Kentucky Bancshares (KTYB) 10-Q 10 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Document and Entity Information
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	KENTUCKY BANCSHARES INC /KY/
Entity Central Index Key	0001000232
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-52598
Entity Tax Identification Number	61-0993464
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Incorporation, State or Country Code	KY
Entity Shell Company	false
Entity Address, Address Line One	P.O. Box 157
Entity Address, City or Town	Paris
Entity Address, Postal Zip Code	40362-0157
City Area Code	859
Local Phone Number	987-1795
Entity Address, State or Province	KY
Title of 12(g) Security	Common Stock
Trading Symbol	ktyb
Entity Common Stock, Shares Outstanding		5,946,518
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 103,952	$ 21,922
Federal funds sold	321	260
Cash and cash equivalents	104,273	22,182
Interest bearing time deposits	2,274	2,375
Securities available for sale	251,586	265,330
Loans held for sale	6,178	2,144
Loans	808,467	744,313
Allowance for loan losses	(10,389)	(8,460)
Net loans	798,078	735,853
Federal Home Loan Bank stock	7,072	7,034
Real estate owned, net	1,879	2,148
Bank premises and equipment, net	20,764	19,429
Interest receivable	4,986	4,166
Mortgage servicing rights	1,472	1,573
Goodwill	14,001	14,001
Other intangible assets	93	136
Bank owned life insurance	18,449	18,165
Operating lease right of use asset	7,887	8,195
Other assets	7,979	8,059
Total assets	1,246,971	1,110,790
Deposits
Non-interest bearing	308,132	235,268
Time deposits, $250,000 and over	36,301	43,345
Other interest bearing	600,123	564,040
Total deposits	944,556	842,653
Repurchase agreements	4,308	5,994
Short-term Federal Home Loan Bank advances	50,500	25,000
Long-term Federal Home Loan Bank advances	94,905	91,418
Subordinated debentures	7,217	7,217
Interest payable	1,251	1,170
Operating lease liability	8,090	8,350
Other liabilities	13,916	9,725
Total liabilities	1,124,743	991,527
Stockholders' equity
Preferred stock, 300,000 shares authorized and unissued
Common stock, no par value; 20,000,000 shares authorized; 5,946,518 and 5,913,922 shares issued and outstanding at June 30, 2020 and December 31, 2019	21,832	21,447
Retained earnings	99,587	96,903
Accumulated other comprehensive income	809	913
Total stockholders' equity	122,228	119,263
Total liabilities and stockholders' equity	$ 1,246,971	$ 1,110,790

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	300,000	300,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	5,946,518	5,913,922
Common stock, shares outstanding	5,946,518	5,913,922

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INTEREST INCOME
Loans, including fees	$ 9,304	$ 9,115	$ 18,684	$ 17,915
Securities
Taxable	1,295	1,695	2,764	3,524
Tax exempt	198	276	374	609
Other	81	274	191	491
Total interest income	10,878	11,360	22,013	22,539
INTEREST EXPENSE
Deposits	1,160	1,612	2,628	3,149
Repurchase agreements and federal funds purchased	7	13	15	37
Federal Home Loan Bank advances	561	547	1,143	1,090
Note payable		31		65
Subordinated debentures	68	98	153	200
Total interest expense	1,796	2,301	3,939	4,541
Net interest income	9,082	9,059	18,074	17,998
Provision for loan losses	500	325	2,125	450
Net interest income after provision	8,582	8,734	15,949	17,548
NON-INTEREST INCOME
Service charges	990	1,397	2,279	2,591
Loan service fee income (loss), net	(203)	31	(287)	104
Trust department income	332	347	702	675
Gain (loss) on sale of available for sale securities, net	232	20	344	114
Gain on sale of loans	1,379	321	2,062	528
Brokerage income	95	135	222	271
Debit card interchange income	915	903	1,727	1,693
Other	259	181	512	359
Total other income	3,999	3,335	7,561	6,335
NON-INTEREST EXPENSE
Salaries and employee benefits	5,196	4,683	10,161	9,373
Occupancy expenses	1,011	1,057	2,105	2,038
Legal and professional fees	364	248	609	464
Data processing	509	614	1,088	1,215
Debit card expenses	456	529	963	1,059
Advertising and marketing	182	212	449	446
Taxes other than payroll, property and income	339	325	676	649
Loss on limited partnership	292	159	585	318
Other	989	951	1,932	1,981
Total other expenses	9,338	8,778	18,568	17,543
Income before income taxes	3,243	3,291	4,942	6,340
Provision for income taxes	170	54	118	292
Net income	$ 3,073	$ 3,237	$ 4,824	$ 6,048
Earnings per share
Basic (in dollars per share)	$ 0.51	$ 0.54	$ 0.81	$ 1.01
Diluted (in dollars per share)	$ 0.51	$ 0.54	$ 0.81	$ 1.01

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME LOSS
Net income	$ 3,073	$ 3,237	$ 4,824	$ 6,048
Other comprehensive income (loss)
Unrealized gains on securities arising during the period	2,146	2,757	2,500	6,356
Reclassification of realized amount	(232)	(20)	(344)	(114)
Net change in unrealized gain on securities	1,914	2,737	2,156	6,242
Less: Tax impact	(487)	(575)	(539)	(1,311)
Net of tax	1,427	2,162	1,617	4,931
Unrealized gains (losses) on cashflow hedges arising during the period	487		(2,178)
Reclassification of realized amount.	18		12
Net change in unrealized gain (loss) on cashflow hedges	505		(2,166)
Less: Tax impact	445		445
Net of tax	950		(1,721)
Total other comprehensive income (loss)	2,377	2,162	(104)	4,931
Comprehensive income	$ 5,450	$ 5,399	$ 4,720	$ 10,979

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2018	$ 21,170	$ 89,101	$ (3,478)	$ 106,793
Balances (in shares) at Dec. 31, 2018	5,955,242
Increase (Decrease) in Stockholders' Equity
Common stock issued - stock grants	$ 295			295
Common stock issued - stock grants (in shares)	26,084
Stock compensation expense	$ 56			56
Other comprehensive Income (loss)			2,769	2,769
Net income		2,811		2,811
Dividends declared		(1,015)		(1,015)
Ending Balance at Mar. 31, 2019	$ 21,521	90,897	(709)	111,709
Balances (in shares) at Mar. 31, 2019	5,981,326
Beginning Balance at Dec. 31, 2018	$ 21,170	89,101	(3,478)	106,793
Balances (in shares) at Dec. 31, 2018	5,955,242
Increase (Decrease) in Stockholders' Equity
Other comprehensive Income (loss)				4,931
Net income				6,048
Ending Balance at Jun. 30, 2019	$ 21,579	93,115	1,453	116,147
Balances (in shares) at Jun. 30, 2019	5,981,326
Beginning Balance at Mar. 31, 2019	$ 21,521	90,897	(709)	111,709
Balances (in shares) at Mar. 31, 2019	5,981,326
Increase (Decrease) in Stockholders' Equity
Stock compensation expense	$ 58			58
Other comprehensive Income (loss)			2,162	2,162
Net income		3,237		3,237
Dividends declared		(1,019)		(1,019)
Ending Balance at Jun. 30, 2019	$ 21,579	93,115	1,453	116,147
Balances (in shares) at Jun. 30, 2019	5,981,326
Beginning Balance at Dec. 31, 2019	$ 21,447	96,903	913	119,263
Balances (in shares) at Dec. 31, 2019	5,913,922
Increase (Decrease) in Stockholders' Equity
Common stock issued - stock grants	$ 263			263
Common stock issued - stock grants (in shares)	33,076
Stock compensation expense	$ 61			61
Other comprehensive Income (loss)			(2,481)	(2,481)
Net income		1,751		1,751
Dividends declared		(1,070)		(1,070)
Ending Balance at Mar. 31, 2020	$ 21,771	97,584	(1,568)	117,787
Balances (in shares) at Mar. 31, 2020	5,946,998
Beginning Balance at Dec. 31, 2019	$ 21,447	96,903	913	119,263
Balances (in shares) at Dec. 31, 2019	5,913,922
Increase (Decrease) in Stockholders' Equity
Other comprehensive Income (loss)				(104)
Net income				4,824
Ending Balance at Jun. 30, 2020	$ 21,832	99,587	809	122,228
Balances (in shares) at Jun. 30, 2020	5,946,518
Beginning Balance at Mar. 31, 2020	$ 21,771	97,584	(1,568)	117,787
Balances (in shares) at Mar. 31, 2020	5,946,998
Increase (Decrease) in Stockholders' Equity
Shares forfeited (in shares)	(480)
Stock compensation expense	$ 61			61
Other comprehensive Income (loss)			2,377	2,377
Net income		3,073		3,073
Dividends declared		(1,070)		(1,070)
Ending Balance at Jun. 30, 2020	$ 21,832	$ 99,587	$ 809	$ 122,228
Balances (in shares) at Jun. 30, 2020	5,946,518

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Common stock issued for stock grants- Gross (in shares)		29,242		23,260
Common stock, forfeited (in shares)		788		120
Dividends per share (in dollars per share)	$ 0.18	$ 0.18	$ 0.17	$ 0.17
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Director
Common stock issued for stock grants- Gross (in shares)		3,834		2,824

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows From Operating Activities
Net income	$ 4,824	$ 6,048
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	676	595
Amortization (accretion), net	144	(81)
Securities amortization (accretion), net	568	391
Stock based compensation expense	122	114
Provision for loan losses	2,125	450
Gain on sale of available for sale securities, net	(344)	(114)
Net increase in cash surrender value of bank-owned life insurance	(284)	(159)
Originations of loans held for sale	(63,972)	(26,245)
Proceeds from sale of loans	62,000	25,588
Gain on sale of loans	(2,062)	(528)
(Gain) loss on sale of other real estate	(10)	(2)
Write-downs of other real estate, net	38	38
Amortization of operating leases	48	59
Changes in:
Interest receivable	(820)	(111)
Other assets	488	512
Interest payable	81	(15)
Deferred taxes	(946)	(383)
Other liabilities	(341)	(2,420)
Net cash from operating activities	2,335	3,737
Cash Flows From Investing Activities
Net change in interest bearing time deposits	101	200
Purchases of securities available for sale	(35,511)	(14,815)
Purchase of FHLB stock	(38)
Proceeds from sales of securities available for sale	17,096	29,734
Proceeds from principal payments, maturities and calls securities available for sale	36,901	25,822
Net change in loans	(64,350)	(22,186)
Purchases of bank premises and equipment	(2,011)	(869)
Proceeds from the sale of other real estate	241	135
Net cash from (used in) investing activities	(47,571)	18,021
Cash Flows From Financing Activities
Net change in deposits	101,903	(17,574)
Net change in repurchase agreements	(1,686)	(3,649)
Net change in short-term Federal Home Loan Bank advances	25,500	(200)
Proceeds from long-term Federal Home Loan Bank advances	15,000	9,000
Repayment of long-term Federal Home Loan Bank advances	(11,513)	(5,384)
Repayment of note payable		(422)
Proceeds from issuance of common stock	263	295
Dividends paid	(2,140)	(2,034)
Net cash used in financing activities	127,327	(19,968)
Net change in cash and cash equivalents	82,091	1,790
Cash and cash equivalents at beginning of period	22,182	26,101
Cash and cash equivalents at end of period	104,273	27,891
Supplemental disclosures of cash flow information Cash paid during the year for:
Interest expense	3,858	4,556
Supplemental disclosures of non-cash investing activities
Securities transactions in process, payable	$ 2,811
Real estate acquired through foreclosure		72
In conjunction with the adoption of ASU 2016-02, as detailed in Note 9 of the unaudited consolidated financial statements, a net operating lease asset and a related lease liability was recognized at 1/1/2019		$ 6,373

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ The financial information presented as of any date other than December 31 has been prepared from the Company’s books and records without audit. The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain financial information that is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America, but is not required for interim reporting purposes, has been condensed or omitted. There have been no significant changes to the Company’s accounting and reporting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of such financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. 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, 2019. ​ Basis of Presentation : The consolidated financial statements include the accounts of Kentucky Bancshares, Inc. (the Company), its wholly-owned subsidiaries, Kentucky Bank (the Bank) and KBI Insurance Company, Inc., a captive insurance subsidiary, and the Bank’s wholly-owned subsidiary, KB Special Assets Unit, LLC. Intercompany transactions and balances have been eliminated in consolidation. ​ Nature of Operations : The Bank operates under a state bank charter and provides full banking services, including trust services, to customers located in Bourbon, Clark, Elliot, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and adjoining counties in Kentucky. As a state bank, the Bank is subject to regulation by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The Company, a bank holding company, is regulated by the Federal Reserve. KBI Insurance Company, Inc., a captive insurance subsidiary, is regulated by the State of Nevada Division of Insurance. ​ Estimates in the Financial Statements : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​ COVID-19: In December 2019, a novel strain of coronavirus, Coronavirus Disease (COVID-19), was reported in Wuhan, China. The COVID-19 virus continues to aggressively spread globally and has spread to over 185 countries, including all 50 states in the United States. A prolonged COVID-19 outbreak, or any other epidemic that harms the global economy, U.S. economy, or the economies in which we operate could adversely affect our operations. While the spread of the COVID-19 virus has minimally impacted our operations as of June 30, 2020, it has caused significant economic disruption throughout the United States as state and local governments issued “shelter at home” orders along with the closing of non-essential businesses. The potential financial impact is unknown at this time. However, if these actions are sustained, it may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could cause Kentucky Bancshares to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on Kentucky Bancshares’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives. ​ Cash Flows : For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and certain short-term investments with maturities of less than three months. Generally, federal funds are sold for one -day periods. Net cash flows are reported for loan, deposit and short-term borrowing transactions. ​ Interest Bearing Time Deposits Securities : The Company is required to classify its securities portfolio into one of three categories: trading securities, securities available for sale and securities held to maturity. Fair value adjustments are made to the securities based on their classification with the exception of the held to maturity category. The Company has no investments classified as trading securities or held to maturity. Securities available for sale are carried at fair value. Unrealized holding gains and losses for securities which are classified as available for sale are reported in other comprehensive income, net of deferred tax. ​ Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums on purchased callable debt securities are amortized to the earliest call date. Gains and losses on sales are recorded on the settlement date and determined using the specific identification method. ​ Equity investments with readily determinable fair values are included in other assets with changes in fair value recorded in other income. ​ Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. ​ For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans Held for Sale : Loans held for sale are carried at the lower of cost or fair value as determined by outstanding commitments from investors or current secondary market prices, calculated on the aggregate loan basis. The Company also provides for any losses on uncovered commitments to lend or sell. The Company sells loans with servicing rights retained. ​ Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity are stated at the amount of unpaid principal, net of deferred loan origination fees and costs and acquired purchase premiums and discounts, reduced by an allowance for loan losses. Interest income on loans is recognized on the accrual basis except for those loans on a nonaccrual status. Interest income on real estate mortgage (1-4 family residential and multi-family residential) and consumer loans is discontinued at the time the loan is delinquent, unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Recorded investment is the outstanding loan balance, excluding accrued interest receivable. When interest accrual is discontinued, interest income received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. ​ Typically, the Company seeks to establish a payment history of at least six consecutive payments made on a timely basis before returning a loan to accrual status. Consumer and credit card loans are typically charged off no later than past due. Loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. ​ ​ Concentration of Credit Risk : Most of the Company’s business activity is with customers located within Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and surrounding counties located in Kentucky. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in these counties. ​ Allowance for Loan Losses : The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. ​ Adjustments are made to the historical loss experience ratios based on the qualitative factors as outlined in the regulatory Interagency Policy Statement on the Allowance for Loan and Lease Losses. These qualitative factors include the nature and volume of portfolio, economic and business conditions, classification, past due and non-accrual trends. ​ Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. ​ The allowance for loan losses is evaluated at the portfolio segment level using the same methodology for each segment. The recent historical actual net losses is the basis for the general reserve for each segment which is then adjusted for qualitative factors as outlined above (i.e., nature and volume of portfolio, economic and business conditions, classification, past due and non-accrual trends) specifically evaluated at individual segment levels. ​ The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors for non-classified loans and a migration analysis for classified loans. ​ A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties and has been granted a concession, are considered troubled debt restructurings and classified as impaired. ​ Loans are charged off when available information confirms that loans, or portions thereof, are uncollectible. While management considers the number of days a loan is past due in its evaluation process, we also consider a variety of other factors. ​ Factors considered by management in evaluating the charge-off decision include collateral value, availability of current financial information for both borrower and guarantor (if any), and the probability of collecting contractual principal and interest payments. These considerations may result in loans being charged off before they are or more past due. This evaluation framework for determining charge-offs is consistently applied to each segment. ​ From time to time, the Company will charge-off a portion of impaired and non-performing loans. Loans that meet the criteria under ASC 310 are evaluated individually for impairment. Management considers payment status, collateral value, availability of current financial information for the borrower and guarantor, actual and expected cash flows, and probability of collecting amounts due. If a loan’s collection status is deemed to be collateral dependent or foreclosure is imminent, the loan is charged down to the fair value of the collateral, less selling costs. In circumstances where the loan is not deemed to be collateral dependent, but we believe, after completing our evaluation process, that probable loss has been incurred, we will provide a specific allocation on that loan. ​ The impact of recording partial charge-offs is a reduction of gross loans and a reduction of the loan loss reserve. The net loan balance is unchanged in instances where the loan had a specific allocation as a component of the allowance for loan losses. The allowance as a percentage of total loans may be lower as the allowance no longer needs to include a component for the loss, which has now been recorded, and net charge-off amounts are increased as partial charge-offs are recorded. ​ Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. ​ Commercial and real estate construction and real estate mortgage loans (multi-family residential, and non-farm and non-residential mortgage) over $200 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and 1-4 family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. ​ If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. ​ The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent . This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. ​ A “portfolio segment” is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan losses. The Company has identified the following portfolio segments: commercial, real estate construction, real estate mortgage, agricultural, consumer (credit cards and other consumer) and other (overdrafts). ​ Commercial : These loans to businesses do not have real estate as the underlying collateral. Instead of real estate, collateral could be business assets such as equipment or accounts receivable or the personal guarantee of one or more guarantors. These loans generally present a higher level of risk than loans secured by commercial real estate because in the event of default by the borrower, the business assets must be liquidated and/or guarantors pursued for deficit funds. Business assets are worth more while they are in use to produce income for the business and worth significantly less if the business is no longer in operation. Within the commercial portfolio, risk analysis is performed primarily based on the individual loan type. ​ Real estate construction : Real estate construction consists of loans secured by real estate for additions or alterations to existing structures, as well as constructing new structures. They include fixed and floating rate loans. Real estate construction loans generally present a higher level of risk than loans secured by 1-4 family residential real estate primarily because of the length of the construction period, potential change in prices of construction, the incomplete status of the collateral and economic cycles. Because of these factors, real estate construction loans generally have higher qualitative adjustments. ​ Real Estate Mortgage ​ 1-4 family residential : Loans secured by 1-4 family residential real estate represent the lowest risk of loans for the Company. They include fixed and floating rate loans as well as loans for commercial purposes or consumer purposes. The Company generally does not hold subprime residential mortgages. Borrowers with loans in this category, whether for commercial or consumer purposes, tend to make their payments timely as they do not want to risk foreclosure and loss of property. Multifamily residential : Loans secured by multifamily residential real estate consist primarily of loans secured by apartment buildings and can be either fixed or floating rate loans. Multi-family residential real estate loans generally present a higher level of risk than loans secured by 1-4 family residential real estate because the borrower’s repayment ability typically comes from rents from tenants. Local economic and employment fluctuations impact rent rolls and potentially the borrower’s repayment ability. ​ Non-farm & non-residential : Loans secured by non-farm non-residential real estate consist of loans secured by commercial real estate that is not owner occupied. These loans generally consist of loans collateralized by property whereby rents received from commercial tenants of the borrower are the source of repayment. These loans generally present a higher level of risk than loans secured by owner occupied commercial real estate because repayment risk is expanded to be dependent on the success of multiple businesses which are paying rent to the borrower. If multiple businesses fail due to deteriorating economic conditions or poor business management skills, the borrower may not have enough rents to cover their monthly payment. Repayment risk is also increased depending on the level of surplus available commercial lease space in the local market area. ​ Agricultural : These loans to agricultural businesses do not have real estate as the underlying collateral. Instead of real estate, collateral could be assets such as equipment or accounts receivable or the personal guarantee of one or more guarantors. These loans generally present a higher level of risk than loans secured by real estate because in the event of default by the borrower, the assets must be liquidated and/or guarantors pursued for deficit funds. Farm assets are worth more while they are in use to produce income and worth significantly less if the farm is no longer in operation. Consumer : Consumer loans are generally loans to borrowers for non-business purposes. They can be either secured or unsecured. Consumer loans are generally small in the individual amount of principal outstanding and are repaid from the borrower’s private funds earned from employment. Consumer lending risk is very susceptible to local economic trends. If there is a consumer loan default, any collateral that may be repossessed is generally not well maintained and has a diminished value. For this reason, consumer loans tend to have higher overall interest rates to cover the higher cost of repossession and charge-offs. However, due to their smaller average balance per borrower, consumer loans are collectively evaluated for impairment in determining the appropriate allowance for loan losses. ​ Other : All other loan types are aggregated together for credit risk evaluation due to the varying nature but small number of the remaining types of loans in the Company’s loan portfolio. Loans in this segment include but are not limited to overdrafts. Due to their smaller balance, other loans are collectively evaluated for impairment in determining the appropriate allowance for loan losses. ​ Due to the overall high level of real estate mortgage loans within the loan portfolio as a whole, as compared to other portfolio segments, for risk assessment and allowance purposes this segment was segregated into more granular pools by collateral property type. ​ The non-farm non-residential and the multi-family real estate mortgage loan portfolio segments had the next highest level of qualitative adjustments due to the effects of local markets and economies on the underlying collateral property values, as well as for industry concentrations and risks related to the this type of property. ​ Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair value changes. ​ For a cashflow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. ​ Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. ​ The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking both fair value hedges and cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. ​ The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. ​ When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. ​ Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of the mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on the sales of loans. ​ Mortgage Servicing Rights : The Bank has sold certain residential mortgage loans to the Federal Home Loan Mortgage Corporation (FHLMC) while retaining the servicing rights. Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of mortgage loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. ​ The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into loan service fee income, net, included in non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. ​ Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type.Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. ​ Servicing fee income, which is reported on the income statement as loan service income, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights and valuation allowance are netted against loan servicing fee income. Servicing fees totaled thousand for the six months ended June 30, 2019 and are included in loan service fee income, net in the income statement. Servicing fees totaled thousand for the three months ended June 30, 2019 and are included in loan service fee income, net in the income statement. Late fees and ancillary fees related to loan servicing are not material. Amortization expense, including write-downs for fair value adjustments, was thousand for the six months ended June 30, 2019. Amortization expense, including write-downs for fair value adjustments, was ​ Federal Home Loan Bank (FHLB) Stock : The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. ​ Bank-Owned Life Insurance : The Company has purchased life insurance policies on certain key employees. Bank- owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. ​ Bank Premises and Equipment : Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from . Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from ​ Real Estate Owned : Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. Real estate acquired through foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. The value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged to operating expenses. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in other expenses. ​ Investments in Limited Partnerships : Investments in limited partnerships represent the Company’s investments in affordable housing projects for the primary purpose of available tax benefits. The Company is a limited partner in these investments and as such, the Company is not involved in the management or operation of such investments. These investments are amortized over the period that the Company expects to receive the tax benefits. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. ​ The investment recorded at June 30, 2020 was $3.6 m

