Carolina Financial (CARO) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document And Entity Information
Entity Registrant Name	CAROLINA FINANCIAL CORP
Entity Central Index Key	870,385
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,035,184
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 10,894	$ 10,206
Interest-bearing cash	19,413	16,421
Cash and cash equivalents	30,307	26,627
Securities available-for-sale (cost of $314,079 at March 31, 2016 and $305,972 at December 31, 2015)	314,323	306,474
Securities held-to-maturity (fair value of $18,029 at March 31, 2016 and $17,965 at December 31, 2015)	16,995	17,053
Federal Home Loan Bank stock, at cost	7,769	9,919
Other investments	3,519	3,273
Derivative assets	2,434	1,945
Loans held for sale	31,804	41,774
Loans receivable, net of allowance for loan losses of $10,233 at March 31, 2016 and $10,141 at December 31, 2015	953,788	912,582
Premises and equipment, net	32,507	32,562
Accrued interest receivable	4,504	4,333
Real estate acquired through foreclosure, net	1,091	2,374
Deferred tax assets, net	5,995	5,273
Mortgage servicing rights	11,946	11,433
Cash value life insurance	28,330	28,082
Core deposit intangible	2,875	2,961
Other assets	4,853	3,004
Total assets	1,453,040	1,409,669
Liabilities:
Noninterest-bearing deposits	200,743	163,054
Interest-bearing deposits	927,029	868,474
Total deposits	1,127,772	1,031,528
Short-term borrowed funds	70,000	120,000
Long-term debt	98,465	103,465
Derivative liabilities	2,432	306
Drafts outstanding	1,695	2,154
Advances from borrowers for insurance and taxes	974	641
Accrued interest payable	350	333
Reserve for mortgage repurchase losses	3,605	3,876
Dividends payable to shareholders	362	361
Accrued expenses and other liabilities	4,995	7,146
Total liabilities	$ 1,310,650	$ 1,269,810
Stockholders' equity:
Preferred stock, par value $.01; 1,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued or outstanding
Common stock, par value $.01; 15,000,000 shares authorized at March 31, 2016 and December 31, 2015; 12,051,615 and 12,023,557 issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 121	$ 120
Additional paid-in capital	56,803	56,418
Retained earnings	86,110	82,859
Accumulated other comprehensive income (loss), net of tax benefit	(644)	462
Total stockholders' equity	142,390	139,859
Total liabilities and stockholders' equity	$ 1,453,040	$ 1,409,669

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Securities available for sale at cost	$ 314,079	$ 305,972
Securities held-to-maturity at fair value	18,029	17,965
Loans, allowance for loan losses	$ 10,233	$ 10,141
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	12,051,615	12,023,557
Common stock, shares outstanding	12,051,615	12,023,557

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest income
Loans	$ 11,085	$ 9,463
Investment securities	2,152	1,894
Dividends from FHLB	97	78
Other interest income	26	22
Total interest income	13,360	11,457
Interest expense
Deposits	1,367	961
Short-term borrowed funds	105	66
Long-term debt	615	473
Total interest expense	2,087	1,500
Net interest income	$ 11,273	$ 9,957
Provision for loan losses
Net interest income after provision for loan losses	$ 11,273	$ 9,957
Noninterest income
Mortgage banking income	3,175	4,017
Deposit service charges	862	$ 840
Net loss on extinguishment of debt	(9)
Net gain on sale of securities	417	$ 471
Fair value adjustments on interest rate swaps	(281)	(595)
Net increase in cash value life insurance	229	178
Mortgage loan servicing income	1,388	1,308
Other	495	371
Total noninterest income	6,276	6,590
Noninterest expense
Salaries and employee benefits	7,150	6,963
Occupancy and equipment	1,842	1,784
Marketing and public relations	385	402
FDIC insurance	168	165
Provision for mortgage loan repurchase losses	(250)	(250)
Legal expense	49	177
Other real estate expense, net	20	67
Mortgage subservicing expense	423	395
Amortization of mortgage servicing rights	532	$ 460
Merger related expenses	186
Other	1,763	$ 2,012
Total noninterest expense	12,268	12,175
Income before income taxes	5,281	4,372
Income tax expense	1,638	1,359
Net income	$ 3,643	$ 3,013
Earnings per common share:
Basic (per share)	$ 0.31	$ 0.32
Diluted (per share)	$ 0.30	$ 0.31
Weighted average common shares outstanding:
Basic (in shares)	11,746,574	9,366,172
Diluted (in shares)	11,978,801	9,612,035

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements Of Comprehensive Income
Net income	$ 3,643	$ 3,013
Other comprehensive income (loss), net of tax:
Unrealized gain on securities	179	630
Tax effect	(64)	(227)
Reclassification adjustment for gains included in earnings	(417)	(471)
Tax effect	150	$ 170
Unrealized gains on interest rate swaps designated as cash flow hedges	(1,490)
Tax effect	$ 536
Transfer from held-to-maturity to available for sale securities		$ 1,171
Tax effect		(422)
Accretion of unrealized losses on held-to-maturity securities previously recognized in other comprehensive income		64
Tax effect		(23)
Other comprehensive income (loss), net of tax	$ (1,106)	892
Comprehensive income	$ 2,537	$ 3,905

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2014	$ 97	$ 23,194	$ 69,625	$ 784	$ 93,700
Beginning Balance (in shares) at Dec. 31, 2014	9,717,043
Stock awards
Stock awards (in shares)	26,166
Stock options exercised		$ 33			$ 33
Stock options exercised (in shares)	6,528
Stock-based compensation expense, net		$ 225			225
Net income			$ 3,013		3,013
Dividends declared to stockholders			$ (244)		(244)
Other comprehensive income, net of tax				$ 892	892
Ending Balance at Mar. 31, 2015	$ 97	$ 23,452	$ 72,394	1,676	97,619
Ending Balance (in shares) at Mar. 31, 2015	9,749,737
Beginning Balance at Dec. 31, 2015	$ 120	$ 56,418	$ 82,859	$ 462	139,859
Beginning Balance (in shares) at Dec. 31, 2015	12,023,557
Stock awards	$ 1				1
Stock awards (in shares)	29,994
Stock options exercised (in shares)	14,016
Vested stock awards surrendered in cashless exercise			$ (30)		(30)
Vested stock awards surrendered in cashless exercise (in shares)	(1,936)
Excess tax benefit in connection with equity awards		$ 15			15
Stock-based compensation expense, net		$ 370			370
Net income			$ 3,643		3,643
Dividends declared to stockholders			$ (362)		(362)
Other comprehensive income, net of tax				$ (1,106)	(1,106)
Ending Balance at Mar. 31, 2016	$ 121	$ 56,803	$ 86,110	$ (644)	$ 142,390
Ending Balance (in shares) at Mar. 31, 2016	12,051,615

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 3,643	$ 3,013
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of unearned discount/premiums on investments, net	903	735
Amortization of deferred loan fees	(122)	(251)
Amortization of core deposit intangibles	86	86
Gain on sale of available-for-sale securities, net	(417)	(471)
Mortgage banking income	(3,175)	(4,017)
Originations of loans held for sale	(204,477)	(244,143)
Proceeds from sale of loans held for sale	217,622	$ 236,018
Loss on extinguishment of debt	9
Provision for mortgage loan repurchase losses	(250)	$ (250)
Mortgage loan losses paid, net of recoveries	(21)	(78)
Fair value adjustments on interest rate swaps	281	595
Stock-based compensation	370	225
Increase in cash surrender value of bank owned life insurance	(229)	(178)
Depreciation	472	427
(Gain) loss on disposals of premises and equipment	(1)	9
(Gain) loss on sale of real estate acquired through foreclosure	(5)	27
Originations of mortgage servicing rights	(1,045)	(640)
Amortization of mortgage servicing rights	532	460
Accrued interest receivable	(171)	(405)
Other assets	(2,423)	1,208
Increase (decrease) in:
Accrued interest payable	17	20
Dividends payable to shareholders	1	1
Accrued expenses and other liabilities	(1,823)	(5,778)
Cash flows provided by (used in) operating activities	9,777	(13,387)
Activity in available-for-sale securities:
Purchases	(55,688)	(69,191)
Maturities, payments and calls	12,665	12,628
Proceeds from sales	$ 34,478	27,151
Activity in held-to-maturity securities:
Purchases		(497)
Maturities, payments and calls		167
Increase in other investments	$ (228)	(334)
Decrease (increase) in Federal Home Loan Bank stock	2,150	(2,368)
Increase in loans receivable, net	(41,084)	(26,319)
Purchase of premises and equipment	(417)	(1,081)
Proceeds from disposals of premises and equipment	1	34
Proceeds from sale of real estate acquired through foreclosure	1,288	246
Purchase of bank owned life insurance	$ (25)	(203)
Distribution of bank owned life insurance		175
Cash flows used in investing activities	$ (46,860)	(59,592)
Cash flows from financing activities:
Net increase in deposit accounts	96,244	25,459
Net (decrease) increase in Federal Home Loan Bank advances	$ (55,009)	53,000
Net increase in other short-term borrowed funds		36
Principal repayment of subordinated debt		(75)
Net decrease in drafts outstanding	$ (459)	(283)
Net increase in advances from borrowers for insurance and taxes	333	306
Cash dividends paid on common stock	(361)	$ (244)
Net increase in excess tax benefit in connection with equity awards	$ 15
Proceeds from exercise of stock options		$ 33
Cash flows provided by financing activities	$ 40,763	78,232
Net increase in cash and cash equivalents	3,680	5,253
Cash and cash equivalents, beginning of period	26,627	21,147
Cash and cash equivalents, end of period	30,307	26,400
Supplemental disclosure
Cash paid for Interest on deposits and borrowed funds	2,070	1,480
Cash paid for Income taxes paid, net of refunds	$ 1,931	219
Noncash investing and financing activities:
Transfer of loans receivable to real estate acquired through foreclosure		200
Transfer of held-to-maturity securities to available-for-sale securities		$ 10,471

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a bank holding company with one wholly-owned subsidiary, CresCom Bank (the “Bank”). CresCom Bank operates two wholly-owned subsidiaries, Crescent Mortgage Company and Carolina Services Corporation of Charleston (“Carolina Services”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. At March 31, 2016 and December 31, 2015, statutory business trusts (“Trusts”) created by the Company had outstanding trust preferred securities with an aggregate par value of $15,000,000. The principal assets of the Trusts are $15,465,000 of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $465,000 of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on March 14, 2016. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K. Management’s Estimates The financial statements are prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term. Earnings Per Share Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. Weighted-average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. Subsequent Events Subsequent events are material events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure except for the following: On May 3, 2016, the stockholders of the Company approved an increase in the number of authorized common shares from 15,000,000 to 25,000,000. On May 3, 2016, the Company declared a $0.03 per share dividend to stockholders of record on June 22, 2016, payable July 11, 2016. Reclassification Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported. Recently Issued Accounting Pronouncements In May 2014 and August 2015, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments were effective for the Company for fiscal years that begin after December 15, 2015. The Company applied the guidance to stock awards with performance targets that are outstanding at the start of the first fiscal year in the financial statements and to all stock awards that are granted or modified after the effective date. These amendments did not have a material effect on the financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. These amendments did not have a material effect on the financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The amendments did not have a material effect on the financial statements In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. In addition to other changes, the guidance changes the accounting for excess tax benefits and tax deficiencies from generally being recognized in additional paid-in capital to recognition as income tax expense or benefit in the period they occur. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company expects to adopt the new guidance in the second quarter of 2016 and expects the impact to increase diluted earnings per share by $0.02 to $0.03 per diluted share in the second quarter of 2016 with minimal impact during the remainder of 2016. These amendments are not expected to have a material impact to the Company’s financial position and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments securities available-for-sale and held-to-maturity at March 31, 2016 and December 31, 2015 follows: March 31, 2016 December 31, 2015 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 60,302 2,704 (13 ) 62,993 60,603 1,885 (13 ) 62,475 US government agencies — — — — 7,015 81 — 7,096 Collateralized loan obligations 60,777 38 (134 ) 60,681 38,957 8 (207 ) 38,758 Mortgage-backed securities: Agency 107,342 1,719 (115 ) 108,946 112,608 1,370 (123 ) 113,855 Non-agency 74,296 407 (765 ) 73,938 75,415 580 (459 ) 75,536 Total mortgage-backed securities 181,638 2,126 (880 ) 182,884 188,023 1,950 (582 ) 189,391 Trust preferred securities 11,362 831 (4,428 ) 7,765 11,374 1,145 (3,765 ) 8,754 Total $ 314,079 5,699 (5,455 ) 314,323 305,972 5,069 (4,567 ) 306,474 Securities held-to-maturity: Municipal securities $ 16,995 1,034 — 18,029 17,053 912 — 17,965 The amortized cost and fair value of debt securities by contractual maturity at March 31, 2016 follows: At March 31, 2016 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ — — One to five years 236 239 Six to ten years 34,339 34,660 After ten years 279,504 279,424 Total $ 314,079 314,323 Securities held-to-maturity: Less than one year $ — — One to five years 428 443 Six to ten years 4,922 5,048 After ten years 11,645 12,538 Total $ 16,995 18,029 The contractual maturity dates of the securities were used for mortgage-backed securities and asset-backed securities. No estimates were made to anticipate principal repayments. The following table summarizes the gross realized gains and losses from sales of investment securities available-for-sale for the periods indicated. For the Three Months Ended March 31, 2016 2015 (In thousands) Proceeds $ 34,478 27,151 Realized gains $ 534 474 Realized losses (117 ) (3 ) Total investment securities gains, net $ 417 471 At March 31, 2016, the Company had pledged with a market value of $57.4 million of securities for Federal Home Loan Bank (“FHLB”) advances. At March 31, 2016, the Company has pledged $12.2 million of securities to secure public agency funds. The gross unrealized losses and fair value of the Company’s investments available-for-sale with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2016 are as follows: At March 31, 2016 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 2,027 2,014 (13 ) — — — 2,027 2,014 (13 ) Collateralized loan obligations 16,932 16,853 (79 ) 13,205 13,150 (55 ) 30,137 30,003 (134 ) Mortgage-backed securities: Agency 13,031 12,932 (99 ) 1,519 1,503 (16 ) 14,550 14,435 (115 ) Non-agency 27,291 26,790 (501 ) 11,407 11,143 (264 ) 38,698 37,933 (765 ) Total mortgage-backed securities 40,322 39,722 (600 ) 12,926 12,646 (280 ) 53,248 52,368 (880 ) Trust preferred securities 1,405 1,289 (116 ) 8,764 4,452 (4,312 ) 10,169 5,741 (4,428 ) Total $ 60,686 59,878 (808 ) 34,895 30,248 (4,647 ) 95,581 90,126 (5,455 ) The gross unrealized losses and fair value of the Company’s investments available-for-sale with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 are as follows: At December 31, 2015 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 2,579 2,566 (13 ) — — — 2,579 2,566 (13 ) Collateralized loan obligations 24,289 24,130 (159 ) 9,706 9,658 (48 ) 33,995 33,788 (207 ) Mortgage-backed securities: Agency 22,528 22,416 (112 ) 804 793 (11 ) 23,332 23,209 (123 ) Non-agency 27,724 27,432 (292 ) 12,242 12,075 (167 ) 39,966 39,507 (459 ) Total mortgage-backed securities 50,252 49,848 (404 ) 13,046 12,868 (178 ) 63,298 62,716 (582 ) Trust preferred securities — — — 8,803 5,038 (3,765 ) 8,803 5,038 (3,765 ) Total $ 77,120 76,544 (576 ) 31,555 27,564 (3,991 ) 108,675 104,108 (4,567 ) The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether there is any indication of other-than-temporary impairment (“OTTI”). Factors considered in the review include estimated future cash flows, length of time and extent to which market value has been less than cost, the financial condition and near term prospect of the issuer, and our intent and ability to retain the security to allow for an anticipated recovery in market value. If the review determines that there is OTTI, then an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made, or a portion may be recognized in other comprehensive income. The fair value of investments on which OTTI is recognized then becomes the new cost basis of the investment. As of March 31, 2016, trust preferred securities had an amortized cost of $11.4 million and a fair value of $7.8 million. For each trust preferred security, impairment testing is performed on a quarterly basis using a detailed cash flow analysis. The major assumptions used during the quarterly impairment testing are described in the subsequent paragraph. In 2009, the Company adopted a four year “burst” scenario for its modeled default rates (2010 - 2013) that replicated the default rates for the banking industry from the four peak years of the savings and loan crisis, which then reduced to 0.25% annually. The elevated default rate ended in 2013, and the constant default rate used by the Company is now 0.25% annually. All issuers that are currently in deferral were presumed to be in default. Additionally, all defaults are assumed to have a 15% recovery after two years and 1% of the pool is presumed to prepay annually. If this analysis results in a present value of expected cash flows that is less than the book value of a security (that is, a credit loss exists), OTTI is considered to have occurred. If there is no credit loss, any impairment is considered temporary. The cash flow analysis we performed used discount rates equal to the credit spread at the time of purchase for each security and then added the current three-month LIBOR forward interest rate curve. Based on the cash flow analysis performed at period end, management believes that there are no additional securities other-than-temporarily impaired at March 31, 2016. The underlying issuers in the pools were primarily financial institutions and to a lesser extent, insurance companies and real estate investment trusts. The Company owns both senior and mezzanine tranches in pooled trust preferred securities; however, the Company does not own any income notes. The senior and mezzanine tranches of trust preferred collateralized debt obligations generally have some protection from defaults in the form of over-collateralization and excess spread revenues, along with waterfall structures that redirect cash flows in the event certain coverage test requirements are failed. Generally, senior tranches have the greatest protection, with mezzanine tranches subordinated to the senior tranches, and income notes subordinated to the mezzanine tranches. As of March 31, 2016, $0.7 million of the pooled trust preferred securities were investment grade and $7.1 million were below investment grade. As of December 31, 2015, $0.8 million of the pooled trust preferred securities were investment grade and $8.0 million were below investment grade. In terms of risk-based capital calculation, the Company allocates additional risk-based capital to the below investment grade securities. As of March 31, 2016, senior tranches represent $0.7 million of the Company’s pooled securities, while mezzanine tranches represented $7.1 million. All of the $7.1 million in mezzanine tranches are still subordinate to senior tranches as the senior notes have not been paid to a zero balance. As of December 31, 2015, senior tranches represent $0.8 mllion of the Company’s pooled securities, while mezzanine tranches represented $8.0 million. All of the $8.0 million in mezzanine tranches are still subordinate to senior tranches as the senior notes have not been paid to a zero balance. At March 31, 2016 and December 31, 2015, the Company had 43 and 45, respectively, individual investments available-for-sale that were in an unrealized loss position. The unrealized losses on the Company’s investments in US government-sponsored agencies, municipal securities, mortgage-backed securities (agency and non-agency), and trust preferred securities summarized above were attributable primarily to changes in interest rates. Management has performed various analyses, including cash flows as needed, and determined that no OTTI expense was necessary during 2016 or 2015. Management believes that there are no additional securities other-than-temporarily impaired at March 31, 2016. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. Management continues to monitor these securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of the securities may be sold or are other-than-temporarily impaired, which would require a charge to earnings in such periods.

