First Farmers and Merchants (FFMH) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document And Entity Information
Entity Registrant Name	FIRST FARMERS & MERCHANTS CORP
Entity Central Index Key	703,329
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		4,779,697
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 20,302	$ 18,511
Interest-bearing deposits	$ 8,956	10,086
Federal funds sold		1,700
Total cash and cash equivalents	$ 29,258	30,297
Securities:
Available-for-sale	403,366	397,886
Held-to-maturity (fair market value $3,240 and $22,263 as of September 30, 2015 and December 31, 2014, respectively)	3,210	21,985
Total securities	406,576	419,871
Loans, net of deferred fees	727,535	652,052
Allowance for loan and lease losses	(8,585)	(7,934)
Net loans	718,950	644,118
Bank premises and equipment, net	25,741	25,773
Other real estate owned	90	5
Bank owned life insurance	26,447	26,176
Goodwill	9,018	9,018
Deferred tax asset	3,271	5,097
Other assets	11,545	10,640
TOTAL ASSETS	1,230,896	1,170,995
Deposits:
Noninterest-bearing	223,380	204,358
Interest-bearing	837,821	815,597
Total deposits	1,061,201	$ 1,019,955
Federal funds purchased	11,515
Securities sold under agreements to repurchase	24,936	$ 22,834
Accounts payable and accrued liabilities	13,282	13,622
TOTAL LIABILITIES	1,110,934	1,056,411
SHAREHOLDERS' EQUITY
Common stock - $10 par value per share, 8,000,000 shares authorized; 4,779,697 and 4,900,576 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	47,797	49,006
Retained earnings	71,831	67,609
Accumulated other comprehensive income (loss)	239	(2,126)
TOTAL SHAREHOLDERS' EQUITY BEFORE NONCONTROLLING INTEREST - PREFERRED STOCK OF SUBSIDIARY	119,867	114,489
Noncontrolling interest - preferred stock of subsidiary	95	95
TOTAL SHAREHOLDERS' EQUITY	119,962	114,584
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,230,896	$ 1,170,995

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
Held-to-maturity securities, fair value	$ 3,240	$ 22,263
Common Stock, par or stated value (in dollars per share)	$ 10	$ 10
Common Stock, shares authorized	8,000,000	8,000,000
Common Stock, shares issued	4,779,697	4,900,576
Common Stock, shares outstanding	4,779,697	4,900,576

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 7,815	$ 7,248	$ 22,604	$ 21,190
Income on investment securities:
Taxable interest	1,422	1,469	4,385	4,230
Exempt from federal income tax	530	578	1,692	1,867
Dividends	50	56	160	209
Total interest income	9,817	9,351	28,841	27,496
INTEREST EXPENSE
Interest on deposits	528	587	1,605	1,798
Interest on other short-term borrowings	28	18	73	50
Total interest expense	556	605	1,678	1,848
Net interest income	$ 9,261	$ 8,746	$ 27,163	$ 25,648
Provision for loan and lease losses
Net interest income after provision	$ 9,261	$ 8,746	$ 27,163	$ 25,648
NONINTEREST INCOME
Gain on loans sold	77	86	190	180
Trust department income	619	633	1,911	1,886
Service fees on deposit accounts	1,695	1,681	4,916	4,845
Brokerage fees	144	103	442	325
Earnings on bank owned life insurance	99	104	271	293
Gain (loss) on sale of securities	$ 135	(7)	405	540
Gain on foreclosed property		475	17	471
Other noninterest income	$ 138	102	414	379
Total noninterest income	2,907	3,177	8,566	8,919
NONINTEREST EXPENSE
Salaries and employee benefits	4,654	4,483	13,701	13,380
Net occupancy expense	566	510	1,638	1,453
Depreciation expense	377	349	1,114	1,060
Data processing expense	654	573	1,878	1,734
Legal and professional fees	213	219	1,032	647
Stationary and office supplies	68	74	229	229
Advertising and promotions	307	376	903	1,055
FDIC insurance premium expense	147	172	426	461
Other real estate expense	1	17	1	68
Other noninterest expense	1,537	1,393	4,183	4,202
Total noninterest expense	8,524	8,166	25,105	24,289
Income before taxes	3,644	3,757	10,624	10,278
Provision for income taxes	925	1,031	2,578	2,685
Net income before non-controlling interest - dividends on preferred stock of subsidiary	$ 2,719	$ 2,726	8,046	7,593
Non-controlling interest - dividends on preferred stock subsidiary			8	8
Net income for common shareholders	$ 2,719	$ 2,726	$ 8,038	$ 7,585
Weighted average shares outstanding	4,808,352	4,934,895		4,977,091
Basic earnings per share	$ 0.57	$ 0.55	$ 1.66	$ 1.52

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 2,719	$ 2,726	$ 8,038	$ 7,585
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities, net of tax expense (benefit) of $1,719 and ($475) for the three months ended and net of tax expense of $1,683 and $3,376 for the nine months ended September 30, 2015 and 2014, respectively	2,745	(759)	2,688	5,393
Reclassification adjustment for realized (gains) losses included in net income, net of tax effect	(83)	4	(249)	(332)
Reclassification adjustment for pension plan obligation included in net income, net of tax effect	(25)	(30)	(74)	(89)
Other comprehensive income (loss)	2,637	(785)	2,365	4,972
Comprehensive income	$ 5,356	$ 1,941	$ 10,403	$ 12,557
Less: comprehensive income attributable to the noncontrolling interest
Total comprehensive income	$ 5,356	$ 1,941	$ 10,403	$ 12,557

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Unrealized holding gains (losses) on securities, net of tax expense (benefit)	$ 1,719	$ (475)	$ 1,683	$ 3,376

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income available for common shareholders	$ 8,038	$ 7,585
Adjustments to reconcile net income to net cash provided by operating activities
Provision for depreciation and amortization of premises and equipment	1,114	1,060
Deferred income tax	345	250
Net securities gains	(405)	(540)
Gain on loans sold	(190)	(180)
Proceeds from sale of mortgage loans held for sale	11,828	7,913
Funding of mortgage loans held for sale	(11,490)	(9,718)
Gain on other real estate owned	$ (17)	(471)
Loss on sale of assets		1
Amortization of investment security premiums, net of accretion of discounts	$ 874	818
Increase in cash surrender value of life insurance contracts	(271)	(29)
Changes in:
Other assets	(1,053)	38
Other liabilities	1,352	2,997
Net cash provided by operating activities	10,125	9,724
INVESTING ACTIVITIES
Proceeds from sales of available-for-sale securities	60,449	24,389
Proceeds from maturities and calls of available-for-sale securities	24,742	21,878
Proceeds from maturities and calls of held-to-maturity securities	18,795	3,970
Purchase of investment securities available-for-sale	(87,194)	(86,924)
Net increase in loans	(74,922)	(10,543)
Proceeds from sales of other real estate owned	22	912
Purchases of premises and equipment	$ (1,082)	(1,294)
Purchase of life insurance policy		(175)
Net cash used in investing activities	$ (59,190)	(47,787)
FINANCING ACTIVITIES
Net increase in deposits	41,246	18,852
Net increase in securities sold under agreements to repurchase	2,102	$ 9,272
Net increase in federal funds purchased	11,515
Repurchase of common stock	(3,243)	$ (2,799)
Cash dividends paid on common stock	(3,594)	(3,685)
Net cash provided by financing activities	48,026	21,640
Decrease in cash and cash equivalents	(1,039)	(16,423)
Cash and cash equivalents at beginning of period	30,297	55,408
Cash and cash equivalents at end of period	29,258	38,985
Supplemental disclosures of cash flow information Cash paid during the period for:
Interest paid	1,780	1,768
Income taxes paid	2,220	1,929
Real estate acquired in settlement of loans	$ 90	$ 5

GENERAL AND SUMMARY OF SIGNIFIC

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business – Basis of Presentation The accompanying unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management of the Company, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments. Use of Estimates – Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, (Topic 606) ASU 2015-14, Revenue from Contracts with Customers, (Topic 606): Deferral of the Effective Date In June 2014, the FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassifications:

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 2 – EARNINGS PER SHARE Income per common share – For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 (dollars in thousands, except per share data) Numerator - Net income available to common shareholders $ 2,719 $ 2,726 $ 8,038 $ 7,585 Denominator - Weighted average common shares outstanding 4,808,352 4,934,895 4,852,628 4,977,091 Basic net income per common share available to common shareholders $ 0.57 $ 0.55 $ 1.66 $ 1.52

