Kentucky Bancshares (KTYB) 10-K3 Mar 212020 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2020	Mar. 01, 2021	Jun. 30, 2020
Document and Entity Information
Document Annual Report	true
Document Transition Report	false
Entity Registrant Name	KENTUCKY BANCSHARES INC /KY/
Entity Central Index Key	0001000232
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-52598
Entity Tax Identification Number	61-0993464
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-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, no par value per share
Trading Symbol	KTYB
ICFR Auditor Attestation Flag	false
Entity Public Float			$ 88.7
Entity Common Stock, Shares Outstanding		5,961,376
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 38,579,000	$ 21,922,000
Federal funds sold	395,000	260,000
Cash and cash equivalents	38,974,000	22,182,000
Interest bearing time deposits	2,470,000	2,375,000
Securities available for sale	353,494,000	265,330,000
Loans held for sale	4,427,000	2,144,000
Loans	766,871,000	744,313,000
Allowance for loan losses	(9,897,000)	(8,460,000)
Net loans	756,974,000	735,853,000
Federal Home Loan Bank stock	7,072,000	7,034,000
Real estate owned, net	876,000	2,148,000
Bank premises and equipment, net	20,375,000	19,429,000
Interest receivable	5,227,000	4,166,000
Mortgage servicing rights	1,612,000	1,573,000
Goodwill	14,001,000	14,001,000
Other intangible assets	62,000	136,000
Bank owned life insurance	18,713,000	18,165,000
Operating lease right of use asset	7,670,000	8,195,000
Other assets	7,558,000	8,059,000
Total assets	1,239,505,000	1,110,790,000
Deposits
Non-interest bearing	313,285,000	235,268,000
Time deposits, $250,000 and over	36,192,000	43,345,000
Other interest bearing	629,127,000	564,040,000
Total deposits	978,604,000	842,653,000
Repurchase agreements	9,129,000	5,994,000
Short-term Federal Home Loan Bank advances	10,500,000	25,000,000
Long-term Federal Home Loan Bank advances	86,032,000	91,418,000
Subordinated debentures	7,217,000	7,217,000
Interest payable	775,000	1,170,000
Operating lease liability	7,850,000	8,350,000
Other liabilities	11,056,000	9,725,000
Total liabilities	1,111,163,000	991,527,000
Commitments and contingent liabilities - See Note19
Stockholders' equity
Preferred stock, 300,000 shares authorized and unissued
Common stock, no par value; 20,000,000 shares authorized; 5,946,306 and 5,913,922 shares issued and outstanding at December 31, 2020 and December 31, 2019	21,996,000	21,447,000
Retained earnings	104,319,000	96,903,000
Accumulated other comprehensive income	2,027,000	913,000
Total stockholders' equity	128,342,000	119,263,000
Total liabilities and stockholders' equity	$ 1,239,505,000	$ 1,110,790,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 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	5,946,306	5,913,922
Common stock, shares outstanding	5,946,306	5,913,922

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
INTEREST INCOME
Loans, including fees	$ 36,456	$ 37,039
Securities
Taxable	4,976	6,564
Tax exempt	944	1,037
Other	309	892
Total interest income	42,685	45,532
Interest expense
Deposits	4,319	6,240
Repurchase agreements and other borrowings	25	55
Federal Home Loan Bank advances	2,091	2,183
Note payable		117
Subordinated debentures	268	388
Total interest expense	6,703	8,983
Net interest income	35,982	36,549
Provision for loan losses	1,775	1,250
Net interest income after provision for loan losses	34,207	35,299
Other income
Gain (loss) on sale of available for sale securities, net	345	857
Gain on sale of loans	4,834	1,552
Income from bank-owned life insurance	668	439
Other	253	459
Total	15,975	14,239
NON-INTEREST EXPENSE:
Salaries and employee benefits	20,897	19,187
Occupancy expenses	4,118	4,066
Legal and professional fees	1,345	1,183
Data processing	2,267	2,425
Debit card expenses	1,989	1,996
Advertising and marketing	563	824
Taxes other than payroll, property and income	1,412	1,314
Loss on limited partnership	1,170	635
Other	3,846	3,678
Total other expenses	37,607	35,308
Income before income taxes	12,575	14,230
Provision for income taxes	878	1,077
Net income	$ 11,697	$ 13,153
Earnings per share
Basic (in dollars per share)	$ 1.97	$ 2.21
Diluted (in dollars per share)	$ 1.97	$ 2.21
Service Charges
Other income
Non-interest income	$ 4,602	$ 5,368
Loan Processing Fee
Other income
Non-interest income	(374)	140
Fiduciary and Trust
Other income
Non-interest income	1,441	1,411
Brokerage Commissions Revenue
Other income
Non-interest income	464	543
Debit card
Other income
Non-interest income	$ 3,742	$ 3,470

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 11,697	$ 13,153
Other comprehensive income (loss)
Unrealized gains (losses) on securities arising during the period	3,628	6,357
Reclassification of realized amount	(345)	(857)
Net change in unrealized gain (loss) on securities	3,283	5,500
Less: Tax impact	(828)	(1,155)
Net of tax	2,455	4,345
Unrealized gains (losses) on cashflow hedges arising during the period	(1,955)	46
Reclassification of realized amount	184
Net change in unrealized gain (loss) on cash flow hedges	(1,771)	46
Less: Tax impact	430
Net of tax	(1,341)	46
Total other comprehensive income (loss)	1,114	4,391
Comprehensive income	$ 12,811	$ 17,544

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)	24,680
Stock compensation expense	$ 220			220
Common stock purchased and retired	$ (238)	(1,306)		(1,544)
Common stock purchased and retired (in shares)	(66,000)
Other comprehensive Income (loss)			4,391	4,391
Net income		13,153		13,153
Dividends declared		(4,045)		(4,045)
Ending 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)	32,384
Stock compensation expense	$ 286			286
Other comprehensive Income (loss)			1,114	1,114
Net income		11,697		11,697
Dividends declared		(4,281)		(4,281)
Ending Balance at Dec. 31, 2020	$ 21,996	$ 104,319	$ 2,027	$ 128,342
Balances (in shares) at Dec. 31, 2020	5,946,306

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Common stock issued for stock grants- Gross (in shares)	28,850	21,856
Common stock, forfeited (in shares)	590	1,524
Common stock, settlement for income taxes (in shares)	890
Dividends per share (in dollars per share)	$ 0.72	$ 0.68
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	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 11,697	$ 13,153
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	1,343	1,206
Amortization (accretion), net	60	(384)
Provision for loan losses	1,775	1,250
Securities amortization, net	1,289	761
Securities (gains) losses, net	(345)	(857)
Net increase in cash surrender value of bank-owned life insurance	(548)	(467)
Originations of loans held for sale	(128,017)	(71,240)
Proceeds from sale of loans	130,568	71,851
Gain on sale of loans	(4,834)	(1,552)
Stock based compensation expense	286	220
Losses (gain) on disposal of fixed assets		(12)
Losses (gain) on other real estate	88	(74)
Write-downs of other real estate, net	38	54
Deferred taxes	(699)	(366)
Changes in:
Interest receivable	(1,061)	(16)
Other assets	373	(882)
Interest payable	(395)	277
Other liabilities	(10)	305
Net cash from operating activities	11,608	13,227
Cash flows from investing activities
Net change in interest bearing time deposits	(95)	(200)
Purchases of securities, available for sale	(183,070)	(101,829)
Proceeds from sales of securities, available for sale	17,096	79,561
Purchase of Federal Home Loan Bank stock	(38)
Purchase of bank-owned life insurance		(7,500)
Proceeds from principal payments and maturities of securities	80,148	77,903
Net change in loans	(23,200)	(60,021)
Purchases of bank premises and equipment	(2,289)	(3,291)
Capitalized expenditures for other real estate		(135)
Proceeds from sale of other real estate	1,450	267
Proceeds from sale of bank premises and equipment		17
Net cash from investing activities	(109,998)	(15,228)
Cash flows from financing activities
Net change in deposits	135,951	(7,789)
Net change in repurchase agreements and other borrowings	3,135	(2,083)
Net change in short-term advances from Federal Home Loan Bank	(14,500)	13,400
Long-term FHLB advances	15,000	18,500
Payments on long-term FHLB advances	(20,386)	(15,934)
Payments on note payable		(2,718)
Proceeds from issuance of common stock, including options and grants, including tax benefits	263	295
Purchase of common stock		(1,544)
Dividends paid	(4,281)	(4,045)
Net cash from financing activities	115,182	(1,918)
Net change in cash	16,792	(3,919)
Cash and cash equivalents at beginning of year	22,182	26,101
Cash and cash equivalents at end of year	38,974	22,182
Supplemental disclosures of cash flow information Cash paid during the year for:
Interest expense	7,098	8,706
Income taxes	800	1,450
Supplemental schedules of non-cash investing activities
Real estate acquired through foreclosure	$ 304	1,430
In conjunction with the adoption of ASU 2016-02, as detailed in Note 6 of the consolidated financial statements, a net operating lease asset and a related lease liability was recognized at 1/1/2019		6,373
Lease liability arising from obtaining right of use asset		$ 2,669

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 : The impact of the COVID-19 pandemic is fluid and continues to evolve. The potential financial impact continues to be unknown at this time. However, actions that have been taken or will be taken in response 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 : Interest bearing time deposits in other financial institutions have original maturities between one and three years and are carried at cost. 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 90 days delinquent, and interest income on real estate construction, non-farm and non-residential mortgage, agricultural and commercial loans is discontinued at the time the loan is 120 days 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 120 days 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 are 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, and the probability of collecting contractual principal and interest payments. These considerations may result in loans being charged off before they are 90 days 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 5 years . 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 and included in interest and fee income on loans 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 and included in interest and fee income on loans 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 31, 2020 and 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. 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 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 10 years. 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 December 31, 2020 was $3.1 million, compared to $4.2 million at December 31, 2019, and is included with other assets in the balance sheet. During the years ended December 31, 2020 and 2019, the Company recognized amortization expense of Leases : Lessees are required to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. The Company recorded an operating lease right of use asset of million, as of December 31, 2020, as a result of recording operating lease contracts where the Company is lessee. 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 : 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 : 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 satisifies its obligation to the customer. Services within the scope of ASC 606 include trust department income, service charges, debit card interchange income and brokerage incom

RESTRICTIONS ON CASH AND DUE FR

RESTRICTIONS ON CASH AND DUE FROM BANKS	12 Months Ended
RESTRICTIONS ON CASH AND DUE FROM BANKS	Dec. 31, 2020
RESTRICTIONS ON CASH AND DUE FROM BANKS
RESTRICTIONS ON CASH AND DUE FROM BANKS	NOTE 2 - RESTRICTIONS ON CASH AND DUE FROM BANKS Included in cash and due from banks are certain interest bearing deposits that are held at the Federal Reserve or maintained in vault cash in accordance with average balance requirements specified by the Federal Reserve Board of Governors. The reserve requirement was

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE	12 Months Ended
SECURITIES AVAILABLE FOR SALE	Dec. 31, 2020
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	NOTE 3 - SECURITIES AVAILABLE FOR SALE The following table summarizes the amortized cost and fair value of the securities at December 31, 2020 and 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for Sale December 31, 2020 U.S. treasury notes $ 9,075 $ 113 $ — $ 9,188 U.S. government agencies 23,185 144 (31) 23,298 States and political subdivisions 65,665 1,977 (3) 67,639 Mortgage-backed - residential 124,941 1,728 (187) 126,482 Mortgage-backed - commercial 73,573 1,179 (201) 74,551 Asset-backed 51,676 90 (455) 51,311 Other 1,000 25 — 1,025 Total $ 349,115 $ 5,256 $ (877) $ 353,494 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 at December 31, 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. Amortized Fair Cost Value Due in one year or less $ 5,191 $ 5,239 Due after one year through five years 20,130 20,358 Due after five years through ten years 35,646 36,526 Due after ten years 37,958 39,027 98,925 101,150 Mortgage-backed - residential 124,941 126,482 Mortgage-backed - commercial 73,573 74,551 Asset-backed 51,676 51,311 Total $ 349,115 $ 353,494 Proceeds from sales of securities during 2020 and 2019 were $17.1 million and $79.6 million. Gross gains of $388 thousand and $896 thousand and gross losses of $43 thousand and $39 thousand, were realized on those sales, respectively. The tax provision related to these realized gains and losses was Securities with an approximate carrying value of $223.6 million and $190.7 million at December 31, 2020 and 2019, were pledged to secure public deposits, trust funds, securities sold under agreements to repurchase and for other purposes as required or permitted by law. Securities with unrealized losses at year end 2020 and 2019 not recognized in income are as follows: December 31, 2020 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 $ 8,432 $ (18) $ 851 $ (13) $ 9,283 $ (31) States and political subdivisions 333 (3) — — 333 (3) Mortgage-backed - residential 32,440 (187) — — 32,440 (187) Mortgage-backed - commercial 19,852 (189) 5,087 (12) 24,939 (201) Asset-backed 15,948 (236) 22,565 (219) 38,513 (455) Total temporarily impaired $ 77,005 $ (633) $ 28,503 $ (244) $ 105,508 $ (877) December 31, 2019 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, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. Unrealized losses on securities have not been recognized into income because the issues are of high credit quality, management does not intend to sell and it is more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity. At December 31, 2020, four U.S. government agency securities have unrealized losses of 0.3% from their amortized cost, eight commercial mortgage backed securities have unrealized losses of 0.8% from their amortized cost basis, fifteen residential mortgage backed securities have unrealized losses of 0.6% from their amortized cost basis, one state and municipal has unrealized losses of 0.8% from its amortized cost basis and seventeen asset-backed securities which has an unrealized loss of 1.2% . Management believes the declines in fair value from these and other securities are largely due to changes in interest rates. The Company believes there is no other-than-temporary impairment and does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

