First Farmers and Merchants (FFMH) 10-K 1 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	FIRST FARMERS & MERCHANTS CORP
Entity Central Index Key	703,329
Document Type	10-K
Document Period End Date	Dec. 31, 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 Public Float			$ 113,100
Entity Common Stock, Shares Outstanding		4,739,502
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 19,453	$ 18,511
Interest-bearing deposits	18,299	10,086
Federal funds sold	24,476	1,700
Total cash and cash equivalents	62,228	30,297
Securities:
Available-for-sale	395,019	397,886
Held-to-maturity (fair market value $4,089 and $22,263 as of December 31, 2015 and December 31, 2014, respectively)	4,059	21,985
Total securities	399,078	419,871
Loans, net of deferred fees	731,266	652,052
Allowance for loan and lease losses	(8,634)	(7,934)
Net loans	722,632	644,118
Bank premises and equipment, net	25,518	25,773
Other real estate owned	62	5
Bank owned life insurance	26,552	26,176
Goodwill	9,018	9,018
Other assets	15,222	15,737
TOTAL ASSETS	1,260,310	1,170,995
Deposits:
Noninterest-bearing	239,226	204,358
Interest-bearing	864,575	815,597
Total deposits	1,103,801	1,019,955
Securities sold under agreements to repurchase	24,177	22,834
Accounts payable and accrued liabilities	14,542	13,622
TOTAL LIABILITIES	$ 1,142,520	$ 1,056,411
Commitments and contingencies (Note 11)
SHAREHOLDERS' EQUITY
Common stock - $10 par value per share, 8,000,000 shares authorized; 4,739,502 and 4,900,576 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively	$ 47,395	$ 49,006
Retained earnings	71,583	67,609
Accumulated other comprehensive loss	(1,283)	(2,126)
TOTAL SHAREHOLDERS' EQUITY BEFORE NONCONTROLLING INTEREST - PREFERRED STOCK OF SUBSIDIARY	117,695	114,489
Noncontrolling interest - preferred stock of subsidiary	95	95
TOTAL SHAREHOLDERS' EQUITY	117,790	114,584
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,260,310	$ 1,170,995

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
Held-to-maturity securities, fair value	$ 4,089	$ 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	4,739,502	4,900,576
Common Stock, shares outstanding	4,739,502	4,900,576

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 30,522	$ 28,300	$ 28,653
Income on investment securities
Taxable interest	5,713	5,738	5,501
Exempt from federal income tax	2,218	2,473	2,913
Dividends	229	269	294
Total interest income	38,682	36,780	37,361
INTEREST EXPENSE
Interest on deposits	2,131	2,358	2,694
Interest on other borrowings	94	70	213
Total interest expense	2,225	2,428	2,907
Net interest income	36,457	$ 34,352	$ 34,454
Provision for loan and lease losses	30
Net interest income after provision	36,427	$ 34,352	$ 34,454
NON-INTEREST INCOME
Gains on loans sold	270	294	437
Trust department income	2,530	2,491	2,298
Service fees on deposit accounts	6,616	6,470	6,479
Brokerage fees	540	410	361
Earnings on bank owned life insurance	376	398	497
Gain on sales of available-for-sale securities	534	652	829
Gain (loss) on foreclosed property	33	516	(308)
Other non-interest income	544	496	523
Total non-interest income	11,443	11,727	11,116
NON-INTEREST EXPENSE
Salaries and employee benefits	18,897	17,557	18,331
Net occupancy expense	2,192	2,032	2,581
Depreciation expense	1,489	1,441	1,397
Data processing expense	2,506	2,321	2,288
Legal and professional fees	1,301	860	1,037
Stationary and office supplies	289	304	293
Advertising and promotions	1,163	1,352	1,090
FDIC insurance premium expense	587	589	728
Other real estate expense	3	68	128
Other non-interest expense	5,772	5,741	5,370
Total non-interest expenses	34,199	32,265	33,243
Income before provision for income taxes	13,671	13,814	12,327
Provision for income taxes	3,349	3,556	2,700
Net income before noncontrolling interest - dividends on preferred stock of subsidiary	10,322	10,258	9,627
Noncontrolling interest-dividends on preferred stock subsidiary	16	16	16
Net income for common shareholders	$ 10,306	$ 10,242	$ 9,611
Weighted average shares outstanding	4,832,217	4,963,826	5,110,849
Earnings per share	$ 2.13	$ 2.06	$ 1.88

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income for common shareholders	$ 10,306	$ 10,242	$ 9,611
Other comprehensive income (loss)
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of $685, $4,742, and ($8,507) respectively	1,097	7,571	(13,589)
Reclassification adjustment for realized gains included in net income, net of taxes of ($206), ($251) and ($319), respectively	(328)	(401)	(510)
Change in unfunded portion of post-retirement benefit obligations, net of taxes of $47, ($185) and $2,102 respectively	74	(295)	3,360
Other comprehensive income (loss)	843	6,875	(10,739)
Total comprehensive income (loss)	$ 11,149	$ 17,117	$ (1,128)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Unrealized holding gains (losses) on securities, net of tax expense (benefit)	$ 685	$ 4,742	$ (8,507)
Reclassification adjustment for realized gains included in net income	47	(185)	2,102
Reclassification adjustment for realized gains included in net income	$ 206	$ 251	$ 319

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Preferred Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2012	$ 51,800	$ 95	$ 59,162	$ 1,738	$ 112,795
Balance (in shares) at Dec. 31, 2012	5,180,000
Net income before dividends on preferred stock of subsidiary			9,627		9,627
Other comprehensive income				(10,739)	(10,739)
Repurchase of common stock	$ (1,590)		(2,132)		(3,722)
Repurchase of common stock (in shares)	(158,988)
Cash dividends declared, $0.74 per share			(3,741)		(3,741)
Cash dividends - preferred stock of subsidiary			(16)		(16)
Balance at Dec. 31, 2013	$ 50,210	95	62,900	(9,001)	104,204
Balance (in shares) at Dec. 31, 2013	5,021,012
Net income before dividends on preferred stock of subsidiary			10,258		10,258
Other comprehensive income				6,875	6,875
Repurchase of common stock	$ (1,204)		(1,893)		(3,097)
Repurchase of common stock (in shares)	(120,436)
Cash dividends declared, $0.74 per share			(3,640)		(3,640)
Cash dividends - preferred stock of subsidiary			(16)		(16)
Balance at Dec. 31, 2014	$ 49,006	95	67,609	(2,126)	114,584
Balance (in shares) at Dec. 31, 2014	4,900,576
Net income before dividends on preferred stock of subsidiary			10,322		10,322
Other comprehensive income				843	843
Repurchase of common stock	$ (1,611)		(2,797)		(4,408)
Repurchase of common stock (in shares)	(161,074)
Cash dividends declared, $0.74 per share			(3,535)		(3,535)
Cash dividends - preferred stock of subsidiary			(16)		(16)
Balance at Dec. 31, 2015	$ 47,395	$ 95	$ 71,583	$ (1,283)	$ 117,790
Balance (in shares) at Dec. 31, 2015	4,739,502

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Dividends declared per share	$ 0.74	$ 0.74	$ 0.74

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income available for common shareholders	$ 10,306	$ 10,242	$ 9,611
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan and lease losses	30
Depreciation of premises and equipment	1,489	$ 1,441	$ 1,543
Deferred tax benefit expense	614	545	1,785
Net gains on sales of available-for-sale securities	(534)	(652)	(829)
Gains on loans sold	(270)	(294)	(437)
Proceeds from sale of mortgage loans held for sale	15,455	13,105	21,047
Funding of mortgage loans held for sale	(14,831)	(12,838)	(18,481)
(Gain) loss on other real estate owned	$ (33)	$ (516)	308
Gain on sale of assets			38
Amortization of investment security premiums, net of accretion of discounts	$ 1,196	$ 1,100	1,312
Increase in cash surrender value of life insurance contracts	(376)	(398)	(497)
Changes in:
Other assets	821	(8)	1,243
Other liabilities	(701)	435	143
Net cash provided by operating activities	13,166	12,162	16,786
INVESTING ACTIVITIES
Proceeds from sales of available-for-sale securities	79,119	47,798	137,150
Proceeds from maturities and calls of available-for-sale securities	31,967	30,072	44,908
Proceeds from maturities and calls of held-to-maturity securities	19,940	5,398	3,890
Purchases of available-for-sale investment securities	(107,655)	$ (134,373)	$ (189,436)
Purchases of held-to-maturity investment securities	(1,991)
Net increase in loans	(78,634)	$ (45,952)	$ (38,267)
Proceeds from sale of other real estate owned	$ 66	$ 1,466	2,378
Proceeds from sale of assets			799
Purchases of premises and equipment	$ (1,234)	$ (2,346)	(831)
Purchase of life insurance policies		(175)	$ (258)
Proceeds from redemption of life insurance policy		264
Net cash used in investing activities	$ (58,422)	(97,848)	$ (39,667)
FINANCING ACTIVITIES
Net increase in deposits	83,846	62,618	24,488
Net increase in securities sold under agreements to repurchase	$ 1,343	$ 4,739	1,027
Payments to FHLB borrowings			(10,100)
Repurchase of common stock	$ (4,408)	$ (3,097)	(3,722)
Cash dividends paid on common stock	(3,594)	(3,685)	(3,800)
Net cash provided by financing activities	77,187	60,575	7,893
Increase (decrease) in cash and cash equivalents	31,931	(25,111)	(14,988)
Cash and cash equivalents at beginning of period	30,297	55,408	70,396
Cash and cash equivalents at end of period	62,228	30,297	55,408
Supplemental disclosures of cash flow information:
Interest on deposits and borrowed funds	2,335	2,479	2,816
Income taxes	$ 3,241	$ 3,094	2,072
Loans to facilitate sale of other real estate owned			1,905
Real estate acquired in settlement of loans	$ 90	$ 5	$ 312

GENERAL AND SUMMARY OF SIGNIFIC

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies The accounting principles followed and the methods of applying those principles conform with accounting principles generally accepted in the United States (“GAAP”) and to general practices in the banking industry. The significant accounting policies applicable to First Farmers and Merchants Corporation (the “Company”) are summarized as follows. Nature of Operations The Company is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, First Farmers and Merchants Bank (the “Bank”). The Bank is primarily engaged in providing a full range of banking and financial services, including lending, investing of funds, obtaining deposits, trust and wealth management operations, and other financing activities to individual and corporate customers in the Middle Tennessee area. The Bank is subject to competition from other financial institutions. The Company and Bank are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. On November 20, 2015, the Company announced its Board of Directors approved a corporate reorganization plan (the “Plan”) providing for the termination of the Company’s reporting obligations under the Securities Exchange Act of 1934 (the “Exchange Act”). Under the Plan, holders of fewer than 400 shares of Company common stock will receive cash in exchange for their shares in an amount determined based on a valuation by an independent third party. Shareholders owning 400 or more shares will be unaffected by the Plan. The Plan will be considered by its shareholders at the Company’s 2016 annual meeting. Basis of Presentation The accompanying consolidated financial statements present the accounts of the Company and its wholly-owned subsidiary, First Farmers and Merchants Bank. The Bank has the following direct and indirect subsidiaries: F&M West, Inc., Maury Tenn, Inc., and Maury Tenn Properties, Inc. Noncontrolling interests consist of preferred shares in Maury Tenn Properties, Inc. that are owned by third parties and Maury Tenn, Inc. The preferred shares in Maury Tenn Properties, Inc. receive dividends, which are included in the consolidated statements of income. Intercompany accounts and transactions have been eliminated in consolidation. Certain items in prior financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on net income. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management of the Company and the Bank to make estimates and assumptions that affect the reported amounts of assets and liabilities. Those estimates and assumptions also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan and lease losses, the fair value of financial instruments, the valuation of foreclosed real estate, valuation of goodwill, valuation of deferred tax assets and the liability related to post-retirement benefits. Concentrations of Credit Risk The Company’s banking activities include granting commercial, residential, and consumer loans to customers primarily located in Middle Tennessee and northern Alabama. The Company manages its portfolio and product mix in a manner to reduce economic risk. Concentrations of credit, as defined for regulatory purposes, are reviewed quarterly by management to ensure that internally established limits are not exceeded. At December 31, 2015, our concentrations of commercial real estate, rental and leasing loans were 130.1% of Tier 1 Capital plus the allowance for loan and lease losses. Health care and social assistance loans were 39.1%. Construction loans were 46.6%. Construction loans were 27.7%. Wholesale trade credits were 28.0%. These percentages are within our internally established limits regarding concentrations of credit. Loans secured by non-farm, non-residential real estate comprised 22.0% of the loan portfolio at December 31, 2015. Management remains comfortable with the real estate exposure levels within the commercial loan portfolio. Management believes the commercial real estate portion remains well diversified across several different property types and several different geographic markets. Cash and Due From Banks Included in cash and due from banks are reserve amounts that are required to be maintained in the form of cash and/or balances due from the Federal Reserve Bank and other banks. At December 31, 2015, the Bank’s required reserve was $2.4 million at the Federal Reserve. From time to time throughout the year, the Bank’s balances due from other financial institutions exceeded Federal Deposit Insurance Corporation (FDIC) insurance limits. The Bank had $24.5 million of federal funds sold as of December 31, 2015. Federal funds sold are essentially uncollateralized loans to other financial institutions. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents include cash on hand, cash due from banks and federal funds sold. Federal funds are sold for one-day periods. Securities Certain debt securities that management has the intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost which the Company does not intend to sell, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. If declines in fair value are other-than-temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. For available-for-sale and held-to-maturity debt securities that management has no intent to sell and believes that the Company more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security based on cash flow projections. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff is reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan and lease losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Discounts and premiums on purchased commercial loans are amortized to income using the interest method over the remaining period to contractual maturity and adjusted for anticipated prepayments. Allowance for Loan and Lease Losses The allowance for loan and lease losses is established through provisions for loan and lease losses charged against income. Loan losses are charged against the allowance when management determines that the uncollectibility of a loan has been confirmed. Subsequent recoveries, if any, are credited to the allowance account in the period received. The adequacy of the allowance for loan and lease losses is evaluated quarterly in conjunction with loan review reports and evaluations that are discussed in meetings with loan officers, credit administration and the Bank’s Board of Directors. The Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors are considered in this evaluation. This process is inherently subjective as it requires material estimates that are susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. The allowance for loan and lease losses is maintained at a level believed by management to be adequate to absorb estimated losses inherent in the loan portfolio. Allowance for Loan and Lease Losses, (continued) A loan is considered impaired when it is probable that the Bank will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to the Bank, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell the collateral then transferred to other real estate owned or other repossessed assets. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off upon reaching no later than 120 days (4 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 Bank, a charge-off is taken with the remaining balance, reflecting the fair value less estimated costs to sell, transferred to other real estate owned. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. The Company does not retain servicing rights on loans sold. There were no loans held for sale at December 31, 2015. Loans held for sale at December 31, 2014 totaled $354,000. Other Real Estate Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. When foreclosed properties are acquired current appraisals are obtained on the properties. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected selling costs. Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 24 months. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. The provision for depreciation is computed principally on an accelerated method over the estimated useful life of an asset, which ranges from 15 to 39 years for buildings and from three to 25 years for equipment. Costs of major additions and improvements are capitalized. Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses from the disposition of property are reflected in operations, and the asset accounts and related allowances for depreciation are reduced. Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. At December 31, 2015 and 2014 Federal Reserve and Federal Home Loan Bank stock totaled $3.9 million. Goodwill Goodwill is evaluated annually for impairment. Quantitative and qualitative assessments are performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company files consolidated income tax returns with its subsidiaries. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal tax examinations and state and local tax examinations by tax authorities for years before 2012. The Company recognizes interest and penalties on income taxes as a component of income tax expense. As of December 31, 2015, the Company has accrued no interest and no penalties related to uncertain tax positions. Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. Fair Value Measurements Financial Accounting Standards Board (“FASB”) ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. See Note 12 – Fair Value Measurement. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as input, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Earnings Per Share Earnings per share represents income available to shareholders divided by the weighted average number of shares of Company common stock outstanding during the period. Fully diluted earnings per share is not presented as there are no common stock equivalents. The following is a summary of the earnings per share calculation for the periods presented: Years ended December 31, 2015 2014 2013 (dollars in thousands, expect per share data) Earnings per share calculation: Numerator – Net income available to common shareholders $ 10,306 $ 10,242 $ 9,611 Denominator – Weighted average common shares outstanding 4,832,217 4,963,826 5,110,849 Net income per common share available to common shareholders $ 2.13 $ 2.06 $ 1.88 In 2015, the Company renewed a plan to repurchase shares of its common stock. The plan allowed the purchase of up to 200,000 shares. The Company purchased 161,074, 120,436, and 158,988 shares in 2015, 2014, and 2013, respectively. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss), net of applicable income tax expenses or benefits. Other comprehensive income (loss) includes unrealized appreciation or depreciation on available-for-sale securities and changes in the net actuarial gain or loss of the post-retirement benefit obligation. The components of accumulated other comprehensive loss, included in shareholder’s equity, are as follows: Years ended December 31, 2015 2014 2013 (dollars in thousands) Net unrealized losses on available-for-sale securities $ (4,269 ) $ (5,517 ) $ (17,178 ) Net actuarial gain on unfunded portion of post-retirement benefit obligation 2,183 2,062 2,542 (2,086 ) (3,455 ) (14,636 ) Tax benefit 803 1,329 5,635 Accumulated other comprehensive loss $ (1,283 ) $ (2,126 ) $ (9,001 ) Transfers Between Fair Value Hierarchy Levels Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period end date. Segment Reporting Management analyzes the operations of the Company assuming one operating segment, community lending services. Recent Accounting Pronouncements 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) ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-2, Leases (Topic 842). Topic 606

RECLASSIFICATIONS FROM ACCUMULA

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)	NOTE 2 – RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (“AOCI”) Amounts reclassified from AOCI and the affected line items in the statements of income during the periods presented are as follows: Amounts reclassified from AOCI Years ended December 31, Affected line item in the December 31, 2014 December 31, Statements of income Unrealized gains on available-for-sale Realized gain on sale of securities $ 534 $ 652 $ 829 securities (206 ) (251 ) (319 ) Tax expense $ 328 $ 401 $ 510 Net reclassified amount Amortization of defined benefit pension items $ 160 $ 188 $ (190 ) Actuarial gains (losses) (62 ) (72 ) 73 Tax (expense) benefit $ 98 $ 116 $ (117 ) Net reclassified amount Total reclassifications out of AOCI $ 426 $ 517 $ 393