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	NOTE 3 – DERIVATIVES In the ordinary course of business, the Company enters into various types of derivative transactions. The Company’s primary uses of derivative instruments are related to the mortgage banking activities. As such, the Company holds derivative instruments, which consist of rate lock agreements related to expected funding of fixed-rate mortgage loans to customers (interest rate lock commitments) and forward commitments to sell mortgage-backed securities and individual fixed-rate mortgage loans. The Company’s objective in obtaining the forward commitments is to mitigate the interest rate risk associated with the interest rate lock commitments and the mortgage loans that are held for sale. Derivative instruments not related to mortgage banking activities primarily relate to interest rate swap agreements. The derivative positions of the Company at March 31, 2016 and December 31, 2015 are as follows: At March 31, At December 31, 2016 2015 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ — — 180 30,000 Non-hedging derivatives: Mortgage loan interest rate lock commitments 2,022 141,084 1,246 143,318 Mortgage loan forward sales commitments 412 23,691 340 31,513 Mortgage-backed securities forward sales commitments — — 179 105,014 Total derivative assets $ 2,434 164,775 1,945 309,845 Derivative liabilities: Cash flow hedges: Interest rate swaps $ 1,310 30,000 — — Non-hedging derivatives: Interest rate swaps 676 10,000 306 10,000 Mortgage-backed securities forward sales commitments 446 97,000 — — Total derivative liabilities $ 2,432 137,000 306 10,000 Non-Designated Hedges Derivative Loan Commitments and Forward Sales Commitments The Company enters into mortgage loan commitments that are also referred to as derivative loan commitments, if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments typically decreases. Conversely, if interest rates decrease, the value of these loan commitments typically increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Derivatives related to these commitments are recorded as either a derivative asset or a derivative liability on the balance sheet and are measured at fair value. Both the interest rate lock commitments and the forward commitments are reported at fair value, with adjustments recorded in current period earnings in mortgage banking income within the noninterest income in the consolidated statements of operations. Interest Rate Swaps The Company enters into interest rate swaps that do not meet the hedge accounting requirements and are recorded at fair value as a derivative asset or liability. Interest rate swaps that are not designated as hedges are primarily used to more closely match the interest rate characteristics of assets and liabilities and to mitigate the risks arising from timing mismatches between assets and liabilities including duration mismatches. Fair value changes are recognized in noninterest income as “fair value adjustment on interest rate swaps”. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using certain interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has entered into interest rate swaps to reduce the exposure to variability in interest-related cash outflows attributable to changes in forecasted LIBOR-based FHLB borrowings. These derivative instruments are designated as cash flow hedges. The hedged item is the LIBOR portion of the series of future adjustable rate borrowings over the term of the interest rate swap. Accordingly, changes to the amount of interest payment cash flows for the hedged transactions attributable to a change in credit risk are excluded from our assessment of hedge effectiveness. The Company tests for hedging effectiveness on a quarterly basis. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company has not recorded any hedge ineffectiveness since inception. Risk Management Objective of Using Derivatives When using derivatives to hedge fair value and cash flow risks, the Company exposes itself to potential credit risk from the counterparty to the hedging instrument. This credit risk is normally a small percentage of the notional amount and fluctuates as interest rates change. The Company analyzes and approves credit risk for all potential derivative counterparties prior to execution of any derivative transaction. The Company seeks to minimize credit risk by dealing with highly rated counterparties and by obtaining collateralization for exposures above certain predetermined limits. If significant counterparty risk is determined, the Company would adjust the fair value of the derivative recorded asset balance to consider such risk.

LOANS RECEIVABLE, NET

LOANS RECEIVABLE, NET	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
LOANS RECEIVABLE, NET	NOTE 4 - LOANS RECEIVABLE, NET Loans receivable, net at March 31, 2016 and December 31, 2015 are summarized by category as follows: At March 31, At December 31, 2016 2015 % of Total % of Total Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 361,338 37.47 % 343,686 37.23 % Home equity 26,063 2.70 % 23,303 2.52 % Commercial real estate 352,775 36.58 % 342,395 37.10 % Construction and development 99,513 10.32 % 91,713 9.94 % Consumer loans 5,476 0.57 % 5,181 0.56 % Commercial business loans 119,201 12.36 % 116,737 12.65 % Total gross loans receivable 964,366 100.00 % 923,015 100.00 % Less: Allowance for loan losses 10,233 10,141 Deferred fees, net 345 292 Total loans receivable, net $ 953,788 912,582 Included in the loan totals were $61.6 million and $64.1 million in loans acquired through branch acquisitions at March 31, 2016 and December 31, 2015, respectively. No allowance for loan losses related to the acquired loans is recorded on the acquisition date because the fair value of the loans acquired incorporates assumptions regarding credit risk. The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At March 31, At December 31, 2016 2015 (Dollars in thousands) Variable rate loans $ 418,544 43.40 % 399,108 43.24 % Fixed rate loans 545,822 56.60 % 523,907 56.76 % Total loans outstanding $ 964,366 100.00 % 923,015 100.00 % The following table presents activity in the allowance for loan losses for the period indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Allowance for loan losses: For the Three Months Ended March 31, 2016 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance at January 1, 2016 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Provision for loan losses (98 ) 1 (37 ) 90 (2 ) 66 (20 ) — Charge-offs — — — — (2 ) — — (2 ) Recoveries 58 — — 3 6 27 — 94 Balance at March 31, 2016 $ 2,863 152 3,365 1,231 29 2,193 400 10,233 For the Three Months Ended March 31, 2015 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance at January 1, 2015 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Provision for loan losses (179 ) 5 (217 ) 15 (12 ) 242 146 — Charge-offs — — — (90 ) (1 ) (41 ) — (132 ) Recoveries 175 — 225 12 12 52 — 476 Balance at March 31, 2015 $ 2,884 226 3,291 1,006 29 1,683 260 9,379 The following table disaggregates our allowance for loan losses and recorded investment in loans by impairment methodology. Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) At March 31, 2016: Allowance for loan losses ending balances: Individually evaluated for impairment $ 13 — 243 120 — 165 — 541 Collectively evaluated for impairment 2,850 152 3,122 1,111 29 2,028 400 9,692 $ 2,863 152 3,365 1,231 29 2,193 400 10,233 Loans receivable ending balances: Individually evaluated for impairment $ 3,577 — 12,347 500 65 474 — 16,963 Collectively evaluated for impairment 357,761 26,063 340,428 99,013 5,411 118,727 — 947,403 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 — 964,366 At December 31, 2015: Allowance for loan losses ending balances: Individually evaluated for impairment $ 15 — 343 120 — 9 — 487 Collectively evaluated for impairment 2,888 151 3,059 1,018 27 2,091 420 9,654 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Loans receivable ending balances: Individually evaluated for impairment $ 3,968 — 12,499 500 65 482 — 17,514 Collectively evaluated for impairment 339,718 23,303 329,896 91,213 5,116 116,255 — 905,501 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 — 923,015 The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories and the corresponding allowance for loan losses as of March 31, 2016 and December 31, 2015. The recorded investment is defined as the original amount of the loan, net of any deferred costs and fees, less any principal reductions and direct charge-offs. Unpaid principal balance includes amounts previously included in charge-offs. At March 31, 2016 At December 31, 2015 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,062 5,513 — 3,175 5,572 — Home equity — 28 — — 28 — Commercial real estate 10,690 11,234 — 10,681 11,226 — Construction and development 25 1,863 — 25 1,863 — Consumer loans 65 362 — 65 362 — Commercial business loans 312 1,507 — 473 1,668 — 14,154 20,507 — 14,419 20,719 — With an allowance recorded: Loans secured by real estate: One-to-four family 515 515 13 793 793 15 Home equity — — — — — — Commercial real estate 1,657 1,657 243 1,818 1,818 343 Construction and development 475 475 120 475 475 120 Consumer loans — — — — — — Commercial business loans 162 162 165 9 9 9 2,809 2,809 541 3,095 3,095 487 Total: Loans secured by real estate: One-to-four family 3,577 6,028 13 3,968 6,365 15 Home equity — 28 — — 28 — Commercial real estate 12,347 12,891 243 12,499 13,044 343 Construction and development 500 2,338 120 500 2,338 120 Consumer loans 65 362 — 65 362 — Commercial business loans 474 1,669 165 482 1,677 9 $ 16,963 23,316 541 17,514 23,814 487 The following table presents the average recorded investment and interest income recognized on impaired loans individually evaluated for impairment in the segmented portfolio categories for the three months ended March 31, 2016 and 2015. For the Three Months Ended March 31, 2016 2015 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,076 11 2,482 69 Home equity — — 62 — Commercial real estate 10,753 136 7,856 87 Construction and development 25 — 245 — Consumer loans 65 (4 ) 37 — Commercial business loans 318 4 1,718 73 14,237 147 12,400 229 With an allowance recorded: Loans secured by real estate: One-to-four family 518 5 1,007 — Home equity — — — — Commercial real estate 1,671 — 290 3 Construction and development 475 — — — Consumer loans — — — — Commercial business loans 198 (1 ) — — 2,862 4 1,297 3 Total: Loans secured by real estate: One-to-four family 3,594 16 3,489 69 Home equity — — 62 — Commercial real estate 12,424 136 8,146 90 Construction and development 500 — 245 — Consumer loans 65 (4 ) 37 — Commercial business loans 516 3 1,718 73 $ 17,099 151 13,697 232 A loan is considered past due if the required principal and interest payment has not been received as of the due date. The following schedule is an aging of past due loans receivable by portfolio segment as of March 31, 2016 and December 31, 2015. At March 31, 2016 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 151 — — — 16 — 167 60-89 days past due 555 — 132 — — 146 833 90 days or more past due 1,688 — 226 499 25 — 2,438 Total past due 2,394 — 358 499 41 146 3,438 Current 358,944 26,063 352,417 99,014 5,435 119,055 960,928 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 At December 31, 2015 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) 30-59 days past due $ — — — — 1 50 51 60-89 days past due 275 — 182 — — — 457 90 days or more past due 1,960 — 235 499 25 — 2,719 Total past due 2,235 — 417 499 26 50 3,227 Current 341,451 23,303 341,978 91,214 5,155 116,687 919,788 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015 Loans are generally placed in nonaccrual status when the collection of principal and interest is 90 days or more past due, unless the obligation is both well-secured and in the process of collection. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest payments received while the loan is on nonaccrual are applied to the principal balance. No interest income was recognized on impaired loans subsequent to the nonaccrual status designation. A loan is returned to accrual status when the borrower makes consistent payments according to contractual terms and future payments are reasonably assured. There were no loans past due 90 days or more and still accruing at March 31, 2016 or December 31, 2015. The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at March 31, 2016 and December 31, 2015. At March 31, At December 31, 2016 2015 Loans secured by real estate: (In thousands) One-to-four family $ 2,057 2,032 Home equity — — Commercial real estate 1,788 1,686 Construction and development 499 499 Consumer loans 50 50 Commercial business loans 187 35 $ 4,581 4,302 The Company uses several metrics as credit quality indicators of current or potential risks as part of the ongoing monitoring of credit quality of its loan portfolio. The credit quality indicators are periodically reviewed and updated on a case-by-case basis. The Company uses the following definitions for the internal risk rating grades, listed from the least risk to the highest risk. Pass: Special mention: Substandard: Doubtful: The Company uses the following definitions in the tables below: Nonperforming: Performing: The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of March 31, 2016 and December 31, 2015. At March 31, 2016 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 359,046 26,063 346,253 98,791 5,426 116,866 952,445 Special Mention 252 — 4,734 232 — 2,173 7,391 Substandard 2,040 — 1,788 490 50 162 4,530 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 Performing $ 359,281 26,063 350,987 99,014 5,426 119,014 959,785 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,057 — 1,788 499 50 187 4,581 Total nonperforming 2,057 — 1,788 499 50 187 4,581 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 At December 31, 2015 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 340,905 23,303 332,320 91,051 5,133 115,664 908,376 Special Mention 535 — 8,242 172 — 919 9,868 Substandard 2,246 — 1,833 490 48 154 4,771 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015 Performing $ 341,654 23,303 340,709 91,214 5,131 116,702 918,713 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,032 — 1,686 499 50 35 4,302 Total nonperforming 2,032 — 1,686 499 50 35 4,302 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015 The Company is 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. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. Troubled Debt Restructurings At March 31, 2016, there were $14.1 million in loans designated as troubled debt restructurings of which $12.4 million were accruing. At December 31, 2015, there were $14.4 million in loans designated as troubled debt restructurings of which $13.2 million were accruing. There were no loans designated as troubled debt restructuring during the three months ended March 31, 2016. There was one relationship totaling fourteen loans designated as a troubled debt restructuring during the three months ended March 31, 2015. All loans within this relationship were designated as troubled debt restructuring due to a change in payment structure. Eleven loans were within the one-to-four family loan segment with a pre-modification and post-modification recorded investment of $749,000. Two loans were within the commercial real estate loan segment with a pre-modification and post-modification recorded investment of $147,000. One loan was within the commercial and industrial loan segment with a pre-modification and post-modification recorded investment of $14,000. No loans previously restructured in the twelve months prior to March 31, 2016 and 2015 went into default during the three months ended March 31, 2016 and 2015.

