination of loans held for sale in the secondary market	-11,170	-32,597
Proceeds from sale of loans in the secondary market	11,361	33,055
Loss (gain) on sale of premises, equipment, and other real estate held for sale	41	-25
Writedown of other real estate held for sale	2	114
Stock compensation	225	183
Change in other assets	149	72
Change in other liabilities	-111	99
Net cash provided by operating activities	3,645	4,868
Cash Flows from Investing Activities:	'	'
Net increase in loans	-19,354	-7,600
Net increase in deposits held at other banks	-225	'
Purchase of securities available for sale	-3,243	-4,974
Proceeds from maturities, sales, calls or paydowns of securities available for sale	504	476
Capital expenditures	-798	-501
Proceeds from sale of premises, equipment, and other real estate	742	1,329
Net cash (used in) investing activities	-22,374	-11,270
Cash Flows from Financing Activities:	'	'
Net increase in deposits	17,717	13,350
Net increase in borrowings	4,235	'
Repurchase of common stock	-143	-46
Dividend on common stock	-553	-444
Redemption of Preferred Series A	'	-7,000
Dividend on preferred stock	'	-200
Net cash provided by financing activities	21,256	5,660
Net increase (decrease) in cash and cash equivalents	2,527	-742
Cash and cash equivalents at beginning of period	18,219	26,961
Cash and cash equivalents at end of period	20,746	26,219
Cash paid during the year for:	'	'
Interest	2,009	1,651
Income taxes	25	99
Noncash Investing and Financing Activities:	'	'
Transfers of Foreclosures from Loans to Other Real Estate Held for Sale (net of adjustments made through the allowance for loan losses)	$282	$687

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	1.              SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The unaudited condensed consolidated financial statements of Mackinac Financial Corporation (the “Corporation”) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the six-month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.  The unaudited consolidated financial statements and footnotes thereto should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013.
	In order to properly reflect some categories of other income and other expenses, reclassifications of expense and income items have been made to prior period numbers.  The “net” other income and other expenses was not changed due to these reclassifications.
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the valuation of deferred tax assets, mortgage servicing rights and other real estate held for sale.
	Allowance for Loan Losses
	The allowance for loan losses includes specific allowances related to commercial loans, when they have been judged to be impaired.  A loan is impaired when, based on current information, it is probable that the Corporation will not collect all amounts due in accordance with the contractual terms of the loan agreement.  These specific allowances are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent.
	The Corporation continues to maintain a general allowance for loan losses for loans not considered impaired.  The allowance for loan losses is maintained at a level which management believes is adequate to provide for possible loan losses.  Management periodically evaluates the adequacy of the allowance using the Corporation’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, current economic conditions, and other factors.  The allowance does not include the effects of expected losses related to future events or future changes in economic conditions.  This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change.  Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely.  In addition, various regulatory agencies periodically review the allowance for loan losses.  These agencies may require additions to the allowance for loan losses based on their judgments of collectability.
	In management’s opinion, the allowance for loan losses is adequate to cover probable losses relating to specifically identified loans, as well as probable losses inherent in the balance of the loan portfolio as of the balance sheet date.
	Stock Compensation Plans
	On May 22, 2012, the Company’s shareholders approved the Mackinac Financial Corporation 2012 Incentive Compensation Plan, under which current and prospective employees, non-employee directors and consultants may be awarded incentive stock options, non-statutory stock options, shares of restricted stock units (“RSUs”), or stock appreciation rights.  The aggregate number of shares of the Company’s common stock issuable under the plan is 575,000, which included 392,152 option shares outstanding at that time.  Awards are made at the discretion of management.  Compensation cost equal to the fair value of the award is recognized over the vesting period.
	The Corporation, in August 2012 and March 2014, granted Restricted Stock Units (“RSUs”) to members of the Board of Directors and Management.  In August 2012, 148,500 RSUs were granted at a market value of $7.91 and will vest equally over a four year term.  In exchange for the grant of these RSUs various previously issued stock option awards were surrendered.  In March 2014, 52,774 RSUs were granted at a market value of $12.95, also vesting equally over a four year term.    The RSUs were awarded at no cost to the employee.  Compensation cost to be recognized over the four —year vesting periods, is $1.175 million and $.683 million, respectively.  On August 31, 2013, the Corporation issued 37,125 shares of its common stock for vested RSUs.  As of June 30, 2014, RSUs totaling 164,149 were unvested and unrecognized compensation expense was $1.270 million.

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2014
RECENT ACCOUNTING PRONOUNCEMENTS	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	2.              RECENT ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on the recognition of revenue from contracts with customers. Revenue recognition will depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The guidance is effective January 1, 2017 and early adoption is not permitted. The company is currently evaluating the impact of the new guidance and the method of adoption in the consolidated financial results.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2014
EARNINGS PER SHARE	'
EARNINGS PER SHARE	'
	3.              EARNINGS PER SHARE
	Diluted earnings per share, which reflects the potential dilution that could occur if outstanding stock options were exercised and stock awards were fully vested and resulted in the issuance of common stock that then shared in our earnings, is computed by dividing net income by the weighted average number of common shares outstanding and common stock equivalents, after giving effect for dilutive shares issued.
	The following shows the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (dollars in thousands, except per share data):
		Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014		2013
	(Numerator):
	Net income	$	806	$	1,260	$	1,466	$	2,073
	Preferred stock dividends and accretion of discount	—		63		—		200
	Net income available to common shareholders	$	806	$	1,197	$	1,466	$	1,873
	(Denominator):
	Weighted average shares outstanding - basic	5,527,690		5,556,133		5,529,290		5,557,842
	Effect of dilutive stock options and vesting of restricted stock units	90,001		—		55,642		—
	Weighted average shares outstanding - diluted	5,617,691		5,556,133		5,584,932		5,557,842
	Income per common share:
	Basic	$	0.15	$	0.22	$	0.27	$	0.34
	Diluted	$	0.14	$	0.22	$	0.26	$	0.34