LOANS

LOANS	12 Months Ended
LOANS	Dec. 31, 2020
LOANS
LOANS	NOTE 4 - LOANS Loans at year-end were as follows: 2020 2019 Commercial $ 117,425 $ 86,552 Real estate construction 14,571 32,219 Real estate mortgage: 1-4 family residential 293,136 291,419 Multi-family residential 47,854 48,622 Non-farm & non-residential 218,998 204,908 Agricultural 52,239 57,166 Consumer 22,532 23,122 Other 116 305 Total $ 766,871 $ 744,313 As of December 31, 2020, the Company had outstanding loan balances of $41.4 million for loans made as part of the Paycheck Protection Program (PPP) established under the CARES Act which were included in commercial loans in the table above. The balances were million as of June 30, 2020. These loans required allowance for loan losses as of December 31, 2020 because they are fully guaranteed by the SBA. At December 31, 2020, deferred fee income for PPP loans totaled thousand. During 2020, The following table presents the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2020 and 2019: Beginning Ending December 31, 2020 Balance Charge-offs Recoveries Provision Balance Commercial $ 920 $ (25) $ 17 $ 14 $ 926 Real estate Construction 551 — — (274) 277 Real estate mortgage: 1-4 family residential 2,901 (37) 40 306 3,210 Multi-family residential 807 — — 83 890 Non-farm & non-residential 1,643 — 5 1,298 2,946 Agricultural 389 — 8 52 449 Consumer 506 (325) 54 290 525 Other 43 (762) 687 76 44 Unallocated 700 — — (70) 630 $ 8,460 $ (1,149) $ 811 $ 1,775 $ 9,897 Beginning Ending December 31, 2019 Balance Charge-offs Recoveries Provision Balance Commercial $ 1,159 $ (260) $ 21 $ — $ 920 Real estate Construction 414 — — 137 551 Real estate mortgage: 1-4 family residential 2,605 (168) 19 445 2,901 Multi-family residential 733 — 15 59 807 Non-farm & non-residential 1,649 (17) — 11 1,643 Agricultural 420 — 8 (39) 389 Consumer 410 (397) 39 454 506 Other 58 (901) 724 162 43 Unallocated 679 — — 21 700 $ 8,127 $ (1,743) $ 826 $ 1,250 $ 8,460 The following tables present the balance in the allowance for loan losses and the recorded investment (excluding accrued interest receivable amounting to $4.1 million and $3.1 million) in loans by portfolio segment and based on impairment method as of December 31, 2020 and December 31, 2019: Individually Collectively Evaluated for Evaluated for As of December 31, 2020 Impairment Impairment Total Allowance for Loan Losses: Commercial $ — $ 926 $ 926 Real estate construction — 277 277 Real estate mortgage: 1-4 family residential 5 3,205 3,210 Multi-family residential 75 815 890 Non-farm & non-residential 900 2,046 2,946 Agricultural 50 399 449 Consumer — 525 525 Other — 44 44 Unallocated — 630 630 $ 1,030 $ 8,867 $ 9,897 Loans: Commercial $ — $ 117,425 $ 117,425 Real estate construction — 14,571 14,571 Real estate mortgage: 1-4 family residential 804 292,332 293,136 Multi-family residential 1,292 46,562 47,854 Non-farm & non-residential 3,654 215,344 218,998 Agricultural 3,759 48,480 52,239 Consumer — 22,532 22,532 Other — 116 116 Total $ 9,509 $ 757,362 $ 766,871 Individually Collectively Evaluated for Evaluated for As of December 31, 2019 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 December 31, 2020: Unpaid Allowance for Average Interest Cash Basis Principal Recorded Loan Losses Recorded Income Interest (in thousands): Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Real estate mortgage: Non-farm and non-residential $ 1,855 $ 1,855 $ — $ 928 $ 44 $ 44 Agricultural 3,709 3,709 — 2,276 137 137 With an allowance recorded: Real estate mortgage: 1-4 family residential $ 804 $ 804 $ 5 $ 503 $ 7 $ 7 Multi-family residential 1,292 1,292 75 1,292 — — Non-farm and non-residential 1,799 1,799 900 1,799 — — Agricultural 50 50 50 25 — — Total $ 9,509 $ 9,509 $ 1,030 6,823 188 $ 188 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019: Unpaid Allowance for Average Interest Cash Basis Principal Recorded Loan Losses Recorded Income Interest (in thousands): 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 recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. Nonperforming loans include impaired loans and smaller balance homogeneous loans, such as residential mortgage and consumer loans, that are collectively evaluated for impairment. Nonaccrual loans secured by real estate make up 98.2% of the total nonaccrual loans. Loans on non-accrual or more than 89 days past due are not individually evaluated for specific allowances unless certain criteria are met. Further, loans more than 89 days past due maybe be individually evaluated but determined to be not impaired. The following tables present the recorded investment in nonaccrual loans, loans past due over 89 days still accruing, and troubled debt restructurings by class of loans as of December 31, 2020 and 2019: Loans Past Due Over 89 Days Still Troubled Debt As of December 31, 2020 Nonaccrual Accruing Restructurings Commercial $ 56 $ 47 $ — Real estate construction 124 — — Real estate mortgage: 1-4 family residential 638 — — Multi-family residential 1,292 — — Non-farm & non-residential 1,813 — — Agricultural 110 — 1,145 Consumer 18 28 — Total $ 4,051 $ 75 $ 1,145 Loans Past Due Over 89 Days Still Troubled Debt As of December 31, 2019 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 $ — The following tables present the aging of the recorded investment in past due and non-accrual loans as of December 31, 2020 and 2019 by class of loans: December 31, 2020 30–59 60–89 Greater than Total Days Days 89 Days Past Due & Loans Not (in thousands) Past Due Past Due Past Due Non-accrual Non-accrual Past Due Commercial $ 352 $ 3 $ 47 $ 56 $ 458 $ 116,967 Real estate construction — — — 124 124 14,447 Real estate mortgage: 1-4 family residential 1,360 859 — 638 2,857 290,279 Multi-family residential — — — 1,292 1,292 46,562 Non-farm & non-residential 194 107 — 1,813 2,114 216,884 Agricultural 203 — — 110 313 51,926 Consumer 140 42 28 18 228 22,304 Other — — — — — 116 Total $ 2,249 $ 1,011 $ 75 $ 4,051 $ 7,386 $ 759,485 December 31, 2019 30–59 60–89 Greater than Total 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 made modifications in response to COVID-19 impacted borrowers who were not past due and met criteria for modification. This ability to exclude COVID-19-related modifications as troubled debt restructurings, which was set to expire on December 31, 2020, was extended under the Consolidated Appropriations Act 2021 to the earlier of 60 days after the national emergency concerning the COVID-19 outbreak terminates, or, January 1, 2022. 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. During 2020, approved modifications were approximately million was still in deferment as of December 31, 2020. Modifications were At December 31, 2020, the Company has one loan totaling $1.1 million classified as a troubled debt restructure. At December 31, 2019, the Company did not have any loans designated as troubled debt restructurings. For the years ending December 31, 2020 and 2019, no loans modified as troubled debt restructurings defaulted on payment. 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 includes primarily non-homogeneous loans with an outstanding balance greater than thousand such as commercial and commercial real estate loans. 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 a potential weakness that deserves 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 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. The following tables present the risk category of loans by class of loans, based on the most recent analysis performed, as of December 31, 2020 and 2019: December 31, 2020 Special (in thousands) Pass Mention Substandard Doubtful Commercial $ 113,402 $ 3,896 $ 127 $ — Real estate construction 14,447 — 124 — Real estate mortgage: 1-4 family residential 286,925 2,309 3,902 — Multi-family residential 45,974 588 1,292 — Non-farm & non-residential 207,050 8,261 1,888 1,799 Agricultural 45,649 3,288 3,302 — Total $ 713,447 $ 18,342 $ 10,635 $ 1,799 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 89 days past due or on non-accrual status, and total $46 thousand at December 31, 2020 and $95 thousand at December 31, 2019. 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. Certain directors and executive officers of the Company and companies in which they have beneficial ownership were loan customers of the Bank during 2020 and 2019. An analysis of the activity with respect to all director and executive officer loans is as follows: 2020 2019 Balance, beginning of year $ 1,333 $ 828 New loans 372 138 Effect of change in composition of related parties — 783 Repayments (610) (416) Balance, end of year $ 1,095 $ 1,333 Loan Servicing Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were approximately December 31, 2020 and 2019. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in demand deposits, were approximately Activity for mortgage servicing rights and the related valuation allowance follows: 2020 2019 Servicing Rights: Beginning balance $ 1,573 $ 1,536 Additions 1,043 441 Amortization (590) (333) Change in valuation allowance (414) (71) Ending balance $ 1,612 $ 1,573 Valuation Allowance: Beginning balance $ 110 $ 39 Additions expensed 420 155 Reductions credited to operations (6) (84) Ending balance $ 524 $ 110 The fair value of servicing rights was $1.9 million at December 31, 2020 and $2.0 million at December 31, 2019. Fair value at year-end 2020 was determined using a discount rate of Fair value at year-end 2019 was determined using a discount rate of 12.0%, prepayment speeds ranging from 8.8% to 19.9%, depending on the stratification of the specific right, and default rates ranging from 0.1% to 0.9% . The weighted average amortization period is 23 .0 years. Estimated amortization expense for each of the next five years is: 2021 $ 141 2022 126 2023 112 2024 102 2025 96

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
PREMISES AND EQUIPMENT	Dec. 31, 2020
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 5 - PREMISES AND EQUIPMENT Year-end premises and equipment were as follows: 2020 2019 Land and buildings $ 25,748 $ 22,780 Furniture and equipment 21,283 20,028 Construction in process — 1,934 47,031 44,742 Less accumulated depreciation (26,656) (25,313) $ 20,375 $ 19,429 Depreciation expense was $1.3 million and $1.2 million in 2020 and 2019. Certain premises, not included in premises and equipment above, are leased under operating leases. Please refer to Note 6 for information pertaining to the Company’s operating leases.

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2020
LEASES
LEASES	NOTE 6 - LEASES As of December 31, 2020, the Company is obligated under six operating leases, two of which are for building leases and four of which are for land leases, with terms extending through 2078. The Company's lease agreements include options to renew at the Company's discretion. The extensions are reasonably certain to be exercised. The lease agreements with options that we are reasonably certain will be exercised were considered in the calculation of the ROU asset and lease liability. Statement of Consolidated Balance Sheet 12/31/2020 12/31/2019 (in thousands) Operating Lease Right of Use Asset: Gross Carrying Amount $ 8,631 $ 8,857 Accumulated Amortization (961) (662) Net Book Value Operating lease right of use asset $ 7,670 $ 8,195 Operating Lease Liabilities Right of use lease obligations Operating lease liability $ 7,850 $ 8,350 As of December 31, 2020, the weighted-average remaining lease term for operating leases was 34.7 years compared to 35.4 years at December 31, 2019 and the weighted- average discount rate used in the measurement of operating lease liabilities was 4.14% . 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 of 4.50% as of April 30, 2019 as a basis for determing the discount rate for one contract which was entered into during April 2019. Year Ended 12/31/2020 12/31/2019 (in thousands) Lease Cost: Operating lease cost $ 559 $ 555 Total lease cost $ 559 $ 555 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 526 $ 350 Maturity analysis of liabilities under operating leases with terms longer than 12 months, are as follows at December 31, 2020: (in thousands) Twelve months ended December 31, 2021 $ 521 2022 527 2023 531 2024 545 2025 509 Thereafter 18,339 Total undiscounted lease payments $ 20,972 Amounts representing interest (13,122) Lease liability $ 7,850

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Dec. 31, 2020
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	NOTE 7 - GOODWILL AND INTANGIBLE ASSETS The change in balance for goodwill during the year is as follows: 2020 2019 Beginning of year $ 14,001 $ 14,001 Impairment — — End of year $ 14,001 $ 14,001 Goodwill is not amortized but instead evaluated periodically for impairment. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2020, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded it carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. . Acquired intangible assets were as follows at year-end: 2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets: Core deposit intangibles $ 800 $ 738 $ 800 $ 664 Aggregate amortization expense was $74 thousand and $102 thousand 2020 and 2019. Estimated amortization expense for each of the next five years: 2021 $ 45 2022 17 2023 — 2024 — 2025 —

DEPOSITS

DEPOSITS	12 Months Ended
DEPOSITS	Dec. 31, 2020
DEPOSITS
DEPOSITS	NOTE 8 - DEPOSITS Time deposits of $250 thousand or more were $36.2 million and $43.3 million at year-end 2020 and 2019, respectively. At December 31, 2020, the scheduled maturities of time deposits for the next five years are as follows: 2021 $ 132,510 2022 21,479 2023 7,675 2024 5,693 2025 3,749 Certain directors and executive officers of the Company and companies in whom they have beneficial ownership are deposit customers of the Bank. These deposits totaled approximately $2.5 million and $2.8 million at December 31, 2020 and 2019.

REPURCHASE AGREEMENTS

REPURCHASE AGREEMENTS	12 Months Ended
REPURCHASE AGREEMENTS	Dec. 31, 2020
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS	NOTE 9 - REPURCHASE AGREEMENTS Repurchase agreements are secured by U.S. Government agency securities with a total carrying amount of $14.7 million and $12.1 million at December 31, 2020 and 2019. Repurchase agreements range in maturities from 1 day to 5 months . The securities underlying the agreements are maintained in a third-party custodian’s account under a written custodial agreement. Information concerning repurchase agreements for 2020 and 2019 is summarized as follows: 2020 2019 Average daily balance during the year $ 6,773 $ 6,996 Average interest rate during the year 0.36 % 0.53 % Maximum month-end balance during the year $ 10,924 $ 8,947 Weighted average interest rate at year end 0.26 % 0.50 %

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES	12 Months Ended
FEDERAL HOME LOAN BANK ADVANCES	Dec. 31, 2020
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES	NOTE 10 - FEDERAL HOME LOAN BANK ADVANCES At year-end, advances from the Federal Home Loan Bank were as follows: 2020 2019 Short-Term Advances Maturities in February 2021, fixed rates from 0.24% to 0.65% with a weighted-average rate of 0.44% as of 12/31/20 and 1.80% as of 12/31/19 $ 10,500 $ 25,000 Long-Term Advances Maturities range from June 2021 through November 2028, fixed rates from 0.79% to 5.37%, with a weighted-average rate of 1.99% as of 12/31/20 and 2.13% as of 12/31/19 86,032 91,418 Advances are paid either on a monthly basis or at maturity. All advances require a prepayment penalty, and are secured by the Federal Home Loan Bank stock and substantially all 1-4 family first-mortgage residential, multi-family and farm real estate loans under a blanket lien arrangement at December 31, 2020 and 2019. Based on this collateral and the Company’s holding of Federal Home Loan Bank stock, the Company is eligible to borrow up to an additional Scheduled principal payments due on advances during the years subsequent to December 31, 2020 are as follows: 2021 $ 29,743 2022 23,493 2023 19,438 2024 18,792 2025 2,630 Thereafter 2,436 $ 96,532

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	12 Months Ended
SUBORDINATED DEBENTURES	Dec. 31, 2020
SUBORDINATED DEBENTURES.
SUBORDINATED DEBENTURES	NOTE 11 - SUBORDINATED DEBENTURES In August 2003, the Company formed Kentucky Bancshares, Statutory Trust I (“Trust”). The Trust issued $217 thousand of common securities to the Company and $7 million of trust preferred securities as part of a pooled offering of such securities. The Company issued $7.2 million subordinated debentures to the Trust in exchange for the proceeds of the offering, which debentures represent the sole asset of the Trust. The debentures paid interest quarterly at 7.06% for the first 5 years . Starting September 2008, the rate converted to three -month LIBOR plus 3.00% adjusted quarterly, which was 3.23% at year-end 2020. The Company is not considered the primary beneficiary of this Trust (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Company may redeem the subordinated debentures, in whole or in part, beginning September 2008 at a price of 100% of face value. The subordinated debentures must be redeemed no later than 2033. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	12 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Dec. 31, 2020
REVENUE FROM CONTRACTS WITH CUSTOMERS.
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 12 - REVENUE FROM CONTRACTS WITH CUSTOMERS 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. The following table reflects only the categories of noninterest income that are within the scope of Topic 606: Year Ended 12/31/2020 12/31/2019 Service charges $ 4,602 $ 5,368 Trust department income 1,441 1,411 Brokerage income 464 543 Debit card interchange income 3,742 3,470 Total $ 10,249 $ 10,792 Trust department income: We earn wealth management fees based upon asset custody, investment management, trust, and estate services provided to customers. Most of these customers receive monthly billings for services rendered based upon the market value of assets and/or income generated. Fees that are transaction based are recognized at the point in time that the transaction is executed 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: As with the transaction-based fees on deposit accounts, debit card interchange income is recognized at the point in time that we fulfill the customer’s request. We earn interchange fees from cardholder transactions processed through card association networks. Interchange rates are generally set by the card associations based upon purchase volumes and other factors. Interchange fees represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder 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.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 13 - INCOME TAXES Income tax expense was as follows: 2020 2019 Current Expense Federal $ 1,147 $ 1,443 Deferred Expense Federal (303) 240 State 34 (606) $ 878 $ 1,077 Year-end deferred tax assets and liabilities were due to the following. 2020 2019 Deferred tax assets Allowance for loan losses $ 2,488 $ 2,129 Other real estate owned 50 35 Nonaccrual loan interest 17 19 Accrued expenses 221 197 Acquisition market value adjustments — 9 Low income housing investments 329 212 Unearned income 57 105 Net operating loss 428 407 Derivative from cash flow hedge 431 — Operating lease liability 1,959 2,083 Other 325 76 6,305 5,272 Deferred tax liabilities Bank premises and equipment (1,048) (619) FHLB stock (960) (960) Prepaid expenses (518) (495) Mortgage servicing rights (402) (383) Core deposit intangibles (15) (31) Unrealized gain on securities (1,093) (265) Operating lease right of use asset (1,959) (2,083) Other (17) (10) (6,012) (4,846) Valuation Allowance — (5) Net Deferred Tax Asset $ 293 $ 421 Effective tax rates differ from federal statutory rates applied to financial statement income due to the following: 2020 2019 U. S. federal income tax rate 21.0 % 21.0 % Changes from the statutory rate State deferred tax benefit 0.3 (4.3) Tax-exempt interest income (4.3) (3.3) Tax-exempt BOLI income (0.9) (0.7) Historic and low income tax credits (7.1) (3.9) Insurance captive (1.5) (1.1) Non-deductible interest expense related to carrying tax-exempt investments 0.2 0.2 Other (0.7) (0.3) 7.0 % 7.6 % Federal income tax laws provided the First Federal Savings Bank, acquired by the Company in 2003, with additional bad debt deductions through 1987, totaling $1.3 million. Accounting standards do not require a deferred tax liability to be recorded on this amount, which otherwise would total a 31, 2020. The Company’s acquisition of First Federal Savings Bank did not require the recapture of the bad debt reserve. However, if Kentucky Bank was liquidated or otherwise ceased to be a bank, or if tax laws were to change, the On March 26, 2019, Governor Bevin signed House Bill 354 into law which, among other things, repealed the bank franchise tax structure in Kentucky. The capital based franchise tax structure will be replaced with the state-wide corporate income tax structure starting in 2021. Kentucky Bancshares, Inc. has historically filed a separate return in Kentucky, and has generated a Kentucky net operating loss (“NOL”) carryforward, given the nature of its operations. Given House Bill 354, Kentucky Bancshares, Inc. will file a combined return in 2021, unless the Company decides to timely elect to file on a consolidated basis. On April 9, 2019, Governor Bevin signed House Bill 458 into law which, among other things, allows a taxpayer to utilize certain net operating loss (“NOL”) carryforwards to offset up to 50% of other members’ Kentucky taxable income in the combined filing group starting in 2021. As a result of these tax law changes, the Company had a deferred tax asset of $607 thousand as of December 31, 2020. Most of the benefit of recording the deferred tax asset was recorded during 2019 as a reduction to income tax expense. Unrecognized Tax Benefits The Company does not have any unrecognized tax benefit. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. There were no interest and penalties recorded in the income statement or accrued for the years ended December 31, 2020 and 2019. The Company and its subsidiaries file a consolidated U.S. Corporation income tax return and a corporate income tax return in the state of Kentucky. The Company is no longer subject to examination by taxing authorities for years before 2017.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
EARNINGS PER SHARE	Dec. 31, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 14 - EARNINGS PER SHARE The factors used in the earnings per share computation follow: 2020 2019 Basic and Diluted Earnings Per Share Net income $ 11,697 $ 13,153 Weighted average common shares outstanding 5,942 5,953 Basic and diluted earnings per share $ 1.97 $ 2.21 Restricted stock grants for 2020 and 2019 were excluded in shares outstanding for purposes of computing basic and diluted earnings per share and were anti-dilutive.