REAL ESTATE ACQUIRED THROUGH FO

REAL ESTATE ACQUIRED THROUGH FORECLOSURE	3 Months Ended
	Mar. 31, 2016
Banking and Thrift [Abstract]
REAL ESTATE ACQUIRED THROUGH FORECLOSURE	NOTE 5 – REAL ESTATE ACQUIRED THROUGH FORECLOSURE The following presents summarized activity in other real estate owned for the periods ended March 31, 2016 and December 31, 2015: March 31, December 31, 2016 2015 (In thousands) Balance at beginning of period $ 2,374 3,239 Additions — 1,307 Sales (1,283 ) (2,172 ) Write downs — — Balance at end of period $ 1,091 2,374 A summary of the composition of real estate acquired through foreclosure follows: At March 31, At December 31, 2016 2015 (In thousands) Real estate loans: One-to-four family $ — 773 Commercial real estate — 484 Construction and development 1,091 1,117 $ 1,091 2,374

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2016
Banking and Thrift [Abstract]
DEPOSITS	NOTE 6 - DEPOSITS Deposits outstanding by type of account at March 31, 2016 and December 31, 2015 are summarized as follows: At March 31, At December 31, 2016 2015 (In thousands) Noninterest-bearing demand accounts $ 200,743 163,054 Interest-bearing demand accounts 147,393 158,581 Savings accounts 41,596 39,147 Money market accounts 257,808 223,906 Certificates of deposit: Less than $250,000 459,789 428,067 $250,000 or more 20,443 18,773 Total certificates of deposit 480,232 446,840 Total deposits $ 1,127,772 1,031,528 The aggregate amount of brokered certificates of deposit was $103.6 million and $97.1 million at March 31, 2016 and December 31, 2015, respectively. The aggregate amount of institutional certificates of deposit was $52.8 million and $51.5 million at March 31, 2016 and December 31, 2015, respectively. Brokered certificates of deposit and institutional certificates are included in the table above under certificates of deposit less than $250,000. The Company has pledged $12.2 million of securities as of March 31, 2016 to secure public agency funds.

ESTIMATED FAIR VALUE OF FINANCI

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 7 – ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting literature requires disclosures about the fair value of all financial instruments whether or not recognized in the balance sheet, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized through immediate settlement of the instrument. Certain items are specifically excluded from disclosure requirements, including the Company’s stock, premises and equipment, accrued interest receivable and payable and other assets and liabilities. The fair value of a financial instrument is an amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced sale. Fair values are estimated at a specific point in time based on relevant market information and information about the financial instruments. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. The Company has used management’s best estimate of fair value based on the above assumptions. Thus the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses that would be incurred in an actual sale or settlement are not taken into consideration in the fair values presented. The Company determines the fair value of its financial instruments based on the fair value hierarchy established under ASC 820-10, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the financial instrument’s fair value measurement in its entirety. There are three levels of inputs that may be used to measure fair value. The three levels of inputs of the valuation hierarchy are defined below: Level 1 Quoted prices (unadjusted) in active markets for identical assets and liabilities for the instrument or security to be valued. Level 1 assets include marketable equity securities as well as U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or model-based valuation techniques for which all significant assumptions are derived principally from or corroborated by observable market data. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined by using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. U.S. Government sponsored agency securities, mortgage-backed securities issued by U.S. Government sponsored enterprises and agencies, obligations of states and municipalities, collateralized mortgage obligations issued by U.S. Government sponsored enterprises, and mortgage loans held-for-sale are generally included in this category. Certain private equity investments that invest in publicly traded companies are also considered Level 2 assets. Level 3 Unobservable inputs that are supported by little, if any, market activity for the asset or liability. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow models and similar techniques, and may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. These methods of valuation may result in a significant portion of the fair value being derived from unobservable assumptions that reflect The Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. This category primarily includes collateral-dependent impaired loans, other real estate, certain equity investments, and certain private equity investments. Cash and due from banks - The carrying amounts of these financial instruments approximate fair value. All mature within 90 days and present no anticipated credit concerns. Interest-bearing cash - The carrying amount of these financial instruments approximates fair value. Securities available-for-sale and securities held to maturity – Fair values for investment securities available-for-sale and securities held to maturity are based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. FHLB stock and other non-marketable equity securities - The carrying amount of these financial instruments approximates fair value. Mortgage loans held for sale – Mortgage loans held for sale are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Mortgage loans held for sale are classified within Level 2 of the valuation hierarchy. Loans receivable - The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Further adjustments are made to reflect current market conditions. There is no discount for liquidity included in the expected cash flow assumptions. Loans receivable are classified within Level 3 of the valuation hierarchy. Accrued interest receivable - The fair value approximates the carrying value. Mortgage servicing rights - The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“mortgage servicing rights”) at fair value, if practicable. For subsequent measurement purposes, the Company measures servicing assets and liabilities based on the lower of cost or market. Deposits - The estimated fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The estimated fair value of fixed maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Bank-owned life insurance - The cash surrender value of bank owned life insurance policies held by the Bank approximates fair values of the policies. Short-term borrowed funds - The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within 90 days approximate their fair values. Estimated fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Long-term debt - The estimated fair values of the Company’s long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Derivative assets and liabilities – The primary use of derivative instruments are related to the mortgage banking activities of the Company. The Company’s wholesale mortgage banking subsidiary enters into interest rate lock commitments related to expected funding of residential mortgage loans at specified times in the future. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative instruments under applicable accounting guidance. As such, The Company records its interest rate lock commitments and forward loan sales commitments at fair value, determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, the mortgage subsidiary enters into contractual interest rate lock commitments to extend credit, if approved, at a fixed interest rate and with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage banking subsidiary. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to borrowers, the mortgage banking subsidiary enters into best efforts forward sales contracts with third party investors. The forward sales contracts lock in a price for the sale of loans similar to the specific interest rate lock commitments. Both the interest rate lock commitments to the borrowers and the forward sales contracts to the investors that extend through to the date the loan may close are derivatives, and accordingly, are marked to fair value through earnings. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. The fair value of the interest rate lock commitment is also derived from inputs that include guarantee fees negotiated with the agencies and private investors, buy-up and buy-down values provided by the agencies and private investors, and interest rate spreads for the difference between retail and wholesale mortgage rates. Management also applies fall-out ratio assumptions for those interest rate lock commitments for which we do not close a mortgage loan. The fall-out ratio assumptions are based on the mortgage subsidiary’s historical experience, conversion ratios for similar loan commitments, and market conditions. While fall-out tendencies are not exact predictions of which loans will or will not close, historical performance review of loan-level data provides the basis for determining the appropriate hedge ratios. In addition, on a periodic basis, the mortgage banking subsidiary performs analysis of actual rate lock fall-out experience to determine the sensitivity of the mortgage pipeline to interest rate changes from the date of the commitment through loan origination, and then period end, using applicable published mortgage-backed investment security prices. The expected fall-out ratios (or conversely the “pull-through” percentages) are applied to the determined fair value of the unclosed mortgage pipeline in accordance with GAAP. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. The fair value of the forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. These instruments are defined as Level 2 within the valuation hierarchy. Derivative instruments not related to mortgage banking activities interest rate swap agreements. Fair values for these instruments are based on quoted market prices, when available. As such, the fair value adjustments for derivatives with fair values based on quoted market prices are recurring Level 1. Commitments to extend credit – The carrying amounts of these commitments are considered to be a reasonable estimate of fair value because the commitments underlying interest rates are based upon current market rates. Accrued interest payable - The fair value approximates the carrying value. Off-balance sheet financial instruments – Contract values and fair values for off-balance sheet, credit-related financial instruments are based on estimated fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and counterparties’ credit standing. The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows: At March 31, 2016 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,894 10,894 10,894 — — Interest-bearing cash 19,413 19,413 19,413 — — Securities available-for-sale 314,323 314,323 — 314,323 — Securities held-to-maturity 16,995 18,029 — 18,029 — Federal Home Loan Bank stock 7,769 7,769 — — 7,769 Other investments 3,519 3,519 — — 3,519 Derivative assets 2,434 2,434 — 2,434 — Loans held for sale 31,804 31,804 — 31,804 — Loans receivable, net 953,788 951,622 — — 951,622 Cash value life insurance 28,330 28,330 — 28,330 — Accrued interest receivable 4,504 4,504 — 4,504 — Mortgage servicing rights 11,946 17,113 — — 17,113 Financial liabilities: Deposits 1,127,772 1,128,538 — 1,128,538 — Short-term borrowed funds 70,000 69,930 — 69,930 — Long-term debt 98,465 102,565 — 102,565 — Derivative liabilities 2,432 2,432 1,986 446 — Accrued interest payable 350 350 — 350 — At December 31, 2015 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,206 10,206 10,206 — — Interest-bearing cash 16,421 16,421 16,421 — — Securities available-for-sale 306,474 306,474 — 306,474 — Securities held-to-maturity 17,053 17,965 — 17,965 — Federal Home Loan Bank stock 9,919 9,919 — — 9,919 Other investments 3,273 3,273 — — 3,273 Derivative assets 1,945 1,945 180 1,765 — Loans held for sale 41,774 41,774 — 41,774 — Loans receivable, net 912,582 917,043 — — 917,043 Cash value life insurance 28,082 28,082 — 28,082 — Accrued interest receivable 4,333 4,333 — 4,333 — Mortgage servicing rights 11,433 17,564 — — 17,564 Financial liabilities: Deposits 1,031,528 1,029,406 — 1,029,406 — Short-term borrowed funds 120,000 119,880 — 119,880 — Long-term debt 103,465 105,551 — 105,551 — Derivative liabilities 306 306 306 — — Accrued interest payable 333 333 — 333 — At March 31, 2016 At December 31, 2015 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 76,738 — 70,365 — Standby letters of credit 1,473 — 1,357 — In determining appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to fair value disclosures. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Following is a description of valuation methodologies used for assets recorded at fair value on a recurring and non-recurring basis. Investment Securities Available-for-Sale Measurement is on a recurring basis upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. At March 31, 2016 and December 31, 2015, the Company’s investment securities available-for-sale are recurring Level 2. Mortgage Loans Held for Sale Mortgage loans held for sale are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Mortgage loans held for sale are classified within Level 2 of the valuation hierarchy. Derivative Assets and Liabilities The primary use of derivative instruments is related to the mortgage banking activities of the Company. The Company’s wholesale mortgage banking subsidiary enters into interest rate lock commitments related to expected funding of residential mortgage loans at specified times in the future. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative instruments under applicable accounting guidance. As such, The Company records its interest rate lock commitments and forward loan sales commitments at fair value, determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, the mortgage subsidiary enters into contractual interest rate lock commitments to extend credit, if approved, at a fixed interest rate and with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage banking subsidiary. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to borrowers, the mortgage banking subsidiary enters into best efforts forward sales contracts with third party investors. The forward sales contracts lock in a price for the sale of loans similar to the specific interest rate lock commitments. Both the interest rate lock commitments to the borrowers and the forward sales contracts to the investors that extend through to the date the loan may close are derivatives, and accordingly, are marked to fair value through earnings. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. The fair value of the interest rate lock commitment is also derived from inputs that include guarantee fees negotiated with the agencies and private investors, buy-up and buy-down values provided by the agencies and private investors, and interest rate spreads for the difference between retail and wholesale mortgage rates. Management also applies fall-out ratio assumptions for those interest rate lock commitments for which we do not close a mortgage loan. The fall-out ratio assumptions are based on the mortgage subsidiary’s historical experience, conversion ratios for similar loan commitments, and market conditions. While fall-out tendencies are not exact predictions of which loans will or will not close, historical performance review of loan-level data provides the basis for determining the appropriate hedge ratios. In addition, on a periodic basis, the mortgage banking subsidiary performs analysis of actual rate lock fall-out experience to determine the sensitivity of the mortgage pipeline to interest rate changes from the date of the commitment through loan origination, and then period end, using applicable published mortgage-backed investment security prices. The expected fall-out ratios (or conversely the “pull-through” percentages) are applied to the determined fair value of the unclosed mortgage pipeline in accordance with GAAP. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. The fair value of the forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. These instruments are defined as Level 2 within the valuation hierarchy. Derivative instruments not related to mortgage banking activities include interest rate swap agreements. Fair values for these instruments are based on quoted market prices, when available. As such, the fair value adjustments for derivatives with fair values based on quoted market prices in an active market are recurring Level 1. Impaired Loans Loans that are considered impaired are recorded at fair value on a nonrecurring basis. Once a loan is considered impaired, the fair value is measured using one of several methods, including collateral liquidation value, market value of similar debt and discounted cash flows. Those impaired loans not requiring a specific charge against the allowance represent loans for which the fair value of the expected repayments or collateral meet or exceed the recorded investment in the loan. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Other Real Estate Owned (“OREO”) OREO is carried at the lower of carrying value or fair value on a nonrecurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. When the OREO value is based upon a current appraisal or when a current appraisal is not available or there is estimated further impairment, the measurement is considered a Level 3 measurement. Mortgage Servicing Rights A mortgage servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“mortgage servicing rights”) at fair value, if practicable. For subsequent measurement purposes, the Company measures servicing assets and liabilities based on the lower of cost or market on a quarterly basis. The quarterly determination of fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. Assets and liabilities measured at fair value on a recurring basis are as follows as of March 31, 2016 and December 31, 2015: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2016 Available-for-sale investment securities: Municipal securities $ — 62,993 — Collateralized loan obligations — 60,681 — Mortgage-backed securities: Agency — 108,946 — Non-agency — 73,938 — Trust Preferred Securities — 7,765 — Loans held for sale — 31,804 — Derivative assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments — 2,022 — Mortgage loan forward sales commitments — 412 — Derivative liabilities: Cash flow hedges: Interest rate swaps 1,310 — — Non-hedging derivatives: Interest rate swaps 676 — — Mortgage-backed securities forward sales commitments — 446 — Total $ 1,986 349,007 — December 31, 2015 Available-for-sale investment securities: Municipal securities $ — 62,475 — US government agencies — 7,096 — Collateralized loan obligations — 38,758 — Mortgage-backed securities: Agency — 113,855 — Non-agency — 75,536 — Trust preferred securities — 8,754 — Loans held for sale — 41,774 — Derivative assets: Cash flow hedges: Interest rate swaps 180 — — Non-hedging derivatives: Mortgage loan interest rate lock commitments — 1,246 — Mortgage loan forward sales commitments — 340 — Mortgage-backed securities forward sales commitments — 179 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 306 — — Total $ 486 350,013 — Assets measured at fair value on a nonrecurring basis are as follows as of March 31, 2016 and December 31, 2015: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2016 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,564 Commercial real estate — — 12,104 Construction and development — — 380 Consumer loans — — 65 Commercial business loans — — 309 Real estate owned: Construction and development — — 1,091 Mortgage servicing rights — — 17,113 Total $ — — 34,626 December 31, 2015 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,953 Commercial real estate — — 12,156 Construction and development — — 380 Consumer loans — — 65 Commercial business loans — — 473 Real estate owned: One-to-four family — — 773 Commercial real estate — — 484 Construction and development — — 1,117 Mortgage servicing rights — — 17,564 Total $ — — 36,965 For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of March 31, 2016 and December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows: March 31, 2016 and December 31, 2015 Significant Significant Unobservable Valuation Technique Observable Inputs Inputs Impaired Loans Appraisal Value Appraisals and or sales of Appraisals discounted 10% to 20% for comparable properties sales commissions and other holding costs Real estate owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Comparison Sales/ comparable properties sales commissions and other holding costs Other estimates Mortgage Servicing Rights Discounted cash flows Comparable sales Discount rates ranges 12% - 13% - 2016 and 2015 Prepayment rate 10% - 11% - 2016 Prepayment rate 8% - 9% - 2015

