LOANS (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Following is a summary of the composition of the Company’s loan portfolio at March 31, 2015 and December 31, 2014:

	March 31,					December 31,
Total Loans:	2015					2014
			Percent					Percent
	Amount		of total			Amount		of total
	(Dollars in thousands)
Real estate loans:
1 to 4 family residential	$	87,273		15.62	%	$	90,903		16.47	%
Commercial real estate		234,754		42.00	%		233,630		42.32	%
Multi-family residential		41,319		7.39	%		42,224		7.65	%
Construction		85,968		15.38	%		83,593		15.14	%
Home equity lines of credit (“HELOC”)		38,481		6.89	%		38,093		6.90	%

Total real estate loans		487,795		87.28	%		488,443		88.48	%

Other loans:
Commercial and industrial		66,029		11.81	%		58,217		10.55	%
Loans to individuals		5,693		1.02	%		5,953		1.08	%
Overdrafts		82		0.01	%		64		0.01	%
Total other loans		71,804		12.84	%		64,234		11.64	%

Gross loans		559,599					552,677
Less deferred loan origination fees, net		(676)		(0.12)	%		(639)		(0.12)	%
Total loans		558,923		100.00	%		552,038		100.00	%

Allowance for loan losses		(6,919)					(6,844)

Total loans, net	$	552,004				$	545,194

	March 31,					December 31,
	2015					2014
Purchased Credit Impaired (PCI) Loans:			Percent					Percent
	Amount		of total			Amount		of total
	(Dollars in thousands)
Real estate loans:
1 to 4 family residential	$	9,674		36.63	%	$	9,972		36.89	%
Commercial real estate		11,698		44.30	%		11,903		44.03	%
Multi-family residential		2,698		10.22	%		2,724		10.08	%
Construction		1,453		5.50	%		1,463		5.41	%
Home equity lines of credit (“HELOC”)		189		0.72	%		188		0.69	%

Total real estate loans		25,712		97.37	%		26,250		97.10	%

Other loans:
Commercial and industrial		571		2.16	%		657		2.43	%
Loans to individuals		125		0.47	%		128		0.47	%
Overdrafts		-		0.00	%		-		0.00	%
Total other loans		696		2.63	%		785		2.90	%

Gross loans		26,408					27,035
Less deferred loan origination fees, net		-		-	%		-		-	%
Total loans		26,408		100.00	%		27,035		100.00	%

Allowance for loan losses		-					-

Total loans, net	$	26,408				$	27,035


	March 31,					December 31,
	2015					2014
Loans – excluding PCI:			Percent					Percent
	Amount		of total			Amount		of total
	(Dollars in thousands)
Real estate loans:
1 to 4 family residential	$	77,599		14.57	%	$	80,931		15.42	%
Commercial real estate		223,056		41.89	%		221,727		42.23	%
Multi-family residential		38,621		7.25	%		39,500		7.52	%
Construction		84,515		15.87	%		82,130		15.64	%
Home equity lines of credit (“HELOC”)		38,292		7.19	%		37,905		7.22	%

Total real estate loans		462,083		86.77	%		462,193		88.03	%

Other loans:
Commercial and industrial		65,458		12.29	%		57,560		10.97	%
Loans to individuals		5,568		1.05	%		5,825		1.11	%
Overdrafts		82		0.02	%		64		0.01	%
Total other loans		71,108		13.36	%		63,449		12.09	%

Gross loans		533,191					525,642
Less deferred loan origination fees, net		(676)		(0.13)	%		(639)		(0.12)	%
Total loans		532,515		100.00	%		525,003		100.00	%
Allowance for loan losses		(6,919)					(6,844)

Total loans, net	$	525,596				$	518,159

Schedule of Fair Values of Expected Cash Flows and Loan Related Payments to Acquired Company at the Time of Merger [Table Text Block]

For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of the closing date of the merger and March 31, 2015 were:

