Macatawa Bank (MCBC) 10-Q 22 Oct 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 22, 2020
Cover page.
Entity Registrant Name	MACATAWA BANK CORP
Entity Central Index Key	0001053584
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		34,101,320
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Address, State or Province	MI

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 28,294	$ 31,942
Federal funds sold and other short-term investments	504,706	240,508
Cash and cash equivalents	533,000	272,450
Debt securities available for sale, at fair value	229,928	225,249
Debt securities held to maturity (fair value 2020 - $95,142 and 2019 - $85,128)	91,394	82,720
Federal Home Loan Bank (FHLB) stock	11,558	11,558
Loans held for sale, at fair value	3,508	3,294
Total loans	1,542,335	1,385,627
Allowance for loan losses	(16,558)	(17,200)
Net loans	1,525,777	1,368,427
Premises and equipment - net	43,733	43,417
Accrued interest receivable	6,895	4,866
Bank owned life insurance	42,368	42,156
Other real estate owned - net	2,624	2,748
Net deferred tax asset	2,437	2,078
Other assets	15,496	9,807
Total assets	2,508,718	2,068,770
Deposits
Noninterest-bearing	738,471	482,499
Interest-bearing	1,432,108	1,270,795
Total deposits	2,170,579	1,753,294
Other borrowed funds	70,000	60,000
Long-term debt	20,619	20,619
Accrued expenses and other liabilities	13,655	17,388
Total liabilities	2,274,853	1,851,301
Commitments and contingent liabilities
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 34,101,320 and 34,103,542 shares issued and outstanding at September 30, 2020 and December 31, 2019	218,445	218,109
Retained earnings (deficit)	10,825	(2,184)
Accumulated other comprehensive income	4,595	1,544
Total shareholders' equity	233,865	217,469
Total liabilities and shareholders' equity	$ 2,508,718	$ 2,068,770

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Debt securities held to maturity, fair value	$ 95,142	$ 85,128
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	34,101,320	34,103,542
Common stock, shares outstanding (in shares)	34,101,320	34,103,542

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income
Loans, including fees	$ 13,854	$ 15,604	$ 43,194	$ 48,179
Securities
Taxable	867	968	2,881	2,952
Tax-exempt	861	919	2,607	2,623
FHLB Stock	100	158	339	476
Federal funds sold and other short-term investments	140	1,430	802	3,278
Total interest income	15,822	19,079	49,823	57,508
Interest expense
Deposits	621	2,343	3,118	6,965
Other borrowings	364	349	1,069	1,021
Long-term debt	163	551	612	1,710
Total interest expense	1,148	3,243	4,799	9,696
Net interest income	14,674	15,836	45,024	47,812
Provision for loan losses	500	0	2,200	(450)
Net interest income after provision for loan losses	14,174	15,836	42,824	48,262
Noninterest income
Service charges and fees	987	1,139	2,957	3,267
Net gains on mortgage loans	1,546	824	4,045	1,650
Trust fees	921	920	2,801	2,813
ATM and debit card fees	1,542	1,469	4,199	4,276
Gain on sales of securities	0	0	0	0
Bank owned life insurance ("BOLI") income	215	252	688	737
Other	881	609	2,214	1,896
Total noninterest income	6,092	5,213	16,904	14,639
Noninterest expense
Salaries and benefits	6,480	6,272	18,937	18,895
Occupancy of premises	1,026	966	2,984	3,055
Furniture and equipment	967	887	2,704	2,597
Legal and professional	260	211	798	652
Marketing and promotion	239	228	716	689
Data processing	761	735	2,309	2,226
FDIC assessment	131	0	207	239
Interchange and other card expense	367	347	1,041	1,057
Bond and D&O Insurance	104	103	313	309
Net (gains) losses on repossessed and foreclosed properties	0	0	32	(69)
Administration and disposition of problem assets	25	46	71	183
Other	1,173	1,214	3,647	3,749
Total noninterest expenses	11,533	11,009	33,759	33,582
Income before income tax	8,733	10,040	25,969	29,319
Income tax expense	1,613	1,882	4,800	5,512
Net income	$ 7,120	$ 8,158	$ 21,169	$ 23,807
Basic earnings per common share (in dollars per share)	$ 0.21	$ 0.24	$ 0.62	$ 0.70
Diluted earnings per common share (in dollars per share)	0.21	0.24	0.62	0.70
Cash dividends per common share (in dollars per share)	$ 0.08	$ 0.07	$ 0.24	$ 0.21

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract]
Net income	$ 7,120	$ 8,158	$ 21,169	$ 23,807
Unrealized gains (losses):
Net change in unrealized gains (losses) on debt securities available for sale	39	468	3,865	5,049
Tax effect	(8)	(98)	(814)	(1,060)
Net change in unrealized gains (losses) on debt securities available for sale, net of tax	31	370	3,051	3,989
Less: reclassification adjustments:
Reclassification for gains included in net income	0	0	0	0
Tax effect	0	0	0	0
Reclassification for gains included in net income, net of tax	0	0	0	0
Other comprehensive income (loss), net of tax	31	370	3,051	3,989
Comprehensive income	$ 7,151	$ 8,528	$ 24,220	$ 27,796

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2018	$ 217,783	$ (24,652)	$ (2,278)	$ 190,853
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	23,807	0	23,807
Cash dividends	0	(7,133)	0	(7,133)
Repurchase of shares for taxes withheld on vested restricted stock	(5)	0	0	(5)
Net change in unrealized gain on debt securities available for sale, net of tax	0	0	3,989	3,989
Stock compensation expense	274	0	0	274
Balance at Sep. 30, 2019	218,052	(7,978)	1,711	211,785
Balance at Jun. 30, 2019	217,942	(13,764)	1,341	205,519
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	8,158	0	8,158
Cash dividends	0	(2,372)	0	(2,372)
Net change in unrealized gain on debt securities available for sale, net of tax	0	0	370	370
Stock compensation expense	110	0	0	110
Balance at Sep. 30, 2019	218,052	(7,978)	1,711	211,785
Balance at Dec. 31, 2019	218,109	(2,184)	1,544	217,469
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	21,169	0	21,169
Cash dividends	0	(8,160)	0	(8,160)
Repurchase of shares for taxes withheld on vested restricted stock	(24)	0	0	(24)
Net change in unrealized gain on debt securities available for sale, net of tax	0	0	3,051	3,051
Stock compensation expense	360	0	0	360
Balance at Sep. 30, 2020	218,445	10,825	4,595	233,865
Balance at Jun. 30, 2020	218,349	6,425	4,564	229,338
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	7,120	0	7,120
Cash dividends	0	(2,720)	0	(2,720)
Repurchase of shares for taxes withheld on vested restricted stock	(13)	0	0	(13)
Net change in unrealized gain on debt securities available for sale, net of tax	0	0	31	31
Stock compensation expense	109	0	0	109
Balance at Sep. 30, 2020	$ 218,445	$ 10,825	$ 4,595	$ 233,865

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend per share (in dollars per share)	$ 0.08	$ 0.24	$ 0.21
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares)	1,696	3,304	452

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income	$ 21,169	$ 23,807
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	2,105	1,675
Stock compensation expense	360	274
Provision for loan losses	2,200	(450)
Origination of loans for sale	(120,171)	(53,709)
Proceeds from sales of loans originated for sale	124,002	54,457
Net gains on mortgage loans	(4,045)	(1,650)
Write-down of other real estate	32	10
Net (gain) loss on sales of other real estate	0	(79)
Deferred income tax expense	(1,174)	222
Change in accrued interest receivable and other assets	(7,450)	(5,173)
Earnings in bank-owned life insurance	(688)	(737)
Change in accrued expenses and other liabilities	4,483	4,391
Net cash from operating activities	20,823	23,038
Cash flows from investing activities
Loan originations and payments, net	(159,550)	29,150
Purchases of securities available for sale	(102,158)	(23,023)
Purchases of securities held to maturity	(29,745)	(17,778)
Proceeds from:
Maturities and calls of securities	86,667	45,839
Principal paydowns on securities	27,423	6,324
Sales of other real estate	92	340
Additions to premises and equipment	(2,103)	(1,001)
Net cash from investing activities	(179,374)	39,851
Cash flows from financing activities
Change in deposits	417,285	143,401
Repayments and maturities of other borrowed funds	0	(10,000)
Proceeds from other borrowed funds	10,000	10,000
Repurchase of shares for taxes withheld on vested restricted stock	(24)	(5)
Cash dividends paid	(8,160)	(7,133)
Net cash from financing activities	419,101	136,263
Net change in cash and cash equivalents	260,550	199,152
Cash and cash equivalents at beginning of period	272,450	171,284
Cash and cash equivalents at end of period	533,000	370,436
Supplemental cash flow information
Interest paid	5,043	9,646
Income taxes paid	5,315	5,100
Supplemental noncash disclosures:
Security settlement	$ 1,937	$ 650