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2016
Earnings per common share:
EARNINGS PER SHARE	NOTE 8 - EARNINGS PER SHARE Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding plus the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Diluted earnings per share include the effects of outstanding stock options and restricted stock issued by the Company, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises and vesting were used to acquire shares of common stock at the average market price during the reporting period. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. All share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. The following is a summary of the reconciliation of weighted average shares outstanding for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Basic Diluted Basic Diluted Weighted average shares outstanding 11,746,574 11,746,574 9,366,172 9,366,172 Effect of dilutive securities — 232,227 — 245,863 Weighted average shares outstanding 11,746,574 11,978,801 9,366,172 9,612,035 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of March 31, 2016 and 2015: As of March 31, 2016 2015 Issued and outstanding shares 12,051,615 9,749,737 Less nonvested restricted stock awards (302,028 ) (383,566 ) Period end dilutive shares 11,749,587 9,366,171

SUPPLEMENTAL SEGMENT INFORMATIO

SUPPLEMENTAL SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
SUPPLEMENTAL SEGMENT INFORMATION	NOTE 9 – SUPPLEMENTAL SEGMENT INFORMATION The Company has three reportable segments: community banking, wholesale mortgage banking (“mortgage banking”) and other. The community banking segment includes traditional banking services offered through CresCom Bank as well as the managerial and operational support provided by Carolina Services. The mortgage banking segment provides wholesale mortgage loan origination and servicing offered through Crescent Mortgage Company. The other segment includes parent company financial information and represents an overhead function rather than an operating segment. The parent company’s most significant assets are its net investments in its subsidiaries. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on net income. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment has different types and levels of credit and interest rate risk. The following tables present selected financial information for the Company’s reportable business segments for the three months ended March 31, 2016 and 2015: Community Mortgage For the Three Months Ended March 31, 2016 Banking Banking Other Eliminations Total (In thousands) Interest income $ 12,944 369 5 42 13,360 Interest expense 1,939 5 148 (5 ) 2,087 Net interest income (expense) 11,005 364 (143 ) 47 11,273 Provision for loan losses — — — — — Noninterest income from external customers 2,133 4,143 — — 6,276 Intersegment noninterest income 243 19 — (262 ) — Noninterest expense 8,429 3,680 159 — 12,268 Intersegment noninterest expense — 241 2 (243 ) — Income (loss) before income taxes 4,952 605 (304 ) 28 5,281 Income tax expense (benefit) 1,539 204 (116 ) 11 1,638 Net income (loss) $ 3,413 401 (188 ) 17 3,643 Community Mortgage For the Three Months Ended March 31, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 11,022 392 4 39 11,457 Interest expense 1,355 11 145 (11 ) 1,500 Net interest income (expense) 9,667 381 (141 ) 50 9,957 Provision for loan losses (37 ) 37 — — — Noninterest income from external customers 1,700 4,890 — — 6,590 Intersegment noninterest income 1 36 1,768 (1,805 ) — Noninterest expense 6,335 3,908 1,932 — 12,175 Intersegment noninterest expense 1,528 241 — (1,769 ) — Income (loss) before income taxes 3,542 1,121 (305 ) 14 4,372 Income tax expense (benefit) 1,069 410 (125 ) 5 1,359 Net income (loss) $ 2,473 711 (180 ) 9 3,013 The following tables present selected financial information for the Company’s reportable business segments for March 31, 2016 and December 31, 2015: Community Mortgage At March 31, 2016 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,448,097 69,642 158,611 (223,310 ) 1,453,040 Loans receivable, net 940,817 19,824 — (6,853 ) 953,788 Loans held for sale 2,963 28,841 — — 31,804 Deposits 1,141,513 — — (13,741 ) 1,127,772 Borrowed funds 153,000 6,200 15,465 (6,200 ) 168,465 Community Mortgage At December 31, 2015 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,404,681 75,926 156,774 (227,712 ) 1,409,669 Loans receivable, net 908,227 17,783 — (13,428 ) 912,582 Loans held for sale 3,466 38,308 — — 41,774 Deposits 1,047,671 — — (16,143 ) 1,031,528 Borrowed funds 208,000 12,748 15,465 (12,748 ) 223,465

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Organization	Organization Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a bank holding company with one wholly-owned subsidiary, CresCom Bank (the “Bank”). CresCom Bank operates two wholly-owned subsidiaries, Crescent Mortgage Company and Carolina Services Corporation of Charleston (“Carolina Services”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. At March 31, 2016 and December 31, 2015, statutory business trusts (“Trusts”) created by the Company had outstanding trust preferred securities with an aggregate par value of $15,000,000. The principal assets of the Trusts are $15,465,000 of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $465,000 of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on March 14, 2016. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K.
Management's Estimates	Management’s Estimates The financial statements are prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. Weighted-average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP.
Subsequent Events	Subsequent Events Subsequent events are material events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure except for the following: On May 3, 2016, the stockholders of the Company approved an increase in the number of authorized common shares from 15,000,000 to 25,000,000. On May 3, 2016, the Company declared a $0.03 per share dividend to stockholders of record on June 22, 2016, payable July 11, 2016.
Reclassification	Reclassification Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014 and August 2015, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments were effective for the Company for fiscal years that begin after December 15, 2015. The Company applied the guidance to stock awards with performance targets that are outstanding at the start of the first fiscal year in the financial statements and to all stock awards that are granted or modified after the effective date. These amendments did not have a material effect on the financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. These amendments did not have a material effect on the financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The amendments did not have a material effect on the financial statements In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. In addition to other changes, the guidance changes the accounting for excess tax benefits and tax deficiencies from generally being recognized in additional paid-in capital to recognition as income tax expense or benefit in the period they occur. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company expects to adopt the new guidance in the second quarter of 2016 and expects the impact to increase diluted earnings per share by $0.02 to $0.03 per diluted share in the second quarter of 2016 with minimal impact during the remainder of 2016. These amendments are not expected to have a material impact to the Company’s financial position and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of investment securities available for sale	March 31, 2016 December 31, 2015 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 60,302 2,704 (13 ) 62,993 60,603 1,885 (13 ) 62,475 US government agencies — — — — 7,015 81 — 7,096 Collateralized loan obligations 60,777 38 (134 ) 60,681 38,957 8 (207 ) 38,758 Mortgage-backed securities: Agency 107,342 1,719 (115 ) 108,946 112,608 1,370 (123 ) 113,855 Non-agency 74,296 407 (765 ) 73,938 75,415 580 (459 ) 75,536 Total mortgage-backed securities 181,638 2,126 (880 ) 182,884 188,023 1,950 (582 ) 189,391 Trust preferred securities 11,362 831 (4,428 ) 7,765 11,374 1,145 (3,765 ) 8,754 Total $ 314,079 5,699 (5,455 ) 314,323 305,972 5,069 (4,567 ) 306,474 Securities held-to-maturity: Municipal securities $ 16,995 1,034 — 18,029 17,053 912 — 17,965
Schedule of amortized costs and fair values of investment securities, by contractual maturity	At March 31, 2016 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ — — One to five years 236 239 Six to ten years 34,339 34,660 After ten years 279,504 279,424 Total $ 314,079 314,323 Securities held-to-maturity: Less than one year $ — — One to five years 428 443 Six to ten years 4,922 5,048 After ten years 11,645 12,538 Total $ 16,995 18,029
Schedule of gross realized gains and losses from sales of investment securities available-for-sale	For the Three Months Ended March 31, 2016 2015 (In thousands) Proceeds $ 34,478 27,151 Realized gains $ 534 474 Realized losses (117 ) (3 ) Total investment securities gains, net $ 417 471
Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time	At March 31, 2016 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 2,027 2,014 (13 ) — — — 2,027 2,014 (13 ) Collateralized loan obligations 16,932 16,853 (79 ) 13,205 13,150 (55 ) 30,137 30,003 (134 ) Mortgage-backed securities: Agency 13,031 12,932 (99 ) 1,519 1,503 (16 ) 14,550 14,435 (115 ) Non-agency 27,291 26,790 (501 ) 11,407 11,143 (264 ) 38,698 37,933 (765 ) Total mortgage-backed securities 40,322 39,722 (600 ) 12,926 12,646 (280 ) 53,248 52,368 (880 ) Trust preferred securities 1,405 1,289 (116 ) 8,764 4,452 (4,312 ) 10,169 5,741 (4,428 ) Total $ 60,686 59,878 (808 ) 34,895 30,248 (4,647 ) 95,581 90,126 (5,455 ) At December 31, 2015 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 2,579 2,566 (13 ) — — — 2,579 2,566 (13 ) Collateralized loan obligations 24,289 24,130 (159 ) 9,706 9,658 (48 ) 33,995 33,788 (207 ) Mortgage-backed securities: Agency 22,528 22,416 (112 ) 804 793 (11 ) 23,332 23,209 (123 ) Non-agency 27,724 27,432 (292 ) 12,242 12,075 (167 ) 39,966 39,507 (459 ) Total mortgage-backed securities 50,252 49,848 (404 ) 13,046 12,868 (178 ) 63,298 62,716 (582 ) Trust preferred securities — — — 8,803 5,038 (3,765 ) 8,803 5,038 (3,765 ) Total $ 77,120 76,544 (576 ) 31,555 27,564 (3,991 ) 108,675 104,108 (4,567 )

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative positions of Company	At March 31, At December 31, 2016 2015 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ — — 180 30,000 Non-hedging derivatives: Mortgage loan interest rate lock commitments 2,022 141,084 1,246 143,318 Mortgage loan forward sales commitments 412 23,691 340 31,513 Mortgage-backed securities forward sales commitments — — 179 105,014 Total derivative assets $ 2,434 164,775 1,945 309,845 Derivative liabilities: Cash flow hedges: Interest rate swaps $ 1,310 30,000 — — Non-hedging derivatives: Interest rate swaps 676 10,000 306 10,000 Mortgage-backed securities forward sales commitments 446 97,000 — — Total derivative liabilities $ 2,432 137,000 306 10,000

LOANS RECEIVABLE, NET (Tables)