INVESTMENT_SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2014
INVESTMENT SECURITIES	'
INVESTMENT SECURITIES	'
	4.              INVESTMENT SECURITIES
	The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2014, December 31, 2013 and June 30, 2013 are as follows (dollars in thousands):
				Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
	June 30, 2014
	US Agencies - MBS	$	6,598	$	253	$	—		$	6,851
	US Agencies	17,755		91		(258		)	17,588
	Corporate Bonds	15,691		189		—			15,880
	Obligations of states and political subdivisions	6,441		400		(2		)	6,839
	Other	216		—		—			216
	Total securities available for sale	$	46,701	$	933	$	(260	)	$	47,374
	December 31, 2013
	US Agencies - MBS	$	7,078	$	281	$	—		$	7,359
	US Agencies	15,227		—		(372		)	14,855
	Corporate Bonds	15,862		218		(1		)	16,079
	Obligations of states and political subdivisions	5,893		202		—			6,095
	Total securities available for sale	$	44,060	$	701	$	(373	)	$	44,388
	June 30, 2013
	US Agencies - MBS	$	7,491	$	354	$	—		$	7,845
	US Agencies	15,172		74		(341		)	14,905
	Corporate Bonds	18,557		161		(45		)	18,673
	Obligations of states and political subdivisions	5,435		450		(1		)	5,884
	Total securities available for sale	$	46,655	$	1,039	$	(387	)	$	47,307
	The Corporation has evaluated gross unrealized losses that exist within the portfolio and considers them temporary in nature.  The Corporation has both the ability and the intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses.
	The amortized cost and estimated fair value of investment securities pledged to secure FHLB borrowings and customer relationships were $4.378 million and $4.530 million, respectively, at June 30, 2014.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2014
LOANS	'
LOANS	'
	5.              LOANS
	The composition of loans is as follows (dollars in thousands):
		June 30,			December 31,			June 30,
		2014			2013			2013
	Commercial real estate	$	274,500		$	268,809		$	243,363
	Commercial, financial, and agricultural	89,515			79,655			84,145
	One to four family residential real estate	105,868			103,768			94,254
	Construction :
	Consumer	7,464			6,895			4,305
	Commerical	10,550			10,904			16,053
	Consumer	15,043			13,801			13,435
	Total loans	$	502,940		$	483,832		$	455,555
	An analysis of the allowance for loan losses for the six months ended June 30, 2014, the year ended December 31, 2013, and the six months ended June 30, 2013 is as follows (dollars in thousands):
		June 30,			December 31,			June 30,
		2014			2013			2013
	Balance at beginning of period	$	4,661		$	5,218		$	5,218
	Loans charged off	(115		)	(2,432		)	(616		)
	Recoveries on loans previously charged off	177			200			100
	Provision	374			1,675			475
	Balance at end of period	$	5,097		$	4,661		$	5,177
	In the first half of 2014, net recoveries were $62,000, compared to net charge-offs of $.516 million, or .23% of average loans, in the same period in 2013.   In the first half of 2014, the Corporation recorded a provision for loan loss of $.374 million compared to $.475 million in the first half of 2013.  The Corporation’s allowance for loan loss reserve policy calls for a measurement of the adequacy of the reserve at each quarter end.  This process includes an analysis of the loan portfolio to take into account increases in loans outstanding and portfolio composition, historical loss rates, and specific reserve requirements of nonperforming loans.
	A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2014 is as follows (dollars in thousands):
					Commercial,						One to four
	Three Months Ended June 30, 2014	Commercial			financial and			Commercial			family residential			Consumer
	Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
	Beginning balance ALLR	$	1,756		$	1,572		$	41		$	391		$	16		$	114		$	993		$	4,883
	Charge-offs	—			(3		)	—			(13		)	—			(17		)	—			(33		)
	Recoveries	20			15			3			8			—			10			—			56
	Provision	(146		)	85			(4		)	(41		)	(1		)	4			294			191
	Ending balance ALLR	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	Six Months Ended June 30, 2014
	Allowance for loan loss reserve:
	Beginning balance ALLR	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
	Charge-offs	(1		)	(65		)	—			(16		)	—			(33		)	—			(115		)
	Recoveries	74			59			6			14			—			24			—			177
	Provision	(292		)	297			(46		)	(169		)	(10		)	(28		)	622			374
	Ending balance ALLR	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	At June 30,2014
	Loans:
	Ending balance	$	274,500		$	89,515		$	10,550		$	105,868		$	7,464		$	15,043		$	—		$	502,940
	Ending balance ALLR	(1,630		)	(1,669		)	(40		)	(345		)	(15		)	(111		)	(1,287		)	(5,097		)
	Net loans	$	272,870		$	87,846		$	10,510		$	105,523		$	7,449		$	14,932		$	(1,287	)	$	497,843
	Ending balance ALLR:
	Individually evaluated	$	189		$	1,110		$	—		$	118		$	—		$	21		$	—		$	1,438
	Collectively evaluated	1,441			559			40			227			15			90			1,287			3,659
	Total	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	Ending balance Loans:
	Individually evaluated	$	609		$	1,744		$	—		$	622		$	—		$	64		$	—		$	3,039
	Collectively evaluated	273,891			87,771			10,550			105,246			7,464			14,979			—			499,901
	Total	$	274,500		$	89,515		$	10,550		$	105,868		$	7,464		$	15,043		$	—		$	502,940
	Impaired loans, by definition, are individually evaluated.
	A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2013 is as follows (dollars in thousands):
					Commercial,						One to four
		Commercial			financial and			Commercial			family residential			Consumer
	Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
	Beginning balance ALLR	$	3,267		$	692		$	125		$	980		$	—		$	—		$	154		5,218
	Charge-offs	(1,539		)	(632		)	—			(141		)	—			(120		)	—			(2,432		)
	Recoveries	92			56			2			26			2			22			—			200
	Provision	29			1,262			(47		)	(349		)	23			246			511			1,675
	Ending balance ALLR	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
	Loans:
	Ending balance	$	268,809		$	79,655		$	10,904		$	103,768		$	6,895		$	13,801		$	—		$	483,832
	Ending balance ALLR	(1,849		)	(1,378		)	(80		)	(516		)	(25		)	(148		)	(665		)	(4,661		)
Net loans	$	266,960		$	78,277		$	10,824		$	103,252		$	6,870		$	13,653		$	(665	)	$	479,171
Ending balance ALLR:
Individually evaluated	$	99		$	891		$	—		$	103		$	—		$	18		$	—		$	1,111
Collectively evaluated	1,750			487			80			413			25			130			665			3,550
Total	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
Ending balance Loans:
Individually evaluated	$	649		$	1,830		$	—		$	385		$	—		$	42		$	—		$	2,906
Collectively evaluated	268,160			77,825			10,904			103,383			6,895			13,759			—			480,926
Total	$	268,809		$	79,655		$	10,904		$	103,768		$	6,895		$	13,801		$	—		$	483,832
A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2013 is as follows (dollars in thousands):
				Commercial,						One to four
Three Months Ended June 30, 2013	Commercial			financial and			Commercial			family residential			Consumer
Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
Beginning balance ALLR	$	2,964		$	847		$	118		$	990		$	—		$	13		$	105		$	5,037
Charge-offs	(21		)	(4		)	—			(6		)	—			(5		)	—			(36		)
Recoveries	29			30			1			6			—			10			—			76
Provision	(311		)	217			(22		)	(113		)	—			(5		)	334			100
Ending balance ALLR	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
Six Months Ended June 30, 2013
Allowance for loan loss reserve:
Beginning balance ALLR	$	3,267		$	692		$	125		$	980		$	—		$	—		$	154		$	5,218
Charge-offs	(456		)	(76		)	—			(13		)	—			(71		)	—			(616		)
Recoveries	41			33			2			11			—			13			—			100
Provision	(191		)	441			(30		)	(101		)	—			71			285			475
Ending balance ALLR	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
At June 30,2013
Loans:
Ending balance	$	243,363		$	84,145		$	16,053		$	94,254		$	4,305		$	13,435		$	—		$	455,555
Ending balance ALLR	(2,661		)	(1,090		)	(97		)	(877		)	—			(13		)	(439		)	(5,177		)
Net loans	$	240,702		$	83,055		$	15,956		$	93,377		$	4,305		$	13,422		$	(439	)	$	450,378
Ending balance ALLR:
Individually evaluated	$	1,396		$	643		$	8		$	148		$	—		$	13		$	—		$	2,208
Collectively evaluated	1,265			447			89			729			—			—			439			2,969
Total	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
Ending balance Loans:
Individually evaluated	$	14,499		$	6,668		$	917		$	640		$	—		$	22		$	—		$	22,746
Collectively evaluated	228,864			77,477			15,136			93,614			4,305			13,413			—			432,809
Total	$	243,363		$	84,145		$	16,053		$	94,254		$	4,305		$	13,435		$	—		$	455,555
Impaired loans, by definition, are individually evaluated.
As part of the management of the loan portfolio, risk ratings are assigned to all commercial loans.  Through the loan review process, ratings are modified as believed to be appropriate to reflect changes in the credit.  Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans.
To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan’s credit risk rating on a scale of 1 through 8, with higher scores indicating higher risk.  The credit risk rating structure used is shown below.
In the context of the credit risk rating structure, the term Classified is defined as a problem loan which may or may not be in a nonaccrual status, dependent upon current payment status and collectability.
Strong (1)
Borrower is not vulnerable to sudden economic or technological changes.  They have “strong” balance sheets and are within an industry that is very typical for our markets or type of lending culture.  Borrowers also have “strong” financial and cash flow performance and excellent collateral (low loan to value or readily available to liquidate collateral) in conjunction with an impeccable repayment history.
Good (2)
Borrower shows limited vulnerability to sudden economic change.  These borrowers have “above average” financial and cash flow performance and a very good repayment history.  The balance sheet of the company is also very good as compared to peer and the company is in an industry that is familiar to our markets or our type of lending.  The collateral securing the deal is also very good in terms of its type, loan to value, etc.
Average (3)
Borrower is typically a well-seasoned business, however may be susceptible to unfavorable changes in the economy, and could be somewhat affected by seasonal factors.  The borrowers within this category exhibit financial and cash flow performance that appear “average” to “slightly above average” when compared to peer standards and they show an adequate payment history.  Collateral securing this type of credit is good, exhibiting above average loan to values, etc.
Acceptable/Acceptable Watch (4)
A borrower within this category exhibits financial and cash flow performance that appear adequate and satisfactory when compared to peer standards and they show a satisfactory payment history.  The collateral securing the request is within supervisory limits and overall is acceptable.  Borrowers rated acceptable could also be newer businesses that are typically susceptible to unfavorable changes in the economy, and more than likely could be affected by seasonal factors.
Special Mention (5)
The borrower may have potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Examples of this type of credit include a start-up company fully based on projections, a documentation issue that needs to be corrected or a general market condition that the borrower is working through to get corrected.
Substandard (6)
Substandard loans are classified assets exhibiting a number of well-defined weaknesses that jeopardize normal repayment.  The assets are no longer adequately protected due to declining net worth, lack of earning capacity, or insufficient collateral offering the distinct possibility of the loss of a portion of the loan principal.  Loans classified as substandard clearly represent troubled and deteriorating credit situations requiring constant supervision.
Doubtful (7)
Loans in this category exhibit the same, if not more pronounced weaknesses used to describe the substandard credit.  Loans are frozen with collection improbable.  Such loans are not yet rated as Charge-off because certain actions may yet occur which would salvage the loan.
Charge-off/Loss (8)
Loans in this category are largely uncollectible and should be charged against the loan loss reserve immediately.
General Reserves:
For loans with a credit risk rating of 5 or better and any loans with a risk rating of 6 or 7 with no specific reserve, reserves are established based on the type of loan collateral, if any, and the assigned credit risk rating.  Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of current environmental factors and economic trends, all of which may be susceptible to significant change.
Using a historical average loss by loan type as a base, each loan graded as higher risk is assigned a specific percentage.  Within the commercial loan portfolio, the historical loss rates are used for specific industries such as hospitality, gaming, petroleum, and forestry.  The residential real estate and consumer loan portfolios are assigned a loss percentage as a homogenous group.  If, however, on an individual loan the projected loss based on collateral value and payment histories are in excess of the computed allowance, the allocation is increased for the higher anticipated loss.  These computations provide the basis for the allowance for loan losses as recorded by the Corporation.
Commercial construction loans in the amount of $3.153 million, $2.951 million and $3.394 million for the periods ended June 30, 2014, December 31, 2013 and June 30, 2013, respectively did not receive a specific risk rating.  These amounts represent loans made for land development and unimproved land purchases.  Below is a breakdown of loans by risk category as of June 30, 2014 (dollars in thousands):
										-4
	-1			-2			-3			Acceptable/			-5			-6			-7			Rating
	Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
Commercial real estate	$	15		$	25,065		$	121,108		$	126,593		$	—		$	1,719		$	—		$	—		$	274,500
Commercial, financial and agricultural	2,107			4,418			31,875			46,320			—			4,795			—			—			89,515
Commercial construction	—			460			2,919			3,616			—			402			—			3,153			10,550
One to four family residential real estate	—			2,329			1,303			4,344			—			—			—			97,892			105,868
Consumer construction	—			—			—			—			—			—			—			7,464			7,464
Consumer	—			—			20			39			—			—			—			14,984			15,043
Total loans	$	2,122		$	32,272		$	157,225		$	180,912		$	—		$	6,916		$	—		$	123,493		$	502,940
Below is a breakdown of loans by risk category as of December 31, 2013 (dollars in thousands):
										-4
	-1			-2			-3			Acceptable/			-5			-6			-7			Rating
	Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
Commercial real estate	$	1,502		$	23,310		$	116,702		$	125,010		$	—		$	2,285		$	—		$	—		$	268,809
Commercial, financial and agricultural	3,741			4,348			27,455			39,070			—			5,041			—			—			79,655
Commercial construction	30			479			2,702			4,340			—			402			—			2,951			10,904
One-to-four family residential real estate	251			3,074			1,275			4,482			—			710			—			93,976			103,768
Consumer construction	—			—			—			—			—			—			—			6,895			6,895
Consumer	10			—			37			43			—			30			—			13,681			13,801
Total loans	$	5,534		$	31,211		$	148,171		$	172,945		$	—		$	8,468		$	—		$	117,503		$	483,832
Below is a breakdown of loans by risk category as of June 30, 2013 (dollars in thousands):
										-4
	-1			-2			-3			Acceptable/			-5			-6			-7			Rating
	Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
Commercial real estate	$	2,294		$	22,319		$	86,404		$	111,180		$	16,446		$	4,531		$	189		$	—		$	243,363
Commercial, financial and agricultural	4,997			5,253			21,780			46,214			4,176			1,725			—			—			84,145
Commercial construction	—			723			5,119			5,660			755			402			—			3,394			16,053
One to four family residential real estate	—			1,954			2,465			4,565			—			—			—			85,270			94,254
Consumer construction	—			—			—			—			—			—			—			4,305			4,305
Consumer	—			109			36			470			—			—			—			12,820			13,435
Total loans	$	7,291		$	30,358		$	115,804		$	168,089		$	21,377		$	6,658		$	189		$	105,789		$	455,555
Impaired Loans
Nonperforming loans are those which are contractually past due 90 days or more as to interest or principal payments, on nonaccrual status, or loans, the terms of which have been renegotiated to provide a reduction or deferral on interest or principal.  There was no interest income recorded during impairment for the three and six months ended June 30, 2014.  Interest income that would have been recognized during these periods was $.029 million and $.053 million, respectively.  For the three and six months ended June 30, 2013, the amounts that would have been recognized were $.059 million and $.117 million, respectively.
The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions.  When interest accrual is discontinued, all unpaid accrued interest is reversed.  Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due.  Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Loans are considered impaired when, based on current information and events, it is probable the Corporation will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments.  Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loans basis for other loans.  If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.  Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.
The following is a summary of impaired loans and their effect on interest income (dollars in thousands):
																Three Months Ended						Six Months Ended
							QTD			YTD						Interest Income			Interest Income			Interest Income			Interest Income
	Nonaccrual			Accrual			Average			Average			Related			Recognized			on			Recognized			on
June  30, 2014	Basis			Basis			Investment			Investment			Valuation Reserve			During Impairment			Accrual Basis			During Impairment			Accrual Basis
With no valuation reserve:
Commercial real estate	$	278		$	—		$	279		$	304		$	—		$	—		$	4		$	—		$	8
Commercial, financial and agricultural	82			—			97			140			—			—			2			—			4
Commercial construction	—			—			—			—			—			—			—			—			—
One to four family residential real estate	37			—			38			97			—			—			—			—			3
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	—			—			3			6			—			—			—			—			—
With a valuation reserve:
Commercial real estate	$	176		$	—		$	176		$	176		$	104		$	—		$	3		$	—		$	7
Commercial, financial and agricultural	1,726			—			1,157			918			1,110			—			13			—			20
Commercial construction	—			—			—			—			—			—			—			—			—
One to four family residential real estate	346			—			279			299			100			—			7			—			11
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	7			—			7			8			1			—			—			—			—
Total:
Commercial real estate	$	454		$	—		$	455		$	480		$	104		$	—		$	7		$	—		$	15
Commercial, financial and agricultural	1,808			—			1,254			1,058			1,110			—			15			—			24
Commercial construction	—			—			—			—			—			—			—			—			—
One to four family residential real estate	383			—			317			396			100			—			7			—			14
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	7			—			10			14			1			—			—			—			—
Total	$	2,652		$	—		$	2,036		$	1,948		$	1,315		$	—		$	29		$	—		$	53
													Interest Income			Interest Income
For the Year Ended:	Nonaccrual			Accrual			Average			Related			Recognized			on
December 31, 2013	Basis			Basis			Investment			Valuation Reserve			During Impairment			Accrual Basis
With no valuation reserve:
Commercial real estate	$	513		$	—		$	3,045		$	—		$	—		$	153
Commercial, financial and agricultural	59			—			505			—			—			13
Commercial construction	—			—			626			—			—			3
One to four family residential real estate	361			—			625			—			—			16
Consumer construction	—			—			—			—			—			—
Consumer	—			—			2			—			—			—
With a valuation reserve:
Commercial real estate	$	59		$	—		$	71		$	14		$	—		$	5
Commercial, financial and agricultural	752			—			834			265			—			18
Commercial construction	—			—			—			—			—			—
One to four family residential real estate	250			—			261			78			—			20
Consumer construction	—			—			—			—			—			—
Consumer	30			—			30			13			—			—
Total:
Commercial real estate	$	572		$	—		$	3,116		$	14		$	—		$	158
Commercial, financial and agricultural	811			—			1,339			265			—			31
Commercial construction	—			—			626			—			—			3
One to four family residential real estate	611			—			886			78			—			36
Consumer construction	—			—			—			—			—			—
Consumer	30			—			32			13			—			—
Total	$	2,024		$	—		$	5,999		$	370		$	—		$	228
																Three Months Ended						Six Months Ended
							QTD			YTD						Interest Income			Interest Income			Interest Income			Interest Income
	Nonaccrual			Accrual			Average			Average			Related			Recognized			on			Recognized			on
June  30, 2013	Basis			Basis			Investment			Investment			Valuation Reserve			During Impairment			Accrual Basis			During Impairment			Accrual Basis
With no valuation reserve:
Commercial real estate	$	728		$	—		$	733		$	797		$	—		$	—		$	14		$	—		$	26
Commercial, financial and agricultural	176			—			206			248			—			—			3			—			6
Commercial construction	—			—			—			275			—			—			—			—			3
One to four family residential real estate	94			—			133			165			—			—			3			—			5
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	9			—			2			1			—			—			—			—			—
With a valuation reserve:
Commercial real estate	$	2,329		$	—		$	2,308		$	2,298		$	1,240		$	—		$	30		$	—		$	60
Commercial, financial and agricultural	341			—			267			199			106			—			4			—			6
Commercial construction	—			—			—			—			—			—			—			—			—
One to four family residential real estate	306			—			303			289			126			—			5			—			11
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	—			—			—			—			—			—			—			—			—
Total:
Commercial real estate	$	3,057		$	—		$	3,041		$	3,095		$	1,240		$	—		$	44		$	—		$	86
Commercial, financial and agricultural	517			—			473			447			106			—			7			—			12
Commercial construction	—			—			—			275			—			—			—			—			3
One to four family residential real estate	400			—			436			454			126			—			8			—			16
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	9			—			2			1			—			—			—			—			—
Total	$	3,983		$	—		$	3,952		$	4,272		$	1,472		$	—		$	59		$	—		$	117
A summary of past due loans at June 30, 2014, December 31, 2013 and June 30, 2013 is as follows (dollars in thousands):
	June 30,									December 31,									June 30,
	2014									2013									2013
	30-89 days			90+ days						30-89 days			90+ days						30-89 days			90+ days
	Past Due			Past Due/						Past Due			Past Due/						Past Due			Past Due/
	(accruing)			Nonaccrual			Total			(accruing)			Nonaccrual			Total			(accruing)			Nonaccrual			Total
Commercial real estate	$	602		$	454		$	1,056		$	—		$	572		$	572		$	146		$	3,057		$	3,203
Commercial, financial and agricultural	5			1,808			1,813			4			811			815			92			517			609
Commercial construction	—			—			—			20			—			20			—			—			—
One to four family residential real estate	141			383			524			201			611			812			100			400			500
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	57			7			64			14			30			44			18			9			27
Total past due loans	$	805		$	2,652		$	3,457		$	239		$	2,024		$	2,263		$	356		$	3,983		$	4,339
A roll-forward of nonperforming loan activity for the three months ended June 30, 2014 (dollars in thousands):
	For the Three Months Ended June  30, 2014
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	455		$	730		$	—		$	299		$	—		$	7		$	1,491
Principal payments	(3		)	(63		)	—			(14		)	—			—			(80		)
Charge-offs	—			—			—			—			—			(6		)	(6		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	—			—			—			—			—			—			—
Transfers to accruing	—			—			—			—			—			—			—
Transfers from accruing	—			1,139			—			89			—			6			1,234
Other	2			2			—			9			—			—			13
Ending balance	$	454		$	1,808		$	—		$	383		$	—		$	7		$	2,652
A roll-forward of nonperforming loan activity for the three months ended June 30, 2013 (dollars in thousands):
	For the Three Months Ended June  30, 2013
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	2,963		$	424		$	—		$	446		$	—		$	—		$	3,833
Principal payments	(31		)	(66		)	—			(16		)	—			—			(113		)
Charge-offs	—			—			—			(6		)	—			(4		)	(10		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	—			—			—			(38		)	—			—			(38		)
Transfers to accruing	—			—			—			—			—			—			—
Transfers from accruing	126			179			—			14			—			13			332
Other	(1		)	(20		)	—			—			—			—			(21		)
Ending balance	$	3,057		$	517		$	—		$	400		$	—		$	9		$	3,983
A roll-forward of nonperforming loan activity for the first six months ended June 30, 2014 (dollars in thousands):
	For the Six Months Ended June 30, 2014
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	572		$	811		$	—		$	611		$	—		$	30		$	2,024
Principal payments	(102		)	(81		)	—			(22		)	—			(4		)	(209		)
Charge-offs	—			(53		)	—			(3		)	—			(25		)	(81		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	(26		)	—			—			(256		)	—			—			(282		)
Transfers to accruing	—			(10		)	—			(127		)	—			—			(137		)
Transfers from accruing	—			1,139			—			171			—			6			1,316
Other	10			2			—			9			—			—			21
Ending balance	$	454		$	1,808		$	—		$	383		$	—		$	7		$	2,652
A roll-forward of nonperforming loan activity for the first six months ended June 30, 2013 (dollars in thousands):
	For the Six Months Ended June 30, 2013
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	3,071		$	436		$	675		$	505		$	—		$	—		$	4,687
Principal payments	(148		)	(68		)	(100		)	(65		)	—			—			(381		)
Charge-offs	(329		)	(72		)	—			(13		)	—			(4		)	(418		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	—			—			(580		)	(107		)	—			—			(687		)
Transfers to accruing	—			—			—			—			—			—			—
Transfers from accruing	443			241			—			76			—			13			773
Other	20			(20		)	5			4			—			—			9
Ending balance	$	3,057		$	517		$	—		$	400		$	—		$	9		$	3,983
A roll-forward of nonperforming loan activity during the year ended December 31, 2013 (dollars in thousands):
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	3,071		$	436		$	675		$	505		$	—		$	—		$	4,687
Principal payments	(1,478		)	(319		)	(100		)	(88		)	—			(2		)	(1,987		)
Charge-offs	(1,304		)	(616		)	—			(141		)	—			(4		)	(2,065		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	(208		)	(37		)	(580		)	(107		)	—			—			(932		)
Transfers to accruing	—			—			—			—			—			—			—
Transfers from accruing	443			1,346			—			434			—			36			2,259
Other	48			1			5			8			—			—			62
Ending balance	$	572		$	811		$	—		$	611		$	—		$	30		$	2,024
Troubled Debt Restructuring
Troubled debt restructurings (“TDR”) are determined on a loan-by-loan basis.  Generally restructurings are related to interest rate reductions, loan term extensions and short term payment forbearance as means to maximize collectability of troubled credits.  If a portion of the TDR loan is uncollectible (including forgiveness of principal), the uncollectible amount will be charged off against the allowance at the time of the restructuring.  In general, a borrower must make at least six consecutive timely payments before the Corporation would consider a return of a restructured loan to accruing status in accordance with FDIC guidelines regarding restoration of credits to accrual status.
The Corporation has, in accordance with generally accepted accounting principles and per recently enacted accounting standard updates, evaluated all loan modifications to determine the fair value impact of the underlying asset.  The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for collateral dependent loans, to the fair value of the collateral.
A summary of troubled debt restructurings for the periods indicated is as follows (dollars in thousands):
	June 30,					December 31,					June 30,
	2014					2013					2013
	Number of		Recorded			Number of		Recorded			Number of		Recorded
	Modifications		Investment			Modifications		Investment			Modifications		Investment
Commercial real estate	—		$	—		—		$	—		—		$	—
Commercial, financial and agricultural	—		—			1		528			—		—
Commercial construction	—		—			—		—			—		—
One to four family residential real estate	1		89			—		—			—		—
Consumer construction	—		—			—		—			—		—
Consumer	—		—			—		—			—		—
Total troubled debt restructurings	1		$	89		1		$	528		—		$	—
A roll-forward of troubled debt restructuring during the three months ended June 30, 2014 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	1,009		$	1,186		$	858		$	187		$	—		$	3,240
Principal payments	(2		)	—			—			—			—			(2		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transferred out of TDR	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			(89		)	—			(89		)
Ending Balance	$	1,007		$	1,186		$	858		$	98		$	—		$	3,149
NONACCRUAL
Beginning balance	$	—		$	508		$	—		$	—		$	—		$	508
Principal payments	—			—			—			—			—			—
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			89			—			89
Ending Balance	$	—		$	508		$	—		$	89		$	—		$	597
TOTALS
Beginning balance	$	1,009		$	1,694		$	858		$	187		$	—		$	3,748
Principal payments	(2		)	—			—			—			—			(2		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers out of TDRs	—			—			—			—			—			—
Tansfers to nonaccrual	—			—			—			(89		)	—			(89		)
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			89			—			89
Ending Balance	$	1,007		$	1,694		$	858		$	187		$	—		$	3,746
A roll-forward of troubled debt restructuring during the three months ended June 30, 2013 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,588		$	2,174		$	858		$	100		$	—		$	6,720
Principal payments	(25		)	—			—			—			—			(25		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transferred out of TDRs	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			—			—			—
Ending Balance	$	3,563		$	2,174		$	858		$	100		$	—		$	6,695
NONACCRUAL
Beginning balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
Principal payments	—			—			—			—			—			—
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
TOTALS
Beginning balance	$	5,757		$	2,174		$	858		$	206		$	—		$	8,995
Principal payments	(25		)	—			—			—			—			(25		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers out of TDRs	—			—			—			—			—			—
Tansfers to nonaccrual	—			—			—			—			—			—
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	5,732		$	2,174		$	858		$	206		$	—		$	8,970
A roll-forward of troubled debt restructuring during the six months ended June 30, 2014 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,520		$	1,186		$	858		$	99		$	—		$	5,663
Principal payments	(2,513		)	—			—			(3		)	—			(2,516		)
Charge-offs	—															—
Advances	—															—
New restructured	—															—
Transferred out of TDRs	—															—
Transfers from accruing	—			—			—			91			—			91
Transfers to nonaccruing	—			—			—			(89		)	—			(89		)
Ending Balance	$	1,007		$	1,186		$	858		$	98		$	—		$	3,149
NONACCRUAL
Beginning balance	$	—		$	523		$	—		$	91		$	—		$	614
Principal payments	—			(15		)	—			—			—			(15		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers to accruing	—			—			—			(91		)	—			(91		)
Transfers from accruing	—			—			—			89			—			89
Ending Balance	$	—		$	508		$	—		$	89		$	—		$	597
TOTALS
Beginning balance	$	3,520		$	1,709		$	858		$	190		$	—		$	6,277
Principal payments	(2,513		)	(15		)	—			(3		)	—			(2,531		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers out of TDR	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			(89		)	—			(89		)
Transfers to accruing	—			—			—			89			—			89
Transfer from accruing	—			—			—			—			—			—
Ending Balance	$	1,007		$	1,694		$	858		$	187		$	—		$	3,746
A roll-forward of troubled debt restructuring during the six months ended June 30, 2013 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,611		$	1,221		$	858		$	102		$	—		$	5,792
Principal payments	(48		)	—			—			(2		)	—			(50		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			953			—			—			—			953
Transferred out of TDRs	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			—			—			—
Ending Balance	$	3,563		$	2,174		$	858		$	100		$	—		$	6,695
NONACCRUAL
Beginning balance	$	2,162		$	—		$	—		$	102		$	—		$	2,264
Principal payments	—			—			—			—			—			—
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	7			—			—			4			—			11
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
TOTALS
Beginning balance	$	5,773		$	1,221		$	858		$	204		$	—		$	8,056
Principal payments	(48		)	—			—			(2		)	—			(50		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	7			953			—			4			—			964
Transfers out of TDRs	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			—			—			—
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	5,732		$	2,174		$	858		$	206		$	—		$	8,970
A roll-forward of troubled debt restructuring during the year ended December 31, 2013 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,611		$	1,221		$	858		$	102		$	—		$	5,792
Principal payments	(91		)	(460		)				(3		)	—			(554		)
Charge-offs	—			—						—			—			—
Advances	—			—						—			—			—
New restructured	—			953						—			—			953
Transferred out of TDR	—			—						—			—			—
Transfers to nonaccrual	—			(528		)				—			—			(528		)
Ending Balance	$	3,520		$	1,186		$	858		$	99		$	—		$	5,663
NONACCRUAL
Beginning balance	$	2,162		$	—		$	—		$	102		$	—		$	2,264
							—
Principal payments	(1,376		)	(5		)	—			(15		)	—			(1,396		)
Charge-offs	(793		)	—			—			—			—			(793		)
Advances	—			—			—			—			—			—
New restructured	7			528			—			4			—			539
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	—		$	523		$	—		$	91		$	—		$	614
TOTALS
Beginning balance	$	5,773		$	1,221		$	858		$	204		$	—		$	8,056
Principal payments	(1,467		)	(465		)	—			(18		)	—			(1,950		)
Charge-offs	(793		)	—			—			—			—			(793		)
Advances	—			—			—			—			—			—
New restructured	7			1,481			—			4			—			1,492
Transfers out of TDRs	—			—			—			—			—			—
Tansfers to nonaccrual	—			(528		)	—			—			—			(528		)
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	3,520		$	1,709		$	858		$	190		$	—		$	6,277
Insider Loans
The Bank, in the ordinary course of business, grants loans to the Corporation’s executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands):
	June 30,			December 31,			June 30,
	2014			2013			2013
Loans outstanding, beginning of period	$	9,043		$	11,297		$	11,297
New loans	—			496			496
Net activity on revolving lines of credit	1,178			(266		)	(25		)
Principal payments	(1,523		)	(2,484		)	(1,298		)
Loans outstanding, end of period	$	8,698		$	9,043		$	10,470
There were no loans to related parties classified substandard as of June 30, 2014, December 31, 2013 or June 30, 2013.  In addition to the outstanding balances above, there were unfunded commitments of $.575 million to related parties at June 30, 2014.

