First Farmers and Merchants (FFMH) 10-Q 11 Aug 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 05, 2014
Document and Entity Information:	'	'
Entity Registrant Name	'FIRST FARMERS & MERCHANTS CORP	'
Entity Central Index Key	'0000703329	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	4,936,817
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and due from banks	$24,446	$20,391
Interest-bearing deposits	11,423	25,167
Federal funds sold	1,300	9,850
Total cash and cash equivalents	37,169	55,408
Securities:	'	'
Available-for-sale (amortized cost $372,737 and $346,892 as of June 30, 2014 and December 31, 2013, respectively)	365,017	329,714
Held-to-maturity (fair market value $24,528 and $28,595 as of June 30, 2014 and December 31, 2013, respectively)	23,902	27,839
Total securities	388,919	357,553
Loans, net of deferred fees	618,687	606,766
Allowance for loan and lease losses	-8,635	-8,595
Net loans	610,052	598,171
Bank premises and equipment, net	24,799	24,868
Other real estate owned	859	1,438
Bank owned life insurance	26,231	25,867
Goodwill	9,018	9,018
Deferred tax asset	7,221	10,905
Other assets	10,705	10,605
TOTAL ASSETS	1,114,973	1,093,833
Deposits	'	'
Noninterest-bearing	185,420	179,823
Interest-bearing	781,463	777,514
Total deposits	966,883	957,337
Securities sold under agreements to repurchase	20,738	18,095
Accounts payable and accrued liabilities	18,040	15,728
TOTAL LIABILITIES	1,005,661	991,160
SHAREHOLDERS' EQUITY	'	'
Common stock - $10 par value per share, 8,000,000 shares authorized; 4,936,817 and 5,021,012 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively	49,368	50,210
Retained earnings	63,093	61,369
Accumulated other comprehensive loss	-3,244	-9,001
TOTAL SHAREHOLDERS' EQUITY BEFORE NONCONTROLLING INTEREST - PREFERRED STOCK OF SUBSIDIARY	109,217	102,578
Noncontrolling interest - preferred stock of subsidiary	95	95
TOTAL SHAREHOLDERS' EQUITY	109,312	102,673
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$1,114,973	$1,093,833

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Stockholders equity number of shares par value and other disclosures	'	'
Available-for-sale securities, amortized cost	$372,737	$346,892
Held-to-maturity securities, fair value	$24,528	$28,595
Common Stock, par or stated value	$10	$10
Common Stock, shares authorized	8,000,000	8,000,000
Common Stock, shares issued	4,936,817	5,021,012
Common Stock, shares outstanding	4,936,817	5,021,012

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (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
INTEREST AND DIVIDEND INCOME	'	'	'	'
Interest and fees on loans	$7,006	$7,314	$13,942	$14,276
Income on investment securities	'	'	'	'
Taxable interest	1,407	1,381	2,761	2,818
Exempt from federal income tax	610	737	1,289	1,483
Other interest and dividend income	80	91	153	169
Total interest income	9,103	9,523	18,145	18,746
INTEREST EXPENSE	'	'	'	'
Interest on deposits	607	696	1,211	1,431
Interest on other borrowings	16	55	32	154
Total interest expense	623	751	1,243	1,585
Net interest income	8,480	8,772	16,902	17,161
Provision for loan and lease losses	'	'	'	'
Net interest income after provision	8,480	8,772	16,902	17,161
NON INTEREST INCOME	'	'	'	'
Gain on loans sold	59	151	95	330
Trust department income	583	564	1,253	1,160
Service fees on deposit accounts	1,644	1,602	3,164	3,167
Brokerage fees	118	92	222	199
Earnings on bank owned life insurance	78	114	189	201
Gain on sale of securities	502	6	547	829
Loss on foreclosed property	-10	-29	-4	-168
Other non-interest income	117	120	276	231
Total non-interest income	3,091	2,620	5,742	5,949
NONINTEREST EXPENSE	'	'	'	'
Salaries and employee benefits	4,376	4,525	8,897	8,997
Net occupancy expense	476	533	943	1,056
Depreciation expense	351	385	711	765
Data processing expense	573	605	1,161	1,149
Legal and professional fees	200	305	428	488
Stationary and office supplies	85	71	155	145
Advertising and promotions	351	288	679	541
FDIC insurance premium expense	160	51	289	237
Other real estate expense	44	18	51	39
Other noninterest expense	1,409	1,376	2,809	2,845
Total noninterest expenses	8,025	8,157	16,123	16,262
Income before provision for income taxes	3,546	3,235	6,521	6,848
Provision for income taxes	941	842	1,654	1,399
Net income before noncontrolling interest - dividends on preferred stock of subsidiary	2,605	2,393	4,867	5,449
Noncontrolling interest-dividends on preferred stock subsidiary	8	8	8	8
Net income for common shareholders	$2,597	$2,385	$4,859	$5,441
PER SHARE	'	'	'	'
Weighted average shares outstanding	4,977,506	5,133,051	4,997,536	5,155,779
Earnings per share	$0.52	$0.46	$0.97	$1.06

CONSOLIDATED_STATEMENT_OF_COMP

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Net income	$2,597	$2,385	$4,859	$5,441
Comprehensive income (loss)	'	'	'	'
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of $1,955 and ($5,044) for the three months ended June 30, 2014 and 2013, respectively and net of taxes of $3,852 and ($6,064) for the six months ended June 30, 2014 and 2013, respectively	3,123	-8,058	6,153	-9,687
Less: reclassification adjustment for realized gains included in net income, net of taxes of ($194) and ($2), for the three months ended June 30, 2014 and 2013, respectively and net of taxes of ($211) and ($319) for the six months ended June 30, 2014 and 2013, respectively	-308	-4	-336	-510
Change in unfunded portion of postretirement benefit obligations, net of taxes of ($19), and $1,038, for the three months ended June 30, 2014 and 2013, respectively and net of taxes of ($37) and $1,008 for the six months ended June 30, 2014 and 2013, respectively	-31	1,657	-60	1,611
Other comprehensive income (loss)	2,784	-6,404	5,757	-8,586
Comprehensive income (loss)	5,381	-4,019	10,616	-3,145
Less: comprehensive income attributable to the noncontrolling interest	'	'	'	'
Total comprehensive income (loss)	$5,381	($4,019)	$10,616	($3,145)

CONSOLIDATED_STATEMENT_OF_COMP1

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) PARENTHETICALS (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$1,955	($5,044)	$3,852	($6,064)
Reclassification adjustment for realized gain included in net income, taxes	-194	-2	-211	-319
Change in unfunded portion of postretirement benefit obligations, taxes	($19)	$1,038	($37)	$1,008

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES	'	'
Net income available for common shareholders	$4,859	$5,441
Adjustments to reconcile net income to net cash provided by (used in) operating activities	'	'
Provision for loan losses	'	'
Provision for depreciation and amortization of premises and equipment	711	765
Deferred tax expense	80	-160
Net securities gains	-547	-829
Gains on loans sold	-95	-330
Proceeds from sale of mortgage loans held for sale	4,509	18,072
Funding of mortgage loans held for sale	-4,730	-16,645
Loss on other real estate owned	4	168
Loss on sale of assets	1	16
Amortization of investment security premiums, net of accretion of discounts	513	670
Increase in cash surrender value of life insurance contracts	-189	-201
(Increase) decrease in other assets	216	1,394
Increase (decrease) in other liabilities	2,259	1,623
Total adjustments	2,732	4,543
Net cash provided by operating activities	7,591	9,984
INVESTING ACTIVITIES	'	'
Proceeds from sales of available-for-sale securities	19,475	137,150
Proceeds from maturities and calls of available-for-sale securities	15,095	32,658
Proceeds from maturities and calls of held-to-maturity securities	3,930	1,835
Purchases of investment securities available-for-sale	-60,374	-187,475
Net decrease in loans	-11,886	-10,922
Proceeds from sale of other real estate owned	567	553
Purchases of premises and equipment	-643	-177
Purchase of life insurance policy	-175	-485
Net cash used in investing activities	-34,011	-26,863
FINANCING ACTIVITIES	'	'
Net increase (decrease) in deposits	9,546	-11,128
Net increase in securities sold under agreements to repurchase	2,643	727
Payments to FHLB borrowings	'	-7,000
Repurchase of common stock	-2,150	-2,101
Cash dividends paid on common stock	-1,858	-1,883
Net cash provided by (used in) financing activities	8,181	-21,385
Decrease in cash and cash equivalents	-18,239	-38,264
Cash and cash equivalents at beginning of period	55,408	70,396
Cash and cash equivalents at end of period	37,169	32,132
Supplemental disclosures of cash flow information	'	'
Interest paid	1,190	1,548
Income taxes paid	1,457	655
Loans to facilitate sale of other real estate owned	'	1,760
Real estate acquired in settlement of loans	$5	$312

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
[AccountingPoliciesAbstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management of First Farmers and Merchants Corporation (the “Corporation”), necessary to fairly present the financial position, results of operations and cash flows of the Corporation.  Those adjustments consist only of normal recurring adjustments.
	The accompanying condensed consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Corporation's Annual Report on Form 10-K.  Accordingly, the reader of this Quarterly Report on Form 10-Q should refer to the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013 for further information in this regard.  The condensed consolidated balance sheet of the Corporation as of December 31, 2013 has been derived from the audited consolidated balance sheet of the Corporation as of that date.  The results of operations for the period are not necessarily indicative of the results to be expected for the full year.
	Reclassifications:  Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year presentation.  These reclassifications had no effect on net income.

ACCUMULATED_OTHER_COMPREHENSIV

ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) BY COMPONENT	6 Months Ended
	Jun. 30, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") BY COMPONENT	'
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") BY COMPONENT (All dollar amounts are reported in thousands except share and per share data.)	'
	NOTE 2 –ACCUMULATED OTHER COMPREHENSIVE INCOME (“AOCI”) BY COMPONENT
	Amounts reclassified from AOCI and the affected line items in the statements of income during the periods ended June 30, 2014 and 2013, were as follows:
			Amounts reclassified from AOCI
			Six Months Ended
			June 30, 2014			June 30, 2013			Affected Line Item in the Statements of Income
		Unrealized gains on available-for-sale
		securities
			$	547		$	829		Gain on sale of securities
				547			829		Total reclassified amount before tax and
									noncontrolling interest
				(211	)		(319	)	Tax expense
				336			510		Net reclassified amount
		Amortization of defined benefit pension items
		Actuarial losses		(97	)		(47	)	Components are included in the computation of net
									periodic pension cost and presented in Note 7
				(97	)		(47	)	Total reclassified amount before tax
				37			18		Tax benefit
				(60	)		(29	)	Net reclassified amount
		Total reclassifications out of AOCI	$	276		$	481
			Amounts reclassified from AOCI
			Three Months Ended
			June 30, 2014			June 30, 2013			Affected Line Item in the Statements of Income
		Unrealized gains on available-for-sale
		securities
			$	502		$	6		Gain on sale of securities
				502			6		Total reclassified amount before tax and
									noncontrolling interest
				(193	)		-2		Tax expense
				309			4		Net reclassified amount
		Amortization of defined benefit pension items
		Actuarial losses		(50	)		-		Components are included in the computation of net
				(50	)		-		Total reclassified amount before tax
				19			-		Tax benefit
				(31	)		-		Net reclassified amount
		Total reclassifications out of AOCI	$	278		$	4
	The components of accumulated other comprehensive income, included in shareholder's equity, are as follows:
		June 30,2014					31-Dec-13
	Net unrealized losses on available-for-sale securities	$	(7,720	)			$	(17,178	)
	Net defined benefit pension plan deferred amounts		2445					2,542
			(5,275	)				(14,636	)
	Tax effect		2,031					5,635
	Accumulated other comprehensive loss	$	(3,244	)			$	(9,001	)

