QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2015

QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 22 - QUARTERLY FINANCIAL DATA (UNAUDITED)

	Interest		Net Interest		Net		Earnings Per Share
	Income		Income		Income		Basic		Diluted
2015
First Quarter	$	13,013	$	11,964	$	3,142	$	0.39	$	0.36
Second Quarter		12,955		11,923		3,127		0.38		0.37
Third Quarter		13,782		12,783		3,325		0.41		0.40
Fourth Quarter		12,661		11,710		2,852		0.35		0.35
2014
First Quarter	$	13,045	$	12,007	$	3,670	$	0.44	$	0.41
Second Quarter		12,789		11,676		3,100		0.36		0.34
Third Quarter		13,526		12,426		3,151		0.36		0.34
Fourth Quarter		13,390		12,305		3,229		0.39		0.37

In 2015, interest income varied per quarter due to a random pattern of borrowers repaying commercial loans in full. Some of the loans paid off in full were either discounted at the time of their acquisition or were on the cost recovery method. These loans, when paid in full, resulted in an increase in interest income as the purchase discount or any historical non-accrual interest paid was recognized immediately in income, particularly illustrated by the increase in interest income in the third quarter of 2015.  Also contributing to a decrease in interest income was a decrease in loans outstanding, as well as a decrease in overall yield on the loan portfolio during the year.  The fluctuations in interest income resulted in similar fluctuations in net interest income and net income in 2015. During 2015, net interest income was impacted in a positive way by interest expense savings from continually lower market interest rates related to time deposits and transaction-based deposits.  Net income was lower in the fourth quarter of 2015, largely due the increased OREO expenses and writedowns.  Non-interest expenses were generally higher in 2015 when compared to 2014.

In 2014, interest income varied per quarter due to a random pattern of borrowers repaying commercial loans in full.  Some of the loans paid off in full were either discounted at the time of their acquisition or were on the cost recovery method.  These loans, when paid in full, resulted in an increase in interest income as the purchase discount or any historical non-accrual interest paid was recognized immediately in income.  Also contributing to an overall increase in interest income was the acquisition of the Bank of Gassaway on April 4, 2014.  The interest income from the loans and investments of the Bank of Gassaway are included in the quarterly financial results beginning in the second quarter of 2014.  Further increasing interest income was an internal growth in loans outstanding.  As illustrated in the cash flow statement, in addition to the loans acquired via the purchase of the Bank of Gassaway, loans increased by $45.5 million in 2014 following an increase of $35.8 million in 2013.  The fluctuations and increases in interest income resulted in similar fluctuations and increases in net interest income in 2014.  During 2014, net interest income was impacted positively by interest expense savings from continually lower market interest rates related to time deposits and transaction-based deposits, more than offsetting the increase in interest expense from the acquired interest-bearing deposits and liabilities from the Bank of Gassaway. The increase in net interest income did not carry all the way through to an increase in quarterly net income largely due to increased expenses from the operations of the Bank of Gassaway locations.  First quarter 2014 net income was the highest of any quarter in 2014 due to loan payoff income as well as a negative provision for loan losses.