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
RETIREMENT PLAN	Dec. 31, 2020
RETIREMENT PLAN
RETIREMENT PLAN	NOTE 15 - RETIREMENT PLAN The Company has a qualified profit sharing plan which covers substantially all employees and includes a 401(k) provision. Profit sharing contributions, excluding the 401(k) provision, are at the discretion of the Company’s Board of Directors. Expense recognized in connection with the plan was

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	12 Months Ended
STOCK BASED COMPENSATION	Dec. 31, 2020
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 16 - STOCK BASED COMPENSATION The Company has two share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was thousand for 2020 and 2019. 2005 Restricted Stock Grant Plan Under the Company’s expired 2005 Restricted Stock Grant Plan, total shares issuable under the plan were 100,000 . There were shares issued during 2020 and 2019. There were shares forfeited during 2019. The plan is now expired and A summary of changes in the Company’s nonvested shares for the year follows: Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 1,580 $ 21,606 $ 13.67 Vested (1,580) (21,606) 13.67 Nonvested at December 31, 2020 — $ — $ — As of December 31, 2020, there was no unrecognized compensation cost related to nonvested shares granted under the 2005 Restricted Stock Grant Plan 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, restricted stock share awards and other share based awards. Total shares issuable under the plan are . There were shares issued during 2019. There were shares forfeited during 2019. The plan is now expired and no additional restricted stock share awards will be issued from the 2009 Stock Award Plan. A summary of changes in the Company’s nonvested shares for the year follows: Weighted-Average Fair Grant-Date Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 38,482 $ 825,935 $ 21.46 Vested (14,995) (318,074) 21.21 Forfeited (300) (6,410) 21.37 Nonvested at December 31, 2020 23,187 $ 501,451 $ 21.63 As of December 31, 2020, there was $280 thousand unrecognized compensation cost related to nonvested shares granted under the 2009 Stock Award Plan. The cost is expected to be recognized over a weighted-average period of 2.6 years. The total grant-date fair value of shares vested during the years ended December 31, 2020 and 2019 was $318 thousand and $176 thousand. 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 2020 and 0 shares were issued during 2019. There were 290 shares forfeited 2020 and 0 shares forfeited in 2019. Weighted-Average Fair Grant-Date Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 — $ — $ — Granted 30,030 693,993 23.11 Vested (2,410) (55,695) 23.11 Forfeited (290) (6,702) 23.11 Nonvested at December 31, 2020 27,330 $ 631,596 $ 23.11 As of December 31, 2020, there was $399 thousand unrecognized compensation cost related to nonvested shares granted under the 2019 Stock Award Plan. The cost is expected to be recognized over a weighted-average period of 4.2 years. The total grant-date fair value of shares vested during the years ended December 31, 2020 and 2019 was $56 thousand and $0 .

LIMITATION ON BANK DIVIDENDS

LIMITATION ON BANK DIVIDENDS	12 Months Ended
LIMITATION ON BANK DIVIDENDS	Dec. 31, 2020
LIMITATION ON BANK DIVIDENDS
LIMITATION ON BANK DIVIDENDS	NOTE 17 - LIMITATION ON BANK DIVIDENDS The Company’s principal source of funds is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid by the Bank without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, as defined, combined with the retained net profits of the preceding two years . During 2020 the Bank could, without prior approval, declare dividends on any 2021 net profits retained to the date of the dividend declaration plus $ 9.6 million.

FAIR VALUE

FAIR VALUE	12 Months Ended
FAIR VALUE	Dec. 31, 2020
FAIR VALUE
FAIR VALUE	NOTE 18 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: 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: Securities Available for Sale : The fair values for 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 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. Such adjustments are usually significant and typically result 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. Other Real Estate Owned : Assets acquired through, or instead of, loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. 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 independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Loan 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. Assets and Liabilities Measured on a Recurring Basis Available for sale investment securities,equity securities and derivatives which are in included in other assets on the Company’s balance sheet,are the Company’s only balance sheet item 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 December 31, 2020 Using : 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 $ 9,188 $ — $ 9,188 $ — U. S. government agencies 23,298 — 23,298 — States and political subdivisions 67,639 — 67,639 — Mortgage-backed - residential 126,482 — 126,482 — Mortgage-backed-commercial 74,551 — 74,551 — Asset-backed 51,311 — 51,311 — Other 1,025 1,025 Derivatives 501 — 501 — Equity Securities 298 298 — — Total $ 354,293 $ 298 $ 353,995 $ — Financial Liabilities Derivatives $ 2,350 $ — $ 2,350 $ — Fair Value Measurements at December 31, 2019 Using : 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 48 48 Equity Securities 292 292 — — Total $ 265,670 $ 292 $ 265,378 $ — Financial Liabilities Derivatives $ 164 $ — $ 164 $ — Assets measured at fair value on a non-recurring basis are summarized below Fair Value Measurements at December 31, 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: 1-4 family residential $ 799 $ — $ — $ 799 Multi-family residential 1,217 — — 1,217 Non-farm residential 899 — — 899 Agricultural 694 — — 694 Other real estate owned, net: Real estate mortgage: 1-4 family residential 73 — — 73 Commercial 145 — — 145 Agricultural 233 — — 233 Mortgage servicing rights 1,459 — — 1,459 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 had a net carrying amount of $3.6million, with a valuation allowance of $1.0million at December 31, 2020. During 2020, thousand. The total allowance for specific impaired loans increased 31, 2020. There was At December 31, 2019, impaired loans measured for impairment using the fair value of the collateral had a net carrying amount of $1.4million, with a valuation allowance of $52 thousand. During 2019, thousand. The total allowance for specific impaired loans decreased 31, 2019. Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $451 thousand, which is made up of the outstanding balance of $928 thousand, net of a valuation allowance of $477 thousand at December 31, 2020. Fair value adjustments of other real estate were a net write-down of 31, 2020. At December 31, 2019, other real estate owned measured at fair value less costs to sell, had a net carrying amount of 31, 2019. Fair value adjustments of other real estate were a net write-down of 31, 2019. Certain impaired loan servicing rights, which are carried at lower of cost or fair value, were carried at their fair value of $1.5 million, which is made up of the outstanding balance of $2.0 million, net of a valuation allowance of $524 thousand at December 31, 2020. Fair value adjustments for the loan servicing were net write-downs of 31, 2020. At December 31, 2019, impaired loan servicing rights were carried at their fair value of 31, 2019. Fair value adjustments were net write-downs of The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020 and 2019: Range December 31, 2020 Fair Valuation Unobservable (Weighted (In thousands) Value Technique(s) Input(s) Average) Impaired loans Real estate mortgage: 1-4 family residential $ 799 sales comparison adjustment for differences between the comparable sales 15%-15% (15%) Multi-family residential 1,217 income approach capitalization rate 7% - 7% (7)% Non-farm residential 899 sales comparison adjustment for differences between the comparable sales 50% -50% (50)% Agricultural 694 sales comparison adjustment for differences between the comparable sales 100% - 100% (100)% Other real estate owned: Real estate mortgage: 1-4 family residential 73 sales comparison adjustment for differences between the comparable sales 23% - 27% (30)% Commercial 145 sales comparison adjustment for differences between the comparable sales 15%-15% (15%) Agricultural 233 sales comparison adjustment for differences between the comparable sales 0% - 26% (14)% Mortgage servicing rights 1,459 discounted cash flow constant prepayment rates 12% - 29% (19)% 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 ( (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, at December 31, 2020 and December 31, 2019 are as follows: December 31, 2020: Carrying (in thousands) Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 38,974 $ 38,974 $ — $ — $ 38,974 Interest bearing time deposits 2,470 2,470 — — 2,470 Securities available for sale 353,494 — 353,494 — 353,494 Loans held for sale 4,427 — 4,532 — 4,532 Net Loans 756,974 — — 763,914 763,914 Federal Home Loan Bank stock 7,072 — — — N/A Interest receivable 5,227 — 1,057 4,170 5,227 Derivative and financial instruments 501 — 501 — 501 Equity securities 298 298 — — 298 Financial liabilities Total deposits $ 978,604 $ 807,383 $ 171,892 $ — $ 979,275 Repurchase agreements 9,129 — 9,129 — 9,129 Short-term Federal Home Loan Bank advances 10,500 — 10,500 — 10,500 Long-term Federal Home Loan Bank advances 86,032 — 88,332 — 88,332 Subordinated debentures 7,217 — — 7,214 7,214 Interest payable 775 — 765 10 775 Derivative and financial instruments 2,350 — 2,350 — 2,350 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 48 — 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 and financial instruments 164 — 164 — 164

OFF-BALANCE SHEET ACTIVITIES AN

OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS	12 Months Ended
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS	Dec. 31, 2020
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS	NOTE 19 - OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Financial instruments with off-balance sheet risk were as follows at year-end: 12/31/2020 12/31/2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ — $ 146,200 $ — $ 117,265 Commitments to make loans 25,052 17,782 1,810 26,933 Letters of credit — 402 — 461 Unused lines of credit are substantially all at variable rates. Commitments to make loans are generally made for a period of 60 days or less and are originated at current market rates ranging from 1.88% to 5.25% with maturities ranging up to 30 years .

CAPITAL REQUIREMENTS

CAPITAL REQUIREMENTS	12 Months Ended
CAPITAL REQUIREMENTS	Dec. 31, 2020
CAPITAL REQUIREMENTS
CAPITAL REQUIREMENTS	NOTE 20 - CAPITAL REQUIREMENTS In August 2018, the Federal Reserve Board issued an interim final ruling that holding companies with assets less than $3 billion are not subject to minimum capital requirements. As a result, only Bank capital data and capital ratios are presented as of December 31, 2020 and December 31, 2019. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. In 2019, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework (CBLR framework), for qualifying community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule became effective on January 1, 2020 and was elected by the Bank as of December 31, 2020. In April 2020, the federal banking agencies issued an interim final rule that makes temporary changes to the CBLR framework, pursuant to section 4012 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and a second interim final rule that provides a graduated increase in the community bank leverage ratio requirement after the expiration of the temporary changes implemented pursuant to section 4012 of the CARES Act. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Under the interim final rules the community bank leverage ratio minimum requirement is 8% as of December 31, 2020, 8.5% for calendar year 2021, and 9% for calendar year 2022 and beyond. The interim rules allows for a two-quarter grace period to correct a ratio that falls below the required amount, provided that the bank maintains a leverage ratio of 7% as of December 31, 2020, 7.5% for calendar year 2021, and 8% for calendar year 2022 and beyond. Under the final rule, an eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of December 31, 2020, both the Company and Bank were qualifying community banking organizations as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework. The Bank’s actual amounts and ratios, exclusive of the capital conservation buffer for 2019, are presented below as of December 31, 2020 and December 31, 2019: To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2020 Bank Only Tier I Capital (to Average Assets) $ 107,805 9.0 $ 96,258 8.0 $ 96,258 8.0 December 31, 2019 Bank Only Total Capital (to Risk-Weighted Assets) $ 111,294 14.7 % $ 60,584 8.0 % $ 75,731 10.0 % Tier I Capital (to Risk-Weighted Assets) 102,759 13.6 45,438 6.0 60,584 8.0 Common Equity Tier 1 Capital (to Risk-Weighted Assets) 102,759 13.6 34,079 4.5 49,225 6.5 Tier I Capital (to Average Assets) 102,759 9.3 44,164 4.0 55,206 5.0

DERIVATIVES AND FINANCIAL INSTR

DERIVATIVES AND FINANCIAL INSTRUMENTS	12 Months Ended
DERIVATIVES AND FINANCIAL INSTRUMENTS	Dec. 31, 2020
DERIVATIVES AND FINANCIAL INSTRUMENTS
DERIVATIVES AND FINANCIAL INSTRUMENTS	NOTE 21 – 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 December 31, 2020 and 2019, were designated as cash flow hedges of certain rolling three month term FHLB advances and/or brokered deposits 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 liability was million and an asset of thousand as of December 31, 2020 and 2019 and included in other assets or other liabilities on the Company’s Consolidated Balance Sheet. Changes in the value of cash flow hedges resulted in a reduction of other comprehensive income, net of tax, of thousand for the years ended December 31, 2020 and 2019. Changes in the value of cash flow hedges had no impact on the Company’s income statement as of December 31, 2020 or 2019. Fair Value Hedges: million as of December 31, 2020 and 2019, were designated as fair value last of layer hedges of certain fixed rate prepayable loans. 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 was a thousand liability as of December 31, 2020 and 2019 and was included in loan balances on the Company’s balance sheet. Changes in the value of fair value hedges had an immaterial impact on the Company's income statement as of December 31, 2020 and 2019. 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 notional amounts of these transactions as of December 31, 2020 and 2019 were million. The carrying value of the fair value asset was

PARENT COMPANY FINANCIAL STATEM

PARENT COMPANY FINANCIAL STATEMENTS	12 Months Ended
PARENT COMPANY FINANCIAL STATEMENTS	Dec. 31, 2020
PARENT COMPANY FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS	NOTE 22 - PARENT COMPANY FINANCIAL STATEMENTS Condensed Balance Sheets As of December 31, 2020 2019 (In Thousands) ASSETS Cash on deposit with subsidiaries $ 8,804 $ 6,048 Investment in subsidiaries 126,125 119,804 Other assets 640 642 Total assets $ 135,569 $ 126,494 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Subordinated debentures $ 7,217 $ 7,217 Other Liabilities 10 14 Stockholders’ equity Preferred stock — — Common stock 21,996 21,447 Retained earnings 104,319 96,903 Accumulated other comprehensive income 2,027 913 Total liabilities and stockholders’ equity $ 135,569 $ 126,494 Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2020 2019 (In Thousands) Income Dividends from subsidiary $ 7,425 $ 8,140 Securities gains (losses), net — — Total income 7,425 8,140 Expenses Interest expense 268 505 Other expenses 372 291 Total expenses 640 796 Income before income taxes and equity in undistributed income of subsidiary 6,785 7,344 Applicable income tax benefits 165 569 Income before equity in undistributed income of subsidiary 6,950 7,913 Equity in undistributed income of subsidiaries 4,747 5,240 Net income $ 11,697 $ 13,153 Comprehensive income (loss) $ 12,811 $ 17,544 Condensed Statements of Cash Flows Years Ended December 31, 2020 2019 (In Thousands) Cash flows from operating activities Net income $ 11,697 $ 13,153 Adjustments to reconcile net income to net cash from operating activities Equity in undistributed earnings of subsidiary (4,747) (5,240) Change in other assets 2 (414) Change in other liabilities (4) (2) Net cash from operating activities 6,948 7,497 Cash flows from financing activities Payments on note payable — (2,718) Dividends paid (4,281) (4,045) Proceeds from issuance of common stock 89 65 Purchase of common stock — (1,544) Net cash from financing activities (4,192) (8,242) Net change in cash 2,756 (745) Cash at beginning of year 6,048 6,793 Cash at end of year $ 8,804 $ 6,048

QUARTERLY FINANCIAL DATA (UNAUD

QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
QUARTERLY FINANCIAL DATA (UNAUDITED)	Dec. 31, 2020
QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE 23 - QUARTERLY FINANCIAL DATA (UNAUDITED) Interest Net Interest Net Earnings Per Share Income Income Income Basic Fully Diluted 2020 First quarter $ 11,135 $ 8,992 $ 1,751 $ 0.30 $ 0.30 Second quarter 10,878 9,082 3,073 0.51 0.51 Third quarter 10,184 8,709 3,352 0.57 0.57 Fourth quarter 10,488 9,199 3,521 0.59 0.59 2019 First quarter $ 11,179 $ 8,939 $ 2,811 $ 0.47 $ 0.47 Second quarter 11,360 9,059 3,237 0.54 0.54 Third quarter 11,512 9,310 3,616 0.61 0.61 Fourth quarter 11,481 9,241 3,489 0.59 0.59