(Dollars in thousands)	March 31, 2015		July 25, 2014

Contractually required payments	$	31,227	$	34,329
Nonaccretable difference		1,385		1,402
Cash flows expected to be collected		29,842		32,927
Accretable yield		3,434		4,360
Fair value	$	26,408	$	28,567

Past Due Financing Receivables [Table Text Block]

The following tables present an age analysis of past due loans, segregated by class of loans as of March 31, 2015 and December 31, 2014, respectively:

Total Loans:	March 31, 2015
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans
	(In thousands)

Commercial and industrial	$	370	$	511	$	881	$	65,148	$	66,029
Construction		170		763		933		85,035		85,968
Multi-family residential		-		883		883		40,436		41,319
Commercial real estate		617		4,559		5,176		229,578		234,754
Loans to individuals & overdrafts		-		-		-		5,775		5,775
1-to-4 family residential		442		1,960		2,402		84,871		87,273
HELOC		18		809		827		37,654		38,481
Deferred loan (fees) cost, net		-		-		-		-		(676)

	$	1,617	$	9,485	$	11,102	$	548,497	$	558,923

Total PCI Loans:	March 31, 2015
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans

	(In thousands)

Commercial and industrial	$	-	$	-	$	-	$	571	$	571
Construction		-		-		-		1,453		1,453
Multi-family residential		-		-		-		2,698		2,698
Commercial real estate		557		-		557		11,141		11,698
Loans to individuals & overdrafts		-		-		-		125		125
1-to-4 family residential		284		-		284		9,390		9,674
HELOC		-		-		-		189		189

	$	841	$	-	$	841	$	25,567	$	26,408

Total Loans (excluding PCI):	March 31, 2015
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans

	(In thousands)

Commercial and industrial	$	370	$	511	$	881	$	64,577	$	65,458
Construction		170		763		933		83,582		84,515
Multi-family residential		-		883		883		37,738		38,621
Commercial real estate		60		4,559		4,619		218,437		223,056
Loans to individuals & overdrafts		-		-		-		5,650		5,650
1-to-4 family residential		158		1,960		2,118		75,481		77,599
HELOC		18		809		827		37,465		38,292
Deferred loan (fees) cost, net		-		-		-		-		(676)

	$	776	$	9,485	$	10,261	$	522,930	$	532,515

There were three loans that amounted to $400,000 that were more than 90 days past due and still accruing interest at March 31, 2015.

	December 31, 2014
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans
	(dollars in thousands)

Total Loans
Commercial and industrial	$	141	$	632	$	773	$	57,444	$	58,217
Construction		-		816		816		82,777		83,593
Multi-family residential		-		901		901		41,323		42,224
Commercial real estate		3,377		2,576		5,953		227,677		233,630
Loans to individuals & overdrafts		22		-		22		5,995		6,017
1 to 4 family residential		1,464		1,160		2,624		88,279		90,903
HELOC		14		853		867		37,226		38,093
Deferred loan (fees) cost, net		-		-		-		-		(639)
	$	5,018	$	6,938	$	11,956	$	540,721	$	552,038

Loans- PCI
Commercial and industrial	$	2	$	-	$	2	$	655	$	657
Construction		-		-		-		1,463		1,463
Multi-family residential		-		-		-		2,724		2,724
Commercial real estate		562		-		562		11,341		11,903
Loans to individuals & overdrafts		-		-		-		128		128
1 to 4 family residential		283		-		283		9,689		9,972
HELOC		-		-		-		188		188
	$	847	$	-	$	847	$	26,188	$	27,035

Loans- excluding PCI

Commercial and industrial	$	139	$	632	$	771	$	56,789	$	57,560
Construction		-		816		816		81,314		82,130
Multi-family residential		-		901		901		38,599		39,500
Commercial real estate		2,815		2,576		5,391		216,336		221,727
Loans to individuals & overdrafts		22		-		22		5,867		5,889
1 to 4 family residential		1,181		1,160		2,341		78,590		80,931
HELOC		14		853		867		37,038		37,905
Deferred loan (fees) cost, net		-		-		-		-		(639)
	$	4,171	$	6,938	$	11,109	$	514,533	$	525,003