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS	'
FAIR VALUE MEASUREMENTS (All dollar amounts are reported in thousands except share and per share data.)	'
	NOTE 3 – FAIR VALUE MEASUREMENTS
	The fair value of an asset or liability is the price that would be received in a sale of that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. Fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs.  In estimating fair value, the Corporation utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
	Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities.
	Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, market consensus, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
	Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
	Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Corporation's monthly and/or quarterly valuation process.
	Recurring Measurement
	The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and by the level within the fair value hierarchy utilized to measure fair value:
		Assets measured at fair value on a recurring basis as of June 30, 2014
		Available-For-Sale Securities	Level 1			Level 2				Level 3				Total
		U.S. Government agencies	$	-		$	109,401			$	-			$	109,401
		U.S. government sponsored agency mortgage backed securities	-				195,706				-				195,706
		States and political subdivisions	-				40,940				-				40,940
		Corporate bonds	-				18,970				-				18,970
		Total assets at fair value	$	-		$	365,017			$	-			$	365,017
		Assets measured at fair value on a recurring basis as of December 31, 2013
		Available-For-Sale Securities	Level 1				Level 2				Level 3				Total
		U.S. Government agencies	$	-		$	105,072			$	-			$	105,072
		U.S. government sponsored agency mortgage backed securities	-				157,423				-				157,423
		States and political subdivisions	-				46,337				-				46,337
		Corporate bonds	-				20,882				-				20,882
		Total assets at fair value	$	-		$	329,714			$	-			$	329,714
	Below is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.  There were no significant changes in the valuation techniques during the six months ended June 30, 2014.
	Available-for-Sale Securities
	Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.  If quoted market prices are not available, the Corporation obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement.  The Corporation reviews the pricing quarterly to verify the reasonableness of the pricing.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities terms and conditions, among other factors.  U.S. government agencies, state and political subdivisions, U.S. government sponsored agency mortgage-backed securities and corporate bonds are classified as Level 2 inputs.
	Nonrecurring Measurements
	The following table summarizes financial assets measured at fair value on a nonrecurring basis as of  June 30, 2014 and December 31, 2013, by the level within the fair value hierarchy utilized to measure fair value:
		30-Jun-14	Level 1				Level 2				Level 3				Total
		Impaired loans (collateral-dependent)	$	-			$	-			$	4,416			$	4,416
		Other real estate owned	-					-				-				-
		31-Dec-13	Level 1					Level 2				Level 3			Total
		Impaired loans (collateral-dependent)	$	-			$	-			$	2,214			$	2,214
		Other real estate owned	-					-				208				208
	Impaired Loans (Collateral dependent)
	The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell.  Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.
	The Corporation considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results. Fair value adjustments for collateral-dependent impaired loans for each of the six months ended June 30, 2014 and 2013 were $916 and $342, respectively, and $79 for the year ended December 31, 2013.
	Loans considered impaired under ASC 310-35, “Impairment of a Loan,” are loans for which, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement.  Impaired loans are subject to nonrecurring fair value adjustments to reflect (1) subsequent write-downs that are based on the observable market price or current appraised value of the collateral or (2) changes in the specific reserve.
	Other Real Estate Owned
	Other real estate owned (“OREO”) is initially recorded at fair value at the time of acquisition, as determined by independent appraisal or evaluation by the Corporation, less costs to sell when the real estate is acquired in settlement of loans.  Quarterly evaluations of OREO are performed to determine if there has been any subsequent decline in the value of OREO properties.  Estimated fair value of OREO is based on appraisals or evaluations, less costs to sell.  OREO is classified within Level 3 of the fair value hierarchy.  OREO assets are subject to nonrecurring fair value adjustments to reflect subsequent partial write-downs that are based on the observable market price or current appraised value of the collateral.  There were no fair value adjustments for OREO for the six months ended June 30, 2014. Fair value adjustments for OREO for the six months ended June 30, 2013 $0, and $395 for the year ended December 31, 2013.
	Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the Chief Credit Officer.  Appraisals are required annually and reviewed for accuracy and consistency by the Chief Credit Officer.  The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell.  Appraisers are selected from the list of approved appraisers maintained by management.
	Unobservable (Level 3) Inputs
	The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements
			Quantitative Information about Level 3 Fair Value Measurements
			Fair value at							Valuation					Unobservable input		Range (Weighted average)
			30-Jun-14							technique(s)
	Impaired loans (collateral-dependent)		$	4,416						Market comparable properties					Marketability discount		5.0%-37.0% (35%)
	Other real estate owned		$	-						Market comparable properties					Marketability discount		N/A
			Quantitative Information about Level 3 Fair Value Measurements
			Fair value at							Valuation					Unobservable		Range (Weighteda verage)
			31-Dec-13							technique(s)					input
	Impaired loans (collateral-dependent)		$	2,414						Market comparable properties					Marketability discount		5.0% - 10.0% (7%)
	Other real estate owned		$	208						Market comparable properties					Marketability discount		5.0% - 10.0% (7%)
	ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.
	The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practicable to estimate that value:
	Cash and due from banks – The carrying amount approximates fair value.
	Interest bearing deposits in other banks – The carrying amount approximates fair value.
	Federal Home Loan Bank stock – The carrying value of Federal Home Loan Bank (“FHLB”) stock approximates fair value based on the redemption provisions of the FHLB.
	Federal Reserve Bank stock – The carrying value of Federal Reserve Bank stock approximates fair value based on the redemption provisions of the Federal Reserve Bank.
	Federal funds sold – The carrying amount approximates fair value.
	Securities available for sale – The carrying amount approximates fair value.
	Securities held-to-maturity – Fair values are based on quoted market prices, if available.  If a quoted price is not available, fair value is estimated using quoted prices for similar securities.  The fair value estimate is provided to management from a third party using modeling assumptions specific to each type of security that are reviewed and approved by management.  Quarterly sampling of fair values provided by additional third parties supplement the fair value review process.
	Loans held for sale – The fair value is predetermined at origination based on sale price.
	Loans (net of the allowance for loan and leases losses)– The fair value of fixed rate loans and variable rate mortgage loans is estimated by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.  For other variable rate loans, the carrying amount approximates fair value.
Accrued interest receivable – The carrying amount approximates fair value.
Deposits – The fair value of fixed maturity time deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.  For deposits including demand deposits, savings accounts, NOW accounts and certain money market accounts, the carrying value approximates fair value.
Repurchase agreements – The fair value is estimated by discounting future cash flows using current rates.
Advances from FHLB – The fair value of these fixed-maturity advances is estimated by discounting future cash flows using rates currently offered for advances of similar remaining maturities.
Accrued interest payable – The carrying amount approximates fair value.
Commitments to extend credit and letters of credit – The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.  The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date.  The fair values of these commitments are not material.
The following table presents estimated fair values of the Corporation's financial instruments as of June 30, 2014 and December 31, 2013, and indicates the level within the fair value hierarchy of the valuation techniques
											Fair value measurements at June 30, 2014 using
	30-Jun-14								Carrying		Quoted prices				Significant other				Significant
									amount		in active markets for				observable inputs				unobservable inputs
											identical assets				(Level 2)				(Level 3)
											(Level 1)
	Financial assets
	Cash and due from banks							$	24,446			$		24,446		$		-		$	-
	Interest-bearing deposits in other banks								11,423					11,423				-			-
	Federal funds sold								1,300					1,300				-			-
	Federal Home Loan Bank and Federal Reserve Bank stock								3,879					-				3,879			-
	Securities available-for-sale								365,017					-				365,017			-
	Securities held-to-maturity								23,902					-				24,528			-
	Loans held for sale								674					-				674			-
	Loans, net								610,052					-				-			618,673
	Accrued interest receivable								4,078					-				4,078			-
	Financial liabilities
	Non-interest bearing deposits								185,420					185,420				-			-
	Interest bearing deposits								781,463					-				782,335			-
	Repurchase agreements								20,738					-				20,738			-
	Accrued interest payable								610					-				610			-
	Off-balance sheet credit related instruments:
	Commitments to extend credit								-					-				-			-
	Letters of credit								-					-				-			-
							Fair value measurements at December 31, 2013 using
	31-Dec-13			Carrying			Quoted prices				Significant other				Significant
				amount			in active markets for				observable inputs				unobservable inputs
							identical assets				(Level 2)				(Level 3)
							(Level 1)
	Financial assets
	Cash and due from banks			$	20,391			$	20,391			$	-			$	-
	Interest-bearing deposits in other banks				25,167				25,167				-				-
	Federal funds sold				9,850				9,850				-				-
	Federal Home Loan Bank and Federal Reserve Bank stock				3,879				-				3,879				-
	Securities available-for-sale				329,714				-				329,714				-
	Securities held-to-maturity				27,839				-				28,595				-
	Loans held for sale				327				-				327				-
	Loans, net				598,171				-				-				607,113
	Accrued interest receivable				4,183				-				4,183				-
	Financial liabilities
	Non-interest bearing deposits				179,823				179,823				-				-
	Interest bearing deposits				777,514				-				779,224				-
	Repurchase agreements				18,095				-				18,095				-
	Accrued interest payable				663				-				663				-
	Off-balance sheet credit related instruments:
	Commitments to extend credit				-				-				-				-
	Letters of credit				-				-				-				-