RECLASSIFICATIONS FROM ACCUMULA

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)	NOTE 3 – RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (“AOCI”) Amounts reclassified from AOCI and the affected line items in the statements of income during the periods ended September 30, 2015 and 2014 were as follows: Amounts reclassified from AOCI Three months ended September 30, 2015 September 30, 2014 Affected line item in the Statements of Income (dollars in thousands) Unrealized gains on available-for-sale securities Realized gains (losses) on sales of available-for- $ 135 $ (7) sale securities (52) 3 Tax (expense) benefit 83 (4) Net reclassified amount Amortization of defined benefit pension items 39 48 Total reclassified amount before tax (14) (18) Tax benefit 25 30 Net reclassified amount Total reclassifications out of AOCI $ 108 $ 26 Amounts reclassified from AOCI Nine months ended September 30, 2015 September 30, 2014 Affected line item in the Statements of Income (dollars in thousands) Unrealized gains on available-for-sale securities Realized gains on sales of available-for-sale $ 405 $ 540 securities (156) (208) Tax expense 249 332 Net reclassified amount Amortization of defined benefit pension items 122 145 Total reclassified amount before tax (48) (56) Tax benefit 74 89 Net reclassified amount Total reclassifications out of AOCI $ 323 $ 421 The components of AOCI included in shareholder’s equity are as follows: September 30, 2015 December 31, 2014 (dollars in thousands) Net unrealized losses on available-for-sale securities $ (1,552) $ (5,517) Net actuarial gain on unfunded portion of postretirement benefit obligation 1,939 2,062 387 (3,455) Income tax (benefit) expense (148) 1,329 Accumulated other comprehensive income (loss) $ 239 $ (2,126)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 4 – 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 Company 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. Fair Value Measurements and Disclosures (ASC 820) Level 1 Inputs Level 2 Inputs Level 3 Inputs Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. Recurring Measurements The following table summarizes financial assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, 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 September 30, 2015 (dollars in thousands) Available-for-sale securities Level 1 Level 2 Level 3 Total U.S. government agencies $ - $ 150,837 $ - $ 150,837 U.S. government sponsored agency mortgage-backed securities - 157,855 - 157,855 States and political subdivisions - 71,596 - 71,596 Corporate bonds - 23,078 - 23,078 Total assets at fair value $ - $ 403,366 $ - $ 403,366 Assets measured at fair value on a recurring basis as of December 31, 2014 (dollars in thousands) Available-for-sale securities Level 1 Level 2 Level 3 Total U.S. government agencies $ - $ 159,254 $ - $ 159,254 U.S. government sponsored agency mortgage-backed securities - 167,970 - 167,970 States and political subdivisions - 52,882 - 52,882 Corporate bonds - 17,780 - 17,780 Total assets at fair value $ - $ 397,886 $ - $ 397,886 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 nine months ended September 30, 2015. 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 Company obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement. The Company 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 September 30, 2015 and December 31, 2014, by the level within the fair value hierarchy utilized to measure fair value: (dollars in thousands) September 30, 2015 Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 920 $ 920 (dollars in thousands) December 31, 2014 Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 1,184 $ 1,184 Impaired Loans The estimated fair value of impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Impaired loans are classified within Level 3 of the fair value hierarchy. The Company 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 Company’s 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. Loans considered impaired under ASC 310-35, Impairment of a Loan 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 (dollars in thousands) Fair value at September 30, 2015 Valuation technique(s) Unobservable input Weighted average Impaired loans (collateral-dependent) $ 920 Discounted appraisals (1) Appraisal adjustments (2) 33% Quantitative information about Level 3 Fair Value Measurements (dollars in thousands) Fair value at December 31, 2014 Valuation technique(s) Unobservable input Range (weighted average) Impaired loans (collateral-dependent) $ 1,184 Discounted appraisals (1) Appraisal adjustments (2) 5% to 10% (7%) (3) (1)Fair value is generally based on appraisals of the underlying collateral. (2) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and other relevant information based on the type of collateral. (3)Ranges presented as a percentage of the non-discounted appraisals. ASC Topic 825, Financial Instruments, 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 Interest bearing deposits in other banks Federal Home Loan Bank stock Federal Reserve Bank stock Federal funds sold Securities available-for-sale – Securities held-to-maturity Loans held for sale Loans (net of the allowance for loan and leases losses) Accrued interest receivable Deposits Repurchase agreements Accrued interest payable Federal funds purchased Commitments to extend credit and letters of credit The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2015 and December 31, 2014, and indicates the level within the fair value hierarchy of the valuation techniques: Fair value measurements at September 30, 2015 using Quoted prices in active markets for Significant other Significant Carrying identical assets observable inputs unobservable inputs amount (Level 1) (Level 2) (Level 3) (dollars in thousands Financial assets Cash and due from banks $ 20,302 $ 20,302 $ - $ - Interest-bearing deposits in other banks 8,956 8,956 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 403,366 - 403,366 - Securities held-to-maturity 3,210 - 3,240 - Loans held for sale 881 - 881 - Loans, net 718,950 - - 718,568 Accrued interest receivable 4,968 - 4,968 - Financial liabilities Noninterest-bearing deposits 223,380 - - 223,380 Interest bearing deposits 837,821 - - 837,797 Repurchase agreements 24,936 - 24,936 - Accrued interest payable 511 - 511 - Federal funds purchased 11,515 11,515 - - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - - Fair value measurements at December 31, 2014 using Quoted prices in active markets for Significant other Significant Carrying identical assets observable inputs unobservable inputs amount (Level 1) (Level 2) (Level 3) (dollars in thousands) Financial assets Cash and due from banks $ 18,511 $ 18,511 $ - $ - Interest-bearing deposits in other banks 10,086 10,086 - - Federal funds sold 1,700 1,700 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 397,886 - 397,886 - Securities held-to-maturity 21,985 - 22,263 - Loans held for sale 354 - 354 - Loans, net 644,118 - - 650,770 Accrued interest receivable 4,337 - 4,337 - Financial liabilities Noninterest-bearing deposits 204,358 204,358 - - Interest bearing deposits 815,597 - 816,022 - Repurchase agreements 22,834 - 22,834 - Accrued interest payable 613 - 613 - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - -

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 5 – SECURITIES The amortized cost and estimated fair value of securities at September 30, 2015 and December 31, 2014 were as follows: Amortized Gross unrealized Fair September 30, 2015 cost Gains Losses value (dollars in thousands) Available-for-sale securities U.S. government agencies $ 151,100 $ 540 $ (803) $ 150,837 U.S. government sponsored agency mortgage-backed securities 160,313 106 (2,564) 157,855 States and political subdivisions 70,482 1,423 (309) 71,596 Corporate bonds 23,023 95 (40) 23,078 $ 404,918 $ 2,164 $ (3,716) $ 403,366 Held-to-maturity securities States and political subdivisions $ 3,210 $ 30 $ - $ 3,240 s Amortized Gross unrealized Fair December 31, 2014 cost Gains Losses value (dollars in thousands) Available-for-sale securities U.S. government agencies $ 162,289 $ 50 $ (3,085) $ 159,254 U.S. government sponsored agency mortgage-backed securities 172,035 64 (4,129) 167,970 States and political subdivisions 51,374 1,658 (150) 52,882 Corporate bonds 17,705 129 (54) 17,780 $ 403,403 $ 1,901 $ (7,418) $ 397,886 Held-to-maturity securities States and political subdivisions $ 21,985 $ 278 $ - $ 22,263 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 September 30, 2015 and December 31, 2014 was $221.2 million and $326.0 million, respectively, which was 54% and 78%, respectively, of the Company’s aggregate available-for-sale and held-to-maturity investment portfolio. The Company reviews its investment portfolio on a quarterly basis judging each investment for other-than-temporary impairment (“OTTI”). Management does not have the intent to sell any of the temporarily impaired investments and believes it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The OTTI analysis focuses on the duration and amount a security is below book value and assesses a calculation for both a credit loss and a non-credit loss for each measured security considering the security’s type, performance, underlying collateral, and any current or potential debt rating changes. The OTTI calculation for credit loss is reflected in the income statement while the non-credit loss is reflected in other comprehensive income. As of September 30, 2015, management did not consider any of the investments in its investment portfolio to have OTTI. The following table shows the Company’s investments’ gross unrealized losses and fair value of the Company’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 September 30, 2015 and December 31, 2014: September 30, 2015 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Type of security U.S. government agencies $ 9,946 $ (31) $ 55,406 $ (772) $ 65,352 $ (803) U.S. government sponsored agency mortgage- backed securities 27,016 (291) 94,680 (2,273) 121,696 (2,564) States and political subdivisions 24,137 (299) 462 (10) 24,599 (309) Corporate bonds 7,975 (27) 1,612 (13) 9,587 (40) $ 69,074 $ (648) $ 152,160 $ (3,068) $ 221,234 $ (3,716) December 31, 2014 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Type of security U.S. government agencies $ 46,977 $ (219) $ 104,815 $ (2,866) $ 151,792 $ (3,085) U.S. government sponsored agency mortgage- backed securities 21,339 (77) 128,935 (4,052) 150,274 (4,129) States and political subdivisions 14,539 (142) 1,418 (8) 15,957 (150) Corporate bonds 4,783 (17) 3,207 (37) 7,990 (54) $ 87,638 $ (455) $ 238,375 $ (6,963) $ 326,013 $ (7,418) As shown in the table above, at September 30, 2015, the Company had approximately $3.7 million in unrealized losses on $221.2 million of securities. The unrealized loss positions are most significant in three types of securities: U.S. government agencies, U.S. government sponsored agency mortgage-backed securities and states and political subdivisions. The unrealized losses associated with these investment securities are driven by changes in interest rates and the unrealized loss is recorded as a component of equity. These securities will continue to be monitored as a part of our ongoing impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond issuers. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. If a shortfall in future cash flows is identified, a credit loss will be deemed to have occurred and will be recognized as a change to earnings and a new cost basis for the security will be established. The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2015, 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 September 30, 2015 Amortized Estimated Amortized Estimated cost fair value cost fair value (dollars in thousands) Within one year $ 4,668 $ 4,694 $ 475 $ 476 One to five years 112,539 113,057 983 1,000 Five to ten years 88,463 88,477 1,752 1,764 After ten years 38,935 39,283 - - Mortgage-backed securities 160,313 157,855 - - Total $ 404,918 $ 403,366 $ 3,210 $ 3,240 Available-for-Sale Held-to-Maturity December 31, 2014 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value (dollars in thousands) Within one year $ 2,464 $ 2,481 $ 6,354 $ 6,446 One to five years 91,208 90,775 3,558 3,601 Five to ten years 112,329 110,508 12,073 12,216 After ten years 25,367 26,152 - - Mortgage-backed securities 172,035 167,970 - - Total $ 403,403 $ 397,886 $ 21,985 $ 22,263 The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $249.9 million at September 30, 2015 and $217.2 million at December 31, 2014. The balance of pledged securities in excess of the pledging requirements was $29.7 million and $20.1 million at September 30, 2015 and December 31, 2014, respectively. The carrying value of securities sold under agreements to repurchase amounted to $35.3 million at September 30, 2015 and $35.0 million at December 31, 2014. The gross realized gains and losses recognized in income are reflected in the following table: For the three months ended September 30, 2015 2014 (dollars in thousands) Gross gains recognized on sales of securities $ 135 $ 21 Gross losses recognized on sales of securities - (28) Net realized gains on sales of securities available-for-sale $ 135 $ (7) For the nine months ended September 30, 2015 2014 (dollars in thousands) Gross gains recognized on sales of securities $ 450 $ 626 Gross losses recognized on sales of securities (45) (86) Net realized gains (losses) on sales of securities available-for-sale $ 405 $ 540