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust II. This is a grantor trust that issued trust preferred securities and is not consolidated with the Company under accounting principles generally accepted in the United States of America. Recent Events: In Michigan, beginning March 24, 2020, Governor Gretchen Whitmer issued a series of executive orders, which severely limited economic activity in Michigan, requiring businesses not deemed to be essential, to severely limit or shut down operations. Under later executive orders, Governor Whitmer permitted a phased reopening of businesses, subject to stringent health and safety requirements and strict social distancing measures. As of September 30, 2020, most businesses in Michigan were allowed to be open in some capacity, subject to stringent health and safety requirements, strict social distancing measures and nonsurgical face mask requirements. Congress passed a number of measures in late March 2020, designed to infuse cash into the economy to offset the negative impacts of business closings and restrictions. The Company quickly responded to the changing environment by successfully executing its business continuity plan, including implementing work from home arrangements and limiting branch activities. As of September 30, 2020, branches were fully open with additional health and safety requirements to comply with Governor Whitmer’s then-current executive orders, including, among other things, daily deep cleaning, nonsurgical face mask requirements and strict social distancing measures. On October 2, and 12, 2020, the Michigan Supreme Court issued decisions invalidating all of Governor Whitmer’s executive orders effective immediately. In response, Governor Whitmer, acting through various state agencies, has sought to substantially re-implement the requirements of the executive orders by way of state agency emergency orders. Also, certain county and municipal governments have issued emergency orders seeking to keep elements of the executive orders in place. Legal challenges to these orders may occur. Finally, the Michigan legislature has passed legislation – which Governor Whitmer is expected to sign and enact into law – codifying certain elements of the executive orders. The patchwork implementation of state agency and local government executive orders – coupled with the possibility of legal challenges to these orders – creates uncertainty as to legal requirements applicable to businesses, institutions and individuals in Michigan. This uncertainty may have a negative impact on the business, financial condition, and results of operations of the Company and its customers. 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” The CARES Act, as amended, included an allocation of $659 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. Payments are deferred until either the date on which the SBA remits the amount of forgiveness proceeds to the lender or the date that is 10 months after the last day of the covered period if the borrower does not apply for forgiveness within that 10 month period. Through September 30, 2020, the Bank had originated 1,738 PPP loans totaling $346.7 million in principal, with an average loan size of $200,000. Fees totaling $10.0 million were collected from the SBA for these loans in the nine months ended September 30, 2020. These fees are deferred and amortized into interest income over the contractual period of 24 months or 60 months, as applicable. Upon SBA forgiveness, unamortized fees are then recognized into interest income. Participation in the PPP had a significant impact on the Bank’s asset mix and net interest income in the second and third quarters of 2020 and will continue to impact both asset mix and net interest income for the remainder of 2020. The PPP program expired on August 8, 2020. Basis of Presentation Operating results for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Use of Estimates Allowance for Loan Losses 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 qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. PPP loans receive $0 allocation as they are fully guaranteed by the SBA and are subject to be forgiven under the SBA forgiveness criteria. At September 30, 2020, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. At March 31, 2020 and June 30, 2020, the qualitative factor allocations for economic trends and at September 30, 2020 the external factors were increased to provide additional coverage related to the COVID-19 pandemic. In addition, at September 30, 2020, an additional qualitative allocation was provided on loans that remained in modified status under the CARES Act. A loan is impaired when, based on current information and events, it is believed to be 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 a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Foreclosed Assets Income Taxes The Company recognizes a tax position 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, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense. Revenue Recognition Interest Income: The Company’s largest source of revenue is interest income which is primarily recognized on an accrual basis based on contractual terms written into loans and investment contracts. Noninterest Revenue: The Company derives the majority of its noninterest revenue from: (1) service charges for deposit related services, (2) gains related to mortgage loan sales, (3) trust fees and (4) debit and credit card interchange income. Most of these services are transaction based and revenue is recognized as the related service is provided. Derivatives Reclassifications Adoption of New Standards Newly Issued Not Yet Effective Standards Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU No. 2019-10 Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) – Effective Dates