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2020
SECURITIES
SECURITIES	2. SECURITIES ​ SECURITIES AVAILABLE FOR SALE ​ Period-end securities are as follows: (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ ​ Cost ​ Gains ​ Losses ​ Value Available for Sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,120 ​ $ 174 ​ $ — ​ $ 9,294 ​ U.S. government agencies ​ ​ 15,625 ​ ​ 216 ​ ​ (15) ​ ​ 15,826 ​ States and political subdivisions ​ 47,681 ​ 1,152 ​ ​ (28) ​ 48,805 ​ Mortgage-backed - residential ​ 97,870 ​ 2,096 ​ ​ (32) ​ 99,934 ​ Mortgage-backed - commercial ​ ​ 43,043 ​ ​ 943 ​ ​ (15) ​ ​ 43,971 ​ Asset-backed ​ ​ 34,995 ​ ​ 33 ​ ​ (1,272) ​ ​ 33,756 ​ Total ​ $ 248,334 ​ $ 4,614 ​ $ (1,362) ​ $ 251,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,165 ​ $ 3 ​ $ — ​ $ 9,168 ​ U.S. government agencies ​ ​ 23,716 ​ ​ 60 ​ ​ (41) ​ ​ 23,735 ​ States and political subdivisions ​ 31,950 ​ 661 ​ ​ (22) ​ 32,589 ​ Mortgage-backed - residential ​ 113,629 ​ 634 ​ ​ (272) ​ 113,991 ​ Mortgage-backed - commercial ​ ​ 50,092 ​ ​ 406 ​ ​ (147) ​ ​ 50,351 ​ Asset-backed ​ ​ 35,682 ​ ​ 55 ​ ​ (241) ​ ​ 35,496 ​ Total ​ $ 264,234 ​ $ 1,819 ​ $ (723) ​ $ 265,330 ​ ​ The amortized cost and fair value of securities as of June 30, 2020 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Further discussion concerning Fair Value Measurements can be found in Note 7. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value Due in one year or less ​ $ 8,033 ​ $ 8,086 ​ Due after one year through five years ​ 17,898 ​ 18,235 ​ Due after five years through ten years ​ 19,364 ​ ​ 19,899 ​ Due after ten years ​ 27,131 ​ ​ 27,705 ​ ​ ​ 72,426 ​ 73,925 ​ Mortgage-backed - residential ​ 97,870 ​ 99,934 ​ Mortgage-backed - commercial ​ ​ 43,043 ​ ​ 43,971 ​ Asset-backed ​ ​ 34,995 ​ ​ 33,756 ​ Total ​ $ 248,334 ​ $ 251,586 ​ ​ ​ Proceeds from the sale of available for sale securities for the six months ended June 30, 2020 and June 30, 2019 were $17.1 million and $29.7 million. Gross gains of $390 thousand and $154 thousand and gross losses of $46 thousand and $40 thousand were realized on those sales, respectively. The tax provision related to these realized net gains was $72 thousand and $24 thousand, respectively. ​ Proceeds from the sale of available for sale securities for the three months ended June 30, 2020 and June 30, 2019 were $15.0 million and $13.4 million. Gross gains of $272 thousand and $45 thousand and gross losses of $40 thousand and $25 thousand were realized on those sales, respectively. The tax provision related to these realized net gains or losses was $49 thousand and $4 thousand, respectively. ​ Securities with unrealized losses at June 30, 2020 and at December 31, 2019 not recognized in income are as follows: ​ June 30, 2020 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 Months ​ 12 Months or More ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities ​ Value ​ Loss ​ Value ​ Loss ​ Value ​ Loss U.S. government agencies ​ $ — ​ $ — ​ $ 870 ​ $ (15) ​ $ 870 ​ $ (15) ​ States and political subdivisions ​ ​ 4,704 ​ ​ (28) ​ ​ — ​ ​ — ​ ​ 4,704 ​ ​ (28) Mortgage-backed - residential ​ ​ 11,612 ​ ​ (32) ​ ​ — ​ ​ — ​ ​ 11,612 ​ ​ (32) ​ Mortgage-backed - commercial ​ ​ — ​ ​ — ​ ​ 5,134 ​ ​ (15) ​ ​ 5,134 ​ ​ (15) ​ Asset-backed ​ ​ 24,135 ​ ​ (871) ​ ​ 6,646 ​ ​ (401) ​ ​ 30,781 ​ ​ (1,272) ​ Total temporarily impaired ​ $ 40,451 ​ $ (931) ​ $ 12,650 ​ $ (431) ​ $ 53,101 ​ $ (1,362) ​ ​ December 31, 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 Months ​ 12 Months or More ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities ​ Value ​ Loss ​ Value ​ Loss ​ Value ​ Loss U.S. government agencies ​ $ 6,171 ​ $ (18) ​ $ 4,396 ​ $ (23) ​ $ 10,567 ​ $ (41) ​ States and political subdivisions ​ ​ 859 ​ ​ (3) ​ ​ 1,199 ​ ​ (19) ​ ​ 2,058 ​ ​ (22) ​ Mortgage-backed - residential ​ ​ 32,718 ​ ​ (129) ​ ​ 14,583 ​ ​ (143) ​ ​ 47,301 ​ ​ (272) ​ Mortgage-backed - commercial ​ ​ 5,760 ​ ​ (25) ​ ​ 10,625 ​ ​ (122) ​ ​ 16,385 ​ ​ (147) ​ Asset-backed ​ ​ 21,786 ​ ​ (150) ​ ​ 6,962 ​ ​ (91) ​ ​ 28,748 ​ ​ (241) ​ Total temporarily impaired ​ $ 67,294 ​ $ (325) ​ $ 37,765 ​ $ (398) ​ $ 105,059 ​ $ (723) ​ ​ The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In analyzing an issuer’s financial condition, we may consider many factors including, (1) whether the securities are issued by the federal government or its agencies, (2) whether downgrades by bond rating agencies have occurred, (3) the results of reviews of the issuer’s financial condition and near-term prospects, (4) the length of time and the extent to which the fair value has been less than cost, and (5) whether we intend to sell the investment security or more likely than not will be required to sell the investment security before its anticipated recovery. ​ Unrealized losses on securities included in the tables above have not been recognized into income because (1) all rated securities are investment grade and are of high credit quality, (2) management does not intend to sell and it is more likely than not that management would not be required to sell the securities prior to their anticipated recovery, (3) management believes the decline in fair value is largely due to changes in interest rates and (4) management believes the declines in fair value are temporary. The Company believes the fair value will recover as the securities approach maturity.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2020
LOANS
LOANS	3. LOANS ​ Loans at period-end are as follows: (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 6/30/2020 12/31/2019 Commercial ​ $ 132,099 ​ $ 86,552 ​ Real estate construction ​ 25,136 ​ 32,219 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 295,326 ​ 291,419 ​ Multi-family residential ​ 49,208 ​ 48,622 ​ Non-farm & non-residential ​ 226,467 ​ 204,908 ​ Agricultural ​ 57,528 ​ 57,166 ​ Consumer ​ 22,507 ​ 23,122 ​ Other ​ 196 ​ 305 ​ Total ​ $ 808,467 ​ $ 744,313 ​ ​ As of June 30, 2020, the Company had outstanding loan balances of $56.8 million for “PPP” loans which were included in commercial loans in the table above. These loans required no allowance for loan losses as of June 30, 2020. ​ Activity in the allowance for loan losses for the six month period indicated was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2020 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 920 $ (25) $ 12 $ 24 $ 931 ​ Real estate Construction ​ 551 ​ — ​ — ​ (85) ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,901 ​ (35) ​ ​ 18 ​ 467 ​ 3,351 ​ Multi-family residential ​ 807 ​ — ​ ​ — ​ 107 ​ 914 ​ Non-farm & non-residential ​ 1,643 ​ — ​ ​ — ​ 1,397 ​ 3,040 ​ Agricultural ​ 389 ​ — ​ ​ 3 ​ 92 ​ 484 ​ Consumer ​ 506 ​ (214) ​ ​ 25 ​ 213 ​ 530 ​ Other ​ 43 ​ (399) ​ ​ 419 ​ (33) ​ 30 ​ Unallocated ​ 700 ​ — ​ ​ — ​ (57) ​ 643 ​ ​ $ 8,460 $ (673) $ 477 $ 2,125 $ 10,389 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2020 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 1,003 $ — $ 6 $ (78) $ 931 ​ Real estate construction ​ 631 ​ — ​ — ​ (165) ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 3,421 ​ — ​ ​ 3 ​ (73) ​ 3,351 ​ Multi-family residential ​ 1,024 ​ — ​ ​ — ​ (110) ​ 914 ​ Non-farm & non-residential ​ 2,104 ​ — ​ ​ — ​ 936 ​ 3,040 ​ Agricultural ​ 463 ​ — ​ ​ 1 ​ 20 ​ 484 ​ Consumer ​ 533 ​ (104) ​ ​ 16 ​ 85 ​ 530 ​ Other ​ 31 ​ (162) ​ ​ 213 ​ (52) ​ 30 ​ Unallocated ​ 706 ​ — ​ ​ — ​ (63) ​ 643 ​ ​ $ 9,916 $ (266) $ 239 $ 500 $ 10,389 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2019 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 1,159 $ (191) $ 10 $ (16) $ 962 ​ Real estate Construction ​ 414 ​ — ​ — ​ (1) ​ 413 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,605 ​ (104) ​ 12 ​ 253 ​ 2,766 ​ Multi-family residential ​ 733 ​ — ​ — ​ 10 ​ 743 ​ Non-farm & non-residential ​ 1,649 ​ (17) ​ — ​ (33) ​ 1,599 ​ Agricultural ​ 420 ​ — ​ 4 ​ (7) ​ 417 ​ Consumer ​ 410 ​ (140) ​ 17 ​ 105 ​ 392 ​ Other ​ 58 ​ (440) ​ 348 ​ 138 ​ 104 ​ Unallocated ​ 679 ​ — ​ — ​ 1 ​ 680 ​ ​ $ 8,127 $ (892) $ 391 $ 450 $ 8,076 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2019 ​ ​ (in thousands) ​ Beginning ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Charge-offs ​ Recoveries ​ Provision ​ Balance Commercial $ 943 $ — $ 3 $ 16 $ 962 ​ Real estate Construction ​ 351 ​ — ​ — ​ 62 ​ 413 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,660 ​ (5) ​ 4 ​ 107 ​ 2,766 ​ Multi-family residential ​ 723 ​ — ​ — ​ 20 ​ 743 ​ Non-farm & non-residential ​ 1,609 ​ — ​ — ​ (10) ​ 1,599 ​ Agricultural ​ 406 ​ — ​ 3 ​ 8 ​ 417 ​ Consumer ​ 389 ​ (79) ​ 3 ​ 79 ​ 392 ​ Other ​ 70 ​ (199) ​ 139 ​ 94 ​ 104 ​ Unallocated ​ 731 ​ — ​ — ​ (51) ​ 680 ​ ​ $ 7,882 $ (283) $ 152 $ 325 $ 8,076 ​ ​ The following tables present the balance in the allowance for loan losses and the recorded investment (excluding accrued interest receivable amounting to $4.0 million as of June 30, 2020 and $2.8 million at December 31, 2019) in loans by portfolio segment and based on impairment method as of June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually Collectively ​ As of June 30, 2020 ​ Evaluated for ​ Evaluated for ​ ​ ​ (in thousands) ​ Impairment ​ Impairment ​ Total Allowance for Loan Losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 50 ​ $ 881 ​ $ 931 ​ Real estate construction ​ — ​ 466 ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ — ​ 3,351 ​ 3,351 ​ Multi-family residential ​ 75 ​ 839 ​ 914 ​ Non-farm & non-residential ​ 900 ​ 2,140 ​ 3,040 ​ Agricultural ​ — ​ 484 ​ 484 ​ Consumer ​ — ​ 530 ​ 530 ​ Other ​ — ​ 30 ​ 30 ​ Unallocated ​ — ​ 643 ​ 643 ​ ​ ​ $ 1,025 ​ $ 9,364 ​ $ 10,389 ​ Loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 144 ​ $ 131,955 ​ $ 132,099 ​ Real estate construction ​ 374 ​ 24,762 ​ 25,136 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 533 ​ 294,793 ​ 295,326 ​ Multi-family residential ​ 1,292 ​ 47,916 ​ 49,208 ​ Non-farm & non-residential ​ 1,799 ​ 224,668 ​ 226,467 ​ Agricultural ​ 3,580 ​ 53,948 ​ 57,528 ​ Consumer ​ — ​ 22,507 ​ 22,507 ​ Other ​ — ​ 196 ​ 196 ​ Total ​ $ 7,722 ​ $ 800,745 ​ $ 808,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually Collectively ​ As of December 31, 2019 ​ Evaluated for ​ Evaluated for ​ ​ (in thousands) ​ Impairment ​ Impairment ​ Total Allowance for Loan Losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ — ​ $ 920 ​ $ 920 ​ Real estate construction ​ — ​ 551 ​ 551 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2 ​ 2,899 ​ 2,901 ​ Multi-family residential ​ 50 ​ 757 ​ 807 ​ Non-farm & non-residential ​ — ​ 1,643 ​ 1,643 ​ Agricultural ​ — ​ 389 ​ 389 ​ Consumer ​ — ​ 506 ​ 506 ​ Other ​ — ​ 43 ​ 43 ​ Unallocated ​ — ​ 700 ​ 700 ​ ​ ​ $ 52 ​ $ 8,408 ​ $ 8,460 ​ Loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ — ​ $ 86,552 ​ $ 86,552 ​ Real estate construction ​ 374 ​ 31,845 ​ 32,219 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 202 ​ 291,217 ​ 291,419 ​ Multi-family residential ​ 1,292 ​ 47,330 ​ 48,622 ​ Non-farm & non-residential ​ 1,799 ​ 203,109 ​ 204,908 ​ Agricultural ​ 842 ​ 56,324 ​ 57,166 ​ Consumer ​ — ​ 23,122 ​ 23,122 ​ Other ​ — ​ 305 ​ 305 ​ Total ​ $ 4,509 ​ $ 739,804 ​ $ 744,313 ​ The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ ​ ​ ​ Allowance for ​ ​ Average ​ Interest ​ Cash Basis ​ ​ Principal Recorded Loan Losses ​ Recorded Income Interest ​ ​ Balance ​ Investment ​ Allocated ​ ​ Investment ​ Recognized ​ Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 94 ​ $ 94 ​ $ — ​ ​ $ 47 ​ $ 1 ​ $ 1 ​ Real estate construction ​ ​ 374 ​ ​ 374 ​ ​ — ​ ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 533 ​ ​ 533 ​ ​ — ​ ​ ​ 368 ​ ​ 12 ​ ​ 12 ​ Agricultural ​ ​ 3,580 ​ ​ 3,580 ​ ​ — ​ ​ ​ 2,211 ​ ​ 32 ​ ​ 32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 50 ​ $ 50 ​ $ 50 ​ ​ $ 25 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ ​ 1,292 ​ ​ 1,292 ​ ​ 75 ​ ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm and non-residential ​ 1,799 ​ ​ 1,799 ​ ​ 900 ​ ​ ​ 900 ​ ​ — ​ ​ — ​ Total $ 7,722 $ 7,722 $ 1,025 ​ $ 5,217 $ 44 $ 44 ​ ​ The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. ​ The following tables present loans individually evaluated for impairment by class of loans for the six months ended June 30, 2019. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net, due to immateriality: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year to Date Year to Date ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ (in thousands): ​ Investment ​ Recognized ​ Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 122 ​ ​ 7 ​ ​ 7 ​ Multi-family residential ​ ​ 1,633 ​ ​ 54 ​ ​ 54 ​ Non-farm and non-residential ​ ​ 114 ​ ​ 5 ​ ​ 5 ​ Agricultural 845 10 10 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 1,001 ​ $ 10 ​ $ 10 ​ Total $ 4,089 $ 86 $ 86 ​ The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2019 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees, net, due to immateriality: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ ​ ​ ​ Allowance for ​ ​ Average ​ Interest ​ Cash Basis ​ ​ Principal ​ Recorded ​ Loan Losses ​ ​ Recorded ​ Income ​ Interest ​ Balance Investment Allocated ​ Investment Recognized Recognized With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ 374 ​ $ — ​ ​ $ 374 ​ $ — ​ $ — ​ Real-estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-farm & non-residential ​ 1,799 ​ 1,799 ​ — ​ ​ 1,013 ​ 17 ​ 17 ​ Agricultural ​ 842 ​ 842 ​ — ​ ​ 1,003 ​ 18 ​ 18 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 202 ​ $ 202 ​ $ 2 ​ ​ $ 603 ​ $ 35 ​ $ 35 ​ Multi-family residential ​ 1,292 ​ 1,292 ​ 50 ​ ​ 646 ​ 54 ​ 54 ​ Total $ 4,509 $ 4,509 $ 52 ​ $ 3,639 $ 124 $ 124 ​ ​ The following tables present loans individually evaluated for impairment by class of loans for the three months ended June 30, 2020 and June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ending June 30, 2020 ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ (in thousands): Investment Recognized Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 47 ​ $ 1 ​ $ 1 ​ Real estate construction ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 447 ​ ​ 6 ​ ​ 6 ​ Agricultural ​ ​ 2,384 ​ ​ 21 ​ ​ 21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 25 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm and non-residential ​ ​ 900 ​ ​ — ​ ​ — ​ Total ​ $ 5,469 ​ $ 28 ​ $ 28 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ending June 30, 2019 ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ ​ Investment Recognized Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 222 ​ ​ 3 ​ ​ 3 ​ Multi-family residential ​ ​ 1,622 ​ ​ 10 ​ ​ 10 ​ Non-farm and non-residential ​ ​ 138 ​ ​ — ​ ​ — ​ Agricultural 527 6 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 1,127 ​ $ 3 ​ $ 3 ​ Total $ 4,010 $ 22 $ 22 ​ ​ The following tables present the recorded investment in nonaccrual, loans past due over 89 days still on accrual and accruing troubled debt restructurings by class of loans as of June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Past Due ​ ​ ​ ​ ​ ​ Over 89 Days ​ ​ ​ As of June 30, 2020 ​ ​ ​ ​ Still ​ Troubled Debt (in thousands) ​ Nonaccrual ​ Accruing ​ Restructurings Commercial ​ $ — ​ $ 48 ​ $ — ​ Real estate construction ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 903 ​ — ​ — ​ Multi-family residential ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm & non-residential ​ 1,951 ​ 14 ​ — ​ Agricultural ​ — ​ 200 ​ — ​ Consumer ​ 38 ​ 2 ​ — ​ Total ​ $ 4,558 ​ $ 264 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Past Due ​ ​ ​ ​ ​ ​ ​ Over 89 Days ​ ​ ​ ​ As of December 31, 2019 ​ ​ ​ ​ Still ​ Troubled Debt ​ (in thousands) ​ Nonaccrual ​ Accruing ​ Restructurings ​ Real estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 845 ​ 47 ​ — ​ Multi-family residential ​ — ​ ​ 1,292 ​ — ​ Non-farm & non-residential ​ 1,799 ​ 121 ​ — ​ Agricultural ​ — ​ 7 ​ — ​ Consumer ​ 63 ​ 32 ​ — ​ Total ​ $ 3,081 ​ $ 1,499 ​ $ — ​ ​ Nonaccrual loans secured by real estate make up 99.2% of the total nonaccrual loan balances at June 30, 2020. ​ Nonaccrual loans and loans past due over 89 days and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. ​ A loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest payments and the contractual principal payments of a loan will be collected as scheduled in the loan agreement. ​ Nonaccrual loans are loans for which payments in full of principal or interest is not expected or which principal or interest has been in default for a period of 90 days or more unless the asset is both well secured and in the process of collection. Other impaired loans may be loans showing signs of weakness or interruptions in cash flow, but ultimately are current or less than 90 days past due with respect to principal and interest and for which we anticipate full payment of principal and interest but not in accordance with contractual terms. ​ Additional factors considered by management in determining impairment and non-accrual status include payment status, collateral value, availability of current financial information, and the probability of collecting all contractual principal and interest payments. ​ The following tables present the aging of the recorded investment in past due and non-accrual loans as June 30, 2020 and December 31, 2019 by class of loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30–59 60–89 Greater than ​ Total ​ As of June 30, 2020 ​ Days ​ Days ​ 89 Days ​ ​ ​ Past Due & ​ Loans Not (in thousands) ​ Past Due ​ Past Due ​ Past Due ​ Non-accrual ​ Non-accrual ​ Past Due Commercial ​ $ 301 ​ $ — ​ $ 48 ​ $ — ​ $ 349 ​ $ 131,750 ​ Real estate construction ​ — ​ — ​ — ​ 374 ​ 374 ​ 24,762 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 344 ​ 422 ​ — ​ 903 ​ 1,669 ​ 293,657 ​ Multi-family residential ​ — ​ — ​ — ​ 1,292 ​ 1,292 ​ 47,916 ​ Non-farm & non-residential ​ 406 ​ 319 ​ 14 ​ 1,951 ​ 2,690 ​ 223,777 ​ Agricultural ​ 412 ​ — ​ 200 ​ — ​ 612 ​ 56,916 ​ Consumer ​ 69 ​ 14 ​ 2 ​ 38 ​ 123 ​ 22,384 ​ Other ​ — ​ — ​ — ​ — ​ — ​ 196 ​ Total ​ $ 1,532 ​ $ 755 ​ $ 264 ​ $ 4,558 ​ $ 7,109 ​ $ 801,358 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30–59 60–89 Greater than ​ Total ​ As of December 31, 2019 ​ Days ​ Days ​ 89 Days ​ ​ ​ Past Due & ​ Loans Not (in thousands) ​ Past Due ​ Past Due ​ Past Due ​ Non-accrual ​ Non-accrual ​ Past Due Commercial ​ $ 326 ​ $ 25 ​ $ — ​ $ — ​ $ 351 ​ $ 86,201 ​ Real estate construction ​ — ​ — ​ — ​ 374 ​ 374 ​ 31,845 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,734 ​ 274 ​ 47 ​ 845 ​ 3,900 ​ 287,519 ​ Multi-family residential ​ — ​ — ​ 1,292 ​ — ​ 1,292 ​ 47,330 ​ Non-farm & non-residential ​ 302 ​ 19 ​ 121 ​ 1,799 ​ 2,241 ​ 202,667 ​ Agricultural ​ 704 ​ — ​ 7 ​ — ​ 711 ​ 56,455 ​ Consumer ​ 158 ​ 17 ​ 32 ​ 63 ​ 270 ​ 22,852 ​ Other ​ — ​ — ​ — ​ — ​ — ​ 305 ​ Total ​ $ 4,224 ​ $ 335 ​ $ 1,499 ​ $ 3,081 ​ $ 9,139 ​ $ 735,174 ​ ​ Troubled Debt Restructurings: ​ Management periodically reviews renewals and modifications of previously identified troubled debt restructurings (TDR), for which there was no principal forgiveness, to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms, management considers the potential removal of the TDR classification. If deemed appropriate based upon current underwriting, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of renewal/modification and there was a reasonable expectation that the borrower will continue to comply with the terms of the loan after the date of the renewal/modification. ​ Additionally, TDR classification can be removed in circumstances in which the Company performs a non-concessionary re-modification of the loan at terms considered to be at market for loans with comparable risk and management expects the borrower will continue to perform under the re-modified terms based on the borrower's past history of performance. ​ On March 22, 2020, the Interagency Statement was issued by our banking regulators that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. The Interagency Statement was subsequently revised in April 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. In accordance with such guidance, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. The majority of the loan modifications we made for customers involved three to six month forbearance payments which were added to the end of the note. ​ The Company had no loans classified as troubled debt restructurings as of June 30, 2020 or December 31, 2019. ​ Credit Quality Indicators: ​ The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: ​ Special Mention. Loans classified as special mention have one or more potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. ​ Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined and documented weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. ​ Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ​ Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. ​ As of June 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 ​ Special ​ ​ (in thousands) ​ Pass ​ Mention ​ Substandard ​ Doubtful Commercial ​ $ 129,902 ​ $ 2,116 ​ $ 81 ​ $ — ​ Real estate construction ​ 24,743 ​ — ​ 393 ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 285,940 ​ 3,392 ​ 5,994 ​ — ​ Multi-family residential ​ 46,985 ​ 931 ​ 1,292 ​ — ​ Non-farm & non-residential ​ 215,067 ​ 9,431 ​ 170 ​ 1,799 ​ Agricultural ​ 50,485 ​ 4,649 ​ 2,394 ​ — ​ Total ​ $ 753,122 ​ $ 20,519 ​ $ 10,324 ​ $ 1,799 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ Special ​ ​ (in thousands) ​ Pass ​ Mention ​ Substandard ​ Doubtful Commercial ​ $ 83,515 ​ $ 2,785 ​ $ 252 ​ $ — ​ Real estate construction ​ 30,462 ​ 1,363 ​ 394 ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 283,048 ​ 3,435 ​ 4,932 ​ 4 ​ Multi-family residential ​ 43,193 ​ 4,137 ​ 1,292 ​ — ​ Non-farm & non-residential ​ 195,800 ​ 7,169 ​ 1,939 ​ — ​ Agricultural ​ 51,352 ​ 4,459 ​ 1,355 ​ — ​ Total ​ $ 687,370 ​ $ 23,348 ​ $ 10,164 ​ $ 4 ​ ​ For consumer loans, the Company evaluates the credit quality based on the aging of the recorded investment in loans, which was previously presented. Non-performing consumer loans are loans which are greater than ​ Non-consumer loans with an outstanding balance less than $200 thousand are evaluated similarly to consumer loans. Loan performance is evaluated based on delinquency status. Both are reviewed at least quarterly and credit quality grades are updated as needed. ​