MORTGAGE_SERVICING_RIGHTS

MORTGAGE SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2014
MORTGAGE SERVICING RIGHTS	'
MORTGAGE SERVICING RIGHTS	'
	6.     MORTGAGE SERVICING RIGHTS
	Mortgage servicing rights (“MSRs”) are recorded when loans are sold in the secondary market with servicing retained.  As of June 30, 2014, the Corporation had obligations to service approximately $138 million of residential first mortgage loans.  The valuation is based upon the net present value of the projected revenues over the expected life of the loans being serviced, as reduced by estimated internal costs to service these loans.  The fair value of the capitalized servicing rights approximates the carrying value.  The key economic assumptions used in determining the fair value of the mortgage servicing rights include an annual constant prepayment speed of 10.13% and a discount rate of 8.16% for June 30, 2014.
	The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands):
		Six Months Ended			Year Ended			Six Months Ended
		June 30,			December 31,			June 30,
		2014			2013			2013
	Balance at beginning of period	$	1,129		$	638		$	638
	Additions from loans sold with servicing retained	75			675			225
	Amortization	(143		)	(184		)	(80		)
	Balance at end of period	$	1,061		$	1,129		$	783

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2014
BORROWINGS	'
BORROWINGS	'
	7.              BORROWINGS
	Borrowings consist of the following at June 30, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):
		June 30,		December 31,		June 30,
		2014		2013		2013
	Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018	$	35,000	$	35,000	$	35,000
	Correspondent bank line of credit - holding company	500		2,000		—
	Bank line of credit - wholly-owned asset based lending subsidiary	2,835		—		—
	Correspondent bank term note, current floor rate of 4%, maturing March 22, 2017	2,900		—		—
	USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1%	852		852		925
		$	42,087	$	37,852	$	35,925
	The Federal Home Loan Bank borrowings are collateralized at June 30, 2014 by the following:  a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $44.140 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $4.378 million and $4.530 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.060 million.  Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis in effect as of June 30, 2014.
	The USDA Rural Development borrowing is collateralized by loans totaling $.125 million originated and held by the Corporation’s wholly owned subsidiary, First Rural Relending, and an assignment of a demand deposit account in the amount of $.798 million, and guaranteed by the Corporation.
	The Corporation currently has two banking borrowing relationships.  The first relationship consists of a line of credit and a term note.  The line of credit bears interest at 90-day LIBOR plus 2.75%, with a floor rate of 4.00% and has an initial term that expires on March 22, 2015.  The term note bears the same interest and matures on March 22, 2017.  The second borrowing relationship consists of a $10 million revolving line of credit, which can be increased to $25 million upon request, used to support asset based lending activities at a wholly-owned subsidiary that currently bears interest at 90-day LIBOR plus 2.75% and has an initial term that expires on September 10, 2016.

STOCK_COMPENSATION_PLANS

STOCK COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2014
STOCK COMPENSATION PLANS	'
STOCK COMPENSATION PLANS	'
	8.     STOCK COMPENSATION PLANS
	On May 22, 2012, the Company’s shareholders approved the Mackinac Financial Corporation 2012 Incentive Compensation Plan, under which current and prospective employees, non-employee directors and consultants may be awarded incentive stock options, non-statutory stock options, shares of restricted stock units (“RSUs”), or stock appreciation rights.  The aggregate number of shares of the Company’s common stock issuable under the plan is 575,000, which included 392,152 option shares outstanding at that time.
	The Corporation, in August 2012 and March 2014, granted Restricted Stock Units (“RSUs”) to members of the Board of Directors and Management.  In August 2012, 148,500 RSUs were granted at a market value of $7.91 and will vest equally over a four year term.  In exchange for the grant of the August 2012 RSUs, various previously issued stock option awards were surrendered.  In March 2014, 52,774 RSUs were granted at a market value of $12.95, also vesting equally over a four year term.  The RSUs were awarded at no cost to the employee.  Compensation cost to be recognized over the four-year vesting periods, is $1.175 million and $.683 million, respectively.  On August 31, 2013, the Corporation issued 37,125 shares of its common stock for vested RSUs.  As of June 30, 2014, RSUs totaling 164,149 were unvested and unrecognized compensation expense was $1.270 million.
	A summary of stock option transactions for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013, is as follows:
			June 30,		December 31,			June 30,
			2014		2013			2013
	Outstanding shares at beginning of year		237,152		242,152			242,152
	Granted during the period		—		—			—
	Exercised during the period		—		—			—
	Expired / forfeited during the period		—		(5,000		)	—
	Outstanding shares at end of period		237,152		237,152			242,152
	Exercisable shares at end of period		124,861		124,861			126,361
	Weighted average exercise price per share at end of period		$	9.8	$	9.8		$	9.88
	Shares available for grant at end of period		—		—			—
	There were no options granted in the first six months of 2014 and 2013.
	Following is a summary of the options outstanding and exercisable at June 30, 2014:
									Weighted Average
	Exercise			Number					Remaining
	Price			Outstanding	Exercisable		Unvested Options		Contractual Life-Years
	$	9.75		217,152	120,861		96,291		0.48
	$	10.65		10,000	2,000		8,000		1.04
	$	12.00		10,000	2,000		8,000		2.46
				237,152	124,861		112,291		0.59
	Options issued since the Corporation’s recapitalization in December of 2004 call for 20% immediate vesting upon issue and subsequent vesting to occur over a two to five year period, based upon the market value appreciation of the underlying Corporation’s stock.  Compensation related to these options was expensed based upon the vesting period without consideration given to market value appreciation.  There are no future compensation expenses related to existing option programs.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	9.     INCOME TAXES
	A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized.  The Corporation, as of June 30, 2014 had a net operating loss and tax credit carryforwards for tax purposes of approximately $17.2 million, and $2.4 million, respectively.  The net operating loss carryforwards expire twenty years from the date they originated.  These carryforwards, if not utilized, will begin to expire in the year 2023.  A portion of the NOL, approximately $10.3 million, and all of the credit carryforwards are subject to the limitations for utilization as set forth in Section 382 of the Internal Revenue Code.  The annual limitation is $1.400 million for the NOL and the equivalent value of tax credits, which is approximately $.476 million.  These limitations for use were established in conjunction with the recapitalization of the Corporation in December 2004.
	The Corporation has reported deferred tax assets of $9.097 million at June 30, 2014, which is net of a valuation allowance of $.760 million.  Management evaluated the deferred tax valuation allowance as of June 30, 2014 and determined that no adjustment to the valuation was warranted.  The remaining valuation allowance pertains to the existing tax credit carryovers, which will only be utilized after all net operating loss carryforwards.  Since a portion of these tax credits may expire before that occurs, a valuation allowance for these has been established.  The Corporation will continue to evaluate the future benefits from these carryforwards in order to determine if any adjustment to the deferred tax asset is warranted.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS	'
FAIR VALUE MEASUREMENTS	'
	10.  FAIR VALUE MEASUREMENTS
	Fair value estimates, methods, and assumptions are set forth below for the Corporation’s financial instruments:
	Cash, cash equivalents, and interest-bearing deposits - The carrying values approximate the fair values for these assets.
	Securities - Fair values are based on quoted market prices where available.  If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
	Federal Home Loan Bank stock — Federal Home Loan Bank stock is carried at cost, which is its redeemable value and approximates its fair value, since the market for this stock is limited.
	Loans - Fair values are estimated for portfolios of loans with similar financial characteristics.  Loans are segregated by type such as commercial, residential mortgage, and other consumer.  The fair value of loans is calculated by discounting scheduled cash flows using discount rates reflecting the credit and interest rate risk inherent in the loan.
	The methodology in determining fair value of nonaccrual loans is to average them into the blended interest rate at 0% interest.  This has the effect of decreasing the carrying amount below the risk-free rate amount and, therefore, discounts the estimated fair value.
	Impaired loans are measured at the estimated fair value of the expected future cash flows at the loan’s effective interest rate or the fair value of the collateral for loans which are collateral dependent.  Therefore, the carrying values of impaired loans approximate the estimated fair values for these assets.
	Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits and savings, is equal to the amount payable on demand at the reporting date.  The fair value of time deposits is based on the discounted value of contractual cash flows applying interest rates currently being offered on similar time deposits.
	Borrowings - Rates currently available for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.  The fair value of borrowed funds due on demand is the amount payable at the reporting date.
	Accrued interest - The carrying amount of accrued interest approximates fair value.
	Off-balance-sheet instruments - The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the current interest rates, and the present creditworthiness of the counterparties.  Since the differences in the current fees and those reflected to the off-balance-sheet instruments at year-end are immaterial, no amounts for fair value are presented.
	The following table presents information for financial instruments at June 30, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):
				June 30, 2014						December 31, 2013						June 30, 2013
		Level in Fair		Carrying			Estimated			Carrying			Estimated			Carrying			Estimated
		Value Hierarchy		Amount			Fair Value			Amount			Fair Value			Amount			Fair Value
	Financial assets:
	Cash and cash equivalents	Level 1		$	20,746		$	20,746		$	18,219		$	18,219		$	26,219		$	26,219
	Interest-bearing deposits	Level 2		235			235			10			10			10			10
	Securities available for sale	Level 2		47,374			47,374			44,388			44,388			47,307			47,307
	Federal Home Loan Bank stock	Level 2		3,060			3,060			3,060			3,060			3,060			3,060
	Net loans	Level 2		497,843			499,609			479,171			479,538			450,378			444,638
	Accrued interest receivable	Level 3		1,485			1,485			1,351			1,351			1,636			1,636
	Total financial assets			$	570,743		$	572,509		$	546,199		$	546,566		$	528,610		$	522,870
	Financial liabilities:
	Deposits	Level 2		$	484,016		$	485,230		$	466,299		$	465,431		$	447,907		$	446,438
	Borrowings	Level 2		42,087			42,699			37,852			37,487			35,925			35,621
	Accrued interest payable	Level 3		186			186			182			182			229			229
	Total financial liabilties			$	526,289		$	528,115		$	504,333		$	503,100		$	484,061		$	482,288
	Limitations- Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument.  These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument.  Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.  Fair value estimates are based on existing on-and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.  Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, other assets, and other liabilities.  In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
	The following is information about the Corporation’s assets and liabilities measured at fair value on a recurring basis at June 30, 2014, and the valuation techniques used by the Corporation to determine those fair values.
	Level 1:                                               In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access.
	Level 2:                                               Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly.  These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
	Level 3:                                               Level 3 inputs are unobservable inputs, including inputs available in situations where there is little, if any, market activity for the related asset or liability.
	The fair value of all investment securities at June 30, 2014 and June 30, 2013 were based on level 2 inputs.  There are no other assets or liabilities measured on a recurring basis at fair value.  For additional information regarding investment securities, please refer to “Note 4 Investment Securities.”
	The Corporation had no Level 3 assets or liabilities on a recurring basis as of June 30, 2014, December 31, 2013 or June 30, 2013.
	In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation.  The Corporation’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
	The Corporation also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis.  These assets include loans and other real estate owned.  The Corporation has estimated the fair values of these assets using Level 3 inputs, specifically discounted cash flow projections.
	Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2014
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Three Months Ended			Six Months Ended
	(dollars in thousands)	June 30, 2014			(Level 1)			(Level 2)			(Level 3)			June 30, 2014			June 30, 2014
	Assets
	Impaired loans	$	2,652		$	—		$	—		$	2,652		$	22		$	430
	Other real estate owned	1,947			—			—			1,947			14			14
														$	36		$	444
	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2013
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Year Ended
	(dollars in thousands)	December 31, 2013			(Level 1)			(Level 2)			(Level 3)			December 31, 2013
	Assets
	Impaired loans	$	2,024		$	—		$	—		$	2,024		$	2,075
	Other real estate owned	1,884			—			—			1,884			265
														$	2,340
	Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2013
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Three Months Ended			Six Months Ended
	(dollars in thousands)	June 30, 2013			(Level 1)			(Level 2)			(Level 3)			June 30, 2013			June 30, 2013
	Assets
	Impaired loans	$	3,983		$	—		$	—		$	3,983		$	10		$	418
Other real estate owned	2,481			—			—			2,481			87			89
													$	97		$	507
The Corporation had no investments subject to fair value measurement on a nonrecurring basis.
Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired.  The Corporation estimates the fair value of the loans based on the present value of expected future cash flows using management’s best estimate of key assumptions.  These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals).