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2020
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2020 Available for Sale U.S. Treasury and federal agency securities $ 59,606 $ 425 $ (52 ) $ 59,979 U.S. Agency MBS and CMOs 60,110 1,629 (2 ) 61,737 Tax-exempt state and municipal bonds 45,243 1,928 (1 ) 47,170 Taxable state and municipal bonds 53,220 1,714 (20 ) 54,914 Corporate bonds and other debt securities 5,933 195 — 6,128 $ 224,112 $ 5,891 $ (75 ) $ 229,928 Held to Maturity Tax-exempt state and municipal bonds $ 91,394 $ 3,748 $ — $ 95,142 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Available for Sale U.S. Treasury and federal agency securities $ 74,839 $ 95 $ (185 ) $ 74,749 U.S. Agency MBS and CMOs 45,795 474 (68 ) 46,201 Tax-exempt state and municipal bonds 44,718 1,244 — 45,962 Taxable state and municipal bonds 51,683 404 (65 ) 52,022 Corporate bonds and other debt securities 6,263 55 (3 ) 6,315 $ 223,298 $ 2,272 $ (321 ) $ 225,249 Held to Maturity Tax-exempt state and municipal bonds $ 82,720 $ 2,408 $ — $ 85,128 There were no sales of securities in the three and nine month periods ended September 30, 2020 and 2019. Contractual maturities of debt securities at September 30, 2020 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 28,636 $ 28,833 $ 34,257 $ 34,479 Due from one to five years 29,384 30,567 64,101 66,323 Due from five to ten years 14,749 16,076 68,427 70,321 Due after ten years 18,625 19,666 57,327 58,805 $ 91,394 $ 95,142 $ 224,112 $ 229,928 Securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total September 30, 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 12,948 $ (52 ) $ — $ — $ 12,948 $ (52 ) U.S. Agency MBS and CMOs 1,971 (2 ) — — 1,971 (2 ) Tax-exempt state and municipal bonds 755 (1 ) — — 755 (1 ) Taxable state and municipal bonds 3,343 (20 ) — — 3,343 (20 ) Corporate bonds and other securities — — — — — — Total $ 19,017 $ (75 ) $ — $ — $ 19,017 $ (75 ) Held to Maturity Tax-exempt state and municipal bonds $ — $ — $ — $ — $ — $ — Less than 12 Months 12 Months or More Total December 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 15,009 $ (97 ) $ 27,026 $ (87 ) $ 42,035 $ (184 ) U.S. Agency MBS and CMOs 19,117 (56 ) 1,196 (12 ) 20,313 (68 ) Tax-exempt state and municipal bonds 319 — — — 319 — Taxable state and municipal bonds 8,569 (57 ) 2,981 (9 ) 11,550 (66 ) Corporate bonds and other debt securities 932 — 852 (3 ) 1,784 (3 ) Total temporarily impaired $ 43,946 $ (210 ) $ 32,055 $ (111 ) $ 76,001 $ (321 ) Held to Maturity Tax-exempt state and municipal bonds $ — $ — $ — $ — $ — $ — Other-Than-Temporary-Impairment 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. At September 30, 2020, 16 securities available for sale with fair values totaling $19.0 million had unrealized losses totaling $75,000. At September 30, 2020, there were no securities held to maturity which had unrealized losses. Management has the intent and ability to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities. In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost. Management determined that the unrealized losses for the three and nine month periods ended September 30, 2020 and 2019 were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during each period. Securities with a carrying value of approximately $6.1 million and $3.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at September 30, 2020 and December 31, 2019, respectively.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2020
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): September 30, 2020 December 31, 2019 Commercial and industrial: Commercial and industrial, excluding PPP $ 413,702 $ 499,572 Paycheck protection program (PPP) 339,216 — Total commercial and industrial 752,918 499,572 Commercial real estate: Residential developed 10,072 14,705 Vacant and unimproved 45,534 41,796 Commercial development 605 665 Residential improved 117,202 130,861 Commercial improved 273,355 292,799 Manufacturing and industrial 112,155 117,632 Total commercial real estate 558,923 598,458 Consumer Residential mortgage 164,818 211,049 Unsecured 189 274 Home equity 61,276 70,936 Other secured 4,211 5,338 Total consumer 230,494 287,597 Total loans 1,542,335 1,385,627 Allowance for loan losses (16,558 ) (17,200 ) $ 1,525,777 $ 1,368,427 Included in commercial and industrial loans at September 30, 2020 are $339.2 million in loans issued under the PPP. This program was created by the CARES Act in March 2020 to support businesses through the COVID-19 pandemic. Under the program, borrowers who use the funds for payroll and certain other expenses are eligible to have the loan balances forgiven by the SBA. Applications for forgiveness can be submitted to the Bank beginning 8 weeks after loan disbursement. The loans are 100% guaranteed by the SBA. We expect the majority of PPP loans to qualify for and receive forgiveness from the SBA by early 2021. This expectation is subject to change due to borrower behavior, changing SBA requirements and processes related to loan forgiveness and other relevant factors. Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,431 $ 7,262 $ 3,138 $ 24 $ 15,855 Charge-offs — — (24 ) — (24 ) Recoveries 22 168 37 — 227 Provision for loan losses 513 237 (242 ) (8 ) 500 Ending Balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Three months ended September 30, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 7,231 $ 6,309 $ 3,296 $ 50 $ 16,886 Charge-offs — — (48 ) — (48 ) Recoveries 233 51 23 — 307 Provision for loan losses 23 105 (105 ) (23 ) — Ending Balance $ 7,487 $ 6,465 $ 3,166 $ 27 $ 17,145 Nine months ended September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 7,658 $ 6,521 $ 3,009 $ 12 $ 17,200 Charge-offs (1,192 ) (2,957 ) (97 ) — (4,246 ) Recoveries 124 1,159 121 — 1,404 Provision for loan losses (624 ) 2,944 (124 ) 4 2,200 Ending Balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Nine months ended September 30, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,856 $ 6,544 $ 3,449 $ 27 $ 16,876 Charge-offs — (132 ) (114 ) — (246 ) Recoveries 510 342 113 — 965 Provision for loan losses 121 (289 ) (282 ) — (450 ) Ending Balance $ 7,487 $ 6,465 $ 3,166 $ 27 $ 17,145 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 660 $ 26 $ 330 $ — $ 1,016 Collectively evaluated for impairment 5,306 7,641 2,579 16 15,542 Total ending allowance balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Loans: Individually reviewed for impairment $ 2,803 $ 2,175 $ 4,356 $ — $ 9,334 Collectively evaluated for impairment 750,115 556,748 226,138 — 1,533,001 Total ending loans balance $ 752,918 $ 558,923 $ 230,494 $ — $ 1,542,335 December 31, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 1,213 $ 32 $ 379 $ — $ 1,624 Collectively evaluated for impairment 6,445 6,489 2,630 12 15,576 Total ending allowance balance $ 7,658 $ 6,521 $ 3,009 $ 12 $ 17,200 Loans: Individually reviewed for impairment $ 5,797 $ 2,928 $ 5,140 $ — $ 13,865 Collectively evaluated for impairment 493,775 595,530 282,457 — 1,371,762 Total ending loans balance $ 499,572 $ 598,458 $ 287,597 $ — $ 1,385,627 The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2020 (dollars in thousands): September 30, 2020 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 168 $ 168 $ — Commercial real estate: Residential improved 120 120 — Commercial improved 1,290 1,290 — 1,410 1,410 — Consumer — — — Total with no related allowance recorded $ 1,578 $ 1,578 $ — With an allowance recorded: Commercial and industrial $ 2,635 $ 2,635 $ 660 Commercial real estate: Residential developed 70 70 3 Commercial improved 350 350 13 Manufacturing and industrial 345 345 10 765 765 26 Consumer: Residential mortgage 3,784 3,784 286 Unsecured 142 142 11 Home equity 406 406 31 Other secured 24 24 2 4,356 4,356 330 Total with an allowance recorded $ 7,756 $ 7,756 $ 1,016 Total $ 9,334 $ 9,334 $ 1,016 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019 (dollars in thousands): December 31, 2019 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 180 $ 180 $ — Commercial real estate: Vacant and unimproved 130 130 — Residential improved 377 377 — Commercial improved 1,380 1,380 — 1,887 1,887 — Consumer — — — Total with no related allowance recorded $ 2,067 $ 2,067 $ — With an allowance recorded: Commercial and industrial $ 5,617 $ 5,617 $ 1,213 Commercial real estate: Residential developed 76 76 3 Residential improved 28 28 2 Commercial improved 578 578 16 Manufacturing and industrial 359 359 11 1,041 1,041 32 Consumer: Residential mortgage 4,242 4,242 313 Unsecured 198 198 14 Home equity 677 677 50 Other secured 23 23 2 5,140 5,140 379 Total with an allowance recorded $ 11,798 $ 11,798 $ 1,624 Total $ 13,865 $ 13,865 $ 1,624 The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and nine month periods ended September 30, 2020 and 2019 (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Average of impaired loans during the period: Commercial and industrial $ 2,208 $ 3,781 $ 4,362 $ 5,304 Commercial real estate: Residential developed 71 146 72 161 Vacant and unimproved — 62 — 107 Residential improved 168 538 211 421 Commercial improved 1,650 2,071 4,652 2,187 Manufacturing and industrial 347 366 352 372 Consumer 4,441 5,599 4,687 5,900 Interest income recognized during impairment: Commercial and industrial 23 174 303 692 Commercial real estate 33 45 193 141 Consumer 41 70 153 210 Cash-basis interest income recognized Commercial and industrial 13 160 298 707 Commercial real estate 33 48 218 149 Consumer 43 71 148 210 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 97 — 97 — Consumer: Residential mortgage 98 — 98 — Total $ 195 $ — December 31, 2019 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 98 — 98 — Consumer: Residential mortgage 105 — 105 — Total $ 203 $ — The following table presents the aging of the recorded investment in past due loans as of September 30, 2020 and December 31, 2019 by class of loans (dollars in thousands): September 30, 2020 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 65 $ — $ 65 $ 752,853 $ 752,918 Commercial real estate: Residential developed — — — 10,072 10,072 Vacant and unimproved — — — 45,534 45,534 Commercial development — — — 605 605 Residential improved — 97 97 117,105 117,202 Commercial improved 161 — 161 273,194 273,355 Manufacturing and industrial — — — 112,155 112,155 161 97 258 558,665 558,923 Consumer: Residential mortgage — 97 97 164,721 164,818 Unsecured — — — 189 189 Home equity 104 — 104 61,172 61,276 Other secured — — — 4,211 4,211 104 97 201 230,293 230,494 Total $ 330 $ 194 $ 524 $ 1,541,811 $ 1,542,335 December 31, 2019 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 499,572 $ 499,572 Commercial real estate: Residential developed — — — 14,705 14,705 Vacant and unimproved — — — 41,796 41,796 Commercial development — — — 665 665 Residential improved 171 15 186 130,675 130,861 Commercial improved 103 — 103 292,696 292,799 Manufacturing and industrial — — — 117,632 117,632 274 15 289 598,169 598,458 Consumer: Residential mortgage 2 103 105 210,944 211,049 Unsecured — — — 274 274 Home equity 8 — 8 70,928 70,936 Other secured 3 — 3 5,335 5,338 13 103 116 287,481 287,597 Total $ 287 $ 118 $ 405 $ 1,385,222 $ 1,385,627 The Company had allocated $1,016,000 and $1,624,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of September 30, 2020 and December 31, 2019, respectively. These loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. In situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding troubled debt restructurings as of September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 December 31, 2019 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 7 $ 2,803 7 $ 5,797 Commercial real estate 13 2,175 15 2,770 Consumer 62 4,356 69 5,140 82 $ 9,334 91 $ 13,707 In late March 2020, the federal banking regulators issued guidance that modifications made to a borrower affected by the COVID-19 pandemic and governmental shutdown orders does not need to be identified as a TDR if the loan was current at the time a modification plan was implemented. Section 4013 of the CARES Act also addressed COVID-19 related modifications and specified that such modifications made on loans that were current as of December 31, 2019 are not TDRs. As of September 30, 2020, the Bank had applied this guidance and had made 726 such modifications with principal balances totaling $337.2 million. The Bank continues to follow the guidance issued by the banking regulators in making any TDR determinations. At September 30, 2020, there were 26 such loans still in their modification period, totaling $79.9 million. The following table presents information related to accruing troubled debt restructurings as of September 30, 2020 and December 31, 2019. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): September 30, 2020 December 31, 2019 Accruing TDR - nonaccrual at restructuring $ — $ — Accruing TDR - accruing at restructuring 6,884 8,295 Accruing TDR - upgraded to accruing after six consecutive payments 2,353 5,314 $ 9,237 $ 13,609 There were no troubled debt restructurings executed during the three month periods ended September 30, 2020 and 2019. The following tables present information regarding troubled debt restructurings executed during the nine month periods ended September 30, 2020 and 2019 (dollars in thousands): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial — $ — $ — — $ — $ — Commercial real estate — — — — — — Consumer 2 30 — 1 24 — 2 $ 30 $ — 1 $ 24 $ — According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. Payment defaults on TDRs have been minimal and during the three and nine month periods ended September 30, 2020 and 2019, the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of restructuring were not material. Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss As of September 30, 2020 and December 31, 2019, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): September 30, 2020 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 354,130 $ 17,582 $ 98,304 $ 270,928 $ 8,986 $ 2,988 $ — $ — $ 752,918 Commercial real estate: Residential developed — — 132 9,940 — — — — 10,072 Vacant and unimproved — 4,221 10,708 29,078 1,527 — — — 45,534 Commercial development — — 309 296 — — — — 605 Residential improved — — 26,426 90,445 234 — 97 — 117,202 Commercial improved — 6,494 62,472 195,275 8,764 350 — — 273,355 Manufacturing & industrial — — 33,965 74,400 3,790 — — — 112,155 $ 354,130 $ 28,297 $ 232,316 $ 670,362 $ 23,301 $ 3,338 $ 97 $ — $ 1,311,841 December 31, 2019 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 15,000 $ 11,768 $ 158,851 $ 290,267 $ 17,664 $ 6,022 $ — $ — $ 499,572 Commercial real estate: Residential developed — — 312 14,393 — — — — 14,705 Vacant and unimproved — 9,201 8,085 22,819 1,691 — — — 41,796 Commercial development — — 79 586 — — — — 665 Residential improved — — 20,142 109,932 518 171 98 — 130,861 Commercial improved — 6,893 67,915 213,790 3,847 354 — — 292,799 Manufacturing & industrial — 2,404 36,401 77,435 1,392 — — — 117,632 $ 15,000 $ 30,266 $ 291,785 $ 729,222 $ 25,112 $ 6,547 $ 98 $ — $ 1,098,030 Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): September 30, 2020 December 31, 2019 Not classified as impaired $ 591 $ 591 Classified as impaired 2,844 6,054 Total commercial loans classified substandard or worse $ 3,435 $ 6,645 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): September 30, 2020 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 164,721 $ 189 $ 61,276 $ 4,211 Nonperforming 97 — — — Total $ 164,818 $ 189 $ 61,276 $ 4,211 December 31, 2019 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 210,946 $ 274 $ 70,936 $ 5,338 Nonperforming 103 — — — Total $ 211,049 $ 274 $ 70,936 $ 5,338