LOANS

LOANS	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
LOANS	NOTE 6 – LOANS The following table presents the Corporation’s loans by class as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 (dollars in thousands) Commercial: Commercial and industrial $ 131,116 $ 99,788 Non-farm, non-residential real estate 161,091 163,461 Construction and development 49,306 50,424 Commercial loans secured by real estate 32,562 27,937 Other commercial 55,701 41,185 Total commercial 429,776 382,795 Retail: Consumer 9,267 9,536 Single family residential 254,462 229,559 Other retail 34,030 30,162 Total retail 297,759 269,257 727,535 652,052 Less: Allowance for possible loan losses (8,585) (7,934) Total net loans $ 718,950 $ 644,118 The amount of capitalized fees and costs calculated in accordance with ASC 310-20 included in the above loan totals were $1.1 million and $976,000 at September 30, 2015 and December 31, 2014, respectively. Loan Origination/Risk Management. 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 Company’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 Company avoids financing single-purpose projects unless other underwriting factors are present to mitigate risk. The Company 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 September 30, 2015, approximately 46% of the outstanding principal balance of the Company’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 Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company 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 Company 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 Company 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 Company contracts with a third party vendor to perform loan reviews. The Company 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 Company’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 Company’s capital structure. The Company’s geographic market area imposes some limitations regarding loan diversification and lending to qualified borrowers within the Company’s market area will naturally cause concentrations of real estate loans in the primary communities served 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 Company, a charge-off is taken with the remaining balance, which reflects 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 Company, a charge-off is taken with the remaining balance reflecting the fair value less estimated costs to sell transferred to other real estate owned. Nonaccrual and Past Due Loans The following tables provide details regarding the aging of the Company’s loan portfolio as of September 30, 2015 and December 31, 2014: 90 days and 30 - 59 days 60 - 89 days greater past September 30, 2015 past due past due due Total past due Current Total loans (dollars in thousands) Retail: Consumer $ 24 $ 5 $ 2 $ 31 $ 9,236 $ 9,267 Single family residential 276 484 209 969 253,493 254,462 Other retail 19 47 - 66 33,964 34,030 Retail total 319 536 211 1,066 296,693 297,759 Commercial: Commercial and industrial $ 561 $ - $ 39 $ 600 $ 130,516 $ 131,116 Non-farm, non-residential real estate - - 126 126 160,965 161,091 Construction and development 1 - - 1 49,305 49,306 Commercial loans secured by real estate 8 54 167 229 32,333 32,562 Other commercial - - - - 55,701 55,701 Commercial total 570 54 332 956 428,820 429,776 Total $ 889 $ 590 $ 543 $ 2,022 $ 725,513 $ 727,535 90 days and 30 - 59 days 60 - 89 days greater past December 31, 2014 past due past due due Total past due Current Total loans (dollars in thousands) Retail: Consumer $ 72 $ 7 $ 42 $ 121 $ 9,415 $ 9,536 Single family residential 2,361 395 464 3,220 226,339 229,559 Other retail - - - - 30,162 30,162 Retail total 2,433 402 506 3,341 265,916 269,257 Commercial: Commercial and industrial $ 263 $ 63 $ 1,428 $ 1,754 $ 98,034 $ 99,788 Non-farm, non-residential real estate 413 145 330 888 162,573 163,461 Construction and development - - - - 50,424 50,424 Commercial loans secured by real estate 91 56 172 319 27,617 27,936 Other commercial 10 - 1,092 1,102 40,083 41,185 Commercial total 777 264 3,022 4,063 378,731 382,794 Total $ 3,210 $ 666 $ 3,528 $ 7,404 $ 644,647 $ 652,051 The following tables summarize the impaired loans by loan type as of September 30, 2015, December 31, 2014 and September 30, 2014: Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest September 30, 2015 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 352 $ 61 $ 245 $ 306 $ 30 $ 326 $ 11 $ 13 Non-farm, non-residential real estate 399 365 - 365 - 383 10 15 Commercial loans secured by real estate 194 - 167 167 29 171 3 10 Other commercial - - - - - - - - Commercial total 945 412 426 838 59 880 24 38 Retail: Single family residential 1,409 594 718 1,312 114 1,183 54 56 Other retail 16 15 - 15 - 15 1 - Retail total 1,425 594 733 1,327 114 1,198 55 56 Total $ 2,370 $ 1,006 $ 1,159 $ 2,165 $ 173 $ 2,078 $ 79 $ 94 Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest December 31, 2014 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 3,760 $ 2,734 $ 217 $ 2,951 $ 9 $ 3,230 $ 97 $ 207 Non-farm, non-residential real estate 3,720 3,241 - 3,241 - 3,570 213 212 Commercial loans secured by real estate 1,053 564 166 730 33 826 67 77 Other commercial 1,256 1,092 - 1,092 - 1,171 89 84 Commercial total 9,789 7,631 383 8,014 42 8,797 466 580 Retail: Single family residential 1,094 539 439 978 10 786 44 42 Other retail 425 411 - 411 - 369 17 19 Retail total 1,519 950 439 1,389 10 1,155 61 61 Total $ 11,308 $ 8,581 $ 822 $ 9,403 $ 52 $ 9,952 $ 527 $ 641 Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest September 30, 2014 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 2,819 $ 1,745 $ 444 $ 2,189 $ 163 $ 2,246 $ 39 $ 122 Non-farm, non-residential real estate 3,874 3,413 - 3,413 - 3,648 161 163 Construction and development - - - - - - - - Other commercial 2,871 2,452 169 2,621 27 2,802 130 132 Commercial total 9,564 7,610 613 8,223 190 8,696 330 417 Retail: Single family residential 2,129 1,064 719 1,783 145 1,563 68 72 Retail total 2,129 1,064 719 1,783 145 1,563 68 72 Total $ 11,693 $ 8,674 $ 1,332 $ 10,006 $ 335 $ 10,259 $ 398 $ 489 The following table summarizes the nonaccrual loans by loan type as of September 30, 2015 and December 31, 2014: September 30, December 31, 2015 2014 (dollars in thousands) Retail: Consumer $ 15 $ 42 Single family residential 1,132 2,237 Retail total 1,147 2,279 Commercial: Commercial and industrial 306 1,428 Non-farm, non-residential real estate 365 409 Commercial loans secured by real estate 167 172 Other commercial - 1,092 Commercial total 838 3,101 Total $ 1,985 $ 5,380 Impaired Loans Troubled Debt Restructurings. When the Company modifies loans in a troubled debt restructuring, the Company 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 Company 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 Company evaluates all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. During the three months ended September 30, 2015, there were no loans modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, or forbearances. In addition, there were no troubled debt restructuring loans that subsequently defaulted during the nine months ended September 30, 2015, 2014 and year ended December 31, 2014, that have been restructured within the past 12 months. Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and nine months ended September 30, 2015, 2014 and year ended December 31, 2014: Three months ended September 30, 2015 Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications (dollars in thousands) Retail: Single family residential 1 $ 78 $ - Total troubled debt restructurings 1 $ 78 $ - Nine months ended September 30, 2015 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Retail: Single family residential 2 $ 111 $ - Total troubled debt restructurings 2 $ 111 $ - Year ended December 31, 2014 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Commercial: Nonfarm nonresidential 1 $ 4,357 $ - Retail: Single family residential 1 316 3 Total troubled debt restructurings 2 $ 4,673 $ 3 Three months ended September 30, 2014 Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications (dollars in thousands) Commercial: Nonfarm nonresidential 1 $ 321 $ - Total troubled debt restructurings 1 $ 321 $ - Nine months ended September 30, 2014 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Commercial: Nonfarm nonresidential 1 $ 4,357 $ - Retail: Single family residential 1 321 3 Total troubled debt restructurings 2 $ 4,678 $ 3 The loan’s accrual status is assessed at the time of its modification. As a result of the assessment, the accrual status may be modified. Commercial and retail 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 Company evaluates the loan for possible further impairment. The Company has had no loans modified in a troubled debt restructuring that have subsequently defaulted. 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 Company considers a loan in default when it is 90 days or more past due and still accruing or transferred to nonaccrual status. As of September 30, 2015 and December 31, 2014, the Company had no consumer mortgage loans secured by residential real estate properties for which formal proceedings are in process according to location requirement of the applicable jurisdiction. Credit Quality Indicators. The Company 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 Risk Rating 2 – Modest Risk Risk Rating 3 – Average Risk Risk Rating 4 – Acceptable Risk Risk Rating 5 – Pass/Watch Risk Rating 6 – Special Mention Risk Rating 7 – Substandard Risk Rating 8 – Doubtful The following tables present risk grades and classified loans by class of commercial loan in the Company’s portfolios as of September 30, 2015 and December 31, 2014: September 30, 2015 Commercial loan portfolio: Credit Non-farm, non- Construction Commercial risk profile by internally assigned Commercial residential real and loans secured Other Commercial grade and industrial estate development by real estate commercial loan totals (dollars in thousands) Risk rating 1 - minimal risk $ 1,302 $ 319 $ - $ 106 $ 95 $ 1,822 Risk rating 2 - modest risk 3,810 300 - - 44,234 48,344 Risk rating 3 - average risk 52,722 47,260 19,528 2,548 6,455 128,513 Risk rating 4 - acceptable risk 68,320 100,753 29,211 29,282 4,755 232,321 Risk rating 5 - pass/watch 4,639 11,547 567 487 - 17,240 Risk rating 6 - special mention - 275 - 44 162 481 Risk rating 7 - substandard 323 637 - 95 - 1,055 Risk rating 8 - doubtful - - - - - - TOTALS $ 131,116 $ 161,091 $ 49,306 $ 32,562 $ 55,701 $ 429,776 Retail loan portfolio: Credit risk profiles based on delinquency status Single family Retail loan classification Consumer residential** Other retail totals (dollars in thousands) Performing - risk ratings 1 - 6 $ 9,252 $ 252,506 $ 33,981 $ 295,739 Nonperforming - risk rating 7* 15 1,956 49 2,020 Risk rating 8 - doubtful - - - - TOTALS $ 9,267 $ 254,462 $ 34,030 $ 297,759 *Loans are classified as nonperforming loans and are automatically placed on nonaccrual status once they reach 90 days past due. For the purposes of this table all nonperforming loans are included in risk rating 7. **Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOCs). December 31, 2014 Commercial loan portfolio: Credit Non-farm, non- Construction Commercial risk profile by internally assigned Commercial residential real and loans secured Other Commercial grade and industrial estate development by real estate commercial loan totals (dollars in thousands) Risk rating 1 - minimal risk $ 1,004 $ 466 $ - $ 113 $ 1 $ 1,584 Risk rating 2 - modest risk 3,908 314 - 30,408 34,630 Risk rating 3 - average risk 47,047 46,784 18,903 4,700 5,712 123,146 Risk rating 4 - acceptable risk 42,116 101,809 29,808 21,682 3,802 199,217 Risk rating 5 - pass/watch 3,143 9,763 1,713 1,115 - 15,734 Risk rating 6 - special mention - 958 - - 170 1,128 Risk rating 7 - substandard 2,570 3,367 - 327 1,092 7,356 Risk rating 8 - doubtful - - - - - - TOTALS $ 99,788 $ 163,461 $ 50,424 $ 27,937 $ 41,185 $ 382,795 Retail loan portfolio: Credit risk profiles based on delinquency status Single family Retail loan classification Consumer residential** Other retail totals (dollars in thousands) Risk ratings 1 - 6 $ 9,494 $ 226,637 $ 29,683 $ 265,814 Nonperforming - risk rating 7* 42 2,922 479 3,443 Risk rating 8 - doubtful - - - - TOTALS $ 9,536 $ 229,559 $ 30,162 $ 269,257 *Loans are classified as nonperforming loans and are automatically placed on nonaccrual status once they reach 90 days past due. For the purposes of this table all nonperforming loans are included in risk rating 7. **Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOCs). Allowance for Loan and Lease Losses. ASC Topic 310, Receivables ASC Topic 450, Contingencies 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 Company’s control, including, among other things, the performance of the loan portfolio, the economy, and changes in interest. The Company’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 Company. 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 Company 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 Company’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. 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 Company’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 nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014: Consumer Three months ended Single family and other September 30, 2015 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,384 $ 1,045 $ 164 $ 8,593 Less: charge-offs - (18) (7) (25) Add: recoveries 9 2 6 17 Add: provisions - - - - Ending balance $ 7,393 $ 1,029 $ 163 $ 8,585 Consumer Nine months ended Single family and other September 30, 2015 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 6,719 $ 1,053 $ 162 $ 7,934 Less: charge-offs - (34) (13) (47) Add: recoveries 674 10 14 698 Add: provisions - - - - Ending balance $ 7,393 $ 1,029 $ 163 $ 8,585 Consumer Single family and other December 31, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,359 $ 1,084 $ 152 $ 8,595 Less: charge-offs (739) (41) (11) (791) Add: recoveries 99 10 21 130 Add: provisions - - - - Ending balance $ 6,719 $ 1,053 $ 162 $ 7,934 Consumer Three months ended Single family and other September 30, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,395 $ 1,082 $ 158 $ 8,635 Less: charge-offs (372) (37) (4) (413) Add: recoveries 33 1 1 35 Add: provisions - - - - Ending balance $ 7,056 $ 1,046 $ 155 $ 8,257 Consumer Nine months ended Single family and other September 30, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,359 $ 1,084 $ 152 $ 8,595 Less: charge-offs (372) (41) (10) (423) Add: recoveries 69 3 13 85 Add: provisions - - - - Ending balance $ 7,056 $ 1,046 $ 155 $ 8,257 The following tables detail the amount of the ALLL allocated to each portfolio segment as of September 30, 2015, December 31, 2014 and September 30, 2014, disaggregated on the basis of the Corporation’s impairment methodology: Single family Consumer and September 30, 2015 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 59 $ 114 $ - $ 173 Loans collectively evaluated for impairment 7,334 915 163 8,412 Total $ 7,393 $ 1,029 $ 163 $ 8,585 Single family Consumer and December 31, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 42 $ 10 $ - $ 52 Loans collectively evaluated for impairment 6,677 1,043 162 7,882 Total $ 6,719 $ 1,053 $ 162 $ 7,934 Single family Consumer and September 30, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 190 $ 145 $ - $ 335 Loans collectively evaluated for impairment 6,866 901 155 7,922 Total $ 7,056 $ 1,046 $ 155 $ 8,257 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: Single family Consumer and September 30, 2015 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 838 $ 1,312 $ 15 $ 2,165 Loans collectively evaluated for impairment 428,938 253,150 43,282 725,370 Ending balance $ 429,776 $ 254,462 $ 43,297 $ 727,535 Single family Consumer and December 31, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,014 $ 978 $ 411 $ 9,403 Loans collectively evaluated for impairment 374,781 228,170 39,698 642,649 Ending balance $ 382,795 $ 229,148 $ 40,109 $ 652,052 Single family Consumer and September 30, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,223 $ 1,783 $ - $ 10,006 Loans collectively evaluated for impairment 342,486 225,211 39,263 606,960 Ending balance $ 350,709 $ 226,994 $ 39,263 $ 616,966