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2014
SHAREHOLDERS' EQUITY	'
SHAREHOLDERS' EQUITY	'
	11.       SHAREHOLDERS’ EQUITY
	In August 2012 the Corporation consummated the previously announced $7.000 million rights offering and the investment by Steinhardt Capital Investors, LLLP (“SCI”) by issuing 2,140,123 shares of common stock for net proceeds of $11.506 million.  Also, in August 2012, the Corporation exited the TARP Capital Purchase Program (“CPP”) when the Corporation’s 11,000 Series A Preferred Shares, issued in April, 2009 to the U.S. Treasury, were publically offered and sold.  The Corporation repurchased the 379,310 of Common Stock Warrants issued to the U.S. Treasury under the CPP in December, 2012 for $1.3 million. During 2013, the Corporation redeemed all of the outstanding Series A Preferred Shares.
	The Corporation currently has a share repurchase program.  The program is conducted under authorizations from time to time by the Board of Directors.  The Corporation repurchased 55,594 shares in 2013 and 13,700 shares in the first quarter of 2014.  The share repurchases were conducted under Board authorizations made and publically announced of $600,000 on February 27, 2013 and an additional $600,000 on December 17, 2013.  Neither of these authorizations has an expiration date.

COMMITMENTS_CONTINGENCIES_AND_

COMMITMENTS, CONTINGENCIES AND CREDIT RISK	6 Months Ended
	Jun. 30, 2014
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	'
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	'
	12.       COMMITMENTS, CONTINGENCIES AND CREDIT RISK
	Financial Instruments With Off-Balance-Sheet Risk
	The Corporation is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and standby letters of credit.  Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.
	The Corporation’s exposure to credit loss, in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit, is represented by the contractual amount of those instruments.  The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.  These commitments are as follows (dollars in thousands):
		June 30,		December 31,		June 30,
		2014		2013		2013
	Commitments to extend credit:
	Variable rate	$	54,048	$	36,039	$	37,462
	Fixed rate	18,604		15,070		19,873
	Standby letters of credit - Variable rate	5,742		5,077		3,805
	Credit card commitments - Fixed rate	3,234		3,152		3,113
		$	81,628	$	59,338	$	64,253
	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 Corporation evaluates each customer’s creditworthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the party.  Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.
	Standby letters of credit are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party.  Those guarantees are primarily issued to support public and private borrowing arrangements.  The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.  The commitments are structured to allow for 100% collateralization on all standby letters of credit.
	Credit card commitments are commitments on credit cards issued by the Corporation’s subsidiary and serviced by other companies.  These commitments are unsecured.
	Legal Proceedings and Contingencies
	In the normal course of business, the Corporation is involved in various legal proceedings.  For expanded discussion on the Corporation’s legal proceedings, see Part II, Item 1, “Legal Proceedings” in this report.
	Concentration of Credit Risk
	The Bank grants commercial, residential, agricultural, and consumer loans throughout Michigan.  The Bank’s most prominent concentration in the loan portfolio relates to commercial real estate loans to operators of nonresidential buildings.  This concentration at June 30, 2014 represents $103.598 million, or 27.66%, compared to $95.510 million, or 27.80%, of the commercial loan portfolio on June 30, 2013.  The remainder of the commercial loan portfolio is diversified in such categories as hospitality and tourism, real estate agents and managers, new car dealers, gaming, petroleum, forestry, agriculture and construction.  Due to the diversity of the Bank’s locations, the ability of debtors of residential and consumer loans to honor their obligations is not tied to any particular economic sector.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2014
SUBSEQUENT EVENT	'
SUBSEQUENT EVENT	'
	13.       SUBSEQUENT EVENT
	On July 18, 2014, the Corporation announced the signing of a definitive agreement to acquire Peninsula Financial Corporation (“Peninsula”) for $13.285 million.  The purchase price of Peninsula contemplates a special dividend to Peninsula shareholders prior to the consummation that would reduce the acquired equity to $10.5 million.  Peninsula is headquartered in Marquette County, Michigan and is the parent of Peninsula Bank with June 30 assets of approximately $132 million and six banking offices.  The consummation of this transaction is expected to occur late in the third or early in the fourth quarter of 2014.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Basis of Presentation	'
	Basis of Presentation
	The unaudited condensed consolidated financial statements of Mackinac Financial Corporation (the “Corporation”) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the six-month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.  The unaudited consolidated financial statements and footnotes thereto should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013.
	In order to properly reflect some categories of other income and other expenses, reclassifications of expense and income items have been made to prior period numbers.  The “net” other income and other expenses was not changed due to these reclassifications.
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the valuation of deferred tax assets, mortgage servicing rights and other real estate held for sale.
Allowance for Loan Losses	'
	Allowance for Loan Losses
	The allowance for loan losses includes specific allowances related to commercial loans, when they have been judged to be impaired.  A loan is impaired when, based on current information, it is probable that the Corporation will not collect all amounts due in accordance with the contractual terms of the loan agreement.  These specific allowances are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent.
	The Corporation continues to maintain a general allowance for loan losses for loans not considered impaired.  The allowance for loan losses is maintained at a level which management believes is adequate to provide for possible loan losses.  Management periodically evaluates the adequacy of the allowance using the Corporation’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, current economic conditions, and other factors.  The allowance does not include the effects of expected losses related to future events or future changes in economic conditions.  This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change.  Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely.  In addition, various regulatory agencies periodically review the allowance for loan losses.  These agencies may require additions to the allowance for loan losses based on their judgments of collectability.
	In management’s opinion, the allowance for loan losses is adequate to cover probable losses relating to specifically identified loans, as well as probable losses inherent in the balance of the loan portfolio as of the balance sheet date.
Stock Compensation Plans	'
	Stock Compensation Plans
	On May 22, 2012, the Company’s shareholders approved the Mackinac Financial Corporation 2012 Incentive Compensation Plan, under which current and prospective employees, non-employee directors and consultants may be awarded incentive stock options, non-statutory stock options, shares of restricted stock units (“RSUs”), or stock appreciation rights.  The aggregate number of shares of the Company’s common stock issuable under the plan is 575,000, which included 392,152 option shares outstanding at that time.  Awards are made at the discretion of management.  Compensation cost equal to the fair value of the award is recognized over the vesting period.
	The Corporation, in August 2012 and March 2014, granted Restricted Stock Units (“RSUs”) to members of the Board of Directors and Management.  In August 2012, 148,500 RSUs were granted at a market value of $7.91 and will vest equally over a four year term.  In exchange for the grant of these RSUs various previously issued stock option awards were surrendered.  In March 2014, 52,774 RSUs were granted at a market value of $12.95, also vesting equally over a four year term.    The RSUs were awarded at no cost to the employee.  Compensation cost to be recognized over the four —year vesting periods, is $1.175 million and $.683 million, respectively.  On August 31, 2013, the Corporation issued 37,125 shares of its common stock for vested RSUs.  As of June 30, 2014, RSUs totaling 164,149 were unvested and unrecognized compensation expense was $1.270 million.

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2014
EARNINGS PER SHARE	'
Schedule showing the computation of basic and diluted earnings per share	'
	The following shows the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (dollars in thousands, except per share data):
		Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014		2013
	(Numerator):
	Net income	$	806	$	1,260	$	1,466	$	2,073
	Preferred stock dividends and accretion of discount	—		63		—		200
	Net income available to common shareholders	$	806	$	1,197	$	1,466	$	1,873
	(Denominator):
	Weighted average shares outstanding - basic	5,527,690		5,556,133		5,529,290		5,557,842
	Effect of dilutive stock options and vesting of restricted stock units	90,001		—		55,642		—
	Weighted average shares outstanding - diluted	5,617,691		5,556,133		5,584,932		5,557,842
	Income per common share:
	Basic	$	0.15	$	0.22	$	0.27	$	0.34
	Diluted	$	0.14	$	0.22	$	0.26	$	0.34

INVESTMENT_SECURITIES_Tables

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2014
INVESTMENT SECURITIES	'
Schedule of amortized cost and estimated fair value of investment securities available for sale	'
	The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2014, December 31, 2013 and June 30, 2013 are as follows (dollars in thousands):
				Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
	June 30, 2014
	US Agencies - MBS	$	6,598	$	253	$	—		$	6,851
	US Agencies	17,755		91		(258		)	17,588
	Corporate Bonds	15,691		189		—			15,880
	Obligations of states and political subdivisions	6,441		400		(2		)	6,839
	Other	216		—		—			216
	Total securities available for sale	$	46,701	$	933	$	(260	)	$	47,374
	December 31, 2013
	US Agencies - MBS	$	7,078	$	281	$	—		$	7,359
	US Agencies	15,227		—		(372		)	14,855
	Corporate Bonds	15,862		218		(1		)	16,079
	Obligations of states and political subdivisions	5,893		202		—			6,095
	Total securities available for sale	$	44,060	$	701	$	(373	)	$	44,388
	June 30, 2013
	US Agencies - MBS	$	7,491	$	354	$	—		$	7,845
	US Agencies	15,172		74		(341		)	14,905
	Corporate Bonds	18,557		161		(45		)	18,673
	Obligations of states and political subdivisions	5,435		450		(1		)	5,884
	Total securities available for sale	$	46,655	$	1,039	$	(387	)	$	47,307