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	9 Months Ended
	Sep. 30, 2020
OTHER REAL ESTATE OWNED [Abstract]
OTHER REAL ESTATE OWNED	NOTE 4 – OTHER REAL ESTATE OWNED Other real estate owned was as follows (dollars in thousands): Nine Months Ended September 30, 2020 Year Ended December 31, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 3,112 $ 4,183 $ 4,183 Additions, transfers from loans — — — Proceeds from sales of other real estate owned (92 ) (589 ) (340 ) Valuation allowance reversal upon sale — (453 ) (171 ) Gain / (loss) on sales of other real estate owned — (29 ) 79 3,020 3,112 3,751 Less: valuation allowance (396 ) (364 ) (642 ) Ending balance $ 2,624 $ 2,748 $ 3,109 Activity in the valuation allowance was as follows (dollars in thousands): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance $ 364 $ 803 Additions charged to expense 32 10 Reversals upon sale — (171 ) Ending balance $ 396 $ 642

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2020
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures 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 reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Investment Securities Loans Held for Sale Impaired Loans Other Real Estate Owned Interest Rate Swaps Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 U.S. Treasury and federal agency securities $ 59,979 $ — $ 59,979 $ — U.S. Agency MBS and CMOs 61,737 — 61,737 — Tax-exempt state and municipal bonds 47,170 — 47,170 — Taxable state and municipal bonds 54,914 — 54,914 — Corporate bonds and other debt securities 6,128 — 6,128 — Other equity securities 1,518 — 1,518 — Loans held for sale 3,508 — 3,508 — Interest rate swaps 5,080 — — 5,080 Interest rate swaps (5,080 ) — — (5,080 ) December 31, 2019 U.S. Treasury and federal agency securities $ 74,749 $ — $ 74,749 $ — U.S. Agency MBS and CMOs 46,201 — 46,201 — Tax-exempt state and municipal bonds 45,962 — 45,962 — Taxable state and municipal bonds 52,022 — 52,022 — Corporate bonds and other debt securities 6,315 — 6,315 — Other equity securities 1,481 — 1,481 — Loans held for sale 3,294 — 3,294 — Interest rate swaps 1,830 — — 1,830 Interest rate swaps (1,830 ) — — (1,830 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Impaired loans $ 2,481 $ — $ — $ 2,481 Other real estate owned 281 — — 281 December 31, 2019 Impaired loans $ 5,151 $ — $ — $ 5,151 Other real estate owned 405 — — 405 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) September 30, 2020 Impaired Loans $ 2,481 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 30.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 281 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2019 Impaired Loans $ 5,151 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 405 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2020 and December 31, 2019 (dollars in thousands): Level in September 30, 2020 December 31, 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 28,294 $ 28,294 $ 31,942 $ 31,942 Cash equivalents Level 2 504,706 504,706 240,508 240,508 Securities held to maturity Level 3 91,394 95,142 82,720 85,128 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,523,296 1,560,997 1,363,276 1,395,446 Bank owned life insurance Level 3 42,368 42,368 42,156 42,156 Accrued interest receivable Level 2 6,895 6,895 4,866 4,866 Financial liabilities Deposits Level 2 (2,170,579 ) (2,171,039 ) (1,753,294 ) (1,753,877 ) Other borrowed funds Level 2 (70,000 ) (73,110 ) (60,000 ) (61,006 ) Long-term debt Level 2 (20,619 ) (18,062 ) (20,619 ) (18,167 ) Accrued interest payable Level 2 (274 ) (274 ) (518 ) (518 ) Off-balance sheet credit-related items Loan commitments — — — — The methods and assumptions used to estimate fair value are described as follows. Carrying amount is the estimated fair value for cash and cash equivalents, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans, interest-bearing time deposits in other financial institutions, or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant. The estimated fair values of financial instruments disclosed above as follow the guidance in ASU 2016-01 which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments incorporating discounts for credit, liquidity and marketability factors.