LOANS RECEIVABLE, NET (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of categories of loans	Loans receivable, net at March 31, 2016 and December 31, 2015 are summarized by category as follows: At March 31, At December 31, 2016 2015 % of Total % of Total Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 361,338 37.47 % 343,686 37.23 % Home equity 26,063 2.70 % 23,303 2.52 % Commercial real estate 352,775 36.58 % 342,395 37.10 % Construction and development 99,513 10.32 % 91,713 9.94 % Consumer loans 5,476 0.57 % 5,181 0.56 % Commercial business loans 119,201 12.36 % 116,737 12.65 % Total gross loans receivable 964,366 100.00 % 923,015 100.00 % Less: Allowance for loan losses 10,233 10,141 Deferred fees, net 345 292 Total loans receivable, net $ 953,788 912,582 The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At March 31, At December 31, 2016 2015 (Dollars in thousands) Variable rate loans $ 418,544 43.40 % 399,108 43.24 % Fixed rate loans 545,822 56.60 % 523,907 56.76 % Total loans outstanding $ 964,366 100.00 % 923,015 100.00 %
Schedule of activity in the allowance for loan losses	Allowance for loan losses: For the Three Months Ended March 31, 2016 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance at January 1, 2016 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Provision for loan losses (98 ) 1 (37 ) 90 (2 ) 66 (20 ) — Charge-offs — — — — (2 ) — — (2 ) Recoveries 58 — — 3 6 27 — 94 Balance at March 31, 2016 $ 2,863 152 3,365 1,231 29 2,193 400 10,233 For the Three Months Ended March 31, 2015 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance at January 1, 2015 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Provision for loan losses (179 ) 5 (217 ) 15 (12 ) 242 146 — Charge-offs — — — (90 ) (1 ) (41 ) — (132 ) Recoveries 175 — 225 12 12 52 — 476 Balance at March 31, 2015 $ 2,884 226 3,291 1,006 29 1,683 260 9,379
Schedule of allowance for loan losses and recorded investment in loans by impairment methodology	Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) At March 31, 2016: Allowance for loan losses ending balances: Individually evaluated for impairment $ 13 — 243 120 — 165 — 541 Collectively evaluated for impairment 2,850 152 3,122 1,111 29 2,028 400 9,692 $ 2,863 152 3,365 1,231 29 2,193 400 10,233 Loans receivable ending balances: Individually evaluated for impairment $ 3,577 — 12,347 500 65 474 — 16,963 Collectively evaluated for impairment 357,761 26,063 340,428 99,013 5,411 118,727 — 947,403 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 — 964,366 At December 31, 2015: Allowance for loan losses ending balances: Individually evaluated for impairment $ 15 — 343 120 — 9 — 487 Collectively evaluated for impairment 2,888 151 3,059 1,018 27 2,091 420 9,654 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Loans receivable ending balances: Individually evaluated for impairment $ 3,968 — 12,499 500 65 482 — 17,514 Collectively evaluated for impairment 339,718 23,303 329,896 91,213 5,116 116,255 — 905,501 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 — 923,015
Schedule of impaired loans by class of loans	At March 31, 2016 At December 31, 2015 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,062 5,513 — 3,175 5,572 — Home equity — 28 — — 28 — Commercial real estate 10,690 11,234 — 10,681 11,226 — Construction and development 25 1,863 — 25 1,863 — Consumer loans 65 362 — 65 362 — Commercial business loans 312 1,507 — 473 1,668 — 14,154 20,507 — 14,419 20,719 — With an allowance recorded: Loans secured by real estate: One-to-four family 515 515 13 793 793 15 Home equity — — — — — — Commercial real estate 1,657 1,657 243 1,818 1,818 343 Construction and development 475 475 120 475 475 120 Consumer loans — — — — — — Commercial business loans 162 162 165 9 9 9 2,809 2,809 541 3,095 3,095 487 Total: Loans secured by real estate: One-to-four family 3,577 6,028 13 3,968 6,365 15 Home equity — 28 — — 28 — Commercial real estate 12,347 12,891 243 12,499 13,044 343 Construction and development 500 2,338 120 500 2,338 120 Consumer loans 65 362 — 65 362 — Commercial business loans 474 1,669 165 482 1,677 9 $ 16,963 23,316 541 17,514 23,814 487 For the Three Months Ended March 31, 2016 2015 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,076 11 2,482 69 Home equity — — 62 — Commercial real estate 10,753 136 7,856 87 Construction and development 25 — 245 — Consumer loans 65 (4 ) 37 — Commercial business loans 318 4 1,718 73 14,237 147 12,400 229 With an allowance recorded: Loans secured by real estate: One-to-four family 518 5 1,007 — Home equity — — — — Commercial real estate 1,671 — 290 3 Construction and development 475 — — — Consumer loans — — — — Commercial business loans 198 (1 ) — — 2,862 4 1,297 3 Total: Loans secured by real estate: One-to-four family 3,594 16 3,489 69 Home equity — — 62 — Commercial real estate 12,424 136 8,146 90 Construction and development 500 — 245 — Consumer loans 65 (4 ) 37 — Commercial business loans 516 3 1,718 73 $ 17,099 151 13,697 232
Schedule of aging of the recorded investment in past due loans by class of loans	At March 31, 2016 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 151 — — — 16 — 167 60-89 days past due 555 — 132 — — 146 833 90 days or more past due 1,688 — 226 499 25 — 2,438 Total past due 2,394 — 358 499 41 146 3,438 Current 358,944 26,063 352,417 99,014 5,435 119,055 960,928 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 At December 31, 2015 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) 30-59 days past due $ — — — — 1 50 51 60-89 days past due 275 — 182 — — — 457 90 days or more past due 1,960 — 235 499 25 — 2,719 Total past due 2,235 — 417 499 26 50 3,227 Current 341,451 23,303 341,978 91,214 5,155 116,687 919,788 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015
Schedule of analysis of loans receivables on nonaccrual status	At March 31, At December 31, 2016 2015 Loans secured by real estate: (In thousands) One-to-four family $ 2,057 2,032 Home equity — — Commercial real estate 1,788 1,686 Construction and development 499 499 Consumer loans 50 50 Commercial business loans 187 35 $ 4,581 4,302
Schedule of analysis of loan portfolio by credit quality indicators	At March 31, 2016 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 359,046 26,063 346,253 98,791 5,426 116,866 952,445 Special Mention 252 — 4,734 232 — 2,173 7,391 Substandard 2,040 — 1,788 490 50 162 4,530 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 Performing $ 359,281 26,063 350,987 99,014 5,426 119,014 959,785 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,057 — 1,788 499 50 187 4,581 Total nonperforming 2,057 — 1,788 499 50 187 4,581 Total loans receivable $ 361,338 26,063 352,775 99,513 5,476 119,201 964,366 At December 31, 2015 Real Estate Loans One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 340,905 23,303 332,320 91,051 5,133 115,664 908,376 Special Mention 535 — 8,242 172 — 919 9,868 Substandard 2,246 — 1,833 490 48 154 4,771 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015 Performing $ 341,654 23,303 340,709 91,214 5,131 116,702 918,713 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,032 — 1,686 499 50 35 4,302 Total nonperforming 2,032 — 1,686 499 50 35 4,302 Total loans receivable $ 343,686 23,303 342,395 91,713 5,181 116,737 923,015

REAL ESTATE ACQUIRED THROUGH 21

REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Tables)	3 Months Ended
	Mar. 31, 2016
Banking and Thrift [Abstract]
Summary of Changes in Other Real Estate Owned	March 31, December 31, 2016 2015 (In thousands) Balance at beginning of period $ 2,374 3,239 Additions — 1,307 Sales (1,283 ) (2,172 ) Write downs — — Balance at end of period $ 1,091 2,374
Schedule of composition of other real estate owned	At March 31, At December 31, 2016 2015 (In thousands) Real estate loans: One-to-four family $ — 773 Commercial real estate — 484 Construction and development 1,091 1,117 $ 1,091 2,374

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2016
Banking and Thrift [Abstract]
Summary of Deposits outstanding	At March 31, At December 31, 2016 2015 (In thousands) Noninterest-bearing demand accounts $ 200,743 163,054 Interest-bearing demand accounts 147,393 158,581 Savings accounts 41,596 39,147 Money market accounts 257,808 223,906 Certificates of deposit: Less than $250,000 459,789 428,067 $250,000 or more 20,443 18,773 Total certificates of deposit 480,232 446,840 Total deposits $ 1,127,772 1,031,528

ESTIMATED FAIR VALUE OF FINAN23

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of carrying amount and estimated fair value of the Company's financial instruments	At March 31, 2016 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,894 10,894 10,894 — — Interest-bearing cash 19,413 19,413 19,413 — — Securities available-for-sale 314,323 314,323 — 314,323 — Securities held-to-maturity 16,995 18,029 — 18,029 — Federal Home Loan Bank stock 7,769 7,769 — — 7,769 Other investments 3,519 3,519 — — 3,519 Derivative assets 2,434 2,434 — 2,434 — Loans held for sale 31,804 31,804 — 31,804 — Loans receivable, net 953,788 951,622 — — 951,622 Cash value life insurance 28,330 28,330 — 28,330 — Accrued interest receivable 4,504 4,504 — 4,504 — Mortgage servicing rights 11,946 17,113 — — 17,113 Financial liabilities: Deposits 1,127,772 1,128,538 — 1,128,538 — Short-term borrowed funds 70,000 69,930 — 69,930 — Long-term debt 98,465 102,565 — 102,565 — Derivative liabilities 2,432 2,432 1,986 446 — Accrued interest payable 350 350 — 350 — At December 31, 2015 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,206 10,206 10,206 — — Interest-bearing cash 16,421 16,421 16,421 — — Securities available-for-sale 306,474 306,474 — 306,474 — Securities held-to-maturity 17,053 17,965 — 17,965 — Federal Home Loan Bank stock 9,919 9,919 — — 9,919 Other investments 3,273 3,273 — — 3,273 Derivative assets 1,945 1,945 180 1,765 — Loans held for sale 41,774 41,774 — 41,774 — Loans receivable, net 912,582 917,043 — — 917,043 Cash value life insurance 28,082 28,082 — 28,082 — Accrued interest receivable 4,333 4,333 — 4,333 — Mortgage servicing rights 11,433 17,564 — — 17,564 Financial liabilities: Deposits 1,031,528 1,029,406 — 1,029,406 — Short-term borrowed funds 120,000 119,880 — 119,880 — Long-term debt 103,465 105,551 — 105,551 — Derivative liabilities 306 306 306 — — Accrued interest payable 333 333 — 333 —
Schedule of notional amount and estimated fair values of off-balance sheet financial instruments	At March 31, 2016 At December 31, 2015 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 76,738 — 70,365 — Standby letters of credit 1,473 — 1,357 —
Summary of assets and liabilities measured at fair value on a recurring basis	Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2016 Available-for-sale investment securities: Municipal securities $ — 62,993 — Collateralized loan obligations — 60,681 — Mortgage-backed securities: Agency — 108,946 — Non-agency — 73,938 — Trust Preferred Securities — 7,765 — Loans held for sale — 31,804 — Derivative assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments — 2,022 — Mortgage loan forward sales commitments — 412 — Derivative liabilities: Cash flow hedges: Interest rate swaps 1,310 — — Non-hedging derivatives: Interest rate swaps 676 — — Mortgage-backed securities forward sales commitments — 446 — Total $ 1,986 349,007 — December 31, 2015 Available-for-sale investment securities: Municipal securities $ — 62,475 — US government agencies — 7,096 — Collateralized loan obligations — 38,758 — Mortgage-backed securities: Agency — 113,855 — Non-agency — 75,536 — Trust preferred securities — 8,754 — Loans held for sale — 41,774 — Derivative assets: Cash flow hedges: Interest rate swaps 180 — — Non-hedging derivatives: Mortgage loan interest rate lock commitments — 1,246 — Mortgage loan forward sales commitments — 340 — Mortgage-backed securities forward sales commitments — 179 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 306 — — Total $ 486 350,013 —
Summary of assets and liabilities measured at a fair value on a nonrecurring basis	Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2016 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,564 Commercial real estate — — 12,104 Construction and development — — 380 Consumer loans — — 65 Commercial business loans — — 309 Real estate owned: Construction and development — — 1,091 Mortgage servicing rights — — 17,113 Total $ — — 34,626 December 31, 2015 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,953 Commercial real estate — — 12,156 Construction and development — — 380 Consumer loans — — 65 Commercial business loans — — 473 Real estate owned: One-to-four family — — 773 Commercial real estate — — 484 Construction and development — — 1,117 Mortgage servicing rights — — 17,564 Total $ — — 36,965
Schedule of significant unobservable inputs used in the fair value measurements	March 31, 2016 and December 31, 2015 Significant Significant Unobservable Valuation Technique Observable Inputs Inputs Impaired Loans Appraisal Value Appraisals and or sales of Appraisals discounted 10% to 20% for comparable properties sales commissions and other holding costs Real estate owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Comparison Sales/ comparable properties sales commissions and other holding costs Other estimates Mortgage Servicing Rights Discounted cash flows Comparable sales Discount rates ranges 12% - 13% - 2016 and 2015 Prepayment rate 10% - 11% - 2016 Prepayment rate 8% - 9% - 2015

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings per common share:
Schedule of reconciliation of average shares outstanding	The following is a summary of the reconciliation of weighted average shares outstanding for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Basic Diluted Basic Diluted Weighted average shares outstanding 11,746,574 11,746,574 9,366,172 9,366,172 Effect of dilutive securities — 232,227 — 245,863 Weighted average shares outstanding 11,746,574 11,978,801 9,366,172 9,612,035 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of March 31, 2016 and 2015: As of March 31, 2016 2015 Issued and outstanding shares 12,051,615 9,749,737 Less nonvested restricted stock awards (302,028 ) (383,566 ) Period end dilutive shares 11,749,587 9,366,171