LOANS_Tables

LOANS (Tables)	6 Months Ended
	Jun. 30, 2014
LOANS	'
Schedule of composition of loans	'
	The composition of loans is as follows (dollars in thousands):
		June 30,			December 31,			June 30,
		2014			2013			2013
	Commercial real estate	$	274,500		$	268,809		$	243,363
	Commercial, financial, and agricultural	89,515			79,655			84,145
	One to four family residential real estate	105,868			103,768			94,254
	Construction :
	Consumer	7,464			6,895			4,305
	Commerical	10,550			10,904			16,053
	Consumer	15,043			13,801			13,435
	Total loans	$	502,940		$	483,832		$	455,555
Schedule of the allowance for loan losses	'
	An analysis of the allowance for loan losses for the six months ended June 30, 2014, the year ended December 31, 2013, and the six months ended June 30, 2013 is as follows (dollars in thousands):
		June 30,			December 31,			June 30,
		2014			2013			2013
	Balance at beginning of period	$	4,661		$	5,218		$	5,218
	Loans charged off	(115		)	(2,432		)	(616		)
	Recoveries on loans previously charged off	177			200			100
	Provision	374			1,675			475
	Balance at end of period	$	5,097		$	4,661		$	5,177
Schedule of breakdown of the allowance for loan losses and recorded balances in loans	'
	A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2014 is as follows (dollars in thousands):
					Commercial,						One to four
	Three Months Ended June 30, 2014	Commercial			financial and			Commercial			family residential			Consumer
	Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
	Beginning balance ALLR	$	1,756		$	1,572		$	41		$	391		$	16		$	114		$	993		$	4,883
	Charge-offs	—			(3		)	—			(13		)	—			(17		)	—			(33		)
	Recoveries	20			15			3			8			—			10			—			56
	Provision	(146		)	85			(4		)	(41		)	(1		)	4			294			191
	Ending balance ALLR	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	Six Months Ended June 30, 2014
	Allowance for loan loss reserve:
	Beginning balance ALLR	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
	Charge-offs	(1		)	(65		)	—			(16		)	—			(33		)	—			(115		)
	Recoveries	74			59			6			14			—			24			—			177
	Provision	(292		)	297			(46		)	(169		)	(10		)	(28		)	622			374
	Ending balance ALLR	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	At June 30,2014
	Loans:
	Ending balance	$	274,500		$	89,515		$	10,550		$	105,868		$	7,464		$	15,043		$	—		$	502,940
	Ending balance ALLR	(1,630		)	(1,669		)	(40		)	(345		)	(15		)	(111		)	(1,287		)	(5,097		)
	Net loans	$	272,870		$	87,846		$	10,510		$	105,523		$	7,449		$	14,932		$	(1,287	)	$	497,843
	Ending balance ALLR:
	Individually evaluated	$	189		$	1,110		$	—		$	118		$	—		$	21		$	—		$	1,438
	Collectively evaluated	1,441			559			40			227			15			90			1,287			3,659
	Total	$	1,630		$	1,669		$	40		$	345		$	15		$	111		$	1,287		$	5,097
	Ending balance Loans:
	Individually evaluated	$	609		$	1,744		$	—		$	622		$	—		$	64		$	—		$	3,039
	Collectively evaluated	273,891			87,771			10,550			105,246			7,464			14,979			—			499,901
	Total	$	274,500		$	89,515		$	10,550		$	105,868		$	7,464		$	15,043		$	—		$	502,940
	A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2013 is as follows (dollars in thousands):
					Commercial,						One to four
		Commercial			financial and			Commercial			family residential			Consumer
	Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
	Beginning balance ALLR	$	3,267		$	692		$	125		$	980		$	—		$	—		$	154		5,218
	Charge-offs	(1,539		)	(632		)	—			(141		)	—			(120		)	—			(2,432		)
	Recoveries	92			56			2			26			2			22			—			200
	Provision	29			1,262			(47		)	(349		)	23			246			511			1,675
	Ending balance ALLR	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
	Loans:
	Ending balance	$	268,809		$	79,655		$	10,904		$	103,768		$	6,895		$	13,801		$	—		$	483,832
	Ending balance ALLR	(1,849		)	(1,378		)	(80		)	(516		)	(25		)	(148		)	(665		)	(4,661		)
	Net loans	$	266,960		$	78,277		$	10,824		$	103,252		$	6,870		$	13,653		$	(665	)	$	479,171
	Ending balance ALLR:
	Individually evaluated	$	99		$	891		$	—		$	103		$	—		$	18		$	—		$	1,111
	Collectively evaluated	1,750			487			80			413			25			130			665			3,550
	Total	$	1,849		$	1,378		$	80		$	516		$	25		$	148		$	665		$	4,661
	Ending balance Loans:
	Individually evaluated	$	649		$	1,830		$	—		$	385		$	—		$	42		$	—		$	2,906
	Collectively evaluated	268,160			77,825			10,904			103,383			6,895			13,759			—			480,926
	Total	$	268,809		$	79,655		$	10,904		$	103,768		$	6,895		$	13,801		$	—		$	483,832
	A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2013 is as follows (dollars in thousands):
					Commercial,						One to four
	Three Months Ended June 30, 2013	Commercial			financial and			Commercial			family residential			Consumer
	Allowance for loan loss reserve:	real estate			agricultural			construction			real estate			construction			Consumer			Unallocated			Total
	Beginning balance ALLR	$	2,964		$	847		$	118		$	990		$	—		$	13		$	105		$	5,037
	Charge-offs	(21		)	(4		)	—			(6		)	—			(5		)	—			(36		)
	Recoveries	29			30			1			6			—			10			—			76
	Provision	(311		)	217			(22		)	(113		)	—			(5		)	334			100
	Ending balance ALLR	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
	Six Months Ended June 30, 2013
	Allowance for loan loss reserve:
	Beginning balance ALLR	$	3,267		$	692		$	125		$	980		$	—		$	—		$	154		$	5,218
	Charge-offs	(456		)	(76		)	—			(13		)	—			(71		)	—			(616		)
Recoveries	41			33			2			11			—			13			—			100
Provision	(191		)	441			(30		)	(101		)	—			71			285			475
Ending balance ALLR	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
At June 30,2013
Loans:
Ending balance	$	243,363		$	84,145		$	16,053		$	94,254		$	4,305		$	13,435		$	—		$	455,555
Ending balance ALLR	(2,661		)	(1,090		)	(97		)	(877		)	—			(13		)	(439		)	(5,177		)
Net loans	$	240,702		$	83,055		$	15,956		$	93,377		$	4,305		$	13,422		$	(439	)	$	450,378
Ending balance ALLR:
Individually evaluated	$	1,396		$	643		$	8		$	148		$	—		$	13		$	—		$	2,208
Collectively evaluated	1,265			447			89			729			—			—			439			2,969
Total	$	2,661		$	1,090		$	97		$	877		$	—		$	13		$	439		$	5,177
Ending balance Loans:
Individually evaluated	$	14,499		$	6,668		$	917		$	640		$	—		$	22		$	—		$	22,746
Collectively evaluated	228,864			77,477			15,136			93,614			4,305			13,413			—			432,809
Total	$	243,363		$	84,145		$	16,053		$	94,254		$	4,305		$	13,435		$	—		$	455,555
Schedule of breakdown of loans by risk category	'
	Below is a breakdown of loans by risk category as of June 30, 2014 (dollars in thousands):
											-4
		-1			-2			-3			Acceptable/			-5			-6			-7			Rating
		Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
	Commercial real estate	$	15		$	25,065		$	121,108		$	126,593		$	—		$	1,719		$	—		$	—		$	274,500
	Commercial, financial and agricultural	2,107			4,418			31,875			46,320			—			4,795			—			—			89,515
	Commercial construction	—			460			2,919			3,616			—			402			—			3,153			10,550
	One to four family residential real estate	—			2,329			1,303			4,344			—			—			—			97,892			105,868
	Consumer construction	—			—			—			—			—			—			—			7,464			7,464
	Consumer	—			—			20			39			—			—			—			14,984			15,043
	Total loans	$	2,122		$	32,272		$	157,225		$	180,912		$	—		$	6,916		$	—		$	123,493		$	502,940
	Below is a breakdown of loans by risk category as of December 31, 2013 (dollars in thousands):
											-4
		-1			-2			-3			Acceptable/			-5			-6			-7			Rating
		Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
	Commercial real estate	$	1,502		$	23,310		$	116,702		$	125,010		$	—		$	2,285		$	—		$	—		$	268,809
	Commercial, financial and agricultural	3,741			4,348			27,455			39,070			—			5,041			—			—			79,655
	Commercial construction	30			479			2,702			4,340			—			402			—			2,951			10,904
	One-to-four family residential real estate	251			3,074			1,275			4,482			—			710			—			93,976			103,768
	Consumer construction	—			—			—			—			—			—			—			6,895			6,895
	Consumer	10			—			37			43			—			30			—			13,681			13,801
	Total loans	$	5,534		$	31,211		$	148,171		$	172,945		$	—		$	8,468		$	—		$	117,503		$	483,832
	Below is a breakdown of loans by risk category as of June 30, 2013 (dollars in thousands):
											-4
		-1			-2			-3			Acceptable/			-5			-6			-7			Rating
		Excellent			Good			Average			Acceptable Watch			Sp. Mention			Substandard			Doubtful			Unassigned			Total
	Commercial real estate	$	2,294		$	22,319		$	86,404		$	111,180		$	16,446		$	4,531		$	189		$	—		$	243,363
	Commercial, financial and agricultural	4,997			5,253			21,780			46,214			4,176			1,725			—			—			84,145
	Commercial construction	—			723			5,119			5,660			755			402			—			3,394			16,053
	One to four family residential real estate	—			1,954			2,465			4,565			—			—			—			85,270			94,254
	Consumer construction	—			—			—			—			—			—			—			4,305			4,305
	Consumer	—			109			36			470			—			—			—			12,820			13,435
	Total loans	$	7,291		$	30,358		$	115,804		$	168,089		$	21,377		$	6,658		$	189		$	105,789		$	455,555
Summary of impaired loans and their effect on interest income	'
	The following is a summary of impaired loans and their effect on interest income (dollars in thousands):
																	Three Months Ended						Six Months Ended
								QTD			YTD						Interest Income			Interest Income			Interest Income			Interest Income
		Nonaccrual			Accrual			Average			Average			Related			Recognized			on			Recognized			on
	June  30, 2014	Basis			Basis			Investment			Investment			Valuation Reserve			During Impairment			Accrual Basis			During Impairment			Accrual Basis
	With no valuation reserve:
	Commercial real estate	$	278		$	—		$	279		$	304		$	—		$	—		$	4		$	—		$	8
	Commercial, financial and agricultural	82			—			97			140			—			—			2			—			4
	Commercial construction	—			—			—			—			—			—			—			—			—
	One to four family residential real estate	37			—			38			97			—			—			—			—			3
	Consumer construction	—			—			—			—			—			—			—			—			—
	Consumer	—			—			3			6			—			—			—			—			—
	With a valuation reserve:
	Commercial real estate	$	176		$	—		$	176		$	176		$	104		$	—		$	3		$	—		$	7
	Commercial, financial and agricultural	1,726			—			1,157			918			1,110			—			13			—			20
	Commercial construction	—			—			—			—			—			—			—			—			—
	One to four family residential real estate	346			—			279			299			100			—			7			—			11
	Consumer construction	—			—			—			—			—			—			—			—			—
	Consumer	7			—			7			8			1			—			—			—			—
	Total:
	Commercial real estate	$	454		$	—		$	455		$	480		$	104		$	—		$	7		$	—		$	15
	Commercial, financial and agricultural	1,808			—			1,254			1,058			1,110			—			15			—			24
	Commercial construction	—			—			—			—			—			—			—			—			—
	One to four family residential real estate	383			—			317			396			100			—			7			—			14
	Consumer construction	—			—			—			—			—			—			—			—			—
	Consumer	7			—			10			14			1			—			—			—			—
	Total	$	2,652		$	—		$	2,036		$	1,948		$	1,315		$	—		$	29		$	—		$	53
														Interest Income			Interest Income
	For the Year Ended:	Nonaccrual			Accrual			Average			Related			Recognized			on
	December 31, 2013	Basis			Basis			Investment			Valuation Reserve			During Impairment			Accrual Basis
	With no valuation reserve:
	Commercial real estate	$	513		$	—		$	3,045		$	—		$	—		$	153
	Commercial, financial and agricultural	59			—			505			—			—			13
	Commercial construction	—			—			626			—			—			3
	One to four family residential real estate	361			—			625			—			—			16
	Consumer construction	—			—			—			—			—			—
	Consumer	—			—			2			—			—			—
	With a valuation reserve:
	Commercial real estate	$	59		$	—		$	71		$	14		$	—		$	5
	Commercial, financial and agricultural	752			—			834			265			—			18
	Commercial construction	—			—			—			—			—			—
	One to four family residential real estate	250			—			261			78			—			20
	Consumer construction	—			—			—			—			—			—
	Consumer	30			—			30			13			—			—
	Total:
	Commercial real estate	$	572		$	—		$	3,116		$	14		$	—		$	158
	Commercial, financial and agricultural	811			—			1,339			265			—			31
	Commercial construction	—			—			626			—			—			3
	One to four family residential real estate	611			—			886			78			—			36
	Consumer construction	—			—			—			—			—			—
	Consumer	30			—			32			13			—			—
	Total	$	2,024		$	—		$	5,999		$	370		$	—		$	228
																	Three Months Ended						Six Months Ended
								QTD			YTD						Interest Income			Interest Income			Interest Income			Interest Income
		Nonaccrual			Accrual			Average			Average			Related			Recognized			on			Recognized			on
	June  30, 2013	Basis			Basis			Investment			Investment			Valuation Reserve			During Impairment			Accrual Basis			During Impairment			Accrual Basis
	With no valuation reserve:
	Commercial real estate	$	728		$	—		$	733		$	797		$	—		$	—		$	14		$	—		$	26
	Commercial, financial and agricultural	176			—			206			248			—			—			3			—			6
	Commercial construction	—			—			—			275			—			—			—			—			3
	One to four family residential real estate	94			—			133			165			—			—			3			—			5
	Consumer construction	—			—			—			—			—			—			—			—			—
	Consumer	9			—			2			1			—			—			—			—			—
With a valuation reserve:
Commercial real estate	$	2,329		$	—		$	2,308		$	2,298		$	1,240		$	—		$	30		$	—		$	60
Commercial, financial and agricultural	341			—			267			199			106			—			4			—			6
Commercial construction	—			—			—			—			—			—			—			—			—
One to four family residential real estate	306			—			303			289			126			—			5			—			11
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	—			—			—			—			—			—			—			—			—
Total:
Commercial real estate	$	3,057		$	—		$	3,041		$	3,095		$	1,240		$	—		$	44		$	—		$	86
Commercial, financial and agricultural	517			—			473			447			106			—			7			—			12
Commercial construction	—			—			—			275			—			—			—			—			3
One to four family residential real estate	400			—			436			454			126			—			8			—			16
Consumer construction	—			—			—			—			—			—			—			—			—
Consumer	9			—			2			1			—			—			—			—			—
Total	$	3,983		$	—		$	3,952		$	4,272		$	1,472		$	—		$	59		$	—		$	117
Summary of past due loans	'
	A summary of past due loans at June 30, 2014, December 31, 2013 and June 30, 2013 is as follows (dollars in thousands):
		June 30,									December 31,									June 30,
		2014									2013									2013
		30-89 days			90+ days						30-89 days			90+ days						30-89 days			90+ days
		Past Due			Past Due/						Past Due			Past Due/						Past Due			Past Due/
		(accruing)			Nonaccrual			Total			(accruing)			Nonaccrual			Total			(accruing)			Nonaccrual			Total
	Commercial real estate	$	602		$	454		$	1,056		$	—		$	572		$	572		$	146		$	3,057		$	3,203
	Commercial, financial and agricultural	5			1,808			1,813			4			811			815			92			517			609
	Commercial construction	—			—			—			20			—			20			—			—			—
	One to four family residential real estate	141			383			524			201			611			812			100			400			500
	Consumer construction	—			—			—			—			—			—			—			—			—
	Consumer	57			7			64			14			30			44			18			9			27
	Total past due loans	$	805		$	2,652		$	3,457		$	239		$	2,024		$	2,263		$	356		$	3,983		$	4,339
Schedule of roll-forward of nonperformaing loan activity	'
	A roll-forward of nonperforming loan activity for the three months ended June 30, 2014 (dollars in thousands):
		For the Three Months Ended June  30, 2014
					Commercial,						One to four
		Commercial			Financial and			Commercial			family residential			Consumer
	NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
	Beginning balance	$	455		$	730		$	—		$	299		$	—		$	7		$	1,491
	Principal payments	(3		)	(63		)	—			(14		)	—			—			(80		)
	Charge-offs	—			—			—			—			—			(6		)	(6		)
	Advances	—			—			—			—			—			—			—
	Class transfers	—			—			—			—			—			—			—
	Transfers to OREO	—			—			—			—			—			—			—
	Transfers to accruing	—			—			—			—			—			—			—
	Transfers from accruing	—			1,139			—			89			—			6			1,234
	Other	2			2			—			9			—			—			13
	Ending balance	$	454		$	1,808		$	—		$	383		$	—		$	7		$	2,652
	A roll-forward of nonperforming loan activity for the three months ended June 30, 2013 (dollars in thousands):
		For the Three Months Ended June  30, 2013
					Commercial,						One to four
		Commercial			Financial and			Commercial			family residential			Consumer
	NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
	Beginning balance	$	2,963		$	424		$	—		$	446		$	—		$	—		$	3,833
	Principal payments	(31		)	(66		)	—			(16		)	—			—			(113		)
	Charge-offs	—			—			—			(6		)	—			(4		)	(10		)
	Advances	—			—			—			—			—			—			—
	Class transfers	—			—			—			—			—			—			—
	Transfers to OREO	—			—			—			(38		)	—			—			(38		)
	Transfers to accruing	—			—			—			—			—			—			—
	Transfers from accruing	126			179			—			14			—			13			332
	Other	(1		)	(20		)	—			—			—			—			(21		)
	Ending balance	$	3,057		$	517		$	—		$	400		$	—		$	9		$	3,983
	A roll-forward of nonperforming loan activity for the first six months ended June 30, 2014 (dollars in thousands):
		For the Six Months Ended June 30, 2014
					Commercial,						One to four
		Commercial			Financial and			Commercial			family residential			Consumer
	NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
	Beginning balance	$	572		$	811		$	—		$	611		$	—		$	30		$	2,024
	Principal payments	(102		)	(81		)	—			(22		)	—			(4		)	(209		)
	Charge-offs	—			(53		)	—			(3		)	—			(25		)	(81		)
	Advances	—			—			—			—			—			—			—
	Class transfers	—			—			—			—			—			—			—
	Transfers to OREO	(26		)	—			—			(256		)	—			—			(282		)
	Transfers to accruing	—			(10		)	—			(127		)	—			—			(137		)
	Transfers from accruing	—			1,139			—			171			—			6			1,316
	Other	10			2			—			9			—			—			21
	Ending balance	$	454		$	1,808		$	—		$	383		$	—		$	7		$	2,652
	A roll-forward of nonperforming loan activity for the first six months ended June 30, 2013 (dollars in thousands):
		For the Six Months Ended June 30, 2013
					Commercial,						One to four
		Commercial			Financial and			Commercial			family residential			Consumer
	NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
	Beginning balance	$	3,071		$	436		$	675		$	505		$	—		$	—		$	4,687
	Principal payments	(148		)	(68		)	(100		)	(65		)	—			—			(381		)
	Charge-offs	(329		)	(72		)	—			(13		)	—			(4		)	(418		)
	Advances	—			—			—			—			—			—			—
	Class transfers	—			—			—			—			—			—			—
	Transfers to OREO	—			—			(580		)	(107		)	—			—			(687		)
	Transfers to accruing	—			—			—			—			—			—			—
	Transfers from accruing	443			241			—			76			—			13			773
	Other	20			(20		)	5			4			—			—			9
	Ending balance	$	3,057		$	517		$	—		$	400		$	—		$	9		$	3,983
	A roll-forward of nonperforming loan activity during the year ended December 31, 2013 (dollars in thousands):
					Commercial,						One to four
		Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	3,071		$	436		$	675		$	505		$	—		$	—		$	4,687
Principal payments	(1,478		)	(319		)	(100		)	(88		)	—			(2		)	(1,987		)
Charge-offs	(1,304		)	(616		)	—			(141		)	—			(4		)	(2,065		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	(208		)	(37		)	(580		)	(107		)	—			—			(932		)
Transfers to accruing	—			—			—			—			—			—			—
Transfers from accruing	443			1,346			—			434			—			36			2,259
Other	48			1			5			8			—			—			62
Ending balance	$	572		$	811		$	—		$	611		$	—		$	30		$	2,024
Summary of troubled debt restructurings	'
	A summary of troubled debt restructurings for the periods indicated is as follows (dollars in thousands):
		June 30,					December 31,					June 30,
		2014					2013					2013
		Number of		Recorded			Number of		Recorded			Number of		Recorded
		Modifications		Investment			Modifications		Investment			Modifications		Investment
	Commercial real estate	—		$	—		—		$	—		—		$	—
	Commercial, financial and agricultural	—		—			1		528			—		—
	Commercial construction	—		—			—		—			—		—
	One to four family residential real estate	1		89			—		—			—		—
	Consumer construction	—		—			—		—			—		—
	Consumer	—		—			—		—			—		—
	Total troubled debt restructurings	1		$	89		1		$	528		—		$	—
Schedule of roll-forward of troubled debt restructurings	'
	A roll-forward of troubled debt restructuring during the three months ended June 30, 2014 (dollars in thousands):
					Commercial,						One to four			Consumer and
		Commercial			Financial and			Commercial			family residential			Consumer
	ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
	Beginning balance	$	1,009		$	1,186		$	858		$	187		$	—		$	3,240
	Principal payments	(2		)	—			—			—			—			(2		)
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transferred out of TDR	—			—			—			—			—			—
	Transfers to nonaccrual	—			—			—			(89		)	—			(89		)
	Ending Balance	$	1,007		$	1,186		$	858		$	98		$	—		$	3,149
	NONACCRUAL
	Beginning balance	$	—		$	508		$	—		$	—		$	—		$	508
	Principal payments	—			—			—			—			—			—
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transfers to foreclosed properties	—			—			—			—			—			—
	Transfers from accruing	—			—			—			89			—			89
	Ending Balance	$	—		$	508		$	—		$	89		$	—		$	597
	TOTALS
	Beginning balance	$	1,009		$	1,694		$	858		$	187		$	—		$	3,748
	Principal payments	(2		)	—			—			—			—			(2		)
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transfers out of TDRs	—			—			—			—			—			—
	Tansfers to nonaccrual	—			—			—			(89		)	—			(89		)
	Transfers to foreclosed properties	—			—			—			—			—			—
	Transfers from accruing	—			—			—			89			—			89
	Ending Balance	$	1,007		$	1,694		$	858		$	187		$	—		$	3,746
	A roll-forward of troubled debt restructuring during the three months ended June 30, 2013 (dollars in thousands):
					Commercial,						One to four			Consumer and
		Commercial			Financial and			Commercial			family residential			Consumer
	ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
	Beginning balance	$	3,588		$	2,174		$	858		$	100		$	—		$	6,720
	Principal payments	(25		)	—			—			—			—			(25		)
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transferred out of TDRs	—			—			—			—			—			—
	Transfers to nonaccrual	—			—			—			—			—			—
	Ending Balance	$	3,563		$	2,174		$	858		$	100		$	—		$	6,695
	NONACCRUAL
	Beginning balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
	Principal payments	—			—			—			—			—			—
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transfers to foreclosed properties	—			—			—			—			—			—
	Transfers from accruing	—			—			—			—			—			—
	Ending Balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
	TOTALS
	Beginning balance	$	5,757		$	2,174		$	858		$	206		$	—		$	8,995
	Principal payments	(25		)	—			—			—			—			(25		)
	Charge-offs	—			—			—			—			—			—
	Advances	—			—			—			—			—			—
	New restructured	—			—			—			—			—			—
	Transfers out of TDRs	—			—			—			—			—			—
	Tansfers to nonaccrual	—			—			—			—			—			—
	Transfers to foreclosed properties	—			—			—			—			—			—
	Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	5,732		$	2,174		$	858		$	206		$	—		$	8,970
A roll-forward of troubled debt restructuring during the six months ended June 30, 2014 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,520		$	1,186		$	858		$	99		$	—		$	5,663
Principal payments	(2,513		)	—			—			(3		)	—			(2,516		)
Charge-offs	—															—
Advances	—															—
New restructured	—															—
Transferred out of TDRs	—															—
Transfers from accruing	—			—			—			91			—			91
Transfers to nonaccruing	—			—			—			(89		)	—			(89		)
Ending Balance	$	1,007		$	1,186		$	858		$	98		$	—		$	3,149
NONACCRUAL
Beginning balance	$	—		$	523		$	—		$	91		$	—		$	614
Principal payments	—			(15		)	—			—			—			(15		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers to accruing	—			—			—			(91		)	—			(91		)
Transfers from accruing	—			—			—			89			—			89
Ending Balance	$	—		$	508		$	—		$	89		$	—		$	597
TOTALS
Beginning balance	$	3,520		$	1,709		$	858		$	190		$	—		$	6,277
Principal payments	(2,513		)	(15		)	—			(3		)	—			(2,531		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			—			—			—			—			—
Transfers out of TDR	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			(89		)	—			(89		)
Transfers to accruing	—			—			—			89			—			89
Transfer from accruing	—			—			—			—			—			—
Ending Balance	$	1,007		$	1,694		$	858		$	187		$	—		$	3,746
A roll-forward of troubled debt restructuring during the six months ended June 30, 2013 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,611		$	1,221		$	858		$	102		$	—		$	5,792
Principal payments	(48		)	—			—			(2		)	—			(50		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	—			953			—			—			—			953
Transferred out of TDRs	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			—			—			—
Ending Balance	$	3,563		$	2,174		$	858		$	100		$	—		$	6,695
NONACCRUAL
Beginning balance	$	2,162		$	—		$	—		$	102		$	—		$	2,264
Principal payments	—			—			—			—			—			—
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	7			—			—			4			—			11
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	2,169		$	—		$	—		$	106		$	—		$	2,275
TOTALS
Beginning balance	$	5,773		$	1,221		$	858		$	204		$	—		$	8,056
Principal payments	(48		)	—			—			(2		)	—			(50		)
Charge-offs	—			—			—			—			—			—
Advances	—			—			—			—			—			—
New restructured	7			953			—			4			—			964
Transfers out of TDRs	—			—			—			—			—			—
Transfers to nonaccrual	—			—			—			—			—			—
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	5,732		$	2,174		$	858		$	206		$	—		$	8,970
A roll-forward of troubled debt restructuring during the year ended December 31, 2013 (dollars in thousands):
				Commercial,						One to four			Consumer and
	Commercial			Financial and			Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction			real estate			Construction			Total
Beginning balance	$	3,611		$	1,221		$	858		$	102		$	—		$	5,792
Principal payments	(91		)	(460		)				(3		)	—			(554		)
Charge-offs	—			—						—			—			—
Advances	—			—						—			—			—
New restructured	—			953						—			—			953
Transferred out of TDR	—			—						—			—			—
Transfers to nonaccrual	—			(528		)				—			—			(528		)
Ending Balance	$	3,520		$	1,186		$	858		$	99		$	—		$	5,663
NONACCRUAL
Beginning balance	$	2,162		$	—		$	—		$	102		$	—		$	2,264
							—
Principal payments	(1,376		)	(5		)	—			(15		)	—			(1,396		)
Charge-offs	(793		)	—			—			—			—			(793		)
Advances	—			—			—			—			—			—
New restructured	7			528			—			4			—			539
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	—		$	523		$	—		$	91		$	—		$	614
TOTALS
Beginning balance	$	5,773		$	1,221		$	858		$	204		$	—		$	8,056
Principal payments	(1,467		)	(465		)	—			(18		)	—			(1,950		)
Charge-offs	(793		)	—			—			—			—			(793		)
Advances	—			—			—			—			—			—
New restructured	7			1,481			—			4			—			1,492
Transfers out of TDRs	—			—			—			—			—			—
Tansfers to nonaccrual	—			(528		)	—			—			—			(528		)
Transfers to foreclosed properties	—			—			—			—			—			—
Transfers from accruing	—			—			—			—			—			—
Ending Balance	$	3,520		$	1,709		$	858		$	190		$	—		$	6,277
Schedule of activity in insider loans granted to the entity's executive officers and directors, including their families and firms	'
	Activity in such loans is summarized below (dollars in thousands):
		June 30,			December 31,			June 30,
		2014			2013			2013
	Loans outstanding, beginning of period	$	9,043		$	11,297		$	11,297
	New loans	—			496			496
	Net activity on revolving lines of credit	1,178			(266		)	(25		)
	Principal payments	(1,523		)	(2,484		)	(1,298		)
	Loans outstanding, end of period	$	8,698		$	9,043		$	10,470