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2020
DEPOSITS [Abstract]
DEPOSITS	NOTE 6 – DEPOSITS Deposits are summarized as follows (dollars in thousands): September 30, 2020 December 31, 2019 Noninterest-bearing demand $ 738,471 $ 482,499 Interest bearing demand 560,063 479,341 Savings and money market accounts 756,579 639,329 Certificates of deposit 115,466 152,125 $ 2,170,579 $ 1,753,294 Time deposits that exceed the FDIC insurance limit of $250,000 were approximately $32.0 million at September 30, 2020 and $37.7 million at December 31, 2019.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	9 Months Ended
	Sep. 30, 2020
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 7 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate September 30, 2020 Single maturity fixed rate advances $ 40,000 April 2021 to July 2024 2.50 % Putable advances 30,000 November 2024 to February 2030 1.36 % $ 70,000 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2019 Single maturity fixed rate advances $ 40,000 April 2021 to July 2024 2.50 % Putable advances 20,000 November 2024 1.81 % $ 60,000 Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $451.8 million and $498.1 million under a blanket lien arrangement at September 30, 2020 and December 31, 2019, respectively. Scheduled repayments of FHLB advances as of September 30, 2020 were as follows (in thousands): 2020 $ — 2021 10,000 2022 — 2023 10,000 2024 40,000 Thereafter 10,000 $ 70,000 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at September 30, 2020 and December 31, 2019, and the Company had approximately $12.6 million and $13.0 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $14.0 million and $15.2 million at September 30, 2020 and December 31, 2019, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2020
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 8 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and nine month periods ended September 30, 2020 and 2019 are as follows (dollars in thousands, except per share data): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Net income available to common shares $ 7,120 $ 8,158 $ 21,169 $ 23,807 Weighted average shares outstanding, including participating stock awards - Basic 34,109,901 34,060,796 34,108,676 34,048,087 Dilutive potential common shares: Stock options — — — — Weighted average shares outstanding - Diluted 34,109,901 34,060,796 34,108,676 34,048,087 Basic earnings per common share $ 0.21 $ 0.24 $ 0.62 $ 0.70 Diluted earnings per common share $ 0.21 $ 0.24 $ 0.62 $ 0.70 There were no antidilutive shares of common stock in the three and nine month periods ended September 30, 2020 and 2019.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	9 Months Ended
	Sep. 30, 2020
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Current $ 1,304 $ 1,971 $ 5,974 $ 5,290 Deferred 309 (89 ) (1,174 ) 222 $ 1,613 $ 1,882 $ 4,800 $ 5,512 The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Statutory rate 21 % 21 % 21 % 21 % Statutory rate applied to income before taxes $ 1,834 $ 2,108 $ 5,454 $ 6,157 Deduct Tax-exempt interest income (178 ) (183 ) (533 ) (523 ) Bank-owned life insurance (45 ) (53 ) (144 ) (155 ) Other, net 2 10 23 33 $ 1,613 $ 1,882 $ 4,800 $ 5,512 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. At September 30, 2020 and December 31, 2019, a valuation allowance of $92,000 was established for a capital loss carryforward related to the liquidation of assets of a partnership interest the Bank acquired through a loan settlement. Management believes it is more likely than not that all of the remaining deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): September 30, 2020 December 31, 2019 Deferred tax assets Allowance for loan losses $ 3,477 $ 3,612 Net deferred loan fees 1,516 — Nonaccrual loan interest 134 182 Valuation allowance on other real estate owned 83 76 Other 541 248 Gross deferred tax assets 5,751 4,118 Valuation allowance (92 ) (92 ) Total net deferred tax assets 5,659 4,026 Deferred tax liabilities Depreciation (1,329 ) (1,053 ) Prepaid expenses (170 ) (172 ) Unrealized gain on securities available for sale (1,221 ) (406 ) Net deferred loan costs — (67 ) Other (502 ) (250 ) Gross deferred tax liabilities (3,222 ) (1,948 ) Net deferred tax asset $ 2,437 $ 2,078 There were no unrecognized tax benefits at September 30, 2020 or December 31, 2019 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2015.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 10 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): September 30, 2020 December 31, 2019 Commitments to make loans $ 83,113 $ 65,648 Letters of credit 12,475 15,303 Unused lines of credit 594,067 502,200 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $5.0 million and $11.0 million at September 30, 2020 and December 31, 2019, respectively. The Bank enters into commitments to sell mortgage backed securities, which it later buys back in order to hedge its exposure to interest rate risk in its mortgage pipeline. These commitments were approximately $24.0 million at September 30, 2020 and $0 at December 31, 2019. At September 30, 2020, approximately 52.4% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to prime or one month LIBOR and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2020
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of September 30, 2020, there were no material pending legal proceedings to which the Company or any of its subsidiaries are a party or which any of its properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2020
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12 – SHAREHOLDERS' EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). The rules include a common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which effectively results in a minimum CET1 ratio of 7.0%. The minimum ratio of Tier 1 capital to risk-weighted assets is 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5%), which effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer), and requires a minimum leverage ratio of 4.0%. At September 30, 2020 and December 31, 2019, actual capital levels and minimum required levels were (dollars in thousands): Minimum Capital Minimum Capital Adequacy With To Be Well Capitalized Under Prompt Corrective Actual Adequacy Capital Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2020 CET1 capital (to risk weighted assets) Consolidated $ 229,270 15.3 % $ 67,421 4.5 % $ 104,876 7.0 % N/A N/A Bank 242,425 16.2 67,435 4.5 104,899 7.0 $ 97,406 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 249,270 16.6 89,894 6.0 127,350 8.5 N/A N/A Bank 242,425 16.2 89,914 6.0 127,378 8.5 119,885 8.0 Total capital (to risk weighted assets) Consolidated 265,828 17.7 119,859 8.0 157,315 10.5 N/A N/A Bank 258,983 17.3 119,885 8.0 157,349 10.5 149,856 10.0 Tier 1 capital (to average assets) Consolidated 249,270 9.8 101,930 4.0 N/A N/A N/A N/A Bank 242,425 9.5 101,900 4.0 N/A N/A 127,374 5.0 December 31, 2019 CET1 capital (to risk weighted assets) Consolidated $ 215,925 13.5 % $ 72,187 4.5 % $ 112,290 7.0 % N/A N/A Bank 228,761 14.3 72,182 4.5 112,284 7.0 $ 104,263 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 235,925 14.7 96,249 6.0 136,353 8.5 N/A N/A Bank 228,761 14.3 96,243 6.0 136,344 8.5 128,324 8.0 Total capital (to risk weighted assets) Consolidated 253,125 15.8 128,332 8.0 168,436 10.5 N/A N/A Bank 245,961 15.3 128,324 8.0 168,425 10.5 160,405 10.0 Tier 1 capital (to average assets) Consolidated 235,925 11.5 82,130 4.0 N/A N/A N/A N/A Bank 228,761 11.2 82,070 4.0 N/A N/A 102,587 5.0 The full $20.0 million balance of trust preferred securities outstanding at September 30, 2020 and December 31, 2019, respectively, qualified as Tier 1 capital. Refer to our 2019 Form 10-K for more information on the trust preferred securities. The Bank was categorized as "well capitalized" at September 30, 2020 and December 31, 2019.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust II. This is a grantor trust that issued trust preferred securities and is not consolidated with the Company under accounting principles generally accepted in the United States of America.
Recent Events	Recent Events: In Michigan, beginning March 24, 2020, Governor Gretchen Whitmer issued a series of executive orders, which severely limited economic activity in Michigan, requiring businesses not deemed to be essential, to severely limit or shut down operations. Under later executive orders, Governor Whitmer permitted a phased reopening of businesses, subject to stringent health and safety requirements and strict social distancing measures. As of September 30, 2020, most businesses in Michigan were allowed to be open in some capacity, subject to stringent health and safety requirements, strict social distancing measures and nonsurgical face mask requirements. Congress passed a number of measures in late March 2020, designed to infuse cash into the economy to offset the negative impacts of business closings and restrictions. The Company quickly responded to the changing environment by successfully executing its business continuity plan, including implementing work from home arrangements and limiting branch activities. As of September 30, 2020, branches were fully open with additional health and safety requirements to comply with Governor Whitmer’s then-current executive orders, including, among other things, daily deep cleaning, nonsurgical face mask requirements and strict social distancing measures. On October 2, and 12, 2020, the Michigan Supreme Court issued decisions invalidating all of Governor Whitmer’s executive orders effective immediately. In response, Governor Whitmer, acting through various state agencies, has sought to substantially re-implement the requirements of the executive orders by way of state agency emergency orders. Also, certain county and municipal governments have issued emergency orders seeking to keep elements of the executive orders in place. Legal challenges to these orders may occur. Finally, the Michigan legislature has passed legislation – which Governor Whitmer is expected to sign and enact into law – codifying certain elements of the executive orders. The patchwork implementation of state agency and local government executive orders – coupled with the possibility of legal challenges to these orders – creates uncertainty as to legal requirements applicable to businesses, institutions and individuals in Michigan. This uncertainty may have a negative impact on the business, financial condition, and results of operations of the Company and its customers. 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” The CARES Act, as amended, included an allocation of $659 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. Payments are deferred until either the date on which the SBA remits the amount of forgiveness proceeds to the lender or the date that is 10 months after the last day of the covered period if the borrower does not apply for forgiveness within that 10 month period. Through September 30, 2020, the Bank had originated 1,738 PPP loans totaling $346.7 million in principal, with an average loan size of $200,000. Fees totaling $10.0 million were collected from the SBA for these loans in the nine months ended September 30, 2020. These fees are deferred and amortized into interest income over the contractual period of 24 months or 60 months, as applicable. Upon SBA forgiveness, unamortized fees are then recognized into interest income. Participation in the PPP had a significant impact on the Bank’s asset mix and net interest income in the second and third quarters of 2020 and will continue to impact both asset mix and net interest income for the remainder of 2020. The PPP program expired on August 8, 2020.
Basis of Presentation	Basis of Presentation Operating results for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates	Use of Estimates
Allowance for Loan Losses	Allowance for Loan Losses 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 qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. PPP loans receive $0 allocation as they are fully guaranteed by the SBA and are subject to be forgiven under the SBA forgiveness criteria. At September 30, 2020, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. At March 31, 2020 and June 30, 2020, the qualitative factor allocations for economic trends and at September 30, 2020 the external factors were increased to provide additional coverage related to the COVID-19 pandemic. In addition, at September 30, 2020, an additional qualitative allocation was provided on loans that remained in modified status under the CARES Act. A loan is impaired when, based on current information and events, it is believed to be 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 a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral.
Foreclosed Assets	Foreclosed Assets
Income Taxes	Income Taxes The Company recognizes a tax position 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, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense.
Revenue Recognition	Revenue Recognition Interest Income: The Company’s largest source of revenue is interest income which is primarily recognized on an accrual basis based on contractual terms written into loans and investment contracts. Noninterest Revenue: The Company derives the majority of its noninterest revenue from: (1) service charges for deposit related services, (2) gains related to mortgage loan sales, (3) trust fees and (4) debit and credit card interchange income. Most of these services are transaction based and revenue is recognized as the related service is provided.
Derivatives	Derivatives
Reclassifications	Reclassifications
New Accounting Standards	Adoption of New Standards Newly Issued Not Yet Effective Standards Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU No. 2019-10 Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) – Effective Dates