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	4. EARNINGS PER SHARE ​ Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based compensation agreements. ​ The factors used in the earnings per share computation follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2020 2019 ​ ​ (in thousands) Basic and Diluted Earnings Per Share ​ ​ ​ ​ ​ ​ Net Income $ 4,824 $ 6,048 Weighted average common shares outstanding ​ 5,890 ​ 5,937 Basic and diluted earnings per share $ 0.81 $ 1.01 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, ​ 2020 2019 ​ ​ (in thousands) Basic and Diluted Earnings Per Share ​ ​ ​ ​ ​ ​ Net Income $ 3,073 $ 3,237 Weighted average common shares outstanding ​ 5,892 ​ 5,937 Basic and diluted earnings per share $ 0.51 $ 0.54 ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock grants were excluded in shares outstanding for purposes of computing basic and diluted earnings per share for the both the six months ended June 30, 2020 and June 30, 2019.

STOCK COMPENSATION

STOCK COMPENSATION	6 Months Ended
	Jun. 30, 2020
STOCK COMPENSATION
STOCK COMPENSATION	5. STOCK COMPENSATION ​ We have three stock based compensation plans as described below. ​ 2005 Restricted Stock Grant Plan ​ On May 10, 2005, the Company’s stockholders approved a restricted stock grant plan. Total shares issuable under the plan were 100,000. There were no shares issued during 2020 or 2019. The plan is now expired and no additional shares will be issued from the 2005 plan. There were 0 shares forfeited during the six months ended June 30, 2020 and 12 shares were forfeited during the six months ended June 30, 2019. ​ A summary of changes in the Company’s nonvested shares for the year follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ Grant-Date ​ ​ Shares ​ ​ Fair Value Nonvested at January 1, 2020 1,580 ​ $ 13.67 Vested (1,580) ​ 13.67 Nonvested at June 30, 2020 — ​ $ — ​ As of June 30, 2020, there was no unrecognized compensation cost related to nonvested shares granted under the 2005 Restricted Stock Grant due to their being no nonvested shares outstanding. 2009 Stock Award Plan ​ On May 13, 2009, the Company’s stockholders approved a stock award plan that provides for the granting of both incentive and nonqualified stock options and other share based awards. Total shares issuable under the plan were 300,000 . There were 0 shares issued during the six months ended June 30, 2020 and 23,380 shares were issued during the six months ended June 30, 2019. The plan is now expired and no additional shares will be issued from the 2009 plan. There were 300 shares forfeited during the six months ended June 30, 2020 and 108 shares were forfeited during the six months ended June 30, 2019. ​ A summary of changes in the Company’s nonvested shares for the year follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant-Date Nonvested Shares ​ Shares ​ ​ Fair Value Nonvested at January 1, 2020 38,482 ​ $ 21.46 Vested (12,855) ​ 20.98 Forfeited (300) ​ 21.37 Nonvested at June 30, 2020 25,327 ​ $ 21.70 ​ 2019 Stock Award Plan ​ On May 21, 2019, the Company’s stockholders approved a stock award plan that provides for the granting of both incentive and nonqualified stock options and other share based awards. Total shares issuable under the plan are 300,000 . There were 30,030 shares issued during the six months ended June 30, 2020 and 0 shares were issued during the six months ended June 30, 2019. There were 180 shares forfeited during the six months ended June 30, 2020 and 0 shares forfeited during the six months ended June 30, 2019. ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant-Date Nonvested Shares ​ Shares ​ Fair Value Nonvested at January 1, 2020 — ​ $ — Granted 30,030 ​ ​ 23.11 Forfeited ​ (180) ​ ​ (23.11) Nonvested at June 30, 2020 29,850 ​ $ 23.11 ​

REPURCHASE AGREEMENTS

REPURCHASE AGREEMENTS	6 Months Ended
	Jun. 30, 2020
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS AND OTHER BORROWINGS	6. REPURCHASE AGREEMENTS ​ Repurchase agreements totaled $4.3 million as of June 30, 2020. Of this, $3.3 million of balances were overnight obligations and $1.0 million of balances had terms extending through May 2021 with a weighted remaining average life of 0.9 years. The Company pledged both U.S. treasury securities and U.S. government agency securities with a combined total carrying amount of $11.7 million to secure repurchase agreements as of June 30, 2020.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2020
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	7. FAIR VALUE MEASUREMENTS ​ ASC Topic 820, “Fair Value Measurements and Disclosures”, defines fair value, establishes a framework for measuring fair value, and sets forth disclosures about fair value measurements. ASC Topic 825, “Financial Instruments”, allows entities to choose to measure certain financial assets and liabilities at fair value. The Company has not elected the fair value option for any financial assets or liabilities. ​ ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This Topic describes three levels of inputs that may be used to measure fair value: ​ Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ​ Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ​ Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. ​ The Company used the following methods and significant assumptions to estimate the fair value: ​ Investment Securities : The fair values for available for sale investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). ​ Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent third party real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. ​ Net adjustments totaled $973 thousand the first six months of 2020 and $(193) thousand for the first six months of 2019 and resulted in a Level 3 classification of the inputs for determining fair value. Net adjustments totaled $950 thousand for the three months ended June 30, 2020 and $(11) thousand for the three months ended June 30, 2019 and resulted in a Level 3 classification of the inputs for determining fair value. ​ Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. ​ Mortgage Servicing Rights : Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income, resulting in a Level 3 classification. ​ Derivatives and Financial Instruments: The fair values of derivative financial instruments are based on derivative valuation models using market data inputs as of the valuation date (Level 2). ​ Assets and Liabilities Measured on a Recurring Basis ​ Available for sale investment securities, derivatives and other financial instrument assets and equity securities included in other assets are the Company’s only balance sheet items that meet the disclosure requirements for instruments measured at fair value on a recurring basis. Disclosures are as follows in the tables below. ​ Fair Value Measurements at June 30, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices ​ ​ ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs Description ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Financial Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,294 ​ $ — ​ $ 9,294 ​ $ — ​ U. S. government agencies ​ ​ 15,826 ​ ​ — ​ ​ 15,826 ​ ​ — ​ States and political subdivisions ​ 48,805 ​ — ​ 48,805 ​ — ​ Mortgage-backed - residential ​ 99,934 ​ — ​ 99,934 ​ — ​ Mortgage-backed-commercial ​ ​ 43,971 ​ ​ — ​ ​ 43,971 ​ ​ — ​ Asset-backed ​ ​ 33,756 ​ ​ — ​ ​ 33,756 ​ ​ — ​ Derivatives ​ ​ 473 ​ ​ — ​ ​ 473 ​ ​ — ​ Equity Securities ​ ​ 298 ​ ​ 298 ​ ​ — ​ ​ — ​ Total ​ $ 252,357 ​ $ 298 ​ $ 252,059 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ $ 2,844 ​ $ — ​ $ 2,844 ​ $ — ​ ​ Fair Value Measurements at December 31, 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs Description ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) U.S. treasury notes ​ $ 9,168 ​ $ — ​ $ 9,168 ​ $ — ​ U. S. government agencies ​ ​ 23,735 ​ ​ — ​ ​ 23,735 ​ ​ — ​ States and political subdivisions ​ 32,589 ​ — ​ 32,589 ​ — ​ Mortgage-backed - residential ​ 113,991 ​ — ​ 113,991 ​ — ​ Mortgage-backed - commercial ​ ​ 50,351 ​ ​ — ​ ​ 50,351 ​ ​ — ​ Asset-backed ​ ​ 35,496 ​ ​ — ​ ​ 35,496 ​ ​ — ​ Derivatives ​ ​ 94 ​ ​ ​ ​ ​ 94 ​ ​ ​ ​ Equity Securities ​ 292 ​ 292 ​ — ​ — ​ Total ​ $ 265,716 ​ $ 292 ​ $ 265,424 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ $ 164 ​ $ — ​ $ 164 ​ $ — ​ ​ There were no transfers between level 1 and level 2 during 2020 or 2019. ​ Assets measured at fair value on a non-recurring basis are summarized below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at June 30, 2020 Using : ​ ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs (In thousands) ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Description ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ $ 1,217 $ — $ — $ ​ 1,217 ​ Non-farm & non-residential ​ ​ 899 ​ — ​ — ​ ​ 899 ​ Other real estate owned, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 73 ​ — ​ — ​ ​ 73 ​ Commercial ​ ​ 246 ​ — ​ — ​ 246 ​ Agricultural ​ ​ 233 ​ — ​ — ​ ​ 233 ​ Mortgage servicing rights ​ ​ 1,335 ​ — ​ — ​ ​ 1,335 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2019 Using : ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs (In thousands) ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Description ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 200 $ — $ — ​ $ 200 ​ Multi-family residential ​ ​ 1,242 ​ — ​ — ​ ​ 1,242 ​ Other real estate owned, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 40 ​ — ​ — ​ ​ 40 ​ Commercial ​ ​ 246 ​ — ​ — ​ ​ 246 ​ Agriculturual ​ ​ 233 ​ — ​ — ​ ​ 233 ​ Mortgage servicing rights ​ 1,107 — — ​ 1,107 ​ ​ Impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had a net carrying amount of $2.1 million, which includes a valuation allowance of $975 thousand as of June 30, 2020. Impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had a net carrying amount of $1.4 million, with a valuation allowance of $52 thousand at December 31, 2019. ​ Based on recent developments for one loan with an outstanding balance of $1.8 million and classified as non-farm and non-residential as of June 30, 2020, a specific valuation allowance of $900 thousand was deemed necessary as of June 30, 2020. Further, one additional loan was impaired at June 30, 2020 when compared to December 31, 2019 and required additional loan provision expense of $50 thousand for the three months and six months ended June 30, 2020. ​ Other real estate owned measured at fair value less costs to sell had a net carrying amount of $552 thousand, which is made up of the outstanding cost balance of $1.0 million, net of a valuation allowance of $477 thousand as of June 30, 2020. Other real estate owned which was measured at fair value less costs to sell, had a net carrying amount of $519 thousand, which was made up of the outstanding balance of $980 thousand, net of a valuation allowance of $461 thousand at December 31, 2019. The Company recorded $38 thousand expense for write-downs of other real estate owned properties for the six months ended both June 30, 2020 and June 30, 2019. The Company recorded no write-downs of other real estate owned properties for the three months ended both June 30, 2020 and June 30, 2019. ​ Impaired mortgage servicing rights are carried at the lower of cost or fair value. At June 30 2020, impaired mortgage servicing rights totaled $1.8 million, less a valuation allowance of $446 thousand, resulting in a net carrying value of $1.3 million. ​ At December 31, 2019, impaired mortgage servicing rights totaled $1.2 million, less a valuation allowance of $110 thousand, resulting in a carrying value of $1.1 million. For the six months ended June 30, 2020, the Company recorded net writedowns of $336 thousand. For the six months ended June 30,2019, the Company recorded net write-downs of $41 thousand. For the three months ended June 30, 2020, the Company recorded net writedowns of $194 thousand. For the three months ended June 30,2019, the Company recorded net write-downs of $35 thousand. ​ The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range ​ June 30, 2020 Fair Valuation Unobservable (Weighted ​ (In thousands) ​ Value ​ Technique(s) ​ Input(s) ​ Average) ​ Impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential $ 1,217 income approach capitalization rate 7% - 7% (7)% ​ Non-farm Non-residential ​ 899 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (50)% -(50)% (50)% ​ Other real estate owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 73 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (23)% - (28)% (30)% ​ Commercial ​ 246 ​ income approach ​ capitalization rate ​ (6)% - 8% (62)% ​ Agricultural ​ 233 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (0)% - 26% (14)% ​ Mortgage servicing rights ​ 1,335 ​ discounted cash flow ​ constant prepayment rates ​ (12)% - (24)% (18)% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range December 31, 2019 ​ Fair ​ Valuation ​ Unobservable ​ (Weighted (In thousands) ​ Value ​ Technique(s) ​ Input(s) ​ Average) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 200 sales comparison adjustment for differences between the comparable sales (1)% - 21% (1)% Multi-family residential ​ 1,242 ​ income approach ​ capitalization rate ​ 7% - 7% (7)% Other real estate owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 40 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (4%) - 11% (29%) Commercial ​ 246 ​ sales comparison ​ capitalization rate ​ (6%) - 8% (62)% Agriculturual ​ 233 ​ sales comparison ​ adjustment for differences between the comparable sales ​ 0% - 26% (14)% Mortgage servicing rights ​ 1,107 ​ discounted cash flow ​ constant prepayment rates ​ 9% - 20% (12)% ​ Fair Value of Financial Instruments ​ The carrying amounts and estimated fair values of financial instruments, as of June 30, 2020 and December 31, 2019 are as follows: ​ June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Value ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 104,273 ​ $ 104,273 ​ $ — ​ $ — ​ $ 104,273 ​ Interest bearing time deposits ​ ​ 2,274 ​ ​ 2,274 ​ ​ — ​ ​ — ​ ​ 2,274 ​ Securities available for sale ​ 251,586 ​ — ​ 251,586 ​ — ​ 251,586 ​ Loans held for sale ​ 6,178 ​ — ​ 6,338 ​ — ​ 6,338 ​ Net Loans ​ 798,078 ​ — ​ — ​ 792,183 ​ 792,183 ​ Federal Home Loan Bank stock ​ 7,072 ​ — ​ — ​ — ​ N/A ​ Interest receivable ​ 4,986 ​ — ​ 960 ​ 4,026 ​ 4,986 ​ Derivatives ​ ​ 473 ​ ​ — ​ ​ 473 ​ ​ — ​ ​ 473 ​ Equity securities ​ ​ 298 ​ ​ 298 ​ ​ — ​ ​ — ​ ​ 298 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deposits ​ $ 944,556 ​ $ 738,775 ​ $ 207,401 ​ $ — ​ $ 946,176 ​ Repurchase agreements ​ 4,308 ​ — ​ 4,315 ​ — ​ 4,315 ​ Short-term Federal Home Loan Bank advances ​ ​ 50,500 ​ ​ — ​ ​ 50,500 ​ ​ — ​ ​ 50,500 ​ Long-term Federal Home Loan Bank advances ​ 94,905 ​ — ​ 97,922 ​ — ​ 97,922 ​ Subordinated debentures ​ 7,217 ​ — ​ — ​ 6,785 ​ 6,785 ​ Interest payable ​ 1,251 ​ — ​ 1,239 ​ 12 ​ 1,251 ​ Derivatives ​ ​ 2,844 ​ ​ — ​ ​ 2,844 ​ ​ — ​ ​ 2,844 ​ ​ December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Value ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 22,182 ​ $ 22,182 ​ $ — ​ $ — ​ $ 22,182 ​ Interest bearing time deposits ​ ​ 2,375 ​ ​ 2,375 ​ ​ — ​ ​ — ​ ​ 2,375 ​ Securities available for sale ​ 265,330 ​ — ​ 265,330 ​ — ​ 265,330 ​ Loans held for sale ​ 2,144 ​ — ​ 2,171 ​ — ​ 2,171 ​ Net Loans ​ 735,853 ​ — ​ — ​ 735,060 ​ 735,060 ​ Federal Home Loan Bank stock ​ 7,034 ​ — ​ — ​ — ​ N/A ​ Interest receivable ​ 4,166 ​ — ​ 1,035 ​ 3,131 ​ 4,166 ​ Derivatives ​ ​ 94 ​ ​ — ​ ​ 94 ​ ​ — ​ ​ 94 ​ Equity securities ​ ​ 292 ​ ​ 292 ​ ​ — ​ ​ — ​ ​ 292 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deposits ​ $ 842,653 ​ $ 630,948 ​ $ 210,892 ​ $ — ​ $ 841,840 ​ Repurchase agreements ​ 5,994 ​ — ​ 5,993 ​ — ​ 5,993 ​ Short-term Federal Home Loan Bank advances ​ 25,000 ​ — ​ 25,000 ​ — ​ 25,000 ​ Long-term Federal Home Loan Bank advances ​ 91,418 ​ — ​ 91,397 ​ — ​ 91,397 ​ Subordinated debentures ​ 7,217 ​ — ​ — ​ 7,213 ​ 7,213 ​ Interest payable ​ 1,170 ​ — ​ 1,156 ​ 14 ​ 1,170 ​ Derivatives ​ ​ 164 ​ ​ — ​ ​ 164 ​ ​ — ​ ​ 164 ​ ​