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 3 – SECURITIES The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2015 and 2014 are summarized as follows: Gross Gross Amortized unrealized unrealized Fair cost gains losses value December 31, 2015: (dollars in thousands) Available-for-sale securities: U.S. government sponsored agencies $ 132,543 $ 40 $ (1,526 ) $ 131,057 U.S. government sponsored agency mortgage backed 171,620 6 (4,559 ) 167,067 securities States and political subdivisions 71,493 1,916 (90 ) 73,319 Corporate bonds 23,632 54 (110 ) 23,576 $ 399,288 $ 2,016 $ (6,285 ) $ 395,019 Held-to-maturity securities: States and political subdivisions $ 4,059 $ 33 $ (3 ) $ 4,089 December 31, 2014: Available-for-sale securities: U.S. government sponsored agencies $ 162,289 $ 50 $ (3,085 ) $ 159,254 U.S. government sponsored agency mortgage backed securities 172,035 64 (4,129 ) 167,970 State 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 December 31, 2015 and 2014 was approximately $306.3 million and $326.0 million, which was approximately 77% and 78%, respectively, of the Company’s available-for-sale and held-to-maturity investment portfolio. The Company evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of December 31, 2015 and December 31, 2014 indicated that all impairment was considered temporary, market driven due primarily to fluctuations in market interest rates and not credit-related. The following table shows the 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 December 31, 2015 and 2014: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) ` Available-for-sale securities: U.S. government sponsored agencies $ 70,454 $ (425 ) $ 43,080 $ (1,101 ) $ 113,534 $ (1,526 ) U.S. government sponsored agency mortgage backed securities 74,860 (1,073 ) 90,125 (3,486 ) 164,985 (4,559 ) States and political subdivisions 8,472 (64 ) 2,556 (26 ) 11,028 (90 ) Corporate bonds 14,504 (87 ) 1,854 (23 ) 16,358 (110 ) $ 168,290 $ (1,649 ) $ 137,615 $ (4,636 ) $ 305,905 $ (6,285 ) Held-to-maturity securities: States and political subdivisions $ 438 $ (3 ) $ - $ - $ 438 $ (3 ) December 31, 2014: Available-for-sale securities: U.S. government sponsored 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 tables above, at December 31, 2015, the Company had approximately $6.3 million in unrealized losses on $306.3 million of securities. The unrealized loss positions are most significant in two types of securities sectors which are U.S. government agencies and U.S. government sponsored agency mortgage backed securities. 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 and held-to-maturity securities at December 31, 2015 and 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Held-to-maturity Amortized Fair Amortized Fair December 31, 2015 cost value cost value (dollars in thousands) Within one year $ 5,678 $ 5,695 $ 475 $ 476 One to five years 132,685 131,605 984 997 Five to ten years 49,992 50,396 610 611 After ten years 39,313 40,256 1,990 2,005 Mortgage-backed securities 171,620 167,067 - - $ 399,288 $ 395,019 $ 4,059 $ 4,089 The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $253.6 million at December 31, 2015 and $217.2 million at December 31, 2014. The book value of securities sold under agreements to repurchase amounted to $30.5 million and $35.0 million at December 31, 2015 and 2014, respectively. Years ended December 31, 2015 2014 2013 (dollars in thousands) Gross gains recognized on sales of securities $ 579 $ 737 $ 1,026 Gross losses recognized on sales of securities (45 ) (85 ) (197 ) Net realized gains on sales of securities available-for-sale $ 534 $ 652 $ 829 During 2014, the Company transferred one held-to-maturity bond with a net carrying value of $450,000 to available-for-sale classification. Under ASC 320-10-26-6, the Company had concluded that there was sufficient evidence of deteriorating credit worthiness. Immediately following the reclassification, the Company sold the bond recognizing a realized gain of $5,000.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
LOANS	NOTE 4 – LOANS The following table presents the Bank’s loans by category as of the periods presented: December 31, December 31, 2015 2014 Commercial (dollars in thousands) Commercial and industrial $ 127,899 $ 99,788 Non-farm, nonresidential real estate 161,009 163,461 Construction and development 51,330 50,424 Commercial loans secured by real estate 28,091 27,937 Other commercial 60,325 41,185 Total commercial 428,654 382,795 Residential Consumer loans 9,914 9,536 Single family residential 260,254 229,559 Other retail 32,444 30,162 Total residential and consumer 302,612 269,257 $ 731,266 $ 652,052 Less: Allowance for possible loan and lease losses (8,634 ) (7,934 ) Total net loans $ 722,632 $ 644,118 The amount of capitalized fees and costs calculated in accordance with ASC 310-20 included in the above loan totals were $941,000 and $932,000 at December 31, 2015 and December 31, 2014, respectively. Loan Origination/Risk Management. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. 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 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 help 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 December 31, 2015, approximately 55% of the outstanding principal balance of the Company’s commercial real estate loans was secured by owner-occupied properties, compared to 45% at December 31, 2014. With respect to loans to developers and builders 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 due to 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 residential and consumer loans utilizing a computer-based credit scoring analysis to supplement the underwriting process. To monitor and manage consumer 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. The goal of the bank is to diversify loans to avoid a concentration of credit in a specific industry, person, entity, product, service, or any area vulnerable to a tax law change or an economic event. A concentration of credit occurs when obligations, direct or indirect, of the same or affiliated interests represent 15% or more of the Bank’s capital structure. Commercial real estate rental and leasing represented the highest concentration at 120% of tier 1 capital. The Board of Directors recognizes that the Bank’s geographic trade area imposes some limitations regarding loan diversification if the bank is to perform the function for which it has been chartered. Specifically, lending to qualified borrowers within the Bank’s trade area will naturally cause concentrations of real estate loans in the primary communities served by the Bank and loans to employees of major employers in the area. The following table provides details regarding the aging of the Bank’s loan portfolio: 30-59 60-89 90 days Total days days and greater past Total December 31, 2015 past due past due past due due Current Loans (dollars in thousands) Commercial: Commercial and industrial $ 245 $ 25 $ 245 $ 515 $ 127,384 $ 127,899 Non-farm, non-residential real estate 2,486 123 279 2,888 158,121 161,009 Construction and development 7 - - 7 51,323 51,330 Commercial loans secured by estate real estate 24 8 163 195 27,896 28,091 Other commercial - - - - 60,325 60,325 Total commercial loans 2,762 156 687 3,605 425,049 428,654 Retail: Consumer 43 36 7 86 9,828 9,914 Single family residential 1,918 664 164 2,746 257,508 260,254 Other retail 160 148 54 362 32,082 32,444 Total retail loans 2,121 848 225 3,194 299,418 302,612 Total $ 4,883 $ 1,004 $ 912 $ 6,799 $ 724,467 $ 731,266 30-59 60-89 90 days Total days days and greater past Total December 31, 2014 past due past due past due due Current loans (dollars in thousands) 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 estate real estate 92 56 172 320 27,617 27,937 Other commercial 10 - 1,092 1,102 40,083 41,185 Total commercial loans 778 264 3,022 4,064 378,731 382,795 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 Total retail loans 2,433 402 506 3,341 265,916 269,257 Total $ 3,211 $ 666 $ 3,528 $ 7,405 $ 644,647 $ 652,052 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing commercial loans but also include loans modified in troubled debt restructurings. The following table summarizes the impaired loans by loan type: Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest December 31, 2015 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 432 $ 60 $ 262 $ 322 $ 28 $ 344 $ 17 $ 22 Non-farm, non-residential real estate 469 401 - 401 - 428 17 24 Commercial loans secured by real estate 192 - 163 163 29 169 6 13 Other commercial - - - - - - - - Commercial total 1,093 461 425 886 57 941 40 59 Retail: Single family residential 1,612 510 830 1,340 102 1,415 81 83 Other retail 130 74 - 74 - 79 6 7 Retail total 1,742 584 830 1,414 102 1,494 87 90 Total $ 2,835 $ 1,045 $ 1,255 $ 2,300 $ 159 $ 2,435 $ 127 $ 149 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 December 31, 2013 balance allowance allowance investment allowance year to date received accrued Commercial: Commercial and industrial $ 2,190 $ 1,338 $ 234 $ 1,572 $ 16 $ 1,620 $ 23 $ 134 Non-farm, non-residential real estate 3,236 1,155 1,551 2,706 282 2,819 157 168 Construction and development 461 461 - 461 44 556 30 30 Other commercial 3,834 3,310 178 3,488 - 3,704 225 241 Commercial total 9,721 6,264 1,963 8,227 342 8,699 435 573 Retail: Single family residential 1,121 568 419 987 118 1,044 52 55 Other retail 11 - 11 11 11 11 - - Retail total 1,132 568 430 998 129 1,055 52 55 Total $ 10,853 $ 6,832 $ 2,393 $ 9,225 $ 471 $ 9,754 $ 487 $ 628 Non-accrual loans, segregated by class of loans, were as follows: December 31, 2015 December 31, 2014 Commercial (dollars in thousands) Commercial and industrial $ 322 $ 1,428 Non-farm, nonresidential real estate 401 409 Commercial loans secured by real estate 163 172 Other commercial - 1,092 Total commercial loans 886 3,101 Residential Consumer loans 74 42 Single family residential 1,237 2,237 Total residential loans 1,311 2,279 Total non-accrual loans $ 2,197 $ 5,380 Included in certain loan categories of impaired loans are certain loans that have been modified in a troubled debt restructuring where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification. All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower. In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future with the modification. This evaluation is performed under the Company’s internal underwriting policy. 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 the current fair value of the collateral, less selling costs for collateral dependent loans. If the Company determined 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 restructurings, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. As of December 31, 2015, the Company did not have any commitments to extend additional funds to borrowers with loans modified and included as a troubled debt restructuring. During 2015, certain loans were modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances. Presented below, segregated by class of loans, are troubled debt restructurings: Twelve months ended December 31, 2015 Post- Net Number modification charge-offs of outstanding resulting in modifications balance modifications (dollars in thousands) Retail: Single family residential 2 $ 111 $ - Total 2 $ 111 $ - Twelve months ended December 31, 2014 Post- Net Number modification charge-offs of outstanding resulting in modifications balance modifications (dollars in thousands) Commercial: Nonfarm nonresidential 1 $ 4,357 - Retail: Single family residential 1 316 3 Total 2 $ 4,673 $ 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 consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, the Company evaluates the loan for possible further impairment. The allowance for loan losses 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 or transferred to non-accrual. As of December 31, 2015 and 2014, the Company did not have any loans that were modified in troubled debt restructurings during the past twelve months that have subsequently defaulted. As of December 31, 2015, the Company held one foreclosed residential real estate property that was the result of obtaining physical possession in accordance with ASC 310-40. The carrying value was $62,000. In addition, the Company had no consumer mortgage loans secured by residential real estate properties for which formal foreclosure 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 table presents risk grades and classified loans by class: December 31, 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 $ 1,263 $ 312 $ - $ 103 $ 77 $ 1,755 Risk rating 2 - modest risk 5,633 295 - - 49,017 54,945 Risk rating 3 - average risk 54,952 43,253 9,328 2,529 6,004 116,066 Risk rating 4 - acceptable risk 60,922 105,014 40,604 24,895 5,066 236,501 Risk rating 5 - pass/watch 4,793 11,532 1,398 471 - 18,194 Risk rating 6 - special mention - 108 - - 161 269 Risk rating 7 - substandard 336 495 - 93 - 924 Risk rating 8 - doubtful - - - - - - TOTALS $ 127,899 $ 161,009 $ 51,330 $ 28,091 $ 60,325 $ 428,654 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 $ 9,896 $ 258,216 $ 32,388 $ 300,500 Risk rated 7* 18 2,038 56 2,112 TOTALS $ 9,914 $ 260,254 $ 32,444 $ 302,612 *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, the total includes all risk rated 7 loans, of which may be performing or non-performing. **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 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, the total includes all risk rated 7 loans, of which may be performing or non-performing. **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 LO

ALLOWANCE FOR LOAN AND LEASE LOSSES	12 Months Ended
	Dec. 31, 2015
Allowance For Loan And Lease Losses [Abstract]
ALLOWANCE FOR LOAN AND LEASE LOSSES	NOTE 5 – ALLOWANCE FOR LOAN AND LEASE LOSSES Allowance for Loan and Lease Losses. 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 Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company’s allowance for possible loan losses 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 similar 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. Commercial 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 a calculated grade of 7 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 allowance for possible loan losses 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 periodically updated 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 the total dollar amount 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 allowance for loan losses 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, know 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 Company uses a rolling ten quarters historic loss period for all segments when estimating the historic charge off rates calculated in accordance with ASC Topic 450 and incorporates environmental factors for various components such as economic conditions, trends in delinquencies, loan review assessments, credit concentrations and level of underperforming ratios. General valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) the experience, ability and effectiveness of the bank’s lending management and staff; (ii) the effectiveness of the Company’s loan policies, procedures and internal controls; (iii) changes in asset quality; (iv) changes in loan portfolio volume; (v) the composition and concentrations of credit; (vi) the impact of competition on loan structuring and pricing; (vii) the effectiveness of the internal loan review function; (viii) the impact of environmental risks on portfolio risks; and (ix) the impact of changes to interest rates on portfolio risk. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to have either a high, moderate or low degree of risk. The results are then input into a “general allocation matrix” to determine an appropriate general valuation allowance. 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. Loans identified as losses by management and internal loan review are charged off. Furthermore, consumer loan accounts are charged off automatically based on regulatory requirements. The following table summarizes the allocation in the ALLL by loan segment: Residential real Consumer and December 31, 2015 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 6,719 $ 1,053 $ 162 $ 7,934 Less: charge-offs - (34 ) (13 ) (47 ) Add: recoveries 683 12 22 717 Add: provisions - 30 - 30 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential real Consumer and December 31, 2014 Commercial estate other 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 Residential real Consumer and December 31, 2013 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 7,528 $ 1,109 $ 172 $ 8,809 Less: charge-offs (222 ) (27 ) (49 ) (298 ) Add: recoveries 53 2 29 84 Add: provisions - - - - Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595 The following tables detail the amount of the ALLL allocated to each portfolio segment as of December 31, 2015, 2014 and 2013, disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 57 $ 102 $ - $ 159 Loans collectively evaluated for impairment 7,345 959 171 8,475 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential Consumer and December 31, 2014 Commercial real estate 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 Ending balance $ 6,719 $ 1,053 $ 162 $ 7,934 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 342 $ 118 $ 11 $ 471 Loans collectively evaluated for impairment 7,017 966 141 8,124 Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595 The following table shows loans as of December 31, 2015, 2014 and 2013 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 886 $ 1,340 $ 74 $ 2,300 Loans collectively evaluated for impairment 427,768 258,914 42,284 728,966 Ending balance $ 428,654 $ 260,254 $ 42,358 $ 731,266 Residential Consumer and December 31, 2014 Commercial real estate 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 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,227 $ 987 $ 11 $ 9,225 Loans collectively evaluated for impairment 346,148 212,776 38,617 597,541 Ending balance $ 354,375 $ 213,763 $ 38,628 $ 606,766

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT	NOTE 6 – PREMISES AND EQUIPMENT The following table presents the Company’s assets by category: 2015 2014 (dollars in thousands) Land $ 9,296 $ 9,152 Premises 22,951 22,858 Furniture and equipment 10,375 9,722 Leasehold improvements 1,846 1,859 Construction in progress 278 16 44,746 43,607 Less accumulated depreciation (19,228 ) (17,834 ) $ 25,518 $ 25,773

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS Certain related parties (primarily directors and officers of the Company or the Bank, including their affiliates, families and companies in which they hold 10% or more ownership) were customers of, and had loans and other transactions with, the Bank in the ordinary course of business. An analysis of the activity with respect to such loans are shown in the table below. These totals exclude loans made in the ordinary course of business to other companies with which neither the Company nor the Bank had a relationship other than the association of one of its directors in the capacity of officer or director. These loan transactions were made on substantially the same terms as those prevailing at the time for comparable loans to other persons. They did not involve more than the normal risk of collectability or present other unfavorable features. No related party loans were charged off in 2015 or 2014. Activity for related party transactions for the periods presented are: 2015 2014 (dollars in thousands) Related party extensions of credit, beginning of period $ 4,774 $ 3,822 New loans 879 2,081 Repayments (1,393 ) (1,129 ) Related party extension of credit, end of period $ 4,260 $ 4,774 The aggregate balances of related party deposits at December 31, 2015 and 2014 were $22.4 million and $24.5 million, respectively. The aggregate balances of related party repurchase agreements at December 31, 2015 and 2014 were $13.8 million and $13.1 million, respectively. The Company and Bank utilize various services and purchased goods provided by certain related parties. Payments to directors for services provided during 2015 and 2014 totaled $151,000 and $170,000, respectively.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2015
Leases [Abstract]
LEASES	NOTE 8 – LEASES Real property for three of the Bank’s office locations and certain equipment are leased under noncancelable operating leases expiring at various times through 2034. In most cases, the leases provide for one or more renewal options of five to ten years under the same or similar terms. In addition, various items of office equipment are leased under cancelable operating leases. Total rental expense incurred under all operating leases, including short-term leases with terms of less than one month, amounted to approximately $30,000, $27,0000 and $18,000 for equipment leases and approximately $380,000, $304,000 and $264,000 for building leases in 2015, 2014 and 2013, respectively. Future minimum lease commitments as of December 31, 2015 under all noncancelable operating leases with initial terms of one year or more are shown in the following table: Year Lease payments (dollars in thousands) 2016 $ 358 2017 320 2018 294 2019 291 2020 295 Thereafter 3,187 Total $ 4,745

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
FEDERAL AND STATE INCOME TAXES	NOTE 9 – FEDERAL AND STATE INCOME TAXES The following table presents components of income tax expense attributable to continuing operations: 2015 2014 2013 Current $ 2,735 $ 3,011 $ 915 Deferred 614 545 1,785 Total provision for income taxes 3,349 $ 3,556 $ 2,700 Deferred tax effects of principal temporary differences 2015 2014 2013 Allowance for possible loan and lease losses $ 3,324 $ 3,055 $ 3,309 Deferred compensation 2,563 2,557 2,516 Write down of other real estate - 9 314 Deferred gain on OREO sale - - 188 Amortization of core deposit intangible (1,747 ) (1,577 ) (272 ) Recognition of nonaccrual loan income 119 129 111 Unrealized losses on available-for-sale securities 1,644 2,124 6,613 Post-retirement benefit obligation 841 986 890 Accelerated depreciation (691 ) (973 ) (822 ) Amortization of goodwill (1,229 ) (1,109 ) (2,591 ) Dividend income - F&M West - - (372 ) Prepaid expenses (135 ) (135 ) (178 ) Other (733 ) 31 240 Net deferred tax asset $ 3,956 $ 5,097 $ 9,946 Reconciliation of total income taxes reported with the amount of income taxes computed at the Federal statutory rate (34% each year) 2015 2014 2013 Tax expense at statutory rate $ 4,643 $ 4,692 $ 4,191 Increase (decrease) in taxes resulting from: Tax-exempt interest (1,226 ) (1,060 ) (1,144 ) Nondeductible interest expense 19 14 18 Employee benefits (80 ) (128 ) (196 ) Other nondeductible expenses (nontaxable income) - net 28 38 11 State income taxes net of federal tax benefit 106 - - Dividend income exclusion - - - Other (141 ) - (180 ) Total provision for income taxes $ 3,349 $ 3,556 $ 2,700 Effective tax rate 24.4 % 25.8 % 21.9 % The Company and its subsidiaries file consolidated income tax returns with the Internal Revenue Service and State of Tennessee. The Company is not subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2012. There was no valuation allowance for deferred tax assets at December 31, 2015 and 2014. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences at December 31, 2015.