Impaired Financing Receivables [Table Text Block]

The following tables present information on loans that were considered to be impaired as of March 31, 2015 and December 31, 2014:

							Three months ended
			Contractual				March 31, 2015
			Unpaid		Related		Average		Interest Income
	Recorded		Principal		Allowance		Recorded		Recognized on
	Investment		Balance		for Loan Losses		Investment		Impaired Loans
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	604	$	604	$	-	$	541	$	3
Construction		1,055		1,280		-		1,177		13
Commercial real estate		2,770		3,307		-		2,712		73
Multi-family residential		2,200		2,486		-		2,216		22
HELOC		637		778		-		637		11
1 to 4 family residential		2,543		3,010		-		2,422		31

Subtotal:		9,809		11,465		-		9,705		153
With an allowance recorded:
Commercial and industrial		11		12		2		138		-
Construction		166		168		79		166		1
Commercial real estate		4,463		5,382		354		4,671		60
HELOC		284		526		50		283		-
1 to 4 family residential		640		642		90		545		5
Subtotal:		5,564		6,730		575		5,803		66
Totals:
Commercial		11,269		13,239		435		11,621		172
Residential		4,104		4,956		140		3,887		47

Grand Total:	$	15,373	$	18,195	$	575	$	15,508	$	219

	As of December 31, 2014						Three months ended March 31, 2014
			Contractual
			Unpaid		Related		Average		Interest Income
	Recorded		Principal		Allowance		Recorded		Recognized on
	Investment		Balance		for Loan Losses		Investment		Impaired Loans
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	478	$	478	$	-	$	161	$	3
Construction		1,300		1,525		-		1,919		23
Commercial real estate		2,652		3,536		-		3,601		70
Loans to individuals & overdrafts		-		2		-		3		-
Multi-family residential		2,232		2,515		-		2,361		38
HELOC		637		768		-		2,445		39
1 to 4 family residential		2,301		2,750		-		761		10

Subtotal:		9,600		11,574		-		11,251		183
With an allowance recorded:
Commercial and industrial		265		267		64		266		-
Construction		167		168		80		248		-
Commercial real estate		4,878		5,761		419		4,183		12
Loans to individuals & overdrafts		-		-		-		1		-
HELOC		284		526		50		487		7
1 to 4 family residential		450		455		74		550		5
Subtotal:		6,044		7,177		687		5,735		24
Totals:
Commercial		11,972		14,250		563		12,739		146
Consumer		-		2		-		4		-
Residential		3,672		4,499		124		4,243		61

Grand Total:	$	15,644	$	18,751	$	687	$	16,986	$	207

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the first quarter of 2015 and 2014:

	Three months ended March 31, 2015						Three months ended March 31, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number		Recorded		Recorded		Number		Recorded		Recorded
	of loans		Investment		Investment		of loans		Investment		Investment
	(Dollars in thousands)
Below market interest rate:
1-to-4 family residential		-	$	-	$	-		1	$	22	$	22

Total		-	$	-	$	-		1	$	22	$	22

	Twelve months ended				Twelve months ended
	March 31, 2015				March 31, 2014
	Number		Recorded		Number		Recorded
	of loans		investment		of loans		investment

	(Dollars in thousands)
Below market interest rate:
1-to-4 family residential		-	$	-		4	$	291
Total		-		-		4		291

Extended payment terms:
Commercial and industrial		-		-		3		401
Construction		-		-		2		131
Commercial real estate		2		936		1		645
1-to-4 family residential		1		38		4		1,028
Total		3		974		10		2,205

Other:
Commercial real estate		-		-		1		155
1-to-4 family residential		-		-		1		68
Total		-		-		2		223