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 24 – SUBSEQUENT EVENTS Announcement of Merger between Kentucky Bank and Stock Yards Bancorp On January 27, 2021, the Company and Stock Yards Bancorp announced the execution of an Agreement and Plan of Merger (the “merger agreement”), providing for the merger of the Company and Stock Yards, subject to the terms and conditions set forth therein. Under the terms of the merger agreement, which was unanimously approved by the Boards of Directors of both companies, the Company’s shareholders will receive 0.64 shares of Stock Yards common stock and cash of $4.75 for each share of Kentucky Bank common stock they own. The transaction is expected to close in the second quarter of 2021 subject to customary closing conditions, including receipt of all applicable regulatory approvals and shareholder approval of Kentucky Bancshares. Unaudited The combined company will operate under the Stock Yards Bancorp name and will trade under the Stock Yards ticker symbol SYBT on the Nasdaq stock market. The company will be headquartered in Louisville, Kentucky. Stock Yards Bancorp is a bank holding company headquartered in Louisville, Kentucky. Stock Yards’ bank subsidiary Stock Yards Bank & Trust operates

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 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 : The impact of the COVID-19 pandemic is fluid and continues to evolve. The potential financial impact continues to be unknown at this time. However, actions that have been taken or will be taken in response 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 : Interest bearing time deposits in other financial institutions have original maturities between one and three years and are carried at cost.
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 90 days delinquent, and interest income on real estate construction, non-farm and non-residential mortgage, agricultural and commercial loans is discontinued at the time the loan is 120 days 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 120 days 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 are 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, and the probability of collecting contractual principal and interest payments. These considerations may result in loans being charged off before they are 90 days 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 5 years . 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 and included in interest and fee income on loans 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 and included in interest and fee income on loans 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 31, 2020 and 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.
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 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 10 years.
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 December 31, 2020 was $3.1 million, compared to $4.2 million at December 31, 2019, and is included with other assets in the balance sheet. During the years ended December 31, 2020 and 2019, the Company recognized amortization expense of
Leases	Leases : Lessees are required to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. The Company recorded an operating lease right of use asset of million, as of December 31, 2020, as a result of recording operating lease contracts where the Company is lessee.
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 satisifies 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. Management concluded that that the current decline in macroeconomic conditions is a triggering event and performed a goodwill impairment test as of December 31, 2020. Despite the recent economic downturn associated with the COVID-19 pandemic, management determined no impairment exists to Goodwill as of December 31, 2020. 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 or 15 years .
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 – In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The improvements and clarifications related to Topic 815 address partial-term fair value hedges of interest-rate risk, amortization, and disclosure of fair value hedge basis adjustments and consideration of hedged contractually specified interest rate under the hypothetical method and became effective for the annual reporting period beginning January 1, 2020. The amendments related to Topic 825 contain various improvements to ASU 2016-01, including scope; held-to-maturity debt securities fair value disclosures; and remeasurement of equity securities at historical exchange rates and became effective for fiscal years and interim periods beginning after December 15, 2019. The amendments related to Topic 326 address accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options and became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 for those entities who have adopted ASC 326. The amendments in this update did not have a material impact on the financial statements FASB ASC 350 – In January 2017, the FASB issued ASU No. 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update became effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 820 – In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The updated guidance improves the disclosure requirements on fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements; and for nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. 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. FIL-36-2020 – 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 Act (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 and third quarters of 2020. 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. As of December 31, 2020, approved modifications were approximately million was still in deferment as of December 31, 2020. Modifications were 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. 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 applies to Kentucky Bancshares and the Company does not intend to early adopt. ASU 2019-12 Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued this Update as part of its Simplification Initiative. The amendments in this Update affect entities within the scope of Topic 740, Income Taxes. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this Update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumuluative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. These amendments are effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is perfmitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

SECURITIES AVAILABLE FOR SALE (

SECURITIES AVAILABLE FOR SALE (Tables)	12 Months Ended
SECURITIES AVAILABLE FOR SALE (Tables)	Dec. 31, 2020
SECURITIES AVAILABLE FOR SALE
Schedule of securities available for sale	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for Sale December 31, 2020 U.S. treasury notes $ 9,075 $ 113 $ — $ 9,188 U.S. government agencies 23,185 144 (31) 23,298 States and political subdivisions 65,665 1,977 (3) 67,639 Mortgage-backed - residential 124,941 1,728 (187) 126,482 Mortgage-backed - commercial 73,573 1,179 (201) 74,551 Asset-backed 51,676 90 (455) 51,311 Other 1,000 25 — 1,025 Total $ 349,115 $ 5,256 $ (877) $ 353,494 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 $ 5,191 $ 5,239 Due after one year through five years 20,130 20,358 Due after five years through ten years 35,646 36,526 Due after ten years 37,958 39,027 98,925 101,150 Mortgage-backed - residential 124,941 126,482 Mortgage-backed - commercial 73,573 74,551 Asset-backed 51,676 51,311 Total $ 349,115 $ 353,494
Schedule of securities with unrealized losses not recognized in income	December 31, 2020 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 $ 8,432 $ (18) $ 851 $ (13) $ 9,283 $ (31) States and political subdivisions 333 (3) — — 333 (3) Mortgage-backed - residential 32,440 (187) — — 32,440 (187) Mortgage-backed - commercial 19,852 (189) 5,087 (12) 24,939 (201) Asset-backed 15,948 (236) 22,565 (219) 38,513 (455) Total temporarily impaired $ 77,005 $ (633) $ 28,503 $ (244) $ 105,508 $ (877) December 31, 2019 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)	12 Months Ended
LOANS (Tables)	Dec. 31, 2020
LOANS
Schedule of loans	2020 2019 Commercial $ 117,425 $ 86,552 Real estate construction 14,571 32,219 Real estate mortgage: 1-4 family residential 293,136 291,419 Multi-family residential 47,854 48,622 Non-farm & non-residential 218,998 204,908 Agricultural 52,239 57,166 Consumer 22,532 23,122 Other 116 305 Total $ 766,871 $ 744,313
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method	Beginning Ending December 31, 2020 Balance Charge-offs Recoveries Provision Balance Commercial $ 920 $ (25) $ 17 $ 14 $ 926 Real estate Construction 551 — — (274) 277 Real estate mortgage: 1-4 family residential 2,901 (37) 40 306 3,210 Multi-family residential 807 — — 83 890 Non-farm & non-residential 1,643 — 5 1,298 2,946 Agricultural 389 — 8 52 449 Consumer 506 (325) 54 290 525 Other 43 (762) 687 76 44 Unallocated 700 — — (70) 630 $ 8,460 $ (1,149) $ 811 $ 1,775 $ 9,897 Beginning Ending December 31, 2019 Balance Charge-offs Recoveries Provision Balance Commercial $ 1,159 $ (260) $ 21 $ — $ 920 Real estate Construction 414 — — 137 551 Real estate mortgage: 1-4 family residential 2,605 (168) 19 445 2,901 Multi-family residential 733 — 15 59 807 Non-farm & non-residential 1,649 (17) — 11 1,643 Agricultural 420 — 8 (39) 389 Consumer 410 (397) 39 454 506 Other 58 (901) 724 162 43 Unallocated 679 — — 21 700 $ 8,127 $ (1,743) $ 826 $ 1,250 $ 8,460
Schedule of loans individually evaluated for impairment by class of loans	Individually Collectively Evaluated for Evaluated for As of December 31, 2020 Impairment Impairment Total Allowance for Loan Losses: Commercial $ — $ 926 $ 926 Real estate construction — 277 277 Real estate mortgage: 1-4 family residential 5 3,205 3,210 Multi-family residential 75 815 890 Non-farm & non-residential 900 2,046 2,946 Agricultural 50 399 449 Consumer — 525 525 Other — 44 44 Unallocated — 630 630 $ 1,030 $ 8,867 $ 9,897 Loans: Commercial $ — $ 117,425 $ 117,425 Real estate construction — 14,571 14,571 Real estate mortgage: 1-4 family residential 804 292,332 293,136 Multi-family residential 1,292 46,562 47,854 Non-farm & non-residential 3,654 215,344 218,998 Agricultural 3,759 48,480 52,239 Consumer — 22,532 22,532 Other — 116 116 Total $ 9,509 $ 757,362 $ 766,871 Individually Collectively Evaluated for Evaluated for As of December 31, 2019 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 Unpaid Allowance for Average Interest Cash Basis Principal Recorded Loan Losses Recorded Income Interest (in thousands): Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Real estate mortgage: Non-farm and non-residential $ 1,855 $ 1,855 $ — $ 928 $ 44 $ 44 Agricultural 3,709 3,709 — 2,276 137 137 With an allowance recorded: Real estate mortgage: 1-4 family residential $ 804 $ 804 $ 5 $ 503 $ 7 $ 7 Multi-family residential 1,292 1,292 75 1,292 — — Non-farm and non-residential 1,799 1,799 900 1,799 — — Agricultural 50 50 50 25 — — Total $ 9,509 $ 9,509 $ 1,030 6,823 188 $ 188 Unpaid Allowance for Average Interest Cash Basis Principal Recorded Loan Losses Recorded Income Interest (in thousands): 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
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 Still Troubled Debt As of December 31, 2020 Nonaccrual Accruing Restructurings Commercial $ 56 $ 47 $ — Real estate construction 124 — — Real estate mortgage: 1-4 family residential 638 — — Multi-family residential 1,292 — — Non-farm & non-residential 1,813 — — Agricultural 110 — 1,145 Consumer 18 28 — Total $ 4,051 $ 75 $ 1,145 Loans Past Due Over 89 Days Still Troubled Debt As of December 31, 2019 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 Days Days 89 Days Past Due & Loans Not (in thousands) Past Due Past Due Past Due Non-accrual Non-accrual Past Due Commercial $ 352 $ 3 $ 47 $ 56 $ 458 $ 116,967 Real estate construction — — — 124 124 14,447 Real estate mortgage: 1-4 family residential 1,360 859 — 638 2,857 290,279 Multi-family residential — — — 1,292 1,292 46,562 Non-farm & non-residential 194 107 — 1,813 2,114 216,884 Agricultural 203 — — 110 313 51,926 Consumer 140 42 28 18 228 22,304 Other — — — — — 116 Total $ 2,249 $ 1,011 $ 75 $ 4,051 $ 7,386 $ 759,485 December 31, 2019 30–59 60–89 Greater than Total 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	Special (in thousands) Pass Mention Substandard Doubtful Commercial $ 113,402 $ 3,896 $ 127 $ — Real estate construction 14,447 — 124 — Real estate mortgage: 1-4 family residential 286,925 2,309 3,902 — Multi-family residential 45,974 588 1,292 — Non-farm & non-residential 207,050 8,261 1,888 1,799 Agricultural 45,649 3,288 3,302 — Total $ 713,447 $ 18,342 $ 10,635 $ 1,799 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
Schedule of analysis of the activity with respect to all director and executive officer loans	2020 2019 Balance, beginning of year $ 1,333 $ 828 New loans 372 138 Effect of change in composition of related parties — 783 Repayments (610) (416) Balance, end of year $ 1,095 $ 1,333
Schedule of activity for mortgage servicing rights and the related valuation allowance	2020 2019 Servicing Rights: Beginning balance $ 1,573 $ 1,536 Additions 1,043 441 Amortization (590) (333) Change in valuation allowance (414) (71) Ending balance $ 1,612 $ 1,573 Valuation Allowance: Beginning balance $ 110 $ 39 Additions expensed 420 155 Reductions credited to operations (6) (84) Ending balance $ 524 $ 110
Schedule of estimated amortization expense for each of the next five years	2021 $ 141 2022 126 2023 112 2024 102 2025 96

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
PREMISES AND EQUIPMENT (Tables)	Dec. 31, 2020
PREMISES AND EQUIPMENT
Schedule of year-end premises and equipment	2020 2019 Land and buildings $ 25,748 $ 22,780 Furniture and equipment 21,283 20,028 Construction in process — 1,934 47,031 44,742 Less accumulated depreciation (26,656) (25,313) $ 20,375 $ 19,429

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2020
LEASES
Schedule of balance sheet location	Statement of Consolidated Balance Sheet 12/31/2020 12/31/2019 (in thousands) Operating Lease Right of Use Asset: Gross Carrying Amount $ 8,631 $ 8,857 Accumulated Amortization (961) (662) Net Book Value Operating lease right of use asset $ 7,670 $ 8,195 Operating Lease Liabilities Right of use lease obligations Operating lease liability $ 7,850 $ 8,350
Schedule of lease cost and other information	Year Ended 12/31/2020 12/31/2019 (in thousands) Lease Cost: Operating lease cost $ 559 $ 555 Total lease cost $ 559 $ 555 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 526 $ 350
Schedule of future minimum payments under operating leases	(in thousands) Twelve months ended December 31, 2021 $ 521 2022 527 2023 531 2024 545 2025 509 Thereafter 18,339 Total undiscounted lease payments $ 20,972 Amounts representing interest (13,122) Lease liability $ 7,850

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Dec. 31, 2020
GOODWILL AND INTANGIBLE ASSETS
Schedule of change in balance for goodwill	2020 2019 Beginning of year $ 14,001 $ 14,001 Impairment — — End of year $ 14,001 $ 14,001
Schedule of acquired intangible assets	2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets: Core deposit intangibles $ 800 $ 738 $ 800 $ 664
Schedule of estimated amortization expense for each of the next five years	2021 $ 45 2022 17 2023 — 2024 — 2025 —

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
DEPOSITS (Tables)	Dec. 31, 2020
DEPOSITS
Schedule of scheduled maturities of time deposits for the next five years	2021 $ 132,510 2022 21,479 2023 7,675 2024 5,693 2025 3,749

REPURCHASE AGREEMENTS (Tables)

REPURCHASE AGREEMENTS (Tables)	12 Months Ended
REPURCHASE AGREEMENTS (Tables)	Dec. 31, 2020
REPURCHASE AGREEMENTS
Summary of information concerning repurchase agreements	2020 2019 Average daily balance during the year $ 6,773 $ 6,996 Average interest rate during the year 0.36 % 0.53 % Maximum month-end balance during the year $ 10,924 $ 8,947 Weighted average interest rate at year end 0.26 % 0.50 %

FEDERAL HOME LOAN BANK ADVANC_2

FEDERAL HOME LOAN BANK ADVANCES (Tables)	12 Months Ended
FEDERAL HOME LOAN BANK ADVANCES (Tables)	Dec. 31, 2020
FEDERAL HOME LOAN BANK ADVANCES
Schedule of advances from the Federal Home Loan Bank	2020 2019 Short-Term Advances Maturities in February 2021, fixed rates from 0.24% to 0.65% with a weighted-average rate of 0.44% as of 12/31/20 and 1.80% as of 12/31/19 $ 10,500 $ 25,000 Long-Term Advances Maturities range from June 2021 through November 2028, fixed rates from 0.79% to 5.37%, with a weighted-average rate of 1.99% as of 12/31/20 and 2.13% as of 12/31/19 86,032 91,418
Schedule of scheduled principal payments due on advances	2021 $ 29,743 2022 23,493 2023 19,438 2024 18,792 2025 2,630 Thereafter 2,436 $ 96,532

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	12 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	Dec. 31, 2020
REVENUE FROM CONTRACTS WITH CUSTOMERS.
Schedule of noninterest income	Year Ended 12/31/2020 12/31/2019 Service charges $ 4,602 $ 5,368 Trust department income 1,441 1,411 Brokerage income 464 543 Debit card interchange income 3,742 3,470 Total $ 10,249 $ 10,792