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2014
SECURITIES	'
SECURITIES (All dollar amounts are reported in thousands except share and per share data.)	'
	NOTE 4 – SECURITIES
	The amortized cost and estimated fair value of securities at June 30, 2014 and December 31, 2013 were as follows:
				Amortized				Gross unrealized													Fair
		30-Jun-14		cost				Gains						Losses							value
		Available-for-sale securities
		U.S. Government agencies		$	113,417			$	17					$	4,033						$	109,401
		U.S. Government sponsored agency mortgage backed securities			201,086				57						5,437							195,706
		States and political subdivisions			39,454				1,558						72							40,940
		Corporate bonds			18,780				219						29							18,970
				$	372,737			$	1,851					$	9,571						$	365,017
		Held-to-maturity securities
		States and political subdivisions		$	23,902			$	626					$	-						$	24,528
				Amortized				Gross unrealized													Fair
		31-Dec-13		cost				Gains						Losses							value
		Available-for-sale securities
		U.S. Government agencies		$	112,863			$	-					$	7,791						$	105,072
		U.S. Government sponsored agency mortgage backed securities			168,045				27						10,649							157,423
		States and political subdivisions			45,237				1,240						140							46,337
		Corporate bonds			20,747				280						145							20,882
				$	346,892			$	1,547					$	18,725						$	329,714
		Held-to-maturity securities
		States and political subdivisions		$	27,839			$	756					$	-						$	28,595
	Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2014 and December 31, 2013 was $294,828 and $269,691, which was 76% and 75%, respectively, of the Corporation's available-for-sale and held-to-maturity investment portfolio. The Corporation evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of June 30, 2014 and December 31, 2013 indicated that all impairment was considered temporary, market driven due primarily to fluctuations in market interest rates and not credit-related.
	The following table shows the Corporation's investments' gross unrealized losses and fair value of the Corporation's investments with unrealized losses that were not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities had been in a continuous unrealized loss position at June 30, 2014 and December 31, 2013
		Less than 12 months										12 months or greater								Total
	30-Jun-14	Fair				Unrealized						Fair				Unrealized				Fair			Unrealized
	Type of Security	value				losses						value				losses				value			losses
	US Government agencies	$	4,501			$	10					$	103,668			$	4,023			$	108,169		$	4,033
	US Government sponsored agency mortgage
	backed securities	36,136				175						137,879				5,262				174,015			5,437
	States and political subdivisions	5,653				42						2,147				30				7,800			72
	Corporate bonds	1,311				2						3,533				27				4,844			29
		$	47,601			$	229					$	247,227			$	9,342			$	294,828		$	9,571
	31-Dec-13	Less than 12 months										12 months or greater								Total
		Fair				Unrealized						Fair				Unrealized				Fair			Unrealized
	Type of Security	value				losses						value				losses				value			losses
	US Government agencies	$	100,533			$	7,330					$	4,539			$	461			$	105,072		$	7,791
	US Government sponsored agency mortgage
	backed securities	144,134				10,073						8,698				576				152,832			10,649
	States and political subdivisions	2,615				140						-				-				2,615			140
	Corporate bonds	8,590				121						582				24				9,172			145
		$	255,872			$	17,664					$	13,819			$	1,061			$	269,691		$	18,725
	The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at June 30, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
			Available for sale							Held to maturity
		30-Jun-14	Amortized			Estimated				Amortized								Estimated
			cost			fair value				cost								fair value
		Within one year	$	4,005		$		4,052		$	3,575							$	3,653
		One to five years		33,454				33,419			5,334								5,507
		Five to ten years		115,873				112,826			14,993								15,368
		After ten years		18,319				19,014			-								-
		Mortgage-backed securities		201,086				195,706			-								-
		Total	$	372,737		$		365,017		$	23,902							$	24,528
	The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $218,036 at June 30, 2014 and $210,494 at December 31, 2013.
	The book value of securities sold under agreements to repurchase amounted to $34,975 at June 30, 2014 and $34,978 at December 31, 2013.
	The Corporation realized gross gains of approximately $560 and $6 for the three month periods ending June 30, 2014 and 2013, respectively, and gross gains of approximately $605 and $829, for the six months ending June 30, 2014 and 2013, respectively, resulting from sales of available-for-sale securities. Gross losses of approximately $58 were included in the three and six-month periods ended June 30, 2014. Gross losses of approximately $196 were included in the three and six-month periods ended June 30, 2013.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2014
LOANS	'
LOANS (All dollar amounts are reported in thousands except share and per share data.)	'
	NOTE 5 – LOANS
	The following table presents the Corporation's loans by class as of June 30, 2014 and December 31, 2013:
			30-Jun-14			December 31, 2013
	Commercial:
	Commercial and industrial	$	88,990		$	94,702
	Non-farm, nonresidential real estate		171,900			176,213
	Construction and development		40,955			29,938
	Commercial loans secured by real estate		32,249			26,940
	Other commercial		23,429			26,582
	Total commercial		357,523			354,375
	Residential:
	Consumer loans		9,986			10,957
	Single family residential		222,156			213,763
	Other retail		29,022			27,671
	Total residential and consumer		261,164			252,391
			618,687			606,766
	Less:
	Allowance for possible loan losses		-8,635			-8,595
	Total net loans	$	610,052		$	598,171
	The amount of capitalized fees and costs under ASC 310-20, included in the above loan totals were $908 and $831 at June 30, 2014 and December 31, 2013.
	Loan Origination/Risk Management. The Corporation has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of credit risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.
	Commercial and industrial loans are underwritten after evaluating and understanding a borrower's ability to operate profitably and expand its business prudently. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower's management possesses sound ethics and solid business acumen, the Corporation's management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
	Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Corporation avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. The Corporation also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At June 30, 2014, approximately half of the outstanding principal balance of the Corporation's commercial real estate loans was secured by owner-occupied properties.
	With respect to loans to developers and builders (construction and development) that are secured by non-owner occupied properties that the Corporation may originate from time to time, the Corporation generally requires the borrower to have had an existing relationship with the Corporation and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Corporation until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans because of their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.
	The Corporation originates consumer retail loans utilizing a computer-based credit scoring analysis to supplement the underwriting process. To monitor and manage consumer retail loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80%, collection remedies, the number of such loans a borrower can have at one time and documentation requirements.
	The Corporation contracts with a third party vendor to perform loan reviews.  The Corporation reviews and validates the credit risk program on an annual basis. Results of these reviews are presented to management.  The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Corporation's policies and procedures.
	A concentration of credit occurs when obligations, direct or indirect, of the same or affiliated interests represent 15% or more of the Corporation's capital structure. The Board of Directors recognizes that the Corporation's geographic market area imposes some limitations regarding loan diversification if the Corporation is to perform the function for which it has been chartered. Specifically, lending to qualified borrowers within the Corporation's market area will naturally cause concentrations of real estate loans in the primary communities served by the Corporation and loans to employees of major employers in the area.
	All closed-end commercial loans (excluding loans secured by real estate) are charged off no later than 90 days delinquent.  If a loan is considered uncollectable, it is charged off earlier than 90 days delinquent.  When a commercial loan secured by real estate is past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual with a specific reserve equal to the difference between book value and fair value assigned to the credit until such time as the property has been foreclosed upon.  When the foreclosed property has been legally assigned to the Corporation, a charge-off is taken with the remaining balance, which reflect the fair value less estimated costs to sell, transferred to other real estate owned.
	All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (five monthly payments) delinquent.  If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent.  For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual and foreclosure proceedings are initiated.  When the foreclosed property has been legally assigned to the Corporation, a charge-off is taken with the remaining balance reflecting the fair value less estimated costs to sell transferred to other real estate owned.
	Non-Accrual and Past Due Loans.  Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when (i) principal or interest has been in default for a period of 90 days or more or (ii) full payment of principal and interest is not expected. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (three to six months) of repayment performance by the borrower. The Corporation had two loans that were 90 days or more past due that were not included in nonaccrual loans as of June 30, 2014. The aggregate amount of these loans at June 30, 2014 was $70. The Corporation had no loans that were 90 days or more past due that were not included in nonaccrual loans as of December 31, 2013.
	The following tables provide details regarding the aging of the Corporation's loan portfolio as of June 30, 2014 and December 31, 2013
	30-Jun-14	30 - 89 Days Past Due			90 Days and			Total Past Due					Current				Total Loans
					Greater Past Due
	Retail:
	Consumer	$	92		$	-		$	92				$	9,894			$	9,986
	Single family residential	1,294			651			1,945						220,211			222,156
	Other retail	-			-			-						29,022			29,022
	Retail total		1,386			651					2,037				259,127		$		261,164
	Commercial:
	Commercial and industrial		716			1,225			1,941					87,049			$	88,990
	Non-farm, non-residential real estate	258			236			494					171,406				171,900
	Construction and development	-			-			-					40,955				40,955
	Commercial loans secured by real estate	28			173			201					32,048				32,249
	All other commercial	468			1,170			1,638					21,791				23,429
	Commercial total		1,470			2,804				4,274					353,249		$		357,523
	Total	$	2,856		$	3,455		$		6,311			$		612,376		$		618,687
	31-Dec-13	30 - 89 Days Past Due			90 Days and			Total Past Due					Current				Total Loans
					Greater Past Due
	Retail:
	Consumer loans	$	182		$	3		$	185				$	10,772			$	10,957
	Single family residential	3,805			83			3,876					209,887				213,763
	Other retail	319			28			359					27,312				27,671
	Retail total		4,306			114			4,420					247,971			$	252,391
	Commercial:
	Commercial and industrial		428			1,328			1,756					92,946			$	94,702
	Non-farm, non-residential real estate	393			-			393					175,820				176,213
	Construction and development	-			28			28					29,910				29,938
	Commercial loans secured by real est	38			178			216					26,724				26,940
	Other commercial	-			1,249			1,249					25,333				26,582
	Commercial total		859			2,783			3,642					350,733			$	354,375
	Total	$	5,165		$	2,897		$	8,062				$	598,704			$	606,766
	The following tables summarize the impaired loans by loan type as of June 30, 2014, December 31, 2013 and June 30, 2013:
																								Average Recorded
Investment
30-Jun-14			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
			Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
			Principal Balance					With No Allowance						With					Investment
														Allowance
Commercial:
Commercial and industrial			$	2,847				$	1,995					$	226				$	2,221	$	14		$	2,247		$	2,267	$	28
Non-farm, non-residential real estate				9,994					3,998						5,425					9,423		1,217			9,533			9,650		245
Construction and development				250					250						-					250		-			250			282		8
Other commercial				3,392					2,801						173					2,974		29			3,040			3,151		104
Commercial total				16,483					9,044						5,824					14,868		1,260			15,070			15,350		385
Retail:
Single family residential				1,270					429						728					1,157		118			1,163			1,171		26
Other retail				-					-						-					-		-				-		-		-
Retail total				1,270					429						728					1,157		118			1,163			1,171		26
Total			$	17,753				$	9,473					$	6,552				$	16,025	$	1,378		$	16,233		$	16,521	$	411
																							Average Recorded
																							Investment
31-Dec-13			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
			Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
			Principal Balance					With no Allowance						With					Investment
														Allowance
Commercial:
Commercial and industrial			$	2,190				$	1,338					$	234				$	1,572	$	16		$	1,585		$	1,620	$	23
Non-farm, non-residential real estate				3,236					1,155						1,551					2,706		282			2,728			2,819		157
Construction and development				461					461						-					461		44			476			556		30
Other commercial				3,834					3,310						178					3,488		-			3,486			3,704		225
Commercial total				9,721					6,264						1,963					8,227		342			8,275			8,699		435
Retail:
Single family residential				1,121					568						419					987		118			935			1,044		52
Other retail				11					-						11					11		11			5			11		-
Retail total				1,132					568						430					998		129			940			1,055		52
Total			$	10,853				$	6,832					$	2,393				$	9,225	$	471		$	9,215		$	9,754	$	487
																							Average Recorded
																							Investment
30-Jun-13			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
			Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
			Principal Balance					With no Allowance						With					Investment
														Allowance
Commercial:
Commercial and industrial			$	2,225				$	1,394					$	229				$	1,623	$	34		$	1,631		$	1,642	$	10
Non-farm, non-residential real estate				3,282					1,681						1,125					2,806		285			2,832			2,862		76
Construction and development				492					325						167					492		62			618			729		17
Other commercial				3,771					3,382						184					3,566		83			3,569			3,639		97
Commercial total				9,770					6,782						1,705					8,487		464			8,650			8,872		200
Retail:
Single family residential				1,060					187						716					903		172			983			1,010		27
Retail total				1,060					187						716					903		172			983			1,010		27
Total			$	10,830				$	6,969					$	2,421				$	9,390	$	636		$	9,633		$	9,882	$	227
The following table summarizes the nonaccrual loans by loan type as of June 30, 2014 and December 31, 2013
		June 30,				December 31,
		2014				2013
	Retail
	Consumer	$	15			$	21
	Single family residential		2124				1,667
	Retail total		2139				1,688
	Commercial
	Commercial and industrial	$	1734			$	1,649
	Nonfarm, nonresidential		5234				737
	Construction and development		-				68
	Commercial real estate		191				6
	Other commercial		1170				1,248
	Commercial total		8329				3,708
	Total	$	10,468			$	5,396
Impaired Loans.  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 loan 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.
Troubled Debt Restructurings.  Included in certain categories of impaired loans are certain loans that have been modified in a troubled debt restructuring where economic concessions have been granted to borrowers who have experienced financial difficulties.  These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions.  Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances.  Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal or interest payments, regardless of the period of the modification.  All of the loans identified as troubled debt restructuring were modified as a result of financial stress of the borrower.  In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future with the modification.  This evaluation is performed under the Corporation's internal underwriting policy.
When the Corporation modifies loans in a troubled debt restructuring, the Corporation evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If the Corporation determines that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance.  In periods subsequent to modification, the Corporation evaluates all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. There were no troubled debt restructuring that subsequently defaulted during the six months ended June 30, 2014 and 2013.
Presented below, segregated by class of loans, are troubled debt restructuring that occurred during the three and six months periods ended June 30, 2013 and the year ended December 31, 2013
	Three Months Ended June 30, 2014
				Post-
				Modification				Net Charge-offs
	Number of			Outstanding				Resulting from
	Loans			Balance				Modifications
Commercial:
Nonfarm nonresidential	1			$	4,357			$	-
Total trouble debt restructurings	1			$	4,357			$	-
	Six Months Ended June 30, 2014
				Post-
				Modification				Net Charge-offs
	Number of			Outstanding				Resulting from
	Loans			Balance				Modifications
Commercial:
Nonfarm nonresidential	1			$	4,357			$	-
Total trouble debt restructurings	1			$	4357			$	-
	Year Ended December 31, 2013
				Post-
				Modification				Net Charge-offs
	Number of			Outstanding				Resulting from
	Loans			Balance				Modifications
Retail:
Consumer	3			$	8			$	-
Single family residential	3			167				6
Total troubled debt restructurings	6				175				6
	Three Months Ended June 30, 2013
				Post-
				Modification				Net Charge-offs
	Number of			Outstanding				Resulting from
	Loans			Balance				Modifications
Retail:
Consumer	2			4				-
Single family residential	1			$	36			$	5
Total trouble debt restructurings	3			$	40			$	5
	Six Months Ended June 30, 2013
				Post-
				Modification				Net Charge-offs
	Number of			Outstanding				Resulting from
	Loans			Balance				Modifications
Retail:
Consumer	2			4				-
Single family residential	2			$	168			$	5
Total trouble debt restructurings	4			$	172			$	5
Loans retain their accrual status at the time of their modification.  As a result, if a loan is on non-accrual status at the time it is modified, it stays as non-accrual status, and if a loan is on accrual status at the time of the modification, it generally stays on accrual status.  Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a troubled debt restructuring subsequently default, the Corporation evaluates the loan for possible further impairment.  The allowance for loan and lease losses (“ALLL”) may be increased, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan.  The Corporation considers a loan in default when it is 90 days or more past due and still accruing or transferred to nonaccrual status.
Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk grade of commercial loans, (ii) the level of classified commercial loans, (iii) net charge-offs, (iv) non-performing loans  and (v) the general economic conditions in the State of Tennessee.
The Corporation uses a risk grading matrix to assign a risk grade to each of its commercial loans.  Loans are graded on a scale of 1 through 8.  A description of the general characteristics of the eight risk grades is as follows:
Risk Rating 1              Minimal Risk
General Characteristics:
Substantially risk free.
Federal, state, or municipal subdivisions with acceptable investment grade credit rating.
Large national, regional, or local entity with proven access to capital markets.
Diversity in borrower's line of business with stable and diversified sales base.
Borrower is considered to be an industry leader with many consecutive years of strong profits and exhibits a financial condition, equity position, liquidity, and debt service capacity far exceeding industry norms.
Borrower has an abundance of unpledged financeable assets coupled with superior cash generation capabilities.
Industry conditions and trends are positive and strong.
Borrower has strong management with evidence of management succession.
A credit rating by Moody's, Standard & Poor's, or other qualified rating agency that is grade A or higher.
A cash secured loan with the cash on deposit in the Corporation or a guaranty from the federal government also warrants this risk rating.
Risk Rating 2             Modest Risk
General Characteristics:
Borrower shows strong profitability, liquidity, and capitalization better than industry norms and a strong market position in the region.
Borrower may have limited access to public markets for short-term needs or capital requirements, but has ready access to alternative financing.
Loans may be unsecured based on the financial strength of the borrower or secured by collateral that is considered liquid and marketable.
Borrower has a proven history of profitability and financial stability.
Borrower has a strong market position in its industry and has an abundance of financeable assets available to protect the Corporation's position.
Borrower's proven and steady management with good management succession.
Borrower can withstand major market instabilities of short duration.
Credit rating by Moody's, Standard & Poor's, or other qualified rating agency that is grade BAA or higher.
Risk Rating 3             Average Risk
General Characteristics:
Borrower shows a stable earnings history and financial condition in line with industry norms with indications that these trends will continue.
The credit extension is considered sound; however, elements may be present which suggest the borrower may not be free from temporary impairments in the future.
Borrower's liquidity and leverage is in line with industry norms.
Borrower has good management with acceptable management succession.
Under most economic and business conditions, borrower has access to alternative financing but limited or no access to capital markets for short-term or capital needs.
Borrower may be an individual with a sound financial condition and liquidity with proven historical income to repay the debt as scheduled.
Credit extensions are generally secured by acceptable collateral.
Risk Rating 4              Acceptable Risk
General Characteristics:
Credit is to a borrower with smaller margins of debt service coverage and with some elements of reduced financial strength.
Borrower is generally in a lower average market position in its industry.
Borrower shows satisfactory asset quality and liquidity, good debt capacity and coverage, and good management in critical positions.
Borrower's management is of unquestioned character but management succession may be questionable.
Borrower can obtain similar financing from other financial institutions.
Interim losses or moderately declining earnings trends may occur, but the borrower has sufficient strength and financial flexibility to offset these issues.
Credit may be to individuals with a moderately leveraged financial condition but with satisfactory liquidity and income to cover debt repayment requirements.
Business borrowers may have moderate leverage, but must have historically consistent cash flow to cover debt service and other operating needs.
Business borrowers may also have erratic or cyclical operating performances but should demonstrate strong equity positions to support these profitability swings.
Asset-based loans that have stabilized and proven performance with the financial capacity to provide for annual clean up may qualify for this rating.
Borrower has no access to capital markets but would be financeable by another financial institution or finance company.
Credit extensions are generally secured by acceptable collateral.
Risk Rating 5              Pass / Watch
General Characteristics:
Loans considered for this risk rating require a heightened level of supervision.
A) Transitional, Event Driven – This category of risk rated 5 loans captures responses to early warning signals from a relationship and, therefore, signifies a specific, event-driven, transitional credit grade. The event is generally something unplanned or unexpected such as a death, a disaster, the loss of a major client, product line, or key employee; divorce, or health condition of the owner or key management person. This category may be used in transitional upgrades as well as transitional downgrades of credit relationships.  Under these criteria, this category necessitates a plan of action to either upgrade the credit to a “Pass” rating (i.e., Risk Rating 1-4), downgrade the credit to a criticized asset, or exit the relationship within six months.
B) Ongoing Supervision Warranted - This category may also be utilized to identify loans having inherent characteristics which warrant more than the normal level of supervision.  Loans meeting these criteria may include larger, more complex loans with unusual structures.  Loans, which, due to structure or nature of the collateral require above average servicing, may also be considered for this risk rating.  Unlike other criteria listed previously for this category, these particular characteristics tend not to be one-time or transitional in nature; therefore, these loans may be expected to remain in this risk rating category longer than six months.  A loan might remain in this risk rating category for its life or until the characteristic warranting the rating can be eliminated or effectively mitigated.
Borrower may exhibit declining earnings, strained cash flow, increasing leverage, or weakening market positions that indicate a trend toward an unacceptable risk.
Borrower's liquidity, leverage, and earnings performance is below or trending below industry norms.
Interim losses and other adverse trends may occur but not to the level that would impair the Corporation's position.
Borrower may be a newly formed company or in a new line of business or may be an established business with new or unproven management.  Borrower should be adequately capitalized, but may not yet have achieved stabilized cash flow.
Borrower generally has a small market position in its industry.
Borrower may be engaged in an industry that is experiencing an economic downturn or is particularly susceptible to uncontrollable external factors.
Borrower management is of good character although some management weakness may exist, including lack of depth or succession.
Borrower generally has limited additional debt capacity and modest coverage, and average or below-average asset quality, margins, and market share.
Borrower's ability to obtain financing from other financial institutions may be impaired.
Credit to individuals with marginal financial condition and liquidity but with income still sufficient to service the debt.
Risk Rating 6              Special Mention
A special mention asset has 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.
General Characteristics:
Borrower's cash flow may not be sufficient to fund anticipated cash needs.
Sufficient or modestly sufficient financeable assets are available to protect the Corporation's position.
Adverse trends in borrower's operations/profits or unbalanced position in borrower's balance sheet but not to the point where repayment is in jeopardy.
Borrower generally shows limited liquidity or high leverage.
Borrower's financial position is in the lower quartile of industry norms.
Borrower's business exhibits a deteriorating market position in the industry.
Borrower's management lacks depth and succession.
Business is unable to withstand temporary setbacks without affecting repayment capability.
Borrower is not financeable by another bank but possibly by a finance company or specialized lender.
Risk Rating 7             Substandard
A substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.
General Characteristics:
The primary source of borrower's repayment no longer provides satisfactory support and repayment is dependent on secondary sources.
A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any.
Normal repayment from the borrower is impaired although no loss of principal is envisioned.
A partial loss of interest or principal will occur if the borrower's deficiencies are not corrected.
Borrower's cash flow is generally not sufficient to fund anticipated cash needs.
Borrower's financeable assets may not be sufficient to protect the Corporation's position.
Adverse trends in borrower's operations that jeopardized debt repayment may require the borrower to undertake a significant reorganization of financing or the business.
Borrower shows poor liquidity and high leverage impairing the repayment of the debt in accordance with agreed upon terms.
Borrower's management lacks depth and succession; may be inexperienced or of questionable character.
Borrower's market position in the industry is deteriorating.
Borrower is not financeable by another bank or finance company.
Risk Rating 8       Doubtful
An asset classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
General Characteristics:
Inadequate primary source of repayment.  Assumes a less than satisfactory secondary source of repayment on a most-likely case basis.  There may be adequate secondary source of repayment on a best-case basis.
Borrower has the same weaknesses found in Substandard borrowers.
Loss probability is extremely high but because of certain important and reasonably specific factors that may work to strengthen the loan, its classification as an estimated loss is deferred until a more exact status may be determined.
Pending factors may include a proposed merger or acquisition; liquidation procedures; capital injections; perfecting liens on additional collateral; and refinancing plans.
Borrower's cash flow is insufficient to fund cash needs.
Borrower's financeable assets are insufficient to protect the Corporation's position.
Borrower's source of debt repayment is dependent on liquidation of assets with a probable loss.
Borrower may no longer be a going concern, or may not exist as a going concern for the foreseeable future.
No alternative financing sources exist for borrower.
The following tables present risk grades and classified loans by class of commercial loan in the Corporation's portfolios as of June 30, 2014 and December 31, 2013
30-Jun-14
Commercial Loan Portfolio: Credit risk profile by internally assigned grade	Commercial			Non-farm, non-			Construction			Commercial loans			All other			Commercial
	and			residential real			and			secured			commercial			loan totals
	industrial			estate loans			development			by			loans
										residential R/E
Pass		85,804		$	162,410		$	40,705		$	31,911		$	22,084		$	342,914
	$
Special Mention		175			996			-			-			175			1,346
Substandard		1,935			8,494			250			337			-			11,016
Doubtful		1,076			-			-			-			1,170			2,246
TOTALS	$	88,990		$	171,900		$	40,955			32,249		$	23,429		$	357,523
Retail Loan Portfolio: Credit risk	Consumer loans			Single-family			All other			Retail loan totals
profiles based on delinquency status classification				residential**			retail loans
Performing	$	9,971		$	219,306		$	28,945		$	258,222
Non-performing*		15			2,850			77			2,942
TOTALS	$	9,986		$	222,156		$	29,022		$	261,164
*Loans are classified as non-performing loans and are automatically placed on non-accrual status once they reach 90 days past due.  For the purposes of this calculation, all loans rated at or below Substandard (RR7) are classified as non-performing.
**Single-family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).
31-Dec-13
Commercial Loan Portfolio:  Credit risk profile by internally assigned grade	Commercial			Non-Farm, Non-			Construction			Commercial			All Other			Commercial
	and			Residential Real			&			Loans			Commercial			Loan Totals
	Industrial			Estate Loans			Development			Secured by			Loans
										Residential
										R/E
Pass	$	92,155		$	170,585		$	29,463		$	26,516		$	24,131		$	342,850
Special Mention		836			3,883			-			-			179			4,898
Substandard		635			1,745			475			424			1,023			4,302
Doubtful		1,076			-			-			-			1,249			2,325
TOTALS	$	94,702		$	176,213		$	29,938		$	26,940		$	26,582		$	354,375
Retail Loan Portfolio:  Credit risk profiles based on delinquency status classification	Consumer			Single-Family			All Other			Retail Loan
	Loans			Residential**			Retail Loans			Totals
Performing	$	10,936		$	212,096		$	27,643		$	250,675
Non-performing*		21			1,667			28			1,716
TOTALS	$	10,957		$	213,763		$	27,671		$	252,391
*Loans are classified as non-performing loans and are automatically placed on non-accrual status once they reach 90 days past due.  For the purposes of this calculation, all loans rated at or below Substandard (RR7) are classified as non-performing.
**Single-family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).
Allowance for Loan and Lease Losses. The ALLL is a reserve established through a provision for loan losses charged to expense, which represents management's best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The Corporation's ALLL methodology includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables” (“ASC Topic 310”), and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies” (“ASC Topic 450”).  Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Corporation's process for determining the appropriate level of the ALLL is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to non-accrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects the totality of actions taken on all loans for a particular period.  Therefore, the amount of the provision reflects not only the necessary increases in the ALLL related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans or loan pools.
The level of the allowance reflects management's continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management's judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Corporation's control, including, among other things, the performance of the Corporation's loan portfolio, the economy, and changes in interest.
The Corporation's ALLL consists of three elements: (i) specific valuation allowances determined in accordance with ASC Topic 310 based on probable losses on specific loans; (ii) historical valuation allowances determined in accordance with ASC Topic 450 based on historical loan loss experience for loans with similar characteristics and trends, adjusted, as necessary, to reflect the impact of current conditions; and (iii) general valuation allowances determined in accordance with ASC Topic 450 based on general economic conditions and other qualitative risk factors both internal and external to the Corporation.
The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor's ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial loans. When a loan has an assigned risk rating of 8 (Doubtful) or higher, a special assets officer analyzes the loan to determine whether the loan is impaired and, if impaired, the need to specifically allocate a portion of the ALLL to the loan. Specific valuation allowances are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things.
Historical valuation allowances are calculated based on the historical loss experience of specific types of loans and the internal risk grade of such loans at the time they were charged-off. The Corporation calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are updated quarterly based on actual charge-off experience.  A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and average balance of the loans in the pool. The Corporation's pools of similar loans include similarly risk-graded groups of commercial and industrial loans, commercial real estate loans, consumer real estate loans and consumer and other loans.
The components of the general valuation allowance include (i) the additional reserves allocated to specific loan portfolio segments as a result of applying an environmental risk adjustment factor to the base historical loss allocation and (ii) the additional reserves that are not allocated to specific loan portfolio segments including allocations for groups of similar loans with risk characteristics that exceed certain concentration limits established by management.
There is an inherent imprecision in calculating the specific portion of the ALLL.  Therefore, a factor has been added to the allocation of each of the identified segments of the loan portfolio to account for the imprecision.
Included in the general valuation allowances are allocations for groups of similar loans with risk characteristics that exceed certain concentration limits established by management. Concentration risk limits have been established, among other things, for certain industry concentrations, large balance and highly leveraged credit relationships that exceed specified risk grades, and loans originated with policy exceptions that exceed specified risk grades.
The ALLL is maintained at a level considered adequate to provide for the losses that can be reasonably anticipated.  Management's periodic evaluation of the adequacy of the allowance is based on the Corporation's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors.  This evaluation is inherently subjective as it requires material estimates that may be susceptible to change.
The following tables summarize the allocation in the ALLL by loan segment for the three and six months ended June 30, 2014 and June 30, 2013 and the year ended December 31, 2013
		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Beginning ALLL balance - 3/31/14		$	7,373			$	1,085			$	163			$	8,621
Less: Charge-offs			-				(4	)			(6	)			(10	)
Add: Recoveries			22				1				1				24
Add: Provisions			-				-				-				-
Ending ALLL balance - 6/30/14		$	7,395			$	1,082			$	158			$	8,635
		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Beginning ALLL balance - 12/31/13		$	7,359			$	1,084			$	152			$	8,595
Less: Charge-offs			-				(4	)			(6	)			(10	)
Add: Recoveries			36				2				12				50
Add: Provisions			-				-				-				-
Ending ALLL balance - 6/30/14		$	7,395			$	1,082			$	158			$	8,635
		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Beginning ALLL balance - 3/31/13		$	7,340			$	1,143			$	174			$	8,657
Less: Charge-offs			(1	)			-				(1	)			(2	)
Add: Recoveries			3				4				-				7
Add: Provisions			(179	)			158				21				-
Ending ALLL balance - 6/30/13		$	7,163			$	1,305			$	194			$	8,662
		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Beginning ALLL balance - 12/31/12		$	7,528			$	1,109			$	172			$	8,809
Less: Charge-offs			(145	)			(12	)			(15	)			(172	)
Add: Recoveries			13				4				8				25
Add: Provisions			(233	)			204				29				-
Ending ALLL balance - 6/30/13		$	7,163			$	1,305			$	194			$	8,662
		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Beginning ALLL balance - 1/1/13		$	7,528			$	1,109			$	172			$	8,809
Less: Charge-offs			(222	)			(27	)			(49	)			(298	)
Add: Recoveries			53				2				29				84
Add: Provisions			-				-				-				-
Ending ALLL balance - 12/31/13		$	7,359			$	1,084			$	152			$	8,595
The following tables detail the amount of the ALLL allocated to each portfolio segment as of June 30, 2014, December 31, 2013 and June 30, 2013, disaggregated on the basis of the Corporation's impairment methodology
30-Jun-14		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Loans individually evaluated for impairment		$	1,260			$	118			$	-			$	1,378
Loans collectively evaluated for impairment			6,135				964				158				7,257
Total		$	7,395			$	1,082			$	158			$	8,635
31-Dec-13		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Loans individually evaluated for impairment		$	342			$	118			$	11			$	471
Loans collectively evaluated for impairment			7,017				966				141				8,124
Total		$	7,359			$	1,084			$	152			$	8,595
30-Jun-13		Commercial				Residential				Consumer and				Totals
						real estate				other retail
Loans individually evaluated for impairment		$	464			$	172			$	-			$	636
Loans collectively evaluated for impairment			6,699				1,133				194				8,026
Total			7,163				1,305				194				8,662
The following tables show loans related to each balance in the ALLL by portfolio segment and disaggregated on the basis of the Corporation's impairment methodology
30-Jun-14		Commercial			Residential			Consumer and			Totals
					real estate			other retail
Loans individually evaluated for impairment		$	14,868		$	1,157		$	-		$	16,025
Loans collectively evaluated for impairment			342,655			220,999			39,008			602,662
Ending Balance		$	357,523		$	222,156		$	39,008		$	618,687
31-Dec-13		Commercial			Residential			Consumer and			Totals
					real estate			other retail
Loans individually evaluated for impairment		$	8,227		$	987		$	11		$	9,225
Loans collectively evaluated for impairment			346,148			212,776			38,617			597,541
Ending Balance		$	354,375		$	213,763		$	38,628		$	606,766
30-Jun-13		Commercial			Residential			Consumer and			Totals
					real estate			other retail
Loans individually evaluated for impairment		$	8,487		$	903		$	-		$	9,390
Loans collectively evaluated for impairment			335,941			197,624			36,646			570,211
Ending Balance		$	344,428		$	198,527		$	36,646		$	579,601