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	9 Months Ended
	Sep. 30, 2015
Securities Sold under Agreements to Repurchase [Abstract]
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	NOTE 7 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as secured borrowings and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. As a result, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The Company has the right to sell or repledge the investment securities. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization in the event of counterparty default. The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of September 30, 2015, disaggregated by the class of collateral pledged. Overnight & September 30, 2015 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 24,936 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 24,936

GENERAL AND SUMMARY OF SIGNIF15

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Nature of Operations	Nature of Business –
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management of the Company, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments.
Use of Estimates	Use of Estimates –
Recent Accounting Standards	Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, (Topic 606) ASU 2015-14, Revenue from Contracts with Customers, (Topic 606): Deferral of the Effective Date In June 2014, the FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40)
Reclassifications	Reclassifications:

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of the basic net income per share calculation	The following is a summary of the basic net income per share calculation for the three and nine months ended September 30, 2015 and 2014: For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 (dollars in thousands, except per share data) Numerator - Net income available to common shareholders $ 2,719 $ 2,726 $ 8,038 $ 7,585 Denominator - Weighted average common shares outstanding 4,808,352 4,934,895 4,852,628 4,977,091 Basic net income per common share available to common shareholders $ 0.57 $ 0.55 $ 1.66 $ 1.52

RECLASSIFICATIONS FROM ACCUMU17

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Schedule of reclassified from AOCI	Amounts reclassified from AOCI and the affected line items in the statements of income during the periods ended September 30, 2015 and 2014 were as follows: Amounts reclassified from AOCI Three months ended September 30, 2015 September 30, 2014 Affected line item in the Statements of Income (dollars in thousands) Unrealized gains on available-for-sale securities Realized gains (losses) on sales of available-for- $ 135 $ (7) sale securities (52) 3 Tax (expense) benefit 83 (4) Net reclassified amount Amortization of defined benefit pension items 39 48 Total reclassified amount before tax (14) (18) Tax benefit 25 30 Net reclassified amount Total reclassifications out of AOCI $ 108 $ 26 Amounts reclassified from AOCI Nine months ended September 30, 2015 September 30, 2014 Affected line item in the Statements of Income (dollars in thousands) Unrealized gains on available-for-sale securities Realized gains on sales of available-for-sale $ 405 $ 540 securities (156) (208) Tax expense 249 332 Net reclassified amount Amortization of defined benefit pension items 122 145 Total reclassified amount before tax (48) (56) Tax benefit 74 89 Net reclassified amount Total reclassifications out of AOCI $ 323 $ 421
Schedule of components of accumulated other comprehensive income (loss)	The components of AOCI included in shareholder’s equity are as follows: September 30, 2015 December 31, 2014 (dollars in thousands) Net unrealized losses on available-for-sale securities $ (1,552) $ (5,517) Net actuarial gain on unfunded portion of postretirement benefit obligation 1,939 2,062 387 (3,455) Income tax (benefit) expense (148) 1,329 Accumulated other comprehensive income (loss) $ 239 $ (2,126)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of financial assets measured at fair value on a recurring basis	The following table summarizes financial assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, 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 September 30, 2015 (dollars in thousands) Available-for-sale securities Level 1 Level 2 Level 3 Total U.S. government agencies $ - $ 150,837 $ - $ 150,837 U.S. government sponsored agency mortgage-backed securities - 157,855 - 157,855 States and political subdivisions - 71,596 - 71,596 Corporate bonds - 23,078 - 23,078 Total assets at fair value $ - $ 403,366 $ - $ 403,366 Assets measured at fair value on a recurring basis as of December 31, 2014 (dollars in thousands) Available-for-sale securities Level 1 Level 2 Level 3 Total U.S. government agencies $ - $ 159,254 $ - $ 159,254 U.S. government sponsored agency mortgage-backed securities - 167,970 - 167,970 States and political subdivisions - 52,882 - 52,882 Corporate bonds - 17,780 - 17,780 Total assets at fair value $ - $ 397,886 $ - $ 397,886
Summary of financial assets measured at fair value on a nonrecurring basis	The following table summarizes financial assets measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014, by the level within the fair value hierarchy utilized to measure fair value: (dollars in thousands) September 30, 2015 Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 920 $ 920 (dollars in thousands) December 31, 2014 Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 1,184 $ 1,184
Schedule of quantitative information about unobservable 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 (dollars in thousands) Fair value at September 30, 2015 Valuation technique(s) Unobservable input Weighted average Impaired loans (collateral-dependent) $ 920 Discounted appraisals (1) Appraisal adjustments (2) 33% Quantitative information about Level 3 Fair Value Measurements (dollars in thousands) Fair value at December 31, 2014 Valuation technique(s) Unobservable input Range (weighted average) Impaired loans (collateral-dependent) $ 1,184 Discounted appraisals (1) Appraisal adjustments (2) 5% to 10% (7%) (3) (1)Fair value is generally based on appraisals of the underlying collateral. (2) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and other relevant information based on the type of collateral. (3)Ranges presented as a percentage of the non-discounted appraisals.
Schedule of estimated fair values of the financial instruments	The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2015 and December 31, 2014, and indicates the level within the fair value hierarchy of the valuation techniques: Fair value measurements at September 30, 2015 using Quoted prices in active markets for Significant other Significant Carrying identical assets observable inputs unobservable inputs amount (Level 1) (Level 2) (Level 3) (dollars in thousands Financial assets Cash and due from banks $ 20,302 $ 20,302 $ - $ - Interest-bearing deposits in other banks 8,956 8,956 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 403,366 - 403,366 - Securities held-to-maturity 3,210 - 3,240 - Loans held for sale 881 - 881 - Loans, net 718,950 - - 718,568 Accrued interest receivable 4,968 - 4,968 - Financial liabilities Noninterest-bearing deposits 223,380 - - 223,380 Interest bearing deposits 837,821 - - 837,797 Repurchase agreements 24,936 - 24,936 - Accrued interest payable 511 - 511 - Federal funds purchased 11,515 11,515 - - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - - Fair value measurements at December 31, 2014 using Quoted prices in active markets for Significant other Significant Carrying identical assets observable inputs unobservable inputs amount (Level 1) (Level 2) (Level 3) (dollars in thousands) Financial assets Cash and due from banks $ 18,511 $ 18,511 $ - $ - Interest-bearing deposits in other banks 10,086 10,086 - - Federal funds sold 1,700 1,700 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 397,886 - 397,886 - Securities held-to-maturity 21,985 - 22,263 - Loans held for sale 354 - 354 - Loans, net 644,118 - - 650,770 Accrued interest receivable 4,337 - 4,337 - Financial liabilities Noninterest-bearing deposits 204,358 204,358 - - Interest bearing deposits 815,597 - 816,022 - Repurchase agreements 22,834 - 22,834 - Accrued interest payable 613 - 613 - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - -