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2020
INCOME TAXES
Schedule of income tax expense	2020 2019 Current Expense Federal $ 1,147 $ 1,443 Deferred Expense Federal (303) 240 State 34 (606) $ 878 $ 1,077
Schedule of year-end deferred tax assets and liabilities	2020 2019 Deferred tax assets Allowance for loan losses $ 2,488 $ 2,129 Other real estate owned 50 35 Nonaccrual loan interest 17 19 Accrued expenses 221 197 Acquisition market value adjustments — 9 Low income housing investments 329 212 Unearned income 57 105 Net operating loss 428 407 Derivative from cash flow hedge 431 — Operating lease liability 1,959 2,083 Other 325 76 6,305 5,272 Deferred tax liabilities Bank premises and equipment (1,048) (619) FHLB stock (960) (960) Prepaid expenses (518) (495) Mortgage servicing rights (402) (383) Core deposit intangibles (15) (31) Unrealized gain on securities (1,093) (265) Operating lease right of use asset (1,959) (2,083) Other (17) (10) (6,012) (4,846) Valuation Allowance — (5) Net Deferred Tax Asset $ 293 $ 421
Schedule of reconciliation of effective tax rates and federal statutory rates applied to financial statement income	2020 2019 U. S. federal income tax rate 21.0 % 21.0 % Changes from the statutory rate State deferred tax benefit 0.3 (4.3) Tax-exempt interest income (4.3) (3.3) Tax-exempt BOLI income (0.9) (0.7) Historic and low income tax credits (7.1) (3.9) Insurance captive (1.5) (1.1) Non-deductible interest expense related to carrying tax-exempt investments 0.2 0.2 Other (0.7) (0.3) 7.0 % 7.6 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2020
EARNINGS PER SHARE
Schedule of factors used in the earnings per share computation	2020 2019 Basic and Diluted Earnings Per Share Net income $ 11,697 $ 13,153 Weighted average common shares outstanding 5,942 5,953 Basic and diluted earnings per share $ 1.97 $ 2.21

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	12 Months Ended
STOCK BASED COMPENSATION (Tables)	Dec. 31, 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: Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 1,580 $ 21,606 $ 13.67 Vested (1,580) (21,606) 13.67 Nonvested at December 31, 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: Weighted-Average Fair Grant-Date Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 38,482 $ 825,935 $ 21.46 Vested (14,995) (318,074) 21.21 Forfeited (300) (6,410) 21.37 Nonvested at December 31, 2020 23,187 $ 501,451 $ 21.63
Summary of changes in nonvested shares of stock award plan	Weighted-Average Fair Grant-Date Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 38,482 $ 825,935 $ 21.46 Vested (14,995) (318,074) 21.21 Forfeited (300) (6,410) 21.37 Nonvested at December 31, 2020 23,187 $ 501,451 $ 21.63
2019 Stock Award Plan
Stock Based Compensation
Summary of changes in nonvested shares of stock award plan	Weighted-Average Fair Grant-Date Value Nonvested Shares Shares Fair Value Per Share Nonvested at January 1, 2020 — $ — $ — Granted 30,030 693,993 23.11 Vested (2,410) (55,695) 23.11 Forfeited (290) (6,702) 23.11 Nonvested at December 31, 2020 27,330 $ 631,596 $ 23.11

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
FAIR VALUE (Tables)	Dec. 31, 2020
FAIR VALUE
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements at December 31, 2020 Using : 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 $ 9,188 $ — $ 9,188 $ — U. S. government agencies 23,298 — 23,298 — States and political subdivisions 67,639 — 67,639 — Mortgage-backed - residential 126,482 — 126,482 — Mortgage-backed-commercial 74,551 — 74,551 — Asset-backed 51,311 — 51,311 — Other 1,025 1,025 Derivatives 501 — 501 — Equity Securities 298 298 — — Total $ 354,293 $ 298 $ 353,995 $ — Financial Liabilities Derivatives $ 2,350 $ — $ 2,350 $ — Fair Value Measurements at December 31, 2019 Using : 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 48 48 Equity Securities 292 292 — — Total $ 265,670 $ 292 $ 265,378 $ — Financial Liabilities Derivatives $ 164 $ — $ 164 $ —
Schedule of assets measured at fair value on a non-recurring basis	Fair Value Measurements at December 31, 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: 1-4 family residential $ 799 $ — $ — $ 799 Multi-family residential 1,217 — — 1,217 Non-farm residential 899 — — 899 Agricultural 694 — — 694 Other real estate owned, net: Real estate mortgage: 1-4 family residential 73 — — 73 Commercial 145 — — 145 Agricultural 233 — — 233 Mortgage servicing rights 1,459 — — 1,459 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 December 31, 2020 Fair Valuation Unobservable (Weighted (In thousands) Value Technique(s) Input(s) Average) Impaired loans Real estate mortgage: 1-4 family residential $ 799 sales comparison adjustment for differences between the comparable sales 15%-15% (15%) Multi-family residential 1,217 income approach capitalization rate 7% - 7% (7)% Non-farm residential 899 sales comparison adjustment for differences between the comparable sales 50% -50% (50)% Agricultural 694 sales comparison adjustment for differences between the comparable sales 100% - 100% (100)% Other real estate owned: Real estate mortgage: 1-4 family residential 73 sales comparison adjustment for differences between the comparable sales 23% - 27% (30)% Commercial 145 sales comparison adjustment for differences between the comparable sales 15%-15% (15%) Agricultural 233 sales comparison adjustment for differences between the comparable sales 0% - 26% (14)% Mortgage servicing rights 1,459 discounted cash flow constant prepayment rates 12% - 29% (19)% 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 ( (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	December 31, 2020: Carrying (in thousands) Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 38,974 $ 38,974 $ — $ — $ 38,974 Interest bearing time deposits 2,470 2,470 — — 2,470 Securities available for sale 353,494 — 353,494 — 353,494 Loans held for sale 4,427 — 4,532 — 4,532 Net Loans 756,974 — — 763,914 763,914 Federal Home Loan Bank stock 7,072 — — — N/A Interest receivable 5,227 — 1,057 4,170 5,227 Derivative and financial instruments 501 — 501 — 501 Equity securities 298 298 — — 298 Financial liabilities Total deposits $ 978,604 $ 807,383 $ 171,892 $ — $ 979,275 Repurchase agreements 9,129 — 9,129 — 9,129 Short-term Federal Home Loan Bank advances 10,500 — 10,500 — 10,500 Long-term Federal Home Loan Bank advances 86,032 — 88,332 — 88,332 Subordinated debentures 7,217 — — 7,214 7,214 Interest payable 775 — 765 10 775 Derivative and financial instruments 2,350 — 2,350 — 2,350 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 48 — 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 and financial instruments 164 — 164 — 164

OFF-BALANCE SHEET ACTIVITIES _2

OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS (Tables)	12 Months Ended
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS (Tables)	Dec. 31, 2020
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Schedule of financial instruments with off-balance sheet risk	12/31/2020 12/31/2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ — $ 146,200 $ — $ 117,265 Commitments to make loans 25,052 17,782 1,810 26,933 Letters of credit — 402 — 461

CAPITAL REQUIREMENTS (Tables)

CAPITAL REQUIREMENTS (Tables)	12 Months Ended
CAPITAL REQUIREMENTS (Tables)	Dec. 31, 2020
CAPITAL REQUIREMENTS
Schedule of Company's and the Bank's actual amounts and ratios	To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2020 Bank Only Tier I Capital (to Average Assets) $ 107,805 9.0 $ 96,258 8.0 $ 96,258 8.0 December 31, 2019 Bank Only Total Capital (to Risk-Weighted Assets) $ 111,294 14.7 % $ 60,584 8.0 % $ 75,731 10.0 % Tier I Capital (to Risk-Weighted Assets) 102,759 13.6 45,438 6.0 60,584 8.0 Common Equity Tier 1 Capital (to Risk-Weighted Assets) 102,759 13.6 34,079 4.5 49,225 6.5 Tier I Capital (to Average Assets) 102,759 9.3 44,164 4.0 55,206 5.0

PARENT COMPANY FINANCIAL STAT_2

PARENT COMPANY FINANCIAL STATEMENTS (Tables)	12 Months Ended
PARENT COMPANY FINANCIAL STATEMENTS (Tables)	Dec. 31, 2020
PARENT COMPANY FINANCIAL STATEMENTS
Schedule of condensed balance sheets	2020 2019 (In Thousands) ASSETS Cash on deposit with subsidiaries $ 8,804 $ 6,048 Investment in subsidiaries 126,125 119,804 Other assets 640 642 Total assets $ 135,569 $ 126,494 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Subordinated debentures $ 7,217 $ 7,217 Other Liabilities 10 14 Stockholders’ equity Preferred stock — — Common stock 21,996 21,447 Retained earnings 104,319 96,903 Accumulated other comprehensive income 2,027 913 Total liabilities and stockholders’ equity $ 135,569 $ 126,494
Schedule of condensed statements of income and comprehensive income	2020 2019 (In Thousands) Income Dividends from subsidiary $ 7,425 $ 8,140 Securities gains (losses), net — — Total income 7,425 8,140 Expenses Interest expense 268 505 Other expenses 372 291 Total expenses 640 796 Income before income taxes and equity in undistributed income of subsidiary 6,785 7,344 Applicable income tax benefits 165 569 Income before equity in undistributed income of subsidiary 6,950 7,913 Equity in undistributed income of subsidiaries 4,747 5,240 Net income $ 11,697 $ 13,153 Comprehensive income (loss) $ 12,811 $ 17,544
Schedule of condensed statements of cash flows	2020 2019 (In Thousands) Cash flows from operating activities Net income $ 11,697 $ 13,153 Adjustments to reconcile net income to net cash from operating activities Equity in undistributed earnings of subsidiary (4,747) (5,240) Change in other assets 2 (414) Change in other liabilities (4) (2) Net cash from operating activities 6,948 7,497 Cash flows from financing activities Payments on note payable — (2,718) Dividends paid (4,281) (4,045) Proceeds from issuance of common stock 89 65 Purchase of common stock — (1,544) Net cash from financing activities (4,192) (8,242) Net change in cash 2,756 (745) Cash at beginning of year 6,048 6,793 Cash at end of year $ 8,804 $ 6,048

QUARTERLY FINANCIAL DATA (UNA_2

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	Dec. 31, 2020
QUARTERLY FINANCIAL DATA (UNAUDITED)
Schedule of quarterly financial data (unaudited)	Interest Net Interest Net Earnings Per Share Income Income Income Basic Fully Diluted 2020 First quarter $ 11,135 $ 8,992 $ 1,751 $ 0.30 $ 0.30 Second quarter 10,878 9,082 3,073 0.51 0.51 Third quarter 10,184 8,709 3,352 0.57 0.57 Fourth quarter 10,488 9,199 3,521 0.59 0.59 2019 First quarter $ 11,179 $ 8,939 $ 2,811 $ 0.47 $ 0.47 Second quarter 11,360 9,059 3,237 0.54 0.54 Third quarter 11,512 9,310 3,616 0.61 0.61 Fourth quarter 11,481 9,241 3,489 0.59 0.59

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)payment	Dec. 31, 2019USD ($)
Loans
Financing receivable approved modifications, deferment due to coronavirus aid relief and economic security cares act			$ 1,700
Loans allocation through the Small Business Administration as Paycheck Protection Program			130,100
Loans originated by the bank via the Paycheck Protection Program (PPP)			$ 1,700
Additional amount approved by Congress via the Paycheck Protection Program	$ 115,000	$ 125,300
Period for which federal funds are sold generally			1 day
Number of days delinquent for discontinuation of interest income on loans			90 days
Minimum number of consecutive payments made on a timely basis before returning a loan to accrual status \| payment			6
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
Mortgage Servicing Rights
Servicing fees			$ 630	$ 543
Period of historical loss experience used to determine general components of allowance for loan losses			5 years
Consumer
Loans
Number of days delinquent for discontinuation of interest income on loans			120 days
Commercial
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	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investments in Limited Partnerships
Investment	$ 3,100	$ 4,200
Amortization expense	$ 1,200	$ 635
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	Dec. 31, 2020	Dec. 31, 2019
Operating lease assets	$ 7,670	$ 8,195
Operating lease liability	7,850	$ 8,350
ASU 2016-02
Operating lease assets	7,700
Operating lease liability	$ 7,900

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES, INTANGIBLE ASSETS AND SEGMENTS (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)segment$ / shares	Jan. 27, 2021$ / shares	Dec. 31, 2019$ / shares
Income Taxes
Tax benefit \| $	$ 0
Common stock, par value (in dollars per share)	$ 0		$ 0
Operating Segments
Number of reportable operating segments \| segment	1
Minimum
Intangible Assets
Useful life of core deposit intangible assets	10 years
Maximum
Intangible Assets
Useful life of core deposit intangible assets	15 years
Subsequent Events \| Merger Agreement With Stock Yard Bancorp Inc
Income Taxes
Common stock, par value (in dollars per share)		$ 0.64
Cash consideration per share (in dollars per share)		$ 4.75

RESTRICTIONS ON CASH AND DUE _2

RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
RESTRICTIONS ON CASH AND DUE FROM BANKS
Reserve requirement	$ 0	$ 4,500,000

SECURITIES AVAILABLE FOR SALE_2

SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	$ 349,115	$ 264,234
Gross Unrealized Gains	5,256	1,819
Gross Unrealized Losses	(877)	(723)
Securities available for sale	353,494	265,330
Total, Fair value	353,494	265,330
U.S. treasury notes
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	9,075	9,165
Gross Unrealized Gains	113	3
Securities available for sale	9,188	9,168
U.S. government agencies
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	23,185	23,716
Gross Unrealized Gains	144	60
Gross Unrealized Losses	(31)	(41)
Securities available for sale	23,298	23,735
States and political subdivisions
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	65,665	31,950
Gross Unrealized Gains	1,977	661
Gross Unrealized Losses	(3)	(22)
Securities available for sale	67,639	32,589
Mortgage-backed - residential
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	124,941	113,629
Gross Unrealized Gains	1,728	634
Gross Unrealized Losses	(187)	(272)
Securities available for sale	126,482	113,991
Mortgage-backed - commercial
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	73,573	50,092
Gross Unrealized Gains	1,179	406
Gross Unrealized Losses	(201)	(147)
Securities available for sale	74,551	50,351
Asset-backed
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	51,676	35,682
Gross Unrealized Gains	90	55
Gross Unrealized Losses	(455)	(241)
Securities available for sale	51,311	$ 35,496
Other
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	1,000
Gross Unrealized Gains	25
Securities available for sale	$ 1,025

SECURITIES AVAILABLE FOR SALE -

SECURITIES AVAILABLE FOR SALE - AMORTIZED COST AND FAIR VALUE BY CONTRACTUAL MATURITY (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 5,191
Due after one year through five years	20,130
Due after five years through ten years	35,646
Due after ten years	37,958
Securities due at a single maturity date	98,925
Available-for-sale debt securities, Amortized Cost	349,115	$ 264,234
Fair Value
Due in one year or less	5,239
Due after one year through five years	20,358
Due after five years through ten years	36,526
Due after ten years	39,027
Securities due at a single maturity date	101,150
Available-for-sale debt securities, fair value	353,494	265,330
Total, Fair value	353,494	265,330
Sales of securities
Proceeds from sales of securities, available for sale	17,096	79,561
Gross gains realized on sales of securities	388	896
Gross losses realized on sales of securities	43	39
Tax provision related to realized net gains or losses	72	180
Debt Securities, Available-for-sale, Restricted	223,600	190,700
Mortgage-backed - residential
Amortized Cost
Available-for-sale debt securities, Amortized Cost	124,941	113,629
Fair Value
Available-for-sale debt securities, fair value	126,482	113,991
Mortgage-backed - commercial
Amortized Cost
Available-for-sale debt securities, Amortized Cost	73,573	50,092
Fair Value
Available-for-sale debt securities, fair value	74,551	50,351
Asset-backed
Amortized Cost
Available-for-sale debt securities, Amortized Cost	51,676	35,682
Fair Value
Available-for-sale debt securities, fair value	$ 51,311	$ 35,496

SECURITIES AVAILABLE FOR SALE_3

SECURITIES AVAILABLE FOR SALE - UNREALIZED LOSSES (Details) $ in Thousands	Dec. 31, 2020USD ($)item	Dec. 31, 2019USD ($)
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 77,005	$ 67,294
Less than 12 Months, Unrealized Loss	(633)	(325)
12 Months or More, Fair Value	28,503	37,765
12 Months or More, Unrealized Loss	(244)	(398)
Total, Fair Value	105,508	105,059
Total, Unrealized Loss	(877)	(723)
U.S. government agencies
Securities with unrealized losses
Less than 12 Months, Fair Value	8,432	6,171
Less than 12 Months, Unrealized Loss	(18)	(18)
12 Months or More, Fair Value	851	4,396
12 Months or More, Unrealized Loss	(13)	(23)
Total, Fair Value	9,283	10,567
Total, Unrealized Loss	$ (31)	(41)
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions \| item	4
Amortized cost (as a percent)	0.30%
States and political subdivisions
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 333	859
Less than 12 Months, Unrealized Loss	(3)	(3)
12 Months or More, Fair Value		1,199
12 Months or More, Unrealized Loss		(19)
Total, Fair Value	333	2,058
Total, Unrealized Loss	$ (3)	(22)
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions \| item	1
Amortized cost (as a percent)	0.80%
Mortgage-backed - residential
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 32,440	32,718
Less than 12 Months, Unrealized Loss	(187)	(129)
12 Months or More, Fair Value		14,583
12 Months or More, Unrealized Loss		(143)
Total, Fair Value	32,440	47,301
Total, Unrealized Loss	$ (187)	(272)
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions \| item	15
Amortized cost (as a percent)	0.60%
Mortgage-backed - commercial
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 19,852	5,760
Less than 12 Months, Unrealized Loss	(189)	(25)
12 Months or More, Fair Value	5,087	10,625
12 Months or More, Unrealized Loss	(12)	(122)
Total, Fair Value	24,939	16,385
Total, Unrealized Loss	$ (201)	(147)
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions \| item	8
Amortized cost (as a percent)	0.80%
Asset-backed
Securities with unrealized losses
Less than 12 Months, Fair Value	$ 15,948	21,786
Less than 12 Months, Unrealized Loss	(236)	(150)
12 Months or More, Fair Value	22,565	6,962
12 Months or More, Unrealized Loss	(219)	(91)
Total, Fair Value	38,513	28,748
Total, Unrealized Loss	$ (455)	$ (241)
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions \| item	17
Amortized cost (as a percent)	1.20%