LEASES

LEASES	6 Months Ended
	Jun. 30, 2020
LEASES
LEASES	​ ​ 8. LEASES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of ​ ​ ​ ​ Financial Condition ​ ​ ​ ​ Location ​ ​ ​ 6/30/2020 ​ 12/31/2019 ​ ​ ​ ​ ​ ​ (in thousands) Operating Lease Right of Use Asset: ​ ​ ​ ​ ​ ​ ​ ​ Gross Carrying Amount ​ ​ ​ $ ​ 8,806 $ 8,857 Accumulated Amortization ​ ​ ​ ​ (919) (662) Net Book Value ​ Operating lease right of use asset ​ $ ​ 7,887 $ 8,195 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Lease Liabilities ​ ​ ​ ​ ​ ​ ​ ​ Right of use lease obligations ​ Operating lease liability ​ $ ​ 8,090 $ 8,350 ​ As of June 30, 2020, the weighted-average remaining lease term for operating leases was 34.9 years and the weighted- average discount rate used in the measurement of operating lease liabilities was 4.13 %. The Company utilized the FHLB fixed rate advance rate as of December 31, 2018 for the term most closely aligning with the remaining lease term for lease obligations in existence as of December 31, 2018. The Company utilized the FHLB fixed rate advance rate as of April 30, 2019 as a basis for determining the discount rate for one contract which was entered into during April 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ 6/30/2020 ​ 6/30/2019 ​ ​ ​ ​ ​ ​ (in thousands) Lease Cost: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ ​ $ ​ 140 $ 111 Total lease cost ​ ​ ​ $ ​ 140 $ 111 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ $ ​ 102 $ 130 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ 6/30/2020 ​ 6/30/2019 ​ ​ ​ ​ ​ ​ (in thousands) Lease Cost: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ ​ $ ​ 158 $ 136 Total lease cost ​ ​ ​ $ ​ 158 $ 136 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ $ ​ 131 $ 93 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Maturity analysis of liabilities under operating leases with terms longer than 12 months, are as follows at June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands ) Twelve months ended June 30, ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ ​ ​ $ ​ ​ ​ 520 2021 ​ ​ ​ ​ ​ ​ ​ 524 2022 ​ ​ ​ ​ ​ ​ ​ 529 2023 ​ ​ ​ ​ ​ ​ ​ 539 2024 ​ ​ ​ ​ ​ ​ ​ 525 Thereafter ​ ​ ​ ​ ​ ​ ​ 18,621 Total undiscounted lease payments ​ ​ ​ $ ​ ​ ​ 21,258 Amounts representing interest ​ ​ ​ ​ ​ ​ ​ (13,168) Lease liability ​ ​ ​ $ ​ ​ ​ 8,090 ​

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
	Jun. 30, 2020
REVENUE FROM CONTRACTS WITH CUSTOMERS.
REVENUE FROM CONTRACTS WITH CUSTOMERS	9. ​ The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income. The consolidated statements of income include all categories of noninterest income. There are no significant individual items included in other non-interest income within the scope of Topic 606. The following table reflects only the categories of noninterest income that are within the scope of Topic 606: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ 6/30/2020 ​ 6/30/2019 6/30/2020 ​ 6/30/2019 Service charges ​ $ 990 ​ $ 1,397 $ 2,279 ​ $ 2,591 Trust department income ​ ​ 332 ​ 347 ​ 702 ​ 675 Brokerage income ​ ​ 95 ​ 135 ​ 222 ​ 271 Debit card interchange income ​ ​ 915 ​ 903 ​ 1,727 ​ 1,693 Total ​ ​ $ 2,332 ​ $ 2,782 ​ $ 4,930 ​ $ 5,230 ​ Trust department income ​ Service charges : We earn fees from our deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees and overdraft fees are recognized at a point in time, since the customer generally has a right to cancel the depository arrangement at any time. The arrangement is considered a day-to-day contract with ongoing renewals and optional purchases, so the duration of the contract does not extend beyond the services already performed. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month representing the period over which we satisfy our performance obligation. ​ Debit card interchange income ​ Brokerage income : Brokerage income fees are the commissions and fees received from a registered broker/dealer and investment adviser that provide those services to our customers. We act as an agent in arranging the relationship between the customer and the third-party service provider. These fees are recognized monthly from the third-party broker based upon services already performed.

DERIVATIVES AND FINANCIAL INSTR

DERIVATIVES AND FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
DERIVATIVES AND FINANCIAL INSTRUMENTS
DERIVATIVES AND FINANCIAL INSTRUMENTS	10. DERIVATIVES AND FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, the Company uses derivative instruments, including interest rate swaps. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Cash Flow Hedges: Interest rate swaps with notional amounts totaling million as of June 30, 2020 and December 31, 2019, were designated as cash flow hedges of certain rolling three month term FHLB advances and were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the cash flow hedge was a liability of Fair Value Hedges: million as of June 30, 2020. The hedges were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the fair value hedge asset was thousand as of June 30, 2020 and December 31, 2019 and included in loans on the Company’s balance sheet. The carrying value of the fair value hedge liability was Derivatives Not Designated as Hedges: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on the sales of loans. The carrying value of the fair value asset related to the mortgage banking derivatives was thousand as of June 30, 2020 and December 31, 2019 and was included in other assets on the Company’s balance sheet. The notional amounts of these transactions as of June 30, 2020 and December 31, 2019 were million. ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation : The consolidated financial statements include the accounts of Kentucky Bancshares, Inc. (the Company), its wholly-owned subsidiaries, Kentucky Bank (the Bank) and KBI Insurance Company, Inc., a captive insurance subsidiary, and the Bank’s wholly-owned subsidiary, KB Special Assets Unit, LLC. Intercompany transactions and balances have been eliminated in consolidation.
Nature of Operations	Nature of Operations : The Bank operates under a state bank charter and provides full banking services, including trust services, to customers located in Bourbon, Clark, Elliot, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and adjoining counties in Kentucky. As a state bank, the Bank is subject to regulation by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The Company, a bank holding company, is regulated by the Federal Reserve. KBI Insurance Company, Inc., a captive insurance subsidiary, is regulated by the State of Nevada Division of Insurance.
Estimates in the Financial Statements	Estimates in the Financial Statements : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​ COVID-19: In December 2019, a novel strain of coronavirus, Coronavirus Disease (COVID-19), was reported in Wuhan, China. The COVID-19 virus continues to aggressively spread globally and has spread to over 185 countries, including all 50 states in the United States. A prolonged COVID-19 outbreak, or any other epidemic that harms the global economy, U.S. economy, or the economies in which we operate could adversely affect our operations. While the spread of the COVID-19 virus has minimally impacted our operations as of June 30, 2020, it has caused significant economic disruption throughout the United States as state and local governments issued “shelter at home” orders along with the closing of non-essential businesses. The potential financial impact is unknown at this time. However, if these actions are sustained, it may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could cause Kentucky Bancshares to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on Kentucky Bancshares’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives.
Cash Flows	Cash Flows : For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and certain short-term investments with maturities of less than three months. Generally, federal funds are sold for one -day periods. Net cash flows are reported for loan, deposit and short-term borrowing transactions.
Interest Bearing Time Deposits	Interest Bearing Time Deposits
Securities	Securities : The Company is required to classify its securities portfolio into one of three categories: trading securities, securities available for sale and securities held to maturity. Fair value adjustments are made to the securities based on their classification with the exception of the held to maturity category. The Company has no investments classified as trading securities or held to maturity. Securities available for sale are carried at fair value. Unrealized holding gains and losses for securities which are classified as available for sale are reported in other comprehensive income, net of deferred tax. ​ Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums on purchased callable debt securities are amortized to the earliest call date. Gains and losses on sales are recorded on the settlement date and determined using the specific identification method. ​ Equity investments with readily determinable fair values are included in other assets with changes in fair value recorded in other income. ​ Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. ​ For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.
Loans Held for Sale	Loans Held for Sale : Loans held for sale are carried at the lower of cost or fair value as determined by outstanding commitments from investors or current secondary market prices, calculated on the aggregate loan basis. The Company also provides for any losses on uncovered commitments to lend or sell. The Company sells loans with servicing rights retained.
Loans	Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity are stated at the amount of unpaid principal, net of deferred loan origination fees and costs and acquired purchase premiums and discounts, reduced by an allowance for loan losses. Interest income on loans is recognized on the accrual basis except for those loans on a nonaccrual status. Interest income on real estate mortgage (1-4 family residential and multi-family residential) and consumer loans is discontinued at the time the loan is delinquent, unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Recorded investment is the outstanding loan balance, excluding accrued interest receivable. When interest accrual is discontinued, interest income received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. ​ Typically, the Company seeks to establish a payment history of at least six consecutive payments made on a timely basis before returning a loan to accrual status. Consumer and credit card loans are typically charged off no later than past due. Loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. ​
Concentration of Credit Risk	Concentration of Credit Risk : Most of the Company’s business activity is with customers located within Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and surrounding counties located in Kentucky. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in these counties.
Allowance for Loan Losses	Allowance for Loan Losses : The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. ​ Adjustments are made to the historical loss experience ratios based on the qualitative factors as outlined in the regulatory Interagency Policy Statement on the Allowance for Loan and Lease Losses. These qualitative factors include the nature and volume of portfolio, economic and business conditions, classification, past due and non-accrual trends. ​ Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. ​ The allowance for loan losses is evaluated at the portfolio segment level using the same methodology for each segment. The recent historical actual net losses is the basis for the general reserve for each segment which is then adjusted for qualitative factors as outlined above (i.e., nature and volume of portfolio, economic and business conditions, classification, past due and non-accrual trends) specifically evaluated at individual segment levels. ​ The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors for non-classified loans and a migration analysis for classified loans. ​ A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties and has been granted a concession, are considered troubled debt restructurings and classified as impaired. ​ Loans are charged off when available information confirms that loans, or portions thereof, are uncollectible. While management considers the number of days a loan is past due in its evaluation process, we also consider a variety of other factors. ​ Factors considered by management in evaluating the charge-off decision include collateral value, availability of current financial information for both borrower and guarantor (if any), and the probability of collecting contractual principal and interest payments. These considerations may result in loans being charged off before they are or more past due. This evaluation framework for determining charge-offs is consistently applied to each segment. ​ From time to time, the Company will charge-off a portion of impaired and non-performing loans. Loans that meet the criteria under ASC 310 are evaluated individually for impairment. Management considers payment status, collateral value, availability of current financial information for the borrower and guarantor, actual and expected cash flows, and probability of collecting amounts due. If a loan’s collection status is deemed to be collateral dependent or foreclosure is imminent, the loan is charged down to the fair value of the collateral, less selling costs. In circumstances where the loan is not deemed to be collateral dependent, but we believe, after completing our evaluation process, that probable loss has been incurred, we will provide a specific allocation on that loan. ​ The impact of recording partial charge-offs is a reduction of gross loans and a reduction of the loan loss reserve. The net loan balance is unchanged in instances where the loan had a specific allocation as a component of the allowance for loan losses. The allowance as a percentage of total loans may be lower as the allowance no longer needs to include a component for the loss, which has now been recorded, and net charge-off amounts are increased as partial charge-offs are recorded. ​ Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. ​ Commercial and real estate construction and real estate mortgage loans (multi-family residential, and non-farm and non-residential mortgage) over $200 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and 1-4 family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. ​ If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. ​ The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent . This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. ​ A “portfolio segment” is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan losses. The Company has identified the following portfolio segments: commercial, real estate construction, real estate mortgage, agricultural, consumer (credit cards and other consumer) and other (overdrafts). ​ Commercial : These loans to businesses do not have real estate as the underlying collateral. Instead of real estate, collateral could be business assets such as equipment or accounts receivable or the personal guarantee of one or more guarantors. These loans generally present a higher level of risk than loans secured by commercial real estate because in the event of default by the borrower, the business assets must be liquidated and/or guarantors pursued for deficit funds. Business assets are worth more while they are in use to produce income for the business and worth significantly less if the business is no longer in operation. Within the commercial portfolio, risk analysis is performed primarily based on the individual loan type. ​ Real estate construction : Real estate construction consists of loans secured by real estate for additions or alterations to existing structures, as well as constructing new structures. They include fixed and floating rate loans. Real estate construction loans generally present a higher level of risk than loans secured by 1-4 family residential real estate primarily because of the length of the construction period, potential change in prices of construction, the incomplete status of the collateral and economic cycles. Because of these factors, real estate construction loans generally have higher qualitative adjustments. ​ Real Estate Mortgage ​ 1-4 family residential : Loans secured by 1-4 family residential real estate represent the lowest risk of loans for the Company. They include fixed and floating rate loans as well as loans for commercial purposes or consumer purposes. The Company generally does not hold subprime residential mortgages. Borrowers with loans in this category, whether for commercial or consumer purposes, tend to make their payments timely as they do not want to risk foreclosure and loss of property. Multifamily residential : Loans secured by multifamily residential real estate consist primarily of loans secured by apartment buildings and can be either fixed or floating rate loans. Multi-family residential real estate loans generally present a higher level of risk than loans secured by 1-4 family residential real estate because the borrower’s repayment ability typically comes from rents from tenants. Local economic and employment fluctuations impact rent rolls and potentially the borrower’s repayment ability. ​ Non-farm & non-residential : Loans secured by non-farm non-residential real estate consist of loans secured by commercial real estate that is not owner occupied. These loans generally consist of loans collateralized by property whereby rents received from commercial tenants of the borrower are the source of repayment. These loans generally present a higher level of risk than loans secured by owner occupied commercial real estate because repayment risk is expanded to be dependent on the success of multiple businesses which are paying rent to the borrower. If multiple businesses fail due to deteriorating economic conditions or poor business management skills, the borrower may not have enough rents to cover their monthly payment. Repayment risk is also increased depending on the level of surplus available commercial lease space in the local market area. ​ Agricultural : These loans to agricultural businesses do not have real estate as the underlying collateral. Instead of real estate, collateral could be assets such as equipment or accounts receivable or the personal guarantee of one or more guarantors. These loans generally present a higher level of risk than loans secured by real estate because in the event of default by the borrower, the assets must be liquidated and/or guarantors pursued for deficit funds. Farm assets are worth more while they are in use to produce income and worth significantly less if the farm is no longer in operation. Consumer : Consumer loans are generally loans to borrowers for non-business purposes. They can be either secured or unsecured. Consumer loans are generally small in the individual amount of principal outstanding and are repaid from the borrower’s private funds earned from employment. Consumer lending risk is very susceptible to local economic trends. If there is a consumer loan default, any collateral that may be repossessed is generally not well maintained and has a diminished value. For this reason, consumer loans tend to have higher overall interest rates to cover the higher cost of repossession and charge-offs. However, due to their smaller average balance per borrower, consumer loans are collectively evaluated for impairment in determining the appropriate allowance for loan losses. ​ Other : All other loan types are aggregated together for credit risk evaluation due to the varying nature but small number of the remaining types of loans in the Company’s loan portfolio. Loans in this segment include but are not limited to overdrafts. Due to their smaller balance, other loans are collectively evaluated for impairment in determining the appropriate allowance for loan losses. ​ Due to the overall high level of real estate mortgage loans within the loan portfolio as a whole, as compared to other portfolio segments, for risk assessment and allowance purposes this segment was segregated into more granular pools by collateral property type. ​ The non-farm non-residential and the multi-family real estate mortgage loan portfolio segments had the next highest level of qualitative adjustments due to the effects of local markets and economies on the underlying collateral property values, as well as for industry concentrations and risks related to the this type of property.
Derivatives	Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair value changes. ​ For a cashflow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. ​ Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. ​ The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking both fair value hedges and cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. ​ The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. ​ When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.
Mortgage Banking Derivatives	Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of the mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on the sales of loans. ​
Mortgage Servicing Rights	Mortgage Servicing Rights : The Bank has sold certain residential mortgage loans to the Federal Home Loan Mortgage Corporation (FHLMC) while retaining the servicing rights. Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of mortgage loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. ​ The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into loan service fee income, net, included in non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. ​ Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type.Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. ​ Servicing fee income, which is reported on the income statement as loan service income, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights and valuation allowance are netted against loan servicing fee income. Servicing fees totaled thousand for the six months ended June 30, 2019 and are included in loan service fee income, net in the income statement. Servicing fees totaled thousand for the three months ended June 30, 2019 and are included in loan service fee income, net in the income statement. Late fees and ancillary fees related to loan servicing are not material. Amortization expense, including write-downs for fair value adjustments, was thousand for the six months ended June 30, 2019. Amortization expense, including write-downs for fair value adjustments, was ​
Federal Home Loan Bank (FHLB) Stock	Federal Home Loan Bank (FHLB) Stock : The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
Bank-Owned Life Insurance	Bank-Owned Life Insurance : The Company has purchased life insurance policies on certain key employees. Bank- owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Bank Premises and Equipment	Bank Premises and Equipment : Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from . Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from
Real Estate Owned	Real Estate Owned : Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. Real estate acquired through foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. The value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged to operating expenses. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in other expenses. ​
Investments in Limited Partnerships	Investments in Limited Partnerships : Investments in limited partnerships represent the Company’s investments in affordable housing projects for the primary purpose of available tax benefits. The Company is a limited partner in these investments and as such, the Company is not involved in the management or operation of such investments. These investments are amortized over the period that the Company expects to receive the tax benefits. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. ​ The investment recorded at June 30, 2020 was $3.6 million and $3.9 million at June 30, 2019, respectively, and is included with other assets in the balance sheet. During the six months ended ended June 30, 2020 and 2019, the Company recognized amortization expense of thousand, respectively, which was included within noninterest expense on the consolidated statements on income. During the three months ended ended June 30, 2020 and 2019, the Company recognized amortization expense of thousand, respectively, which was included within noninterest expense on the consolidated statements on income. ​
Leases	​
Repurchase Agreements	Repurchase Agreements : Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. ​
Stock-Based Compensation	Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.
Revenue Recognition	Revenue Recognition : The Company’s services that fall within the scope of ASC 606 are presented within Non-Interest Income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include trust department income, service charges, debit card interchange income and brokerage income.
Income Taxes	​ Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. ​ A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, tax benefit is recorded. The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other expense.
Retirement Plans	Retirement Plans : Employee 401(k) and profit sharing plan expense is the amount of matching contributions. ​
Goodwill and Intangible Assets	Goodwill and Intangible Assets : Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Despite the recent economic downturn associated with the COVID-19 pandemic, management believes no impairment exists to Goodwill as of June 30, 2020. However, management did conclude that that the current decline in macroeconomic conditions is a triggering event and peformed a goodwill impairment test as of June 30, 2020. Management continues to evaluate the Company’s qualitative assessment assumptions. ​ Intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions. They are initially measured at fair value and then are amortized on either an accelerated or straight-line basis, over 10
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. ​
Earnings Per Common Share	Earnings Per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share have been adjusted in all periods presented to give effect to all stock splits and dividends through the date of issuance of the financial statements.
Comprehensive Income (Loss)	Comprehensive Income (Loss) : Comprehensive income consists of net income and other comprehensive income. Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, and unrealized gains and losses on cash flow hedges, which are also recognized as a separate component of equity. ​
Fair Value of Financial Instruments	Fair Value of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. ​
Operating Segments	Operating Segments : While the Company’s chief decision makers monitor the revenue streams of the various Company products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s operations are considered by management to be aggregated into
Reclassifications	Reclassifications : Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.
Accounting Standards Issued But Not Yet Adopted	Adoption of New Accounting Standards ​ FASB ASC 326, 815, and 825 – Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ​ FASB ASC 350 – Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment ​ FASB ASC 820 Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities for nonpublic entities; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update became effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. ​ On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”, which was subsequently clarified and revised by an interagency statement issued on April 7, 2020. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the FASB staff that the federal banking agencies conclude that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not Troubled Debt Restructurings (“TDRs”). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law on March 27, 2020 and has subsequently been amended several times. Section 4013 of the CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. Modifications were executed in the second quarter of 2020. The majority of these modifications involved three to six month forbearance payments which were added to the end of the note. As of June 30, 2020, we had approved modifications on approximately ​ Accounting Standards Issued But Not Yet Adopted ​ ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 added Financial Accounting Standards Board “FASB” ASC Topic 326, “Financial Instruments-Credit Losses” and finalized amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.” The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ​ The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The amendment requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ​ As previously disclosed, the Company formed a steering committee to oversee the adoption of the ASU at the effective date. Appropriate members of Senior Management have developed a plan focused on understanding the ASU, researching issues, identifying data needs for modeling inputs, technology requirements, and modeling considerations. The Company is focused on the completion of its model, refining assumptions, and continued review of the model. Concurrent with this, the Company is also focused on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls, and considering various reporting disclosures. ​ As of the beginning of the first reporting period in which the new standard is effective, the Company expects to recognize a one-time cumulative effect adjustment increasing the allowance for loan losses, if any, since the ASU covers credit losses over the expected life of a loan as well as considering future changes in macroeconomic conditions. The magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements cannot yet be reasonably estimated, however, we expect to run multiple parallel models before finalizing the adjustment amount by December 31, 2022. ​ In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. ​ In 2019, the Financial Accounting Standards Board approved a delay for the implementation of the current expected credit loss standard until January 2023 for certain companies. The delay would apply to smaller reporting companies (as defined by the SEC), non-SEC public companies and private companies. The delayed implementation date of January 2023 will apply to Kentucky Bancshares and the Company does not intend to early adopt.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2020
SECURITIES
Schedule of securities available for sale	​ Period-end securities are as follows: (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ ​ Cost ​ Gains ​ Losses ​ Value Available for Sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,120 ​ $ 174 ​ $ — ​ $ 9,294 ​ U.S. government agencies ​ ​ 15,625 ​ ​ 216 ​ ​ (15) ​ ​ 15,826 ​ States and political subdivisions ​ 47,681 ​ 1,152 ​ ​ (28) ​ 48,805 ​ Mortgage-backed - residential ​ 97,870 ​ 2,096 ​ ​ (32) ​ 99,934 ​ Mortgage-backed - commercial ​ ​ 43,043 ​ ​ 943 ​ ​ (15) ​ ​ 43,971 ​ Asset-backed ​ ​ 34,995 ​ ​ 33 ​ ​ (1,272) ​ ​ 33,756 ​ Total ​ $ 248,334 ​ $ 4,614 ​ $ (1,362) ​ $ 251,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,165 ​ $ 3 ​ $ — ​ $ 9,168 ​ U.S. government agencies ​ ​ 23,716 ​ ​ 60 ​ ​ (41) ​ ​ 23,735 ​ States and political subdivisions ​ 31,950 ​ 661 ​ ​ (22) ​ 32,589 ​ Mortgage-backed - residential ​ 113,629 ​ 634 ​ ​ (272) ​ 113,991 ​ Mortgage-backed - commercial ​ ​ 50,092 ​ ​ 406 ​ ​ (147) ​ ​ 50,351 ​ Asset-backed ​ ​ 35,682 ​ ​ 55 ​ ​ (241) ​ ​ 35,496 ​ Total ​ $ 264,234 ​ $ 1,819 ​ $ (723) ​ $ 265,330 ​
Schedule of amortized cost and fair value of securities by contractual maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value Due in one year or less ​ $ 8,033 ​ $ 8,086 ​ Due after one year through five years ​ 17,898 ​ 18,235 ​ Due after five years through ten years ​ 19,364 ​ ​ 19,899 ​ Due after ten years ​ 27,131 ​ ​ 27,705 ​ ​ ​ 72,426 ​ 73,925 ​ Mortgage-backed - residential ​ 97,870 ​ 99,934 ​ Mortgage-backed - commercial ​ ​ 43,043 ​ ​ 43,971 ​ Asset-backed ​ ​ 34,995 ​ ​ 33,756 ​ Total ​ $ 248,334 ​ $ 251,586 ​
Schedule of securities with unrealized losses not recognized in income	June 30, 2020 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 Months ​ 12 Months or More ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities ​ Value ​ Loss ​ Value ​ Loss ​ Value ​ Loss U.S. government agencies ​ $ — ​ $ — ​ $ 870 ​ $ (15) ​ $ 870 ​ $ (15) ​ States and political subdivisions ​ ​ 4,704 ​ ​ (28) ​ ​ — ​ ​ — ​ ​ 4,704 ​ ​ (28) Mortgage-backed - residential ​ ​ 11,612 ​ ​ (32) ​ ​ — ​ ​ — ​ ​ 11,612 ​ ​ (32) ​ Mortgage-backed - commercial ​ ​ — ​ ​ — ​ ​ 5,134 ​ ​ (15) ​ ​ 5,134 ​ ​ (15) ​ Asset-backed ​ ​ 24,135 ​ ​ (871) ​ ​ 6,646 ​ ​ (401) ​ ​ 30,781 ​ ​ (1,272) ​ Total temporarily impaired ​ $ 40,451 ​ $ (931) ​ $ 12,650 ​ $ (431) ​ $ 53,101 ​ $ (1,362) ​ ​ December 31, 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 Months ​ 12 Months or More ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities ​ Value ​ Loss ​ Value ​ Loss ​ Value ​ Loss U.S. government agencies ​ $ 6,171 ​ $ (18) ​ $ 4,396 ​ $ (23) ​ $ 10,567 ​ $ (41) ​ States and political subdivisions ​ ​ 859 ​ ​ (3) ​ ​ 1,199 ​ ​ (19) ​ ​ 2,058 ​ ​ (22) ​ Mortgage-backed - residential ​ ​ 32,718 ​ ​ (129) ​ ​ 14,583 ​ ​ (143) ​ ​ 47,301 ​ ​ (272) ​ Mortgage-backed - commercial ​ ​ 5,760 ​ ​ (25) ​ ​ 10,625 ​ ​ (122) ​ ​ 16,385 ​ ​ (147) ​ Asset-backed ​ ​ 21,786 ​ ​ (150) ​ ​ 6,962 ​ ​ (91) ​ ​ 28,748 ​ ​ (241) ​ Total temporarily impaired ​ $ 67,294 ​ $ (325) ​ $ 37,765 ​ $ (398) ​ $ 105,059 ​ $ (723) ​ ​