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and estimated fair value of securities	The amortized cost and estimated fair value of securities at September 30, 2015 and December 31, 2014 were as follows: Amortized Gross unrealized Fair September 30, 2015 cost Gains Losses value (dollars in thousands) Available-for-sale securities U.S. government agencies $ 151,100 $ 540 $ (803) $ 150,837 U.S. government sponsored agency mortgage-backed securities 160,313 106 (2,564) 157,855 States and political subdivisions 70,482 1,423 (309) 71,596 Corporate bonds 23,023 95 (40) 23,078 $ 404,918 $ 2,164 $ (3,716) $ 403,366 Held-to-maturity securities States and political subdivisions $ 3,210 $ 30 $ - $ 3,240 Amortized Gross unrealized Fair December 31, 2014 cost Gains Losses value (dollars in thousands) Available-for-sale securities U.S. government agencies $ 162,289 $ 50 $ (3,085) $ 159,254 U.S. government sponsored agency mortgage-backed securities 172,035 64 (4,129) 167,970 States and political subdivisions 51,374 1,658 (150) 52,882 Corporate bonds 17,705 129 (54) 17,780 $ 403,403 $ 1,901 $ (7,418) $ 397,886 Held-to-maturity securities States and political subdivisions $ 21,985 $ 278 $ - $ 22,263
Schedule of Corporation's investments' gross unrealized losses and fair value	The following table shows the Company’s investments’ gross unrealized losses and fair value of the Company’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 September 30, 2015 and December 31, 2014: September 30, 2015 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Type of security U.S. government agencies $ 9,946 $ (31) $ 55,406 $ (772) $ 65,352 $ (803) U.S. government sponsored agency mortgage- backed securities 27,016 (291) 94,680 (2,273) 121,696 (2,564) States and political subdivisions 24,137 (299) 462 (10) 24,599 (309) Corporate bonds 7,975 (27) 1,612 (13) 9,587 (40) $ 69,074 $ (648) $ 152,160 $ (3,068) $ 221,234 $ (3,716) December 31, 2014 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Type of security U.S. government agencies $ 46,977 $ (219) $ 104,815 $ (2,866) $ 151,792 $ (3,085) U.S. government sponsored agency mortgage- backed securities 21,339 (77) 128,935 (4,052) 150,274 (4,129) States and political subdivisions 14,539 (142) 1,418 (8) 15,957 (150) Corporate bonds 4,783 (17) 3,207 (37) 7,990 (54) $ 87,638 $ (455) $ 238,375 $ (6,963) $ 326,013 $ (7,418)
Schedule of amortized cost and fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity	The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2015, 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 September 30, 2015 Amortized Estimated Amortized Estimated cost fair value cost fair value (dollars in thousands) Within one year $ 4,668 $ 4,694 $ 475 $ 476 One to five years 112,539 113,057 983 1,000 Five to ten years 88,463 88,477 1,752 1,764 After ten years 38,935 39,283 - - Mortgage-backed securities 160,313 157,855 - - Total $ 404,918 $ 403,366 $ 3,210 $ 3,240 Available-for-Sale Held-to-Maturity December 31, 2014 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value (dollars in thousands) Within one year $ 2,464 $ 2,481 $ 6,354 $ 6,446 One to five years 91,208 90,775 3,558 3,601 Five to ten years 112,329 110,508 12,073 12,216 After ten years 25,367 26,152 - - Mortgage-backed securities 172,035 167,970 - - Total $ 403,403 $ 397,886 $ 21,985 $ 22,263
Schedule of gross realized gains and losses recognized in income	The gross realized gains and losses recognized in income are reflected in the following table: For the three months ended September 30, 2015 2014 (dollars in thousands) Gross gains recognized on sales of securities $ 135 $ 21 Gross losses recognized on sales of securities - (28) Net realized gains on sales of securities available-for-sale $ 135 $ (7) For the nine months ended September 30, 2015 2014 (dollars in thousands) Gross gains recognized on sales of securities $ 450 $ 626 Gross losses recognized on sales of securities (45) (86) Net realized gains (losses) on sales of securities available-for-sale $ 405 $ 540