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020	Jun. 30, 2020
Loans
Loans	$ 766,871	$ 744,313
Recognized income	36,456	37,039
Loans Insured or Guaranteed by US Government Authorities [Member]
Loans
Deferred fee income	744
Recognized income	894
Commercial
Loans
Loans	117,425	86,552
Real estate Construction
Loans
Loans	14,571	32,219
1-4 family residential
Loans
Loans	293,136	291,419
Multi-family residential
Loans
Loans	47,854	48,622
Non-farm & non-residential
Loans
Loans	218,998	204,908
Agricultural
Loans
Loans	52,239	57,166
Consumer
Loans
Loans	22,532	23,122
Other
Loans
Loans	116	$ 305
Commercial Portfolio Segment [Member] \| Commercial
Loans
Loans	0
Commercial Portfolio Segment [Member] \| Commercial \| Loans Insured or Guaranteed by US Government Authorities [Member]
Loans
Loans	$ 41,400		$ 57,600	$ 56,800

LOANS - ACTIVITY IN ALLOWANCE (

LOANS - ACTIVITY IN ALLOWANCE (Details) - USD ($)	12 Months Ended
LOANS - ACTIVITY IN ALLOWANCE (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Activity in allowance for loan losses
Beginning Balance	$ 8,460,000	$ 8,127,000
Charge-offs	(1,149,000)	(1,743,000)
Recoveries	811,000	826,000
Provision	1,775,000	1,250,000
Ending Balance	9,897,000	8,460,000
Commercial
Activity in allowance for loan losses
Beginning Balance	920,000	1,159,000
Charge-offs	(25,000)	(260,000)
Recoveries	17,000	21,000
Provision	14,000
Ending Balance	926,000	920,000
Real estate Construction
Activity in allowance for loan losses
Beginning Balance	551,000	414,000
Provision	(274,000)	137,000
Ending Balance	277,000	551,000
1-4 family residential
Activity in allowance for loan losses
Beginning Balance	2,901,000	2,605,000
Charge-offs	(37,000)	(168,000)
Recoveries	40,000	19,000
Provision	306,000	445,000
Ending Balance	3,210,000	2,901,000
Multi-family residential
Activity in allowance for loan losses
Beginning Balance	807,000	733,000
Recoveries		15,000
Provision	83,000	59,000
Ending Balance	890,000	807,000
Non-farm & non-residential
Activity in allowance for loan losses
Beginning Balance	1,643,000	1,649,000
Charge-offs		(17,000)
Recoveries	5,000
Provision	1,298,000	11,000
Ending Balance	2,946,000	1,643,000
Agricultural
Activity in allowance for loan losses
Beginning Balance	389,000	420,000
Recoveries	8,000	8,000
Provision	52,000	(39,000)
Ending Balance	449,000	389,000
Consumer
Activity in allowance for loan losses
Beginning Balance	506,000	410,000
Charge-offs	(325,000)	(397,000)
Recoveries	54,000	39,000
Provision	290,000	454,000
Ending Balance	525,000	506,000
Other
Activity in allowance for loan losses
Beginning Balance	43,000	58,000
Charge-offs	(762,000)	(901,000)
Recoveries	687,000	724,000
Provision	76,000	162,000
Ending Balance	44,000	43,000
Unallocated
Activity in allowance for loan losses
Beginning Balance	700,000	679,000
Provision	(70,000)	21,000
Ending Balance	$ 630,000	$ 700,000

LOANS - ALLOWANCE FOR LOAN LOSS

LOANS - ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans
Accrued interest receivable	$ 4,100,000	$ 3,100,000
Allowance for Loan Losses:
Individually Evaluated for Impairment	1,030,000	52,000
Collectively Evaluated for Impairment	8,867,000	8,408,000
Total	9,897,000	8,460,000	$ 8,127,000
Loans:
Individually Evaluated for Impairment	9,509,000	4,509,000
Collectively Evaluated for Impairment	757,362,000	739,804,000
Total	766,871,000	744,313,000
Commercial
Allowance for Loan Losses:
Collectively Evaluated for Impairment	926,000	920,000
Total	926,000	920,000	1,159,000
Loans:
Collectively Evaluated for Impairment	117,425,000	86,552,000
Total	117,425,000	86,552,000
Real estate Construction
Allowance for Loan Losses:
Collectively Evaluated for Impairment	277,000	551,000
Total	277,000	551,000	414,000
Loans:
Individually Evaluated for Impairment		374,000
Collectively Evaluated for Impairment	14,571,000	31,845,000
Total	14,571,000	32,219,000
1-4 family residential
Allowance for Loan Losses:
Individually Evaluated for Impairment	5,000	2,000
Collectively Evaluated for Impairment	3,205,000	2,899,000
Total	3,210,000	2,901,000	2,605,000
Loans:
Individually Evaluated for Impairment	804,000	202,000
Collectively Evaluated for Impairment	292,332,000	291,217,000
Total	293,136,000	291,419,000
Multi-family residential
Allowance for Loan Losses:
Individually Evaluated for Impairment	75,000	50,000
Collectively Evaluated for Impairment	815,000	757,000
Total	890,000	807,000	733,000
Loans:
Individually Evaluated for Impairment	1,292,000	1,292,000
Collectively Evaluated for Impairment	46,562,000	47,330,000
Total	47,854,000	48,622,000
Non-farm & non-residential
Allowance for Loan Losses:
Individually Evaluated for Impairment	900,000
Collectively Evaluated for Impairment	2,046,000	1,643,000
Total	2,946,000	1,643,000	1,649,000
Loans:
Individually Evaluated for Impairment	3,654,000	1,799,000
Collectively Evaluated for Impairment	215,344,000	203,109,000
Total	218,998,000	204,908,000
Agricultural
Allowance for Loan Losses:
Individually Evaluated for Impairment	50,000
Collectively Evaluated for Impairment	399,000	389,000
Total	449,000	389,000	420,000
Loans:
Individually Evaluated for Impairment	3,759,000	842,000
Collectively Evaluated for Impairment	48,480,000	56,324,000
Total	52,239,000	57,166,000
Consumer
Allowance for Loan Losses:
Collectively Evaluated for Impairment	525,000	506,000
Total	525,000	506,000	410,000
Loans:
Collectively Evaluated for Impairment	22,532,000	23,122,000
Total	22,532,000	23,122,000
Other
Allowance for Loan Losses:
Collectively Evaluated for Impairment	44,000	43,000
Total	44,000	43,000	58,000
Loans:
Collectively Evaluated for Impairment	116,000	305,000
Total	116,000	305,000
Unallocated
Allowance for Loan Losses:
Collectively Evaluated for Impairment	630,000	700,000
Total	630,000	$ 700,000	$ 679,000
Commercial Portfolio Segment [Member] \| Commercial
Loans:
Total	$ 0

LOANS - INDIVIDUALLY EVALUATED

LOANS - INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Unpaid Principal Balance
Total	$ 9,509	$ 4,509
Recorded Investment
Total	9,509	4,509
Allowance for Loan Losses Allocated.	1,030	52
Average Recorded Investment
Total	6,823	3,639
Interest Income Recognized
Total	188	124
Cash Basis Interest Recognized
Total	188	124
Real estate Construction
Unpaid Principal Balance
With no related allowance recorded		374
Recorded Investment
With no related allowance recorded		374
Average Recorded Investment
With no related allowance recorded		374
1-4 family residential
Unpaid Principal Balance
With an allowance recorded	804	202
Recorded Investment
With an allowance recorded	804	202
Allowance for Loan Losses Allocated.	5	2
Average Recorded Investment
With an allowance recorded	503	603
Interest Income Recognized
With an allowance recorded	7	35
Cash Basis Interest Recognized
With an allowance recorded	7	35
Multi-family residential
Unpaid Principal Balance
With an allowance recorded	1,292	1,292
Recorded Investment
With an allowance recorded	1,292	1,292
Allowance for Loan Losses Allocated.	75	50
Average Recorded Investment
With an allowance recorded	1,292	646
Interest Income Recognized
With an allowance recorded		54
Cash Basis Interest Recognized
With an allowance recorded		54
Non-farm & non-residential
Unpaid Principal Balance
With no related allowance recorded	1,855	1,799
With an allowance recorded	1,799
Recorded Investment
With no related allowance recorded	1,855	1,799
With an allowance recorded	1,799
Allowance for Loan Losses Allocated.	900
Average Recorded Investment
With no related allowance recorded	928	1,013
With an allowance recorded	1,799
Interest Income Recognized
With no related allowance recorded	44	17
Cash Basis Interest Recognized
With no related allowance recorded	44	17
Agricultural
Unpaid Principal Balance
With no related allowance recorded	3,709	842
With an allowance recorded	50
Recorded Investment
With no related allowance recorded	3,709	842
With an allowance recorded	50
Allowance for Loan Losses Allocated.	50
Average Recorded Investment
With no related allowance recorded	2,276	1,003
With an allowance recorded	25
Interest Income Recognized
With no related allowance recorded	137	18
Cash Basis Interest Recognized
With no related allowance recorded	$ 137	$ 18

LOANS - NONACCRUAL, LOANS PAST

LOANS - NONACCRUAL, LOANS PAST DUE OVER 89 DAYS STILL ACCRUING AND TDR (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans
Nonaccrual	$ 4,051	$ 3,081
Loans Past Due Over 89 Days Still Accruing	75	1,499
Troubled Debt Restructurings	$ 1,145
Percentage of nonaccrual loans secured by real estate	98.20%
Commercial
Loans
Nonaccrual	$ 56
Loans Past Due Over 89 Days Still Accruing	47
Real estate Construction
Loans
Nonaccrual	124	374
1-4 family residential
Loans
Nonaccrual	638	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	1,813	1,799
Loans Past Due Over 89 Days Still Accruing		121
Agricultural
Loans
Nonaccrual	110
Loans Past Due Over 89 Days Still Accruing		7
Troubled Debt Restructurings	1,145
Consumer
Loans
Nonaccrual	18	63
Loans Past Due Over 89 Days Still Accruing	$ 28	$ 32

LOANS - AGING OF RECORDED INVES

LOANS - AGING OF RECORDED INVESTMENT IN PAST DUE AND NON-ACCRUAL LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	$ 75	$ 1,499
Non-accrual	4,051	3,081
Total Past Due and Non-accrual	7,386	9,139
Loans Not Past Due	759,485	735,174
30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	2,249	4,224
60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	1,011	335
Commercial
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	47
Non-accrual	56
Total Past Due and Non-accrual	458	351
Loans Not Past Due	116,967	86,201
Commercial \| 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	352	326
Commercial \| 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	3	25
Real estate Construction
Aging of recorded investment in past due and non-accrual loans
Non-accrual	124	374
Total Past Due and Non-accrual	124	374
Loans Not Past Due	14,447	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	638	845
Total Past Due and Non-accrual	2,857	3,900
Loans Not Past Due	290,279	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	1,360	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	859	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	46,562	47,330
Non-farm & non-residential
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due		121
Non-accrual	1,813	1,799
Total Past Due and Non-accrual	2,114	2,241
Loans Not Past Due	216,884	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	194	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	107	19
Agricultural
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due		7
Non-accrual	110
Total Past Due and Non-accrual	313	711
Loans Not Past Due	51,926	56,455
Agricultural \| 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	203	704
Consumer
Aging of recorded investment in past due and non-accrual loans
Greater than 89 Days Past Due	28	32
Non-accrual	18	63
Total Past Due and Non-accrual	228	270
Loans Not Past Due	22,304	22,852
Consumer \| 30 to 59 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	140	158
Consumer \| 60 to 89 Days Past Due
Aging of recorded investment in past due and non-accrual loans
Recorded Investment Past Due	42	17
Other
Aging of recorded investment in past due and non-accrual loans
Loans Not Past Due	$ 116	$ 305

LOANS - TROUBLED DEBT RESTRUCTU

LOANS - TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
LOANS
Troubled Debt Restructurings			$ 1,145
Number of loans that met the definition of troubled debt restructurings \| loan			1
Allowance for loan losses relating to TDR			$ 0
Trouble debt restructuring defaulted on payment				$ 0	$ 0
Financing receivable approved modifications on outstanding loan balances due to The Coronavirus Aid, Relief and Economic Security ("CARES") Act	$ 115,000	$ 125,300	130,100
Financing receivable approved modifications, deferment due to coronavirus aid relief and economic security cares act			$ 1,700

LOANS - RISK CATEGORY OF LOANS

LOANS - RISK CATEGORY OF LOANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Credit Quality Indicators
Loans	$ 766,871	$ 744,313
Maximum outstanding balance of non-consumer loans evaluated similar to consumer loans	200
Activity with respect to all director and executive officer loans
Balance, beginning of year	1,333	828
New loans	372	138
Effect of changes in composition of related parties		783
Repayments	(610)	(416)
Balance, end of year	1,095	1,333
Pass
Credit Quality Indicators
Loans	713,447	687,370
Special Mention
Credit Quality Indicators
Loans	18,342	23,348
Substandard
Credit Quality Indicators
Loans	10,635	10,164
Doubtful
Credit Quality Indicators
Loans	1,799	4
Commercial
Credit Quality Indicators
Loans	117,425	86,552
Commercial \| Pass
Credit Quality Indicators
Loans	113,402	83,515
Commercial \| Special Mention
Credit Quality Indicators
Loans	3,896	2,785
Commercial \| Substandard
Credit Quality Indicators
Loans	127	252
Real estate Construction
Credit Quality Indicators
Loans	14,571	32,219
Real estate Construction \| Pass
Credit Quality Indicators
Loans	14,447	30,462
Real estate Construction \| Special Mention
Credit Quality Indicators
Loans		1,363
Real estate Construction \| Substandard
Credit Quality Indicators
Loans	124	394
1-4 family residential
Credit Quality Indicators
Loans	293,136	291,419
1-4 family residential \| Pass
Credit Quality Indicators
Loans	286,925	283,048
1-4 family residential \| Special Mention
Credit Quality Indicators
Loans	2,309	3,435
1-4 family residential \| Substandard
Credit Quality Indicators
Loans	3,902	4,932
1-4 family residential \| Doubtful
Credit Quality Indicators
Loans		4
Multi-family residential
Credit Quality Indicators
Loans	47,854	48,622
Multi-family residential \| Pass
Credit Quality Indicators
Loans	45,974	43,193
Multi-family residential \| Special Mention
Credit Quality Indicators
Loans	588	4,137
Multi-family residential \| Substandard
Credit Quality Indicators
Loans	1,292	1,292
Non-farm & non-residential
Credit Quality Indicators
Loans	218,998	204,908
Non-farm & non-residential \| Pass
Credit Quality Indicators
Loans	207,050	195,800
Non-farm & non-residential \| Special Mention
Credit Quality Indicators
Loans	8,261	7,169
Non-farm & non-residential \| Substandard
Credit Quality Indicators
Loans	1,888	1,939
Non-farm & non-residential \| Doubtful
Credit Quality Indicators
Loans	1,799
Agricultural
Credit Quality Indicators
Loans	52,239	57,166
Agricultural \| Pass
Credit Quality Indicators
Loans	45,649	51,352
Agricultural \| Special Mention
Credit Quality Indicators
Loans	3,288	4,459
Agricultural \| Substandard
Credit Quality Indicators
Loans	3,302	1,355
Consumer
Credit Quality Indicators
Loans	22,532	23,122
Consumer \| Non-performing
Credit Quality Indicators
Loans	$ 46	$ 95
Minimum period past due for loans to be considered as non-performing	89 days