BORROWED FUNDS

BORROWED FUNDS	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
BORROWED FUNDS	NOTE 10 – BORROWED FUNDS The Bank is a party to the Blanket Agreement for Advances and Security Agreement (the “Blanket Agreement”) with the Federal Home Loan Bank of Cincinnati (the “FHLB”). Advances made to the Bank under the Blanket Agreement are collateralized by the FHLB stock and qualifying residential mortgage loans totaling 150% of the outstanding amount borrowed. These collateralization matters are outlined in the Blanket Agreement dated June 20, 2006 between the Bank and the FHLB. There were no outstanding advances at December 31, 2015 and 2014. Stock held in the FHLB totaling $3.0 million at December 31, 2015 and 2014 is carried at cost. The stock is restricted and can only be sold back to the FHLB at par. There were no FHLB borrowings outstanding at December 31, 2015 or 2014. 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 December 31, 2015, disaggregated by the class of collateral pledged. Overnight and December 31, 2015 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 24,177 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 24,177 Overnight and December 31, 2014 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 22,834 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 22,834 Securities sold under agreements to repurchase consist of obligations of the Bank to other parties. The obligations are secured by investment securities and such collateral is held in safekeeping by a third party. The maximum amount of outstanding agreements at any month end during 2015 and 2014 totaled $26.4 million and $24.8 million, respectively, and the monthly average of such agreements totaled $25.1 million and $21.4 million for 2015 and 2014, respectively. The agreements at December 31, 2015, mature January 4, 2016.

SIGNIFICANT ESTIMATES, COMMITME

SIGNIFICANT ESTIMATES, COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
SIGNIFICANT ESTIMATES, COMMITMENTS AND CONTINGENCIES	NOTE 11 – SIGNIFICANT ESTIMATES, COMMITMENTS AND CONTINGENCIES Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the ALLL are reflected in the footnote regarding loans. Other significant estimates and concentrations not discussed in those footnotes include: General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. Pension and Other Post-retirement Benefit Obligations The Company has a noncontributory defined benefit post-retirement health care plan whereby it agrees to provide certain post-retirement benefits to eligible employees. The benefit obligation is the actuarial present value of all benefits attributed to service rendered prior to the valuation date based on the projected unit credit cost method. It is reasonably possible that events could occur that would change the estimated amount of this liability materially in the near term. Current Economic Conditions The current economic climate continues to present financial institutions with circumstances and challenges which in some cases have resulted in large and unanticipated declines in the fair values of investments and other assets, constraints on liquidity and capital and significant credit quality problems, including volatility in the valuation of real estate and other collateral supporting loans. The accompanying financial statements have been prepared using values and information currently available to the Company. Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the ALLL and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity. Furthermore, the Company’s regulators could require material adjustments to asset values or the allowance for loan losses for regulatory capital purposes that could affect the Company’s measurement of regulatory capital and compliance with the capital adequacy guidelines under the regulatory framework for prompt corrective action. Commitments and Credit Risk The Company grants commercial, consumer and residential loans to customers throughout the State of Tennessee. The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Bank has in those particular financial instruments. Commitments to Originate Loans Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 30 to 90 days, and which are intended for sale to investors in the secondary market. Total mortgage loans in process of origination were $1.1 million and $3.3 million, at December 31, 2015 and 2014, respectively. Total mortgage loans held for sale amounted to $0 and $354,000, at December 31, 2015 and 2014, respectively. Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Company be obligated to perform under the standby letters of credit, the Company may seek recourse from the customer for reimbursement of amounts paid. The Company had total outstanding standby letters of credit amounting to $12.3 million and $13.5 million, at December 31, 2015 and 2014, respectively, with terms ranging from seven days to 24 months. Lines of Credit Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. At December 31, 2015, the Company had granted unused lines of credit to borrowers aggregating approximately $44.6 million and $159.5 million for commercial lines and open-end consumer lines, respectively. At December 31, 2014, unused lines of credit to borrowers aggregated approximately $41.0 million for commercial lines and $104.4 million for open-end consumer lines.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 12 – FAIR VALUE MEASUREMENT The fair value of an asset or liability is the price that would be received to sell 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. FASB ASC Topic 820, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs 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 by the level within the fair value hierarchy utilized to measure fair value: Recurring fair value measurements at December 31, 2015 Total carrying Level 1 Level 2 Level 3 (dollars in thousands) Assets Available-for-sale investment securities: U.S. government sponsored agencies $ 131,057 $ - $ 131,057 $ - U.S. government sponsored agency mortgage backed securities 167,067 - 167,067 - State and political subdivision 73,319 - 73,319 - Corporate bonds 23,576 - 23,576 - Total assets at fair value $ 395,019 $ - $ 395,019 $ - Recurring fair value measurements at December 31, 2014 Total carrying Level 1 Level 2 Level 3 (dollars in thousands) Assets Available-for-sale investment securities: U.S. government sponsored agencies $ 159,254 $ - $ 159,254 $ - U.S. government sponsored agency - - mortgage backed securities 167,970 - 167,970 - State and political subdivision 52,882 - 52,882 - Corporate bonds 17,780 - 17,780 - Total assets at fair value $ 397,886 $ - $ 397,886 $ - The following 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 have been no significant changes in the valuation techniques during the year ended December 31, 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 bond’s 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 December 31, 2015 and December 31, 2014, by the level within the fair value hierarchy utilized to measure fair value: December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Impaired loans (collateral-dependent) $ - $ - $ 672 $ 672 December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Impaired loans (collateral-dependent) $ - $ - $ 1,184 $ 1,184 Impaired Loans (Collateral-Dependent) The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results. Fair value adjustments were approximately $178,000 at December 31, 2015 and $287,000 at December 31, 2014. Loans considered impaired under ASC 310-35, “Impairment of a Loan,” are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are subject to nonrecurring fair value adjustments to reflect (1) subsequent partial write-downs that are based on the observable market price or current appraised value of the collateral or (2) the full charge-off of the loan carrying value. Other Real Estate Owned Other real estate owned (“OREO”) is initially recorded at fair value at the time of acquisition, as determined by independent appraisal or evaluation by the Company, less costs to sell when the real estate is acquired in settlement of loans. Quarterly evaluations of OREO are performed to determine if there have been any subsequent decline in the value of OREO properties. OREO is classified within Level 3 of the fair value hierarchy. OREO assets are subject to nonrecurring fair value adjustments to reflect subsequent partial write-downs that are based on the observable market price or current appraised value of the collateral less selling costs. Fair value adjustments were approximately $12,000 in the aggregate at December 31, 2015. There were no fair value adjustments at December 31, 2014. Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the Chief Credit Officer. Appraisals are required annually and reviewed for accuracy and consistency by the Chief Credit Officer. The appraised values are reduced by discounts to consider lack of marketability and estimated costs to sell. Appraisers are selected from the list of approved appraisers maintained by management. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements: Quantitative information about Level 3 fair value measurements Range Valuation Unobservable (weighted December 31, 2015 Fair value technique(s) input average) (dollars in thousands) Market comparable Marketability 25.0% - 46.0% Impaired loans (collateral-dependent) $ 672 properties discount (41.0%) Quantitative Information about Level 3 fair value measurements Range Valuation Unobservable (weighted December 31, 2014 Fair value technique(s) input average) (dollars in thousands) Market comparable Marketability 5.0% - 10.0% Impaired loans (collateral-dependent) $ 1,184 properties discount (7%) ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and due from banks Interest bearing deposits in other banks Federal funds sold Securities held-to-maturity Loans held for sale Loans (net of the allowance for loan losses) Federal Home Loan Bank stock Federal Reserve Bank stock Accrued interest receivable Deposits Repurchase agreements Accrued interest payable Commitments to extend credit and letters of credit The following tables present estimated fair values of the Company’s financial instruments indicate the levels within the fair value hierarchy of the valuation techniques: Fair value measurements at December 31, 2015 using Quoted prices Significant in active other markets for observable Significant Carrying identical assets inputs unobservable amount (Level 1) (Level 2) inputs (Level 3) (dollars in thousands) Financial assets Cash and due from banks $ 19,453 $ 19,453 $ - $ - Interest-bearing deposits in other banks 18,299 18,299 - - Federal funds sold 24,476 24,476 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 395,019 - 395,019 - Securities held-to-maturity 4,059 - 4,089 - Loans, net 722,632 - - 718,956 Accrued interest receivable 4,540 - 4,540 - Financial liabilities Non-interest bearing deposits 239,226 239,226 - - Interest bearing deposits 864,575 - 864,036 - Repurchase agreements 24,177 - 24,177 - Accrued interest payable 503 - 503 - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - - Fair value measurements at December 31, 2014 using Quoted prices Significant in active other markets for observable Significant Carrying identical assets inputs unobservable amount (Level 1) (Level 2) inputs (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 Non-interest 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 - - - -

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY RESULTS OF OPERATIONS (Unaudited)	NOTE 13 – QUARTERLY RESULTS OF OPERATIONS (Unaudited) The following table presents unaudited quarterly interim financial information for the Company for the periods presented: March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Total (dollars in thousands) Interest income $ 9,303 $ 9,720 $ 9,817 $ 9,842 $ 38,682 Interest expense 565 556 556 548 2,225 Net interest income 8,738 9,164 9,261 9,294 36,457 Provision for possible loan and lease losses, net - - - 30 30 Non-interest income 2,885 2,774 2,907 2,877 11,443 Non-interest expenses 8,030 8,559 8,524 9,102 34,215 Income before income taxes 3,593 3,379 3,644 3,039 13,655 Income taxes 976 677 925 771 3,349 Net income $ 2,617 $ 2,702 $ 2,719 $ 2,268 $ 10,306 Basic earnings per share $ 0.53 $ 0.56 $ 0.57 $ 0.48 $ 2.13 Weighted average shares outstanding 4,897,245 4,853,265 4,808,352 4,771,648 4,832,217 March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Total (dollars in thousands) Interest income $ 9,042 $ 9,103 $ 9,351 $ 9,284 $ 36,780 Interest expense 620 623 605 580 2,428 Net interest income 8,422 8,480 8,746 8,704 34,352 Provision for possible loan and lease losses, net - - - - - Non-interest income 2,651 3,091 3,177 2,808 11,727 Non-interest expenses 8,098 8,033 8,166 7,984 32,281 Income before income taxes 2,975 3,538 3,757 3,528 13,798 Income taxes 713 941 1,031 871 3,556 Net income $ 2,262 $ 2,597 $ 2,726 $ 2,657 $ 10,242 Basic earnings per share $ 0.45 $ 0.52 $ 0.55 $ 0.54 $ 2.06 Weighted average shares outstanding 5,017,789 4,977,506 4,934,815 4,909,910 4,963,826

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
DEPOSITS	NOTE 14 – DEPOSITS The Bank does not have any foreign offices and all deposits are serviced in its 19 domestic offices. Maturities of time deposits of $100,000 or more at December 31, 2015 and 2014 are as follows: 2015 2014 (dollars in thousands) Under 3 months $ 24,805 $ 29,629 3 to 12 months 70,447 71,489 Over 12 months 16,755 18,399 Total $ 112,007 $ 119,517 At December 31, 2015 and 2014, the Bank had $47.1 million and $53.3 million, respectively, of interest-bearing time deposits of $250,000 or more. At December 31, 2015 and 2014, the Bank had $223,000 and $152,000, respectively, of deposit accounts in overdraft status and thus have been reclassified to loans in the accompanying consolidated balance sheets. The following table presents maturities of interest-bearing time deposits as of December 31, 2015: (dollars in thousands) 2016 $ 172,931 2017 17,972 2018 6,056 2019 6,237 2020 8,090 Thereafter 10 Total $ 211,296

CONDENSED FINANCIAL INFORMATION

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
CONDENSED FINANCIAL INFORMATION OF THE CORPORATION	NOTE 15 – CONDENSED FINANCIAL INFORMATION OF THE CORPORATION The following tables present the condensed balance sheets, statements of income, comprehensive income (loss), and cash flows of the Company: CONDENSED BALANCE SHEETS As of December 31, 2015 2014 (dollars in thousands) Cash $ 310 $ 271 Investment in bank subsidiary 114,655 111,512 Investment in credit life insurance company 54 54 Investment in other securities 17 17 Dividends receivable from bank subsidiary 1,754 1,813 Cash surrender value - life insurance 4,546 4,474 Total assets $ 121,336 $ 118,141 Liabilities Accrued liabilities $ 1,887 $ 1,839 Dividends payable 1,754 1,813 Total liabilities 3,641 3,652 Shareholders' equity Common stock - $10 par value, 8,000,000 shares authorized; 4,739,502 and 4,900,576 shares issued and outstanding, as of December 31, 2015 and December 31, 2014, respectively 47,395 49,006 Retained earnings 71,583 67,609 Accumulated other comprehensive loss (1,283 ) (2,126 ) Total shareholders' equity 117,695 114,489 Total liabilities and shareholders' equity $ 121,336 $ 118,141 CONDENSED STATEMENTS OF INCOME Years ended December 31, 2015 2014 2013 Operating income (dollars in thousands) Dividends from bank subsidiary $ 8,002 $ 7,038 $ 7,663 Other dividend income - 8 15 Other 72 65 65 Operating expenses (308 ) (279 ) (238 ) Income before equity in undistributed net income of bank subsidiary 7,766 6,832 7,505 Equity in undistributed net income of bank subsidiary 2,540 3,410 2,106 Net income $ 10,306 $ 10,242 $ 9,611 CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year ended December 31, 2015 2014 2013 (dollars in thousands) Net income for common shareholders $ 10,306 $ 10,242 $ 9,611 Other comprehensive income (loss) Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of 685, $4,742, and ($8,507), respectively 1,097 7,571 (13,589 ) Reclassification adjustment for realized gains included in net income, net of taxes of ($206), ($251) and ($319), respectively (328 ) (401 ) (510 ) Change in unfunded portion of post-retirement benefit obligations, net of taxes of $47, ($185) and $2,102, respectively 74 (295 ) 3,360 Other comprehensive income (loss) 843 6,875 (10,739 ) Total comprehensive income (loss) $ 11,149 $ 17,117 $ (1,128 ) CO NDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2015 2014 2013 (dollars in thousands) Operating activities Net income for the year $ 10,306 $ 10,242 $ 9,611 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of bank subsidiary (2,540 ) (3,410 ) (2,106 ) Increase in cash surrender value of life insurance contracts (72 ) (65 ) (65 ) Increase (decrease) in other assets 59 245 (90 ) Increase in payables 288 18 134 Total adjustments (2,265 ) (3,212 ) (2,127 ) Net cash provided by operating activities 8,041 7,030 7,484 Financing activities Payment to repurchase common stock (4,408 ) (3,097 ) (3,722 ) Cash dividends paid (3,594 ) (3,685 ) (3,800 ) Net cash used by financing activities (8,002 ) (6,782 ) (7,522 ) Decrease in cash 39 248 (38 ) Cash at beginning of year 271 23 61 Cash at end of year $ 310 $ 271 $ 23

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 16 – EMPLOYEE BENEFIT PLANS The Bank contributes to a qualified profit-sharing plan covering employees who meet participation requirements. To be eligible to participate, employees must complete 1,000 hours of service within the twelve month time period following their date of hire. Employees must be age twenty or older. The amount of the contribution is at the discretion of the Bank’s Board of Directors, up to the maximum deduction allowed for federal income tax purposes. Contributions to the plan, which amounted to approximately $885,000, $1.0 million and $1.6 million in 2015, 2014 and 2013, respectively, are included in salaries and employee benefits expense. The Bank formalized a nonqualified salary continuation agreement for a key officer. In connection with this agreement, the value of the single premium universal life insurance policies (approximately $996,000 at December 31, 2015 and approximately $986,000 at December 31, 2014) purchased in 1993 to fund the related liability (approximately $40,000 at December 31, 2015 and $56,000 at December 31, 2014) were included in other assets and other liabilities, respectively. The principal cost of this agreement is accrued over the anticipated remaining period of active employment, based on the present value of the expected retirement benefit. The Company and Bank implemented a deferred compensation plan that permits directors to defer their director’s fees and earn interest on the deferred amount in the amount of the wall street journal prime rate plus three percent. The agreements provide for a lump sum payment or 120 month payments of deferred fees plus accrued interest after retirement, separation from service, or death. The liability accrued for this plan totaled $6.6 million at December 31, 2015 and 2014.. The charge to expense for the agreements was $738,000, $715,000 and $722,000 for the years ended December 31 2015, 2014 and 2013, respectively.