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Schedule of loans by category	The following table presents the Corporation’s loans by class as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 (dollars in thousands) Commercial: Commercial and industrial $ 131,116 $ 99,788 Non-farm, non-residential real estate 161,091 163,461 Construction and development 49,306 50,424 Commercial loans secured by real estate 32,562 27,937 Other commercial 55,701 41,185 Total commercial 429,776 382,795 Retail: Consumer 9,267 9,536 Single family residential 254,462 229,559 Other retail 34,030 30,162 Total retail 297,759 269,257 727,535 652,052 Less: Allowance for possible loan losses (8,585) (7,934) Total net loans $ 718,950 $ 644,118
Schedule of details regarding the aging loan portfolio	The following tables provide details regarding the aging of the Company’s loan portfolio as of September 30, 2015 and December 31, 2014: 90 days and 30 - 59 days 60 - 89 days greater past September 30, 2015 past due past due due Total past due Current Total loans (dollars in thousands) Retail: Consumer $ 24 $ 5 $ 2 $ 31 $ 9,236 $ 9,267 Single family residential 276 484 209 969 253,493 254,462 Other retail 19 47 - 66 33,964 34,030 Retail total 319 536 211 1,066 296,693 297,759 Commercial: Commercial and industrial $ 561 $ - $ 39 $ 600 $ 130,516 $ 131,116 Non-farm, non-residential real estate - - 126 126 160,965 161,091 Construction and development 1 - - 1 49,305 49,306 Commercial loans secured by real estate 8 54 167 229 32,333 32,562 Other commercial - - - - 55,701 55,701 Commercial total 570 54 332 956 428,820 429,776 Total $ 889 $ 590 $ 543 $ 2,022 $ 725,513 $ 727,535 90 days and 30 - 59 days 60 - 89 days greater past December 31, 2014 past due past due due Total past due Current Total loans (dollars in thousands) Retail: Consumer $ 72 $ 7 $ 42 $ 121 $ 9,415 $ 9,536 Single family residential 2,361 395 464 3,220 226,339 229,559 Other retail - - - - 30,162 30,162 Retail total 2,433 402 506 3,341 265,916 269,257 Commercial: Commercial and industrial $ 263 $ 63 $ 1,428 $ 1,754 $ 98,034 $ 99,788 Non-farm, non-residential real estate 413 145 330 888 162,573 163,461 Construction and development - - - - 50,424 50,424 Commercial loans secured by real estate 91 56 172 319 27,617 27,936 Other commercial 10 - 1,092 1,102 40,083 41,185 Commercial total 777 264 3,022 4,063 378,731 382,794 Total $ 3,210 $ 666 $ 3,528 $ 7,404 $ 644,647 $ 652,051
Summary of impaired loans by loan type	The following tables summarize the impaired loans by loan type as of September 30, 2015, December 31, 2014 and September 30, 2014: Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest September 30, 2015 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 352 $ 61 $ 245 $ 306 $ 30 $ 326 $ 11 $ 13 Non-farm, non-residential real estate 399 365 - 365 - 383 10 15 Commercial loans secured by real estate 194 - 167 167 29 171 3 10 Other commercial - - - - - - - - Commercial total 945 412 426 838 59 880 24 38 Retail: Single family residential 1,409 594 718 1,312 114 1,183 54 56 Other retail 16 15 - 15 - 15 1 - Retail total 1,425 594 733 1,327 114 1,198 55 56 Total $ 2,370 $ 1,006 $ 1,159 $ 2,165 $ 173 $ 2,078 $ 79 $ 94 Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest December 31, 2014 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 3,760 $ 2,734 $ 217 $ 2,951 $ 9 $ 3,230 $ 97 $ 207 Non-farm, non-residential real estate 3,720 3,241 - 3,241 - 3,570 213 212 Commercial loans secured by real estate 1,053 564 166 730 33 826 67 77 Other commercial 1,256 1,092 - 1,092 - 1,171 89 84 Commercial total 9,789 7,631 383 8,014 42 8,797 466 580 Retail: Single family residential 1,094 539 439 978 10 786 44 42 Other retail 425 411 - 411 - 369 17 19 Retail total 1,519 950 439 1,389 10 1,155 61 61 Total $ 11,308 $ 8,581 $ 822 $ 9,403 $ 52 $ 9,952 $ 527 $ 641 Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest September 30, 2014 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 2,819 $ 1,745 $ 444 $ 2,189 $ 163 $ 2,246 $ 39 $ 122 Non-farm, non-residential real estate 3,874 3,413 - 3,413 - 3,648 161 163 Construction and development - - - - - - - - Other commercial 2,871 2,452 169 2,621 27 2,802 130 132 Commercial total 9,564 7,610 613 8,223 190 8,696 330 417 Retail: Single family residential 2,129 1,064 719 1,783 145 1,563 68 72 Retail total 2,129 1,064 719 1,783 145 1,563 68 72 Total $ 11,693 $ 8,674 $ 1,332 $ 10,006 $ 335 $ 10,259 $ 398 $ 489
Summary of nonaccrual loans by loan type	The following table summarizes the nonaccrual loans by loan type as of September 30, 2015 and December 31, 2014: September 30, December 31, 2015 2014 (dollars in thousands) Retail: Consumer $ 15 $ 42 Single family residential 1,132 2,237 Retail total 1,147 2,279 Commercial: Commercial and industrial 306 1,428 Non-farm, non-residential real estate 365 409 Commercial loans secured by real estate 167 172 Other commercial - 1,092 Commercial total 838 3,101 Total $ 1,985 $ 5,380
Schedule of troubled debt restructurings	Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and nine months ended September 30, 2015, 2014 and year ended December 31, 2014: Three months ended September 30, 2015 Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications (dollars in thousands) Retail: Single family residential 1 $ 78 $ - Total troubled debt restructurings 1 $ 78 $ - Nine months ended September 30, 2015 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Retail: Single family residential 2 $ 111 $ - Total troubled debt restructurings 2 $ 111 $ - Year ended December 31, 2014 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Commercial: Nonfarm nonresidential 1 $ 4,357 $ - Retail: Single family residential 1 316 3 Total troubled debt restructurings 2 $ 4,673 $ 3 Three months ended September 30, 2014 Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications (dollars in thousands) Commercial: Nonfarm nonresidential 1 $ 321 $ - Total troubled debt restructurings 1 $ 321 $ - Nine months ended September 30, 2014 (dollars in thousands) Post- modification Net charge-offs Number of outstanding resulting from loans balance modifications Commercial: Nonfarm nonresidential 1 $ 4,357 $ - Retail: Single family residential 1 321 3 Total troubled debt restructurings 2 $ 4,678 $ 3
Schedule of risk grades and classified loans	The following tables present risk grades and classified loans by class of commercial loan in the Company’s portfolios as of September 30, 2015 and December 31, 2014: September 30, 2015 Commercial loan portfolio: Credit Non-farm, non- Construction Commercial risk profile by internally assigned Commercial residential real and loans secured Other Commercial grade and industrial estate development by real estate commercial loan totals (dollars in thousands) Risk rating 1 - minimal risk $ 1,302 $ 319 $ - $ 106 $ 95 $ 1,822 Risk rating 2 - modest risk 3,810 300 - - 44,234 48,344 Risk rating 3 - average risk 52,722 47,260 19,528 2,548 6,455 128,513 Risk rating 4 - acceptable risk 68,320 100,753 29,211 29,282 4,755 232,321 Risk rating 5 - pass/watch 4,639 11,547 567 487 - 17,240 Risk rating 6 - special mention - 275 - 44 162 481 Risk rating 7 - substandard 323 637 - 95 - 1,055 Risk rating 8 - doubtful - - - - - - TOTALS $ 131,116 $ 161,091 $ 49,306 $ 32,562 $ 55,701 $ 429,776 Retail loan portfolio: Credit risk profiles based on delinquency status Single family Retail loan classification Consumer residential** Other retail totals (dollars in thousands) Performing - risk ratings 1 - 6 $ 9,252 $ 252,506 $ 33,981 $ 295,739 Nonperforming - risk rating 7* 15 1,956 49 2,020 Risk rating 8 - doubtful - - - - TOTALS $ 9,267 $ 254,462 $ 34,030 $ 297,759 *Loans are classified as nonperforming loans and are automatically placed on nonaccrual status once they reach 90 days past due. For the purposes of this table all nonperforming loans are included in risk rating 7. **Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOCs). December 31, 2014 Commercial loan portfolio: Credit Non-farm, non- Construction Commercial risk profile by internally assigned Commercial residential real and loans secured Other Commercial grade and industrial estate development by real estate commercial loan totals (dollars in thousands) Risk rating 1 - minimal risk $ 1,004 $ 466 $ - $ 113 $ 1 $ 1,584 Risk rating 2 - modest risk 3,908 314 - 30,408 34,630 Risk rating 3 - average risk 47,047 46,784 18,903 4,700 5,712 123,146 Risk rating 4 - acceptable risk 42,116 101,809 29,808 21,682 3,802 199,217 Risk rating 5 - pass/watch 3,143 9,763 1,713 1,115 - 15,734 Risk rating 6 - special mention - 958 - - 170 1,128 Risk rating 7 - substandard 2,570 3,367 - 327 1,092 7,356 Risk rating 8 - doubtful - - - - - - TOTALS $ 99,788 $ 163,461 $ 50,424 $ 27,937 $ 41,185 $ 382,795 Retail loan portfolio: Credit risk profiles based on delinquency status Single family Retail loan classification Consumer residential** Other retail totals (dollars in thousands) Risk ratings 1 - 6 $ 9,494 $ 226,637 $ 29,683 $ 265,814 Nonperforming - risk rating 7* 42 2,922 479 3,443 Risk rating 8 - doubtful - - - - TOTALS $ 9,536 $ 229,559 $ 30,162 $ 269,257 *Loans are classified as nonperforming loans and are automatically placed on nonaccrual status once they reach 90 days past due. For the purposes of this table all nonperforming loans are included in risk rating 7. **Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOCs).
Schedule of allowance loan and lease losses	The following tables summarize the allocation in the ALLL by loan segment for the three and nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014: Consumer Three months ended Single family and other September 30, 2015 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,384 $ 1,045 $ 164 $ 8,593 Less: charge-offs - (18) (7) (25) Add: recoveries 9 2 6 17 Add: provisions - - - - Ending balance $ 7,393 $ 1,029 $ 163 $ 8,585 Consumer Nine months ended Single family and other September 30, 2015 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 6,719 $ 1,053 $ 162 $ 7,934 Less: charge-offs - (34) (13) (47) Add: recoveries 674 10 14 698 Add: provisions - - - - Ending balance $ 7,393 $ 1,029 $ 163 $ 8,585 Consumer Single family and other December 31, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,359 $ 1,084 $ 152 $ 8,595 Less: charge-offs (739) (41) (11) (791) Add: recoveries 99 10 21 130 Add: provisions - - - - Ending balance $ 6,719 $ 1,053 $ 162 $ 7,934 Consumer Three months ended Single family and other September 30, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,395 $ 1,082 $ 158 $ 8,635 Less: charge-offs (372) (37) (4) (413) Add: recoveries 33 1 1 35 Add: provisions - - - - Ending balance $ 7,056 $ 1,046 $ 155 $ 8,257 Consumer Nine months ended Single family and other September 30, 2014 Commercial residential retail Totals (dollars in thousands) Beginning balance $ 7,359 $ 1,084 $ 152 $ 8,595 Less: charge-offs (372) (41) (10) (423) Add: recoveries 69 3 13 85 Add: provisions - - - - Ending balance $ 7,056 $ 1,046 $ 155 $ 8,257
Schedule of recorded investment bsed on impairment methodology	The following tables detail the amount of the ALLL allocated to each portfolio segment as of September 30, 2015, December 31, 2014 and September 30, 2014, disaggregated on the basis of the Corporation’s impairment methodology: Single family Consumer and September 30, 2015 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 59 $ 114 $ - $ 173 Loans collectively evaluated for impairment 7,334 915 163 8,412 Total $ 7,393 $ 1,029 $ 163 $ 8,585 Single family Consumer and December 31, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 42 $ 10 $ - $ 52 Loans collectively evaluated for impairment 6,677 1,043 162 7,882 Total $ 6,719 $ 1,053 $ 162 $ 7,934 Single family Consumer and September 30, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 190 $ 145 $ - $ 335 Loans collectively evaluated for impairment 6,866 901 155 7,922 Total $ 7,056 $ 1,046 $ 155 $ 8,257 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: Single family Consumer and September 30, 2015 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 838 $ 1,312 $ 15 $ 2,165 Loans collectively evaluated for impairment 428,938 253,150 43,282 725,370 Ending balance $ 429,776 $ 254,462 $ 43,297 $ 727,535 Single family Consumer and December 31, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,014 $ 978 $ 411 $ 9,403 Loans collectively evaluated for impairment 374,781 228,170 39,698 642,649 Ending balance $ 382,795 $ 229,148 $ 40,109 $ 652,052 Single family Consumer and September 30, 2014 Commercial residential other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,223 $ 1,783 $ - $ 10,006 Loans collectively evaluated for impairment 342,486 225,211 39,263 606,960 Ending balance $ 350,709 $ 226,994 $ 39,263 $ 616,966

SECURITIES SOLD UNDER AGREEME21

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)	9 Months Ended
	Sep. 30, 2015
Securities Sold Under Agreements To Repurchase Tables
Schedule of remaining contractual maturities of repurchase agreements	The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of September 30, 2015, disaggregated by the class of collateral pledged. Overnight & September 30, 2015 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 24,936 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 24,936

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Numerator - Net income available to common shareholders	$ 2,719	$ 2,726	$ 8,038	$ 7,585
Denominator - Weighted average common shares outstanding	4,808,352	4,934,895	4,852,628	4,977,091
Basic net income per common share available to common shareholders	$ 0.57	$ 0.55	$ 1.66	$ 1.52

RECLASSIFICATIONS FROM ACCUMU23

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain on sale of securities			$ (1,552)		$ (5,517)
Tax (expense) benefit	$ (925)	$ (1,031)	(2,578)	$ (2,685)
Net income available for common shareholders	2,719	2,726	8,038	7,585
Total Reclassifications Out of AOCI [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain on sale of securities	108	26	323	421
Total Reclassifications Out of AOCI [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain on sale of securities	135	(7)	405	540
Tax (expense) benefit	(52)	3	(156)	(208)
Net income available for common shareholders	83	(4)	249	332
Total Reclassifications Out of AOCI [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassified amount before tax and noncontrolling interest	39	48	122	145
Tax (expense) benefit	(14)	(18)	(48)	(56)
Net income available for common shareholders	$ 25	$ 30	$ 74	$ 89

RECLASSIFICATIONS FROM ACCUMU24

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Reclassifications From Accumulated Other Comprehensive Income Aoci Details 1
Net unrealized losses on available-for-sale securities	$ (1,552)	$ (5,517)
Net actuarial gain on unfunded portion of postretirement benefit obligation	1,939	2,062
Net unrealized losses on available-for-sale securities before tax	387	(3,455)
Income tax (benefit) expense	(148)	1,329
Accumulated other comprehensive income (loss)	$ 239	$ (2,126)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 403,366	$ 397,886
US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	150,837	159,254
U.S. Government Sponsored Agency Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	157,855	167,970
States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	71,596	52,882
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	23,078	17,780
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	403,366	397,886
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale		397,886
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	403,366
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	150,837	159,254
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	71,596	52,882
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	23,078	17,780
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Sponsored Agency Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 157,855	$ 167,970

FAIR VALUE MEASUREMENTS (Deta26

FAIR VALUE MEASUREMENTS (Details 1) - Impaired Loans [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value at the end of the period		$ 920	$ 1,184
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value at the end of the period		$ 920	$ 1,184
Fair Value Measurements, Valuation Techniques	[1]	Discounted appraisals	Discounted appraisals
Fair Value Measurements Unobservable Input	[2]	Appraisal adjustments	Appraisal adjustments
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)		33.00%	7.00%	[3]
Fair Value, Inputs, Level 3 [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)			5.00%
Fair Value, Inputs, Level 3 [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)			10.00%
[1]	Fair value is generally based on appraisals of the underlying collateral.
[2]	Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and other relevant information based on the type of collateral.
[3]	Ranges presented as a percentage of the non-discounted appraisals.