SUPPLEMENTAL SEGMENT INFORMAT25

SUPPLEMENTAL SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of Selected Financial Information of Company's reportable business segments	Community Mortgage For the Three Months Ended March 31, 2016 Banking Banking Other Eliminations Total (In thousands) Interest income $ 12,944 369 5 42 13,360 Interest expense 1,939 5 148 (5 ) 2,087 Net interest income (expense) 11,005 364 (143 ) 47 11,273 Provision for loan losses — — — — — Noninterest income from external customers 2,133 4,143 — — 6,276 Intersegment noninterest income 243 19 — (262 ) — Noninterest expense 8,429 3,680 159 — 12,268 Intersegment noninterest expense — 241 2 (243 ) — Income (loss) before income taxes 4,952 605 (304 ) 28 5,281 Income tax expense (benefit) 1,539 204 (116 ) 11 1,638 Net income (loss) $ 3,413 401 (188 ) 17 3,643 Community Mortgage For the Three Months Ended March 31, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 11,022 392 4 39 11,457 Interest expense 1,355 11 145 (11 ) 1,500 Net interest income (expense) 9,667 381 (141 ) 50 9,957 Provision for loan losses (37 ) 37 — — — Noninterest income from external customers 1,700 4,890 — — 6,590 Intersegment noninterest income 1 36 1,768 (1,805 ) — Noninterest expense 6,335 3,908 1,932 — 12,175 Intersegment noninterest expense 1,528 241 — (1,769 ) — Income (loss) before income taxes 3,542 1,121 (305 ) 14 4,372 Income tax expense (benefit) 1,069 410 (125 ) 5 1,359 Net income (loss) $ 2,473 711 (180 ) 9 3,013 Community Mortgage At March 31, 2016 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,448,097 69,642 158,611 (223,310 ) 1,453,040 Loans receivable, net 940,817 19,824 — (6,853 ) 953,788 Loans held for sale 2,963 28,841 — — 31,804 Deposits 1,141,513 — — (13,741 ) 1,127,772 Borrowed funds 153,000 6,200 15,465 (6,200 ) 168,465 Community Mortgage At December 31, 2015 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,404,681 75,926 156,774 (227,712 ) 1,409,669 Loans receivable, net 908,227 17,783 — (13,428 ) 912,582 Loans held for sale 3,466 38,308 — — 41,774 Deposits 1,047,671 — — (16,143 ) 1,031,528 Borrowed funds 208,000 12,748 15,465 (12,748 ) 223,465

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	May. 03, 2016	Mar. 31, 2016	Dec. 31, 2015
Value of common stock issued to company		$ 121	$ 120
Description of stock split		On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015.
Common stock, shares authorized		15,000,000	15,000,000
Subsequent Event [Member]
Dividend Declared to Stockholders	$ 0.03
Dividend Declared, Record Date	Jun. 22, 2016
Dividend Declared, Payable Date	Jul. 11, 2016
Common stock, shares authorized	25,000,000
Statutory Business Trusts [Member]
Principal amount owed		$ 15,000	$ 15,000
Principal assets of the Trusts		15,465	15,465
Value of common stock issued to company		$ 465	$ 465

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Available For Sale
Amortized Cost	$ 314,079	$ 305,972
Unrealized Gains	5,699	5,069
Unrealized Losses	(5,455)	(4,567)
Securities available for sale	314,323	306,474
Held-to-maturity Securities
Amortized Cost	16,995	17,053
Unrealized Gains	$ 1,034	$ 912
Unrealized Loss
Fair Value	$ 18,029	$ 17,965
Municipal securities [Member]
Available For Sale
Amortized Cost	60,302	60,603
Unrealized Gains	2,704	1,885
Unrealized Losses	(13)	(13)
Securities available for sale	62,993	62,475
Held-to-maturity Securities
Amortized Cost	16,995	17,053
Unrealized Gains	$ 1,034	$ 912
Unrealized Loss
Fair Value	$ 18,029	$ 17,965
US government agencies [Member]
Available For Sale
Amortized Cost		7,015
Unrealized Gains		$ 81
Unrealized Losses
Securities available for sale		$ 7,096
Collateralized loan obligations [Member]
Available For Sale
Amortized Cost	$ 60,777	38,957
Unrealized Gains	38	8
Unrealized Losses	(134)	(207)
Securities available for sale	60,681	38,758
Mortgage-backed securities Agency [Member]
Available For Sale
Amortized Cost	107,342	112,608
Unrealized Gains	1,719	1,370
Unrealized Losses	(115)	(123)
Securities available for sale	108,946	113,855
Mortgage-backed securities Non-agency [Member]
Available For Sale
Amortized Cost	74,296	75,415
Unrealized Gains	407	580
Unrealized Losses	(765)	(459)
Securities available for sale	73,938	75,536
Total mortgage-backed securities [Member]
Available For Sale
Amortized Cost	181,638	188,023
Unrealized Gains	2,126	1,950
Unrealized Losses	(880)	(582)
Securities available for sale	182,884	189,391
Trust preferred securities [Member]
Available For Sale
Amortized Cost	11,362	11,374
Unrealized Gains	831	1,145
Unrealized Losses	(4,428)	(3,765)
Securities available for sale	$ 7,765	$ 8,754

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment securities, Amortized Cost
Less than one year
One to five years	$ 236
Six to ten years	34,339
After ten years	279,504
Total	$ 314,079	$ 305,972
Investment securities, Fair Value
Less than one year
One to five years	$ 239
Six to ten years	34,660
After ten years	279,424
Securities available for sale	$ 314,323	306,474
Amortized Cost
Less than one year
One to five years	$ 428
Six to ten years	4,922
After ten years	11,645
Total	$ 16,995	17,053
Fair Value
Less than one year
One to five years	$ 443
Six to ten years	5,048
After ten years	12,538
Total	$ 18,029	$ 17,965

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Gross realized gains and losses, Available-for-sale
Proceeds	$ 34,478	$ 27,151
Realized gains	534	474
Realized losses	(117)	(3)
Total investment securities gains, net	$ 417	$ 471

SECURITIES (Details 4)

SECURITIES (Details 4) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Available For Sale Securities
Less than 12 Months, Amortized Cost	$ 60,686	$ 77,120
Less than 12 Months, Fair Value	59,878	76,544
Less than 12 Months, Unrealized Losses	(808)	(576)
Greater than 12 Months, Amortized Cost	34,895	31,555
Greater than 12 Months, Fair Value	30,248	27,564
Greater than 12 Months, Unrealized Losses	(4,647)	(3,991)
Total, Amortized Cost	95,581	108,675
Total, Fair Value	90,126	104,108
Total, Unrealized Losses	(5,455)	(4,567)
Municipal securities [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	2,027	2,579
Less than 12 Months, Fair Value	2,014	2,566
Less than 12 Months, Unrealized Losses	$ (13)	$ (13)
Greater than 12 Months, Amortized Cost
Greater than 12 Months, Fair Value
Greater than 12 Months, Unrealized Losses
Total, Amortized Cost	$ 2,027	$ 2,579
Total, Fair Value	2,014	2,566
Total, Unrealized Losses	(13)	(13)
Collateralized loan obligations [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	16,932	24,289
Less than 12 Months, Fair Value	16,853	24,130
Less than 12 Months, Unrealized Losses	(79)	(159)
Greater than 12 Months, Amortized Cost	13,205	9,706
Greater than 12 Months, Fair Value	13,150	9,658
Greater than 12 Months, Unrealized Losses	(55)	(48)
Total, Amortized Cost	30,137	33,995
Total, Fair Value	30,003	33,788
Total, Unrealized Losses	(134)	(207)
Mortgage-backed securities Agency [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	13,031	22,528
Less than 12 Months, Fair Value	12,932	22,416
Less than 12 Months, Unrealized Losses	(99)	(112)
Greater than 12 Months, Amortized Cost	1,519	804
Greater than 12 Months, Fair Value	1,503	793
Greater than 12 Months, Unrealized Losses	(16)	(11)
Total, Amortized Cost	14,550	23,332
Total, Fair Value	14,435	23,209
Total, Unrealized Losses	(115)	(123)
Mortgage-backed securities Non-agency [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	27,291	27,724
Less than 12 Months, Fair Value	26,790	27,432
Less than 12 Months, Unrealized Losses	(501)	(292)
Greater than 12 Months, Amortized Cost	11,407	12,242
Greater than 12 Months, Fair Value	11,143	12,075
Greater than 12 Months, Unrealized Losses	(264)	(167)
Total, Amortized Cost	38,698	39,966
Total, Fair Value	37,933	39,507
Total, Unrealized Losses	(765)	(459)
Total mortgage-backed securities [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	40,322	50,252
Less than 12 Months, Fair Value	39,722	49,848
Less than 12 Months, Unrealized Losses	(600)	(404)
Greater than 12 Months, Amortized Cost	12,926	13,046
Greater than 12 Months, Fair Value	12,646	12,868
Greater than 12 Months, Unrealized Losses	(280)	(178)
Total, Amortized Cost	53,248	63,298
Total, Fair Value	52,368	62,716
Total, Unrealized Losses	(880)	$ (582)
Trust preferred securities [Member]
Available For Sale Securities
Less than 12 Months, Amortized Cost	1,405
Less than 12 Months, Fair Value	1,289
Less than 12 Months, Unrealized Losses	(116)
Greater than 12 Months, Amortized Cost	8,764	$ 8,803
Greater than 12 Months, Fair Value	4,452	5,038
Greater than 12 Months, Unrealized Losses	(4,312)	(3,765)
Total, Amortized Cost	10,169	8,803
Total, Fair Value	5,741	5,038
Total, Unrealized Losses	$ (4,428)	$ (3,765)

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) $ in Thousands	Mar. 31, 2016USD ($)Item	Dec. 31, 2015USD ($)Item
Securities Details 2
Amortized cost of securities reclassified to available-for-sale from held-to-maturity	$ 11,400
Pooled trust preferred securities in Investment Grade	700	$ 800
Below investment grade security	7,100	8,000
Senior tranches representing Company's Pooled securities	700	800
Mezzanine tranches subordinate to senior tranches	7,100	$ 8,000
Available for Sale Securities pledged for FHLB advances	57,400
Available for Sale Securities pledged to secure public agency funds	$ 12,200
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | Item	43	45

DERIVATIVES (Details)

DERIVATIVES (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Asset derivatives, Fair value	$ 2,434	$ 1,945
Notional Value, Assets	164,775	309,845
Liability derivatives, Fair value	2,432	306
Notional Value, Liability	$ 137,000	10,000
Interest rate swaps [Member]
Asset derivatives, Fair value		180
Notional Value, Assets		30,000
Liability derivatives, Fair value	$ 1,986	306
Notional Value, Liability	40,000	10,000
Mortgage loan interest rate lock commitments [Member]
Asset derivatives, Fair value	2,022	1,246
Notional Value, Assets	$ 141,084	143,318
Liability derivatives, Fair value
Notional Value, Liability
Mortgage loan forward sales commitments [Member]
Asset derivatives, Fair value	$ 412	340
Notional Value, Assets	$ 23,691	31,513
Mortgage-backed securities forward sales commitments [Member]
Asset derivatives, Fair value		179
Notional Value, Assets		$ 105,014
Liability derivatives, Fair value	$ 446
Notional Value, Liability	$ 97,000

LOANS RECEIVABLE, NET (Details)

LOANS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Total gross loans receivable	$ 964,366	$ 923,015
Percentage of Total Loan	100.00%	100.00%
Allowance for loan losses	$ 10,233	$ 10,141	$ 9,379	$ 9,035
Deferred fees, net	345	292
Total loans receivable, net	953,788	912,582
Consumer loans [Member]
Total gross loans receivable	$ 5,476	$ 5,181
Percentage of Total Loan	0.57%	0.56%
Allowance for loan losses	$ 29	$ 27	29	30
Commercial business loans [Member]
Total gross loans receivable	$ 119,201	$ 116,737
Percentage of Total Loan	12.36%	12.65%
Allowance for loan losses	$ 2,193	$ 2,100	1,683	1,430
Mortgage Receivables [Member] | One-to-four family [Member]
Total gross loans receivable	$ 361,338	$ 343,686
Percentage of Total Loan	37.47%	37.23%
Allowance for loan losses	$ 2,863	$ 2,903	2,884	2,888
Mortgage Receivables [Member] | Home equity [Member]
Total gross loans receivable	$ 26,063	$ 23,303
Percentage of Total Loan	2.70%	2.52%
Allowance for loan losses	$ 152	$ 151	226	221
Mortgage Receivables [Member] | Commercial real estate [Member]
Total gross loans receivable	$ 352,775	$ 342,395
Percentage of Total Loan	36.85%	37.10%
Allowance for loan losses	$ 3,365	$ 3,402	3,291	3,283
Mortgage Receivables [Member] | Construction and development [Member]
Total gross loans receivable	$ 99,513	$ 91,713
Percentage of Total Loan	10.32%	9.94%
Allowance for loan losses	$ 1,231	$ 1,138	$ 1,006	$ 1,069

LOANS RECEIVABLE, NET (Details

LOANS RECEIVABLE, NET (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Loans Receivable Net Details 2
Variable rate loans	$ 418,544	$ 399,108
Variable rate loans (as a percentage)	43.40%	43.24%
Fixed rate loans	$ 545,822	$ 523,907
Fixed rate loans (as a percentage)	56.60%	56.76%
Total loans outstanding	$ 964,366	$ 923,015
Total loans outstanding (as a percentage)	100.00%	100.00%

LOANS RECEIVABLE, NET (Detail35

LOANS RECEIVABLE, NET (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	$ 10,141	$ 9,035
Provision for Loan Losses
Charge-Offs	$ (2)	$ (132)
Recoveries	94	476
Ending Balance	10,233	9,379
Consumer loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	27	30
Provision for Loan Losses	(2)	(12)
Charge-Offs	(2)	(1)
Recoveries	6	12
Ending Balance	29	29
Commercial business loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	2,100	1,430
Provision for Loan Losses	$ 66	242
Charge-Offs		(41)
Recoveries	$ 27	52
Ending Balance	2,193	1,683
Unallocated [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	420	114
Provision for Loan Losses	$ (20)	$ 146
Charge-Offs
Recoveries
Ending Balance	$ 400	$ 260
Mortgage Receivables [Member] | One-to-four family [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	2,903	2,888
Provision for Loan Losses	$ (98)	$ (179)
Charge-Offs
Recoveries	$ 58	$ 175
Ending Balance	2,863	2,884
Mortgage Receivables [Member] | Home equity [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	151	221
Provision for Loan Losses	$ 1	$ 5
Charge-Offs
Recoveries
Ending Balance	$ 152	$ 226
Mortgage Receivables [Member] | Commercial real estate [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	3,402	3,283
Provision for Loan Losses	$ (37)	$ (217)
Charge-Offs
Recoveries		$ 225
Ending Balance	$ 3,365	3,291
Mortgage Receivables [Member] | Construction and development [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	1,138	1,069
Provision for Loan Losses	$ 90	15
Charge-Offs		(90)
Recoveries	$ 3	12
Ending Balance	$ 1,231	$ 1,006