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2020
LOANS
Schedule of loans	Loans at period-end are as follows: (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 6/30/2020 12/31/2019 Commercial ​ $ 132,099 ​ $ 86,552 ​ Real estate construction ​ 25,136 ​ 32,219 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 295,326 ​ 291,419 ​ Multi-family residential ​ 49,208 ​ 48,622 ​ Non-farm & non-residential ​ 226,467 ​ 204,908 ​ Agricultural ​ 57,528 ​ 57,166 ​ Consumer ​ 22,507 ​ 23,122 ​ Other ​ 196 ​ 305 ​ Total ​ $ 808,467 ​ $ 744,313 ​
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method	Activity in the allowance for loan losses for the six month period indicated was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2020 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 920 $ (25) $ 12 $ 24 $ 931 ​ Real estate Construction ​ 551 ​ — ​ — ​ (85) ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,901 ​ (35) ​ ​ 18 ​ 467 ​ 3,351 ​ Multi-family residential ​ 807 ​ — ​ ​ — ​ 107 ​ 914 ​ Non-farm & non-residential ​ 1,643 ​ — ​ ​ — ​ 1,397 ​ 3,040 ​ Agricultural ​ 389 ​ — ​ ​ 3 ​ 92 ​ 484 ​ Consumer ​ 506 ​ (214) ​ ​ 25 ​ 213 ​ 530 ​ Other ​ 43 ​ (399) ​ ​ 419 ​ (33) ​ 30 ​ Unallocated ​ 700 ​ — ​ ​ — ​ (57) ​ 643 ​ ​ $ 8,460 $ (673) $ 477 $ 2,125 $ 10,389 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2020 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 1,003 $ — $ 6 $ (78) $ 931 ​ Real estate construction ​ 631 ​ — ​ — ​ (165) ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 3,421 ​ — ​ ​ 3 ​ (73) ​ 3,351 ​ Multi-family residential ​ 1,024 ​ — ​ ​ — ​ (110) ​ 914 ​ Non-farm & non-residential ​ 2,104 ​ — ​ ​ — ​ 936 ​ 3,040 ​ Agricultural ​ 463 ​ — ​ ​ 1 ​ 20 ​ 484 ​ Consumer ​ 533 ​ (104) ​ ​ 16 ​ 85 ​ 530 ​ Other ​ 31 ​ (162) ​ ​ 213 ​ (52) ​ 30 ​ Unallocated ​ 706 ​ — ​ ​ — ​ (63) ​ 643 ​ ​ $ 9,916 $ (266) $ 239 $ 500 $ 10,389 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2019 ​ ​ (in thousands) ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending ​ Balance Charge-offs Recoveries Provision Balance Commercial $ 1,159 $ (191) $ 10 $ (16) $ 962 ​ Real estate Construction ​ 414 ​ — ​ — ​ (1) ​ 413 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,605 ​ (104) ​ 12 ​ 253 ​ 2,766 ​ Multi-family residential ​ 733 ​ — ​ — ​ 10 ​ 743 ​ Non-farm & non-residential ​ 1,649 ​ (17) ​ — ​ (33) ​ 1,599 ​ Agricultural ​ 420 ​ — ​ 4 ​ (7) ​ 417 ​ Consumer ​ 410 ​ (140) ​ 17 ​ 105 ​ 392 ​ Other ​ 58 ​ (440) ​ 348 ​ 138 ​ 104 ​ Unallocated ​ 679 ​ — ​ — ​ 1 ​ 680 ​ ​ $ 8,127 $ (892) $ 391 $ 450 $ 8,076 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2019 ​ ​ (in thousands) ​ Beginning ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Charge-offs ​ Recoveries ​ Provision ​ Balance Commercial $ 943 $ — $ 3 $ 16 $ 962 ​ Real estate Construction ​ 351 ​ — ​ — ​ 62 ​ 413 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,660 ​ (5) ​ 4 ​ 107 ​ 2,766 ​ Multi-family residential ​ 723 ​ — ​ — ​ 20 ​ 743 ​ Non-farm & non-residential ​ 1,609 ​ — ​ — ​ (10) ​ 1,599 ​ Agricultural ​ 406 ​ — ​ 3 ​ 8 ​ 417 ​ Consumer ​ 389 ​ (79) ​ 3 ​ 79 ​ 392 ​ Other ​ 70 ​ (199) ​ 139 ​ 94 ​ 104 ​ Unallocated ​ 731 ​ — ​ — ​ (51) ​ 680 ​ ​ $ 7,882 $ (283) $ 152 $ 325 $ 8,076 ​
Schedule of loans individually evaluated for impairment by class of loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually Collectively ​ As of June 30, 2020 ​ Evaluated for ​ Evaluated for ​ ​ ​ (in thousands) ​ Impairment ​ Impairment ​ Total Allowance for Loan Losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 50 ​ $ 881 ​ $ 931 ​ Real estate construction ​ — ​ 466 ​ 466 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ — ​ 3,351 ​ 3,351 ​ Multi-family residential ​ 75 ​ 839 ​ 914 ​ Non-farm & non-residential ​ 900 ​ 2,140 ​ 3,040 ​ Agricultural ​ — ​ 484 ​ 484 ​ Consumer ​ — ​ 530 ​ 530 ​ Other ​ — ​ 30 ​ 30 ​ Unallocated ​ — ​ 643 ​ 643 ​ ​ ​ $ 1,025 ​ $ 9,364 ​ $ 10,389 ​ Loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 144 ​ $ 131,955 ​ $ 132,099 ​ Real estate construction ​ 374 ​ 24,762 ​ 25,136 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 533 ​ 294,793 ​ 295,326 ​ Multi-family residential ​ 1,292 ​ 47,916 ​ 49,208 ​ Non-farm & non-residential ​ 1,799 ​ 224,668 ​ 226,467 ​ Agricultural ​ 3,580 ​ 53,948 ​ 57,528 ​ Consumer ​ — ​ 22,507 ​ 22,507 ​ Other ​ — ​ 196 ​ 196 ​ Total ​ $ 7,722 ​ $ 800,745 ​ $ 808,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually Collectively ​ As of December 31, 2019 ​ Evaluated for ​ Evaluated for ​ ​ (in thousands) ​ Impairment ​ Impairment ​ Total Allowance for Loan Losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ — ​ $ 920 ​ $ 920 ​ Real estate construction ​ — ​ 551 ​ 551 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2 ​ 2,899 ​ 2,901 ​ Multi-family residential ​ 50 ​ 757 ​ 807 ​ Non-farm & non-residential ​ — ​ 1,643 ​ 1,643 ​ Agricultural ​ — ​ 389 ​ 389 ​ Consumer ​ — ​ 506 ​ 506 ​ Other ​ — ​ 43 ​ 43 ​ Unallocated ​ — ​ 700 ​ 700 ​ ​ ​ $ 52 ​ $ 8,408 ​ $ 8,460 ​ Loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ — ​ $ 86,552 ​ $ 86,552 ​ Real estate construction ​ 374 ​ 31,845 ​ 32,219 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 202 ​ 291,217 ​ 291,419 ​ Multi-family residential ​ 1,292 ​ 47,330 ​ 48,622 ​ Non-farm & non-residential ​ 1,799 ​ 203,109 ​ 204,908 ​ Agricultural ​ 842 ​ 56,324 ​ 57,166 ​ Consumer ​ — ​ 23,122 ​ 23,122 ​ Other ​ — ​ 305 ​ 305 ​ Total ​ $ 4,509 ​ $ 739,804 ​ $ 744,313 ​ The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ ​ ​ ​ Allowance for ​ ​ Average ​ Interest ​ Cash Basis ​ ​ Principal Recorded Loan Losses ​ Recorded Income Interest ​ ​ Balance ​ Investment ​ Allocated ​ ​ Investment ​ Recognized ​ Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 94 ​ $ 94 ​ $ — ​ ​ $ 47 ​ $ 1 ​ $ 1 ​ Real estate construction ​ ​ 374 ​ ​ 374 ​ ​ — ​ ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 533 ​ ​ 533 ​ ​ — ​ ​ ​ 368 ​ ​ 12 ​ ​ 12 ​ Agricultural ​ ​ 3,580 ​ ​ 3,580 ​ ​ — ​ ​ ​ 2,211 ​ ​ 32 ​ ​ 32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 50 ​ $ 50 ​ $ 50 ​ ​ $ 25 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ ​ 1,292 ​ ​ 1,292 ​ ​ 75 ​ ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm and non-residential ​ 1,799 ​ ​ 1,799 ​ ​ 900 ​ ​ ​ 900 ​ ​ — ​ ​ — ​ Total $ 7,722 $ 7,722 $ 1,025 ​ $ 5,217 $ 44 $ 44 ​ ​ The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. ​ The following tables present loans individually evaluated for impairment by class of loans for the six months ended June 30, 2019. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net, due to immateriality: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year to Date Year to Date ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ (in thousands): ​ Investment ​ Recognized ​ Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 122 ​ ​ 7 ​ ​ 7 ​ Multi-family residential ​ ​ 1,633 ​ ​ 54 ​ ​ 54 ​ Non-farm and non-residential ​ ​ 114 ​ ​ 5 ​ ​ 5 ​ Agricultural 845 10 10 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 1,001 ​ $ 10 ​ $ 10 ​ Total $ 4,089 $ 86 $ 86 ​ The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2019 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees, net, due to immateriality: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ ​ ​ ​ Allowance for ​ ​ Average ​ Interest ​ Cash Basis ​ ​ Principal ​ Recorded ​ Loan Losses ​ ​ Recorded ​ Income ​ Interest ​ Balance Investment Allocated ​ Investment Recognized Recognized With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ 374 ​ $ — ​ ​ $ 374 ​ $ — ​ $ — ​ Real-estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-farm & non-residential ​ 1,799 ​ 1,799 ​ — ​ ​ 1,013 ​ 17 ​ 17 ​ Agricultural ​ 842 ​ 842 ​ — ​ ​ 1,003 ​ 18 ​ 18 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 202 ​ $ 202 ​ $ 2 ​ ​ $ 603 ​ $ 35 ​ $ 35 ​ Multi-family residential ​ 1,292 ​ 1,292 ​ 50 ​ ​ 646 ​ 54 ​ 54 ​ Total $ 4,509 $ 4,509 $ 52 ​ $ 3,639 $ 124 $ 124 ​ ​ The following tables present loans individually evaluated for impairment by class of loans for the three months ended June 30, 2020 and June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ending June 30, 2020 ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ (in thousands): Investment Recognized Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 47 ​ $ 1 ​ $ 1 ​ Real estate construction ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 447 ​ ​ 6 ​ ​ 6 ​ Agricultural ​ ​ 2,384 ​ ​ 21 ​ ​ 21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 25 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm and non-residential ​ ​ 900 ​ ​ — ​ ​ — ​ Total ​ $ 5,469 ​ $ 28 ​ $ 28 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ending June 30, 2019 ​ ​ ​ Average ​ Interest ​ Cash Basis ​ ​ ​ Recorded ​ Income ​ Interest ​ ​ Investment Recognized Recognized ​ With no related allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real-estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 222 ​ ​ 3 ​ ​ 3 ​ Multi-family residential ​ ​ 1,622 ​ ​ 10 ​ ​ 10 ​ Non-farm and non-residential ​ ​ 138 ​ ​ — ​ ​ — ​ Agricultural 527 6 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance recorded: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 1,127 ​ $ 3 ​ $ 3 ​ Total $ 4,010 $ 22 $ 22 ​
Schedule of recorded investment in nonaccrual, loans past due over 89 days still on accrual and accruing troubled debt restructurings by class of loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Past Due ​ ​ ​ ​ ​ ​ Over 89 Days ​ ​ ​ As of June 30, 2020 ​ ​ ​ ​ Still ​ Troubled Debt (in thousands) ​ Nonaccrual ​ Accruing ​ Restructurings Commercial ​ $ — ​ $ 48 ​ $ — ​ Real estate construction ​ ​ 374 ​ ​ — ​ ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 903 ​ — ​ — ​ Multi-family residential ​ ​ 1,292 ​ ​ — ​ ​ — ​ Non-farm & non-residential ​ 1,951 ​ 14 ​ — ​ Agricultural ​ — ​ 200 ​ — ​ Consumer ​ 38 ​ 2 ​ — ​ Total ​ $ 4,558 ​ $ 264 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Past Due ​ ​ ​ ​ ​ ​ ​ Over 89 Days ​ ​ ​ ​ As of December 31, 2019 ​ ​ ​ ​ Still ​ Troubled Debt ​ (in thousands) ​ Nonaccrual ​ Accruing ​ Restructurings ​ Real estate construction ​ $ 374 ​ $ — ​ $ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 845 ​ 47 ​ — ​ Multi-family residential ​ — ​ ​ 1,292 ​ — ​ Non-farm & non-residential ​ 1,799 ​ 121 ​ — ​ Agricultural ​ — ​ 7 ​ — ​ Consumer ​ 63 ​ 32 ​ — ​ Total ​ $ 3,081 ​ $ 1,499 ​ $ — ​ ​
Schedule of aging of the recorded investment in past due and non-accrual loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30–59 60–89 Greater than ​ Total ​ As of June 30, 2020 ​ Days ​ Days ​ 89 Days ​ ​ ​ Past Due & ​ Loans Not (in thousands) ​ Past Due ​ Past Due ​ Past Due ​ Non-accrual ​ Non-accrual ​ Past Due Commercial ​ $ 301 ​ $ — ​ $ 48 ​ $ — ​ $ 349 ​ $ 131,750 ​ Real estate construction ​ — ​ — ​ — ​ 374 ​ 374 ​ 24,762 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 344 ​ 422 ​ — ​ 903 ​ 1,669 ​ 293,657 ​ Multi-family residential ​ — ​ — ​ — ​ 1,292 ​ 1,292 ​ 47,916 ​ Non-farm & non-residential ​ 406 ​ 319 ​ 14 ​ 1,951 ​ 2,690 ​ 223,777 ​ Agricultural ​ 412 ​ — ​ 200 ​ — ​ 612 ​ 56,916 ​ Consumer ​ 69 ​ 14 ​ 2 ​ 38 ​ 123 ​ 22,384 ​ Other ​ — ​ — ​ — ​ — ​ — ​ 196 ​ Total ​ $ 1,532 ​ $ 755 ​ $ 264 ​ $ 4,558 ​ $ 7,109 ​ $ 801,358 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30–59 60–89 Greater than ​ Total ​ As of December 31, 2019 ​ Days ​ Days ​ 89 Days ​ ​ ​ Past Due & ​ Loans Not (in thousands) ​ Past Due ​ Past Due ​ Past Due ​ Non-accrual ​ Non-accrual ​ Past Due Commercial ​ $ 326 ​ $ 25 ​ $ — ​ $ — ​ $ 351 ​ $ 86,201 ​ Real estate construction ​ — ​ — ​ — ​ 374 ​ 374 ​ 31,845 ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 2,734 ​ 274 ​ 47 ​ 845 ​ 3,900 ​ 287,519 ​ Multi-family residential ​ — ​ — ​ 1,292 ​ — ​ 1,292 ​ 47,330 ​ Non-farm & non-residential ​ 302 ​ 19 ​ 121 ​ 1,799 ​ 2,241 ​ 202,667 ​ Agricultural ​ 704 ​ — ​ 7 ​ — ​ 711 ​ 56,455 ​ Consumer ​ 158 ​ 17 ​ 32 ​ 63 ​ 270 ​ 22,852 ​ Other ​ — ​ — ​ — ​ — ​ — ​ 305 ​ Total ​ $ 4,224 ​ $ 335 ​ $ 1,499 ​ $ 3,081 ​ $ 9,139 ​ $ 735,174 ​
Schedule of risk category of loans by class of loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 ​ Special ​ ​ (in thousands) ​ Pass ​ Mention ​ Substandard ​ Doubtful Commercial ​ $ 129,902 ​ $ 2,116 ​ $ 81 ​ $ — ​ Real estate construction ​ 24,743 ​ — ​ 393 ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 285,940 ​ 3,392 ​ 5,994 ​ — ​ Multi-family residential ​ 46,985 ​ 931 ​ 1,292 ​ — ​ Non-farm & non-residential ​ 215,067 ​ 9,431 ​ 170 ​ 1,799 ​ Agricultural ​ 50,485 ​ 4,649 ​ 2,394 ​ — ​ Total ​ $ 753,122 ​ $ 20,519 ​ $ 10,324 ​ $ 1,799 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ Special ​ ​ (in thousands) ​ Pass ​ Mention ​ Substandard ​ Doubtful Commercial ​ $ 83,515 ​ $ 2,785 ​ $ 252 ​ $ — ​ Real estate construction ​ 30,462 ​ 1,363 ​ 394 ​ — ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 283,048 ​ 3,435 ​ 4,932 ​ 4 ​ Multi-family residential ​ 43,193 ​ 4,137 ​ 1,292 ​ — ​ Non-farm & non-residential ​ 195,800 ​ 7,169 ​ 1,939 ​ — ​ Agricultural ​ 51,352 ​ 4,459 ​ 1,355 ​ — ​ Total ​ $ 687,370 ​ $ 23,348 ​ $ 10,164 ​ $ 4 ​ ​