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2020
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2020 Available for Sale U.S. Treasury and federal agency securities $ 59,606 $ 425 $ (52 ) $ 59,979 U.S. Agency MBS and CMOs 60,110 1,629 (2 ) 61,737 Tax-exempt state and municipal bonds 45,243 1,928 (1 ) 47,170 Taxable state and municipal bonds 53,220 1,714 (20 ) 54,914 Corporate bonds and other debt securities 5,933 195 — 6,128 $ 224,112 $ 5,891 $ (75 ) $ 229,928 Held to Maturity Tax-exempt state and municipal bonds $ 91,394 $ 3,748 $ — $ 95,142 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Available for Sale U.S. Treasury and federal agency securities $ 74,839 $ 95 $ (185 ) $ 74,749 U.S. Agency MBS and CMOs 45,795 474 (68 ) 46,201 Tax-exempt state and municipal bonds 44,718 1,244 — 45,962 Taxable state and municipal bonds 51,683 404 (65 ) 52,022 Corporate bonds and other debt securities 6,263 55 (3 ) 6,315 $ 223,298 $ 2,272 $ (321 ) $ 225,249 Held to Maturity Tax-exempt state and municipal bonds $ 82,720 $ 2,408 $ — $ 85,128
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at September 30, 2020 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 28,636 $ 28,833 $ 34,257 $ 34,479 Due from one to five years 29,384 30,567 64,101 66,323 Due from five to ten years 14,749 16,076 68,427 70,321 Due after ten years 18,625 19,666 57,327 58,805 $ 91,394 $ 95,142 $ 224,112 $ 229,928
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total September 30, 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 12,948 $ (52 ) $ — $ — $ 12,948 $ (52 ) U.S. Agency MBS and CMOs 1,971 (2 ) — — 1,971 (2 ) Tax-exempt state and municipal bonds 755 (1 ) — — 755 (1 ) Taxable state and municipal bonds 3,343 (20 ) — — 3,343 (20 ) Corporate bonds and other securities — — — — — — Total $ 19,017 $ (75 ) $ — $ — $ 19,017 $ (75 ) Held to Maturity Tax-exempt state and municipal bonds $ — $ — $ — $ — $ — $ — Less than 12 Months 12 Months or More Total December 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 15,009 $ (97 ) $ 27,026 $ (87 ) $ 42,035 $ (184 ) U.S. Agency MBS and CMOs 19,117 (56 ) 1,196 (12 ) 20,313 (68 ) Tax-exempt state and municipal bonds 319 — — — 319 — Taxable state and municipal bonds 8,569 (57 ) 2,981 (9 ) 11,550 (66 ) Corporate bonds and other debt securities 932 — 852 (3 ) 1,784 (3 ) Total temporarily impaired $ 43,946 $ (210 ) $ 32,055 $ (111 ) $ 76,001 $ (321 ) Held to Maturity Tax-exempt state and municipal bonds $ — $ — $ — $ — $ — $ —