LOANS RECEIVABLE, NET (Detail36

LOANS RECEIVABLE, NET (Details 4) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment	$ 541	$ 487
Loans Collectively Evaluated for Impairment	9,692	9,654
Ending Balance	10,233	10,141
Loans receivable ending balances:
Individually Evaluated for Impairment	16,963	17,514
Collectively Evaluated for Impairment	947,403	905,501
Total	$ 964,366	$ 923,015
Consumer loans [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment
Loans Collectively Evaluated for Impairment	$ 29	$ 27
Ending Balance	29	27
Loans receivable ending balances:
Individually Evaluated for Impairment	65	65
Collectively Evaluated for Impairment	5,411	5,116
Total	5,476	5,181
Commercial business loans [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment	165	9
Loans Collectively Evaluated for Impairment	2,028	2,091
Ending Balance	2,193	2,100
Loans receivable ending balances:
Individually Evaluated for Impairment	474	482
Collectively Evaluated for Impairment	118,727	116,255
Total	$ 119,201	$ 116,737
Unallocated [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment
Loans Collectively Evaluated for Impairment	$ 400	$ 420
Ending Balance	$ 400	$ 420
Loans receivable ending balances:
Individually Evaluated for Impairment
Collectively Evaluated for Impairment
Total
Mortgage Receivables [Member] | One-to-four family [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment	$ 13	$ 15
Loans Collectively Evaluated for Impairment	2,850	2,888
Ending Balance	2,863	2,903
Loans receivable ending balances:
Individually Evaluated for Impairment	3,577	3,968
Collectively Evaluated for Impairment	357,761	339,718
Total	$ 361,338	$ 343,686
Mortgage Receivables [Member] | Home equity [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment
Loans Collectively Evaluated for Impairment	$ 152	$ 151
Ending Balance	$ 152	$ 151
Loans receivable ending balances:
Individually Evaluated for Impairment
Collectively Evaluated for Impairment	$ 26,063	$ 23,303
Total	26,063	23,303
Mortgage Receivables [Member] | Commercial real estate [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment	243	343
Loans Collectively Evaluated for Impairment	3,122	3,059
Ending Balance	3,365	3,402
Loans receivable ending balances:
Individually Evaluated for Impairment	12,347	12,499
Collectively Evaluated for Impairment	340,428	329,896
Total	352,775	342,395
Mortgage Receivables [Member] | Construction and development [Member]
Allowance for loan losses ending balances:
Loans Individually Evaluated for Impairment	120	120
Loans Collectively Evaluated for Impairment	1,111	1,018
Ending Balance	1,231	1,138
Loans receivable ending balances:
Individually Evaluated for Impairment	500	500
Collectively Evaluated for Impairment	99,013	91,213
Total	$ 99,513	$ 91,713

LOANS RECEIVABLE, NET (Detail37

LOANS RECEIVABLE, NET (Details 5) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 14,154		$ 14,419
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,809		3,095
Impaired Financing Receivable, Recorded Investment	16,963		17,514
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	20,507		20,719
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	2,809		3,095
Impaired Financing Receivable, Unpaid Principal Balance	23,316		23,814
Impaired Financing Receivable, Related Allowance	541		487
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	14,237	$ 12,400
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	2,862	1,297
Impaired Financing Receivable, Average Recorded Investment	17,099	13,697
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	147	229
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	4	3
Impaired Financing Receivable, Interest Income, Accrual Method	151	232
Consumer loans [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 65		$ 65
Impaired Financing Receivable, with Related Allowance, Recorded Investment
Impaired Financing Receivable, Recorded Investment	$ 65		$ 65
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	$ 362		$ 362
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance
Impaired Financing Receivable, Unpaid Principal Balance	$ 362		$ 362
Impaired Financing Receivable, Related Allowance
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	$ 65	$ 37
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
Impaired Financing Receivable, Average Recorded Investment	$ 65	$ 37
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	$ (4)
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, Interest Income, Accrual Method	$ (4)
Commercial business loans [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	312		$ 473
Impaired Financing Receivable, with Related Allowance, Recorded Investment	162		9
Impaired Financing Receivable, Recorded Investment	474		482
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,507		1,668
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	162		9
Impaired Financing Receivable, Unpaid Principal Balance	1,669		1,677
Impaired Financing Receivable, Related Allowance	165		9
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	318	$ 1,718
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	198
Impaired Financing Receivable, Average Recorded Investment	516	$ 1,718
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	4	$ 73
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	(1)
Impaired Financing Receivable, Interest Income, Accrual Method	3	$ 73
Mortgage Receivables [Member] | One-to-four family [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,062		3,175
Impaired Financing Receivable, with Related Allowance, Recorded Investment	515		793
Impaired Financing Receivable, Recorded Investment	3,577		3,968
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	5,513		5,572
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	515		793
Impaired Financing Receivable, Unpaid Principal Balance	6,028		6,365
Impaired Financing Receivable, Related Allowance	13		$ 15
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,076	2,482
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	518	1,007
Impaired Financing Receivable, Average Recorded Investment	3,594	3,489
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	11	$ 69
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	5
Impaired Financing Receivable, Interest Income, Accrual Method	$ 16	$ 69
Mortgage Receivables [Member] | Home equity [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment
Impaired Financing Receivable, with Related Allowance, Recorded Investment
Impaired Financing Receivable, Recorded Investment
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	$ 28		$ 28
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance
Impaired Financing Receivable, Unpaid Principal Balance	$ 28		$ 28
Impaired Financing Receivable, Related Allowance
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		$ 62
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
Impaired Financing Receivable, Average Recorded Investment		$ 62
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, Interest Income, Accrual Method
Mortgage Receivables [Member] | Commercial real estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 10,690		$ 10,681
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,657		1,818
Impaired Financing Receivable, Recorded Investment	12,347		12,499
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	11,234		11,226
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,657		1,818
Impaired Financing Receivable, Unpaid Principal Balance	12,891		13,044
Impaired Financing Receivable, Related Allowance	243		343
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	10,753	$ 7,856
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,671	290
Impaired Financing Receivable, Average Recorded Investment	12,424	8,146
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	$ 136	87
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		3
Impaired Financing Receivable, Interest Income, Accrual Method	$ 136	90
Mortgage Receivables [Member] | Construction and development [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	25		25
Impaired Financing Receivable, with Related Allowance, Recorded Investment	475		475
Impaired Financing Receivable, Recorded Investment	500		500
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,863		1,863
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	475		475
Impaired Financing Receivable, Unpaid Principal Balance	2,338		2,338
Impaired Financing Receivable, Related Allowance	120		$ 120
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	25	$ 245
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	475
Impaired Financing Receivable, Average Recorded Investment	$ 500	$ 245
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, Interest Income, Accrual Method

LOANS RECEIVABLE, NET (Detail38

LOANS RECEIVABLE, NET (Details 6) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Aging of the recorded investment in past due loans by class of loans
30-59 days past due	$ 167	$ 51
60-89 days past due	833	457
90 days or more past due	2,438	2,719
Total Past Due	3,438	3,227
Current	960,928	919,788
Total loans receivable	964,366	923,015
Nonaccrual	4,581	4,302
Consumer loans [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due	$ 16	$ 1
60-89 days past due
90 days or more past due	$ 25	$ 25
Total Past Due	41	26
Current	5,435	5,155
Total loans receivable	5,476	5,181
Nonaccrual	$ 50	50
Commercial business loans [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due		$ 50
60-89 days past due	$ 146
90 days or more past due
Total Past Due	$ 146	$ 50
Current	119,055	116,687
Total loans receivable	119,201	116,737
Nonaccrual	187	$ 35
Mortgage Receivables [Member] | One-to-four family [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due	151
60-89 days past due	555	$ 275
90 days or more past due	1,688	1,960
Total Past Due	2,394	2,235
Current	358,944	341,451
Total loans receivable	361,338	343,686
Nonaccrual	$ 2,057	$ 2,032
Mortgage Receivables [Member] | Home equity [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due
60-89 days past due
90 days or more past due
Total Past Due
Current	$ 26,063	$ 23,303
Total loans receivable	$ 26,063	$ 23,303
Nonaccrual
Mortgage Receivables [Member] | Commercial real estate [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due
60-89 days past due	$ 132	$ 182
90 days or more past due	226	235
Total Past Due	358	417
Current	352,417	341,978
Total loans receivable	352,775	342,395
Nonaccrual	$ 1,788	$ 1,686
Mortgage Receivables [Member] | Construction and development [Member]
Aging of the recorded investment in past due loans by class of loans
30-59 days past due
60-89 days past due
90 days or more past due	$ 499	$ 499
Total Past Due	499	499
Current	99,014	91,214
Total loans receivable	99,513	91,713
Nonaccrual	$ 499	$ 499

LOANS RECEIVABLE, NET (Detail39

LOANS RECEIVABLE, NET (Details 7) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Total loans receivable	$ 964,366	$ 923,015
Pass [Member]
Total loans receivable	952,445	908,376
Special Mention [Member]
Total loans receivable	7,391	9,868
Substandard [Member]
Total loans receivable	4,530	4,771
Consumer loans [Member]
Total loans receivable	5,476	5,181
Consumer loans [Member] | Pass [Member]
Total loans receivable	$ 5,426	$ 5,133
Consumer loans [Member] | Special Mention [Member]
Total loans receivable
Consumer loans [Member] | Substandard [Member]
Total loans receivable	$ 50	$ 48
Commercial business loans [Member]
Total loans receivable	119,201	116,737
Commercial business loans [Member] | Pass [Member]
Total loans receivable	116,866	115,664
Commercial business loans [Member] | Special Mention [Member]
Total loans receivable	2,173	919
Commercial business loans [Member] | Substandard [Member]
Total loans receivable	162	154
Mortgage Receivables [Member] | One-to-four family [Member]
Total loans receivable	361,338	343,686
Mortgage Receivables [Member] | One-to-four family [Member] | Pass [Member]
Total loans receivable	359,046	340,905
Mortgage Receivables [Member] | One-to-four family [Member] | Special Mention [Member]
Total loans receivable	252	535
Mortgage Receivables [Member] | One-to-four family [Member] | Substandard [Member]
Total loans receivable	2,040	2,246
Mortgage Receivables [Member] | Home equity [Member]
Total loans receivable	26,063	23,303
Mortgage Receivables [Member] | Home equity [Member] | Pass [Member]
Total loans receivable	$ 26,063	$ 23,303
Mortgage Receivables [Member] | Home equity [Member] | Special Mention [Member]
Total loans receivable
Mortgage Receivables [Member] | Home equity [Member] | Substandard [Member]
Total loans receivable
Mortgage Receivables [Member] | Commercial real estate [Member]
Total loans receivable	$ 352,775	$ 342,395
Mortgage Receivables [Member] | Commercial real estate [Member] | Pass [Member]
Total loans receivable	346,253	332,320
Mortgage Receivables [Member] | Commercial real estate [Member] | Special Mention [Member]
Total loans receivable	4,734	8,242
Mortgage Receivables [Member] | Commercial real estate [Member] | Substandard [Member]
Total loans receivable	1,788	1,833
Mortgage Receivables [Member] | Construction and development [Member]
Total loans receivable	99,513	91,713
Mortgage Receivables [Member] | Construction and development [Member] | Pass [Member]
Total loans receivable	98,791	91,051
Mortgage Receivables [Member] | Construction and development [Member] | Special Mention [Member]
Total loans receivable	232	172
Mortgage Receivables [Member] | Construction and development [Member] | Substandard [Member]
Total loans receivable	$ 490	$ 490

LOANS RECEIVABLE, NET (Detail40

LOANS RECEIVABLE, NET (Details 8) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Total loans receivable	$ 964,366	$ 923,015
Nonaccrual	4,581	4,302
Performing Financing Receivable [Member]
Total loans receivable	959,785	918,713
Nonperforming Financing Receivable [Member]
Total loans receivable	$ 4,581	$ 4,302
90 days or more past due
Nonaccrual	$ 4,581	$ 4,302
Consumer loans [Member]
Total loans receivable	5,476	5,181
Nonaccrual	50	50
Consumer loans [Member] | Performing Financing Receivable [Member]
Total loans receivable	5,426	5,131
Consumer loans [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable	$ 50	$ 50
90 days or more past due
Nonaccrual	$ 50	$ 50
Commercial business loans [Member]
Total loans receivable	119,201	116,737
Nonaccrual	187	35
Commercial business loans [Member] | Performing Financing Receivable [Member]
Total loans receivable	119,014	116,702
Commercial business loans [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable	$ 187	$ 35
90 days or more past due
Nonaccrual	$ 187	$ 35
Mortgage Receivables [Member] | One-to-four family [Member]
Total loans receivable	361,338	343,686
Nonaccrual	2,057	2,032
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member]
Total loans receivable	359,281	341,654
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable	$ 2,057	$ 2,032
90 days or more past due
Nonaccrual	$ 2,057	$ 2,032
Mortgage Receivables [Member] | Home equity [Member]
Total loans receivable	$ 26,063	$ 23,303
Nonaccrual
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member]
Total loans receivable	$ 26,063	$ 23,303
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable
90 days or more past due
Nonaccrual
Mortgage Receivables [Member] | Commercial real estate [Member]
Total loans receivable	$ 352,775	$ 342,395
Nonaccrual	1,788	1,686
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member]
Total loans receivable	350,987	340,709
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable	$ 1,788	$ 1,686
90 days or more past due
Nonaccrual	$ 1,788	$ 1,686
Mortgage Receivables [Member] | Construction and development [Member]
Total loans receivable	99,513	91,713
Nonaccrual	499	499
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member]
Total loans receivable	99,014	91,214
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member]
Total loans receivable	$ 499	$ 499
90 days or more past due
Nonaccrual	$ 499	$ 499

LOANS RECEIVABLE, NET (Detail41

LOANS RECEIVABLE, NET (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Item	Mar. 31, 2015USD ($)Item	Dec. 31, 2015USD ($)
Loans receivable	$ 61,600		$ 64,100
Loans designated as troubled debt restructurings	14,100		14,400
Troubled debt restructurings, still accruing	$ 12,400		$ 13,200
Commercial business loans [Member]
Number of Contracts due to modification identified as a TDR | Item		1
Pre-Modification Recorded Investment		$ 14
Post-Modification Recorded Investment		$ 14
Mortgage Receivables [Member] | One-to-four family [Member]
Number of Contracts due to modification identified as a TDR | Item	11
Pre-Modification Recorded Investment	$ 749
Post-Modification Recorded Investment	$ 749
Mortgage Receivables [Member] | Commercial real estate [Member]
Number of Contracts due to modification identified as a TDR | Item	2
Pre-Modification Recorded Investment	$ 147
Post-Modification Recorded Investment	$ 147

REAL ESTATE ACQUIRED THROUGH 42

REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Real Estate Acquired Through Foreclosure Details
Balance at beginning of period	$ 2,374	$ 3,239
Additions		1,307
Sales	$ (1,283)	$ (2,172)
Write downs
Balance at end of period	$ 1,091	$ 2,374