BORROWED_FUNDS

BORROWED FUNDS	6 Months Ended
	Jun. 30, 2014
BORROWED FUNDS	'
BORROWED FUNDS	'
	NOTE 6 – BORROWED FUNDS
	The Corporation has a Cash Management Advance Line of Credit Agreement (the “CMA”), dated June 21, 2010, with the FHLB. The CMA is a component of the Blanket Agreement for Advances and Security Agreement, dated June 20, 2006 (“Blanket Agreement”), with the FHLB of Cincinnati. The purpose of the CMA is to assist with short-term liquidity management.  Under the terms of the CMA, the Corporation may borrow a maximum of $40 million, selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days.  There were no borrowings outstanding under the CMA as of June 30, 2014 or December 31, 2013.

POSTRETIREMENT_BENEFIT_PLAN

POST-RETIREMENT BENEFIT PLAN	6 Months Ended
	Jun. 30, 2014
POST-RETIREMENT BENEFIT PLAN	'
POST RETIREMENT BENEFIT PLAN (All dollar amounts are reported in thousands except share and per share data.)	'
	NOTE 7 – POST-RETIREMENT BENEFIT PLAN
		Six months ended
		June 30, 2014		June 30, 2013
	Service cost	$	16	$	86
	Interest cost		56		240
	Amortization of net gain		-97		47
	Net periodic  cost	$	-26	$	373
		Three months ended
		June 30, 2014		June 30, 2013
	Service cost	$	8	$	51
	Interest cost		28		167
	Amortization of net gain		-50		-
	Net periodic cost	$	-14	$	218
	The Corporation contributed $15 and $111 to the plan for the six month periods ending June 30, 2014 and 2013, respectively.

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2014
[AccountingChangesAndErrorCorrectionsAbstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS
	ASU 2014-04, “Troubled Debt Restructurings by Creditors (Topic 310).” ASU 2014-04 applies to all creditors who obtain physical possession (resulting from an in substance repossession or foreclosure) of residential real estate property collateralizing a consumer mortgage loan in satisfaction of a receivable. The update requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction.  ASU 2014-04 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014 and is not expected to have a significant impact on the Corporation's financial statements.
	ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 establishes principles for reporting useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity's contracts with customers. The core principle of this Topic is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and is not expected to have a significant impact on the Corporation's financial statements.
	ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014-11 requires two accounting changes. First, the amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, with repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. For public business entities, the accounting changes and disclosure for certain transactions accounted for as a sale are effective for the first period beginning after December 15, 2014. The disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and for interim periods after March 15, 2015. The new standard is not expected to have a significant impact on the Corporation's financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2014
[AccountingPoliciesAbstract]	'
Reclassifications	'
	Reclassifications:  Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year presentation.  These reclassifications had no effect on net income.