LOANS - LOAN SERVICING (Details

LOANS - LOAN SERVICING (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS - LOAN SERVICING (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loan Servicing
Unpaid principal balances of mortgage loans serviced	$ 269,900	$ 227,200
Custodial escrow balances	1,200	1,300
Servicing Rights:
Beginning balance	1,573	1,536
Additions	1,043	441
Amortization	(590)	(333)
Change in valuation allowance	(414)	(71)
Ending balance	1,612	1,573
Valuation Allowance:
Beginning balance	110	39
Additions expensed	420	155
Reductions credited to operations	(6)	(84)
Ending balance	524	110
Fair value of servicing rights	$ 1,900	$ 2,000
Assumptions used in determination of fair value
Discount rate (as a percent)	12.00%	12.00%
Weighted average amortization period	23 years
Estimated amortization expense for each of the next five years
2021	$ 141
2022	126
2023	112
2024	102
2025	$ 96
Minimum
Assumptions used in determination of fair value
Prepayment speeds (as a percent)	12.00%	8.80%
Default rates (as a percent)	0.10%	0.10%
Maximum
Assumptions used in determination of fair value
Prepayment speeds (as a percent)	29.10%	19.90%
Default rates (as a percent)		0.90%

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Premises and equipment
Premises and equipment, gross	$ 47,031	$ 44,742
Less accumulated depreciation	(26,656)	(25,313)
Property, Plant and Equipment, Net, Total	20,375	19,429
Depreciation expense	1,300	1,200
Land and buildings
Premises and equipment
Premises and equipment, gross	25,748	22,780
Furniture and equipment
Premises and equipment
Premises and equipment, gross	$ 21,283	20,028
Construction projects
Premises and equipment
Premises and equipment, gross		$ 1,934

LEASES (Details)

LEASES (Details)	12 Months Ended
LEASES (Details)	Dec. 31, 2020USD ($)lease
LEASES
Number of operating leases	6
Number of buildings leases	2
Number of land leases	4
Options to renew	true
FHLB fixed rate advance rate \| $	$ 0.0450

LEASES - Balance Sheets (Detail

LEASES - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Balance Sheets
Gross Carrying Amount	$ 8,631	$ 8,857
Accumulated Amortization	(961)	(662)
Net Book Value	$ 7,670	$ 8,195
Financial position	us-gaap:OperatingLeaseRightOfUseAsset	us-gaap:OperatingLeaseRightOfUseAsset
Right of use lease obligations	$ 7,850	$ 8,350
Financial position	us-gaap:OperatingLeaseLiability	us-gaap:OperatingLeaseLiability

LEASES - Other (Details)

LEASES - Other (Details)	Dec. 31, 2020	Dec. 31, 2019
LEASES
Weighted-average remaining lease term for operating leases	34 years 8 months 12 days	35 years 4 months 24 days
Weighted-average discount rate for operating leases	4.14%	4.14%

LEASES - Lease Cost and Other i

LEASES - Lease Cost and Other information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
LEASES
Operating lease cost	$ 559	$ 555
Total lease cost	559	555
Operating cash flows from operating leases	$ 526	$ 350

LEASES - Future minimum payment

LEASES - Future minimum payments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Future minimum payments
2021	$ 521
2022	527
2023	531
2024	545
2025	509
Thereafter	18,339
Total undiscounted lease payments	20,972
Amounts representing interest	(13,122)
Operating lease liability	$ 7,850	$ 8,350

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Change in balance for goodwill
Goodwill, Beginning Balance	$ 14,001	$ 14,001
Goodwill, Ending Balance	14,001	14,001
Amortized intangible assets:
Core deposit intangibles, Gross Carrying Amount	800	800
Accumulated Amortization	738	664
Aggregate amortization expense	74	$ 102
Estimated amortization expense for each of the next five years
2021	45
2022	$ 17

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
DEPOSITS
Time deposits of $250,000 or more	$ 36,192	$ 43,345
Scheduled maturities of time deposits for the next five years
2021	132,510
2022	21,479
2023	7,675
2024	5,693
2025	3,749
Related Party Deposits
Deposits of directors and executive officers of the company and companies in which they have beneficial ownership	$ 2,500	$ 2,800

REPURCHASE AGREEMENTS (Details)

REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Repurchase agreements and other borrowings
Repurchase agreements	$ 9,129	$ 5,994
Repurchase agreements
Repurchase agreements and other borrowings
Repurchase agreements	14,700	12,100
Average daily balance during the year	$ 6,773	$ 6,996
Average interest rate during the year (as a percent)	0.36%	0.53%
Maximum month-end balance during the year	$ 10,924	$ 8,947
Weighted average interest rate at year end (as a percent)	0.26%	0.50%
Repurchase agreements \| Minimum
Repurchase agreements and other borrowings
Maturity term	1 day
Repurchase agreements \| Maximum
Repurchase agreements and other borrowings
Maturity term	5 months

FEDERAL HOME LOAN BANK ADVANC_3

FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Maturities in February 2021, fixed rates from 0.24% to 0.65% with a weighted-average rate of 0.44% as of 12/31/20 and 1.80% as of 12/31/19	$ 10,500	$ 25,000
Maturities range from June 2021 through November 2028, fixed rates from 0.79% to 5.37%, with a weighted-average rate of 1.99% as of 12/31/20 and 2.13% as of 12/31/19	86,032	91,418
Federal home loan bank stock maximum amount eligible to borrow	110,100
Scheduled principal payments due on advances
2021	29,743
2022	23,493
2023	19,438
2024	18,792
2025	2,630
Thereafter	2,436
Long-term Federal Home Loan Bank Advances, Total	96,532
Short- term advances
Maturities in February 2021, fixed rates from 0.24% to 0.65% with a weighted-average rate of 0.44% as of 12/31/20 and 1.80% as of 12/31/19	$ 10,500	$ 25,000
Weighted-average rate (as a percent)	0.44%	1.80%
Long- term advances
Maturities range from June 2021 through November 2028, fixed rates from 0.79% to 5.37%, with a weighted-average rate of 1.99% as of 12/31/20 and 2.13% as of 12/31/19	$ 86,032	$ 91,418
Weighted-average rate (as a percent)	1.99%	2.13%
Maximum \| Short- term advances
Fixed rate (as a percent)	0.65%
Maximum \| Long- term advances
Fixed rate (as a percent)	5.37%
Minimum \| Short- term advances
Fixed rate (as a percent)	0.24%
Minimum \| Long- term advances
Fixed rate (as a percent)	0.79%

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	12 Months Ended
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Aug. 31, 2003
OTHER BORROWINGS
Subordinated debentures	$ 7,217	$ 7,217
Kentucky Bancshares, Statutory Trust I
OTHER BORROWINGS
Trust common securities			$ 217
Trust preferred securities			$ 7,000
Kentucky Bancshares, Statutory Trust I \| Subordinated debentures
OTHER BORROWINGS
Subordinated debentures	$ 7,200
Fixed interest rate for the first 5 years (as a percent)	7.06%
Period of fixed interest rate	5 years
Variable interest rate base	3 month LIBOR
Variable interest rate starting September 2008 (as a percent)	3.23%
Redemption price as a percentage of face value	100.00%
Kentucky Bancshares, Statutory Trust I \| Subordinated debentures \| LIBOR
OTHER BORROWINGS
Basis spread on the variable rate basis (as a percent)	3.00%
Kentucky Bancshares, Statutory Trust I \| Subordinated debentures \| Maximum
OTHER BORROWINGS
Period of interest payments that may be deferred	5 years

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other income
Total	$ 15,975	$ 14,239
ASU 2014-09
Other income
Service charges	4,602	5,368
Trust department income	1,441	1,411
Brokerage income	464	543
Debit card interchange income	3,742	3,470
Total	$ 10,249	$ 10,792

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current Expense
Federal	$ 1,147	$ 1,443
Deferred Expense
Federal	(303)	240
State	34	(606)
Income Tax Expense, Total	878	1,077
Deferred tax assets
Allowance for loan losses	2,488	2,129
Other real estate owned	50	35
Nonaccrual loan interest	17	19
Accrued expenses	221	197
Acquisition market value adjustments		9
Low income housing investments	329	212
Unearned income	57	105
Net operating loss	428	407
Derivative from cash flow hedge	431
Operating lease liability	1,959	2,083
Other	325	76
Deferred Tax Assets, Net of Valuation Allowance, Total	6,305	5,272
Deferred tax liabilities
Bank premises and equipment	(1,048)	(619)
FHLB stock	(960)	(960)
Prepaid expenses	(518)	(495)
Mortgage servicing rights	(402)	(383)
Core deposit intangibles	(15)	(31)
Unrealized gain on securities	(1,093)	(265)
Operating lease right of use asset	(1,959)	(2,083)
Other	(17)	(10)
Deferred Tax Liabilities, Gross, Total	(6,012)	(4,846)
Valuation Allowance		(5)
Net deferred tax asset (liability)	$ 293	$ 421

INCOME TAXES - RECONCILIATION O

INCOME TAXES - RECONCILIATION OF EFFECTIVE TAX RATES (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of effective tax rates and federal statutory rates applied to financial statement income
U. S. federal income tax rate (as a percent)	21.00%	21.00%
Changes from the statutory rate
State deferred tax benefit (as a percent)	0.30%	(4.30%)
Tax-exempt interest income (as a percent)	(4.30%)	(3.30%)
Tax-exempt BOLI income (as a percent)	(0.90%)	(0.70%)
Historic and low income tax credits (as a percent)	(7.10%)	(3.90%)
Insurance captive (as a percent)	(1.50%)	(1.10%)
Non-deductible interest expense related to carrying tax-exempt investments (as a percent)	0.20%	0.20%
Other (as a percent)	(0.70%)	(0.30%)
Effective tax rates (as a percent)	7.00%	7.60%

INCOME TAXES - UNRECOGNIZED TAX

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Deferred tax liability not recognized
Deferred tax asset, change in tax rate	$ 607
Amount of temporary difference for which deferred tax liability is not required to be provided	1,300
Unrecorded deferred tax liability	323
Unrecognized Tax Benefits
Interest and penalties	0	$ 0
Accrued Interest and penalties	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Basic and Diluted Earnings Per Share
Net income	$ 3,521	$ 3,352	$ 3,073	$ 1,751	$ 3,489	$ 3,616	$ 3,237	$ 2,811	$ 11,697	$ 13,153
Weighted average common shares outstanding									5,942	5,953
Basic and diluted earnings per share									$ 1.97	$ 2.21

RETIREMENT PLAN (Details)

RETIREMENT PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
RETIREMENT PLAN (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
RETIREMENT PLAN
Expense recognized in connection with the qualified profit sharing plan	$ 970	$ 899

STOCK BASED COMPENSATION - NONV

STOCK BASED COMPENSATION - NONVESTED SHARES (Details)	12 Months Ended
STOCK BASED COMPENSATION - NONVESTED SHARES (Details)	Dec. 31, 2020USD ($)plan$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Stock Based Compensation
Number of share based compensation plans \| plan	2
Compensation cost that has been charged against income \| $	$ 286,000	$ 220,000
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	(90)
Nonvested at the end of the period (in shares)	0	1,580
Weighted-Average Grant-Date Fair Value
Nonvested shares, balance at the beginning of the period \| $	$ 21,606
Vested \| $	$ (21,606)
Nonvested shares, balance at the end of the period \| $		$ 21,606
Fair Value Per Share
Nonvested shares, balance at the beginning of the period (in dollars per share) \| $ / shares	$ 13.67
Vested (in dollars per share) \| $ / shares	$ 13.67
Nonvested shares, balance at the end of the period (in dollars per share) \| $ / 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
Nonvested at the beginning of the period (in shares)	38,482
Granted (in shares)	0	23,380
Vested (in shares)	(14,995)
Forfeited (in shares)	(300)	(1,434)
Nonvested at the end of the period (in shares)	23,187	38,482
Weighted-Average Grant-Date Fair Value
Nonvested shares, balance at the beginning of the period \| $	$ 825,935
Vested \| $	(318,074)
Forfeited \| $	(6,410)
Nonvested shares, balance at the end of the period \| $	$ 501,451	$ 825,935
Fair Value Per Share
Nonvested shares, balance at the beginning of the period (in dollars per share) \| $ / shares	$ 21.46
Vested (in dollars per share) \| $ / shares	21.21
Forfeited (in dollars per share) \| $ / shares	21.37
Nonvested shares, balance at the end of the period (in dollars per share) \| $ / shares	$ 21.63	$ 21.46
Additional disclosures
Unrecognized compensation cost related to nonvested shares granted \| $	$ 280,000
Period over which cost is expected to be recognized	2 years 7 months 6 days
Fair value of shares vested (in dollars) \| $	$ 318,000	$ 176,000
2019 Stock Award Plan
Stock Based Compensation
Number of shares authorized for issuance	300,000
Shares
Granted (in shares)	30,030	0
Vested (in shares)	(2,410)
Forfeited (in shares)	(290)	0
Nonvested at the end of the period (in shares)	27,330
Weighted-Average Grant-Date Fair Value
Granted \| $	$ 693,993
Vested \| $	(55,695)
Forfeited \| $	(6,702)
Nonvested shares, balance at the end of the period \| $	$ 631,596
Fair Value Per Share
Granted (in dollars per share) \| $ / shares	$ 23.11
Vested (in dollars per share) \| $ / shares	23.11
Forfeited (in dollars per share) \| $ / shares	23.11
Nonvested shares, balance at the end of the period (in dollars per share) \| $ / shares	$ 23.11
Additional disclosures
Unrecognized compensation cost related to nonvested shares granted \| $	$ 399,000
Period over which cost is expected to be recognized	4 years 2 months 12 days
Fair value of shares vested (in dollars) \| $	$ 56,000	$ 0

LIMITATION ON BANK DIVIDENDS (D

LIMITATION ON BANK DIVIDENDS (Details) $ in Millions	12 Months Ended
LIMITATION ON BANK DIVIDENDS (Details) $ in Millions	Dec. 31, 2020USD ($)
LIMITATION ON BANK DIVIDENDS
Preceding period of retained net profits that may be paid as dividends without prior approval of the regulatory agency	2 years
Retained net profits of the preceding two years available for dividend distribution by the Bank without prior approval	$ 9.6

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial Assets
Total, Fair value	$ 353,494	$ 265,330
Carrying Value
Financial Assets
Derivatives	501	48
Other Assets	298
Equity Securities		292
Financial Liabilities
Derivatives	2,350	164
Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial Assets
Other Assets	298
Equity Securities		292
Significant Other Observable Inputs (Level 2)
Financial Assets
Derivatives	501	94
Financial Liabilities
Derivatives	2,350	164
Recurring \| Carrying Value
Financial Assets
Equity Securities	298	292
Total, Fair value	354,293	265,670
Financial Liabilities
Derivatives	2,350	164
Recurring \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial Assets
Equity Securities	298	292
Total, Fair value	298	292
Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Total, Fair value	353,995	265,378
Financial Liabilities
Derivatives	2,350	164
U.S. treasury notes \| Recurring \| Carrying Value
Financial Assets
Investments	9,188	9,168
U.S. treasury notes \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	9,188	9,168
U.S. government agencies \| Recurring \| Carrying Value
Financial Assets
Investments	23,298	23,735
U.S. government agencies \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	23,298	23,735
States and political subdivisions \| Recurring \| Carrying Value
Financial Assets
Investments	67,639	32,589
States and political subdivisions \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Investments	67,639	32,589
Mortgage-backed - residential \| Recurring \| Carrying Value
Financial Assets
Mortgage-backed	126,482	113,991
Mortgage-backed - residential \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Mortgage-backed	126,482	113,991
Mortgage-backed - commercial \| Recurring \| Carrying Value
Financial Assets
Mortgage-backed	74,551	50,351
Mortgage-backed - commercial \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Mortgage-backed	74,551	50,351
Asset-backed \| Recurring \| Carrying Value
Financial Assets
Asset-backed	51,311	35,496
Asset-backed \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Asset-backed	51,311	35,496
Other Assets \| Recurring \| Carrying Value
Financial Assets
Other Assets	1,025
Other Assets \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Other Assets	1,025
Derivative \| Recurring \| Carrying Value
Financial Assets
Derivatives	501	48
Derivative \| Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Derivatives	$ 501	$ 48