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2020
EARNINGS PER SHARE
Schedule of factors used in the earnings per share computation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2020 2019 ​ ​ (in thousands) Basic and Diluted Earnings Per Share ​ ​ ​ ​ ​ ​ Net Income $ 4,824 $ 6,048 Weighted average common shares outstanding ​ 5,890 ​ 5,937 Basic and diluted earnings per share $ 0.81 $ 1.01 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, ​ 2020 2019 ​ ​ (in thousands) Basic and Diluted Earnings Per Share ​ ​ ​ ​ ​ ​ Net Income $ 3,073 $ 3,237 Weighted average common shares outstanding ​ 5,892 ​ 5,937 Basic and diluted earnings per share $ 0.51 $ 0.54 ​ ​ ​ ​ ​ ​ ​ ​

STOCK COMPENSATION (Tables)

STOCK COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2020
2005 Restricted Stock Grant Plan
Stock Based Compensation
Summary of changes in nonvested shares of restricted stock	A summary of changes in the Company’s nonvested shares for the year follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ Grant-Date ​ ​ Shares ​ ​ Fair Value Nonvested at January 1, 2020 1,580 ​ $ 13.67 Vested (1,580) ​ 13.67 Nonvested at June 30, 2020 — ​ $ —
2009 Stock Award Plan
Stock Based Compensation
Summary of changes in nonvested shares of restricted stock	A summary of changes in the Company’s nonvested shares for the year follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant-Date Nonvested Shares ​ Shares ​ ​ Fair Value Nonvested at January 1, 2020 38,482 ​ $ 21.46 Vested (12,855) ​ 20.98 Forfeited (300) ​ 21.37 Nonvested at June 30, 2020 25,327 ​ $ 21.70
2019 Stock Award Plan
Stock Based Compensation
Summary of changes in nonvested shares of restricted stock	​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant-Date Nonvested Shares ​ Shares ​ Fair Value Nonvested at January 1, 2020 — ​ $ — Granted 30,030 ​ ​ 23.11 Forfeited ​ (180) ​ ​ (23.11) Nonvested at June 30, 2020 29,850 ​ $ 23.11

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
FAIR VALUE MEASUREMENTS
Schedule of assets measured at fair value on a recurring basis	​ Fair Value Measurements at June 30, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices ​ ​ ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs Description ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Financial Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. treasury notes ​ $ 9,294 ​ $ — ​ $ 9,294 ​ $ — ​ U. S. government agencies ​ ​ 15,826 ​ ​ — ​ ​ 15,826 ​ ​ — ​ States and political subdivisions ​ 48,805 ​ — ​ 48,805 ​ — ​ Mortgage-backed - residential ​ 99,934 ​ — ​ 99,934 ​ — ​ Mortgage-backed-commercial ​ ​ 43,971 ​ ​ — ​ ​ 43,971 ​ ​ — ​ Asset-backed ​ ​ 33,756 ​ ​ — ​ ​ 33,756 ​ ​ — ​ Derivatives ​ ​ 473 ​ ​ — ​ ​ 473 ​ ​ — ​ Equity Securities ​ ​ 298 ​ ​ 298 ​ ​ — ​ ​ — ​ Total ​ $ 252,357 ​ $ 298 ​ $ 252,059 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ $ 2,844 ​ $ — ​ $ 2,844 ​ $ — ​ ​ Fair Value Measurements at December 31, 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs Description ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) U.S. treasury notes ​ $ 9,168 ​ $ — ​ $ 9,168 ​ $ — ​ U. S. government agencies ​ ​ 23,735 ​ ​ — ​ ​ 23,735 ​ ​ — ​ States and political subdivisions ​ 32,589 ​ — ​ 32,589 ​ — ​ Mortgage-backed - residential ​ 113,991 ​ — ​ 113,991 ​ — ​ Mortgage-backed - commercial ​ ​ 50,351 ​ ​ — ​ ​ 50,351 ​ ​ — ​ Asset-backed ​ ​ 35,496 ​ ​ — ​ ​ 35,496 ​ ​ — ​ Derivatives ​ ​ 94 ​ ​ ​ ​ ​ 94 ​ ​ ​ ​ Equity Securities ​ 292 ​ 292 ​ — ​ — ​ Total ​ $ 265,716 ​ $ 292 ​ $ 265,424 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ $ 164 ​ $ — ​ $ 164 ​ $ — ​
Schedule of assets measured at fair value on a non-recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at June 30, 2020 Using : ​ ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs (In thousands) ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Description ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ $ 1,217 $ — $ — $ ​ 1,217 ​ Non-farm & non-residential ​ ​ 899 ​ — ​ — ​ ​ 899 ​ Other real estate owned, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 73 ​ — ​ — ​ ​ 73 ​ Commercial ​ ​ 246 ​ — ​ — ​ 246 ​ Agricultural ​ ​ 233 ​ — ​ — ​ ​ 233 ​ Mortgage servicing rights ​ ​ 1,335 ​ — ​ — ​ ​ 1,335 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2019 Using : ​ Quoted Prices ​ ​ ​ ​ ​ In Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Markets for ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Assets ​ Inputs ​ Inputs (In thousands) ​ Value ​ (Level 1) ​ (Level 2) ​ (Level 3) Description ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 200 $ — $ — ​ $ 200 ​ Multi-family residential ​ ​ 1,242 ​ — ​ — ​ ​ 1,242 ​ Other real estate owned, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 40 ​ — ​ — ​ ​ 40 ​ Commercial ​ ​ 246 ​ — ​ — ​ ​ 246 ​ Agriculturual ​ ​ 233 ​ — ​ — ​ ​ 233 ​ Mortgage servicing rights ​ 1,107 — — ​ 1,107 ​
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range ​ June 30, 2020 Fair Valuation Unobservable (Weighted ​ (In thousands) ​ Value ​ Technique(s) ​ Input(s) ​ Average) ​ Impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential $ 1,217 income approach capitalization rate 7% - 7% (7)% ​ Non-farm Non-residential ​ 899 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (50)% -(50)% (50)% ​ Other real estate owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 73 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (23)% - (28)% (30)% ​ Commercial ​ 246 ​ income approach ​ capitalization rate ​ (6)% - 8% (62)% ​ Agricultural ​ 233 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (0)% - 26% (14)% ​ Mortgage servicing rights ​ 1,335 ​ discounted cash flow ​ constant prepayment rates ​ (12)% - (24)% (18)% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range December 31, 2019 ​ Fair ​ Valuation ​ Unobservable ​ (Weighted (In thousands) ​ Value ​ Technique(s) ​ Input(s) ​ Average) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential $ 200 sales comparison adjustment for differences between the comparable sales (1)% - 21% (1)% Multi-family residential ​ 1,242 ​ income approach ​ capitalization rate ​ 7% - 7% (7)% Other real estate owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ 40 ​ sales comparison ​ adjustment for differences between the comparable sales ​ (4%) - 11% (29%) Commercial ​ 246 ​ sales comparison ​ capitalization rate ​ (6%) - 8% (62)% Agriculturual ​ 233 ​ sales comparison ​ adjustment for differences between the comparable sales ​ 0% - 26% (14)% Mortgage servicing rights ​ 1,107 ​ discounted cash flow ​ constant prepayment rates ​ 9% - 20% (12)%
Schedule of carrying amounts and estimated fair values of financial instruments	June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Value ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 104,273 ​ $ 104,273 ​ $ — ​ $ — ​ $ 104,273 ​ Interest bearing time deposits ​ ​ 2,274 ​ ​ 2,274 ​ ​ — ​ ​ — ​ ​ 2,274 ​ Securities available for sale ​ 251,586 ​ — ​ 251,586 ​ — ​ 251,586 ​ Loans held for sale ​ 6,178 ​ — ​ 6,338 ​ — ​ 6,338 ​ Net Loans ​ 798,078 ​ — ​ — ​ 792,183 ​ 792,183 ​ Federal Home Loan Bank stock ​ 7,072 ​ — ​ — ​ — ​ N/A ​ Interest receivable ​ 4,986 ​ — ​ 960 ​ 4,026 ​ 4,986 ​ Derivatives ​ ​ 473 ​ ​ — ​ ​ 473 ​ ​ — ​ ​ 473 ​ Equity securities ​ ​ 298 ​ ​ 298 ​ ​ — ​ ​ — ​ ​ 298 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deposits ​ $ 944,556 ​ $ 738,775 ​ $ 207,401 ​ $ — ​ $ 946,176 ​ Repurchase agreements ​ 4,308 ​ — ​ 4,315 ​ — ​ 4,315 ​ Short-term Federal Home Loan Bank advances ​ ​ 50,500 ​ ​ — ​ ​ 50,500 ​ ​ — ​ ​ 50,500 ​ Long-term Federal Home Loan Bank advances ​ 94,905 ​ — ​ 97,922 ​ — ​ 97,922 ​ Subordinated debentures ​ 7,217 ​ — ​ — ​ 6,785 ​ 6,785 ​ Interest payable ​ 1,251 ​ — ​ 1,239 ​ 12 ​ 1,251 ​ Derivatives ​ ​ 2,844 ​ ​ — ​ ​ 2,844 ​ ​ — ​ ​ 2,844 ​ ​ December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Value ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 22,182 ​ $ 22,182 ​ $ — ​ $ — ​ $ 22,182 ​ Interest bearing time deposits ​ ​ 2,375 ​ ​ 2,375 ​ ​ — ​ ​ — ​ ​ 2,375 ​ Securities available for sale ​ 265,330 ​ — ​ 265,330 ​ — ​ 265,330 ​ Loans held for sale ​ 2,144 ​ — ​ 2,171 ​ — ​ 2,171 ​ Net Loans ​ 735,853 ​ — ​ — ​ 735,060 ​ 735,060 ​ Federal Home Loan Bank stock ​ 7,034 ​ — ​ — ​ — ​ N/A ​ Interest receivable ​ 4,166 ​ — ​ 1,035 ​ 3,131 ​ 4,166 ​ Derivatives ​ ​ 94 ​ ​ — ​ ​ 94 ​ ​ — ​ ​ 94 ​ Equity securities ​ ​ 292 ​ ​ 292 ​ ​ — ​ ​ — ​ ​ 292 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deposits ​ $ 842,653 ​ $ 630,948 ​ $ 210,892 ​ $ — ​ $ 841,840 ​ Repurchase agreements ​ 5,994 ​ — ​ 5,993 ​ — ​ 5,993 ​ Short-term Federal Home Loan Bank advances ​ 25,000 ​ — ​ 25,000 ​ — ​ 25,000 ​ Long-term Federal Home Loan Bank advances ​ 91,418 ​ — ​ 91,397 ​ — ​ 91,397 ​ Subordinated debentures ​ 7,217 ​ — ​ — ​ 7,213 ​ 7,213 ​ Interest payable ​ 1,170 ​ — ​ 1,156 ​ 14 ​ 1,170 ​ Derivatives ​ ​ 164 ​ ​ — ​ ​ 164 ​ ​ — ​ ​ 164 ​

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2020
LEASES
Schedule of balance sheet location	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of ​ ​ ​ ​ Financial Condition ​ ​ ​ ​ Location ​ ​ ​ 6/30/2020 ​ 12/31/2019 ​ ​ ​ ​ ​ ​ (in thousands) Operating Lease Right of Use Asset: ​ ​ ​ ​ ​ ​ ​ ​ Gross Carrying Amount ​ ​ ​ $ ​ 8,806 $ 8,857 Accumulated Amortization ​ ​ ​ ​ (919) (662) Net Book Value ​ Operating lease right of use asset ​ $ ​ 7,887 $ 8,195 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Lease Liabilities ​ ​ ​ ​ ​ ​ ​ ​ Right of use lease obligations ​ Operating lease liability ​ $ ​ 8,090 $ 8,350
Schedule of lease cost and other information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ 6/30/2020 ​ 6/30/2019 ​ ​ ​ ​ ​ ​ (in thousands) Lease Cost: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ ​ $ ​ 140 $ 111 Total lease cost ​ ​ ​ $ ​ 140 $ 111 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ $ ​ 102 $ 130 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ 6/30/2020 ​ 6/30/2019 ​ ​ ​ ​ ​ ​ (in thousands) Lease Cost: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ ​ $ ​ 158 $ 136 Total lease cost ​ ​ ​ $ ​ 158 $ 136 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ $ ​ 131 $ 93
Schedule of future minimum payments under operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands ) Twelve months ended June 30, ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ ​ ​ $ ​ ​ ​ 520 2021 ​ ​ ​ ​ ​ ​ ​ 524 2022 ​ ​ ​ ​ ​ ​ ​ 529 2023 ​ ​ ​ ​ ​ ​ ​ 539 2024 ​ ​ ​ ​ ​ ​ ​ 525 Thereafter ​ ​ ​ ​ ​ ​ ​ 18,621 Total undiscounted lease payments ​ ​ ​ $ ​ ​ ​ 21,258 Amounts representing interest ​ ​ ​ ​ ​ ​ ​ (13,168) Lease liability ​ ​ ​ $ ​ ​ ​ 8,090

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	6 Months Ended
	Jun. 30, 2020
REVENUE FROM CONTRACTS WITH CUSTOMERS.
Schedule of noninterest income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ 6/30/2020 ​ 6/30/2019 6/30/2020 ​ 6/30/2019 Service charges ​ $ 990 ​ $ 1,397 $ 2,279 ​ $ 2,591 Trust department income ​ ​ 332 ​ 347 ​ 702 ​ 675 Brokerage income ​ ​ 95 ​ 135 ​ 222 ​ 271 Debit card interchange income ​ ​ 915 ​ 903 ​ 1,727 ​ 1,693 Total ​ ​ $ 2,332 ​ $ 2,782 ​ $ 4,930 ​ $ 5,230

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)payment	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Loans
Financing receivable approved modifications due to The Coronavirus Aid, Relief and Economic Security ("CARES") Act			$ 115,000
Period for which federal funds are sold generally			1 day
Minimum number of consecutive payments made on a timely basis before returning a loan to accrual status | payment			6
Activity in allowance for loan losses
Purchased Credit Impairment	$ 446		$ 446		$ 110
Mortgage Servicing Rights
Servicing fees	154	$ 134	299	$ 267
Amortization expense, including write-downs for fair value adjustments	$ 357	$ 103	$ 586	$ 163
Period of historical loss experience used to determine general components of allowance for loan losses			5 years
1-4 family residential
Loans
Number of days delinquent for discontinuation of interest income on loans			90 days
Consumer
Loans
Number of days delinquent for discontinuation of interest income on loans			120 days
Commercial
Loans
Maximum number of days past due for loans to be charged off			120 days
Maximum number of days past due for loans to be charged off due to considerations other than past due			90 days
Activity in allowance for loan losses
Outstanding balance over which loans are individually evaluated for impairment			$ 200

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT, TANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investments in Limited Partnerships
Investment	$ 3,600	$ 3,900	$ 3,600	$ 3,900
Amortization expense	$ 292	$ 159	$ 585	$ 318
Buildings and related components | Minimum
Bank Premises and Equipment
Useful lives			5 years
Buildings and related components | Maximum
Bank Premises and Equipment
Useful lives			40 years
Furniture, fixtures and equipment | Minimum
Bank Premises and Equipment
Useful lives			3 years
Furniture, fixtures and equipment | Maximum
Bank Premises and Equipment
Useful lives			10 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LEASES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating lease assets	$ 7,887	$ 8,195
Operating lease liability	$ 8,090	$ 8,350