MORTGAGE_SERVICING_RIGHTS_Tabl

MORTGAGE SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2014
MORTGAGE SERVICING RIGHTS	'
Summary of mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances	'
	The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands):
		Six Months Ended			Year Ended			Six Months Ended
		June 30,			December 31,			June 30,
		2014			2013			2013
	Balance at beginning of period	$	1,129		$	638		$	638
	Additions from loans sold with servicing retained	75			675			225
	Amortization	(143		)	(184		)	(80		)
	Balance at end of period	$	1,061		$	1,129		$	783

BORROWINGS_Tables

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2014
BORROWINGS	'
Schedule of borrowings	'
	Borrowings consist of the following at June 30, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):
		June 30,		December 31,		June 30,
		2014		2013		2013
	Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018	$	35,000	$	35,000	$	35,000
	Correspondent bank line of credit - holding company	500		2,000		—
	Bank line of credit - wholly-owned asset based lending subsidiary	2,835		—		—
	Correspondent bank term note, current floor rate of 4%, maturing March 22, 2017	2,900		—		—
	USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1%	852		852		925
		$	42,087	$	37,852	$	35,925

STOCK_COMPENSATION_PLANS_Table

STOCK COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2014
STOCK COMPENSATION PLANS	'
Summary of stock option transactions	'
			June 30,		December 31,			June 30,
			2014		2013			2013
	Outstanding shares at beginning of year		237,152		242,152			242,152
	Granted during the period		—		—			—
	Exercised during the period		—		—			—
	Expired / forfeited during the period		—		(5,000		)	—
	Outstanding shares at end of period		237,152		237,152			242,152
	Exercisable shares at end of period		124,861		124,861			126,361
	Weighted average exercise price per share at end of period		$	9.8	$	9.8		$	9.88
	Shares available for grant at end of period		—		—			—
Summary of the options outstanding and exercisable	'
									Weighted Average
	Exercise			Number					Remaining
	Price			Outstanding	Exercisable		Unvested Options		Contractual Life-Years
	$	9.75		217,152	120,861		96,291		0.48
	$	10.65		10,000	2,000		8,000		1.04
	$	12.00		10,000	2,000		8,000		2.46
				237,152	124,861		112,291		0.59

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS	'
Schedule presenting information for financial instruments	'
	The following table presents information for financial instruments at June 30, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):
				June 30, 2014						December 31, 2013						June 30, 2013
		Level in Fair		Carrying			Estimated			Carrying			Estimated			Carrying			Estimated
		Value Hierarchy		Amount			Fair Value			Amount			Fair Value			Amount			Fair Value
	Financial assets:
	Cash and cash equivalents	Level 1		$	20,746		$	20,746		$	18,219		$	18,219		$	26,219		$	26,219
	Interest-bearing deposits	Level 2		235			235			10			10			10			10
	Securities available for sale	Level 2		47,374			47,374			44,388			44,388			47,307			47,307
	Federal Home Loan Bank stock	Level 2		3,060			3,060			3,060			3,060			3,060			3,060
	Net loans	Level 2		497,843			499,609			479,171			479,538			450,378			444,638
	Accrued interest receivable	Level 3		1,485			1,485			1,351			1,351			1,636			1,636
	Total financial assets			$	570,743		$	572,509		$	546,199		$	546,566		$	528,610		$	522,870
	Financial liabilities:
	Deposits	Level 2		$	484,016		$	485,230		$	466,299		$	465,431		$	447,907		$	446,438
	Borrowings	Level 2		42,087			42,699			37,852			37,487			35,925			35,621
	Accrued interest payable	Level 3		186			186			182			182			229			229
	Total financial liabilties			$	526,289		$	528,115		$	504,333		$	503,100		$	484,061		$	482,288
Schedule of fair values of assets using Level 3 inputs	'
	Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2014
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Three Months Ended			Six Months Ended
	(dollars in thousands)	June 30, 2014			(Level 1)			(Level 2)			(Level 3)			June 30, 2014			June 30, 2014
	Assets
	Impaired loans	$	2,652		$	—		$	—		$	2,652		$	22		$	430
	Other real estate owned	1,947			—			—			1,947			14			14
														$	36		$	444
	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2013
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Year Ended
	(dollars in thousands)	December 31, 2013			(Level 1)			(Level 2)			(Level 3)			December 31, 2013
	Assets
	Impaired loans	$	2,024		$	—		$	—		$	2,024		$	2,075
	Other real estate owned	1,884			—			—			1,884			265
														$	2,340
	Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2013
					Quoted Prices			Significant			Significant
					in Active Markets			Other Observable			Unobservable			Total Losses for			Total Losses for
		Balance at			for Identical Assets			Inputs			Inputs			Three Months Ended			Six Months Ended
	(dollars in thousands)	June 30, 2013			(Level 1)			(Level 2)			(Level 3)			June 30, 2013			June 30, 2013
	Assets
	Impaired loans	$	3,983		$	—		$	—		$	3,983		$	10		$	418
	Other real estate owned	2,481			—			—			2,481			87			89
														$	97		$	507

COMMITMENTS_CONTINGENCIES_AND_1

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)	6 Months Ended
	Jun. 30, 2014
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	'
Schedule of commitments	'
	These commitments are as follows (dollars in thousands):
		June 30,		December 31,		June 30,
		2014		2013		2013
	Commitments to extend credit:
	Variable rate	$	54,048	$	36,039	$	37,462
	Fixed rate	18,604		15,070		19,873
	Standby letters of credit - Variable rate	5,742		5,077		3,805
	Credit card commitments - Fixed rate	3,234		3,152		3,113
		$	81,628	$	59,338	$	64,253

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	0 Months Ended	1 Months Ended		6 Months Ended
	Aug. 31, 2013	Mar. 31, 2014	Aug. 31, 2012	Jun. 30, 2014	22-May-12	22-May-12
	Restricted Stock Units	Restricted Stock Units	Restricted Stock Units	Restricted Stock Units	2012 Incentive Compensation Plan	2012 Incentive Compensation Plan
						Stock Options
Stock Compensation Plans	'	'	'	'	'	'
Total authorized share balance	'	'	'	'	575,000	392,152
Number of RSUs granted (in shares)	37,125	52,774	148,500	'	'	'
Purchase price (in dollars per share)	'	$12.95	$7.91	'	'	'
Cost to the employee	'	'	'	$0	'	'
Vesting period	'	'4 years	'4 years	'	'	'
Recognition period of compensation cost to be recognized	'	'	'	'4 years	'	'
Compensation cost to be recognized	'	683,000	1,175,000	'	'	'
Compensation cost to be recognized	'	'	'	$1,270,000	'	'
Number of RSUs unvested (in shares)	'	164,149	'	164,149	'	'

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
(Numerator):	'	'	'	'
Net income	$806	$1,260	$1,466	$2,073
Preferred stock dividends and accretion of discount	'	63	'	200
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$806	$1,197	$1,466	$1,873
(Denominator):	'	'	'	'
Weighted average shares outstanding - basic	5,527,690	5,556,133	5,529,290	5,557,842
Effect of dilutive stock options and vesting of restricted stock units (in shares)	90,001	'	55,642	'
Weighted average shares outstanding - diluted	5,617,691	5,556,133	5,584,932	5,557,842
Income per common share:	'	'	'	'
Basic (in dollars per share)	$0.15	$0.22	$0.27	$0.34
Diluted (in dollars per share)	$0.14	$0.22	$0.26	$0.34

INVESTMENT_SECURITIES_Details

INVESTMENT SECURITIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	$46,701	$44,060	$46,655
Gross Unrealized Gains	933	701	1,039
Gross Unrealized Losses	-260	-373	-387
Estimated Fair Value	47,374	44,388	47,307
US Agencies - MBS	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	6,598	7,078	7,491
Gross Unrealized Gains	253	281	354
Estimated Fair Value	6,851	7,359	7,845
US Agencies	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	17,755	15,227	15,172
Gross Unrealized Gains	91	'	74
Gross Unrealized Losses	-258	-372	-341
Estimated Fair Value	17,588	14,855	14,905
Corporate Bonds	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	15,691	15,862	18,557
Gross Unrealized Gains	189	218	161
Gross Unrealized Losses	'	-1	-45
Estimated Fair Value	15,880	16,079	18,673
Obligations of states and political subdivisions	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	6,441	5,893	5,435
Gross Unrealized Gains	400	202	450
Gross Unrealized Losses	-2	'	-1
Estimated Fair Value	6,839	6,095	5,884
Other	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	216	'	'
Estimated Fair Value	216	'	'
FHLB borrowings and customer relationships	'	'	'
SECURITIES AVAILABLE FOR SALE	'	'	'
Amortized Cost	4,378	'	'
Estimated Fair Value	$4,530	'	'

LOANS_Details

LOANS (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Loans	'	'	'	'	'
Total loans	$502,940,000	$455,555,000	$502,940,000	$455,555,000	$483,832,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	4,883,000	5,037,000	4,661,000	5,218,000	5,218,000
Loans charged off	-33,000	-36,000	-115,000	-616,000	-2,432,000
Recoveries on loans previously charged off	56,000	76,000	177,000	100,000	200,000
Provision	191,000	100,000	374,000	475,000	1,675,000
Balance at end of period	5,097,000	5,177,000	5,097,000	5,177,000	4,661,000
Net recoveries	'	'	62,000	'	'
Net charge off	'	'	'	516,000	'
Net charge off as percentage of average loans outstanding	'	'	'	0.23%	'
Commercial real estate	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	274,500,000	243,363,000	274,500,000	243,363,000	268,809,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	1,756,000	2,964,000	1,849,000	3,267,000	3,267,000
Loans charged off	'	-21,000	-1,000	-456,000	-1,539,000
Recoveries on loans previously charged off	20,000	29,000	74,000	41,000	92,000
Provision	-146,000	-311,000	-292,000	-191,000	29,000
Balance at end of period	1,630,000	2,661,000	1,630,000	2,661,000	1,849,000
Commercial, financial, and agricultural	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	89,515,000	84,145,000	89,515,000	84,145,000	79,655,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	1,572,000	847,000	1,378,000	692,000	692,000
Loans charged off	-3,000	-4,000	-65,000	-76,000	-632,000
Recoveries on loans previously charged off	15,000	30,000	59,000	33,000	56,000
Provision	85,000	217,000	297,000	441,000	1,262,000
Balance at end of period	1,669,000	1,090,000	1,669,000	1,090,000	1,378,000
One to four family residential real estate	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	105,868,000	94,254,000	105,868,000	94,254,000	103,768,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	391,000	990,000	516,000	980,000	980,000
Loans charged off	-13,000	-6,000	-16,000	-13,000	-141,000
Recoveries on loans previously charged off	8,000	6,000	14,000	11,000	26,000
Provision	-41,000	-113,000	-169,000	-101,000	-349,000
Balance at end of period	345,000	877,000	345,000	877,000	516,000
Consumer construction	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	7,464,000	4,305,000	7,464,000	4,305,000	6,895,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	16,000	'	25,000	'	'
Recoveries on loans previously charged off	'	'	'	'	2,000
Provision	-1,000	'	-10,000	'	23,000
Balance at end of period	15,000	'	15,000	'	25,000
Commercial construction	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	10,550,000	16,053,000	10,550,000	16,053,000	10,904,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	41,000	118,000	80,000	125,000	125,000
Recoveries on loans previously charged off	3,000	1,000	6,000	2,000	2,000
Provision	-4,000	-22,000	-46,000	-30,000	-47,000
Balance at end of period	40,000	97,000	40,000	97,000	80,000
Consumer	'	'	'	'	'
Loans	'	'	'	'	'
Total loans	15,043,000	13,435,000	15,043,000	13,435,000	13,801,000
Changes in the allowance for loan losses	'	'	'	'	'
Balance at beginning of period	114,000	13,000	148,000	'	'
Loans charged off	-17,000	-5,000	-33,000	-71,000	-120,000
Recoveries on loans previously charged off	10,000	10,000	24,000	13,000	22,000
Provision	4,000	-5,000	-28,000	71,000	246,000
Balance at end of period	$111,000	$13,000	$111,000	$13,000	$148,000