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2020
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): September 30, 2020 December 31, 2019 Commercial and industrial: Commercial and industrial, excluding PPP $ 413,702 $ 499,572 Paycheck protection program (PPP) 339,216 — Total commercial and industrial 752,918 499,572 Commercial real estate: Residential developed 10,072 14,705 Vacant and unimproved 45,534 41,796 Commercial development 605 665 Residential improved 117,202 130,861 Commercial improved 273,355 292,799 Manufacturing and industrial 112,155 117,632 Total commercial real estate 558,923 598,458 Consumer Residential mortgage 164,818 211,049 Unsecured 189 274 Home equity 61,276 70,936 Other secured 4,211 5,338 Total consumer 230,494 287,597 Total loans 1,542,335 1,385,627 Allowance for loan losses (16,558 ) (17,200 ) $ 1,525,777 $ 1,368,427
Activity in Allowance for Loan Losses by Portfolio Segment	Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,431 $ 7,262 $ 3,138 $ 24 $ 15,855 Charge-offs — — (24 ) — (24 ) Recoveries 22 168 37 — 227 Provision for loan losses 513 237 (242 ) (8 ) 500 Ending Balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Three months ended September 30, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 7,231 $ 6,309 $ 3,296 $ 50 $ 16,886 Charge-offs — — (48 ) — (48 ) Recoveries 233 51 23 — 307 Provision for loan losses 23 105 (105 ) (23 ) — Ending Balance $ 7,487 $ 6,465 $ 3,166 $ 27 $ 17,145 Nine months ended September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 7,658 $ 6,521 $ 3,009 $ 12 $ 17,200 Charge-offs (1,192 ) (2,957 ) (97 ) — (4,246 ) Recoveries 124 1,159 121 — 1,404 Provision for loan losses (624 ) 2,944 (124 ) 4 2,200 Ending Balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Nine months ended September 30, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,856 $ 6,544 $ 3,449 $ 27 $ 16,876 Charge-offs — (132 ) (114 ) — (246 ) Recoveries 510 342 113 — 965 Provision for loan losses 121 (289 ) (282 ) — (450 ) Ending Balance $ 7,487 $ 6,465 $ 3,166 $ 27 $ 17,145
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): September 30, 2020 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 660 $ 26 $ 330 $ — $ 1,016 Collectively evaluated for impairment 5,306 7,641 2,579 16 15,542 Total ending allowance balance $ 5,966 $ 7,667 $ 2,909 $ 16 $ 16,558 Loans: Individually reviewed for impairment $ 2,803 $ 2,175 $ 4,356 $ — $ 9,334 Collectively evaluated for impairment 750,115 556,748 226,138 — 1,533,001 Total ending loans balance $ 752,918 $ 558,923 $ 230,494 $ — $ 1,542,335 December 31, 2019 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 1,213 $ 32 $ 379 $ — $ 1,624 Collectively evaluated for impairment 6,445 6,489 2,630 12 15,576 Total ending allowance balance $ 7,658 $ 6,521 $ 3,009 $ 12 $ 17,200 Loans: Individually reviewed for impairment $ 5,797 $ 2,928 $ 5,140 $ — $ 13,865 Collectively evaluated for impairment 493,775 595,530 282,457 — 1,371,762 Total ending loans balance $ 499,572 $ 598,458 $ 287,597 $ — $ 1,385,627
Loans Individually Evaluated for Impairment by Class of Loans	The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2020 (dollars in thousands): September 30, 2020 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 168 $ 168 $ — Commercial real estate: Residential improved 120 120 — Commercial improved 1,290 1,290 — 1,410 1,410 — Consumer — — — Total with no related allowance recorded $ 1,578 $ 1,578 $ — With an allowance recorded: Commercial and industrial $ 2,635 $ 2,635 $ 660 Commercial real estate: Residential developed 70 70 3 Commercial improved 350 350 13 Manufacturing and industrial 345 345 10 765 765 26 Consumer: Residential mortgage 3,784 3,784 286 Unsecured 142 142 11 Home equity 406 406 31 Other secured 24 24 2 4,356 4,356 330 Total with an allowance recorded $ 7,756 $ 7,756 $ 1,016 Total $ 9,334 $ 9,334 $ 1,016 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019 (dollars in thousands): December 31, 2019 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 180 $ 180 $ — Commercial real estate: Vacant and unimproved 130 130 — Residential improved 377 377 — Commercial improved 1,380 1,380 — 1,887 1,887 — Consumer — — — Total with no related allowance recorded $ 2,067 $ 2,067 $ — With an allowance recorded: Commercial and industrial $ 5,617 $ 5,617 $ 1,213 Commercial real estate: Residential developed 76 76 3 Residential improved 28 28 2 Commercial improved 578 578 16 Manufacturing and industrial 359 359 11 1,041 1,041 32 Consumer: Residential mortgage 4,242 4,242 313 Unsecured 198 198 14 Home equity 677 677 50 Other secured 23 23 2 5,140 5,140 379 Total with an allowance recorded $ 11,798 $ 11,798 $ 1,624 Total $ 13,865 $ 13,865 $ 1,624
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans	The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and nine month periods ended September 30, 2020 and 2019 (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Average of impaired loans during the period: Commercial and industrial $ 2,208 $ 3,781 $ 4,362 $ 5,304 Commercial real estate: Residential developed 71 146 72 161 Vacant and unimproved — 62 — 107 Residential improved 168 538 211 421 Commercial improved 1,650 2,071 4,652 2,187 Manufacturing and industrial 347 366 352 372 Consumer 4,441 5,599 4,687 5,900 Interest income recognized during impairment: Commercial and industrial 23 174 303 692 Commercial real estate 33 45 193 141 Consumer 41 70 153 210 Cash-basis interest income recognized Commercial and industrial 13 160 298 707 Commercial real estate 33 48 218 149 Consumer 43 71 148 210
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2020 and December 31, 2019 September 30, 2020 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 97 — 97 — Consumer: Residential mortgage 98 — 98 — Total $ 195 $ — December 31, 2019 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 98 — 98 — Consumer: Residential mortgage 105 — 105 — Total $ 203 $ —
Aging of Recorded Investment in Past Due Loans by Class of Loans	The following table presents the aging of the recorded investment in past due loans as of September 30, 2020 and December 31, 2019 by class of loans (dollars in thousands): September 30, 2020 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 65 $ — $ 65 $ 752,853 $ 752,918 Commercial real estate: Residential developed — — — 10,072 10,072 Vacant and unimproved — — — 45,534 45,534 Commercial development — — — 605 605 Residential improved — 97 97 117,105 117,202 Commercial improved 161 — 161 273,194 273,355 Manufacturing and industrial — — — 112,155 112,155 161 97 258 558,665 558,923 Consumer: Residential mortgage — 97 97 164,721 164,818 Unsecured — — — 189 189 Home equity 104 — 104 61,172 61,276 Other secured — — — 4,211 4,211 104 97 201 230,293 230,494 Total $ 330 $ 194 $ 524 $ 1,541,811 $ 1,542,335 December 31, 2019 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 499,572 $ 499,572 Commercial real estate: Residential developed — — — 14,705 14,705 Vacant and unimproved — — — 41,796 41,796 Commercial development — — — 665 665 Residential improved 171 15 186 130,675 130,861 Commercial improved 103 — 103 292,696 292,799 Manufacturing and industrial — — — 117,632 117,632 274 15 289 598,169 598,458 Consumer: Residential mortgage 2 103 105 210,944 211,049 Unsecured — — — 274 274 Home equity 8 — 8 70,928 70,936 Other secured 3 — 3 5,335 5,338 13 103 116 287,481 287,597 Total $ 287 $ 118 $ 405 $ 1,385,222 $ 1,385,627
Troubled Debt Restructurings	The following table presents information regarding troubled debt restructurings as of September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 December 31, 2019 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 7 $ 2,803 7 $ 5,797 Commercial real estate 13 2,175 15 2,770 Consumer 62 4,356 69 5,140 82 $ 9,334 91 $ 13,707 The following table presents information related to accruing troubled debt restructurings as of September 30, 2020 and December 31, 2019. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): September 30, 2020 December 31, 2019 Accruing TDR - nonaccrual at restructuring $ — $ — Accruing TDR - accruing at restructuring 6,884 8,295 Accruing TDR - upgraded to accruing after six consecutive payments 2,353 5,314 $ 9,237 $ 13,609 There were no troubled debt restructurings executed during the three month periods ended September 30, 2020 and 2019. The following tables present information regarding troubled debt restructurings executed during the nine month periods ended September 30, 2020 and 2019 (dollars in thousands): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial — $ — $ — — $ — $ — Commercial real estate — — — — — — Consumer 2 30 — 1 24 — 2 $ 30 $ — 1 $ 24 $ —
Risk Grade Category of Loans by Class of Loans	As of September 30, 2020 and December 31, 2019, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): September 30, 2020 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 354,130 $ 17,582 $ 98,304 $ 270,928 $ 8,986 $ 2,988 $ — $ — $ 752,918 Commercial real estate: Residential developed — — 132 9,940 — — — — 10,072 Vacant and unimproved — 4,221 10,708 29,078 1,527 — — — 45,534 Commercial development — — 309 296 — — — — 605 Residential improved — — 26,426 90,445 234 — 97 — 117,202 Commercial improved — 6,494 62,472 195,275 8,764 350 — — 273,355 Manufacturing & industrial — — 33,965 74,400 3,790 — — — 112,155 $ 354,130 $ 28,297 $ 232,316 $ 670,362 $ 23,301 $ 3,338 $ 97 $ — $ 1,311,841 December 31, 2019 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 15,000 $ 11,768 $ 158,851 $ 290,267 $ 17,664 $ 6,022 $ — $ — $ 499,572 Commercial real estate: Residential developed — — 312 14,393 — — — — 14,705 Vacant and unimproved — 9,201 8,085 22,819 1,691 — — — 41,796 Commercial development — — 79 586 — — — — 665 Residential improved — — 20,142 109,932 518 171 98 — 130,861 Commercial improved — 6,893 67,915 213,790 3,847 354 — — 292,799 Manufacturing & industrial — 2,404 36,401 77,435 1,392 — — — 117,632 $ 15,000 $ 30,266 $ 291,785 $ 729,222 $ 25,112 $ 6,547 $ 98 $ — $ 1,098,030
Commercial Loans Classified as Substandard or Worse	Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): September 30, 2020 December 31, 2019 Not classified as impaired $ 591 $ 591 Classified as impaired 2,844 6,054 Total commercial loans classified substandard or worse $ 3,435 $ 6,645
Recorded Investment in Consumer Loans Based on Payment Activity	The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): September 30, 2020 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 164,721 $ 189 $ 61,276 $ 4,211 Nonperforming 97 — — — Total $ 164,818 $ 189 $ 61,276 $ 4,211 December 31, 2019 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 210,946 $ 274 $ 70,936 $ 5,338 Nonperforming 103 — — — Total $ 211,049 $ 274 $ 70,936 $ 5,338