POST RETIREMENT BENEFIT PLAN

POST RETIREMENT BENEFIT PLAN	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
POST RETIREMENT BENEFIT PLAN	NOTE 17 – POST RETIREMENT BENEFIT PLAN Effective July 1, 2013, the Company revised its retiree medical benefit plan for employees who were hired before March 27, 2007. Newly retiring employees will no longer be offered medical, dental or life insurance coverage. Instead, qualified retirees will receive a post retirement bonus. The Company will pay a post retirement bonus equal to $20,000 to employees (i) who were hired prior to March 20, 2007; (ii) who retire on or after July 1, 2013; (iii) who are at least age 59 ½ at the time of retirement; and (iv) who have at least twenty-five years of service to the Company as of retirement. The bonus will be paid in a lump sum cash payment (subject to applicable tax withholding requirements) within 60 days after the employee’s retirement, provided such retirement constitutes a “separation from service” under section 409A of the Internal Revenue Code. The Company still sponsors a defined benefit post-retirement health care plan for retirees who retired prior to July 1, 2007. Under this plan, premiums paid by retirees and spouses depend on date of retirement, age and coverage election. The Company funding policy is to make the minimal annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $161,000 to the plan in 2016. The following table provides further information about the plan: Post-retirement benefits 2015 2014 (dollars in thousands) Change in benefit obligation Benefit obligation at beginning of year $ 2,560 $ 2,313 Service cost 36 33 Interest cost 105 111 Expected benefits paid (174 ) (183 ) Actuarial gain (loss) (286 ) 286 Benefit obligation at end of year $ 2,241 $ 2,560 Change in fair value of assets Fair value of plans assets at beginning of year $ - $ - Employer contribution 174 183 Benefits paid (174 ) (183 ) Fair value of plan assets at end of year $ - $ - Reconciliation of funded status to benefit costs recognized Projected benefit obligation, end of year $ (2,241 ) $ (2,560 ) Fair value of assets, end of year - - Funded status, end of year $ (2,241 ) $ (2,560 ) Amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic benefit cost consist of: 2015 2014 (dollars in thousands) Unrecognized net actuarial gain $ (2,142 ) $ (2,016 ) Unrecognized prior service cost (41 ) (46 ) $ (2,183 ) $ (2,062 ) Amounts recognized in statement of financial position are as follows: 2015 2014 (dollars in thousands) Current liability $ - $ - Noncurrent liability (2,241 ) (2,560 ) $ (2,241 ) $ (2,560 ) A reconciliation of other comprehensive income is as follows: Post-retirement benefits 2015 2014 2013 (dollars in thousands) Accumulated other comprehensive income (loss) beginning of year $ (2,062 ) $ (2,542 ) $ 2,920 Amortization of net actuarial gain (loss) 160 188 (190 ) Negative plan amendment gain - - (2,662 ) (Gain) loss incurred in current year (286 ) 287 (2,558 ) Prior service cost established in current year 5 5 (52 ) Other comprehensive income (loss) (121 ) 480 (5,462 ) Ending balance (before tax effects) $ (2,183 ) $ (2,062 ) $ (2,542 ) Post-retirement benefits 2015 2014 2013 Components of net periodic benefit cost (dollars in thousands) Service cost $ 36 $ 34 $ 138 Interest cost 105 111 292 Amortization of prior service cost (5 ) (5 ) - Recognized net actuarial (gain) loss (160 ) (188 ) 190 Net periodic benefit income (cost) $ (24 ) $ (48 ) $ 620 Weighted-average assumption used to determine benefit obligation: 2015 2014 Discount rate 4.25 % 4.25 % Rate of compensation increase NA NA Post-retirement benefits Weighted-average assumptions used to determine benefit costs: 2015 2014 Discount rate 4 % 5 % The following table gives the Health Care Cost Trend, which is applied to gross charges, net claims and retiree paid premiums to reflect the Company’s past practice and stated ongoing intention to maintain relatively constant cost sharing between the Company and retirees: Health care trend rate 2015 2014 Initial Pre-65 9 % 9 % Post-65 8 % 8 % Ultimate (pre and post-65) 5 % 5 % Years to ultimate Pre-65 8 8 Post-65 6 6 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid, net of participant contributions: FYE Company benefits (dollars in thousands) 2016 $ 161 2017 154 2018 165 2019 163 2020 160 2021-2026 975 $ 1,778 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-percentage-point 1-percentage-point increase decrease (dollars in thousands) Effect on total of service and interest cost $ 13 $ (6 ) Effect on post-retirement benefit obligation 245

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements Under Banking Regulations [Abstract]
REGULATORY MATTERS	NOTE 18 – REGULATORY CAPITAL The Company and the Bank are each required to comply with applicable capital adequacy standards established by the Federal Reserve Board. The current risk-based capital standards applicable to the Company and the Bank, parts of which are currently in the process of being phased-in, are based on the December 2010 final capital framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision (the “Basel Committee”). Prior to January 1, 2015, the risk-based capital standards applicable to the Company and the Bank (the “general risk-based capital rules”) were based on the 1988 Capital Accord, known as Basel I, of the Basel Committee. In July 2013, the federal bank regulators approved final rules (the “Basel III Capital Rules”) implementing the Basel III framework as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revised the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and the Bank, as compared to the general risk-based capital rules. The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements, (iii) define CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, and (iv) expand the scope of the deductions/adjustments to capital as compared to existing regulations. Under the Basel III Capital Rules, the minimum capital ratios effective as of January 1, 2015 are: 4.5% CET1 to risk-weighted assets; 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”). The Basel III Capital Rules also introduced a new “capital conservation buffer”, composed entirely of CET1, on top of these minimum risk-weighted asset ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is only applicable to certain covered institutions and does not have any current applicability to the Company or the Bank. Banking institutions with a ratio of CET1 to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company and the Bank to maintain an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, (iii) a minimum ratio of Total capital to risk-weighted assets of at least 10.5%; and (iv) a minimum leverage ratio of 4%. The Basel III Capital Rules also provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that certain deferred tax assets and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1. Implementation of the deductions and other adjustments to CET1 began on January 1, 2015 and will be phased-in over a 4-year period (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). In addition, under the general risk-based capital rules, the effects of accumulated other comprehensive income items included in capital were excluded for the purposes of determining regulatory capital ratios. Under the Basel III Capital Rules, the effects of certain accumulated other comprehensive income items are not excluded; however, non-advanced approaches banking organizations, including the Company and the Bank, are able to make a one-time permanent election to continue to exclude these items. Both the Company and the Bank have made this election in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of their available-for-sale securities portfolio. The Basel III Capital Rules prescribe a standardized approach for risk weightings that expanded the risk-weighting categories from the general risk-based capital rules to a much larger and more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset categories. Management believes that, as of December 31, 2015, the Company and the Bank would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements had been in effect. Actual capital amounts and ratios are presented in the table below. Management believes, as of December 31, 2015, that the Company and the Bank met the guidelines to which they were subject. Minimum Minimum to be (Dollars in thousands) Actual capital requirement well capitalized As of December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 (to Risk weighted assets) Consolidated $ 109,960 13.3 % $ 37,256 4.5 % $ - - Bank 106,918 12.9 % 37,177 4.5 % 53,699 6.5 % Total capital (to Risk weighted Assets) Consolidated 118,594 14.3 % 66,234 8.0 % - - Bank 115,552 14.0 % 66,092 8.0 % 82,615 10.0 % Tier 1 capital (to Risk weighted assets) Consolidated 109,960 13.3 % 49,675 6.0 % - - Bank 106,918 12.9 % 49,569 6.0 % 66,092 8.0 % Tier 1 capital (to average assets) Consolidated 109,960 8.9 % 49,599 4.0 % - - Bank 106,918 8.7 % 49,420 4.0 % 61,775 5.0 % As of December 31, 2014 Total Capital (to Risk weighted assets) Consolidated $ 115,532 14.8 % $ 62,628 8.0 % $ - - Bank 112,554 14.4 % 62,628 8.0 % 78,285 10.0 % Tier 1 Capital (to Risk weighted assets) Consolidated 107,598 13.7 % 31,314 4.0 % - - Bank 104,620 13.4 % 31,314 4.0 % 46,971 6.0 % Tier 1 Capital (to average assets) Consolidated 107,598 9.7 % 44,513 4.0 % - - Bank 104,620 9.2 % 45,707 4.0 % 57,133 5.0 % The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2015, approximately $8,056 of retained earnings were available for dividend declaration without prior approval.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 19 – SUBSEQUENT EVENTS FASB ASC Topic 855, “Subsequent Events”, established general standards of accounting for a disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after December 31, 2015, through the date of the issued financial statements. During this period there were no material recognizable subsequent events that required recognition or disclosures in the December 31, 2015 financial statements.

GENERAL AND SUMMARY OF SIGNIF29

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations The Company is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, First Farmers and Merchants Bank (the “Bank”). The Bank is primarily engaged in providing a full range of banking and financial services, including lending, investing of funds, obtaining deposits, trust and wealth management operations, and other financing activities to individual and corporate customers in the Middle Tennessee area. The Bank is subject to competition from other financial institutions. The Company and Bank are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. On November 20, 2015, the Company announced its Board of Directors approved a corporate reorganization plan (the “Plan”) providing for the termination of the Company’s reporting obligations under the Securities Exchange Act of 1934 (the “Exchange Act”). Under the Plan, holders of fewer than 400 shares of Company common stock will receive cash in exchange for their shares in an amount determined based on a valuation by an independent third party. Shareholders owning 400 or more shares will be unaffected by the Plan. The Plan will be considered by its shareholders at the Company’s 2016 annual meeting.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements present the accounts of the Company and its wholly-owned subsidiary, First Farmers and Merchants Bank. The Bank has the following direct and indirect subsidiaries: F&M West, Inc., Maury Tenn, Inc., and Maury Tenn Properties, Inc. Noncontrolling interests consist of preferred shares in Maury Tenn Properties, Inc. that are owned by third parties and Maury Tenn, Inc. The preferred shares in Maury Tenn Properties, Inc. receive dividends, which are included in the consolidated statements of income. Intercompany accounts and transactions have been eliminated in consolidation. Certain items in prior financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on net income.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management of the Company and the Bank to make estimates and assumptions that affect the reported amounts of assets and liabilities. Those estimates and assumptions also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan and lease losses, the fair value of financial instruments, the valuation of foreclosed real estate, valuation of goodwill, valuation of deferred tax assets and the liability related to post-retirement benefits.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s banking activities include granting commercial, residential, and consumer loans to customers primarily located in Middle Tennessee and northern Alabama. The Company manages its portfolio and product mix in a manner to reduce economic risk. Concentrations of credit, as defined for regulatory purposes, are reviewed quarterly by management to ensure that internally established limits are not exceeded. At December 31, 2015, our concentrations of commercial real estate, rental and leasing loans were 130.1% of Tier 1 Capital plus the allowance for loan and lease losses. Health care and social assistance loans were 39.1%. Construction loans were 46.6%. Construction loans were 27.7%. Wholesale trade credits were 28.0%. These percentages are within our internally established limits regarding concentrations of credit. Loans secured by non-farm, non-residential real estate comprised 22.0% of the loan portfolio at December 31, 2015. Management remains comfortable with the real estate exposure levels within the commercial loan portfolio. Management believes the commercial real estate portion remains well diversified across several different property types and several different geographic markets.
Cash and Due From Banks	Cash and Due From Banks Included in cash and due from banks are reserve amounts that are required to be maintained in the form of cash and/or balances due from the Federal Reserve Bank and other banks. At December 31, 2015, the Bank’s required reserve was $2.4 million at the Federal Reserve. From time to time throughout the year, the Bank’s balances due from other financial institutions exceeded Federal Deposit Insurance Corporation (FDIC) insurance limits. The Bank had $24.5 million of federal funds sold as of December 31, 2015. Federal funds sold are essentially uncollateralized loans to other financial institutions.
Cash Equivalents	Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents include cash on hand, cash due from banks and federal funds sold. Federal funds are sold for one-day periods.
Securities	Securities Certain debt securities that management has the intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost which the Company does not intend to sell, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. If declines in fair value are other-than-temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. For available-for-sale and held-to-maturity debt securities that management has no intent to sell and believes that the Company more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security based on cash flow projections.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff is reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan and lease losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Discounts and premiums on purchased commercial loans are amortized to income using the interest method over the remaining period to contractual maturity and adjusted for anticipated prepayments.
Allowance for Loan and Lease Losses	Allowance for Loan and Lease Losses The allowance for loan and lease losses is established through provisions for loan and lease losses charged against income. Loan losses are charged against the allowance when management determines that the uncollectibility of a loan has been confirmed. Subsequent recoveries, if any, are credited to the allowance account in the period received. The adequacy of the allowance for loan and lease losses is evaluated quarterly in conjunction with loan review reports and evaluations that are discussed in meetings with loan officers, credit administration and the Bank’s Board of Directors. The Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors are considered in this evaluation. This process is inherently subjective as it requires material estimates that are susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. The allowance for loan and lease losses is maintained at a level believed by management to be adequate to absorb estimated losses inherent in the loan portfolio. A loan is considered impaired when it is probable that the Bank will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to the Bank, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell the collateral then transferred to other real estate owned or other repossessed assets. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off upon reaching no later than 120 days (4 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 Bank, a charge-off is taken with the remaining balance, reflecting the fair value less estimated costs to sell, transferred to other real estate owned.
Loans Held-for-sale	Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. The Company does not retain servicing rights on loans sold. There were no loans held for sale at December 31, 2015. Loans held for sale at December 31, 2014 totaled $354,000.
Other Real Estate	Other Real Estate Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. When foreclosed properties are acquired current appraisals are obtained on the properties. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected selling costs. Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 24 months.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. The provision for depreciation is computed principally on an accelerated method over the estimated useful life of an asset, which ranges from 15 to 39 years for buildings and from three to 25 years for equipment. Costs of major additions and improvements are capitalized. Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses from the disposition of property are reflected in operations, and the asset accounts and related allowances for depreciation are reduced.
Federal Reserve and Federal Home Loan Bank Stock	Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. At December 31, 2015 and 2014 Federal Reserve and Federal Home Loan Bank stock totaled $3.9 million.
Goodwill	Goodwill Goodwill is evaluated annually for impairment. Quantitative and qualitative assessments are performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.
Income Taxes	Income Taxes The Company files consolidated income tax returns with its subsidiaries. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal tax examinations and state and local tax examinations by tax authorities for years before 2012. The Company recognizes interest and penalties on income taxes as a component of income tax expense. As of December 31, 2015, the Company has accrued no interest and no penalties related to uncertain tax positions.
Securities Sold Under Agreements to Repurchase	Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction.
Fair Value Measurements	Fair Value Measurements Financial Accounting Standards Board (“FASB”) ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. See Note 12 – Fair Value Measurement. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as input, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time.
Earnings Per Share	Earnings Per Share Earnings per share represents income available to shareholders divided by the weighted average number of shares of Company common stock outstanding during the period. Fully diluted earnings per share is not presented as there are no common stock equivalents. The following is a summary of the earnings per share calculation for the periods presented: Years ended December 31, 2015 2014 2013 (dollars in thousands, expect per share data) Earnings per share calculation: Numerator – Net income available to common shareholders $ 10,306 $ 10,242 $ 9,611 Denominator – Weighted average common shares outstanding 4,832,217 4,963,826 5,110,849 Net income per common share available to common shareholders $ 2.13 $ 2.06 $ 1.88 In 2015, the Company renewed a plan to repurchase shares of its common stock. The plan allowed the purchase of up to 200,000 shares. The Company purchased 161,074, 120,436, and 158,988 shares in 2015, 2014, and 2013, respectively.
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss), net of applicable income tax expenses or benefits. Other comprehensive income (loss) includes unrealized appreciation or depreciation on available-for-sale securities and changes in the net actuarial gain or loss of the post-retirement benefit obligation. The components of accumulated other comprehensive loss, included in shareholder’s equity, are as follows: Years ended December 31, 2015 2014 2013 (dollars in thousands) Net unrealized losses on available-for-sale securities $ (4,269 ) $ (5,517 ) $ (17,178 ) Net actuarial gain on unfunded portion of post-retirement benefit obligation 2,183 2,062 2,542 (2,086 ) (3,455 ) (14,636 ) Tax benefit 803 1,329 5,635 Accumulated other comprehensive loss $ (1,283 ) $ (2,126 ) $ (9,001 )
Transfers Between Fair Value Hierarchy Levels	Transfers Between Fair Value Hierarchy Levels Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period end date.
Segment Reporting	Segment Reporting Management analyzes the operations of the Company assuming one operating segment, community lending services.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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) ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-2, Leases (Topic 842). Topic 606

GENERAL AND SUMMARY OF SIGNIF30

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of basic earnings per share	The following is a summary of the earnings per share calculation for the periods presented: Years ended December 31, 2015 2014 2013 (dollars in thousands, expect per share data) Earnings per share calculation: Numerator – Net income available to common shareholders $ 10,306 $ 10,242 $ 9,611 Denominator – Weighted average common shares outstanding 4,832,217 4,963,826 5,110,849 Net income per common share available to common shareholders $ 2.13 $ 2.06 $ 1.88
Schedule of components of accumulated other comprehensive income (loss)	Amounts reclassified from AOCI and the affected line items in the statements of income during the periods presented are as follows: Amounts reclassified from AOCI Years ended December 31, Affected line item in the December 31, 2014 December 31, Statements of income Unrealized gains on available-for-sale Realized gain on sale of securities $ 534 $ 652 $ 829 securities (206 ) (251 ) (319 ) Tax expense $ 328 $ 401 $ 510 Net reclassified amount Amortization of defined benefit pension items $ 160 $ 188 $ (190 ) Actuarial gains (losses) (62 ) (72 ) 73 Tax (expense) benefit $ 98 $ 116 $ (117 ) Net reclassified amount Total reclassifications out of AOCI $ 426 $ 517 $ 393

RECLASSIFICATIONS FROM ACCUMU31

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]
Schedule of components of accumulated other comprehensive income (loss)	Amounts reclassified from AOCI and the affected line items in the statements of income during the periods presented are as follows: Amounts reclassified from AOCI Years ended December 31, Affected line item in the December 31, 2014 December 31, Statements of income Unrealized gains on available-for-sale Realized gain on sale of securities $ 534 $ 652 $ 829 securities (206 ) (251 ) (319 ) Tax expense $ 328 $ 401 $ 510 Net reclassified amount Amortization of defined benefit pension items $ 160 $ 188 $ (190 ) Actuarial gains (losses) (62 ) (72 ) 73 Tax (expense) benefit $ 98 $ 116 $ (117 ) Net reclassified amount Total reclassifications out of AOCI $ 426 $ 517 $ 393

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and estimated fair value of securities	The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2015 and 2014 are summarized as follows: Gross Gross Amortized unrealized unrealized Fair cost gains losses value December 31, 2015: (dollars in thousands) Available-for-sale securities: U.S. government sponsored agencies $ 132,543 $ 40 $ (1,526 ) $ 131,057 U.S. government sponsored agency mortgage backed 171,620 6 (4,559 ) 167,067 securities States and political subdivisions 71,493 1,916 (90 ) 73,319 Corporate bonds 23,632 54 (110 ) 23,576 $ 399,288 $ 2,016 $ (6,285 ) $ 395,019 Held-to-maturity securities: States and political subdivisions $ 4,059 $ 33 $ (3 ) $ 4,089 December 31, 2014: Available-for-sale securities: U.S. government sponsored agencies $ 162,289 $ 50 $ (3,085 ) $ 159,254 U.S. government sponsored agency mortgage backed securities 172,035 64 (4,129 ) 167,970 State 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 December 31, 2015 and 2014: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) ` Available-for-sale securities: U.S. government sponsored agencies $ 70,454 $ (425 ) $ 43,080 $ (1,101 ) $ 113,534 $ (1,526 ) U.S. government sponsored agency mortgage backed securities 74,860 (1,073 ) 90,125 (3,486 ) 164,985 (4,559 ) States and political subdivisions 8,472 (64 ) 2,556 (26 ) 11,028 (90 ) Corporate bonds 14,504 (87 ) 1,854 (23 ) 16,358 (110 ) $ 168,290 $ (1,649 ) $ 137,615 $ (4,636 ) $ 305,905 $ (6,285 ) Held-to-maturity securities: States and political subdivisions $ 438 $ (3 ) $ - $ - $ 438 $ (3 ) December 31, 2014: Available-for-sale securities: U.S. government sponsored 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 and held-to-maturity securities at December 31, 2015 and 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Held-to-maturity Amortized Fair Amortized Fair December 31, 2015 cost value cost value (dollars in thousands) Within one year $ 5,678 $ 5,695 $ 475 $ 476 One to five years 132,685 131,605 984 997 Five to ten years 49,992 50,396 610 611 After ten years 39,313 40,256 1,990 2,005 Mortgage-backed securities 171,620 167,067 - - $ 399,288 $ 395,019 $ 4,059 $ 4,089
Schedule of gross realized gains and losses recognized in income	The book value of securities sold under agreements to repurchase amounted to $30.5 million and $35.0 million at December 31, 2015 and 2014, respectively. Years ended December 31, 2015 2014 2013 (dollars in thousands) Gross gains recognized on sales of securities $ 579 $ 737 $ 1,026 Gross losses recognized on sales of securities (45 ) (85 ) (197 ) Net realized gains on sales of securities available-for-sale $ 534 $ 652 $ 829