FAIR VALUE - FAIR VALUE ON NON-

FAIR VALUE - FAIR VALUE ON NON-RECURRING (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)item	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Impaired Loans
Valuation allowance of impaired loans	$ 1,030	$ 52
Provision for loan loss expense	1,775	1,250
Other real estate owned, net:
Outstanding balance of other real estate owned	876	2,148
Loan servicing rights
Mortgage servicing rights	1,612	1,573
Balance of loan servicing rights	1,612	1,573	$ 1,536
Valuation allowance of loan servicing rights	524	110	$ 39
Non-recurring
Impaired Loans
Impaired loans, at fair value	3,600	1,400
Valuation allowance of impaired loans	$ 1,000	$ 52
Number of impaired loans. \| item	4	2
Impaired loans, additional provision for loan losses	$ 955	$ 50
Increased (decreased) in allowance for specific impaired loans	978	(149)
Other real estate owned, net:
Other real estate owned	451	519
Outstanding balance of other real estate owned	928	980
Valuation allowance of other real estate owned	477	461
Write downs of other real estate owned	32	54
Loan servicing rights
Mortgage servicing rights	1,500	1,100
Balance of loan servicing rights	2,000	1,200
Valuation allowance of loan servicing rights	524	110
Write-downs of loan servicing rights	(414)	71
Non-recurring \| Carrying Value \| Mortgage servicing rights
Other real estate owned, net:
Other real estate owned	1,459	1,107
Non-recurring \| Significant Unobservable Inputs (Level 3) \| Mortgage servicing rights
Other real estate owned, net:
Other real estate owned	1,459	1,107
Non-recurring \| 1-4 family residential \| Carrying Value
Impaired Loans
Impaired loans, at fair value	799	200
Other real estate owned, net:
Other real estate owned	73	40
Non-recurring \| 1-4 family residential \| Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	799	200
Other real estate owned, net:
Other real estate owned	73	40
Non-recurring \| Multi-family residential \| Carrying Value
Impaired Loans
Impaired loans, at fair value	1,217	1,242
Non-recurring \| Multi-family residential \| Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	1,217	1,242
Non-recurring \| Non-farm & non-residential
Impaired Loans
Impaired loans, at fair value	1,800
Valuation allowance of impaired loans	$ 900
Number of impaired loans. \| item	1
Non-recurring \| Non-farm & non-residential \| Carrying Value
Impaired Loans
Impaired loans, at fair value	$ 899
Non-recurring \| Non-farm & non-residential \| Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	899
Non-recurring \| Agricultural \| Carrying Value
Impaired Loans
Impaired loans, at fair value	694
Other real estate owned, net:
Other real estate owned	233	233
Non-recurring \| Agricultural \| Significant Unobservable Inputs (Level 3)
Impaired Loans
Impaired loans, at fair value	694
Other real estate owned, net:
Other real estate owned	233	233
Non-recurring \| Commercial \| Carrying Value
Other real estate owned, net:
Other real estate owned	145	246
Non-recurring \| Commercial \| Significant Unobservable Inputs (Level 3)
Other real estate owned, net:
Other real estate owned	$ 145	$ 246

FAIR VALUE - QUANTITATIVE INFOR

FAIR VALUE - QUANTITATIVE INFORMATION (Details) $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018
Fair Value Measurements
Mortgage servicing rights	$ 1,612	$ 1,573
Multi-family residential
Fair Value Measurements
Impaired loans - measurement input		7
Minimum
Fair Value Measurements
Impaired loans - measurement input		(1)
Minimum \| 1-4 family residential
Fair Value Measurements
Other real estate owned, measurement input		4
Minimum \| Agricultural
Fair Value Measurements
Other real estate owned, measurement input		0
Maximum
Fair Value Measurements
Impaired loans - measurement input		21
Maximum \| 1-4 family residential
Fair Value Measurements
Other real estate owned, measurement input		11
Maximum \| 1-4 family residential \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	15
Maximum \| Agricultural
Fair Value Measurements
Other real estate owned, measurement input		26
Non-recurring
Fair Value Measurements
Impaired loans, at fair value	$ 3,600	$ 1,400
Other real estate owned	451	519
Mortgage servicing rights	1,500	1,100
Non-recurring \| Discounted cash flow \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Mortgage servicing rights	1,459	1,107
Non-recurring \| 1-4 family residential \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	799	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	799
Other real estate owned	73
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
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	145	246
Non-recurring \| Commercial \| Sales comparison \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned	145
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
Impaired loans, at fair value	694
Other real estate owned	233	$ 233
Non-recurring \| Agricultural \| Sales comparison \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans, at fair value	694
Other real estate owned	$ 233
Non-recurring \| Minimum \| Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Servicing asset, measurement input	12	9
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	15
Other real estate owned, measurement input	23
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	7
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	50
Non-recurring \| Minimum \| Commercial \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	15
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		6
Non-recurring \| Minimum \| Agricultural \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	100
Other real estate owned, measurement input	0
Non-recurring \| Maximum \| Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Servicing asset, measurement input	29	20
Non-recurring \| Maximum \| 1-4 family residential \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	27
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	7
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	50
Non-recurring \| Maximum \| Commercial \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Other real estate owned, measurement input	15
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			8
Non-recurring \| Maximum \| Agricultural \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	100
Other real estate owned, measurement input	26
Non-recurring \| Weighted average \| Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Constant Prepayment Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input			12
Servicing asset, measurement input	(19)
Non-recurring \| Weighted average \| 1-4 family residential \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans - measurement input		(1)
Other real estate owned, measurement input		(29)
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	(15)
Other real estate owned, measurement input	(30)
Non-recurring \| Weighted average \| Multi-family residential \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Impaired loans - measurement input		(7)
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	(7)
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	(50)
Non-recurring \| Weighted average \| Commercial \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned, measurement input		(62)
Non-recurring \| Weighted average \| Commercial \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Cap Rate [Member]
Fair Value Measurements
Other real estate owned, measurement input	(15)
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			(62)
Non-recurring \| Weighted average \| Agricultural \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Other real estate owned, measurement input		(14)
Non-recurring \| Weighted average \| Agricultural \| Sales comparison \| Significant Unobservable Inputs (Level 3) \| Measurement Input, Comparability Adjustment [Member]
Fair Value Measurements
Impaired loans - measurement input	(100)
Other real estate owned, measurement input	(14)

FAIR VALUE - FAIR VALUE OF FINA

FAIR VALUE - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets
Interest bearing time deposits	$ 2,470	$ 2,375
Securities available for sale	353,494	265,330
Loans held for sale	4,427	2,144
Interest receivable	5,227	4,166
Financial liabilities
Short-term Federal Home Loan Bank advances	10,500	25,000
Long-term Federal Home Loan Bank advances	86,032	91,418
Interest payable	775	1,170
Carrying Value
Financial assets
Cash and cash equivalents	38,974	22,182
Interest bearing time deposits	2,470	2,375
Securities available for sale	353,494	265,330
Loans held for sale	4,427	2,144
Net Loans	756,974	735,853
Federal Home Loan Bank stock	7,072	7,034
Interest receivable	5,227	4,166
Derivatives	501	48
Equity Securities		292
Other Assets	298
Financial liabilities
Total deposits	978,604	842,653
Repurchase agreements	9,129	5,994
Short-term Federal Home Loan Bank advances	10,500	25,000
Long-term Federal Home Loan Bank advances	86,032	91,418
Subordinated debentures	7,217	7,217
Interest payable	775	1,170
Derivative and financial instruments	2,350	164
Fair Value
Financial assets
Cash and cash equivalents	38,974	22,182
Interest bearing time deposits	2,470	2,375
Securities available for sale	353,494	265,330
Loans held for sale	4,532	2,171
Net Loans	763,914	735,060
Interest receivable	5,227	4,166
Derivatives	501	94
Equity Securities		292
Other Assets	298
Financial liabilities
Total deposits	979,275	841,840
Repurchase agreements	9,129	5,993
Short-term Federal Home Loan Bank advances	10,500	25,000
Long-term Federal Home Loan Bank advances	88,332	91,397
Subordinated debentures	7,214	7,213
Interest payable	775	1,170
Derivative and financial instruments	2,350	164
Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial assets
Cash and cash equivalents	38,974	22,182
Interest bearing time deposits	2,470	2,375
Equity Securities		292
Other Assets	298
Financial liabilities
Total deposits	807,383	630,948
Significant Other Observable Inputs (Level 2)
Financial assets
Securities available for sale	353,494	265,330
Loans held for sale	4,532	2,171
Interest receivable	1,057	1,035
Derivatives	501	94
Financial liabilities
Total deposits	171,892	210,892
Repurchase agreements	9,129	5,993
Short-term Federal Home Loan Bank advances	10,500	25,000
Long-term Federal Home Loan Bank advances	88,332	91,397
Interest payable	765	1,156
Derivative and financial instruments	2,350	164
Significant Unobservable Inputs (Level 3)
Financial assets
Net Loans	763,914	735,060
Interest receivable	4,170	3,131
Financial liabilities
Subordinated debentures	7,214	7,213
Interest payable	$ 10	$ 14

OFF-BALANCE SHEET ACTIVITIES _3

OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Unused lines of credit
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Financial instruments with off-balance sheet risk	$ 146,200	$ 117,265
Commitments to make loans \| Minimum
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Fixed rates (as a percent)	1.88%
Commitments to make loans \| Maximum
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Period of commitments to make loans	60 days
Fixed rates (as a percent)	5.25%
Maturities of fixed rate loan commitments	30 years
Commitments to make loans with fixed rate
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Financial instruments with off-balance sheet risk	$ 25,052	1,810
Commitments to make loans with variable rate
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Financial instruments with off-balance sheet risk	17,782	26,933
Letters of credit
OFF-BALANCE SHEET ACTIVITIES AND COMMITMENTS
Financial instruments with off-balance sheet risk	$ 402	$ 461

CAPITAL REQUIREMENTS (Details)

CAPITAL REQUIREMENTS (Details) - Kentucky Bank $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Total Capital (to Risk-Weighted Assets)
Actual, Amount		$ 111,294
Actual, Ratio (as a percent)		0.147
For Capital Adequacy, Amount		$ 60,584
For Capital Purposes, Ratio (as a percent)		0.080
To Be Well Capitalized Under Prompt Corrective, Action Amount		$ 75,731
To Be Well Capitalized Under Prompt Corrective, Provisions Ratio (as a percent)		0.100
Tier I Capital (to Risk-Weighted Assets)
Actual, Amount		$ 102,759
Actual, Ratio (as a percent)		0.136
For Capital Adequacy, Amount		$ 45,438
For Capital Purposes, Ratio (as a percent)		0.060
To Be Well Capitalized Under Prompt Corrective, Action Amount		$ 60,584
To Be Well Capitalized Under Prompt Corrective, Provisions Ratio (as a percent)		0.080
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
Actual, Amount		$ 102,759
Actual, Ratio (as a percent)		0.136
For Capital Adequacy, Amount		$ 34,079
For Capital Purposes, Ratio (as a percent)		0.045
To Be Well Capitalized Under Prompt Corrective, Action Amount		$ 49,225
To Be Well Capitalized Under Prompt Corrective, Provisions Ratio (as a percent)		6.50%
Tier I Capital (to Average Assets)
Actual, Amount	$ 107,805	$ 102,759
Actual, Ratio (as a percent)	0.090	0.093
For Capital Adequacy, Amount	$ 96,258	$ 44,164
For Capital Purposes, Ratio (as a percent)	0.080	0.040
To Be Well Capitalized Under Prompt Corrective, Action Amount	$ 96,258	$ 55,206
To Be Well Capitalized Under Prompt Corrective, Provisions Ratio (as a percent)	0.080	0.050

DERIVATIVES AND FINANCIAL INS_2

DERIVATIVES AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net of tax	$ (1,341)	$ 46
Carrying Value
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset	501	48
Interest rate swap \| Fair value hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	7,000	7,000
Interest rate swap \| Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	23,000	10,000
Interest rate swap \| Not designated as hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	24,200	7,400
Interest rate swap \| Federal Home Loan Bank Advances \| Carrying Value \| Fair value hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset	626	626
Derivative liability	169	169
Interest rate swap \| Federal Home Loan Bank Advances \| Carrying Value \| Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset	46	46
Derivative liability	1,725	1,725
Interest rate swap \| Federal Home Loan Bank Advances \| Not designated as hedge \| Carrying Value
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset	$ 501	$ 48

PARENT COMPANY FINANCIAL STAT_3

PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash on deposit with subsidiaries	$ 38,579	$ 21,922
Other assets	7,558	8,059
Total assets	1,239,505	1,110,790
Liabilities
Subordinated debentures	7,217	7,217
Other Liabilities	11,056	9,725
Stockholders' equity
Preferred stock
Retained earnings	104,319	96,903
Accumulated other comprehensive income	2,027	913
Total liabilities and stockholders' equity	1,239,505	1,110,790
Parent Company
ASSETS
Cash on deposit with subsidiaries	8,804	6,048
Investment in subsidiaries	126,125	119,804
Other assets	640	642
Total assets	135,569	126,494
Liabilities
Subordinated debentures	7,217	7,217
Other Liabilities	10	14
Stockholders' equity
Preferred stock
Common stock	21,996	21,447
Retained earnings	104,319	96,903
Accumulated other comprehensive income	2,027	913
Total liabilities and stockholders' equity	$ 135,569	$ 126,494

PARENT COMPANY FINANCIAL STAT_4

PARENT COMPANY FINANCIAL STATEMENTS - INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income
Securities gains (losses), net									$ 345	$ 857
Expenses
Interest expense									6,703	8,983
Other expenses									37,607	35,308
Income before income taxes and equity in undistributed income of subsidiary									12,575	14,230
Applicable income tax benefits									(878)	(1,077)
Net income	$ 3,521	$ 3,352	$ 3,073	$ 1,751	$ 3,489	$ 3,616	$ 3,237	$ 2,811	11,697	13,153
Comprehensive income									12,811	17,544
Parent Company
Income
Dividends from subsidiary									7,425	8,140
Total income									7,425	8,140
Expenses
Interest expense									268	505
Other expenses									372	291
Total expenses									640	796
Income before income taxes and equity in undistributed income of subsidiary									6,785	7,344
Applicable income tax benefits									165	569
Income before equity in undistributed income of subsidiary									6,950	7,913
Equity in undistributed income of subsidiaries									4,747	5,240
Net income									11,697	13,153
Comprehensive income									$ 12,811	$ 17,544

PARENT COMPANY FINANCIAL STAT_5

PARENT COMPANY FINANCIAL STATEMENTS - CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net Income	$ 11,697	$ 13,153
Adjustments to reconcile net income to net cash from operating activities:
Change in other assets	373	(882)
Change in other liabilities	(10)	305
Net cash from operating activities	11,608	13,227
Cash flows from financing activities
Payments on note payable		(2,718)
Dividends paid	(4,281)	(4,045)
Purchase of common stock		(1,544)
Net cash from financing activities	115,182	(1,918)
Net change in cash	16,792	(3,919)
Cash and cash equivalents at beginning of year	22,182	26,101
Cash and cash equivalents at end of year	38,974	22,182
Parent Company
Cash flows from operating activities
Net Income	11,697	13,153
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed income of subsidiary	(4,747)	(5,240)
Change in other assets	2	(414)
Change in other liabilities	(4)	(2)
Net cash from operating activities	6,948	7,497
Cash flows from financing activities
Payments on note payable		(2,718)
Dividends paid	(4,281)	(4,045)
Proceeds from issuance of common stock	89	65
Purchase of common stock		(1,544)
Net cash from financing activities	(4,192)	(8,242)
Net change in cash	2,756	(745)
Cash and cash equivalents at beginning of year	6,048	6,793
Cash and cash equivalents at end of year	$ 8,804	$ 6,048

QUARTERLY FINANCIAL DATA (UNA_3

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Quarterly financial data
Interest Income	$ 10,488	$ 10,184	$ 10,878	$ 11,135	$ 11,481	$ 11,512	$ 11,360	$ 11,179	$ 42,685	$ 45,532
Net Interest Income	9,199	8,709	9,082	8,992	9,241	9,310	9,059	8,939	35,982	36,549
Net Income	$ 3,521	$ 3,352	$ 3,073	$ 1,751	$ 3,489	$ 3,616	$ 3,237	$ 2,811	$ 11,697	$ 13,153
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.57	$ 0.51	$ 0.30	$ 0.59	$ 0.61	$ 0.54	$ 0.47	$ 1.97	$ 2.21
Diluted earnings per share (in dollars per share)	$ 0.59	$ 0.57	$ 0.51	$ 0.30	$ 0.59	$ 0.61	$ 0.54	$ 0.47	$ 1.97	$ 2.21

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands	Jan. 27, 2021location$ / shares	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)$ / shares
Subsequent Events
Common stock, par value (in dollars per share) \| $ / shares		$ 0	$ 0
Total assets		$ 1,239,505	$ 1,110,790
Total deposits		978,604	$ 842,653
Merger Agreement With Stock Yard Bancorp Inc \| Stock Yards
Subsequent Events
Total assets		4,600,000
Total loans		3,500,000
Total deposits		$ 4,000,000
Merger Agreement With Stock Yard Bancorp Inc \| Subsequent Events
Subsequent Events
Common stock, par value (in dollars per share) \| $ / shares	$ 0.64
Cash consideration per share (in dollars per share) \| $ / shares	$ 4.75
Number of banking locations \| location	44