ACCUMULATED_OTHER_COMPREHENSIV1

ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) BY COMPONENT (Tables)	6 Months Ended
	Jun. 30, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") BY COMPONENT	'
Schedule of amounts reclassified from AOCI and the affected line items in the statements of income (All dollar amounts are reported in thousands except share and per share data.)	'
	Amounts reclassified from AOCI and the affected line items in the statements of income during the periods ended June 30, 2014 and 2013, were as follows:
			Amounts reclassified from AOCI
			Six Months Ended
			June 30, 2014			June 30, 2013			Affected Line Item in the Statements of Income
		Unrealized gains on available-for-sale
		securities
			$	547		$	829		Gain on sale of securities
				547			829		Total reclassified amount before tax and
									noncontrolling interest
				(211	)		(319	)	Tax expense
				336			510		Net reclassified amount
		Amortization of defined benefit pension items
		Actuarial losses		(97	)		(47	)	Components are included in the computation of net
									periodic pension cost and presented in Note 7
				(97	)		(47	)	Total reclassified amount before tax
				37			18		Tax benefit
				(60	)		(29	)	Net reclassified amount
		Total reclassifications out of AOCI	$	276		$	481
			Amounts reclassified from AOCI
			Three Months Ended
			June 30, 2014			June 30, 2013			Affected Line Item in the Statements of Income
		Unrealized gains on available-for-sale
		securities
			$	502		$	6		Gain on sale of securities
				502			6		Total reclassified amount before tax and
									noncontrolling interest
				(193	)		-2		Tax expense
				309			4		Net reclassified amount
		Amortization of defined benefit pension items
		Actuarial losses		(50	)		-		Components are included in the computation of net
				(50	)		-		Total reclassified amount before tax
				19			-		Tax benefit
				(31	)		-		Net reclassified amount
		Total reclassifications out of AOCI	$	278		$	4
Schedule of components of accumulated other comprehensive income, included in shareholder's equity (All dollar amounts are reported in thousands except share and per share data.)	'
	The components of accumulated other comprehensive income, included in shareholder's equity, are as follows:
		June 30,2014					31-Dec-13
	Net unrealized losses on available-for-sale securities	$	(7,720	)			$	(17,178	)
	Net defined benefit pension plan deferred amounts		2445					2,542
			(5,275	)				(14,636	)
	Tax effect		2,031					5,635
	Accumulated other comprehensive loss	$	(3,244	)			$	(9,001	)

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS	'
Summary of financial assets measured at fair value on a recurring basis and by the level within the fair value hierarchy utilized to measure fair value (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and by the level within the fair value hierarchy utilized to measure fair value:
		Assets measured at fair value on a recurring basis as of June 30, 2014
		Available-For-Sale Securities	Level 1			Level 2				Level 3				Total
		U.S. Government agencies	$	-		$	109,401			$	-			$	109,401
		U.S. government sponsored agency mortgage backed securities	-				195,706				-				195,706
		States and political subdivisions	-				40,940				-				40,940
		Corporate bonds	-				18,970				-				18,970
		Total assets at fair value	$	-		$	365,017			$	-			$	365,017
		Assets measured at fair value on a recurring basis as of December 31, 2013
		Available-For-Sale Securities	Level 1				Level 2				Level 3				Total
		U.S. Government agencies	$	-		$	105,072			$	-			$	105,072
		U.S. government sponsored agency mortgage backed securities	-				157,423				-				157,423
		States and political subdivisions	-				46,337				-				46,337
		Corporate bonds	-				20,882				-				20,882
		Total assets at fair value	$	-		$	329,714			$	-			$	329,714
Summary of financial assets measured at fair value on a nonrecurring basis and by the level within the fair value hierarchy utilized to measure fair value (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table summarizes financial assets measured at fair value on a nonrecurring basis as of  June 30, 2014 and December 31, 2013, by the level within the fair value hierarchy utilized to measure fair value:
		30-Jun-14	Level 1				Level 2				Level 3				Total
		Impaired loans (collateral-dependent)	$	-			$	-			$	4,416			$	4,416
		Other real estate owned	-					-				-				-
		31-Dec-13	Level 1					Level 2				Level 3			Total
		Impaired loans (collateral-dependent)	$	-			$	-			$	2,214			$	2,214
		Other real estate owned	-					-				208				208
Schedule of quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements
			Quantitative Information about Level 3 Fair Value Measurements
			Fair value at							Valuation					Unobservable input		Range (Weighted average)
			30-Jun-14							technique(s)
	Impaired loans (collateral-dependent)		$	4,416						Market comparable properties					Marketability discount		5.0%-37.0% (35%)
	Other real estate owned		$	-						Market comparable properties					Marketability discount		N/A
			Quantitative Information about Level 3 Fair Value Measurements
			Fair value at							Valuation					Unobservable		Range (Weighteda verage)
			31-Dec-13							technique(s)					input
	Impaired loans (collateral-dependent)		$	2,414						Market comparable properties					Marketability discount		5.0% - 10.0% (7%)
	Other real estate owned		$	208						Market comparable properties					Marketability discount		5.0% - 10.0% (7%)
Schedule of estimated fair values of the financial instruments and indicates the level within the fair value hierarchy of the valuation techniques (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table presents estimated fair values of the Corporation's financial instruments as of June 30, 2014 and December 31, 2013, and indicates the level within the fair value hierarchy of the valuation techniques
												Fair value measurements at June 30, 2014 using
		30-Jun-14								Carrying		Quoted prices				Significant other				Significant
										amount		in active markets for				observable inputs				unobservable inputs
												identical assets				(Level 2)				(Level 3)
												(Level 1)
		Financial assets
		Cash and due from banks							$	24,446			$		24,446		$		-		$	-
		Interest-bearing deposits in other banks								11,423					11,423				-			-
		Federal funds sold								1,300					1,300				-			-
		Federal Home Loan Bank and Federal Reserve Bank stock								3,879					-				3,879			-
		Securities available-for-sale								365,017					-				365,017			-
		Securities held-to-maturity								23,902					-				24,528			-
		Loans held for sale								674					-				674			-
		Loans, net								610,052					-				-			618,673
		Accrued interest receivable								4,078					-				4,078			-
		Financial liabilities
		Non-interest bearing deposits								185,420					185,420				-			-
		Interest bearing deposits								781,463					-				782,335			-
		Repurchase agreements								20,738					-				20,738			-
		Accrued interest payable								610					-				610			-
		Off-balance sheet credit related instruments:
		Commitments to extend credit								-					-				-			-
		Letters of credit								-					-				-			-
								Fair value measurements at December 31, 2013 using
		31-Dec-13			Carrying			Quoted prices				Significant other				Significant
					amount			in active markets for				observable inputs				unobservable inputs
								identical assets				(Level 2)				(Level 3)
								(Level 1)
		Financial assets
		Cash and due from banks			$	20,391			$	20,391			$	-			$	-
		Interest-bearing deposits in other banks				25,167				25,167				-				-
		Federal funds sold				9,850				9,850				-				-
		Federal Home Loan Bank and Federal Reserve Bank stock				3,879				-				3,879				-
		Securities available-for-sale				329,714				-				329,714				-
		Securities held-to-maturity				27,839				-				28,595				-
		Loans held for sale				327				-				327				-
		Loans, net				598,171				-				-				607,113
		Accrued interest receivable				4,183				-				4,183				-
		Financial liabilities
		Non-interest bearing deposits				179,823				179,823				-				-
		Interest bearing deposits				777,514				-				779,224				-
		Repurchase agreements				18,095				-				18,095				-
		Accrued interest payable				663				-				663				-
		Off-balance sheet credit related instruments:
		Commitments to extend credit				-				-				-				-
		Letters of credit				-				-				-				-

SECURITIES_Tables

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2014
SECURITIES	'
Schedule of amortized cost and estimated fair value of securities (All dollar amounts are reported in thousands except share and per share data.)	'
	The amortized cost and estimated fair value of securities at June 30, 2014 and December 31, 2013 were as follows:
				Amortized				Gross unrealized													Fair
		30-Jun-14		cost				Gains						Losses							value
		Available-for-sale securities
		U.S. Government agencies		$	113,417			$	17					$	4,033						$	109,401
		U.S. Government sponsored agency mortgage backed securities			201,086				57						5,437							195,706
		States and political subdivisions			39,454				1,558						72							40,940
		Corporate bonds			18,780				219						29							18,970
				$	372,737			$	1,851					$	9,571						$	365,017
		Held-to-maturity securities
		States and political subdivisions		$	23,902			$	626					$	-						$	24,528
				Amortized				Gross unrealized													Fair
		31-Dec-13		cost				Gains						Losses							value
		Available-for-sale securities
		U.S. Government agencies		$	112,863			$	-					$	7,791						$	105,072
		U.S. Government sponsored agency mortgage backed securities			168,045				27						10,649							157,423
		States and political subdivisions			45,237				1,240						140							46,337
		Corporate bonds			20,747				280						145							20,882
				$	346,892			$	1,547					$	18,725						$	329,714
		Held-to-maturity securities
		States and political subdivisions		$	27,839			$	756					$	-						$	28,595
Schedule of Corporation's investments' gross unrealized losses and fair value of the Corporation's investments with unrealized losses (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table shows the Corporation's investments' gross unrealized losses and fair value of the Corporation's investments with unrealized losses that were not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities had been in a continuous unrealized loss position at June 30, 2014 and December 31, 2013
		Less than 12 months										12 months or greater								Total
	30-Jun-14	Fair				Unrealized						Fair				Unrealized				Fair			Unrealized
	Type of Security	value				losses						value				losses				value			losses
	US Government agencies	$	4,501			$	10					$	103,668			$	4,023			$	108,169		$	4,033
	US Government sponsored agency mortgage
	backed securities	36,136				175						137,879				5,262				174,015			5,437
	States and political subdivisions	5,653				42						2,147				30				7,800			72
	Corporate bonds	1,311				2						3,533				27				4,844			29
		$	47,601			$	229					$	247,227			$	9,342			$	294,828		$	9,571
	31-Dec-13	Less than 12 months										12 months or greater								Total
		Fair				Unrealized						Fair				Unrealized				Fair			Unrealized
	Type of Security	value				losses						value				losses				value			losses
	US Government agencies	$	100,533			$	7,330					$	4,539			$	461			$	105,072		$	7,791
	US Government sponsored agency mortgage
	backed securities	144,134				10,073						8,698				576				152,832			10,649
	States and political subdivisions	2,615				140						-				-				2,615			140
	Corporate bonds	8,590				121						582				24				9,172			145
		$	255,872			$	17,664					$	13,819			$	1,061			$	269,691		$	18,725
Schedule of amortized cost and fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity (All dollar amounts are reported in thousands except share and per share data.)	'
	The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at June 30, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
			Available for sale							Held to maturity
		30-Jun-14	Amortized			Estimated				Amortized								Estimated
			cost			fair value				cost								fair value
		Within one year	$	4,005		$		4,052		$	3,575							$	3,653
		One to five years		33,454				33,419			5,334								5,507
		Five to ten years		115,873				112,826			14,993								15,368
		After ten years		18,319				19,014			-								-
		Mortgage-backed securities		201,086				195,706			-								-
		Total	$	372,737		$		365,017		$	23,902							$	24,528