REAL ESTATE ACQUIRED THROUGH 43

REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real Estate Acquired Through Foreclosure	$ 1,091	$ 2,374	$ 3,239
Mortgage Receivables [Member] | One-to-four family [Member]
Real Estate Acquired Through Foreclosure		773
Mortgage Receivables [Member] | Commercial real estate [Member]
Real Estate Acquired Through Foreclosure		484
Mortgage Receivables [Member] | Construction and development [Member]
Real Estate Acquired Through Foreclosure	$ 1,091	$ 1,117

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Deposits Details
Noninterest-bearing demand accounts	$ 200,743	$ 163,054
Interest-bearing demand accounts	147,393	158,581
Savings accounts	41,596	39,147
Money market accounts	257,808	223,906
Certificates of deposit:
Less than $250,000	459,789	428,067
$250,000 or more	20,443	18,773
Total certificates of deposit	480,232	446,840
Total deposits	1,127,772	1,031,528
Brokered certificates of deposit	103,600	97,100
Institutional certificates of deposit	$ 52,800	$ 51,500

ESTIMATED FAIR VALUE OF FINAN45

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial assets:
Cash and due from banks	$ 10,894	$ 10,206
Interest-bearing cash	19,413	16,421
Securities available for sale	314,323	306,474
Securities held to maturity	16,995	17,053
Federal Home Loan Bank stock	7,769	9,919
Other investments	3,519	3,273
Derivative assets	2,434	1,945
Loans held for sale	31,804	41,774
Loans receivable, net	953,788	912,582
Cash value life insurance	28,330	28,082
Accrued interest receivable	4,504	4,333
Mortgage servicing rights	11,946	11,433
Financial liabilities:
Deposits	1,127,772	1,031,528
Short-term borrowed funds	70,000	120,000
Long-term debt	98,465	103,465
Derivative liabilities	2,432	306
Accrued interest payable	350	333
Fair Value [Member]
Financial assets:
Cash and due from banks	10,894	10,206
Interest-bearing cash	19,413	16,421
Securities available for sale	314,323	306,474
Securities held to maturity	18,029	17,965
Federal Home Loan Bank stock	7,769	9,919
Other investments	3,519	3,273
Derivative assets	2,434	1,945
Loans held for sale	31,804	41,774
Loans receivable, net	951,622	917,043
Cash value life insurance	28,330	28,082
Accrued interest receivable	4,504	4,333
Mortgage servicing rights	17,113	17,564
Financial liabilities:
Deposits	1,128,538	1,029,406
Short-term borrowed funds	69,930	119,880
Long-term debt	102,565	105,551
Derivative liabilities	2,432	306
Accrued interest payable	350	333
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	10,894	10,206
Interest-bearing cash	$ 19,413	$ 16,421
Securities available for sale
Securities held to maturity
Federal Home Loan Bank stock
Other investments
Derivative assets		$ 180
Loans held for sale
Loans receivable, net
Cash value life insurance
Accrued interest receivable
Mortgage servicing rights
Financial liabilities:
Deposits
Short-term borrowed funds
Long-term debt
Derivative liabilities	$ 1,986	$ 306
Accrued interest payable
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Cash and due from banks
Interest-bearing cash
Securities available for sale	$ 314,323	$ 306,474
Securities held to maturity	$ 18,029	$ 17,965
Federal Home Loan Bank stock
Other investments
Derivative assets	$ 2,434	$ 1,765
Loans held for sale	$ 31,804	$ 41,774
Loans receivable, net
Cash value life insurance	$ 28,330	$ 28,082
Accrued interest receivable	$ 4,504	$ 4,333
Mortgage servicing rights
Financial liabilities:
Deposits	$ 1,128,538	$ 1,029,406
Short-term borrowed funds	69,930	119,880
Long-term debt	102,565	$ 105,551
Derivative liabilities	446
Accrued interest payable	$ 350	$ 333
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Cash and due from banks
Interest-bearing cash
Securities available for sale
Securities held to maturity
Federal Home Loan Bank stock	$ 7,769	$ 9,919
Other investments	$ 3,519	$ 3,273
Derivative assets
Loans held for sale
Loans receivable, net	$ 951,622	$ 917,043
Cash value life insurance
Accrued interest receivable
Mortgage servicing rights	$ 17,113	$ 17,564
Financial liabilities:
Deposits
Short-term borrowed funds
Long-term debt
Derivative liabilities
Accrued interest payable
Carrying Amount [Member]
Financial assets:
Cash and due from banks	$ 10,894	$ 10,206
Interest-bearing cash	19,413	16,421
Securities available for sale	314,323	306,474
Securities held to maturity	16,995	17,053
Federal Home Loan Bank stock	7,769	9,919
Other investments	3,519	3,273
Derivative assets	2,434	1,945
Loans held for sale	31,804	41,774
Loans receivable, net	953,788	912,582
Cash value life insurance	28,330	28,082
Accrued interest receivable	4,504	4,333
Mortgage servicing rights	11,946	11,433
Financial liabilities:
Deposits	1,127,772	1,031,528
Short-term borrowed funds	70,000	120,000
Long-term debt	98,465	103,465
Derivative liabilities	2,432	306
Accrued interest payable	$ 350	$ 333

ESTIMATED FAIR VALUE OF FINAN46

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments to Extend Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount	$ 76,738	$ 70,365
Estimated Fair Value
Standby Letters of Credit [Member]
Off-Balance Sheet Financial Instruments:
Notional Amount	$ 1,473	$ 1,357
Estimated Fair Value

ESTIMATED FAIR VALUE OF FINAN47

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Securities available for sale	$ 314,323	$ 306,474
Loans held for sale	31,804	41,774
Derivative Asset	2,434	1,945
Brokered deposits	103,600	97,100
Derivative Liability	2,432	306
Municipal securities [Member]
Securities available for sale	$ 62,993	62,475
US government agencies [Member]
Securities available for sale		7,096
Mortgage-backed securities Agency [Member]
Securities available for sale	$ 108,946	113,855
Mortgage-backed securities Non-agency [Member]
Securities available for sale	73,938	75,536
Collateralized loan obligations [Member]
Securities available for sale	60,681	38,758
Trust preferred securities [Member]
Securities available for sale	$ 7,765	$ 8,754
Fair Value, Inputs, Level 1 [Member]
Securities available for sale
Loans held for sale
Derivative Asset		$ 180
Derivative Liability	$ 1,986	306
Fair Value, Inputs, Level 2 [Member]
Securities available for sale	314,323	306,474
Loans held for sale	31,804	41,774
Derivative Asset	2,434	$ 1,765
Derivative Liability	$ 446
Fair Value, Inputs, Level 3 [Member]
Securities available for sale
Loans held for sale
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Loans held for sale
Brokered deposits
Assets and liabilities measured at fair value	$ 1,986	$ 486
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan interest rate lock commitments [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan forward sales commitments [Member]
Derivative Asset
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities forward sales commitments [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate swaps [Member]
Derivative Asset		$ 180
Derivative Liability	$ 1,310
Assets and liabilities measured at fair value	$ 676	$ 306
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal securities [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US government agencies [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Agency [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Non-agency [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized loan obligations [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Loans held for sale	$ 60,681	$ 38,758
Assets and liabilities measured at fair value	349,007	350,013
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan interest rate lock commitments [Member]
Derivative Asset	2,022	1,246
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan forward sales commitments [Member]
Derivative Asset	412	340
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities forward sales commitments [Member]
Derivative Asset		$ 179
Derivative Liability	$ 446
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swaps [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member]
Securities available for sale	$ 62,993	$ 62,475
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US government agencies [Member]
Securities available for sale		7,096
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Agency [Member]
Securities available for sale	$ 108,946	113,855
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Non-agency [Member]
Securities available for sale	73,938	75,536
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations [Member]
Securities available for sale	60,681	38,758
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Trust preferred securities [Member]
Securities available for sale	$ 7,765	$ 8,754
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Loans held for sale
Brokered deposits
Assets and liabilities measured at fair value
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan interest rate lock commitments [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan forward sales commitments [Member]
Derivative Asset
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities forward sales commitments [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate swaps [Member]
Derivative Asset
Derivative Liability
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal securities [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US government agencies [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Agency [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Non-agency [Member]
Securities available for sale
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized loan obligations [Member]
Securities available for sale

ESTIMATED FAIR VALUE OF FINAN48

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - Nonrecurring basis [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Consumer loans [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Commercial business loans [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Consumer loans [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Commercial business loans [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value on a nonrecurring basis	$ 34,626	$ 36,965
Fair Value, Inputs, Level 3 [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis		773
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis		484
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis	1,091	1,117
Fair Value, Inputs, Level 3 [Member] | Consumer loans [Member]
Assets measured at fair value on a nonrecurring basis	65	65
Fair Value, Inputs, Level 3 [Member] | Commercial business loans [Member]
Assets measured at fair value on a nonrecurring basis	309	473
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member]
Assets measured at fair value on a nonrecurring basis	17,113	17,564
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | One-to-four family [Member]
Assets measured at fair value on a nonrecurring basis	3,564	3,953
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member]
Assets measured at fair value on a nonrecurring basis	12,104	12,156
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Construction and development [Member]
Assets measured at fair value on a nonrecurring basis	$ 380	$ 380

ESTIMATED FAIR VALUE OF FINAN49

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) - Fair Value, Inputs, Level 3 [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Mortgage Servicing Rights [Member]
Valuation Techniques	Discounted cash flows	Discounted cash flows
Significant Unobservable Inputs	Comparable sales	Comparable sales
Minimum [Member] | Mortgage Servicing Rights [Member]
Significant Unobservable Input Range	12.00%	12.00%
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent)	8.00%	9.00%
Maximum [Member] | Mortgage Servicing Rights [Member]
Significant Unobservable Input Range	13.00%	13.00%
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent)	10.00%	11.00%
Impaired Loans [Member]
Valuation Techniques	Appraisal Value	Appraisal Value
Significant Unobservable Inputs	Appraisals and or sales of comparable properties	Appraisals and or sales of comparable properties
Impaired Loans [Member] | Minimum [Member]
Significant Unobservable Input Range	10.00%	10.00%
Impaired Loans [Member] | Maximum [Member]
Significant Unobservable Input Range	20.00%	20.00%
Real estate owned [Member]
Valuation Techniques	Appraisal Value/ Comparison Sales/ Other estimates	Appraisal Value/ Comparison Sales/ Other estimates
Significant Unobservable Inputs	Appraisals and or sales of comparable properties	Appraisals and or sales of comparable properties
Real estate owned [Member] | Minimum [Member]
Significant Unobservable Input Range	10.00%	10.00%
Real estate owned [Member] | Maximum [Member]
Significant Unobservable Input Range	20.00%	20.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share Details
Weighted average shares outstanding	11,746,574	9,366,172
Effect of dilutive securities	232,227	245,863
Average shares outstanding	11,978,801	9,612,035

EARNINGS PER SHARE (Details 2)

EARNINGS PER SHARE (Details 2) - shares	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Earnings Per Share Details 2
Common stock, shares issued	12,051,615	12,023,557	9,749,737
Common stock, shares outstanding	12,051,615	12,023,557	9,749,737
Less nonvested restricted stock awards	(302,028)		(383,566)
Period end dilutive shares	11,749,587		9,366,171

SUPPLEMENTAL SEGMENT INFORMAT52

SUPPLEMENTAL SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest income	$ 13,360	$ 11,457
Interest expense	2,087	1,500
Net interest income (expense)	$ 11,273	$ 9,957
Provision for loan losses
Noninterest income from external customers	$ 6,276	$ 6,590
Intersegment noninterest income
Noninterest expense	$ 12,268	$ 12,175
Intersegment noninterest expense
Income (loss) before income taxes	$ 5,281	$ 4,372
Income tax expense (benefit)	1,638	1,359
Net income (loss)	3,643	3,013
Community Banking [Member]
Interest income	12,944	11,022
Interest expense	1,939	1,355
Net interest income (expense)	$ 11,005	9,667
Provision for loan losses		(37)
Noninterest income from external customers	$ 2,133	1,700
Intersegment noninterest income	243	1
Noninterest expense	$ 8,429	6,335
Intersegment noninterest expense		1,528
Income (loss) before income taxes	$ 4,952	3,542
Income tax expense (benefit)	1,539	1,069
Net income (loss)	3,413	2,473
Mortgage Banking [Member]
Interest income	369	392
Interest expense	5	11
Net interest income (expense)	$ 364	381
Provision for loan losses		37
Noninterest income from external customers	$ 4,143	4,890
Intersegment noninterest income	19	36
Noninterest expense	3,680	3,908
Intersegment noninterest expense	241	241
Income (loss) before income taxes	605	1,121
Income tax expense (benefit)	204	410
Net income (loss)	401	711
Other [Member]
Interest income	5	4
Interest expense	148	145
Net interest income (expense)	$ (143)	$ (141)
Provision for loan losses
Noninterest income from external customers
Intersegment noninterest income		$ 1,768
Noninterest expense	$ 159	$ 1,932
Intersegment noninterest expense	2
Income (loss) before income taxes	(304)	$ (305)
Income tax expense (benefit)	(116)	(125)
Net income (loss)	(188)	(180)
Eliminations [Member]
Interest income	42	39
Interest expense	(5)	(11)
Net interest income (expense)	$ 47	$ 50
Provision for loan losses
Noninterest income from external customers
Intersegment noninterest income	$ (262)	$ (1,805)
Noninterest expense
Intersegment noninterest expense	$ (243)	$ (1,769)
Income (loss) before income taxes	28	14
Income tax expense (benefit)	11	5
Net income (loss)	$ 17	$ 9

SUPPLEMENTAL SEGMENT INFORMAT53

SUPPLEMENTAL SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets	$ 1,453,040	$ 1,409,669
Loans receivable, net	953,788	912,582
Loans held for sale	31,804	41,774
Deposits	1,127,772	1,031,528
Borrowed funds	168,465	223,465
Community Banking [Member]
Assets	1,448,097	1,404,681
Loans receivable, net	940,817	908,227
Loans held for sale	2,963	3,466
Deposits	1,141,513	1,047,671
Borrowed funds	153,000	208,000
Mortgage Banking [Member]
Assets	69,642	75,926
Loans receivable, net	19,824	17,783
Loans held for sale	$ 28,841	$ 38,308
Deposits
Borrowed funds	$ 6,200	$ 12,748
Other [Member]
Assets	$ 158,611	$ 156,774
Loans receivable, net
Loans held for sale
Deposits
Borrowed funds	$ 15,465	$ 15,465
Eliminations [Member]
Assets	(223,310)	(227,712)
Loans receivable, net	$ (6,853)	$ (13,428)
Loans held for sale
Deposits	$ (13,741)	$ (16,143)
Borrowed funds	$ (6,200)	$ (12,748)