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES, INTANGIBLE ASSETS AND SEGMENTS (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)segment$ / shares	Mar. 31, 2020$ / shares	Dec. 31, 2019$ / shares	Jun. 30, 2019$ / shares	Mar. 31, 2019$ / shares
Income Taxes
Tax benefit | $	$ 0
Stock Split
Common stock, par value (in dollars per share) | $ / shares	$ 0	$ 0	$ 0	$ 0	$ 0
Operating Segments
Number of reportable operating segments | segment	1
Minimum
Income Taxes
Useful life of core deposit intangible assets	10 years
Maximum
Income Taxes
Useful life of core deposit intangible assets	15 years

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt and Equity Securities, FV-NI [Line Items]
Gross Unrealized Losses	$ (1,362)	$ (723)
Total, Amortized cost	248,334	264,234
Total, unrealized gains	4,614	1,819
Total, Fair value	251,586	265,330
U.S. treasury notes
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	9,120	9,165
Gross Unrealized Gains	174	3
Securities available for sale	9,294	9,168
U.S. government agencies
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	15,625	23,716
Gross Unrealized Gains	216	60
Gross Unrealized Losses	(15)	(41)
Securities available for sale	15,826	23,735
States and political subdivisions
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	47,681	31,950
Gross Unrealized Gains	1,152	661
Gross Unrealized Losses	(28)	(22)
Securities available for sale	48,805	32,589
Mortgage-backed - residential
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	97,870	113,629
Gross Unrealized Gains	2,096	634
Gross Unrealized Losses	(32)	(272)
Securities available for sale	99,934	113,991
Mortgage-backed - commercial
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	43,043	50,092
Gross Unrealized Gains	943	406
Gross Unrealized Losses	(15)	(147)
Securities available for sale	43,971	50,351
Asset-backed
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	34,995	35,682
Gross Unrealized Gains	33	55
Gross Unrealized Losses	(1,272)	(241)
Securities available for sale	$ 33,756	$ 35,496

SECURITIES - AMORTIZED COST AND

SECURITIES - AMORTIZED COST AND FAIR VALUE BY CONTRACTUAL MATURITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 8,033		$ 8,033
Due after one year through five years	17,898		17,898
Due after five years through ten years	19,364		19,364
Due after ten years	27,131		27,131
Securities due at a single maturity date	72,426		72,426
Total, Amortized cost	248,334		248,334		$ 264,234
Fair Value
Due in one year or less	8,086		8,086
Due after one year through five years	18,235		18,235
Due after five years through ten years	19,899		19,899
Due after ten years	27,705		27,705
Securities due at a single maturity date	73,925		73,925
Total, Fair value	251,586		251,586		265,330
Sales of securities
Proceeds from sales of securities available for sale	15,000	$ 13,400	17,096	$ 29,734
Gain (loss) on sale of available for sale securities, net	232	20	344	114
Gross gains realized on sales of securities	272	45	390	154
Gross losses realized on sales of securities	40	25	46	40
Tax provision related to realized net gains or losses	49	$ 4	72	$ 24
Mortgage-backed - residential
Amortized Cost
Available-for-sale debt securities, Amortized Cost	97,870		97,870		113,629
Fair Value
Available-for-sale debt securities, fair value	99,934		99,934		113,991
Mortgage-backed - commercial
Amortized Cost
Available-for-sale debt securities, Amortized Cost	43,043		43,043		50,092
Fair Value
Available-for-sale debt securities, fair value	43,971		43,971		50,351
Asset-backed
Amortized Cost
Available-for-sale debt securities, Amortized Cost	34,995		34,995		35,682
Fair Value
Available-for-sale debt securities, fair value	$ 33,756		$ 33,756		$ 35,496

SECURITIES - UNREALIZED LOSSES

SECURITIES - UNREALIZED LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 40,451	$ 67,294
Less than 12 Months, Unrealized Loss	(931)	(325)
12 Months or More, Fair Value	12,650	37,765
12 Months or More, Unrealized Loss	(431)	(398)
Total, Fair Value	53,101	105,059
Total, Unrealized Loss	(1,362)	(723)
U.S. government agencies
Securities with unrealized losses
Less than 12 Months, Fair Value		6,171
Less than 12 Months, Unrealized Loss		(18)
12 Months or More, Fair Value	870	4,396
12 Months or More, Unrealized Loss	(15)	(23)
Total, Fair Value	870	10,567
Total, Unrealized Loss	(15)	(41)
States and political subdivisions
Securities with unrealized losses
Less than 12 Months, Fair Value	4,704	859
Less than 12 Months, Unrealized Loss	(28)	(3)
12 Months or More, Fair Value		1,199
12 Months or More, Unrealized Loss		(19)
Total, Fair Value	4,704	2,058
Total, Unrealized Loss	(28)	(22)
Mortgage-backed - residential
Securities with unrealized losses
Less than 12 Months, Fair Value	11,612	32,718
Less than 12 Months, Unrealized Loss	(32)	(129)
12 Months or More, Fair Value		14,583
12 Months or More, Unrealized Loss		(143)
Total, Fair Value	11,612	47,301
Total, Unrealized Loss	(32)	(272)
Mortgage-backed - commercial
Securities with unrealized losses
Less than 12 Months, Fair Value		5,760
Less than 12 Months, Unrealized Loss		(25)
12 Months or More, Fair Value	5,134	10,625
12 Months or More, Unrealized Loss	(15)	(122)
Total, Fair Value	5,134	16,385
Total, Unrealized Loss	(15)	(147)
Asset-backed
Securities with unrealized losses
Less than 12 Months, Fair Value	24,135	21,786
Less than 12 Months, Unrealized Loss	(871)	(150)
12 Months or More, Fair Value	6,646	6,962
12 Months or More, Unrealized Loss	(401)	(91)
Total, Fair Value	30,781	28,748
Total, Unrealized Loss	$ (1,272)	$ (241)

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans
Loans	$ 808,467	$ 744,313
Commercial
Loans
Loans	132,099	86,552
Loan outstanding under PPP	56,800
Real estate Construction
Loans
Loans	25,136	32,219
1-4 family residential
Loans
Loans	295,326	291,419
Multi-family residential
Loans
Loans	49,208	48,622
Non-farm & non-residential
Loans
Loans	226,467	204,908
Agricultural
Loans
Loans	57,528	57,166
Consumer
Loans
Loans	22,507	23,122
Other
Loans
Loans	196	305
Commercial Portfolio Segment [Member] | Commercial
Loans
Loans	132,099	86,552
Commercial Real Estate Portfolio Segment [Member] | Real estate Construction
Loans
Loans	25,136	32,219
Real Estate Segment [Member] | 1-4 family residential
Loans
Loans	295,326	291,419
Real Estate Segment [Member] | Multi-family residential
Loans
Loans	49,208	48,622
Real Estate Segment [Member] | Non-farm & non-residential
Loans
Loans	226,467	204,908
Agricultural Financing Receivables [Member] | Agricultural
Loans
Loans	57,528	57,166
Consumer Portfolio Segment [Member] | Consumer
Loans
Loans	22,507	23,122
Other Financing Receivables [Member] | Other
Loans
Loans	$ 196	$ 305

LOANS - ACTIVITY IN ALLOWANCE (

LOANS - ACTIVITY IN ALLOWANCE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Activity in allowance for loan losses
Beginning Balance	$ 9,916	$ 7,882	$ 8,460	$ 8,127
Charge-offs	(266)	(283)	(673)	(892)
Recoveries	239	152	477	391
Provision	500	325	2,125	450
Ending Balance	10,389	8,076	10,389	8,076
Commercial
Activity in allowance for loan losses
Beginning Balance			920
Ending Balance	931		931
Real estate Construction
Activity in allowance for loan losses
Beginning Balance			551
Ending Balance	466		466
1-4 family residential
Activity in allowance for loan losses
Beginning Balance			2,901
Ending Balance	3,351		3,351
Multi-family residential
Activity in allowance for loan losses
Beginning Balance			807
Ending Balance	914		914
Non-farm & non-residential
Activity in allowance for loan losses
Beginning Balance			1,643
Ending Balance	3,040		3,040
Agricultural
Activity in allowance for loan losses
Beginning Balance			389
Ending Balance	484		484
Consumer
Activity in allowance for loan losses
Beginning Balance			506
Ending Balance	530		530
Other
Activity in allowance for loan losses
Beginning Balance			43
Ending Balance	30		30
Unallocated
Activity in allowance for loan losses
Beginning Balance			700
Ending Balance	643		643
Commercial Portfolio Segment [Member] | Commercial
Activity in allowance for loan losses
Beginning Balance	1,003	943	920	1,159
Charge-offs			(25)	(191)
Recoveries	6	3	12	10
Provision	(78)	16	24	(16)
Ending Balance	931	962	931	962
Commercial Real Estate Portfolio Segment [Member] | Real estate Construction
Activity in allowance for loan losses
Beginning Balance	631	351	551	414
Provision	(165)	62	(85)	(1)
Ending Balance	466	413	466	413
Real Estate Segment [Member] | 1-4 family residential
Activity in allowance for loan losses
Beginning Balance	3,421	2,660	2,901	2,605
Charge-offs		(5)	(35)	(104)
Recoveries	3	4	18	12
Provision	(73)	107	467	253
Ending Balance	3,351	2,766	3,351	2,766
Real Estate Segment [Member] | Multi-family residential
Activity in allowance for loan losses
Beginning Balance	1,024	723	807	733
Provision	(110)	20	107	10
Ending Balance	914	743	914	743
Real Estate Segment [Member] | Non-farm & non-residential
Activity in allowance for loan losses
Beginning Balance	2,104	1,609	1,643	1,649
Charge-offs				(17)
Provision	936	(10)	1,397	(33)
Ending Balance	3,040	1,599	3,040	1,599
Agricultural Financing Receivables [Member] | Agricultural
Activity in allowance for loan losses
Beginning Balance	463	406	389	420
Recoveries	1	3	3	4
Provision	20	8	92	(7)
Ending Balance	484	417	484	417
Consumer Portfolio Segment [Member] | Consumer
Activity in allowance for loan losses
Beginning Balance	533	389	506	410
Charge-offs	(104)	(79)	(214)	(140)
Recoveries	16	3	25	17
Provision	85	79	213	105
Ending Balance	530	392	530	392
Other Financing Receivables [Member] | Other
Activity in allowance for loan losses
Beginning Balance	31	70	43	58
Charge-offs	(162)	(199)	(399)	(440)
Recoveries	213	139	419	348
Provision	(52)	94	(33)	138
Ending Balance	30	104	30	104
Unallocated | Unallocated
Activity in allowance for loan losses
Beginning Balance	706	731	700	679
Provision	(63)	(51)	(57)	1
Ending Balance	$ 643	$ 680	$ 643	$ 680

LOANS - ALLOWANCE FOR LOAN LOSS

LOANS - ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans
Accrued interest receivable	$ 4,000		$ 2,800
Allowance for Loan Losses:
Individually Evaluated for Impairment	1,025		52
Collectively Evaluated for Impairment	9,364		8,408
Total	10,389	$ 9,916	8,460	$ 8,076	$ 7,882	$ 8,127
Loans:
Individually Evaluated for Impairment	7,722		4,509
Collectively Evaluated for Impairment	800,745		739,804
Total	808,467		744,313
Commercial
Allowance for Loan Losses:
Individually Evaluated for Impairment	50
Collectively Evaluated for Impairment	881		920
Total	931		920
Loans:
Individually Evaluated for Impairment	144
Collectively Evaluated for Impairment	131,955		86,552
Total	132,099		86,552
Real estate Construction
Allowance for Loan Losses:
Collectively Evaluated for Impairment	466		551
Total	466		551
Loans:
Individually Evaluated for Impairment	374		374
Collectively Evaluated for Impairment	24,762		31,845
Total	25,136		32,219
1-4 family residential
Allowance for Loan Losses:
Individually Evaluated for Impairment			2
Collectively Evaluated for Impairment	3,351		2,899
Total	3,351		2,901
Loans:
Individually Evaluated for Impairment	533		202
Collectively Evaluated for Impairment	294,793		291,217
Total	295,326		291,419
Multi-family residential
Allowance for Loan Losses:
Individually Evaluated for Impairment	75		50
Collectively Evaluated for Impairment	839		757
Total	914		807
Loans:
Individually Evaluated for Impairment	1,292		1,292
Collectively Evaluated for Impairment	47,916		47,330
Total	49,208		48,622
Non-farm & non-residential
Allowance for Loan Losses:
Individually Evaluated for Impairment	900
Collectively Evaluated for Impairment	2,140		1,643
Total	3,040		1,643
Loans:
Individually Evaluated for Impairment	1,799		1,799
Collectively Evaluated for Impairment	224,668		203,109
Total	226,467		204,908
Agricultural
Allowance for Loan Losses:
Collectively Evaluated for Impairment	484		389
Total	484		389
Loans:
Individually Evaluated for Impairment	3,580		842
Collectively Evaluated for Impairment	53,948		56,324
Total	57,528		57,166
Consumer
Allowance for Loan Losses:
Collectively Evaluated for Impairment	530		506
Total	530		506
Loans:
Collectively Evaluated for Impairment	22,507		23,122
Total	22,507		23,122
Other
Allowance for Loan Losses:
Collectively Evaluated for Impairment	30		43
Total	30		43
Loans:
Collectively Evaluated for Impairment	196		305
Total	196		305
Unallocated
Allowance for Loan Losses:
Collectively Evaluated for Impairment	643		700
Total	643		700
Commercial Portfolio Segment [Member] | Commercial
Allowance for Loan Losses:
Total	931	1,003	920	962	943	1,159
Loans:
Total	132,099		86,552
Commercial Real Estate Portfolio Segment [Member] | Real estate Construction
Allowance for Loan Losses:
Total	466	631	551	413	351	414
Loans:
Total	25,136		32,219
Real Estate Segment [Member] | 1-4 family residential
Allowance for Loan Losses:
Total	3,351	3,421	2,901	2,766	2,660	2,605
Loans:
Total	295,326		291,419
Real Estate Segment [Member] | Multi-family residential
Allowance for Loan Losses:
Total	914	1,024	807	743	723	733
Loans:
Total	49,208		48,622
Real Estate Segment [Member] | Non-farm & non-residential
Allowance for Loan Losses:
Total	3,040	2,104	1,643	1,599	1,609	1,649
Loans:
Total	226,467		204,908
Agricultural Financing Receivables [Member] | Agricultural
Allowance for Loan Losses:
Total	484	463	389	417	406	420
Loans:
Total	57,528		57,166
Consumer Portfolio Segment [Member] | Consumer
Allowance for Loan Losses:
Total	530	533	506	392	389	410
Loans:
Total	22,507		23,122
Other Financing Receivables [Member] | Other
Allowance for Loan Losses:
Total	30	31	43	104	70	58
Loans:
Total	196		305
Unallocated | Unallocated
Allowance for Loan Losses:
Total	$ 643	$ 706	$ 700	$ 680	$ 731	$ 679

LOANS - INDIVIDUALLY EVALUATED

LOANS - INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Unpaid Principal Balance
Total	$ 7,722		$ 7,722		$ 4,509
Recorded Investment
Total	7,722		7,722		4,509
Allowance for Loan Losses Allocated.	1,025		1,025		52
Average Recorded Investment
Total	5,469	$ 4,010	5,217	$ 4,089	3,639
Interest Income Recognized
Total	28	22	44	86	124
Cash Basis Interest Recognized
Total	28	22	44	86	124
Commercial
Unpaid Principal Balance
With no related allowance recorded	94		94
With an allowance recorded	50		50
Recorded Investment
With no related allowance recorded	94		94
With an allowance recorded	50		50
Allowance for Loan Losses Allocated.	50		50
Average Recorded Investment
With no related allowance recorded	47		47
With an allowance recorded	25		25
Interest Income Recognized
With no related allowance recorded	1		1
Cash Basis Interest Recognized
With no related allowance recorded	1		1
Real estate Construction
Unpaid Principal Balance
With no related allowance recorded	374		374		374
Recorded Investment
With no related allowance recorded	374		374		374
Average Recorded Investment
With no related allowance recorded	374	374	374	374	374
1-4 family residential
Unpaid Principal Balance
With no related allowance recorded	533		533
With an allowance recorded	1,799		1,799		202
Recorded Investment
With no related allowance recorded	533		533
With an allowance recorded	1,799		1,799		202
Allowance for Loan Losses Allocated.	900		900		2
Average Recorded Investment
With no related allowance recorded	447	222	368	122
With an allowance recorded		1,127	900	1,001	603
Interest Income Recognized
With no related allowance recorded	6	3	12	7
With an allowance recorded		3		10	35
Cash Basis Interest Recognized
With no related allowance recorded	6	3	12	7
With an allowance recorded		3		10	35
Multi-family residential
Unpaid Principal Balance
With an allowance recorded	1,292		1,292		1,292
Recorded Investment
With an allowance recorded	1,292		1,292		1,292
Allowance for Loan Losses Allocated.	75		75		50
Average Recorded Investment
With no related allowance recorded		1,622		1,633
With an allowance recorded	1,292		1,292		646
Interest Income Recognized
With no related allowance recorded		10		54
With an allowance recorded					54
Cash Basis Interest Recognized
With no related allowance recorded		10		54
With an allowance recorded					54
Non-farm & non-residential
Unpaid Principal Balance
With no related allowance recorded					1,799
Recorded Investment
With no related allowance recorded					1,799
Average Recorded Investment
With no related allowance recorded		138		114	1,013
With an allowance recorded	900
Interest Income Recognized
With no related allowance recorded				5	17
Cash Basis Interest Recognized
With no related allowance recorded				5	17
Agricultural
Unpaid Principal Balance
With no related allowance recorded	3,580		3,580		842
Recorded Investment
With no related allowance recorded	3,580		3,580		842
Average Recorded Investment
With no related allowance recorded	2,384	527	2,211	845	1,003
Interest Income Recognized
With no related allowance recorded	21	6	32	10	18
Cash Basis Interest Recognized
With no related allowance recorded	$ 21	$ 6	$ 32	$ 10	$ 18

LOANS - NONACCRUAL, LOANS PAST

LOANS - NONACCRUAL, LOANS PAST DUE OVER 89 DAYS STILL ACCRUING AND TDR (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loans
Nonaccrual	$ 4,558	$ 3,081
Loans Past Due Over 89 Days Still Accruing	$ 264	1,499
Percentage of nonaccrual loans secured by real estate	99.20%
Minimum period for which principal or interest is in default for loans to be considered as nonaccrual	90 days
Maximum period past due for loans to be considered as impaired	89 days
Commercial
Loans
Loans Past Due Over 89 Days Still Accruing	$ 48
Real estate Construction
Loans
Nonaccrual	374	374
1-4 family residential
Loans
Nonaccrual	903	845
Loans Past Due Over 89 Days Still Accruing		47
Multi-family residential
Loans
Nonaccrual	1,292
Loans Past Due Over 89 Days Still Accruing		1,292
Non-farm & non-residential
Loans
Nonaccrual	1,951	1,799
Loans Past Due Over 89 Days Still Accruing	14	121
Agricultural
Loans
Loans Past Due Over 89 Days Still Accruing	200	7
Consumer
Loans
Nonaccrual	38	63
Loans Past Due Over 89 Days Still Accruing	$ 2	$ 32

LOANS - AGING OF RECORDED INVES

LOANS - AGING OF RECORDED INVESTMENT IN PAST DUE AND NON-ACCRUAL LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	$ 264	$ 1,499
Non-accrual	4,558	3,081
Total Past Due and Non-accrual	7,109	9,139
Loans Not Past Due	801,358	735,174
30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	1,532	4,224
60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	755	335
Commercial
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	48
Total Past Due and Non-accrual	349	351
Loans Not Past Due	131,750	86,201
Commercial | 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	301	326
Commercial | 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due		25
Real estate Construction
Aging of recorded investment in past due and non-accrual loans
Non-accrual	374	374
Total Past Due and Non-accrual	374	374
Loans Not Past Due	24,762	31,845
1-4 family residential
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due		47
Non-accrual	903	845
Total Past Due and Non-accrual	1,669	3,900
Loans Not Past Due	293,657	287,519
1-4 family residential | 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	344	2,734
1-4 family residential | 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	422	274
Multi-family residential
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due		1,292
Non-accrual	1,292
Total Past Due and Non-accrual	1,292	1,292
Loans Not Past Due	47,916	47,330
Non-farm & non-residential
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	14	121
Non-accrual	1,951	1,799
Total Past Due and Non-accrual	2,690	2,241
Loans Not Past Due	223,777	202,667
Non-farm & non-residential | 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	406	302
Non-farm & non-residential | 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	319	19
Agricultural
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	200	7
Total Past Due and Non-accrual	612	711
Loans Not Past Due	56,916	56,455
Agricultural | 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	412	704
Consumer
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	2	32
Non-accrual	38	63
Total Past Due and Non-accrual	123	270
Loans Not Past Due	22,384	22,852
Consumer | 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	69	158
Consumer | 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	14	17
Other
Aging of recorded investment in past due and non-accrual loans
Loans Not Past Due	$ 196	$ 305