LOANS_Details_2

LOANS (Details 2) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	$4,883	$5,037	$4,661	$5,218	$5,218
Charge-offs	-33	-36	-115	-616	-2,432
Recoveries	56	76	177	100	200
Provision	191	100	374	475	1,675
Balance at end of period	5,097	5,177	5,097	5,177	4,661
Loans:	'	'	'	'	'
Ending balance	502,940	455,555	502,940	455,555	483,832
Ending balance ALLR	-5,097	-5,177	-5,097	-5,177	-4,661
Net loans	497,843	450,378	497,843	450,378	479,171
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	1,438	2,208	1,438	2,208	1,111
Collectively evaluated	3,659	2,969	3,659	2,969	3,550
Total	5,097	5,177	5,097	5,177	4,661
Ending balance Loans:	'	'	'	'	'
Individually evaluated	3,039	22,746	3,039	22,746	2,906
Collectively evaluated	499,901	432,809	499,901	432,809	480,926
Total Loans	502,940	455,555	502,940	455,555	483,832
Commercial real estate	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	1,756	2,964	1,849	3,267	3,267
Charge-offs	'	-21	-1	-456	-1,539
Recoveries	20	29	74	41	92
Provision	-146	-311	-292	-191	29
Balance at end of period	1,630	2,661	1,630	2,661	1,849
Loans:	'	'	'	'	'
Ending balance	274,500	243,363	274,500	243,363	268,809
Ending balance ALLR	-1,630	-2,661	-1,630	-2,661	-1,849
Net loans	272,870	240,702	272,870	240,702	266,960
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	189	1,396	189	1,396	99
Collectively evaluated	1,441	1,265	1,441	1,265	1,750
Total	1,630	2,661	1,630	2,661	1,849
Ending balance Loans:	'	'	'	'	'
Individually evaluated	609	14,499	609	14,499	649
Collectively evaluated	273,891	228,864	273,891	228,864	268,160
Total Loans	274,500	243,363	274,500	243,363	268,809
Commercial, financial, and agricultural	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	1,572	847	1,378	692	692
Charge-offs	-3	-4	-65	-76	-632
Recoveries	15	30	59	33	56
Provision	85	217	297	441	1,262
Balance at end of period	1,669	1,090	1,669	1,090	1,378
Loans:	'	'	'	'	'
Ending balance	89,515	84,145	89,515	84,145	79,655
Ending balance ALLR	-1,669	-1,090	-1,669	-1,090	-1,378
Net loans	87,846	83,055	87,846	83,055	78,277
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	1,110	643	1,110	643	891
Collectively evaluated	559	447	559	447	487
Total	1,669	1,090	1,669	1,090	1,378
Ending balance Loans:	'	'	'	'	'
Individually evaluated	1,744	6,668	1,744	6,668	1,830
Collectively evaluated	87,771	77,477	87,771	77,477	77,825
Total Loans	89,515	84,145	89,515	84,145	79,655
Commercial construction	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	41	118	80	125	125
Recoveries	3	1	6	2	2
Provision	-4	-22	-46	-30	-47
Balance at end of period	40	97	40	97	80
Loans:	'	'	'	'	'
Ending balance	10,550	16,053	10,550	16,053	10,904
Ending balance ALLR	-40	-97	-40	-97	-80
Net loans	10,510	15,956	10,510	15,956	10,824
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	'	8	'	8	'
Collectively evaluated	40	89	40	89	80
Total	40	97	40	97	80
Ending balance Loans:	'	'	'	'	'
Individually evaluated	'	917	'	917	'
Collectively evaluated	10,550	15,136	10,550	15,136	10,904
Total Loans	10,550	16,053	10,550	16,053	10,904
One to four family residential real estate	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	391	990	516	980	980
Charge-offs	-13	-6	-16	-13	-141
Recoveries	8	6	14	11	26
Provision	-41	-113	-169	-101	-349
Balance at end of period	345	877	345	877	516
Loans:	'	'	'	'	'
Ending balance	105,868	94,254	105,868	94,254	103,768
Ending balance ALLR	-345	-877	-345	-877	-516
Net loans	105,523	93,377	105,523	93,377	103,252
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	118	148	118	148	103
Collectively evaluated	227	729	227	729	413
Total	345	877	345	877	516
Ending balance Loans:	'	'	'	'	'
Individually evaluated	622	640	622	640	385
Collectively evaluated	105,246	93,614	105,246	93,614	103,383
Total Loans	105,868	94,254	105,868	94,254	103,768
Consumer construction	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	16	'	25	'	'
Recoveries	'	'	'	'	2
Provision	-1	'	-10	'	23
Balance at end of period	15	'	15	'	25
Loans:	'	'	'	'	'
Ending balance	7,464	4,305	7,464	4,305	6,895
Ending balance ALLR	-15	'	-15	'	-25
Net loans	7,449	4,305	7,449	4,305	6,870
Ending balance ALLR:	'	'	'	'	'
Collectively evaluated	15	'	15	'	25
Total	15	'	15	'	25
Ending balance Loans:	'	'	'	'	'
Collectively evaluated	7,464	4,305	7,464	4,305	6,895
Total Loans	7,464	4,305	7,464	4,305	6,895
Consumer	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	114	13	148	'	'
Charge-offs	-17	-5	-33	-71	-120
Recoveries	10	10	24	13	22
Provision	4	-5	-28	71	246
Balance at end of period	111	13	111	13	148
Loans:	'	'	'	'	'
Ending balance	15,043	13,435	15,043	13,435	13,801
Ending balance ALLR	-111	-13	-111	-13	-148
Net loans	14,932	13,422	14,932	13,422	13,653
Ending balance ALLR:	'	'	'	'	'
Individually evaluated	21	13	21	13	18
Collectively evaluated	90	'	90	'	130
Total	111	13	111	13	148
Ending balance Loans:	'	'	'	'	'
Individually evaluated	64	22	64	22	42
Collectively evaluated	14,979	13,413	14,979	13,413	13,759
Total Loans	15,043	13,435	15,043	13,435	13,801
Unallocated	'	'	'	'	'
Allowance for loan loss reserve:	'	'	'	'	'
Balance at beginning of period	993	105	665	154	154
Provision	294	334	622	285	511
Balance at end of period	1,287	439	1,287	439	665
Loans:	'	'	'	'	'
Ending balance ALLR	-1,287	-439	-1,287	-439	-665
Net loans	-1,287	-439	-1,287	-439	-665
Ending balance ALLR:	'	'	'	'	'
Collectively evaluated	1,287	439	1,287	439	665
Total	$1,287	$439	$1,287	$439	$665

LOANS_Details_3

LOANS (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Breakdown of loans by risk category	'	'	'
Total loans	$502,940	$483,832	$455,555
Minimum	'	'	'
Breakdown of loans by risk category	'	'	'
Credit risk rating for which reserves are established if no specific reserves made	6	'	'
Maximum	'	'	'
Breakdown of loans by risk category	'	'	'
Credit risk rating for which general reserves are established	5	'	'
Credit risk rating for which reserves are established if no specific reserves made	7	'	'
Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	274,500	268,809	243,363
Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	89,515	79,655	84,145
Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	10,550	10,904	16,053
One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	105,868	103,768	94,254
Consumer construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	7,464	6,895	4,305
Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	15,043	13,801	13,435
Excellent (1)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	2,122	5,534	7,291
Excellent (1) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	15	1,502	2,294
Excellent (1) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	2,107	3,741	4,997
Excellent (1) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	30	'
Excellent (1) | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	251	'
Excellent (1) | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	10	'
Good (2)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	32,272	31,211	30,358
Good (2) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	25,065	23,310	22,319
Good (2) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	4,418	4,348	5,253
Good (2) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	460	479	723
Good (2) | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	2,329	3,074	1,954
Good (2) | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	109
Average (3)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	157,225	148,171	115,804
Average (3) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	121,108	116,702	86,404
Average (3) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	31,875	27,455	21,780
Average (3) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	2,919	2,702	5,119
Average (3) | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	1,303	1,275	2,465
Average (3) | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	20	37	36
Acceptable/Acceptable Watch (4)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	180,912	172,945	168,089
Acceptable/Acceptable Watch (4) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	126,593	125,010	111,180
Acceptable/Acceptable Watch (4) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	46,320	39,070	46,214
Acceptable/Acceptable Watch (4) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	3,616	4,340	5,660
Acceptable/Acceptable Watch (4) | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	4,344	4,482	4,565
Acceptable/Acceptable Watch (4) | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	39	43	470
Special Mention (5)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	21,377
Special Mention (5) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	16,446
Special Mention (5) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	4,176
Special Mention (5) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	755
Substandard (6)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	6,916	8,468	6,658
Substandard (6) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	1,719	2,285	4,531
Substandard (6) | Commercial, financial, and agricultural	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	4,795	5,041	1,725
Substandard (6) | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	402	402	402
Substandard (6) | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	710	'
Substandard (6) | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	30	'
Doubtful (7)	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	189
Doubtful (7) | Commercial real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	'	'	189
Rating Unassigned	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	123,493	117,503	105,789
Rating Unassigned | Commercial construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	3,153	2,951	3,394
Rating Unassigned | One to four family residential real estate	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	97,892	93,976	85,270
Rating Unassigned | Consumer construction	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	7,464	6,895	4,305
Rating Unassigned | Consumer	'	'	'
Breakdown of loans by risk category	'	'	'
Total loans	$14,984	$13,681	$12,820

LOANS_Details_4

LOANS (Details 4) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Impaired Loans	'	'	'	'	'
Number of days past due to be considered as nonperforming loans	'	'	'90 days	'	'
Average investment	'	'	'	'	'
Total	$2,036	$3,952	$1,948	$4,272	$5,999
Related Valuation Reserve	1,315	1,472	1,315	1,472	370
Interest Income on Accrual Basis	'	'	'	'	'
Total	29	59	53	117	228
Nonaccrual Basis	'	'	'	'	'
Recorded investment	'	'	'	'	'
Total	2,652	3,983	2,652	3,983	2,024
Commercial real estate	'	'	'	'	'
Average investment	'	'	'	'	'
With no valuation reserve	279	733	304	797	3,045
With a valuation reserve	176	2,308	176	2,298	71
Total	455	3,041	480	3,095	3,116
Related Valuation Reserve	104	1,240	104	1,240	14
Interest Income on Accrual Basis	'	'	'	'	'
With no valuation reserve	4	14	8	26	153
With a valuation reserve	3	30	7	60	5
Total	7	44	15	86	158
Commercial real estate | Nonaccrual Basis	'	'	'	'	'
Recorded investment	'	'	'	'	'
With no valuation reserve	278	728	278	728	513
With a valuation reserve	176	2,329	176	2,329	59
Total	454	3,057	454	3,057	572
Commercial, financial, and agricultural	'	'	'	'	'
Average investment	'	'	'	'	'
With no valuation reserve	97	206	140	248	505
With a valuation reserve	1,157	267	918	199	834
Total	1,254	473	1,058	447	1,339
Related Valuation Reserve	1,110	106	1,110	106	265
Interest Income on Accrual Basis	'	'	'	'	'
With no valuation reserve	2	3	4	6	13
With a valuation reserve	13	4	20	6	18
Total	15	7	24	12	31
Commercial, financial, and agricultural | Nonaccrual Basis	'	'	'	'	'
Recorded investment	'	'	'	'	'
With no valuation reserve	82	176	82	176	59
With a valuation reserve	1,726	341	1,726	341	752
Total	1,808	517	1,808	517	811
Commercial construction	'	'	'	'	'
Average investment	'	'	'	'	'
With no valuation reserve	'	'	'	275	626
Total	'	'	'	275	626
Interest Income on Accrual Basis	'	'	'	'	'
With no valuation reserve	'	'	'	3	3
Total	'	'	'	3	3
One to four family residential real estate	'	'	'	'	'
Average investment	'	'	'	'	'
With no valuation reserve	38	133	97	165	625
With a valuation reserve	279	303	299	289	261
Total	317	436	396	454	886
Related Valuation Reserve	100	126	100	126	78
Interest Income on Accrual Basis	'	'	'	'	'
With no valuation reserve	'	3	3	5	16
With a valuation reserve	7	5	11	11	20
Total	7	8	14	16	36
One to four family residential real estate | Nonaccrual Basis	'	'	'	'	'
Recorded investment	'	'	'	'	'
With no valuation reserve	37	94	37	94	361
With a valuation reserve	346	306	346	306	250
Total	383	400	383	400	611
Consumer	'	'	'	'	'
Average investment	'	'	'	'	'
With no valuation reserve	3	2	6	1	2
With a valuation reserve	7	'	8	'	30
Total	10	2	14	1	32
Related Valuation Reserve	1	'	1	'	13
Consumer | Nonaccrual Basis	'	'	'	'	'
Recorded investment	'	'	'	'	'
With no valuation reserve	'	9	'	9	'
With a valuation reserve	7	'	7	'	30
Total	$7	$9	$7	$9	$30

LOANS_Details_5

LOANS (Details 5) (USD $)	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	$805	'	$239	$356	'	'
90+ days Past Due/Nonaccrual	2,652	1,491	2,024	3,983	3,833	4,687
Total	3,457	'	2,263	4,339	'	'
Commercial real estate	'	'	'	'	'	'
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	602	'	'	146	'	'
90+ days Past Due/Nonaccrual	454	455	572	3,057	2,963	3,071
Total	1,056	'	572	3,203	'	'
Commercial, financial, and agricultural	'	'	'	'	'	'
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	5	'	4	92	'	'
90+ days Past Due/Nonaccrual	1,808	730	811	517	424	436
Total	1,813	'	815	609	'	'
Commercial construction	'	'	'	'	'	'
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	'	'	20	'	'	'
90+ days Past Due/Nonaccrual	'	'	'	'	'	675
Total	'	'	20	'	'	'
One to four family residential real estate	'	'	'	'	'	'
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	141	'	201	100	'	'
90+ days Past Due/Nonaccrual	383	299	611	400	446	505
Total	524	'	812	500	'	'
Consumer	'	'	'	'	'	'
Past due loans	'	'	'	'	'	'
30-89 days Past Due (accruing)	57	'	14	18	'	'
90+ days Past Due/Nonaccrual	7	7	30	9	'	'
Total	$64	'	$44	$27	'	'

LOANS_Details_6

LOANS (Details 6) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	$1,491	$3,833	$2,024	$4,687	$4,687
Principal payments	-80	-113	-209	-381	-1,987
Charge-offs	-6	-10	-81	-418	-2,065
Transfers to OREO	'	-38	-282	-687	-932
Transfer to accruing	'	'	-137	'	'
Transfers from accruing	1,234	332	1,316	773	2,259
Other	13	-21	21	9	62
Ending balance	2,652	3,983	2,652	3,983	2,024
Commercial real estate	'	'	'	'	'
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	455	2,963	572	3,071	3,071
Principal payments	-3	-31	-102	-148	-1,478
Charge-offs	'	'	'	-329	-1,304
Transfers to OREO	'	'	-26	'	-208
Transfers from accruing	'	126	'	443	443
Other	2	-1	10	20	48
Ending balance	454	3,057	454	3,057	572
Commercial, Financial, and Agricultural	'	'	'	'	'
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	730	424	811	436	436
Principal payments	-63	-66	-81	-68	-319
Charge-offs	'	'	-53	-72	-616
Transfers to OREO	'	'	'	'	-37
Transfer to accruing	'	'	-10	'	'
Transfers from accruing	1,139	179	1,139	241	1,346
Other	2	-20	2	-20	1
Ending balance	1,808	517	1,808	517	811
Commercial Construction	'	'	'	'	'
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	'	'	'	675	675
Principal payments	'	'	'	-100	-100
Transfers to OREO	'	'	'	-580	-580
Other	'	'	'	5	5
One to four family residential real estate	'	'	'	'	'
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	299	446	611	505	505
Principal payments	-14	-16	-22	-65	-88
Charge-offs	'	-6	-3	-13	-141
Transfers to OREO	'	-38	-256	-107	-107
Transfer to accruing	'	'	-127	'	'
Transfers from accruing	89	14	171	76	434
Other	9	'	9	4	8
Ending balance	383	400	383	400	611
Consumer	'	'	'	'	'
Roll-forward of nonaccrual activity	'	'	'	'	'
Beginning balance	7	'	30	'	'
Principal payments	'	'	-4	'	-2
Charge-offs	-6	-4	-25	-4	-4
Transfers from accruing	6	13	6	13	36
Ending balance	$7	$9	$7	$9	$30

LOANS_Details_7

LOANS (Details 7) (USD $)	6 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
	item	item
Troubled Debt Restructuring	'	'
Number of Modifications	1	1
Recorded Investment	$89	$528
Commercial, financial, and agricultural	'	'
Troubled Debt Restructuring	'	'
Number of Modifications	'	1
Recorded Investment	'	528
One to four family residential real estate	'	'
Troubled Debt Restructuring	'	'
Number of Modifications	1	'
Recorded Investment	$89	'

LOANS_Details_8

LOANS (Details 8) (USD $)

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Mar. 31, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Mar. 31, 2013

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

NONACCRUAL

NONACCRUAL

NONACCRUAL

NONACCRUAL

NONACCRUAL

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial real estate

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial, Financial, and Agricultural