Total		3	$	974		16	$	2,719

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of March 31, 2015 and December 31, 2014, respectively:

Total loans:

March 31, 2015
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
			(In thousands)

Superior	$	1,379	$	-	$	-	$	-
Very good		2,046		-		-		-
Good		6,134		2,700		14,679		-
Acceptable		27,687		13,648		126,687		31,214
Acceptable with care		27,669		67,751		79,044		7,216
Special mention		185		725		7,915		2,006
Substandard		929		1,144		6,429		883
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	66,029	$	85,968	$	234,754	$	41,319

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	79,236	$	36,800
Special mention		3,834		631
Substandard		4,203		1,050
	$	87,273	$	38,481

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	5,747
Non –pass		28
	$	5,775

Total PCI loans:

March 31, 2015
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
			(In thousands)

Superior	$	-	$	-	$	-	$	-
Very good		-		-		-		-
Good		-		-		-		-
Acceptable		-		-		-		-
Acceptable with care		523		1,388		9,203		2,698
Special mention		-		65		1,937		-
Substandard		48		-		558		-
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	571	$	1,453	$	11,698	$	2,698

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	6,058	$	189
Special mention		3,011		-
Substandard		605		-
	$	9,674	$	189

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	115
Non –pass		10
	$	125

Total loans, excluding PCI loans:

March 31, 2015
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
			(In thousands)

Superior	$	1,379	$	-	$	-	$	-
Very good		2,046		-		-		-
Good		6,134		2,700		14,679		-
Acceptable		27,687		13,648		126,687		31,214
Acceptable with care		27,146		66,363		69,841		4,518
Special mention		185		660		5,978		2,006
Substandard		881		1,144		5,871		883
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	65,458	$	84,515	$	223,056	$	38,621

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	73,178	$	36,611
Special mention		823		631
Substandard		3,598		1,050
	$	77,599	$	38,292

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	5,632
Non –pass		18
	$	5,650

Total Loans:

December 31, 2014
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
	(dollars in thousands)

Superior	$	1,241	$	-	$	-	$	-
Very good		1,110		-		-		-
Good		5,282		2,705		15,276		-
Acceptable		26,132		13,579		128,056		31,619
Acceptable with care		23,404		65,717		75,554		8,374
Special mention		221		384		8,036		1,330
Substandard		827		1,208		6,708		901
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	58,217	$	83,593	$	233,630	$	42,224

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	82,794	$	36,357
Special mention		3,978		695
Substandard		4,131		1,041
	$	90,903	$	38,093

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	5,969
Non-pass		48
	$	6,017

PCI Loans:

December 31, 2014
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
	(dollars in thousands)

Superior	$	-	$	-	$	-	$	-
Very good		-		-		-		-
Good		-		-		-		-
Acceptable		-		-		-		-
Acceptable with care		602		1,397		9,368		2,724
Special mention		-		66		1,973		-
Substandard		55		-		562		-
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	657	$	1,463	$	11,903	$	2,724

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	6,437	$	188
Special mention		2,926		-
Substandard		609		-
	$	9,972	$	188

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	117
Non-pass		11
	$	128

Total Loans, excluding PCI Loans:

December 31, 2014
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
	(dollars in thousands)

Superior	$	1,241	$	-	$	-	$	-
Very good		1,110		-		-		-
Good		5,282		2,705		15,276		-
Acceptable		26,132		13,579		128,056		31,619
Acceptable with care		22,802		64,320		66,186		5,650
Special mention		221		318		6,063		1,330
Substandard		772		1,208		6,146		901
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	57,560	$	82,130	$	221,727	$	39,500

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC

Pass	$	76,357	$	36,169
Special mention		1,052		695
Substandard		3,522		1,041
	$	80,931	$	37,905

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts

Pass	$	5,852
Non-pass		37
	$	5,889

Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Table Text Block]