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Schedule of loans by category	The following table presents the Bank’s loans by category as of the periods presented: December 31, December 31, 2015 2014 Commercial (dollars in thousands) Commercial and industrial $ 127,899 $ 99,788 Non-farm, nonresidential real estate 161,009 163,461 Construction and development 51,330 50,424 Commercial loans secured by real estate 28,091 27,937 Other commercial 60,325 41,185 Total commercial 428,654 382,795 Residential Consumer loans 9,914 9,536 Single family residential 260,254 229,559 Other retail 32,444 30,162 Total residential and consumer 302,612 269,257 $ 731,266 $ 652,052 Less: Allowance for possible loan and lease losses (8,634 ) (7,934 ) Total net loans $ 722,632 $ 644,118
Schedule of details regarding the aging loan portfolio	The following table provides details regarding the aging of the Bank’s loan portfolio: 30-59 60-89 90 days Total days days and greater past Total December 31, 2015 past due past due past due due Current Loans (dollars in thousands) Commercial: Commercial and industrial $ 245 $ 25 $ 245 $ 515 $ 127,384 $ 127,899 Non-farm, non-residential real estate 2,486 123 279 2,888 158,121 161,009 Construction and development 7 - - 7 51,323 51,330 Commercial loans secured by estate real estate 24 8 163 195 27,896 28,091 Other commercial - - - - 60,325 60,325 Total commercial loans 2,762 156 687 3,605 425,049 428,654 Retail: Consumer 43 36 7 86 9,828 9,914 Single family residential 1,918 664 164 2,746 257,508 260,254 Other retail 160 148 54 362 32,082 32,444 Total retail loans 2,121 848 225 3,194 299,418 302,612 Total $ 4,883 $ 1,004 $ 912 $ 6,799 $ 724,467 $ 731,266 30-59 60-89 90 days Total days days and greater past Total December 31, 2014 past due past due past due due Current loans (dollars in thousands) 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 estate real estate 92 56 172 320 27,617 27,937 Other commercial 10 - 1,092 1,102 40,083 41,185 Total commercial loans 778 264 3,022 4,064 378,731 382,795 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 Total retail loans 2,433 402 506 3,341 265,916 269,257 Total $ 3,211 $ 666 $ 3,528 $ 7,405 $ 644,647 $ 652,052
Summary of impaired loans by loan type	The following table summarizes the impaired loans by loan type: Unpaid Recorded Recorded Average contractual investment investment Total recorded principal with no with recorded Related investment Interest Interest December 31, 2015 balance allowance allowance investment allowance year to date received accrued (dollars in thousands) Commercial: Commercial and industrial $ 432 $ 60 $ 262 $ 322 $ 28 $ 344 $ 17 $ 22 Non-farm, non-residential real estate 469 401 - 401 - 428 17 24 Commercial loans secured by real estate 192 - 163 163 29 169 6 13 Other commercial - - - - - - - - Commercial total 1,093 461 425 886 57 941 40 59 Retail: Single family residential 1,612 510 830 1,340 102 1,415 81 83 Other retail 130 74 - 74 - 79 6 7 Retail total 1,742 584 830 1,414 102 1,494 87 90 Total $ 2,835 $ 1,045 $ 1,255 $ 2,300 $ 159 $ 2,435 $ 127 $ 149 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 December 31, 2013 balance allowance allowance investment allowance year to date received accrued Commercial: Commercial and industrial $ 2,190 $ 1,338 $ 234 $ 1,572 $ 16 $ 1,620 $ 23 $ 134 Non-farm, non-residential real estate 3,236 1,155 1,551 2,706 282 2,819 157 168 Construction and development 461 461 - 461 44 556 30 30 Other commercial 3,834 3,310 178 3,488 - 3,704 225 241 Commercial total 9,721 6,264 1,963 8,227 342 8,699 435 573 Retail: Single family residential 1,121 568 419 987 118 1,044 52 55 Other retail 11 - 11 11 11 11 - - Retail total 1,132 568 430 998 129 1,055 52 55 Total $ 10,853 $ 6,832 $ 2,393 $ 9,225 $ 471 $ 9,754 $ 487 $ 628
Summary of nonaccrual loans by loan type	Non-accrual loans, segregated by class of loans, were as follows: December 31, 2015 December 31, 2014 Commercial (dollars in thousands) Commercial and industrial $ 322 $ 1,428 Non-farm, nonresidential real estate 401 409 Commercial loans secured by real estate 163 172 Other commercial - 1,092 Total commercial loans 886 3,101 Residential Consumer loans 74 42 Single family residential 1,237 2,237 Total residential loans 1,311 2,279 Total non-accrual loans $ 2,197 $ 5,380
Schedule of troubled debt restructurings	Presented below, segregated by class of loans, are troubled debt restructurings: Twelve months ended December 31, 2015 Post- Net Number modification charge-offs of outstanding resulting in modifications balance modifications (dollars in thousands) Retail: Single family residential 2 $ 111 $ - Total 2 $ 111 $ - Twelve months ended December 31, 2014 Post- Net Number modification charge-offs of outstanding resulting in modifications balance modifications (dollars in thousands) Commercial: Nonfarm nonresidential 1 $ 4,357 - Retail: Single family residential 1 316 3 Total 2 $ 4,673 $ 3
Schedule of risk grades and classified loans	The following table presents risk grades and classified loans by class: December 31, 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 $ 1,263 $ 312 $ - $ 103 $ 77 $ 1,755 Risk rating 2 - modest risk 5,633 295 - - 49,017 54,945 Risk rating 3 - average risk 54,952 43,253 9,328 2,529 6,004 116,066 Risk rating 4 - acceptable risk 60,922 105,014 40,604 24,895 5,066 236,501 Risk rating 5 - pass/watch 4,793 11,532 1,398 471 - 18,194 Risk rating 6 - special mention - 108 - - 161 269 Risk rating 7 - substandard 336 495 - 93 - 924 Risk rating 8 - doubtful - - - - - - TOTALS $ 127,899 $ 161,009 $ 51,330 $ 28,091 $ 60,325 $ 428,654 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 $ 9,896 $ 258,216 $ 32,388 $ 300,500 Risk rated 7* 18 2,038 56 2,112 TOTALS $ 9,914 $ 260,254 $ 32,444 $ 302,612 *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, the total includes all risk rated 7 loans, of which may be performing or non-performing. **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 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, the total includes all risk rated 7 loans, of which may be performing or non-performing. **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 table summarizes the allocation in the ALLL by loan segment: Residential real Consumer and December 31, 2015 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 6,719 $ 1,053 $ 162 $ 7,934 Less: charge-offs - (34 ) (13 ) (47 ) Add: recoveries 683 12 22 717 Add: provisions - 30 - 30 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential real Consumer and December 31, 2014 Commercial estate other 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 Residential real Consumer and December 31, 2013 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 7,528 $ 1,109 $ 172 $ 8,809 Less: charge-offs (222 ) (27 ) (49 ) (298 ) Add: recoveries 53 2 29 84 Add: provisions - - - - Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595
Schedule of recorded investment bsed on impairment methodology	The following tables detail the amount of the ALLL allocated to each portfolio segment as of December 31, 2015, 2014 and 2013, disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 57 $ 102 $ - $ 159 Loans collectively evaluated for impairment 7,345 959 171 8,475 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential Consumer and December 31, 2014 Commercial real estate 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 Ending balance $ 6,719 $ 1,053 $ 162 $ 7,934 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 342 $ 118 $ 11 $ 471 Loans collectively evaluated for impairment 7,017 966 141 8,124 Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595 The following table shows loans as of December 31, 2015, 2014 and 2013 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 886 $ 1,340 $ 74 $ 2,300 Loans collectively evaluated for impairment 427,768 258,914 42,284 728,966 Ending balance $ 428,654 $ 260,254 $ 42,358 $ 731,266 Residential Consumer and December 31, 2014 Commercial real estate 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 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,227 $ 987 $ 11 $ 9,225 Loans collectively evaluated for impairment 346,148 212,776 38,617 597,541 Ending balance $ 354,375 $ 213,763 $ 38,628 $ 606,766

ALLOWANCE FOR LOAN AND LEASE 34

ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	12 Months Ended
	Dec. 31, 2015
Allowance For Loan And Lease Losses [Abstract]
Schedule of allowance loan and lease losses	The following table summarizes the allocation in the ALLL by loan segment: Residential real Consumer and December 31, 2015 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 6,719 $ 1,053 $ 162 $ 7,934 Less: charge-offs - (34 ) (13 ) (47 ) Add: recoveries 683 12 22 717 Add: provisions - 30 - 30 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential real Consumer and December 31, 2014 Commercial estate other 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 Residential real Consumer and December 31, 2013 Commercial estate other retail Totals (dollars in thousands) Beginning balance $ 7,528 $ 1,109 $ 172 $ 8,809 Less: charge-offs (222 ) (27 ) (49 ) (298 ) Add: recoveries 53 2 29 84 Add: provisions - - - - Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595
Schedule of recorded investment bsed on impairment methodology	The following tables detail the amount of the ALLL allocated to each portfolio segment as of December 31, 2015, 2014 and 2013, disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 57 $ 102 $ - $ 159 Loans collectively evaluated for impairment 7,345 959 171 8,475 Ending balance $ 7,402 $ 1,061 $ 171 $ 8,634 Residential Consumer and December 31, 2014 Commercial real estate 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 Ending balance $ 6,719 $ 1,053 $ 162 $ 7,934 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 342 $ 118 $ 11 $ 471 Loans collectively evaluated for impairment 7,017 966 141 8,124 Ending balance $ 7,359 $ 1,084 $ 152 $ 8,595 The following table shows loans as of December 31, 2015, 2014 and 2013 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology: Residential Consumer and December 31, 2015 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 886 $ 1,340 $ 74 $ 2,300 Loans collectively evaluated for impairment 427,768 258,914 42,284 728,966 Ending balance $ 428,654 $ 260,254 $ 42,358 $ 731,266 Residential Consumer and December 31, 2014 Commercial real estate 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 Residential Consumer and December 31, 2013 Commercial real estate other retail Totals (dollars in thousands) Loans individually evaluated for impairment $ 8,227 $ 987 $ 11 $ 9,225 Loans collectively evaluated for impairment 346,148 212,776 38,617 597,541 Ending balance $ 354,375 $ 213,763 $ 38,628 $ 606,766

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of corporation's assets by category	The following table presents the Company’s assets by category: 2015 2014 (dollars in thousands) Land $ 9,296 $ 9,152 Premises 22,951 22,858 Furniture and equipment 10,375 9,722 Leasehold improvements 1,846 1,859 Construction in progress 278 16 44,746 43,607 Less accumulated depreciation (19,228 ) (17,834 ) $ 25,518 $ 25,773

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Schedule of related party transactions	Activity for related party transactions for the periods presented are: 2015 2014 (dollars in thousands) Related party extensions of credit, beginning of period $ 4,774 $ 3,822 New loans 879 2,081 Repayments (1,393 ) (1,129 ) Related party extension of credit, end of period $ 4,260 $ 4,774

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2015
Leases [Abstract]
Schedule of future minimum rental payments for operating leases	Future minimum lease commitments as of December 31, 2015 under all noncancelable operating leases with initial terms of one year or more are shown in the following table: Year Lease payments (dollars in thousands) 2016 $ 358 2017 320 2018 294 2019 291 2020 295 Thereafter 3,187 Total $ 4,745

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense (benefit)	he following table presents components of income tax expense attributable to continuing operations: 2015 2014 2013 Current $ 2,735 $ 3,011 $ 915 Deferred 614 545 1,785 Total provision for income taxes 3,349 $ 3,556 $ 2,700
Schedule of Deferred Tax Asset	Deferred tax effects of principal temporary differences 2015 2014 2013 Allowance for possible loan and lease losses $ 3,324 $ 3,055 $ 3,309 Deferred compensation 2,563 2,557 2,516 Write down of other real estate - 9 314 Deferred gain on OREO sale - - 188 Amortization of core deposit intangible (1,747 ) (1,577 ) (272 ) Recognition of nonaccrual loan income 119 129 111 Unrealized losses on available-for-sale securities 1,644 2,124 6,613 Post-retirement benefit obligation 841 986 890 Accelerated depreciation (691 ) (973 ) (822 ) Amortization of goodwill (1,229 ) (1,109 ) (2,591 ) Dividend income - F&M West - - (372 ) Prepaid expenses (135 ) (135 ) (178 ) Other (733 ) 31 240 Net deferred tax asset $ 3,956 $ 5,097 $ 9,946
Schedule of Effective Income Tax Rate Reconciliation	Reconciliation of total income taxes reported with the amount of income taxes computed at the Federal statutory rate (34% each year) 2015 2014 2013 Tax expense at statutory rate $ 4,643 $ 4,692 $ 4,191 Increase (decrease) in taxes resulting from: Tax-exempt interest (1,226 ) (1,060 ) (1,144 ) Nondeductible interest expense 19 14 18 Employee benefits (80 ) (128 ) (196 ) Other nondeductible expenses (nontaxable income) - net 28 38 11 State income taxes net of federal tax benefit 106 - - Dividend income exclusion - - - Other (141 ) - (180 ) Total provision for income taxes $ 3,349 $ 3,556 $ 2,700 Effective tax rate 24.4 % 25.8 % 21.9 %

BORROWED FUNDS (Tables)

BORROWED FUNDS (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of short-term borrowings	The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of December 31, 2015, disaggregated by the class of collateral pledged. Overnight and December 31, 2015 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 24,177 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 24,177 Overnight and December 31, 2014 Continuous (dollars in thousands) Class of collateral pledged: U.S. government agencies $ 22,834 U.S. government sponsored agency mortgage backed securities - States and political subdivisions - Corporate bonds - $ 22,834

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 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 by the level within the fair value hierarchy utilized to measure fair value: Recurring fair value measurements at December 31, 2015 Total carrying Level 1 Level 2 Level 3 (dollars in thousands) Assets Available-for-sale investment securities: U.S. government sponsored agencies $ 131,057 $ - $ 131,057 $ - U.S. government sponsored agency mortgage backed securities 167,067 - 167,067 - State and political subdivision 73,319 - 73,319 - Corporate bonds 23,576 - 23,576 - Total assets at fair value $ 395,019 $ - $ 395,019 $ - Recurring fair value measurements at December 31, 2014 Total carrying Level 1 Level 2 Level 3 (dollars in thousands) Assets Available-for-sale investment securities: U.S. government sponsored agencies $ 159,254 $ - $ 159,254 $ - U.S. government sponsored agency - - mortgage backed securities 167,970 - 167,970 - State and political subdivision 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 December 31, 2015 and December 31, 2014, by the level within the fair value hierarchy utilized to measure fair value: December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Impaired loans (collateral-dependent) $ - $ - $ 672 $ 672 December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Impaired loans (collateral-dependent) $ - $ - $ 1,184 $ 1,184 Impaired Loans (Collateral-Dependent)
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 Range Valuation Unobservable (weighted December 31, 2015 Fair value technique(s) input average) (dollars in thousands) Market comparable Marketability 25.0% - 46.0% Impaired loans (collateral-dependent) $ 672 properties discount (41.0%) Quantitative Information about Level 3 fair value measurements Range Valuation Unobservable (weighted December 31, 2014 Fair value technique(s) input average) (dollars in thousands) Market comparable Marketability 5.0% - 10.0% Impaired loans (collateral-dependent) $ 1,184 properties discount (7%)
Schedule of estimated fair values of the financial instruments	The following tables present estimated fair values of the Company’s financial instruments indicate the levels within the fair value hierarchy of the valuation techniques: Fair value measurements at December 31, 2015 using Quoted prices Significant in active other markets for observable Significant Carrying identical assets inputs unobservable amount (Level 1) (Level 2) inputs (Level 3) (dollars in thousands) Financial assets Cash and due from banks $ 19,453 $ 19,453 $ - $ - Interest-bearing deposits in other banks 18,299 18,299 - - Federal funds sold 24,476 24,476 - - Federal Home Loan Bank and Federal Reserve Bank stock 3,879 - 3,879 - Securities available-for-sale 395,019 - 395,019 - Securities held-to-maturity 4,059 - 4,089 - Loans, net 722,632 - - 718,956 Accrued interest receivable 4,540 - 4,540 - Financial liabilities Non-interest bearing deposits 239,226 239,226 - - Interest bearing deposits 864,575 - 864,036 - Repurchase agreements 24,177 - 24,177 - Accrued interest payable 503 - 503 - Off-balance sheet credit related instruments: Commitments to extend credit and letters of credit - - - - Fair value measurements at December 31, 2014 using Quoted prices Significant in active other markets for observable Significant Carrying identical assets inputs unobservable amount (Level 1) (Level 2) inputs (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 Non-interest 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 - - - -

QUARTERLY RESULTS OF OPERATIO41

QUARTERLY RESULTS OF OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of unaudited quarterly interim financial information for the Corporation	The following table presents unaudited quarterly interim financial information for the Company for the periods presented: March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Total (dollars in thousands) Interest income $ 9,303 $ 9,720 $ 9,817 $ 9,842 $ 38,682 Interest expense 565 556 556 548 2,225 Net interest income 8,738 9,164 9,261 9,294 36,457 Provision for possible loan and lease losses, net - - - 30 30 Non-interest income 2,885 2,774 2,907 2,877 11,443 Non-interest expenses 8,030 8,559 8,524 9,102 34,215 Income before income taxes 3,593 3,379 3,644 3,039 13,655 Income taxes 976 677 925 771 3,349 Net income $ 2,617 $ 2,702 $ 2,719 $ 2,268 $ 10,306 Basic earnings per share $ 0.53 $ 0.56 $ 0.57 $ 0.48 $ 2.13 Weighted average shares outstanding 4,897,245 4,853,265 4,808,352 4,771,648 4,832,217 March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Total (dollars in thousands) Interest income $ 9,042 $ 9,103 $ 9,351 $ 9,284 $ 36,780 Interest expense 620 623 605 580 2,428 Net interest income 8,422 8,480 8,746 8,704 34,352 Provision for possible loan and lease losses, net - - - - - Non-interest income 2,651 3,091 3,177 2,808 11,727 Non-interest expenses 8,098 8,033 8,166 7,984 32,281 Income before income taxes 2,975 3,538 3,757 3,528 13,798 Income taxes 713 941 1,031 871 3,556 Net income $ 2,262 $ 2,597 $ 2,726 $ 2,657 $ 10,242 Basic earnings per share $ 0.45 $ 0.52 $ 0.55 $ 0.54 $ 2.06 Weighted average shares outstanding 5,017,789 4,977,506 4,934,815 4,909,910 4,963,826