FAIR VALUE MEASUREMENTS (Deta27

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financial assets
Cash and due from banks	$ 20,302	$ 18,511
Interest-bearing deposits in other banks	8,956	10,086
Securities available-for-sale	403,366	397,886
Securities held-to-maturity	3,240	$ 22,263
Financial liabilities
Federal funds purchased	11,515
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks	20,302	$ 18,511
Interest-bearing deposits in other banks	$ 8,956	10,086
Federal funds sold		$ 1,700
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		$ 204,358
Interest bearing deposits
Repurchase agreements
Accrued interest payable
Federal funds purchased	$ 11,515
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit
Fair Value, Inputs, Level 2 [Member]
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	403,366	397,886
Securities held-to-maturity	3,240	22,263
Loans held for sale	$ 881	$ 354
Loans, net
Accrued interest receivable	$ 4,968	$ 4,337
Financial liabilities
Non-interest bearing deposits
Interest bearing deposits		$ 816,022
Repurchase agreements	$ 24,936	22,834
Accrued interest payable	$ 511	$ 613
Federal funds purchased
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit
Fair Value, Inputs, Level 3 [Member]
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	$ 718,950	$ 650,770
Accrued interest receivable
Financial liabilities
Non-interest bearing deposits	$ 223,380
Interest bearing deposits	$ 837,797
Repurchase agreements
Accrued interest payable
Federal funds purchased
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit
Carrying Value Measurement [Member]
Financial assets
Cash and due from banks	$ 20,302	$ 18,511
Interest-bearing deposits in other banks	8,956	10,086
Federal funds sold		1,700
Federal Home Loan Bank and Federal Reserve Bank stock	3,879	3,879
Securities available-for-sale	403,366	397,886
Securities held-to-maturity	3,210	21,985
Loans held for sale	881	354
Loans, net	718,950	644,118
Accrued interest receivable	4,968	4,337
Financial liabilities
Non-interest bearing deposits	223,380	204,358
Interest bearing deposits	837,821	815,597
Repurchase agreements	24,936	22,834
Accrued interest payable	511	$ 613
Federal funds purchased	$ 11,515
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Available-For-Sale Securities
Amortized Cost	$ 404,918	$ 403,403
Gross Unrealized Gains	2,164	1,901
Gross Unrealized Losses	(3,716)	(7,418)
Fair Value	403,366	397,886
Held-to-maturity securities
Amortized Cost	3,210	21,985
Fair Value	3,240	22,263
US Government Agencies [Member]
Available-For-Sale Securities
Amortized Cost	151,100	162,289
Gross Unrealized Gains	540	50
Gross Unrealized Losses	(803)	(3,085)
Fair Value	150,837	159,254
U.S. Government Sponsored Agency Mortgage Backed Securities [Member]
Available-For-Sale Securities
Amortized Cost	160,313	172,035
Gross Unrealized Gains	106	64
Gross Unrealized Losses	(2,564)	(4,129)
Fair Value	157,855	167,970
States and Political Subdivisions [Member]
Available-For-Sale Securities
Amortized Cost	70,482	51,374
Gross Unrealized Gains	1,423	1,658
Gross Unrealized Losses	(309)	(150)
Fair Value	71,596	52,882
Held-to-maturity securities
Amortized Cost	3,210	21,985
Gross Unrealized Gains	$ 30	$ 278
Gross Unrealized Losses
Fair Value	$ 3,240	$ 22,263
Corporate Bonds [Member]
Available-For-Sale Securities
Amortized Cost	23,023	17,705
Gross Unrealized Gains	95	129
Gross Unrealized Losses	(40)	(54)
Fair Value	$ 23,078	$ 17,780

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value
Less than 12 months	$ 69,074	$ 87,638
12 months or Greater	152,160	238,375
Total	221,234	326,013
Unrealized Losses
Less than 12 months	(648)	(455)
12 months or Greater	(3,068)	(6,963)
Total	(3,716)	(7,418)
US Government Agencies [Member]
Fair Value
Less than 12 months	9,946	46,977
12 months or Greater	55,406	104,815
Total	65,352	151,792
Unrealized Losses
Less than 12 months	(31)	(219)
12 months or Greater	(772)	(2,866)
Total	(803)	(3,085)
U.S. Government Sponsored Agency Mortgage Backed Securities [Member]
Fair Value
Less than 12 months	27,016	21,339
12 months or Greater	94,680	128,935
Total	121,696	150,274
Unrealized Losses
Less than 12 months	(291)	(77)
12 months or Greater	(2,273)	(4,052)
Total	(2,564)	(4,129)
States and Political Subdivisions [Member]
Fair Value
Less than 12 months	24,137	14,539
12 months or Greater	462	1,418
Total	24,599	15,957
Unrealized Losses
Less than 12 months	(299)	(142)
12 months or Greater	(10)	(8)
Total	(309)	(150)
Corporate Bonds [Member]
Fair Value
Less than 12 months	7,975	4,783
12 months or Greater	1,612	3,207
Total	9,587	7,990
Unrealized Losses
Less than 12 months	(27)	(17)
12 months or Greater	(13)	(37)
Total	$ (40)	$ (54)

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortized Cost
Within one year	$ 4,668	$ 2,464
One to five years	112,539	91,208
Five to ten years	88,463	112,329
After ten years	38,935	25,367
Mortgage-backed securities	160,313	172,035
Total	404,918	403,403
Estimated Fair Value
Within one year	4,694	2,481
One to five years	113,057	90,775
Five to ten years	88,477	110,508
After ten years	39,283	26,152
Mortgage-backed securities	157,855	167,970
Total	403,366	397,886
Amortized Cost
Within one year	475	6,354
One to five years	983	3,558
Five to ten years	$ 1,752	$ 12,073
After ten years
Mortgage-backed securities
Total	$ 3,210	$ 21,985
Estimated Fair Value
Within one year	476	6,446
One to five years	1,000	3,601
Five to ten years	$ 1,764	$ 12,216
After ten years
Mortgage-backed securities
Fair Value	$ 3,240	$ 22,263

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Securities Details 3
Gross gains recognized on sales of securities	$ 135	$ 21	$ 450	$ 626
Gross losses recognized on sales of securities		(28)	(45)	(86)
Net realized gains on sales of securities available-for-sale	$ 135	$ (7)	$ 405	$ 540

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Available for Sale Securities and Held to Maturity Securities Continuous Unrealized Loss Position Fair Value	$ 221,234	$ 326,013
Available-for-sale and held-to-maturity of investment portfolio (in percent)	54.00%	78.00%
Unrealized loss on securities	$ 3,700
Available for Sale and Held to Maturity Securities Pledged as Collateral	249,900	$ 217,200
Pledged securities in excess of pledging requirements	29,700	20,100
Assets Sold under Agreements to Repurchase, Carrying Amount	$ 35,300	$ 35,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2015		Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 727,535			$ 652,052	$ 616,966
Allowance for possible loan losses	(8,585)		$ (8,593)	(7,934)	(8,257)	$ (8,635)	$ (8,595)
Total net loans	718,950			644,118
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	131,116			99,788
Non Farm, Non Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	161,091			163,461
Construction and Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	49,306			50,424
Commercial Loans Secured By Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	32,562			27,937
Other Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	55,701			41,185
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	429,776			382,795	350,709
Allowance for possible loan losses	(7,393)		(7,384)	(6,719)	(7,056)	(7,395)	(7,359)
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	9,267			9,536
Single Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	254,462	[1]		229,148	226,994
Allowance for possible loan losses	(1,029)		$ (1,045)	(1,053)	$ (1,046)	$ (1,082)	$ (1,084)
Other Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	34,030			30,162
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 297,759			$ 269,257
[1]	Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015		Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 2,022		$ 7,404
Current	725,513		644,647
Total loans	727,535		652,052	$ 616,966
30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	889		3,210
60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,249		666
90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	543		3,528
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	31		121
Current	9,236		9,415
Total loans	9,267		9,536
Consumer Loans [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	24		72
Consumer Loans [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5		7
Consumer Loans [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2		42
Single Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	969		3,220
Current	253,493		226,339
Total loans	254,462	[1]	229,148	226,994
Single Family Residential [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	276		2,361
Single Family Residential [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	484		395
Single Family Residential [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	209		464
Other Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	66
Current	33,964		30,162
Total loans	34,030		30,162
Other Retail [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	19
Other Retail [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	47
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,066		3,341
Current	296,693		265,916
Total loans	297,759		269,257
Retail [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	319		2,433
Retail [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	536		402
Retail [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	211		506
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	600		1,754
Current	130,516		98,034
Total loans	131,116		99,788
Commercial and Industrial [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	561		263
Commercial and Industrial [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			63
Commercial and Industrial [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	39		1,428
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	126		888
Current	160,965		162,573
Total loans	161,091		163,461
Non Farm, Non Residential Real Estate [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			413
Non Farm, Non Residential Real Estate [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			145
Non Farm, Non Residential Real Estate [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	126		330
Construction and Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1
Current	49,305		50,424
Total loans	49,306		50,424
Construction and Development [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	229		319
Current	32,333		27,617
Total loans	32,562		27,937
Commercial Loans Secured By Real Estate [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	8		91
Commercial Loans Secured By Real Estate [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	54		56
Commercial Loans Secured By Real Estate [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	167		172
Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			1,102
Current	55,701		40,083
Total loans	55,701		41,185
Other Commercial [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			10
Other Commercial [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			1,092
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	956		4,064
Current	428,820		378,731
Total loans	429,776		382,795	$ 350,709
Commercial [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	570		777
Commercial [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	54		264
Commercial [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 332		$ 3,022
[1]	Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 2,370	$ 11,693	$ 11,308
Recorded Investment With No Allowance	1,006	8,674	8,581
Recorded Investment With Allowance	1,159	1,332	822
Total Recorded Investment	2,165	10,006	9,403
Related Allowance	173	335	52
Average Recorded Investment	2,078	10,259	9,952
Interest Received	79	398	527
Interest Accrued	94	489	641
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	352	2,819	3,760
Recorded Investment With No Allowance	61	1,745	2,734
Recorded Investment With Allowance	245	444	217
Total Recorded Investment	306	2,189	2,951
Related Allowance	30	163	9
Average Recorded Investment	326	2,246	3,230
Interest Received	11	39	97
Interest Accrued	13	122	207
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	399	3,874	3,720
Recorded Investment With No Allowance	365	3,413	3,241
Total Recorded Investment	365	3,413	3,241
Average Recorded Investment	383	3,648	3,570
Interest Received	10	161	213
Interest Accrued	15	163	212
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	194		1,053
Recorded Investment With No Allowance			564
Recorded Investment With Allowance	167		166
Total Recorded Investment	167		730
Related Allowance	29		33
Average Recorded Investment	171		826
Interest Received	3		67
Interest Accrued	10		77
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	945	9,564	9,789
Recorded Investment With No Allowance	412	7,610	7,631
Recorded Investment With Allowance	426	613	383
Total Recorded Investment	838	8,223	8,014
Related Allowance	59	190	42
Average Recorded Investment	880	8,696	8,797
Interest Received	24	330	466
Interest Accrued	38	417	580
Single Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,409	2,129	1,094
Recorded Investment With No Allowance	594	1,064	539
Recorded Investment With Allowance	718	719	439
Total Recorded Investment	1,312	1,783	978
Related Allowance	114	145	10
Average Recorded Investment	1,183	1,563	786
Interest Received	54	68	44
Interest Accrued	56	72	42
Other Retail [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	16		425
Recorded Investment With No Allowance	15		411
Total Recorded Investment	15		411
Average Recorded Investment	15		369
Interest Received	1		17
Interest Accrued			19
Retail [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,425	2,129	1,519
Recorded Investment With No Allowance	594	1,064	950
Recorded Investment With Allowance	733	719	439
Total Recorded Investment	1,327	1,783	1,389
Related Allowance	114	145	10
Average Recorded Investment	1,198	1,563	1,155
Interest Received	55	68	61
Interest Accrued	$ 56	72	61
Other Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance		2,871	1,256
Recorded Investment With No Allowance		2,452	1,092
Recorded Investment With Allowance		169
Total Recorded Investment		2,621	1,092
Related Allowance		27
Average Recorded Investment		2,802	1,171
Interest Received		130	89
Interest Accrued		$ 132	$ 84