The following table documents changes to the amount of the accretable yield on PCI loans for the three months ended March 31, 2015 (dollars in thousands):

Accretable yield, beginning of period	$	3,762
Accretion		(328)
Reclassification from (to) nonaccretable difference		-
Accretable yield, end of period	$	3,434

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month periods ended March 31, 2015 and March 31, 2014, respectively:

	Three months ended March 31, 2015
	Commercial						1 to 4				Loans to		Multi-
	and				Commercial		family				individuals &		family
Allowance for loan losses	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total

Loans – excluding PCI
Balance, beginning of period	$	803	$	1,103	$	2,914	$	630	$	930	$	185	$	279	$	6,844
Provision for loan losses		173		102		(40)		(40)		(42)		(3)		(20)		130
Loans charged-off		-		-		(29)		-		(40)		(24)		-		(93)
Recoveries		6		4		-		16		3		9		-		38
Balance, end of period	$	982	$	1,209	$	2,845	$	606	$	851	$	167	$	259	$	6,919

PCI Loans
Balance, beginning of period	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Provision for loan losses		-		-		-		-		-		-		-		-
Loans charged-off		-		-		-		-		-		-		-		-
Recoveries		-		-		-		-		-		-		-		-
Balance, end of period	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Loans
Balance, beginning of period	$	803	$	1,103	$	2,914	$	630	$	930	$	185	$	279	$	6,844
Provision for loan losses		173		102		(40)		(40)		(42)		(3)		(20)		130
Loans charged-off		-		-		(29)		-		(40)		(24)		-		(93)
Recoveries		6		4		-		16		3		9		-		38
Balance, end of period	$	982	$	1,209	$	2,845	$	606	$	851	$	167	$	259	$	6,919

Ending Balance: individually evaluated for impairment	$	2	$	79	$	354	$	90	$	50	$	-	$	-	$	575
Ending Balance: collectively evaluated for impairment	$	980	$	1,130	$	2,491	$	516	$	801	$	167	$	259	$	6,344

Loans:
Ending Balance: collectively evaluated for impairment	$	65,414	$	84,747	$	227,521	$	84,090	$	37,560	$	5,775	$	39,119	$	544,226
Ending Balance: individually evaluated for impairment	$	615	$	1,221	$	7,233	$	3,183	$	921	$	-	$	2,200	$	15,373
Ending Balance	$	66,029	$	85,968	$	234,754	$	87,273	$	38,481	$	5,775	$	41,319	$	559,599

There is no allowance for PCI loans as of March 31, 2015.

	Three months ended March 31, 2014
	Commercial						1-to-4				Loans to		Multi-
	and				Commercial		family				individuals &		family
Allowance for loan losses	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total

	(In thousands)

Balance, beginning of period	$	245	$	565	$	4,599	$	826	$	680	$	65	$	74	$	7,054
Provision (recovery) for loan losses		322		266		(1,340)		(265)		645		106		217		(49)
Loans charged-off		(63)		-		-		(1)		(40)		(6)		-		(110)
Recoveries		9		58		24		25		8		6		-		130

Balance, end of period	$	513	$	889	$	3,283	$	585	$	1,293	$	171	$	291	$	7,025

Ending balance: individually evaluated for impairment	$	66	$	81	$	538	$	21	$	313	$	-	$	-	$	1,019
Ending balance: collectively evaluated for impairment	$	447	$	808	$	2,745	$	564	$	980	$	171	$	291	$	6,006

Loans:
Ending balance: collectively evaluated for impairment	$	29,443	$	54,737	$	161,393	$	29,666	$	29,864	$	7,556	$	18,742	$	331,401
Ending balance: individually evaluated for impairment	$	392	$	1,946	$	6,124	$	2,885	$	1,300	$	4	$	2,339	$	14,990
Ending balance	$	29,835	$	56,683	$	167,517	$	32,551	$	31,164	$	7,560	$	21,081	$	346,391