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
Schedule of maturities of time deposits of $100 or more	The Bank does not have any foreign offices and all deposits are serviced in its 19 domestic offices. Maturities of time deposits of $100,000 or more at December 31, 2015 and 2014 are as follows: 2015 2014 (dollars in thousands) Under 3 months $ 24,805 $ 29,629 3 to 12 months 70,447 71,489 Over 12 months 16,755 18,399 Total $ 112,007 $ 119,517
Schedule of maturities of interest-bearing time deposits	The following table presents maturities of interest-bearing time deposits as of December 31, 2015: (dollars in thousands) 2016 $ 172,931 2017 17,972 2018 6,056 2019 6,237 2020 8,090 Thereafter 10 Total $ 211,296

CONDENSED FINANCIAL INFORMATI43

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Tables)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of condensed balance sheets	The following tables present the condensed balance sheets, statements of income, comprehensive income (loss), and cash flows of the Company: CONDENSED BALANCE SHEETS As of December 31, 2015 2014 (dollars in thousands) Cash $ 310 $ 271 Investment in bank subsidiary 114,655 111,512 Investment in credit life insurance company 54 54 Investment in other securities 17 17 Dividends receivable from bank subsidiary 1,754 1,813 Cash surrender value - life insurance 4,546 4,474 Total assets $ 121,336 $ 118,141 Liabilities Accrued liabilities $ 1,887 $ 1,839 Dividends payable 1,754 1,813 Total liabilities 3,641 3,652 Shareholders' equity Common stock - $10 par value, 8,000,000 shares authorized; 4,739,502 and 4,900,576 shares issued and outstanding, as of December 31, 2015 and December 31, 2014, respectively 47,395 49,006 Retained earnings 71,583 67,609 Accumulated other comprehensive loss (1,283 ) (2,126 ) Total shareholders' equity 117,695 114,489 Total liabilities and shareholders' equity $ 121,336 $ 118,141
Schedule of statements of income	CONDENSED STATEMENTS OF INCOME Years ended December 31, 2015 2014 2013 Operating income (dollars in thousands) Dividends from bank subsidiary $ 8,002 $ 7,038 $ 7,663 Other dividend income - 8 15 Other 72 65 65 Operating expenses (308 ) (279 ) (238 ) Income before equity in undistributed net income of bank subsidiary 7,766 6,832 7,505 Equity in undistributed net income of bank subsidiary 2,540 3,410 2,106 Net income $ 10,306 $ 10,242 $ 9,611
Schedule of statements of comprehensive income	ONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year ended December 31, 2015 2014 2013 (dollars in thousands) Net income for common shareholders $ 10,306 $ 10,242 $ 9,611 Other comprehensive income (loss) Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of 685, $4,742, and ($8,507), respectively 1,097 7,571 (13,589 ) Reclassification adjustment for realized gains included in net income, net of taxes of ($206), ($251) and ($319), respectively (328 ) (401 ) (510 ) Change in unfunded portion of post-retirement benefit obligations, net of taxes of $47, ($185) and $2,102, respectively 74 (295 ) 3,360 Other comprehensive income (loss) 843 6,875 (10,739 ) Total comprehensive income (loss) $ 11,149 $ 17,117 $ (1,128 )
Schedule of statements of cash flows	CO NDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2015 2014 2013 (dollars in thousands) Operating activities Net income for the year $ 10,306 $ 10,242 $ 9,611 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of bank subsidiary (2,540 ) (3,410 ) (2,106 ) Increase in cash surrender value of life insurance contracts (72 ) (65 ) (65 ) Increase (decrease) in other assets 59 245 (90 ) Increase in payables 288 18 134 Total adjustments (2,265 ) (3,212 ) (2,127 ) Net cash provided by operating activities 8,041 7,030 7,484 Financing activities Payment to repurchase common stock (4,408 ) (3,097 ) (3,722 ) Cash dividends paid (3,594 ) (3,685 ) (3,800 ) Net cash used by financing activities (8,002 ) (6,782 ) (7,522 ) Decrease in cash 39 248 (38 ) Cash at beginning of year 271 23 61 Cash at end of year $ 310 $ 271 $ 23

POST RETIREMENT BENEFIT PLAN (T

POST RETIREMENT BENEFIT PLAN (Tables)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of defined benefit plans disclosures	The following table provides further information about the plan: Post-retirement benefits 2015 2014 (dollars in thousands) Change in benefit obligation Benefit obligation at beginning of year $ 2,560 $ 2,313 Service cost 36 33 Interest cost 105 111 Expected benefits paid (174 ) (183 ) Actuarial gain (loss) (286 ) 286 Benefit obligation at end of year $ 2,241 $ 2,560 Change in fair value of assets Fair value of plans assets at beginning of year $ - $ - Employer contribution 174 183 Benefits paid (174 ) (183 ) Fair value of plan assets at end of year $ - $ - Reconciliation of funded status to benefit costs recognized Projected benefit obligation, end of year $ (2,241 ) $ (2,560 ) Fair value of assets, end of year - - Funded status, end of year $ (2,241 ) $ (2,560 )
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss)	Amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic benefit cost consist of: 2015 2014 (dollars in thousands) Unrecognized net actuarial gain $ (2,142 ) $ (2,016 ) Unrecognized prior service cost (41 ) (46 ) $ (2,183 ) $ (2,062 )
Schedule of statement of financial position	Amounts recognized in statement of financial position are as follows: 2015 2014 (dollars in thousands) Current liability $ - $ - Noncurrent liability (2,241 ) (2,560 ) $ (2,241 ) $ (2,560 )
Schedule of reconciliation of other comprehensive income	A reconciliation of other comprehensive income is as follows: Post-retirement benefits 2015 2014 2013 (dollars in thousands) Accumulated other comprehensive income (loss) beginning of year $ (2,062 ) $ (2,542 ) $ 2,920 Amortization of net actuarial gain (loss) 160 188 (190 ) Negative plan amendment gain - - (2,662 ) (Gain) loss incurred in current year (286 ) 287 (2,558 ) Prior service cost established in current year 5 5 (52 ) Other comprehensive income (loss) (121 ) 480 (5,462 ) Ending balance (before tax effects) $ (2,183 ) $ (2,062 ) $ (2,542 )
Schedule of components of net periodic benefit cost	Post-retirement benefits 2015 2014 2013 Components of net periodic benefit cost (dollars in thousands) Service cost $ 36 $ 34 $ 138 Interest cost 105 111 292 Amortization of prior service cost (5 ) (5 ) - Recognized net actuarial (gain) loss (160 ) (188 ) 190 Net periodic benefit income (cost) $ (24 ) $ (48 ) $ 620
Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year	Weighted-average assumption used to determine benefit obligation: 2015 2014 Discount rate 4.25 % 4.25 % Rate of compensation increase NA NA
Schedule of health care cost trend rates	Post-retirement benefits Weighted-average assumptions used to determine benefit costs: 2015 2014 Discount rate 4 % 5 %
Schedule of expected benefit payments	The following table gives the Health Care Cost Trend, which is applied to gross charges, net claims and retiree paid premiums to reflect the Company’s past practice and stated ongoing intention to maintain relatively constant cost sharing between the Company and retirees: Health care trend rate 2015 2014 Initial Pre-65 9 % 9 % Post-65 8 % 8 % Ultimate (pre and post-65) 5 % 5 % Years to ultimate Pre-65 8 8 Post-65 6 6
Schedule of effect of one-percentage-point change in assumed health care cost trend rates	The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid, net of participant contributions: FYE Company benefits (dollars in thousands) 2016 $ 161 2017 154 2018 165 2019 163 2020 160 2021-2026 975 $ 1,778

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements Under Banking Regulations [Abstract]
Schedule of actual capital amounts and ratios	Actual capital amounts and ratios are presented in the table below. Management believes, as of December 31, 2015, that the Company and the Bank met the guidelines to which they were subject. Minimum Minimum to be (Dollars in thousands) Actual capital requirement well capitalized As of December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 (to Risk weighted assets) Consolidated $ 109,960 13.3 % $ 37,256 4.5 % $ - - Bank 106,918 12.9 % 37,177 4.5 % 53,699 6.5 % Total capital (to Risk weighted Assets) Consolidated 118,594 14.3 % 66,234 8.0 % - - Bank 115,552 14.0 % 66,092 8.0 % 82,615 10.0 % Tier 1 capital (to Risk weighted assets) Consolidated 109,960 13.3 % 49,675 6.0 % - - Bank 106,918 12.9 % 49,569 6.0 % 66,092 8.0 % Tier 1 capital (to average assets) Consolidated 109,960 8.9 % 49,599 4.0 % - - Bank 106,918 8.7 % 49,420 4.0 % 61,775 5.0 % As of December 31, 2014 Total Capital (to Risk weighted assets) Consolidated $ 115,532 14.8 % $ 62,628 8.0 % $ - - Bank 112,554 14.4 % 62,628 8.0 % 78,285 10.0 % Tier 1 Capital (to Risk weighted assets) Consolidated 107,598 13.7 % 31,314 4.0 % - - Bank 104,620 13.4 % 31,314 4.0 % 46,971 6.0 % Tier 1 Capital (to average assets) Consolidated 107,598 9.7 % 44,513 4.0 % - - Bank 104,620 9.2 % 45,707 4.0 % 57,133 5.0 %

GENERAL AND SUMMARY OF SIGNIF46

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings per share calculation:
Numerator - Net income available to common shareholders									$ 10,306	$ 10,242	$ 9,611
Denominator - Weighted average common shares outstanding	4,771,648	4,808,352	4,853,265	4,897,245	4,909,910	4,934,815	4,977,506	5,017,789	4,832,217	4,963,826	5,110,849
Net income per common share available to common shareholders	$ 0.48	$ 0.57	$ 0.56	$ 0.53	$ 0.54	$ 0.55	$ 0.52	$ 0.45	$ 2.13	$ 2.06	$ 1.88

GENERAL AND SUMMARY OF SIGNIF47

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, before tax	$ (2,086)	$ (3,455)	$ (14,636)
Tax benefit	803	1,329	(5,635)
Accumulated other comprehensive loss	(1,283)	(2,126)	(9,001)
Net unrealized losses on available-for-sale securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, before tax	(4,269)	(5,517)	(17,178)
Net actuarial gain on unfunded portion of post-retirement benefit obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, before tax	$ 2,183	$ 2,062	$ 2,542

GENERAL AND SUMMARY OF SIGNIF48

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2015shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2013shares
Shares issued in exchange | shares	400
Cash Deposit At Federal Reserve Amount		$ 2,400
Exceeded Federal Deposit Corp Insurance Limits With The Amount		$ 24,500
Mortgage loans held-for-sale			$ 354
Unsecured Commercial Loan Is Considered Uncollectable the Loan Is Charged Off Not Later Than Past Due Number of Days		90
Loans And Installment And Revolving Loans Are Charged Off Not Later Than Number Of Days		120
Policy For Determining The Frequency Of Periodic Reviews Is Based Upon Consideration Of The Specific Properties Or Perceived Market Fluctuations In Months Minimum		12
Policy For Determining The Frequency Of Periodic Reviews Is Based Upon Consideration Of The Specific Properties Or Perceived Market Fluctuations In Months maximum		24
Property, Plant and Equipment, Depreciation Methods		Accelerated method
Federal reserve and federal home loan bank stock		$ 3,900	$ 3,900
Maturity period of securities sold under agreements to repurchase		One to four days
Number of operating segments		1
Income tax examination, likelihood of unfavorable settlement		Greater than 50 percent
Number of shares repurchased | shares		161,074	120,436	158,988
Number of shares authorized to be repurchased | shares		200,000
Rental and Leasing [Member]
Concentration risk, percentage		130.10%
Health Care and Social Assistance Credits [Member]
Concentration risk, percentage		39.10%
Construction loans [Member]
Concentration risk, percentage		46.60%
Wholesale Trade Credits [Member]
Concentration risk, percentage		28.00%
Non Farm and Non Residential Real Estate [Member]
Concentration risk, percentage		22.00%
Construction loans One [Member]
Concentration risk, percentage		27.70%
Credit Concentration Risk [Member]
Concentration risk, description		Tier 1 Capital plus the allowance for loan and lease losses
Building [Member]
Property, Plant and Equipment, Estimated Useful Lives		15 to 39 years
Equipment [Member]
Property, Plant and Equipment, Estimated Useful Lives		Three to 25 years

RECLASSIFICATIONS FROM ACCUMU49

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax (expense) benefit	$ (771)	$ (925)	$ (677)	$ (976)	$ (871)	$ (1,031)	$ (941)	$ (713)	$ (3,349)	$ (3,556)	$ (2,700)
Net income for common shareholders									10,306	10,242	9,611
Total Reclassifications Out of AOCI [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain (loss) on sale of securities									426	517	393
Total Reclassifications Out of AOCI [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain (loss) on sale of securities									534	652	829
Tax (expense) benefit									(206)	(251)	(319)
Net income for common shareholders									328	401	510
Total Reclassifications Out of AOCI [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain (loss) on sale of securities									160	188	(190)
Tax (expense) benefit									(62)	(72)	73
Net income for common shareholders									$ 98	$ 116	$ (117)

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Available-For-Sale Securities
Amortized cost	$ 399,288	$ 403,403
Gross unrealized gains	2,016	1,901
Gross unrealized losses	(6,285)	(7,418)
Fair falue	395,019	397,886
Held-to-maturity securities
Amortized cost	4,059	21,985
Fair falue	4,089	22,263
US Government Agencies [Member]
Available-For-Sale Securities
Amortized cost	132,543	162,289
Gross unrealized gains	40	50
Gross unrealized losses	(1,526)	(3,085)
Fair falue	131,057	159,254
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available-For-Sale Securities
Amortized cost	171,620	172,035
Gross unrealized gains	6	64
Gross unrealized losses	(4,559)	(4,129)
Fair falue	167,067	167,970
States and Political Subdivisions [Member]
Available-For-Sale Securities
Amortized cost	71,493	51,374
Gross unrealized gains	1,916	1,658
Gross unrealized losses	(90)	(150)
Fair falue	73,319	52,882
Held-to-maturity securities
Amortized cost	4,059	21,985
Gross unrealized gains	33	$ 278
Gross unrealized losses	(3)
Fair falue	4,089	$ 22,263
Corporate Bonds [Member]
Available-For-Sale Securities
Amortized cost	23,632	17,705
Gross unrealized gains	54	129
Gross unrealized losses	(110)	(54)
Fair falue	$ 23,576	$ 17,780

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale securities:
Less than 12 months Fair value	$ 168,290	$ 87,638
Less than 12 months Unrealized losses	(1,649)	(455)
12 months or more Fair value	137,615	238,375
12 months or more Unrealized losses	(4,636)	(6,963)
Fair value	305,905	326,013
Unrealized losses	(6,285)	(7,418)
US Government Agencies [Member]
Available-for-sale securities:
Less than 12 months Fair value	70,454	46,977
Less than 12 months Unrealized losses	(425)	(219)
12 months or more Fair value	43,080	104,815
12 months or more Unrealized losses	(1,101)	(2,866)
Fair value	113,534	151,792
Unrealized losses	(1,526)	(3,085)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available-for-sale securities:
Less than 12 months Fair value	74,860	21,339
Less than 12 months Unrealized losses	(1,073)	(77)
12 months or more Fair value	90,125	128,935
12 months or more Unrealized losses	(3,486)	(4,052)
Fair value	164,985	150,274
Unrealized losses	(4,559)	(4,129)
States and Political Subdivisions [Member]
Available-for-sale securities:
Less than 12 months Fair value	8,472	14,539
Less than 12 months Unrealized losses	(64)	(142)
12 months or more Fair value	2,556	1,418
12 months or more Unrealized losses	(26)	(8)
Fair value	11,028	15,957
Unrealized losses	(90)	(150)
Held-to-maturity securities:
Less than 12 months Fair value	438
Less than 12 months Unrealized losses	$ (3)
12 months or more Fair value
12 months or more Unrealized losses
Fair value	$ 438
Unrealized losses	(3)
Corporate Bonds [Member]
Available-for-sale securities:
Less than 12 months Fair value	14,504	4,783
Less than 12 months Unrealized losses	(87)	(17)
12 months or more Fair value	1,854	3,207
12 months or more Unrealized losses	(23)	(37)
Fair value	16,358	7,990
Unrealized losses	$ (110)	$ (54)

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Amortized Cost
Within one year	$ 5,678
One to five years	132,685
Five to ten years	49,992
After ten years	39,313
Mortgage-backed securities	171,620
Total	399,288
Fair Value
Within one year	5,695
One to five years	131,605
Five to ten years	50,396
After ten years	40,256
Mortgage-backed securities	167,067
Total	395,019
Amortized Cost
Within one year	475
One to five years	984
Five to ten years	610
After ten years	$ 1,990
Mortgage-backed securities
Total	$ 4,059	$ 21,985
Fair Value
Within one year	476
One to five years	997
Five to ten years	611
After ten years	$ 2,005
Mortgage-backed securities
Fair Value	$ 4,089	$ 22,263

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Securities Details 3
Gross gains recognized on sales of securities	$ 579	$ 737	$ 1,026
Gross losses recognized on sales of securities	(45)	(85)	(197)
Net realized gains on sales of securities available-for-sale	$ 534	$ 652	$ 829

SECURITIES (Details Textual)

SECURITIES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available for Sale Securities and Held to Maturity Securities Continuous Unrealized Loss Position Fair Value	$ 306,300	$ 326,000
Available-for-sale and held-to-maturity of investment portfolio (in percent)	77.00%	78.00%
Unrealized loss on securities	$ 6,300	$ 306,300
Available for Sale and Held to Maturity Securities Pledged as Collateral	253,600	217,200
Assets Sold under Agreements to Repurchase, Carrying Amount	30,500	35,000
Available-for-sale Securities, Gross Realized Gains	579	$ 737	$ 1,026
Corporate Bonds [Member]
Held to maturity security transfer to available-for-sale, carrying value	450
Available-for-sale Securities, Gross Realized Gains	$ 5

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 731,266	$ 652,052	$ 606,766
Less: Allowance for possible loan and lease losses	(8,634)	(7,934)	(8,595)	$ (8,809)
Total net loans	722,632	644,118
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	127,899	99,788
Non Farm, Non Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	161,009	163,461
Construction and Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	51,330	50,424
Commercial Loans Secured By Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	28,091	27,937
Other Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	60,325	41,185
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	428,654	382,795	354,375
Less: Allowance for possible loan and lease losses	(7,402)	(6,719)	$ (7,359)	$ (7,528)
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	9,914	9,536
Single Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	260,254	229,559
Other Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	32,444	30,162
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 302,612	$ 269,257