LOANS_Tables

LOANS (Tables)	6 Months Ended
	Jun. 30, 2014
LOANS	'
Schedule of loans by class (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table presents the Corporation's loans by class as of June 30, 2014 and December 31, 2013:
			30-Jun-14			December 31, 2013
	Commercial:
	Commercial and industrial	$	88,990		$	94,702
	Non-farm, nonresidential real estate		171,900			176,213
	Construction and development		40,955			29,938
	Commercial loans secured by real estate		32,249			26,940
	Other commercial		23,429			26,582
	Total commercial		357,523			354,375
	Residential:
	Consumer loans		9,986			10,957
	Single family residential		222,156			213,763
	Other retail		29,022			27,671
	Total residential and consumer		261,164			252,391
			618,687			606,766
	Less:
	Allowance for possible loan losses		-8,635			-8,595
	Total net loans	$	610,052		$	598,171
Schedule of details regarding the aging of the entity's loan portfolio (All dollar amounts are reported in thousands except share and per share data.)	'
	The following tables provide details regarding the aging of the Corporation's loan portfolio as of June 30, 2014 and December 31, 2013
	30-Jun-14	30 - 89 Days Past Due			90 Days and			Total Past Due					Current				Total Loans
					Greater Past Due
	Retail:
	Consumer	$	92		$	-		$	92				$	9,894			$	9,986
	Single family residential	1,294			651			1,945						220,211			222,156
	Other retail	-			-			-						29,022			29,022
	Retail total		1,386			651					2,037				259,127		$		261,164
	Commercial:
	Commercial and industrial		716			1,225			1,941					87,049			$	88,990
	Non-farm, non-residential real estate	258			236			494					171,406				171,900
	Construction and development	-			-			-					40,955				40,955
	Commercial loans secured by real estate	28			173			201					32,048				32,249
	All other commercial	468			1,170			1,638					21,791				23,429
	Commercial total		1,470			2,804				4,274					353,249		$		357,523
	Total	$	2,856		$	3,455		$		6,311			$		612,376		$		618,687
	31-Dec-13	30 - 89 Days Past Due			90 Days and			Total Past Due					Current				Total Loans
					Greater Past Due
	Retail:
	Consumer loans	$	182		$	3		$	185				$	10,772			$	10,957
	Single family residential	3,805			83			3,876					209,887				213,763
	Other retail	319			28			359					27,312				27,671
	Retail total		4,306			114			4,420					247,971			$	252,391
	Commercial:
	Commercial and industrial		428			1,328			1,756					92,946			$	94,702
	Non-farm, non-residential real estate	393			-			393					175,820				176,213
	Construction and development	-			28			28					29,910				29,938
	Commercial loans secured by real est	38			178			216					26,724				26,940
	Other commercial	-			1,249			1,249					25,333				26,582
	Commercial total		859			2,783			3,642					350,733			$	354,375
	Total	$	5,165		$	2,897		$	8,062				$	598,704			$	606,766
Summary of impaired loans by loan type (All dollar amounts are reported in thousands except share and per share data.)	'
	The following tables summarize the impaired loans by loan type as of June 30, 2014, December 31, 2013 and June 30, 2013:
																								Average Recorded
																								Investment
	30-Jun-14			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
				Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
				Principal Balance					With No Allowance						With					Investment
															Allowance
	Commercial:
	Commercial and industrial			$	2,847				$	1,995					$	226				$	2,221	$	14		$	2,247		$	2,267	$	28
	Non-farm, non-residential real estate				9,994					3,998						5,425					9,423		1,217			9,533			9,650		245
	Construction and development				250					250						-					250		-			250			282		8
	Other commercial				3,392					2,801						173					2,974		29			3,040			3,151		104
	Commercial total				16,483					9,044						5,824					14,868		1,260			15,070			15,350		385
	Retail:
	Single family residential				1,270					429						728					1,157		118			1,163			1,171		26
	Other retail				-					-						-					-		-				-		-		-
	Retail total				1,270					429						728					1,157		118			1,163			1,171		26
	Total			$	17,753				$	9,473					$	6,552				$	16,025	$	1,378		$	16,233		$	16,521	$	411
																								Average Recorded
																								Investment
	31-Dec-13			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
				Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
				Principal Balance					With no Allowance						With					Investment
															Allowance
	Commercial:
	Commercial and industrial			$	2,190				$	1,338					$	234				$	1,572	$	16		$	1,585		$	1,620	$	23
	Non-farm, non-residential real estate				3,236					1,155						1,551					2,706		282			2,728			2,819		157
	Construction and development				461					461						-					461		44			476			556		30
	Other commercial				3,834					3,310						178					3,488		-			3,486			3,704		225
	Commercial total				9,721					6,264						1,963					8,227		342			8,275			8,699		435
	Retail:
	Single family residential				1,121					568						419					987		118			935			1,044		52
	Other retail				11					-						11					11		11			5			11		-
	Retail total				1,132					568						430					998		129			940			1,055		52
	Total			$	10,853				$	6,832					$	2,393				$	9,225	$	471		$	9,215		$	9,754	$	487
																								Average Recorded
																								Investment
	30-Jun-13			Unpaid					Recorded						Recorded					Total		Related			Quarter To			Year To		Interest
				Contractual					Investment						Investment					Recorded		Allowance			Date			Date		Received
				Principal Balance					With no Allowance						With					Investment
															Allowance
	Commercial:
	Commercial and industrial			$	2,225				$	1,394					$	229				$	1,623	$	34		$	1,631		$	1,642	$	10
	Non-farm, non-residential real estate				3,282					1,681						1,125					2,806		285			2,832			2,862		76
	Construction and development				492					325						167					492		62			618			729		17
	Other commercial				3,771					3,382						184					3,566		83			3,569			3,639		97
	Commercial total				9,770					6,782						1,705					8,487		464			8,650			8,872		200
	Retail:
	Single family residential				1,060					187						716					903		172			983			1,010		27
	Retail total				1,060					187						716					903		172			983			1,010		27
	Total			$	10,830				$	6,969					$	2,421				$	9,390	$	636		$	9,633		$	9,882	$	227
Summary of nonaccrual loans by loan type (All dollar amounts are reported in thousands except share and per share data.)	'
	The following table summarizes the nonaccrual loans by loan type as of June 30, 2014 and December 31, 2013
			June 30,				December 31,
			2014				2013
		Retail
		Consumer	$	15			$	21
		Single family residential		2124				1,667
		Retail total		2139				1,688
		Commercial
		Commercial and industrial	$	1734			$	1,649
		Nonfarm, nonresidential		5234				737
		Construction and development		-				68
		Commercial real estate		191				6
		Other commercial		1170				1,248
		Commercial total		8329				3,708
		Total	$	10,468			$	5,396
Schedule of troubled debt restructurings (All dollar amounts are reported in thousands except share and per share data.)	'
	Presented below, segregated by class of loans, are troubled debt restructuring that occurred during the three and six months periods ended June 30, 2013 and the year ended December 31, 2013
		Three Months Ended June 30, 2014
					Post-
					Modification				Net Charge-offs
		Number of			Outstanding				Resulting from
		Loans			Balance				Modifications
	Commercial:
	Nonfarm nonresidential	1			$	4,357			$	-
	Total trouble debt restructurings	1			$	4,357			$	-
		Six Months Ended June 30, 2014
					Post-
					Modification				Net Charge-offs
		Number of			Outstanding				Resulting from
		Loans			Balance				Modifications
	Commercial:
	Nonfarm nonresidential	1			$	4,357			$	-
	Total trouble debt restructurings	1			$	4357			$	-
		Year Ended December 31, 2013
					Post-
					Modification				Net Charge-offs
		Number of			Outstanding				Resulting from
		Loans			Balance				Modifications
	Retail:
	Consumer	3			$	8			$	-
	Single family residential	3			167				6
	Total troubled debt restructurings	6				175				6
		Three Months Ended June 30, 2013
					Post-
					Modification				Net Charge-offs
		Number of			Outstanding				Resulting from
		Loans			Balance				Modifications
	Retail:
	Consumer	2			4				-
	Single family residential	1			$	36			$	5
	Total trouble debt restructurings	3			$	40			$	5
		Six Months Ended June 30, 2013
					Post-
					Modification				Net Charge-offs
		Number of			Outstanding				Resulting from
		Loans			Balance				Modifications
	Retail:
	Consumer	2			4				-
	Single family residential	2			$	168			$	5
	Total trouble debt restructurings	4			$	172			$	5
Schedule of risk grades and classified loans by class of commercial loan in the entity's portfolios (All dollar amounts are reported in thousands except share and per share data.)	'
	The following tables present risk grades and classified loans by class of commercial loan in the Corporation's portfolios as of June 30, 2014 and December 31, 2013
	30-Jun-14
	Commercial Loan Portfolio: Credit risk profile by internally assigned grade	Commercial			Non-farm, non-			Construction			Commercial loans			All other			Commercial
		and			residential real			and			secured			commercial			loan totals
		industrial			estate loans			development			by			loans
											residential R/E
	Pass		85,804		$	162,410		$	40,705		$	31,911		$	22,084		$	342,914
		$
	Special Mention		175			996			-			-			175			1,346
	Substandard		1,935			8,494			250			337			-			11,016
	Doubtful		1,076			-			-			-			1,170			2,246
	TOTALS	$	88,990		$	171,900		$	40,955			32,249		$	23,429		$	357,523
	Retail Loan Portfolio: Credit risk	Consumer loans			Single-family			All other			Retail loan totals
	profiles based on delinquency status classification				residential**			retail loans
	Performing	$	9,971		$	219,306		$	28,945		$	258,222
	Non-performing*		15			2,850			77			2,942
	TOTALS	$	9,986		$	222,156		$	29,022		$	261,164
	*Loans are classified as non-performing loans and are automatically placed on non-accrual status once they reach 90 days past due.  For the purposes of this calculation, all loans rated at or below Substandard (RR7) are classified as non-performing.
	**Single-family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).
	31-Dec-13
	Commercial Loan Portfolio:  Credit risk profile by internally assigned grade	Commercial			Non-Farm, Non-			Construction			Commercial			All Other			Commercial
		and			Residential Real			&			Loans			Commercial			Loan Totals
		Industrial			Estate Loans			Development			Secured by			Loans
											Residential
											R/E
	Pass	$	92,155		$	170,585		$	29,463		$	26,516		$	24,131		$	342,850
	Special Mention		836			3,883			-			-			179			4,898
	Substandard		635			1,745			475			424			1,023			4,302
	Doubtful		1,076			-			-			-			1,249			2,325
	TOTALS	$	94,702		$	176,213		$	29,938		$	26,940		$	26,582		$	354,375
	Retail Loan Portfolio:  Credit risk profiles based on delinquency status classification	Consumer			Single-Family			All Other			Retail Loan
		Loans			Residential**			Retail Loans			Totals
	Performing	$	10,936		$	212,096		$	27,643		$	250,675
	Non-performing*		21			1,667			28			1,716
	TOTALS	$	10,957		$	213,763		$	27,671		$	252,391
	*Loans are classified as non-performing loans and are automatically placed on non-accrual status once they reach 90 days past due.  For the purposes of this calculation, all loans rated at or below Substandard (RR7) are classified as non-performing.
	**Single-family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).
Summary of the allocation in the ALLL by loan segment (All dollar amounts are reported in thousands except share and per share data.)	'
	The following tables summarize the allocation in the ALLL by loan segment for the three and six months ended June 30, 2014 and June 30, 2013 and the year ended December 31, 2013
			Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Beginning ALLL balance - 3/31/14		$	7,373			$	1,085			$	163			$	8,621
	Less: Charge-offs			-				(4	)			(6	)			(10	)
	Add: Recoveries			22				1				1				24
	Add: Provisions			-				-				-				-
	Ending ALLL balance - 6/30/14		$	7,395			$	1,082			$	158			$	8,635
			Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Beginning ALLL balance - 12/31/13		$	7,359			$	1,084			$	152			$	8,595
	Less: Charge-offs			-				(4	)			(6	)			(10	)
	Add: Recoveries			36				2				12				50
	Add: Provisions			-				-				-				-
	Ending ALLL balance - 6/30/14		$	7,395			$	1,082			$	158			$	8,635
			Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Beginning ALLL balance - 3/31/13		$	7,340			$	1,143			$	174			$	8,657
	Less: Charge-offs			(1	)			-				(1	)			(2	)
	Add: Recoveries			3				4				-				7
	Add: Provisions			(179	)			158				21				-
	Ending ALLL balance - 6/30/13		$	7,163			$	1,305			$	194			$	8,662
			Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Beginning ALLL balance - 12/31/12		$	7,528			$	1,109			$	172			$	8,809
	Less: Charge-offs			(145	)			(12	)			(15	)			(172	)
	Add: Recoveries			13				4				8				25
	Add: Provisions			(233	)			204				29				-
	Ending ALLL balance - 6/30/13		$	7,163			$	1,305			$	194			$	8,662
			Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Beginning ALLL balance - 1/1/13		$	7,528			$	1,109			$	172			$	8,809
	Less: Charge-offs			(222	)			(27	)			(49	)			(298	)
	Add: Recoveries			53				2				29				84
	Add: Provisions			-				-				-				-
	Ending ALLL balance - 12/31/13		$	7,359			$	1,084			$	152			$	8,595
	The following tables detail the amount of the ALLL allocated to each portfolio segment as of June 30, 2014, December 31, 2013 and June 30, 2013, disaggregated on the basis of the Corporation's impairment methodology
	30-Jun-14		Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Loans individually evaluated for impairment		$	1,260			$	118			$	-			$	1,378
	Loans collectively evaluated for impairment			6,135				964				158				7,257
	Total		$	7,395			$	1,082			$	158			$	8,635
	31-Dec-13		Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Loans individually evaluated for impairment		$	342			$	118			$	11			$	471
	Loans collectively evaluated for impairment			7,017				966				141				8,124
	Total		$	7,359			$	1,084			$	152			$	8,595
	30-Jun-13		Commercial				Residential				Consumer and				Totals
							real estate				other retail
	Loans individually evaluated for impairment		$	464			$	172			$	-			$	636
	Loans collectively evaluated for impairment			6,699				1,133				194				8,026
	Total			7,163				1,305				194				8,662
Schedule of loans related to each balance in the ALLL by portfolio segment and disaggregated on the basis of the entity's impairment methodology (All dollar amounts are reported in thousands except share and per share data.)	'
	The following tables show loans related to each balance in the ALLL by portfolio segment and disaggregated on the basis of the Corporation's impairment methodology
	30-Jun-14		Commercial			Residential			Consumer and			Totals
						real estate			other retail
	Loans individually evaluated for impairment		$	14,868		$	1,157		$	-		$	16,025
	Loans collectively evaluated for impairment			342,655			220,999			39,008			602,662
	Ending Balance		$	357,523		$	222,156		$	39,008		$	618,687
	31-Dec-13		Commercial			Residential			Consumer and			Totals
						real estate			other retail
	Loans individually evaluated for impairment		$	8,227		$	987		$	11		$	9,225
	Loans collectively evaluated for impairment			346,148			212,776			38,617			597,541
	Ending Balance		$	354,375		$	213,763		$	38,628		$	606,766
	30-Jun-13		Commercial			Residential			Consumer and			Totals
						real estate			other retail
	Loans individually evaluated for impairment		$	8,487		$	903		$	-		$	9,390
	Loans collectively evaluated for impairment			335,941			197,624			36,646			570,211
	Ending Balance		$	344,428		$	198,527		$	36,646		$	579,601

POSTRETIREMENT_BENEFIT_PLAN_Ta

POST-RETIREMENT BENEFIT PLAN (Tables)	6 Months Ended
	Jun. 30, 2014
POST-RETIREMENT BENEFIT PLAN	'
Schedule of net periodic pension cost (All dollar amounts are reported in thousands except share and per share data.)	'
		Six months ended
		June 30, 2014		June 30, 2013
	Service cost	$	16	$	86
	Interest cost		56		240
	Amortization of net gain		-97		47
	Net periodic  cost	$	-26	$	373
		Three months ended
		June 30, 2014		June 30, 2013
	Service cost	$	8	$	51
	Interest cost		28		167
	Amortization of net gain		-50		-
	Net periodic cost	$	-14	$	218

ACCUMULATED_OTHER_COMPREHENSIV2

ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) BY COMPONENT (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Amounts reclassified from AOCI and the affected line items in the statements of income	'	'	'	'
Tax (expense) benefit	($941)	($842)	($1,654)	($1,399)
Net income for common shareholders	2,597	2,385	4,859	5,441
Amounts Reclassified from AOCI	'	'	'	'
Amounts reclassified from AOCI and the affected line items in the statements of income	'	'	'	'
Net income for common shareholders	278	4	276	481
Net unrealized losses on available-for-sale securities | Amounts Reclassified from AOCI	'	'	'	'
Amounts reclassified from AOCI and the affected line items in the statements of income	'	'	'	'
Gain on sale of securities	502	6	547	829
Total reclassified amount before tax and noncontrolling interest	502	6	547	829
Tax (expense) benefit	-193	-2	-211	-319
Net income for common shareholders	309	4	336	510
Amortization of defined benefit pension items | Amounts Reclassified from AOCI	'	'	'	'
Amounts reclassified from AOCI and the affected line items in the statements of income	'	'	'	'
Actuarial losses	-50	'	-97	-47
Total reclassified amount before tax and noncontrolling interest	-50	'	-97	-47
Tax (expense) benefit	19	'	37	18
Net income for common shareholders	($31)	'	($60)	($29)

ACCUMULATED_OTHER_COMPREHENSIV3

ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) BY COMPONENT (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Components of accumulated other comprehensive income, included in shareholder's equity	'	'
Accumulated other comprehensive loss, before tax	($5,275)	($14,636)
Tax effect	-2,031	-5,635
Accumulated other comprehensive loss	-3,244	-9,001
Net unrealized losses on available-for-sale securities	'	'
Components of accumulated other comprehensive income, included in shareholder's equity	'	'
Accumulated other comprehensive loss, before tax	-7,720	-17,178
Net defined benefit pension plan deferred amounts	'	'
Components of accumulated other comprehensive income, included in shareholder's equity	'	'
Accumulated other comprehensive loss, before tax	$2,445	$2,542

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Fair value measurements	'	'	'
Available-for-sale securities	$365,017	'	$329,714
Impaired loans (collateral-dependent)	'	'	'
Fair value measurements	'	'	'
Fair value adjustments	916	342	79
Other real estate owned	'	'	'
Fair value measurements	'	'	'
Fair value adjustments	0	0	395
U.S. government agencies	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	109,401	'	105,072
States and political subdivisions	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	40,940	'	46,337
Corporate bonds	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	18,970	'	20,882
Level 1	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Level 2	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	365,017	'	329,714
Level 3	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	365,017	'	329,714
Recurring basis | U.S. government agencies	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	109,401	'	105,072
Recurring basis | U.S. government sponsored agency mortgage backed securities	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	195,706	'	157,423
Recurring basis | States and political subdivisions	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	40,940	'	46,337
Recurring basis | Corporate bonds	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	18,970	'	20,882
Recurring basis | Level 1	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 1 | U.S. government agencies	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 1 | U.S. government sponsored agency mortgage backed securities	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 1 | States and political subdivisions	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 1 | Corporate bonds	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 2	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	365,017	'	329,714
Recurring basis | Level 2 | U.S. government agencies	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	109,401	'	105,072
Recurring basis | Level 2 | U.S. government sponsored agency mortgage backed securities	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	195,706	'	157,423
Recurring basis | Level 2 | States and political subdivisions	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	40,940	'	46,337
Recurring basis | Level 2 | Corporate bonds	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	18,970	'	20,882
Recurring basis | Level 3	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 3 | U.S. government agencies	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 3 | U.S. government sponsored agency mortgage backed securities	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 3 | States and political subdivisions	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Recurring basis | Level 3 | Corporate bonds	'	'	'
Fair value measurements	'	'	'
Available-for-sale securities	'	'	'
Nonrecurring basis | Impaired loans (collateral-dependent)	'	'	'
Fair value measurements	'	'	'
Financial assets	4,416	'	2,214
Nonrecurring basis | Other real estate owned	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	208
Nonrecurring basis | Level 1 | Impaired loans (collateral-dependent)	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	'
Nonrecurring basis | Level 1 | Other real estate owned	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	'
Nonrecurring basis | Level 2 | Impaired loans (collateral-dependent)	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	'
Nonrecurring basis | Level 2 | Other real estate owned	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	'
Nonrecurring basis | Level 3 | Impaired loans (collateral-dependent)	'	'	'
Fair value measurements	'	'	'
Financial assets	4,416	'	2,214
Nonrecurring basis | Level 3 | Other real estate owned	'	'	'
Fair value measurements	'	'	'
Financial assets	'	'	$208