LOANS - TROUBLED DEBT RESTRUCTU

LOANS - TROUBLED DEBT RESTRUCTURINGS (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)loan	Dec. 31, 2019loan
LOANS
Number of loans that met the definition of troubled debt restructurings | loan	0	0
Financing receivable approved modifications on outstanding loan balances due to The Coronavirus Aid, Relief and Economic Security ("CARES") Act | $	$ 115

LOANS - RISK CATEGORY OF LOANS

LOANS - RISK CATEGORY OF LOANS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Credit Quality Indicators
Loans	$ 808,467	$ 744,313
Maximum outstanding balance of non-consumer loans evaluated similar to consumer loans	200
Pass
Credit Quality Indicators
Loans	753,122	687,370
Special Mention
Credit Quality Indicators
Loans	20,519	23,348
Substandard
Credit Quality Indicators
Loans	10,324	10,164
Doubtful
Credit Quality Indicators
Loans	1,799	4
Commercial
Credit Quality Indicators
Outstanding balance over which loans are individually evaluated for impairment	200
Loans	132,099	86,552
Commercial | Pass
Credit Quality Indicators
Loans	129,902	83,515
Commercial | Special Mention
Credit Quality Indicators
Loans	2,116	2,785
Commercial | Substandard
Credit Quality Indicators
Loans	81	252
Real estate Construction
Credit Quality Indicators
Loans	25,136	32,219
Real estate Construction | Pass
Credit Quality Indicators
Loans	24,743	30,462
Real estate Construction | Special Mention
Credit Quality Indicators
Loans		1,363
Real estate Construction | Substandard
Credit Quality Indicators
Loans	393	394
1-4 family residential
Credit Quality Indicators
Loans	295,326	291,419
1-4 family residential | Pass
Credit Quality Indicators
Loans	285,940	283,048
1-4 family residential | Special Mention
Credit Quality Indicators
Loans	3,392	3,435
1-4 family residential | Substandard
Credit Quality Indicators
Loans	5,994	4,932
1-4 family residential | Doubtful
Credit Quality Indicators
Loans		4
Multi-family residential
Credit Quality Indicators
Loans	49,208	48,622
Multi-family residential | Pass
Credit Quality Indicators
Loans	46,985	43,193
Multi-family residential | Special Mention
Credit Quality Indicators
Loans	931	4,137
Multi-family residential | Substandard
Credit Quality Indicators
Loans	1,292	1,292
Non-farm & non-residential
Credit Quality Indicators
Loans	226,467	204,908
Non-farm & non-residential | Pass
Credit Quality Indicators
Loans	215,067	195,800
Non-farm & non-residential | Special Mention
Credit Quality Indicators
Loans	9,431	7,169
Non-farm & non-residential | Substandard
Credit Quality Indicators
Loans	170	1,939
Non-farm & non-residential | Doubtful
Credit Quality Indicators
Loans	1,799
Agricultural
Credit Quality Indicators
Loans	57,528	57,166
Agricultural | Pass
Credit Quality Indicators
Loans	50,485	51,352
Agricultural | Special Mention
Credit Quality Indicators
Loans	4,649	4,459
Agricultural | Substandard
Credit Quality Indicators
Loans	2,394	1,355
Consumer
Credit Quality Indicators
Loans	22,507	23,122
Consumer | Non-performing
Credit Quality Indicators
Loans	$ 40	$ 95
Minimum period past due for loans to be considered as non-performing	89 days

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic and Diluted Earnings Per Share
Net income	$ 3,073	$ 1,751	$ 3,237	$ 2,811	$ 4,824	$ 6,048
Weighted average common shares outstanding	5,892		5,937		5,890	5,937
Basic and diluted earnings per share	$ 0.51		$ 0.54		$ 0.81	$ 1.01

STOCK COMPENSATION - NONVESTED

STOCK COMPENSATION - NONVESTED SHARES (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)plan$ / sharesshares	Jun. 30, 2019shares	Dec. 31, 2019$ / sharesshares
Stock Based Compensation
Number of share based compensation plans | plan	3
Shares
Granted (in shares)	30,030
Forfeited (in shares)	(180)
Weighted-Average Grant-Date
Granted | $ / shares	$ 23.11
Forfeited | $ / shares	$ 23.11
2005 Restricted Stock Grant Plan | Restricted stock
Stock Based Compensation
Number of shares authorized for issuance	100,000
Shares available for issuance	0
Shares
Nonvested at the beginning of the period (in shares)	1,580
Granted (in shares)	0		0
Vested (in shares)	(1,580)
Forfeited (in shares)	0	(12)
Nonvested at the end of the period (in shares)	0		1,580
Weighted-Average Grant-Date
Nonvested shares, balance at the beginning of the period | $ / shares	$ 13.67
Vested | $ / shares	$ (13.67)
Nonvested shares, balance at the end of the period | $ / shares			$ 13.67
Additional disclosures
Unrecognized compensation cost related to nonvested shares granted | $	$ 0
2009 Stock Award Plan
Stock Based Compensation
Number of shares authorized for issuance	300,000
Shares available for issuance	0
Shares
Nonvested at the beginning of the period (in shares)	38,482
Granted (in shares)	0	23,380
Vested (in shares)	(12,855)
Forfeited (in shares)	(300)	(108)
Nonvested at the end of the period (in shares)	25,327		38,482
Weighted-Average Grant-Date
Nonvested shares, balance at the beginning of the period | $ / shares	$ 21.46
Vested | $ / shares	20.98
Forfeited | $ / shares	(21.37)
Nonvested shares, balance at the end of the period | $ / shares	$ 21.70		$ 21.46
2019 Stock Award Plan
Stock Based Compensation
Number of shares authorized for issuance	300,000
Shares
Granted (in shares)	30,030	0
Forfeited (in shares)	(180)	0
Nonvested at the end of the period (in shares)	29,850
Weighted-Average Grant-Date
Nonvested shares, balance at the end of the period | $ / shares	$ 23.11

REPURCHASE AGREEMENTS (Details)

REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
REPURCHASE AGREEMENTS
Repurchase agreements	$ 4,308	$ 5,994
Average weighted remaining life	10 months 24 days
Carrying amount of agency-backed securities pledged to secure repurchase agreements	$ 11,700
Overnight obligations
REPURCHASE AGREEMENTS
Repurchase agreements	3,300
Maturity terms extending
REPURCHASE AGREEMENTS
Repurchase agreements	$ 1,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Financial Assets
Total, Fair value	$ 251,586		$ 251,586		$ 265,330
Financial Liabilities
Transfers from Level 1 to Level 2	0		0		0
Transfers from Level 2 to Level 1	0		0		0
Carrying Value
Financial Assets
Derivatives	473		473		94
Financial Liabilities
Derivatives	2,844		2,844		164
Significant Other Observable Inputs (Level 2)
Financial Assets
Derivatives	473		473		94
Financial Liabilities
Derivatives	2,844		2,844		164
Recurring | Carrying Value
Financial Assets
Asset-backed	33,756		33,756		35,496
Derivatives	473		473		94
Total, Fair value	252,357		252,357		265,716
Financial Liabilities
Derivatives	2,844		2,844		164
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial Assets
Total, Fair value	298		298		292
Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Asset-backed	33,756		33,756		35,496
Derivatives	473		473		94
Total, Fair value	252,059		252,059		265,424
Financial Liabilities
Derivatives	2,844		2,844		164
Impaired Loans
Fair value on instruments on recurring basis
Net adjustments for differences between the comparable sales and income data available	950	$ (11)	973	$ (193)
U.S. treasury notes | Recurring | Carrying Value
Financial Assets
Investments	9,294		9,294		9,168
U.S. treasury notes | Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	9,294		9,294		9,168
U.S. government agencies | Recurring | Carrying Value
Financial Assets
Investments	15,826		15,826		23,735
U.S. government agencies | Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	15,826		15,826		23,735
States and political subdivisions | Recurring | Carrying Value
Financial Assets
Investments	48,805		48,805		32,589
States and political subdivisions | Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	48,805		48,805		32,589
Mortgage-backed - residential | Recurring | Carrying Value
Financial Assets
Mortgage-backed	99,934		99,934		113,991
Mortgage-backed - residential | Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Mortgage-backed	99,934		99,934		113,991
Mortgage-backed - commercial | Recurring | Carrying Value
Financial Assets
Mortgage-backed	43,971		43,971		50,351
Mortgage-backed - commercial | Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets
Mortgage-backed	43,971		43,971		50,351
Equity securities | Carrying Value
Financial Assets
Investments	298		298		292
Equity securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial Assets
Investments	298		298		292
Equity securities | Recurring | Carrying Value
Financial Assets
Investments	298		298		292
Equity securities | Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial Assets
Investments	$ 298		$ 298		$ 292

FAIR VALUE MEASUREMENTS - FAIR

FAIR VALUE MEASUREMENTS - FAIR VALUE ON NON-RECURRING (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)loan	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Impaired Loans
Valuation allowance of impaired loans	$ 1,025		$ 1,025		$ 52
Provision for loan loss expense	500	$ 325	2,125	$ 450
Other real estate owned, net:
Outstanding balance of other real estate owned	1,879		1,879		2,148
Loan servicing rights
Mortgage servicing rights	1,472		1,472		1,573
Impaired mortgage servicing rights			1,800		1,200
Valuation allowance	446		446		110
Carrying value	1,300		1,300		1,100
Non-recurring
Impaired Loans
Impaired loans, at fair value	2,100		2,100		1,400
Valuation allowance of impaired loans	975		975		52
Other real estate owned, net:
Other real estate owned	552		552		519
Outstanding balance of other real estate owned	1,000		1,000		980
Valuation allowance of other real estate owned	477		477		461
Write downs of other real estate owned	0	0	38,000
Loan servicing rights
Recovery of prior write-downs	194	$ 35	336	$ 41
Non-recurring | Carrying Value
Other real estate owned, net:
Other real estate owned	1,335		1,335
Loan servicing rights
Mortgage servicing rights					1,107
Non-recurring | Significant Unobservable Inputs (Level 3)
Other real estate owned, net:
Other real estate owned	1,335		1,335
Loan servicing rights
Mortgage servicing rights					1,107
Non-recurring | 1-4 family residential | Carrying Value
Impaired Loans
Impaired loans, at fair value					200
Other real estate owned, net:
Other real estate owned	73		73		40
Non-recurring | 1-4 family residential | Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value					200
Other real estate owned, net:
Other real estate owned	73		73		40
Non-recurring | Multi-family residential | Carrying Value
Impaired Loans
Impaired loans, at fair value	1,217		1,217		1,242
Non-recurring | Multi-family residential | Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	1,217		1,217		1,242
Non-recurring | Non-farm & non-residential
Impaired Loans
Impaired loans, at fair value	1,800		1,800
Valuation allowance of impaired loans	900		$ 900
Number of impaired loans. | loan			1
Provision for loan loss expense	50		$ 50
Non-recurring | Non-farm & non-residential | Carrying Value
Impaired Loans
Impaired loans, at fair value	899		899
Non-recurring | Non-farm & non-residential | Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	899		899
Non-recurring | Agricultural | Carrying Value
Other real estate owned, net:
Other real estate owned	233		233		233
Non-recurring | Agricultural | Significant Unobservable Inputs (Level 3)
Other real estate owned, net:
Other real estate owned	233		233		233
Non-recurring | Commercial | Carrying Value
Other real estate owned, net:
Other real estate owned	246		246		246
Non-recurring | Commercial | Significant Unobservable Inputs (Level 3)
Other real estate owned, net:
Other real estate owned	$ 246		$ 246		$ 246

FAIR VALUE MEASUREMENTS - QUANT

FAIR VALUE MEASUREMENTS - QUANTITATIVE INFORMATION (Details) $ in Thousands	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)item
Fair Value Measurements
Mortgage servicing rights	$ 1,472	$ 1,573
Non-recurring
Fair Value Measurements
Impaired loans, at fair value	2,100	1,400
Other real estate owned	552	519
Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	1,335
Mortgage servicing rights		1,107
Non-recurring | Discounted cash flow | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Mortgage servicing rights	1,335	1,107
Non-recurring | 1-4 family residential | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value		200
Other real estate owned	73	40
Non-recurring | 1-4 family residential | Sales comparison | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value		200
Other real estate owned	73	40
Non-recurring | Multi-family residential | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	1,217	1,242
Non-recurring | Multi-family residential | Income approach | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	1,217	1,242
Non-recurring | Non-farm & non-residential
Fair Value Measurements
Impaired loans, at fair value	1,800
Non-recurring | Non-farm & non-residential | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	899
Non-recurring | Non-farm & non-residential | Sales comparison | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	899
Non-recurring | Commercial | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	246	246
Non-recurring | Commercial | Sales comparison | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned		246
Non-recurring | Commercial | Income approach | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	246
Non-recurring | Agricultural | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	233	$ 233
Non-recurring | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	$ 233
Other real estate owned, measurement input		233
Non-recurring | Minimum | Discounted cash flow | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Servicing asset, measurement input		0.09
Non-recurring | Minimum | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Servicing asset, measurement input	(0.12)
Non-recurring | Minimum | 1-4 family residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input		(0.01)
Other real estate owned, measurement input	(0.23)	(0.04)
Non-recurring | Minimum | Multi-family residential | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Impaired loans - measurement input	0.07	0.07
Non-recurring | Minimum | Non-farm & non-residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	(0.50)
Non-recurring | Minimum | Commercial | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input		(0.06)
Non-recurring | Minimum | Commercial | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input	(0.06)
Non-recurring | Minimum | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	0
Non-recurring | Minimum | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input		0
Non-recurring | Maximum | Discounted cash flow | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Servicing asset, measurement input		0.20
Non-recurring | Maximum | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Servicing asset, measurement input	(0.24)
Non-recurring | Maximum | 1-4 family residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input		0.21
Other real estate owned, measurement input	(0.28)	0.11
Non-recurring | Maximum | Multi-family residential | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Impaired loans - measurement input	0.07	0.07
Non-recurring | Maximum | Non-farm & non-residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	(0.50)
Non-recurring | Maximum | Commercial | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input | item		0.08
Non-recurring | Maximum | Commercial | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input	0.08
Non-recurring | Maximum | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	0.26
Non-recurring | Maximum | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input		0.26
Non-recurring | Weighted average | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Servicing asset, measurement input	(0.18)	(0.12)
Non-recurring | Weighted average | 1-4 family residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input		(0.01)
Other real estate owned, measurement input	(0.30)	(0.29)
Non-recurring | Weighted average | Multi-family residential | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Impaired loans - measurement input	(0.07)	(0.07)
Non-recurring | Weighted average | Non-farm & non-residential | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	(0.50)
Non-recurring | Weighted average | Commercial | Income approach | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input	(0.62)	(0.62)
Non-recurring | Weighted average | Agricultural | Sales comparison | Significant Unobservable Inputs (Level 3) | Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	(0.14)	(0.14)

FAIR VALUE MEASUREMENTS - FAI_2

FAIR VALUE MEASUREMENTS - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial assets
Interest bearing time deposits	$ 2,274	$ 2,375
Loans held for sale	6,178	2,144
Interest receivable	4,986	4,166
Financial liabilities
Short-term Federal Home Loan Bank advances	50,500	25,000
Long-term Federal Home Loan Bank advances	94,905	91,418
Interest payable	1,251	1,170
Carrying Value
Financial assets
Cash and cash equivalents	104,273	22,182
Interest bearing time deposits	2,274	2,375
Securities available for sale	251,586	265,330
Loans held for sale	6,178	2,144
Net Loans	798,078	735,853
Federal Home Loan Bank stock	7,072	7,034
Interest receivable	4,986	4,166
Derivatives	473	94
Financial liabilities
Total deposits	944,556	842,653
Repurchase agreements	4,308	5,994
Short-term Federal Home Loan Bank advances	50,500	25,000
Long-term Federal Home Loan Bank advances	94,905	91,418
Subordinated debentures	7,217	7,217
Interest payable	1,251	1,170
Derivative and financial instruments	2,844	164
Fair Value
Financial assets
Cash and cash equivalents	104,273	22,182
Interest bearing time deposits	2,274	2,375
Securities available for sale	251,586	265,330
Loans held for sale	6,338	2,171
Net Loans	792,183	735,060
Interest receivable	4,986	4,166
Derivatives	473	94
Financial liabilities
Total deposits	946,176	841,840
Repurchase agreements	4,315	5,993
Short-term Federal Home Loan Bank advances	50,500	25,000
Long-term Federal Home Loan Bank advances	97,922	91,397
Subordinated debentures	6,785	7,213
Interest payable	1,251	1,170
Derivative and financial instruments	2,844	164
Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial assets
Cash and cash equivalents	104,273	22,182
Interest bearing time deposits	2,274	2,375
Financial liabilities
Total deposits	738,775	630,948
Significant Other Observable Inputs (Level 2)
Financial assets
Securities available for sale	251,586	265,330
Loans held for sale	6,338	2,171
Interest receivable	960	1,035
Derivatives	473	94
Financial liabilities
Total deposits	207,401	210,892
Repurchase agreements	4,315	5,993
Short-term Federal Home Loan Bank advances	50,500	25,000
Long-term Federal Home Loan Bank advances	97,922	91,397
Interest payable	1,239	1,156
Derivative and financial instruments	2,844	164
Significant Unobservable Inputs (Level 3)
Financial assets
Net Loans	792,183	735,060
Interest receivable	4,026	3,131
Financial liabilities
Subordinated debentures	6,785	7,213
Interest payable	12	14
Equity securities | Carrying Value
Financial assets
Investments	298	292
Equity securities | Fair Value
Financial assets
Investments	298	292
Equity securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial assets
Investments	$ 298	$ 292

LEASES - Balance Sheets (Detail

LEASES - Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheets
Gross Carrying Amount	$ 8,806	$ 8,857
Accumulated Amortization	(919)	(662)
Net Book Value	$ 7,887	8,195
Financial position	us-gaap:OperatingLeaseRightOfUseAsset
Right of use lease obligations	$ 8,090	$ 8,350
Financial position	us-gaap:OperatingLeaseLiability

LEASES - Other (Details)

LEASES - Other (Details)	Jun. 30, 2020
LEASES
Weighted-average remaining lease term for operating leases	34 years 10 months 24 days
Weighted-average discount rate for operating leases	4.13%

LEASES - Lease Cost and Other i

LEASES - Lease Cost and Other information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
LEASES
Operating lease cost	$ 158	$ 136	$ 140	$ 111
Total lease cost	158	136	140	111
Operating cash flows from operating leases	$ 131	$ 93	$ 102	$ 130

LEASES - Future minimum payment

LEASES - Future minimum payments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Future minimum payments
2020	$ 520
2021	524
2022	529
2023	539
2024	525
Thereafter	18,621
Total undiscounted lease payments	21,258
Amounts representing interest	(13,168)
Operating lease liability	$ 8,090	$ 8,350

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
NON-INTEREST INCOME
Service charges	$ 990	$ 1,397	$ 2,279	$ 2,591
Trust department income	332	347	702	675
Brokerage income	95	135	222	271
Debit card interchange income	915	903	1,727	1,693
Total other income	3,999	3,335	7,561	6,335
ASU 2014-09
NON-INTEREST INCOME
Service charges	990	1,397	2,279	2,591
Trust department income	332	347	702	675
Brokerage income	95	135	222	271
Debit card interchange income	915	903	1,727	1,693
Total other income	$ 2,332	$ 2,782	$ 4,930	$ 5,230

DERIVATIVES AND FINANCIAL INS_2

DERIVATIVES AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Carrying Value
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	$ 473	$ 94
Interest rate swap | Fair value hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability, Notional Amount	7,000	7,000
Outstanding balance	56,400
Interest rate swap | Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability, Notional Amount	23,000	10,000
Interest rate swap | Not designated as hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability, Notional Amount	25,300	7,400
Interest rate swap | Federal Home Loan Bank Advances | Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset		46
Interest rate swap | Federal Home Loan Bank Advances | Carrying Value | Fair value hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	742	169
Derivative liability	724	164
Interest rate swap | Federal Home Loan Bank Advances | Carrying Value | Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liability	2,100
Interest rate swap | Federal Home Loan Bank Advances | Not designated as hedge | Carrying Value
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	$ 473
Derivative liability		$ 48