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 6,799	$ 7,405
Current	724,467	644,647
Total loans	731,266	652,052	$ 606,766
30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,883	3,211
60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,004	666
90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	912	3,528
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	515	1,754
Current	127,384	98,034
Total loans	127,899	99,788
Commercial and Industrial [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	245	263
Commercial and Industrial [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	25	63
Commercial and Industrial [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	245	1,428
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,888	888
Current	158,121	162,573
Total loans	161,009	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	2,486	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	123	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	279	$ 330
Construction and Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	7
Current	51,323	$ 50,424
Total loans	51,330	50,424
Construction and Development [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 7
Construction and Development [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
Construction and Development [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 195	320
Current	27,896	27,617
Total loans	28,091	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	24	92
Commercial Loans Secured By Real Estate [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	8	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	$ 163	172
Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,102
Current	$ 60,325	40,083
Total loans	60,325	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] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
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	3,605	4,064
Current	425,049	378,731
Total loans	428,654	382,795	$ 354,375
Commercial [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,762	778
Commercial [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	156	264
Commercial [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	687	3,022
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	86	121
Current	9,828	9,415
Total loans	9,914	9,536
Consumer Loans [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	43	72
Consumer Loans [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	36	7
Consumer Loans [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	7	42
Single Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,746	3,220
Current	257,508	226,339
Total loans	260,254	229,559
Single Family Residential [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,918	2,361
Single Family Residential [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	664	395
Single Family Residential [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	164	$ 464
Other Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	362
Current	32,082	$ 30,162
Total loans	32,444	30,162
Other Retail [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	160
Other Retail [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	148
Other Retail [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	54
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,194	3,341
Current	299,418	265,916
Total loans	302,612	269,257
Retail [Member] | 30 - 59 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,121	2,433
Retail [Member] | 60 - 89 days past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	848	402
Retail [Member] | 90 days and greater past due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 225	$ 506

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 2,835	$ 11,308	$ 10,853
Recorded Investment With No Allowance	1,045	8,581	6,832
Recorded Investment With Allowance	1,255	822	2,393
Total Recorded Investment	2,300	9,403	9,225
Related Allowance	159	52	471
Average Recorded Investment Year to Date	2,435	9,952	9,754
Interest Received	127	527	487
Interest Accrued	149	641	628
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	432	3,760	2,190
Recorded Investment With No Allowance	60	2,734	1,338
Recorded Investment With Allowance	262	217	234
Total Recorded Investment	322	2,951	1,572
Related Allowance	28	9	16
Average Recorded Investment Year to Date	344	3,230	1,620
Interest Received	17	97	23
Interest Accrued	22	207	134
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	469	3,720	3,236
Recorded Investment With No Allowance	$ 401	$ 3,241	1,155
Recorded Investment With Allowance			1,551
Total Recorded Investment	$ 401	$ 3,241	2,706
Related Allowance			282
Average Recorded Investment Year to Date	$ 428	$ 3,570	2,819
Interest Received	17	213	157
Interest Accrued	24	212	168
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 192	1,053	461
Recorded Investment With No Allowance		564	$ 461
Recorded Investment With Allowance	$ 163	166
Total Recorded Investment	163	730	$ 461
Related Allowance	29	33	44
Average Recorded Investment Year to Date	169	826	556
Interest Received	6	67	30
Interest Accrued	$ 13	77	30
Other Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance		1,256	3,834
Recorded Investment With No Allowance		$ 1,092	3,310
Recorded Investment With Allowance			178
Total Recorded Investment		$ 1,092	$ 3,488
Related Allowance
Average Recorded Investment Year to Date		$ 1,171	$ 3,704
Interest Received		89	225
Interest Accrued		84	241
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 1,093	9,789	9,721
Recorded Investment With No Allowance	461	7,631	6,264
Recorded Investment With Allowance	425	383	1,963
Total Recorded Investment	886	8,014	8,227
Related Allowance	57	42	342
Average Recorded Investment Year to Date	941	8,797	8,699
Interest Received	40	466	435
Interest Accrued	59	580	573
Single Family Residential [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,612	1,094	1,121
Recorded Investment With No Allowance	510	539	568
Recorded Investment With Allowance	830	439	419
Total Recorded Investment	1,340	978	987
Related Allowance	102	10	118
Average Recorded Investment Year to Date	1,415	786	1,044
Interest Received	81	44	52
Interest Accrued	83	42	55
Other Retail [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	130	425	$ 11
Recorded Investment With No Allowance	$ 74	$ 411
Recorded Investment With Allowance			$ 11
Total Recorded Investment	$ 74	$ 411	11
Related Allowance			11
Average Recorded Investment Year to Date	$ 79	$ 369	$ 11
Interest Received	6	17
Interest Accrued	7	19
Retail [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,742	1,519	$ 1,132
Recorded Investment With No Allowance	584	950	568
Recorded Investment With Allowance	830	439	430
Total Recorded Investment	1,414	1,389	998
Related Allowance	102	10	129
Average Recorded Investment Year to Date	1,494	1,155	1,055
Interest Received	87	61	52
Interest Accrued	$ 90	$ 61	$ 55

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 2,197	$ 5,380
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	322	1,428
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	401	409
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 163	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	$ 886	3,101
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	74	42
Single Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,237	2,237
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 1,311	$ 2,279

LOANS (Details 4)

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

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 731,266	$ 652,052	$ 606,766
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	127,899	99,788
Commercial and Industrial [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,263	1,004
Commercial and Industrial [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,633	3,908
Commercial and Industrial [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	54,952	47,047
Commercial and Industrial [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	60,922	42,116
Commercial and Industrial [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 4,793	$ 3,143
Commercial and Industrial [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 336	$ 2,570
Commercial and Industrial [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Non Farm, Non Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 161,009	$ 163,461
Non Farm, Non Residential Real Estate [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	312	466
Non Farm, Non Residential Real Estate [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	295	314
Non Farm, Non Residential Real Estate [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	43,253	46,784
Non Farm, Non Residential Real Estate [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	105,014	101,809
Non Farm, Non Residential Real Estate [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,532	9,763
Non Farm, Non Residential Real Estate [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	108	958
Non Farm, Non Residential Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 495	$ 3,367
Non Farm, Non Residential Real Estate [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Construction and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 51,330	$ 50,424
Construction and Development [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Construction and Development [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Construction and Development [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 9,328	$ 18,903
Construction and Development [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	40,604	29,808
Construction and Development [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,398	$ 1,713
Construction and Development [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Construction and Development [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Construction and Development [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Commercial Loans Secured By Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 28,091	$ 27,937
Commercial Loans Secured By Real Estate [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 103	$ 113
Commercial Loans Secured By Real Estate [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Commercial Loans Secured By Real Estate [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 2,529	$ 4,700
Commercial Loans Secured By Real Estate [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	24,895	21,682
Commercial Loans Secured By Real Estate [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 471	$ 1,115
Commercial Loans Secured By Real Estate [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Commercial Loans Secured By Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 93	$ 327
Commercial Loans Secured By Real Estate [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 60,325	$ 41,185
Other Commercial [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	77	1
Other Commercial [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	49,017	30,408
Other Commercial [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,004	5,712
Other Commercial [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 5,066	$ 3,802
Other Commercial [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Other Commercial [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 161	$ 170
Other Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 1,092
Other Commercial [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 428,654	$ 382,795	$ 354,375
Commercial [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	77	1,584
Commercial [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	49,017	34,630
Commercial [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,004	123,146
Commercial [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 5,066	199,217
Commercial [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		15,734
Commercial [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 161	1,128
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 7,356
Commercial [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 9,914	$ 9,536
Consumer Loans [Member] | Risk Rating 1 Minimal Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,755
Consumer Loans [Member] | Risk Rating 2 Modest Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	54,945
Consumer Loans [Member] | Risk Rating 3 Average Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	116,066
Consumer Loans [Member] | Risk Rating 4 Acceptable Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	236,501
Consumer Loans [Member] | Risk Rating 5 Pass / Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	18,194
Consumer Loans [Member] | Risk Rating 6 Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	269
Consumer Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 924
Consumer Loans [Member] | Risk Rating 8 Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Consumer Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 9,896	9,494
Consumer Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	18	42
Single Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	260,254	229,559
Single Family Residential [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	258,216	226,637
Single Family Residential [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,038	2,922
Other Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	32,444	30,162
Other Retail [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	32,388	29,683
Other Retail [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	56	479
Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	302,612	269,257
Retail [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	300,500	265,814
Retail [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 2,112	$ 3,443

LOANS (Details Textual)

LOANS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Financing Receivable Period of Loans Past Due Transferred to Non Accrual Status	90 days
Loans and Leases Receivable Loan to Value Ratio Maximum	55.00%	45.00%
Capitalized fees and costs	$ 941	$ 932
Foreclosed Assets	$ 62	$ 5

ALLOWANCE FOR LOAN AND LEASE 62

ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Activity in the ALLL
Balance at the beginning of the period	$ 7,934	$ 8,595	$ 8,809
Less: Charge-offs	(47)	(791)	(298)
Add: Recoveries	717	$ 130	$ 84
Add: Provisions	30
Balance at the end of the period	8,634	$ 7,934	$ 8,595
Amount of the ALLL allocated
Loans individually evaluated for impairment				$ 159	$ 52	$ 471
Loans collectively evaluated for impairment				8,475	7,882	8,124
Total	8,634	7,934	8,595	8,634	7,934	8,595
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment				2,300	9,403	9,225
Loans collectively evaluated for impairment				728,966	642,649	597,541
Total loans				731,266	652,052	606,766
Commercial [Member]
Activity in the ALLL
Balance at the beginning of the period	$ 6,719	7,359	7,528
Less: Charge-offs		(739)	(222)
Add: Recoveries	$ 683	$ 99	$ 53
Add: Provisions
Balance at the end of the period	$ 7,402	$ 6,719	$ 7,359
Amount of the ALLL allocated
Loans individually evaluated for impairment				57	42	342
Loans collectively evaluated for impairment				7,345	6,677	7,017
Total	6,719	6,719	7,359	7,402	6,719	7,359
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment				886	8,014	8,227
Loans collectively evaluated for impairment				427,768	374,781	346,148
Total loans				428,654	382,795	354,375
Residential real estate [Member]
Activity in the ALLL
Balance at the beginning of the period	1,053	1,084	1,109
Less: Charge-offs	(34)	(41)	(27)
Add: Recoveries	12	$ 10	$ 2
Add: Provisions	30
Balance at the end of the period	1,061	$ 1,053	$ 1,084
Amount of the ALLL allocated
Loans individually evaluated for impairment				102	10	118
Loans collectively evaluated for impairment				959	1,043	966
Total	1,053	1,053	1,084	1,061	1,053	1,084
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment				1,340	978	987
Loans collectively evaluated for impairment				258,914	228,170	212,776
Total loans				$ 260,254	$ 229,148	213,763
Consumer and Other Retail Portfolio Segment [Member]
Activity in the ALLL
Balance at the beginning of the period	162	152	172
Less: Charge-offs	(13)	(11)	(49)
Add: Recoveries	$ 22	$ 21	$ 29
Add: Provisions
Balance at the end of the period	$ 171	$ 162	$ 152
Amount of the ALLL allocated
Loans individually evaluated for impairment						11
Loans collectively evaluated for impairment				$ 171	$ 162	141
Total	$ 162	$ 162	$ 152	171	162	152
Loans related to each balance in the ALLL by portfolio segment
Loans individually evaluated for impairment				74	411	11
Loans collectively evaluated for impairment				42,284	39,698	38,617
Total loans				$ 42,358	$ 40,109	$ 38,628

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 44,746	$ 43,607
Less allowance for depreciation and amortization	(19,228)	(17,834)
Bank premises and equipment, at cost less allowance for depreciation	25,518	25,773
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	9,296	9,152
Premises [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	22,951	22,858
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	10,375	9,722
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,846	1,859
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 278	$ 16

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Loans and Leases Receivable, Related Parties Disclosure [Abstract]
Related party extensions of credit, beginning of period	$ 4,774	$ 3,822
New loans	879	2,081
Repayments	(1,393)	(1,129)
Related party extension of credit, end of period	$ 4,260	$ 4,774

RELATED PARTY TRANSACTIONS (D65

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Ownership Percentage Held By Parent	10% or more
Aggregate balances of related party repurchase agreements	$ 13,800	$ 13,100
Significant services provided by a director	151	170
Related Party Deposit Liabilities	$ 22,400	$ 24,500

LEASES (Details)

LEASES (Details) $ in Thousands	Dec. 31, 2015USD ($)
Leases [Abstract]
2,016	$ 358
2,017	320
2,018	294
2,019	291
2,020	295
Thereafter	3,187
Total	$ 4,745

LEASES (Details Textual)

LEASES (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Number	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Operating Leased Assets [Line Items]
Number of office locations | Number	3
Description of operating leases	Real property for three of the Bank’s office locations and certain equipment are leased under noncancelable operating leases expiring at various times through 2034. In most cases, the leases provide for one or more renewal options of five to ten years under the same or similar terms.
Maximum [Member]
Operating Leased Assets [Line Items]
Renewal term of lease	10 years
Minimum [Member]
Operating Leased Assets [Line Items]
Renewal term of lease	5 years
Equipment [Member]
Operating Leased Assets [Line Items]
Total rental expense	$ 30	$ 27	$ 18
Building [Member]
Operating Leased Assets [Line Items]
Total rental expense	$ 380	$ 304	$ 264

FEDERAL AND STATE INCOME TAXE68

FEDERAL AND STATE INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current									$ 2,735	$ 3,011	$ 915
Deferred									614	545	1,785
Total provision for income taxes	$ 771	$ 925	$ 677	$ 976	$ 871	$ 1,031	$ 941	$ 713	$ 3,349	$ 3,556	$ 2,700

FEDERAL AND STATE INCOME TAXE69

FEDERAL AND STATE INCOME TAXES (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred Tax Effects Of Principal Temporary Differences [Abstract]
Allowance for possible loan and lease losses	$ 3,324	$ 3,055	$ 3,309
Deferred compensation	$ 2,563	2,557	2,516
Write down of other real estate		$ 9	314
Deferred gain on OREO sale			188
Amortization of core deposit intangible	$ (1,747)	$ (1,577)	(272)
Recognition of nonaccrual loan income	119	129	111
Unrealized losses on available-for-sale securities	1,644	2,124	6,613
Post-retirementbenefit obligation	841	986	890
Accelerated depreciation	(691)	(973)	(822)
Amortization of goodwill	$ (1,229)	$ (1,109)	(2,591)
Dividend Income - F&M West			(372)
Prepaid Expenses	$ (135)	$ (135)	(178)
Other	(733)	31	240
Net deferred tax asset	$ 3,956	$ 5,097	$ 9,946

FEDERAL AND STATE INCOME TAXE70

FEDERAL AND STATE INCOME TAXES (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Tax expense at statutory rate									$ 4,643	$ 4,692	$ 4,191
Increase (decrease) in taxes resulting from:
Tax exempt interest									(1,226)	(1,060)	(1,144)
Nondeductible interest expense									19	14	18
Employee benefits									(80)	(128)	(196)
Other nondeductible expenses (nontaxable income) - net									28	$ 38	$ 11
State income taxes net of federal tax benefit									$ 106
Dividend income exclusion
Other									$ (141)		$ (180)
Total provision for income taxes	$ 771	$ 925	$ 677	$ 976	$ 871	$ 1,031	$ 941	$ 713	$ 3,349	$ 3,556	$ 2,700
Effective tax rate									24.40%	25.80%	21.90%

BORROWED FUNDS (Details)

BORROWED FUNDS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Securities Sold under Agreements to Repurchase	$ 24,177	$ 22,834
US Government Agencies [Member]
Securities Sold under Agreements to Repurchase	$ 24,177	$ 22,834
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities Sold under Agreements to Repurchase
States and Political Subdivisions [Member]
Securities Sold under Agreements to Repurchase
Corporate Bonds [Member]
Securities Sold under Agreements to Repurchase

BORROWED FUNDS (Details Textual

BORROWED FUNDS (Details Textual) - Federal Home Loan Bank of Cincinnati [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 20, 2006
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum amount of outstanding agreements at any month end	$ 26,400	$ 24,800
Monthly average of agreements	25,100	21,400
Blanket Agreement [Member]
Line of Credit Facility [Line Items]
Percentage of qualifying residential mortgage loans			150.00%
Outstanding Advances	0	$ 0
Stock held in the FHLB	$ 3,000

SIGNIFICANT ESTIMATES, COMMIT73

SIGNIFICANT ESTIMATES, COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Gain Contingencies [Line Items]
Specified period for funding	30 to 90 days
Origination of mortgage loans Held-for-sale	$ 1,100	$ 3,300
Mortgage loans held-for-sale		354
Total outstanding standby letters of credit	$ 12,300	13,500
Property and Casualty, Commercial Insurance Product Line [Member]
Gain Contingencies [Line Items]
Line of credit facility, amount granted	44,600	4,100
Open-end consumer lines [Member]
Gain Contingencies [Line Items]
Line of credit facility, amount granted	$ 159,500	$ 104,400
Maximum [Member]
Gain Contingencies [Line Items]
Letters of credit outstanding, term	24 months
Minimum [Member]
Gain Contingencies [Line Items]
Letters of credit outstanding, term	7 days

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 395,019	$ 397,886
U.S. government sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	131,057	159,254
States and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	73,319	52,882
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 23,576	$ 17,780
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 395,019	$ 397,886
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 395,019	$ 397,886
Fair Value, Measurements, Recurring [Member] | U.S. government sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	131,057	159,254
Fair Value, Measurements, Recurring [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	167,067	167,970
Fair Value, Measurements, Recurring [Member] | States and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	73,319	52,882
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 23,576	$ 17,780
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. government sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [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
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | States and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
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	$ 395,019	$ 397,886
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. government sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	131,057	159,254
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	167,067	167,970
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	73,319	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	$ 23,576	$ 17,780
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. government sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [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
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale

FAIR VALUE MEASUREMENTS (Deta75

FAIR VALUE MEASUREMENTS (Details 1) - Impaired Loans Collateral Dependent [Member] - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Impaired loans (collateral-dependent)	$ 672	$ 1,184
Fair Value, Inputs, Level 1 [Member]
Impaired loans (collateral-dependent)
Fair Value, Inputs, Level 2 [Member]
Impaired loans (collateral-dependent)
Fair Value, Inputs, Level 3 [Member]
Impaired loans (collateral-dependent)	$ 672	$ 1,184

FAIR VALUE MEASUREMENTS (Deta76

FAIR VALUE MEASUREMENTS (Details 2) - Impaired Loans [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value at the end of the period	$ 672	$ 1,184
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value at the end of the period	672	1,184
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value at the end of the period	$ 672	$ 1,184
Fair Value Measurements, Valuation Techniques	Market comparable properties	Market comparable properties
Fair Value Measurements Unobservable Input	Marketability discount	Marketability discount
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)	41.00%	7.00%
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)	25.00%	5.00%
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketability discount (as a percent)	46.00%	10.00%