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 2) (Nonrecurring basis, USD $)	6 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Impaired loans (collateral-dependent)	'	'
Fair value measurements	'	'
Fair Value at the end of the period	4,416	2,214
Impaired loans (collateral-dependent) | Level 3	'	'
Fair value measurements	'	'
Fair Value at the end of the period	4,416	2,214
Impaired loans (collateral-dependent) | Market comparable properties | Level 3	'	'
Fair value measurements	'	'
Fair Value at the end of the period	4,416	2,414
Impaired loans (collateral-dependent) | Market comparable properties | Level 3 | Minimum	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	5.00%	5.00%
Impaired loans (collateral-dependent) | Market comparable properties | Level 3 | Maximum	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	37.00%	10.00%
Impaired loans (collateral-dependent) | Market comparable properties | Level 3 | Weighted Average	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	35.00%	7.00%
Other real estate owned	'	'
Fair value measurements	'	'
Fair Value at the end of the period	'	208
Other real estate owned | Level 3	'	'
Fair value measurements	'	'
Fair Value at the end of the period	'	208
Other real estate owned | Market comparable properties | Level 3	'	'
Fair value measurements	'	'
Fair Value at the end of the period	'	208
Other real estate owned | Market comparable properties | Level 3 | Minimum	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	'	5.00%
Other real estate owned | Market comparable properties | Level 3 | Maximum	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	'	10.00%
Other real estate owned | Market comparable properties | Level 3 | Weighted Average	'	'
Fair value measurements	'	'
Marketability discount (as a percent)	'	7.00%

FAIR_VALUE_MEASUREMENTS_Detail2

FAIR VALUE MEASUREMENTS (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Financial assets	'	'
Cash and due from banks	$24,446	$20,391
Interest-bearing deposits in other banks	11,423	25,167
Securities available-for-sale	365,017	329,714
Securities held-to-maturity	24,528	28,595
Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Financial assets	'	'
Cash and due from banks	24,446	20,391
Interest-bearing deposits in other banks	11,423	25,167
Federal funds sold	1,300	9,850
Federal Home Loan Bank and Federal Reserve Bank stock	'	'
Securities available-for-sale	'	'
Securities held-to-maturity	'	'
Loans held for sale	'	'
Loans, net	'	'
Accrued interest receivable	'	'
Financial liabilities	'	'
Non-interest bearing deposits	185,420	179,823
Interest bearing deposits	'	'
Repurchase agreements	'	'
Accrued interest payable	'	'
Off-balance sheet credit related instruments:	'	'
Commitments to extend credit	'	'
Letters of credit	'	'
Significant Other Observable Inputs (Level 2)	'	'
Financial assets	'	'
Cash and due from banks	'	'
Interest-bearing deposits in other banks	'	'
Federal funds sold	'	'
Federal Home Loan Bank and Federal Reserve Bank stock	3,879	3,879
Securities available-for-sale	365,017	329,714
Securities held-to-maturity	24,528	28,595
Loans held for sale	674	327
Loans, net	'	'
Accrued interest receivable	4,078	4,183
Financial liabilities	'	'
Non-interest bearing deposits	'	'
Interest bearing deposits	782,335	779,224
Repurchase agreements	20,738	18,095
Accrued interest payable	610	663
Off-balance sheet credit related instruments:	'	'
Commitments to extend credit	'	'
Letters of credit	'	'
Significant Unobservable Inputs (Level 3)	'	'
Financial assets	'	'
Cash and due from banks	'	'
Interest-bearing deposits in other banks	'	'
Federal funds sold	'	'
Federal Home Loan Bank and Federal Reserve Bank stock	'	'
Securities available-for-sale	'	'
Securities held-to-maturity	'	'
Loans held for sale	'	'
Loans, net	618,673	607,113
Accrued interest receivable	'	'
Financial liabilities	'	'
Non-interest bearing deposits	'	'
Interest bearing deposits	'	'
Repurchase agreements	'	'
Accrued interest payable	'	'
Off-balance sheet credit related instruments:	'	'
Commitments to extend credit	'	'
Letters of credit	'	'
Carrying Amount	'	'
Financial assets	'	'
Cash and due from banks	24,446	20,391
Interest-bearing deposits in other banks	11,423	25,167
Federal funds sold	1,300	9,850
Federal Home Loan Bank and Federal Reserve Bank stock	3,879	3,879
Securities available-for-sale	365,017	329,714
Securities held-to-maturity	23,902	27,839
Loans held for sale	674	327
Loans, net	610,052	598,171
Accrued interest receivable	4,078	4,183
Financial liabilities	'	'
Non-interest bearing deposits	185,420	179,823
Interest bearing deposits	781,463	777,514
Repurchase agreements	20,738	18,095
Accrued interest payable	610	663
Off-balance sheet credit related instruments:	'	'
Commitments to extend credit	'	'
Letters of credit	'	'

SECURITIES_Details

SECURITIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Available-For-Sale Securities	'	'
Amortized Cost	$372,737	$346,892
Gross Unrealized Gains	1,851	1,547
Gross Unrealized Losses	9,571	18,725
Fair Value	365,017	329,714
Held-to-maturity securities	'	'
Amortized Cost	23,902	27,839
Fair Value	24,528	28,595
Available-for-sale and held-to-maturity of investment portfolio (as a percent)	76.00%	75.00%
Fair Value	'	'
Less than 12 months	47,601	255,872
12 months or Greater	247,227	13,819
Total	294,828	269,691
Unrealized Losses	'	'
Less than 12 months	229	17,664
12 months or Greater	9,342	1,061
Total	9,571	18,725
US Government Agencies Debt Securities [Member]	'	'
Available-For-Sale Securities	'	'
Amortized Cost	113,417	112,863
Gross Unrealized Gains	17	'
Gross Unrealized Losses	4,033	7,791
Fair Value	109,401	105,072
Fair Value	'	'
Less than 12 months	4,501	100,533
12 months or Greater	103,668	4,539
Total	108,169	105,072
Unrealized Losses	'	'
Less than 12 months	10	7,330
12 months or Greater	4,023	461
Total	4,033	7,791
U.S. government sponsored agency mortgage backed securities	'	'
Available-For-Sale Securities	'	'
Amortized Cost	201,086	168,045
Gross Unrealized Gains	57	27
Gross Unrealized Losses	5,437	10,649
Fair Value	195,706	157,423
Fair Value	'	'
Less than 12 months	36,136	144,134
12 months or Greater	137,879	8,698
Total	174,015	152,832
Unrealized Losses	'	'
Less than 12 months	175	10,073
12 months or Greater	5,262	576
Total	5,437	10,649
States and political subdivisions	'	'
Available-For-Sale Securities	'	'
Amortized Cost	39,454	45,237
Gross Unrealized Gains	1,558	1,240
Gross Unrealized Losses	72	140
Fair Value	40,940	46,337
Held-to-maturity securities	'	'
Amortized Cost	23,902	27,839
Gross Unrealized Gains	626	756
Gross Unrealized Losses	'	'
Fair Value	24,528	28,595
Fair Value	'	'
Less than 12 months	5,653	2,615
12 months or Greater	2,147	'
Total	7,800	2,615
Unrealized Losses	'	'
Less than 12 months	42	140
12 months or Greater	30	'
Total	72	140
Corporate bonds	'	'
Available-For-Sale Securities	'	'
Amortized Cost	18,780	20,747
Gross Unrealized Gains	219	280
Gross Unrealized Losses	29	145
Fair Value	18,970	20,882
Fair Value	'	'
Less than 12 months	1,311	8,590
12 months or Greater	3,533	582
Total	4,844	9,172
Unrealized Losses	'	'
Less than 12 months	2	121
12 months or Greater	27	24
Total	$29	$145

SECURITIES_Details_2

SECURITIES (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Amortized Cost	'	'	'	'	'
Within one year	$4,005	'	$4,005	'	'
One to five years	33,454	'	33,454	'	'
Five to ten years	115,873	'	115,873	'	'
After ten years	18,319	'	18,319	'	'
Mortgage-backed securities	201,086	'	201,086	'	'
Total	372,737	'	372,737	'	'
Estimated Fair Value	'	'	'	'	'
Within one year	4,052	'	4,052	'	'
One to five years	33,419	'	33,419	'	'
Five to ten years	112,826	'	112,826	'	'
After ten years	19,014	'	19,014	'	'
Mortgage-backed securities	195,706	'	195,706	'	'
Total	365,017	'	365,017	'	'
Amortized Cost	'	'	'	'	'
Within one year	3,575	'	3,575	'	'
One to five years	5,334	'	5,334	'	'
Five to ten years	14,993	'	14,993	'	'
After ten years	'	'	'	'	'
Mortgage-backed securities	'	'	'	'	'
Total	23,902	'	23,902	'	27,839
Estimated Fair Value	'	'	'	'	'
Within one year	3,653	'	3,653	'	'
One to five years	5,507	'	5,507	'	'
Five to ten years	15,368	'	15,368	'	'
After ten years	'	'	'	'	'
Mortgage-backed securities	'	'	'	'	'
Fair Value	24,528	'	24,528	'	28,595
Carrying value of securities pledged as collateral	218,036	'	218,036	'	210,494
Book value of securities sold under agreements to repurchase	34,975	'	34,975	'	34,978
Gross realized gains from sales of available-for-sale securities	560	6	605	829	'
Gross realized losses from sales of available-for-sale securities	$58	$196	$58	$196	'

LOANS_Details

LOANS (Details) (USD $)	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Loans	'	'	'	'	'	'
Total gross loans	$618,687	'	$606,766	$579,601	'	'
Allowance for possible loan losses	-8,635	-8,621	-8,595	-8,662	-8,657	-8,809
Net loans	610,052	'	598,171	'	'	'
Capitalized fees and costs	908	'	831	'	'	'
Commercial	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	357,523	'	354,375	344,428	'	'
Allowance for possible loan losses	-7,395	-7,373	-7,359	-7,163	-7,340	-7,528
Commercial and industrial	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	88,990	'	94,702	'	'	'
Non farm, non residential real estate loans	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	171,900	'	176,213	'	'	'
Construction and development	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	40,955	'	29,938	'	'	'
Commercial loans secured by real estate	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	32,249	'	26,940	'	'	'
Other commercial	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	23,429	'	26,582	'	'	'
Residential	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	261,164	'	252,391	'	'	'
Consumer loans	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	9,986	'	10,957	'	'	'
Single family residential	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	222,156	'	213,763	'	'	'
Other retail	'	'	'	'	'	'
Loans	'	'	'	'	'	'
Total gross loans	$29,022	'	$27,671	'	'	'

LOANS_Details_2

LOANS (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified	item
LOANS	'	'	'
Loan-to-value ratio, maximum (as a percent)	80.00%	'	'
Financing Receivable 90 Days or More Past Due Not Included in Non accrual Status Number of Loans	2	'	'
Financing Receivable 90 Days or More Past Due Not Included in Nonaccrual Status Amount	$70	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	2,856	5,165	'
90 Days and greater Past Due	3,455	2,897	'
Total past due	6,311	8,062	'
Current	612,376	598,704	'
Total loans	618,687	606,766	579,601
Retail	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	1,386	4,306	'
90 Days and greater Past Due	651	114	'
Total past due	2,037	4,420	'
Current	259,127	247,971	'
Total loans	261,164	252,391	'
Consumer	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	92	182	'
90 Days and greater Past Due	'	3	'
Total past due	92	185	'
Current	9,894	10,772	'
Total loans	9,986	10,957	'
Single family residential	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	1,294	3,805	'
90 Days and greater Past Due	651	83	'
Total past due	1,945	3,876	'
Current	220,211	209,887	'
Total loans	222,156	213,763	'
Other retail	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	'	319	'
90 Days and greater Past Due	'	28	'
Total past due	'	359	'
Current	29,022	27,312	'
Total loans	29,022	27,671	'
Commercial	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	1,470	859	'
90 Days and greater Past Due	2,804	2,783	'
Total past due	4,274	3,642	'
Current	353,249	350,733	'
Total loans	357,523	354,375	344,428
Commercial and industrial	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	716	428	'
90 Days and greater Past Due	1,225	1,328	'
Total past due	1,941	1,756	'
Current	87,049	92,946	'
Total loans	88,990	94,702	'
Non farm, non residential real estate loans	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	258	393	'
90 Days and greater Past Due	236	'	'
Total past due	494	393	'
Current	171,406	175,820	'
Total loans	171,900	176,213	'
Construction and development	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	'	'	'
90 Days and greater Past Due	'	28	'
Total past due	'	28	'
Current	40,955	29,910	'
Total loans	40,955	29,938	'
Commercial loans secured by real estate	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	28	38	'
90 Days and greater Past Due	173	178	'
Total past due	201	216	'
Current	32,048	26,724	'
Total loans	32,249	26,940	'
All other commercial	'	'	'
Aging details of the loan portfolio	'	'	'
30 - 89 Days past due	468	'	'
90 Days and greater Past Due	1,170	1,249	'
Total past due	1,638	1,249	'
Current	21,791	25,333	'
Total loans	$23,429	$26,582	'