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

Commercial Construction

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

One to four family residential real estate

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

NONACCRUAL

NONACCRUAL

NONACCRUAL

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

NONACCRUAL

NONACCRUAL

NONACCRUAL

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

ACCRUING

NONACCRUAL

NONACCRUAL

NONACCRUAL

NONACCRUAL

NONACCRUAL

Changes in troubled debt restructuring

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

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'

'

'

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'

'

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'

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'

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'

'

'

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'

'

'

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'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Beginning balance

$3,748

$8,995

$6,277

$8,056

$8,056

$3,240

$6,720

$5,663

$5,792

$5,792

$508

$614

$2,264

$2,264

$2,275

$1,009

$5,757

$3,520

$5,773

$5,773

$1,009

$3,588

$3,520

$3,611

$3,611

$2,162

$2,162

$2,169

$1,709

$1,221

$1,221

$1,694

$2,174

$1,221

$1,221

$1,186

$1,186

$2,174

$523

'

$508

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$187

$190

$204

$204

$206

$187

$99

$102

$102

$100

'

$91

$102

$102

$106

Principal payments

-2

-25

-2,531

-50

-1,950

-2

-25

-2,516

-50

-554

'

-15

'

-1,396

'

-2

-25

-2,513

-48

-1,467

-2

-25

-2,513

-48

-91

'

-1,376

'

-15

'

-465

'

'

'

-460

'

'

'

-15

-5

'

'

'

'

'

'

'

'

'

'

'

'

'

'

-3

-2

-18

'

'

-3

-2

-3

'

'

'

'

-15

'

Charge-offs

'

'

'

'

-793

'

'

'

'

'

'

'

'

-793

'

'

'

'

'

-793

'

'

'

'

'

'

-793

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

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'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

New restructured

'

'

'

964

1,492

'

'

'

953

953

'

'

11

539

'

'

'

'

7

7

'

'

'

'

'

7

7

'

'

953

1,481

'

'

953

953

'

'

'

'

528

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4

4

'

'

'

'

'

'

'

'

4

4

'

Transfers to nonaccrual

-89

'

-89

'

-528

-89

'

-89

'

-528

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

-528

'

'

'

-528

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

-89

-89

'

'

'

-89

-89

'

'

'

'

'

'

'

'

Transfer to accruing

'

'

-137

'

'

'

'

'

'

'

'

-91

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

89

'

'

'

'

'

'

'

'

'

-91

'

'

'

Transfer from accruing

89

'

'

'

'

'

'

91

'

'

89

89

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

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'

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'

'

'

'

'

'

89

'

'

'

'

'

91

'

'

'

89

89

'

'

'

Ending balance

$3,746

$8,970

$3,746

$8,970

$6,277

$3,149

$6,695

$3,149

$6,695

$5,663

$597

$597

$2,275

$614

$2,275

$1,007

$5,732

$1,007

$5,732

$3,520

$1,007

$3,563

$1,007

$3,563

$3,520

$2,169

'

$2,169

$1,694

$2,174

$1,709

$1,694

$2,174

$2,174

$1,186

$1,186

$1,186

$2,174

$508

$523

$508

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$858

$187

$187

$206

$190

$206

$98

$98

$100

$99

$100

$89

$89

$106

$91

$106

LOANS_Details_9

LOANS (Details 9) (Bank, USD $)	6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Activity in insider loans granted to the entity's executive officers and directors, including their families and firms	'	'	'
Loans outstanding, beginning of period	$9,043	$11,297	$11,297
New loans	'	496	496
Net activity on revolving lines of credit	1,178	-25	-266
Principal payments	-1,523	-1,298	-2,484
Loans outstanding, end of period	8,698	10,470	9,043
Unfunded commitments	575	'	'
Substandard	'	'	'
Activity in insider loans granted to the entity's executive officers and directors, including their families and firms	'	'	'
Loans outstanding, end of period	$0	$0	$0

MORTGAGE_SERVICING_RIGHTS_Deta

MORTGAGE SERVICING RIGHTS (Details) (Mortgage loans, USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Mortgage loans	'	'	'
Mortgage Loans	'	'	'
Residential first mortgage loans the Corporation has obligations to service	$138,000,000	'	'
Annual constant prepayment speed (as a percent)	10.13%	'	'
Discount rate (as a percent)	8.16%	'	'
Changes in mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances	'	'	'
Balance at beginning of period	1,129,000	638,000	638,000
Additions from loans sold with servicing retained	75,000	225,000	675,000
Amortization	-143,000	-80,000	-184,000
Balance at end of period	$1,061,000	$783,000	$1,129,000

BORROWINGS_Details

BORROWINGS (Details) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2014

item

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

Correspondent bank line of credit - holding company

Correspondent bank line of credit - holding company

Bank line of credit-wholly-owned assets based lending subsidiary

Correspondent bank term note, current floor rate of 4%, maturing March 22, 2017

First Rural Relending

Revolving line of credit

Mortgage related and municipal securities

Federal Home Loan Bank stock

One to four family residential real estate

BORROWINGS

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Borrowings

$42,087,000

$37,852,000

$35,925,000

$35,000,000

$35,000,000

$35,000,000

'

'

'

$500,000

$2,000,000

$2,835,000

$2,900,000

$852,000

$852,000

$925,000

'

'

Interest rate on note (as a percent)

'

'

'

1.82%

'

'

'

'

'

'

'

'

4.00%

1.00%

'

'

'

'

Loans pledged as collateral

'

'

'

'

'

'

'

'

44,140,000

'

'

'

'

'

'

'

125,000

'

Securities pledged as collateral, amortized cost

'

'

'

'

'

'

4,378,000

'

'

'

'

'

'

'

'

'

'

'

Securities pledged as collateral, fair value

'

'

'

'

'

'

4,530,000

'

'

'

'

'

'

'

'

'

'

'

Stock owned and pledged as collateral

'

'

'

'

'

'

'

3,060,000

'

'

'

'

'

'

'

'

'

'

Demand deposit account pledged as collateral

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

798,000

'

Number of banking borrowing relationships

2

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Variable rate basis

'

'

'

'

'

'

'

'

'

'90 days LIBOR

'

'

'

'

'

'

'

'90 days LIBOR

Variable rate (as a percent)

'

'

'

'

'

'

'

'

'

2.75%

'

'

'

'

'

'

'

2.75%

Floor rate (as a percent)

'

'

'

'

'

'

'

'

'

4.00%

'

'

'

'

'

'

'

'

Maximum borrowing capacity

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

10,000,000

Increased maximum borrowing capacity upon request

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$25,000,000

STOCK_COMPENSATION_PLANS_Detai

STOCK COMPENSATION PLANS (Details) (USD $)	0 Months Ended	1 Months Ended		6 Months Ended
	Aug. 31, 2013	Mar. 31, 2014	Aug. 31, 2012	Jun. 30, 2014	22-May-12	22-May-12
	Restricted Stock Units	Restricted Stock Units	Restricted Stock Units	Restricted Stock Units	2012 Incentive Compensation Plan	2012 Incentive Compensation Plan
						Stock Options
Stock Compensation Plans	'	'	'	'	'	'
Number of RSUs granted (in shares)	37,125	52,774	148,500	'	'	'
Total authorized share balance	'	'	'	'	575,000	392,152
Share price (in dollars per share)	'	$12.95	$7.91	'	'	'
Cost to the employee	'	'	'	$0	'	'
Vesting period	'	'4 years	'4 years	'	'	'
Recognition period of compensation cost to be recognized	'	'	'	'4 years	'	'
Compensation cost to be recognized	'	683,000	1,175,000	'	'	'
Number of RSUs unvested (in shares)	'	164,149	'	164,149	'	'
Compensation cost to be recognized	'	'	'	$1,270,000	'	'

STOCK_COMPENSATION_PLANS_Detai1

STOCK COMPENSATION PLANS (Details 2) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Stock option transactions	'	'	'
Outstanding shares at beginning of year	237,152	242,152	242,152
Granted during the year (in shares)	0	0	'
Expired / forfeited during the year (in shares)	'	'	-5,000
Outstanding shares at end of year	237,152	242,152	237,152
Exercisable shares at end of year	124,861	126,361	124,861
Weighted average exercise price per share at end of year (in dollars per share)	$9.80	$9.88	$9.80

STOCK_COMPENSATION_PLANS_Detai2

STOCK COMPENSATION PLANS (Details 3) (USD $)	6 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014
Stock option plans	'
Number of Shares, Outstanding	237,152
Number of Shares, Exercisable	124,861
Number of Shares, Unvested Options	112,291
Weighted Average Remaining Contractual Life-Years	'7 months 2 days
Percentage of stock options to be vested immediately upon issue	20.00%
Future compensation expenses	$0
Minimum	'
Stock option plans	'
Vesting period	'2 years
Maximum	'
Stock option plans	'
Vesting period	'5 years
$9.75	'
Stock option plans	'
Exercise Price (in dollars per share)	$9.75
Number of Shares, Outstanding	217,152
Number of Shares, Exercisable	120,861
Number of Shares, Unvested Options	96,291
Weighted Average Remaining Contractual Life-Years	'5 months 23 days
$10.65	'
Stock option plans	'
Exercise Price (in dollars per share)	$10.65
Number of Shares, Outstanding	10,000
Number of Shares, Exercisable	2,000
Number of Shares, Unvested Options	8,000
Weighted Average Remaining Contractual Life-Years	'1 year 14 days
$12.00	'
Stock option plans	'
Exercise Price (in dollars per share)	$12
Number of Shares, Outstanding	10,000
Number of Shares, Exercisable	2,000
Number of Shares, Unvested Options	8,000
Weighted Average Remaining Contractual Life-Years	'2 years 5 months 16 days

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
INCOME TAXES	'	'	'
Net operating loss (NOL) carryforwards	$17,200,000	'	'
Tax credit carryforwards	2,400,000	'	'
Expiration period from date of origination for net operating loss carryforwards	'20 years	'	'
Portion of the NOL subject to limitations for utilization	10,300,000	'	'
Annual limitation for usage of NOL	1,400,000	'	'
Annual limitation for usage of tax credits	476,000	'	'
Deferred tax assets, net of valuation allowance	9,097,000	9,933,000	8,367,000
Valuation allowance	760,000	'	'
Adjustment warranted to the valuation	$0	'	'

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
FAIR VALUE MEASUREMENTS	'	'	'
Blended interest rate for determining fair value of nonaccrual loans (as a percent)	0.00%	'	'
Financial assets:	'	'	'
Interest-bearing deposits	$235	$10	$10
Securities available for sale	47,374	44,388	47,307
Carrying Amount	'	'	'
Financial assets:	'	'	'
Total financial assets	570,743	546,199	528,610
Financial liabilities:	'	'	'
Total financial liabilities	526,289	504,333	484,061
Estimated Fair Value	'	'	'
Financial assets:	'	'	'
Total financial assets	572,509	546,566	522,870
Financial liabilities:	'	'	'
Total financial liabilities	528,115	503,100	482,288
Level 1 | Carrying Amount	'	'	'
Financial assets:	'	'	'
Cash and cash equivalents	20,746	18,219	26,219
Level 1 | Estimated Fair Value	'	'	'
Financial assets:	'	'	'
Cash and cash equivalents	20,746	18,219	26,219
Level 2 | Carrying Amount	'	'	'
Financial assets:	'	'	'
Interest-bearing deposits	235	10	10
Securities available for sale	47,374	44,388	47,307
Federal Home Loan Bank stock	3,060	3,060	3,060
Net loans	497,843	479,171	450,378
Financial liabilities:	'	'	'
Deposits	484,016	466,299	447,907
Borrowings	42,087	37,852	35,925
Level 2 | Estimated Fair Value	'	'	'
Financial assets:	'	'	'
Interest-bearing deposits	235	10	10
Securities available for sale	47,374	44,388	47,307
Federal Home Loan Bank stock	3,060	3,060	3,060
Net loans	499,609	479,538	444,638
Financial liabilities:	'	'	'
Deposits	485,230	465,431	446,438
Borrowings	42,699	37,487	35,621
Level 3 | Carrying Amount	'	'	'
Financial assets:	'	'	'
Accrued interest receivable	1,485	1,351	1,636
Financial liabilities:	'	'	'
Accrued interest payable	186	182	229
Level 3 | Estimated Fair Value	'	'	'
Financial assets:	'	'	'
Accrued interest receivable	1,485	1,351	1,636
Financial liabilities:	'	'	'
Accrued interest payable	$186	$182	$229

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Fair value measurements	'	'	'
Other real estate owned	$1,947	$1,884	$2,481
Nonrecurring | Total	'	'	'
Fair value measurements	'	'	'
Impaired loans	2,652	2,024	3,983
Other real estate owned	1,947	1,884	2,481
Nonrecurring | Significant Unobservable Inputs (Level 3)	'	'	'
Fair value measurements	'	'	'
Impaired loans	2,652	2,024	3,983
Other real estate owned	1,947	1,884	2,481
Recurring	'	'	'
Fair value measurements	'	'	'
Other assets	0	'	0
Other liabilities	0	'	0
Recurring | Significant Unobservable Inputs (Level 3)	'	'	'
Fair value measurements	'	'	'
Assets	0	0	0
Liabilities	$0	$0	$0

FAIR_VALUE_MEASUREMENTS_Detail2

FAIR VALUE MEASUREMENTS (Details 3) (Nonrecurring, USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Fair value	'	'	'	'	'
Total Losses	$36	$97	$444	$507	$2,340
Investments	0	'	0	'	'
Impaired loans	'	'	'	'	'
Fair value	'	'	'	'	'
Total Losses	22	10	430	418	2,075
Other real estate owned	'	'	'	'	'
Fair value	'	'	'	'	'
Total Losses	$14	$87	$14	$89	$265

SHAREHOLDERS_EQUITY_Details

SHAREHOLDERS' EQUITY (Details) (USD $)	0 Months Ended		1 Months Ended	3 Months Ended	12 Months Ended	1 Months Ended		6 Months Ended
	Feb. 27, 2013	Dec. 17, 2013	Aug. 31, 2012	Mar. 31, 2014	Dec. 31, 2013	Apr. 30, 2009	Dec. 31, 2012	Jun. 30, 2014
			Steinhardt Capital Investors, LLLP	Common Stock	Common Stock	US Treasury with TARP Capital Purchase Program	US Treasury with TARP Capital Purchase Program	US Treasury with TARP Capital Purchase Program
						Preferred Stock	Warrant	Warrant
						Series A
Participation in the TARP Capital Purchase Program	'	'	'	'	'	'	'	'
Previously announced rights offering amount	'	'	$7,000,000	'	'	'	'	'
Shares issued	'	'	2,140,123	'	'	11,000	'	'
Issuance of common stock	'	'	11,506,000	'	'	'	'	'
Repurchase of common stock warrants issued	'	'	'	'	'	'	'	379,310
Purchase of common stock warrants	'	'	'	'	'	'	1,300,000	'
Number of shares repurchased	'	'	'	13,700	55,594	'	'	'
Number of shares authorized to be repurchased	600,000	'	'	'	'	'	'	'
Number of additional shares authorized to be repurchased	'	$600,000	'	'	'	'	'	'

COMMITMENTS_CONTINGENCIES_AND_2

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Financial Instruments With Off-Balance-Sheet Risk	'	'	'
Commitments	$81,628	$59,338	$64,253
Commitments to extend credit	'	'	'
Financial Instruments With Off-Balance-Sheet Risk	'	'	'
Commitments, variable rate	54,048	36,039	37,462
Commitments, fixed rate	18,604	15,070	19,873
Standby letters of credit	'	'	'
Financial Instruments With Off-Balance-Sheet Risk	'	'	'
Commitments, variable rate	5,742	5,077	3,805
Percentage collateralization on financial instruments allowed under commitments	100.00%	'	'
Credit card commitments	'	'	'
Financial Instruments With Off-Balance-Sheet Risk	'	'	'
Commitments, fixed rate	$3,234	$3,152	$3,113

COMMITMENTS_CONTINGENCIES_AND_3

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
In Thousands, unless otherwise specified				Commercial real estate loans	Commercial real estate loans	Commercial real estate loans	Bank	Bank
							Commercial real estate loans	Commercial real estate loans
							Commercial loan portfolio	Commercial loan portfolio
							Credit risk concentration	Credit risk concentration
Concentration of Credit Risk	'	'	'	'	'	'	'	'
Loan portfolio	$497,843	$479,171	$450,378	$272,870	$266,960	$240,702	$103,598	$95,510
Percentage of concentration risk under a specified benchmark	'	'	'	'	'	'	27.66%	27.80%

SUBSEQUENT_EVENT_Details

SUBSEQUENT EVENT (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Jul. 18, 2014
				Subsequent Event
				Peninsula
				item
SUBSEQUENT EVENT	'	'	'	'
Purchase price	'	'	'	$13,285,000
Purchase price on contemplation of special dividend to shareholders prior to consummation	'	'	'	10,500,000
Assets	$595,869,000	$572,800,000	$553,501,000	$132,000,000
Number of banking offices	'	'	'	6