FAIR VALUE MEASUREMENTS (Deta77

FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial assets
Cash and due from banks	$ 19,453	$ 18,511
Interest-bearing deposits in other banks	18,299	10,086
Federal Home Loan Bank and Federal Reserve Bank stock	3,900	3,900
Securities available-for-sale	395,019	397,886
Securities held-to-maturity	4,089	22,263
Carrying Value Measurement [Member]
Financial assets
Cash and due from banks	19,453	18,511
Interest-bearing deposits in other banks	18,299	10,086
Federal funds sold	24,476	1,700
Federal Home Loan Bank and Federal Reserve Bank stock	3,879	3,879
Securities available-for-sale	395,019	397,886
Securities held-to-maturity	4,059	21,985
Loans held for sale		354
Loans, net	722,632	644,118
Accrued interest receivable	4,540	4,337
Financial liabilities
Non-interest bearing deposits	239,226	204,358
Interest bearing deposits	864,575	815,597
Repurchase agreements	24,177	22,834
Accrued interest payable	$ 503	$ 613
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks	$ 19,453	$ 18,511
Interest-bearing deposits in other banks	18,299	10,086
Federal funds sold	$ 24,476	$ 1,700
Federal Home Loan Bank and Federal Reserve Bank stock
Securities available-for-sale
Securities held-to-maturity
Loans held for sale		$ 354
Loans, net
Accrued interest receivable
Financial liabilities
Non-interest bearing deposits	$ 239,226	$ 204,358
Interest bearing deposits
Repurchase agreements
Accrued interest payable
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	395,019	397,886
Securities held-to-maturity	$ 4,089	$ 22,263
Loans held for sale
Loans, net
Accrued interest receivable	$ 4,540	$ 4,337
Financial liabilities
Non-interest bearing deposits
Interest bearing deposits	$ 864,036	$ 816,022
Repurchase agreements	24,177	22,834
Accrued interest payable	$ 503	$ 613
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	$ 718,956	$ 650,770
Accrued interest receivable
Financial liabilities
Non-interest bearing deposits
Interest bearing deposits
Repurchase agreements
Accrued interest payable
Off-balance sheet credit related instruments:
Commitments to extend credit and letters of credit

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Impaired Loans Collateral Dependent [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, Fair Value Adjustment	$ 178	$ 287
Other Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, Fair Value Adjustment	$ 12	$ 0

QUARTERLY RESULTS OF OPERATIO79

QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 9,842	$ 9,817	$ 9,720	$ 9,303	$ 9,284	$ 9,351	$ 9,103	$ 9,042	$ 38,682	$ 36,780	$ 37,361
Interest expense	548	556	556	565	580	605	623	620	2,225	2,428	2,907
Net interest income	9,294	$ 9,261	$ 9,164	$ 8,738	$ 8,704	$ 8,746	$ 8,480	$ 8,422	36,457	$ 34,352	$ 34,454
Provision for possible loan and lease losses, net	30								30
Non-interest income	2,877	$ 2,907	$ 2,774	$ 2,885	$ 2,808	$ 3,177	$ 3,091	$ 2,651	11,443	$ 11,727
Non-interest expenses	9,102	8,524	8,559	8,030	7,984	8,166	8,033	8,098	34,199	32,265	$ 33,243
Income before income taxes	3,039	3,644	3,379	3,593	3,528	3,757	3,538	2,975	13,655	13,798
Income taxes	771	925	677	976	871	1,031	941	713	3,349	3,556	$ 2,700
Net income	$ 2,268	$ 2,719	$ 2,702	$ 2,617	$ 2,657	$ 2,726	$ 2,597	$ 2,262	$ 10,306	$ 10,242
Basic earnings per share	$ 0.48	$ 0.57	$ 0.56	$ 0.53	$ 0.54	$ 0.55	$ 0.52	$ 0.45	$ 2.13	$ 2.06	$ 1.88
Weighted average shares outstanding	4,771,648	4,808,352	4,853,265	4,897,245	4,909,910	4,934,815	4,977,506	5,017,789	4,832,217	4,963,826	5,110,849

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Under 3 months	$ 24,805	$ 29,629
3 to 12 months	70,447	71,489
Over 12 months	16,755	18,399
Total	$ 112,007	$ 119,517

DEPOSITS (Details 1)

DEPOSITS (Details 1) $ in Thousands	Dec. 31, 2015USD ($)
Banking and Thrift [Abstract]
2,016	$ 172,931
2,017	17,972
2,018	6,056
2,019	6,237
2,020	8,090
Thereafter	10
Total	$ 211,296

DEPOSITS (Details Textual)

DEPOSITS (Details Textual) $ in Thousands	Dec. 31, 2015USD ($)Number	Dec. 31, 2014USD ($)
Banking and Thrift [Abstract]
Number of domestic offices | Number	19
Deposit accounts overdraft	$ 223	$ 152
Interest-bearing time deposits	$ 47,100	$ 53,300

CONDENSED FINANCIAL INFORMATI83

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total assets	$ 1,260,310	$ 1,170,995
Liabilities
Total liabilities	1,142,520	1,056,411
Shareholders' equity
Retained earnings	71,583	67,609
Accumulated other comprehensive loss	(1,283)	(2,126)	$ (9,001)
Total shareholders' equity	117,790	114,584	$ 104,204	$ 112,795
Total liabilities and shareholders' equity	1,260,310	1,170,995
Parent Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash	310	271
Investment in bank subsidiary	114,655	111,512
Investment in credit life insurance company	54	54
Investment in other securities	17	17
Dividends receivable from bank subsidiary	1,754	1,813
Cash surrender value - life insurance	4,546	4,474
Total assets	121,336	118,141
Liabilities
Accrued liabilities	1,887	1,839
Dividends payable	1,754	1,813
Total liabilities	3,641	3,652
Shareholders' equity
Common stock - $10 par value per share, 8,000,000 shares authorized; 4,739,502 and 4,900,576 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively	47,395	49,006
Retained earnings	71,583	67,609
Accumulated other comprehensive loss	(1,283)	(2,126)
Total shareholders' equity	117,695	114,489
Total liabilities and shareholders' equity	$ 121,336	$ 118,141

CONDENSED FINANCIAL INFORMATI84

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details) (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
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	4,739,502	4,900,576
Common Stock, shares outstanding	4,739,502	4,900,576
Parent Company [Member]
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	4,739,502	4,900,576
Common Stock, shares outstanding	4,739,502	4,900,576

CONDENSED FINANCIAL INFORMATI85

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating income
Dividends from bank subsidiary	$ 229	$ 269	$ 294
Income before equity in undistributed net income of bank subsidiary	13,671	13,814	12,327
Net income for common shareholders	10,306	10,242	9,611
Parent Company [Member]
Operating income
Dividends from bank subsidiary	$ 8,002	7,038	7,663
Other dividend income		8	15
Other	$ 72	65	65
Operating expenses	(308)	(279)	(238)
Income before equity in undistributed net income of bank subsidiary	7,766	6,832	7,505
Equity in undistributed net income of bank subsidiary	2,540	3,410	2,106
Net income for common shareholders	$ 10,306	$ 10,242	$ 9,611

CONDENSED FINANCIAL INFORMATI86

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Net income for common shareholders	$ 10,306	$ 10,242	$ 9,611
Other Comprehensive Income (Loss)
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of 685, $4,742, and ($8,507), respectively	1,097	7,571	(13,589)
Reclassification adjustment for realized gains included in net income, net of taxes of ($206), ($251) and ($319), respectively	328	401	510
Change in unfunded portion of post-retirement benefit obligations, net of taxes of $47, ($185) and $2,102, respectively	74	(295)	3,360
Other Comprehensive Income (Loss)	11,149	17,117	(1,128)
Parent Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Net income for common shareholders	10,306	10,242	9,611
Other Comprehensive Income (Loss)
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of 685, $4,742, and ($8,507), respectively	1,097	7,571	(13,589)
Reclassification adjustment for realized gains included in net income, net of taxes of ($206), ($251) and ($319), respectively	(328)	(401)	(510)
Change in unfunded portion of post-retirement benefit obligations, net of taxes of $47, ($185) and $2,102, respectively	74	(295)	3,360
Other Comprehensive Income (Loss)	843	6,875	(10,739)
Total Comprehensive Income (Loss)	$ 11,149	$ 17,117	$ (1,128)

CONDENSED FINANCIAL INFORMATI87

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details 2) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ (685)	$ (4,742)	$ 8,507
Reclassification adjustment for realized gains included in net income	206	251	319
Parent Company [Member]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	685	4,742	8,507
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax	47	(185)	2,102
Reclassification adjustment for realized gains included in net income	$ 206	$ 251	$ 319

CONDENSED FINANCIAL INFORMATI88

CONDENSED FINANCIAL INFORMATION OF THE CORPORATION (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities
Net income for common shareholders	$ 10,306	$ 10,242	$ 9,611
Adjustments to reconcile net income to net cash provided by operating activities
(Increase) decrease in other assets	(821)	8	(1,243)
Net cash provided by operating activities	13,166	12,162	16,786
Financing activities
Payment to repurchase common stock	(4,408)	(3,097)	(3,722)
Cash dividends paid	(3,594)	(3,685)	(3,800)
Net cash used by financing activities	77,187	60,575	7,893
Decrease in cash	31,931	(25,111)	(14,988)
Cash and cash equivalents at beginning of period	30,297	55,408	70,396
Cash and cash equivalents at end of period	62,228	30,297	55,408
Parent Company [Member]
Operating activities
Net income for common shareholders	10,306	10,242	9,611
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net income of bank subsidiary	(2,540)	(3,410)	(2,106)
Increase in cash surrender value of life insurance contracts	(72)	(65)	(65)
(Increase) decrease in other assets	59	245	(90)
Increase in payables	288	18	134
Total adjustments	(2,265)	(3,212)	(2,127)
Net cash provided by operating activities	8,041	7,030	7,484
Financing activities
Payment to repurchase common stock	(4,408)	(3,097)	(3,722)
Cash dividends paid	(3,594)	(3,685)	(3,800)
Net cash used by financing activities	(8,002)	(6,782)	(7,522)
Decrease in cash	39	248	(38)
Cash and cash equivalents at beginning of period	271	23	61
Cash and cash equivalents at end of period	$ 310	$ 271	$ 23

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred Compensation Plan [Member] | Director [Member]
Defined Benefit Plan Disclosure [Line Items]
Deferred Compensation Arrangement with Individual, Recorded Liability	$ 6,600	$ 6,600
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 738	715	$ 722
Deferred Compensation Arrangement With Individual Description Of Variable Rate Basis	Wall street journal prime rate plus three percent
Deferred Profit Sharing [Member] | Employee [Member]
Defined Benefit Plan Disclosure [Line Items]
Deferred Compensation Arrangement with Individual, Employer Contribution	$ 885	1,000	$ 1,600
Non Qualified Salary Continuations Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Deferred Compensation Arrangement with Individual, Recorded Liability	40	56
Non Qualified Salary Continuations Plan [Member] | Officer [Member]
Defined Benefit Plan Disclosure [Line Items]
Premium Amount Of Life Insurance Policy	$ 996	$ 986

POST RETIREMENT BENEFIT PLAN (D

POST RETIREMENT BENEFIT PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in benefit obligation
Benefit obligation at beginning of year	$ 2,560	$ 2,313
Service cost	36	34	$ 138
Interest cost	105	111	$ 292
Expected benefits paid	(174)	(183)
Actuarial gain (loss)	(286)	286
Benefit obligation at end of year	$ 2,241	$ 2,560
Change in fair value of assets
Fair value of plans assets at beginning of year
Employer contribution	$ 174	$ 183
Benefits paid	$ (174)	$ (183)
Fair value of plan assets at end of year
Reconciliation of funded status to benefit costs recognized
Projected benefit obligation, end of year	$ (2,241)	$ (2,560)
Fair value of assets, end of year
Funded status, end of year	$ (2,241)	$ (2,560)

POST RETIREMENT BENEFIT PLAN 91

POST RETIREMENT BENEFIT PLAN (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amounts Not Recognized As Components Of Net Periodic Benefit Cost [Abstract]
Unrecognized net actuarial gain	$ (2,142)	$ (2,016)
Unrecognized prior service cost	(41)	(46)
Total Before Tax Effects	$ (2,183)	$ (2,062)

POST RETIREMENT BENEFIT PLAN 92

POST RETIREMENT BENEFIT PLAN (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans
Current liability
Noncurrent liability	$ (2,241)	$ (2,560)
Total	$ (2,241)	$ (2,560)

POST RETIREMENT BENEFIT PLAN 93

POST RETIREMENT BENEFIT PLAN (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation Of Other Comprehensive Income Abstract [Abstract]
Accumulated other comprehensive income (loss) beginning of year	$ (2,062)	$ (2,542)	$ 2,920
Amortization of net actuarial gain (loss)	$ 160	$ 188	(190)
Negative plan amendment gain			(2,662)
(Gain) loss incurred in current year	$ (286)	$ 287	(2,558)
Prior service cost established in current year	5	5	(52)
Other comprehensive income (loss)	(121)	480	(5,462)
Ending balance (before tax effects)	$ (2,183)	$ (2,062)	$ (2,542)

POST RETIREMENT BENEFIT PLAN 94

POST RETIREMENT BENEFIT PLAN (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	$ 36	$ 34	$ 138
Interest cost	105	111	$ 292
Amortization of prior service cost	(5)	(5)
Recognized net actuarial (gain) loss	(160)	(188)	$ 190
Net periodic benefit income (cost)	$ (24)	$ (48)	$ 620

POST RETIREMENT BENEFIT PLAN 95

POST RETIREMENT BENEFIT PLAN (Details 5)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Weighted-average assumption used to determine benefit obligation:
Discount rate	4.25%	4.25%
Rate of compensation increase	-	-
Weighted-average assumptions used to determine benefit costs:
Discount rate	4.00%	5.00%

POST RETIREMENT BENEFIT PLAN 96

POST RETIREMENT BENEFIT PLAN (Details 6)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Initial
Ultimate (pre and post-65)	5.00%	5.00%
Pre-65 [Member]
Initial
Ultimate (pre and post-65)	9.00%	9.00%
Years to ultimate
Defined benefit plan years to ultimate health care trend rate	8 years	8 years
Post-65 [Member]
Initial
Ultimate (pre and post-65)	8.00%	8.00%
Years to ultimate
Defined benefit plan years to ultimate health care trend rate	6 years	6 years

POST RETIREMENT BENEFIT PLAN 97

POST RETIREMENT BENEFIT PLAN (Details 7) $ in Thousands	Dec. 31, 2015USD ($)
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
2,016	$ 161
2,017	154
2,018	165
2,019	163
2,020	160
2021-2026	975
Expected future benefit payments, total	$ 1,778

POST RETIREMENT BENEFIT PLAN 98

POST RETIREMENT BENEFIT PLAN (Details 8) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Compensation and Retirement Disclosure [Abstract]
Effect on total of service and interest cost, 1-Percentage-Point Increase	$ 13
Effect on post-retirement benefit obligation, 1-Percentage-Point Increase	245
Effect on total of service and interest cost, 1-Percentage-Point Decrease	(6)
Effect on post-retirement benefit obligation, 1-Percentage-Point Decrease	$ (146)

POST RETIREMENT BENEFIT PLAN 99

POST RETIREMENT BENEFIT PLAN (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Compensation and Retirement Disclosure [Abstract]
Post retirement bonus	$ 20
Estimated net gain for the defined benefits post-retirement plan	174
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	$ 161

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity Tier I Capital, Actual	$ 106,918
Common equity Tier I Capital to Risk-Weighted Assets, Actual	12.90%
Common equity Tier I Capital, For Minimum Capital Requirement	$ 37,177
Common equity Tier I Capital to Risk-Weighted Assets, For Minimum Capital Requirement	4.50%
Common equity Tier I Capital, For Minimum to be Well Capitalized	$ 53,699
Common equity Tier I Capital to Risk Weighted Assets, For Minimum to be Well Capitalized	6.50%
Total Capital, Actual	$ 115,552	$ 112,554
Total Capital to Risk-Weighted Assets, Actual	14.00%	14.40%
Total Capital, For Minimum Capital Requirement	$ 66,092	$ 62,628
Total Capital to Risk-Weighted Assets, For Minimum Capital Requirement	8.00%	8.00%
Total Capital, For Minimum to be Well Capitalized	$ 82,615	$ 78,285
Total Capital to Risk Weighted Assets, For Minimum to be Well Capitalized	10.00%	10.00%
Tier I Capital, Actual	$ 106,918	$ 104,620
Tier I Capital to Risk-Weighted Assets, Actual	12.90%	13.40%
Tier I Capital, For Minimum Capital Requirement	$ 49,569	$ 31,314
Tier I Capital to Risk-Weighted Assets, For Minimum Capital Requirement	6.00%	4.00%
Tier I Capital, For Minimum to be Well Capitalized	$ 66,092	$ 46,971
Tier I Capital to Risk-Weighted Assets, For Minimum to be Well Capitalized	8.00%	6.00%
Tier I Capital, Actual	$ 106,918	$ 104,620
Tier I Capital to Average Assets, Actual	8.70%	9.20%
Tier I Capital, For Minimum Capital Requirement	$ 49,420	$ 45,707
Tier I Capital to Average Assets, For Minimum Capital Requirement	4.00%	4.00%
Tier I Capital, For Minimum to be Well Capitalized	$ 61,775	$ 57,133
Tier I Capital to Average Assets, For Minimum to be Well Capitalized	5.00%	5.00%
First Farmers Merchant Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity Tier I Capital, Actual	$ 109,960
Common equity Tier I Capital to Risk-Weighted Assets, Actual	13.30%
Common equity Tier I Capital, For Minimum Capital Requirement	$ 37,256
Common equity Tier I Capital to Risk-Weighted Assets, For Minimum Capital Requirement	4.50%
Total Capital, Actual	$ 118,594	$ 115,532
Total Capital to Risk-Weighted Assets, Actual	14.30%	14.80%
Total Capital, For Minimum Capital Requirement	$ 66,234	$ 62,628
Total Capital to Risk-Weighted Assets, For Minimum Capital Requirement	8.00%	8.00%
Tier I Capital, Actual	$ 109,960	$ 107,598
Tier I Capital to Risk-Weighted Assets, Actual	13.30%	13.70%
Tier I Capital, For Minimum Capital Requirement	$ 49,675	$ 31,314
Tier I Capital to Risk-Weighted Assets, For Minimum Capital Requirement	6.00%	4.00%
Tier I Capital, Actual	$ 109,960	$ 107,598
Tier I Capital to Average Assets, Actual	8.90%	9.70%
Tier I Capital, For Minimum Capital Requirement	$ 49,599	$ 44,513
Tier I Capital to Average Assets, For Minimum Capital Requirement	4.00%	4.00%