LOANS_Details_3

LOANS (Details 3) (USD $)	3 Months Ended			6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	$17,753	$10,853	$10,830	$17,753	$10,830	$10,853
Recorded Investment With No Allowance	9,473	6,832	6,969	9,473	6,969	6,832
Recorded Investment With Allowance	6,552	2,393	2,421	6,552	2,421	2,393
Total Recorded Investment	16,025	9,225	9,390	16,025	9,390	9,225
Related Allowance	1,378	471	636	1,378	636	471
Average Recorded Investment	16,233	9,215	9,633	16,521	9,882	9,754
Interest Received	'	'	'	411	227	487
Commercial	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	16,483	9,721	9,770	16,483	9,770	9,721
Recorded Investment With No Allowance	9,044	6,264	6,782	9,044	6,782	6,264
Recorded Investment With Allowance	5,824	1,963	1,705	5,824	1,705	1,963
Total Recorded Investment	14,868	8,227	8,487	14,868	8,487	8,227
Related Allowance	1,260	342	464	1,260	464	342
Average Recorded Investment	15,070	8,275	8,650	15,350	8,872	8,699
Interest Received	'	'	'	385	200	435
Commercial and industrial	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	2,847	2,190	2,225	2,847	2,225	2,190
Recorded Investment With No Allowance	1,995	1,338	1,394	1,995	1,394	1,338
Recorded Investment With Allowance	226	234	229	226	229	234
Total Recorded Investment	2,221	1,572	1,623	2,221	1,623	1,572
Related Allowance	14	16	34	14	34	16
Average Recorded Investment	2,247	1,585	1,631	2,267	1,642	1,620
Interest Received	'	'	'	28	10	23
Non farm, non residential real estate loans	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	9,994	3,236	3,282	9,994	3,282	3,236
Recorded Investment With No Allowance	3,998	1,155	1,681	3,998	1,681	1,155
Recorded Investment With Allowance	5,425	1,551	1,125	5,425	1,125	1,551
Total Recorded Investment	9,423	2,706	2,806	9,423	2,806	2,706
Related Allowance	1,217	282	285	1,217	285	282
Average Recorded Investment	9,533	2,728	2,832	9,650	2,862	2,819
Interest Received	'	'	'	245	76	157
Construction and development	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	250	461	492	250	492	461
Recorded Investment With No Allowance	250	461	325	250	325	461
Recorded Investment With Allowance	'	'	167	'	167	'
Total Recorded Investment	250	461	492	250	492	461
Related Allowance	'	44	62	'	62	44
Average Recorded Investment	250	476	618	282	729	556
Interest Received	'	'	'	8	17	30
Other commercial	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	3,392	3,834	3,771	3,392	3,771	3,834
Recorded Investment With No Allowance	2,801	3,310	3,382	2,801	3,382	3,310
Recorded Investment With Allowance	173	178	184	173	184	178
Total Recorded Investment	2,974	3,488	3,566	2,974	3,566	3,488
Related Allowance	29	'	83	29	83	'
Average Recorded Investment	3,040	3,486	3,569	3,151	3,639	3,704
Interest Received	'	'	'	104	97	225
Retail	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	1,270	1,132	1,060	1,270	1,060	1,132
Recorded Investment With No Allowance	429	568	187	429	187	568
Recorded Investment With Allowance	728	430	716	728	716	430
Total Recorded Investment	1,157	998	903	1,157	903	998
Related Allowance	118	129	172	118	172	129
Average Recorded Investment	1,163	940	983	1,171	1,010	1,055
Interest Received	'	'	'	26	27	52
Single family residential	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	1,270	1,121	1,060	1,270	1,060	1,121
Recorded Investment With No Allowance	429	568	187	429	187	568
Recorded Investment With Allowance	728	419	716	728	716	419
Total Recorded Investment	1,157	987	903	1,157	903	987
Related Allowance	118	118	172	118	172	118
Average Recorded Investment	1,163	935	983	1,171	1,010	1,044
Interest Received	'	'	'	26	27	52
Other retail	'	'	'	'	'	'
Impaired loans	'	'	'	'	'	'
Unpaid Contractual Principal Balance	'	11	'	'	'	11
Recorded Investment With No Allowance	'	'	'	'	'	'
Recorded Investment With Allowance	'	11	'	'	'	11
Total Recorded Investment	'	11	'	'	'	11
Related Allowance	'	11	'	'	'	11
Average Recorded Investment	'	5	'	'	'	11
Interest Received	'	'	'	'	'	'

LOANS_Details_4

LOANS (Details 4) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Nonaccrual loans	'	'
Total	$10,468	$5,396
Retail	'	'
Nonaccrual loans	'	'
Total	2,139	1,688
Consumer	'	'
Nonaccrual loans	'	'
Total	15	21
Single family residential	'	'
Nonaccrual loans	'	'
Total	2,124	1,667
Commercial	'	'
Nonaccrual loans	'	'
Total	8,329	3,708
Commercial and industrial	'	'
Nonaccrual loans	'	'
Total	1,734	1,649
Non farm, non residential real estate loans	'	'
Nonaccrual loans	'	'
Total	5,234	737
Construction and development	'	'
Nonaccrual loans	'	'
Total	'	68
Commercial real estate	'	'
Nonaccrual loans	'	'
Total	191	6
Other commercial	'	'
Nonaccrual loans	'	'
Total	$1,170	$1,248

LOANS_Details_5

LOANS (Details 5) (USD $)

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

3 Months Ended

6 Months Ended

In Thousands, unless otherwise specified

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

item

item

Retail

Retail

Retail

Consumer loans

Consumer loans

Consumer loans

Single family residential

Single family residential

Single family residential

Commercial

Commercial

Nonfarm nonresidential

Nonfarm nonresidential

item

item

item

item

item

item

item

item

item

item

item

item

item

Troubled debt restructurings

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of troubled debt restructuring loans that subsequently defaulted

0

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of loans

'

'

'

3

4

6

2

2

3

2

2

3

1

1

1

1

Post-modification outstanding balance

'

'

'

$40

$172

$175

$4

$4

$8

$36

$168

$167

$4,357

'

$4,357

$4,357

Net charge-offs resulting from modifications

'

'

'

$5

$5

$6

'

'

'

$5

$5

$6

'

'

'

'

Period of loans past due placed on nonaccrual status

'90 days

'

'90 days

'

'

'

'

'

'

'

'

'

'

'

'

'

LOANS_Details_6

LOANS (Details 6) (USD $)	6 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Credit risk profile	'	'	'
Total	$618,687	$606,766	$579,601
Period of loans past due placed on nonaccrual status	'90 days	'90 days	'
Commercial	'	'	'
Credit risk profile	'	'	'
Total	357,523	354,375	344,428
Commercial | Pass	'	'	'
Credit risk profile	'	'	'
Total	342,914	342,850	'
Commercial | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	1,346	4,898	'
Commercial | Substandard	'	'	'
Credit risk profile	'	'	'
Total	11,016	4,302	'
Commercial | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	2,246	2,325	'
Commercial & industrial	'	'	'
Credit risk profile	'	'	'
Total	88,990	94,702	'
Commercial & industrial | Pass	'	'	'
Credit risk profile	'	'	'
Total	85,804	92,155	'
Commercial & industrial | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	175	836	'
Commercial & industrial | Substandard	'	'	'
Credit risk profile	'	'	'
Total	1,935	635	'
Commercial & industrial | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	1,076	1,076	'
Non farm, non residential real estate loans	'	'	'
Credit risk profile	'	'	'
Total	171,900	176,213	'
Non farm, non residential real estate loans | Pass	'	'	'
Credit risk profile	'	'	'
Total	162,410	170,585	'
Non farm, non residential real estate loans | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	996	3,883	'
Non farm, non residential real estate loans | Substandard	'	'	'
Credit risk profile	'	'	'
Total	8,494	1,745	'
Non farm, non residential real estate loans | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	'	'	'
Construction & development	'	'	'
Credit risk profile	'	'	'
Total	40,955	29,938	'
Construction & development | Pass	'	'	'
Credit risk profile	'	'	'
Total	40,705	29,463	'
Construction & development | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	'	'	'
Construction & development | Substandard	'	'	'
Credit risk profile	'	'	'
Total	250	475	'
Construction & development | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	'	'	'
Commercial real estate	'	'	'
Credit risk profile	'	'	'
Total	32,249	26,940	'
Commercial real estate | Pass	'	'	'
Credit risk profile	'	'	'
Total	31,911	26,516	'
Commercial real estate | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	'	'	'
Commercial real estate | Substandard	'	'	'
Credit risk profile	'	'	'
Total	337	424	'
Commercial real estate | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	'	'	'
All other commercial	'	'	'
Credit risk profile	'	'	'
Total	23,429	26,582	'
All other commercial | Pass	'	'	'
Credit risk profile	'	'	'
Total	22,084	24,131	'
All other commercial | Special Mention	'	'	'
Credit risk profile	'	'	'
Total	175	179	'
All other commercial | Substandard	'	'	'
Credit risk profile	'	'	'
Total	'	1,023	'
All other commercial | Doubtful	'	'	'
Credit risk profile	'	'	'
Total	1,170	1,249	'
Retail	'	'	'
Credit risk profile	'	'	'
Total	261,164	252,391	'
Retail | Performing	'	'	'
Credit risk profile	'	'	'
Total	258,222	250,675	'
Retail | Non-performing	'	'	'
Credit risk profile	'	'	'
Total	2,942	1,716	'
Consumer loans	'	'	'
Credit risk profile	'	'	'
Total	9,986	10,957	'
Consumer loans | Performing	'	'	'
Credit risk profile	'	'	'
Total	9,971	10,936	'
Consumer loans | Non-performing	'	'	'
Credit risk profile	'	'	'
Total	15	21	'
Single-Family Residential	'	'	'
Credit risk profile	'	'	'
Total	222,156	213,763	'
Single-Family Residential | Performing	'	'	'
Credit risk profile	'	'	'
Total	219,306	212,096	'
Single-Family Residential | Non-performing	'	'	'
Credit risk profile	'	'	'
Total	2,850	1,667	'
All Other Retail Loans	'	'	'
Credit risk profile	'	'	'
Total	29,022	27,671	'
All Other Retail Loans | Performing	'	'	'
Credit risk profile	'	'	'
Total	28,945	27,643	'
All Other Retail Loans | Non-performing	'	'	'
Credit risk profile	'	'	'
Total	$77	$28	'

LOANS_Details_7

LOANS (Details 7) (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
			item
LOANS	'	'	'	'	'
Number of allowance for loan and lease losses elements	'	'	3	'	'
Activity in the ALLL	'	'	'	'	'
Balance at the beginning of the period	$8,621	$8,657	$8,595	$8,809	$8,809
Less: Charge-offs	-10	-2	-10	-172	-298
Add: Recoveries	24	7	50	25	84
Add: Provisions	'	'	'	'	'
Balance at the end of the period	8,635	8,662	8,635	8,662	8,595
Amount of the ALLL allocated	'	'	'	'	'
Loans individually evaluated for impairment	1,378	636	1,378	636	471
Loans collectively evaluated for impairment	7,257	8,026	7,257	8,026	8,124
Total	8,635	8,662	8,635	8,662	8,595
Loans related to each balance in the ALLL by portfolio segment	'	'	'	'	'
Loans individually evaluated for impairment	16,025	9,390	16,025	9,390	9,225
Loans collectively evaluated for impairment	602,662	570,211	602,662	570,211	597,541
Total loans	618,687	579,601	618,687	579,601	606,766
Commercial	'	'	'	'	'
Activity in the ALLL	'	'	'	'	'
Balance at the beginning of the period	7,373	7,340	7,359	7,528	7,528
Less: Charge-offs	'	-1	'	-145	-222
Add: Recoveries	22	3	36	13	53
Add: Provisions	'	-179	'	-233	'
Balance at the end of the period	7,395	7,163	7,395	7,163	7,359
Amount of the ALLL allocated	'	'	'	'	'
Loans individually evaluated for impairment	1,260	464	1,260	464	342
Loans collectively evaluated for impairment	6,135	6,699	6,135	6,699	7,017
Total	7,395	7,163	7,395	7,163	7,359
Loans related to each balance in the ALLL by portfolio segment	'	'	'	'	'
Loans individually evaluated for impairment	14,868	8,487	14,868	8,487	8,227
Loans collectively evaluated for impairment	342,655	335,941	342,655	335,941	346,148
Total loans	357,523	344,428	357,523	344,428	354,375
Residential real estate	'	'	'	'	'
Activity in the ALLL	'	'	'	'	'
Balance at the beginning of the period	1,085	1,143	1,084	1,109	1,109
Less: Charge-offs	-4	'	-4	-12	-27
Add: Recoveries	1	4	2	4	2
Add: Provisions	'	158	'	204	'
Balance at the end of the period	1,082	1,305	1,082	1,305	1,084
Amount of the ALLL allocated	'	'	'	'	'
Loans individually evaluated for impairment	118	172	118	172	118
Loans collectively evaluated for impairment	964	1,133	964	1,133	966
Total	1,082	1,305	1,082	1,305	1,084
Loans related to each balance in the ALLL by portfolio segment	'	'	'	'	'
Loans individually evaluated for impairment	1,157	903	1,157	903	987
Loans collectively evaluated for impairment	220,999	197,624	220,999	197,624	212,776
Total loans	222,156	198,527	222,156	198,527	213,763
Consumer and other retail	'	'	'	'	'
Activity in the ALLL	'	'	'	'	'
Balance at the beginning of the period	163	174	152	172	172
Less: Charge-offs	-6	-1	-6	-15	-49
Add: Recoveries	1	'	12	8	29
Add: Provisions	'	21	'	29	'
Balance at the end of the period	158	194	158	194	152
Amount of the ALLL allocated	'	'	'	'	'
Loans individually evaluated for impairment	'	'	'	'	11
Loans collectively evaluated for impairment	158	194	158	194	141
Total	158	194	158	194	152
Loans related to each balance in the ALLL by portfolio segment	'	'	'	'	'
Loans individually evaluated for impairment	'	'	'	'	11
Loans collectively evaluated for impairment	39,008	36,646	39,008	36,646	38,617
Total loans	$39,008	$36,646	$39,008	$36,646	$38,628

BORROWED_FUNDS_Details

BORROWED FUNDS (Details) (CMA, USD $)	0 Months Ended
	Jun. 21, 2010	Jun. 30, 2014	Dec. 31, 2013
CMA	'	'	'
BORROWED FUNDS	'	'	'
Maximum borrowing capacity	$40,000,000	'	'
Maximum period of variable rate of interest	'90 days	'	'
Maximum period of fixed rate of interest	'30 days	'	'
Borrowings outstanding at the end of the period	'	$0	$0

POSTRETIREMENT_BENEFIT_PLAN_De

POST-RETIREMENT BENEFIT PLAN (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
POST-RETIREMENT BENEFIT PLAN	'	'	'	'
Service cost	$8	$51	$16	$86
Interest cost	28	167	56	240
Amortization of net gain	-50	'	-97	47
Net periodic pension cost	-14	218	-26	373
Contributions made by Corporation	'	'	$15	$111