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 1,985	$ 5,380
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	15	42
Single Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,132	2,237
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,147	2,279
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	306	1,428
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	365	409
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	167	172
Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total		1,092
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 838	$ 3,101

LOANS (Details 4)

LOANS (Details 4) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)Number	Sep. 30, 2014USD ($)Number	Sep. 30, 2015USD ($)Number	Sep. 30, 2014USD ($)Number	Dec. 31, 2014USD ($)Number
Financing Receivable, Modifications [Line Items]
Number of loans | Number	1	1	2	2	2
Post-modification outstanding balance	$ 78	$ 321	$ 111	$ 4,678	$ 4,673
Net charge-offs resulting from modifications				$ 3	$ 3
Single Family Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Number	1		2	1	1
Post-modification outstanding balance	$ 78		$ 111	$ 321	$ 316
Net charge-offs resulting from modifications				$ 3	$ 3
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Number		1		1	1
Post-modification outstanding balance		$ 321		$ 4,357	$ 4,357

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands		Sep. 30, 2015		Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 727,535		$ 652,052	$ 616,966
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		131,116		99,788
Commercial and Industrial [Member] | Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,302		1,004
Commercial and Industrial [Member] | Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		3,810		3,908
Commercial and Industrial [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		52,722		47,047
Commercial and Industrial [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		68,320		42,116
Commercial and Industrial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		4,639		3,143
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		323		2,570
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		161,091		163,461
Non Farm, Non Residential Real Estate [Member] | Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		319		466
Non Farm, Non Residential Real Estate [Member] | Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		300		314
Non Farm, Non Residential Real Estate [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		47,260		46,784
Non Farm, Non Residential Real Estate [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		100,753		101,809
Non Farm, Non Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		11,547		9,763
Non Farm, Non Residential Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		637		3,367
Non Farm, Non Residential Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		275		958
Construction and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		49,306		50,424
Construction and Development [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		19,528		18,903
Construction and Development [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		29,211		29,808
Construction and Development [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		567		1,713
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		32,562		27,937
Commercial Loans Secured By Real Estate [Member] | Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		106		113
Commercial Loans Secured By Real Estate [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,548		4,700
Commercial Loans Secured By Real Estate [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		29,282		21,682
Commercial Loans Secured By Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		487		1,115
Commercial Loans Secured By Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		95		327
Commercial Loans Secured By Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		44
Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		55,701		41,185
Other Commercial [Member] | Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		95		1
Other Commercial [Member] | Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		44,234		30,408
Other Commercial [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		6,455		5,712
Other Commercial [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		4,755		3,802
Other Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans				1,092
Other Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		162		170
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		429,776		382,795	350,709
Commercial [Member] | Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,822		1,584
Commercial [Member] | Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		48,344		34,630
Commercial [Member] | Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		128,513		123,146
Commercial [Member] | Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		232,321		199,217
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		17,240		15,734
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,055		7,356
Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		481		1,128
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		9,267		9,536
Consumer Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		9,252		9,494
Consumer Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	15		42
Single Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		254,462	[2]	229,148	$ 226,994
Single Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[2]	252,506		226,637
Single Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1],[2]	1,956		2,922
Other Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		34,030		30,162
Other Retail [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		33,981		29,683
Other Retail [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	49		479
Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		297,759		269,257
Retail [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		295,739		265,814
Retail [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	$ 2,020		$ 3,443
[1]	Loans are classified as nonperforming loans and are automatically placed on nonaccrual status once they reach 90 days past due. For the purposes of this table all nonperforming loans are included in risk rating 7.
[2]	Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).

LOANS (Details 6)

LOANS (Details 6) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended			12 Months Ended
	Sep. 30, 2015		Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014	Dec. 31, 2014
Activity in the ALLL
Beginning Balance	$ 8,593		$ 8,635	$ 7,934		$ 8,595	$ 8,595
Less: Charge-offs	(25)		(413)	(47)		(423)	(791)
Add: Recoveries	17		35	698		85	130
Ending Balance	8,585		8,257	8,585		8,257	7,934
Amount of the ALLL allocated
Loans individually evaluated for impairment	173		335	173		335	52
Loans collectively evaluated for impairment	8,412		7,922	8,412		7,922	7,882
Ending Balance	8,585		8,257	8,585		8,257	7,934
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment	2,165		10,006	2,165		10,006	9,403
Loans collectively evaluated for impairment	725,370		606,960	725,370		606,960	642,649
Ending Balance	727,535		616,966	727,535		616,966	652,052
Commercial [Member]
Activity in the ALLL
Beginning Balance	7,384		7,395	6,719		7,359	7,359
Less: Charge-offs			(372)			(372)	(739)
Add: Recoveries	9		33	674		69	99
Ending Balance	7,393		7,056	7,393		7,056	6,719
Amount of the ALLL allocated
Loans individually evaluated for impairment	59		190	59		190	42
Loans collectively evaluated for impairment	7,334		6,866	7,334		6,866	6,677
Ending Balance	7,393		7,056	7,393		7,056	6,719
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment	838		8,223	838		8,223	8,014
Loans collectively evaluated for impairment	428,938		342,486	428,938		342,486	374,781
Ending Balance	429,776		350,709	429,776		350,709	382,795
Single Family Residential [Member]
Activity in the ALLL
Beginning Balance	1,045		1,082	1,053		1,084	1,084
Less: Charge-offs	(18)		(37)	(34)		(41)	(41)
Add: Recoveries	2		1	10		3	10
Ending Balance	1,029		1,046	1,029		1,046	1,053
Amount of the ALLL allocated
Loans individually evaluated for impairment	114		145	114		145	10
Loans collectively evaluated for impairment	915		901	915		901	1,043
Ending Balance	1,029		1,046	1,029		1,046	1,053
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment	1,312		1,783	1,312		1,783	978
Loans collectively evaluated for impairment	253,150		225,211	253,150		225,211	228,170
Ending Balance	254,462	[1]	226,994	254,462	[1]	226,994	229,148
Consumer and Other Retail Portfolio Segment [Member]
Activity in the ALLL
Beginning Balance	164		158	162		152	152
Less: Charge-offs	(7)		(4)	(13)		(10)	(11)
Add: Recoveries	6		1	14		13	21
Ending Balance	163		155	163		155	162
Amount of the ALLL allocated
Loans collectively evaluated for impairment	163		155	163		155	162
Ending Balance	163		155	163		155	162
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment	15			15			411
Loans collectively evaluated for impairment	43,282		39,263	43,282		39,263	39,698
Ending Balance	$ 43,297		$ 39,263	$ 43,297		$ 39,263	$ 40,109
[1]	Single family residential loans includes first mortgages, closed-end second mortgages, residential construction loans, and home equity lines of credit (HELOC's).

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Capitalized fees and costs	$ 1,100	$ 976
Commercial real estate loans secured by owner-occupied properties	46.00%
Financing Receivable Period of Loans Past Due Transferred to Non Accrual Status	90 days
Loans and Leases Receivable Loan to Value Ratio Maximum	80.00%
Non accrual loans	$ 1,985	5,380
90 days and greater past due [Member]
Non accrual loans	$ 143	$ 97

SECURITIES SOLD UNDER AGREEME41

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) $ in Thousands	Sep. 30, 2015USD ($)
Class of collateral pledged	$ 24,936
US Government Agencies [Member]
Class of collateral pledged	$ 24,936
U.S. Government Sponsored Agency Mortgage Backed Securities [Member]
Class of collateral pledged
States and Political Subdivisions [Member]
Class of collateral pledged
Corporate Bonds [Member]
Class of collateral pledged