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	9 Months Ended
	Sep. 30, 2020
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): Nine Months Ended September 30, 2020 Year Ended December 31, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 3,112 $ 4,183 $ 4,183 Additions, transfers from loans — — — Proceeds from sales of other real estate owned (92 ) (589 ) (340 ) Valuation allowance reversal upon sale — (453 ) (171 ) Gain / (loss) on sales of other real estate owned — (29 ) 79 3,020 3,112 3,751 Less: valuation allowance (396 ) (364 ) (642 ) Ending balance $ 2,624 $ 2,748 $ 3,109
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance $ 364 $ 803 Additions charged to expense 32 10 Reversals upon sale — (171 ) Ending balance $ 396 $ 642

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2020
FAIR VALUE [Abstract]
Assets Measured at Fair Value on Recurring Basis	Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 U.S. Treasury and federal agency securities $ 59,979 $ — $ 59,979 $ — U.S. Agency MBS and CMOs 61,737 — 61,737 — Tax-exempt state and municipal bonds 47,170 — 47,170 — Taxable state and municipal bonds 54,914 — 54,914 — Corporate bonds and other debt securities 6,128 — 6,128 — Other equity securities 1,518 — 1,518 — Loans held for sale 3,508 — 3,508 — Interest rate swaps 5,080 — — 5,080 Interest rate swaps (5,080 ) — — (5,080 ) December 31, 2019 U.S. Treasury and federal agency securities $ 74,749 $ — $ 74,749 $ — U.S. Agency MBS and CMOs 46,201 — 46,201 — Tax-exempt state and municipal bonds 45,962 — 45,962 — Taxable state and municipal bonds 52,022 — 52,022 — Corporate bonds and other debt securities 6,315 — 6,315 — Other equity securities 1,481 — 1,481 — Loans held for sale 3,294 — 3,294 — Interest rate swaps 1,830 — — 1,830 Interest rate swaps (1,830 ) — — (1,830 )
Assets Measured at Fair Value on Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Impaired loans $ 2,481 $ — $ — $ 2,481 Other real estate owned 281 — — 281 December 31, 2019 Impaired loans $ 5,151 $ — $ — $ 5,151 Other real estate owned 405 — — 405
Quantitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) September 30, 2020 Impaired Loans $ 2,481 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 30.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 281 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2019 Impaired Loans $ 5,151 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 405 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented	The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2020 and December 31, 2019 (dollars in thousands): Level in September 30, 2020 December 31, 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 28,294 $ 28,294 $ 31,942 $ 31,942 Cash equivalents Level 2 504,706 504,706 240,508 240,508 Securities held to maturity Level 3 91,394 95,142 82,720 85,128 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,523,296 1,560,997 1,363,276 1,395,446 Bank owned life insurance Level 3 42,368 42,368 42,156 42,156 Accrued interest receivable Level 2 6,895 6,895 4,866 4,866 Financial liabilities Deposits Level 2 (2,170,579 ) (2,171,039 ) (1,753,294 ) (1,753,877 ) Other borrowed funds Level 2 (70,000 ) (73,110 ) (60,000 ) (61,006 ) Long-term debt Level 2 (20,619 ) (18,062 ) (20,619 ) (18,167 ) Accrued interest payable Level 2 (274 ) (274 ) (518 ) (518 ) Off-balance sheet credit-related items Loan commitments — — — —

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2020
DEPOSITS [Abstract]
Deposits Liabilities	Deposits are summarized as follows (dollars in thousands): September 30, 2020 December 31, 2019 Noninterest-bearing demand $ 738,471 $ 482,499 Interest bearing demand 560,063 479,341 Savings and money market accounts 756,579 639,329 Certificates of deposit 115,466 152,125 $ 2,170,579 $ 1,753,294

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	9 Months Ended
	Sep. 30, 2020
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate September 30, 2020 Single maturity fixed rate advances $ 40,000 April 2021 to July 2024 2.50 % Putable advances 30,000 November 2024 to February 2030 1.36 % $ 70,000 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2019 Single maturity fixed rate advances $ 40,000 April 2021 to July 2024 2.50 % Putable advances 20,000 November 2024 1.81 % $ 60,000
Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of September 30, 2020 were as follows (in thousands): 2020 $ — 2021 10,000 2022 — 2023 10,000 2024 40,000 Thereafter 10,000 $ 70,000

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
EARNINGS PER COMMON SHARE [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Common Share	A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and nine month periods ended September 30, 2020 and 2019 are as follows (dollars in thousands, except per share data): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Net income available to common shares $ 7,120 $ 8,158 $ 21,169 $ 23,807 Weighted average shares outstanding, including participating stock awards - Basic 34,109,901 34,060,796 34,108,676 34,048,087 Dilutive potential common shares: Stock options — — — — Weighted average shares outstanding - Diluted 34,109,901 34,060,796 34,108,676 34,048,087 Basic earnings per common share $ 0.21 $ 0.24 $ 0.62 $ 0.70 Diluted earnings per common share $ 0.21 $ 0.24 $ 0.62 $ 0.70

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2020
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Current $ 1,304 $ 1,971 $ 5,974 $ 5,290 Deferred 309 (89 ) (1,174 ) 222 $ 1,613 $ 1,882 $ 4,800 $ 5,512
Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income	The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Statutory rate 21 % 21 % 21 % 21 % Statutory rate applied to income before taxes $ 1,834 $ 2,108 $ 5,454 $ 6,157 Deduct Tax-exempt interest income (178 ) (183 ) (533 ) (523 ) Bank-owned life insurance (45 ) (53 ) (144 ) (155 ) Other, net 2 10 23 33 $ 1,613 $ 1,882 $ 4,800 $ 5,512
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): September 30, 2020 December 31, 2019 Deferred tax assets Allowance for loan losses $ 3,477 $ 3,612 Net deferred loan fees 1,516 — Nonaccrual loan interest 134 182 Valuation allowance on other real estate owned 83 76 Other 541 248 Gross deferred tax assets 5,751 4,118 Valuation allowance (92 ) (92 ) Total net deferred tax assets 5,659 4,026 Deferred tax liabilities Depreciation (1,329 ) (1,053 ) Prepaid expenses (170 ) (172 ) Unrealized gain on securities available for sale (1,221 ) (406 ) Net deferred loan costs — (67 ) Other (502 ) (250 ) Gross deferred tax liabilities (3,222 ) (1,948 ) Net deferred tax asset $ 2,437 $ 2,078

COMMITMENTS AND OFF BALANCE-S_2

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk	A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): September 30, 2020 December 31, 2019 Commitments to make loans $ 83,113 $ 65,648 Letters of credit 12,475 15,303 Unused lines of credit 594,067 502,200

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2020
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	At September 30, 2020 and December 31, 2019, actual capital levels and minimum required levels were (dollars in thousands): Minimum Capital Minimum Capital Adequacy With To Be Well Capitalized Under Prompt Corrective Actual Adequacy Capital Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2020 CET1 capital (to risk weighted assets) Consolidated $ 229,270 15.3 % $ 67,421 4.5 % $ 104,876 7.0 % N/A N/A Bank 242,425 16.2 67,435 4.5 104,899 7.0 $ 97,406 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 249,270 16.6 89,894 6.0 127,350 8.5 N/A N/A Bank 242,425 16.2 89,914 6.0 127,378 8.5 119,885 8.0 Total capital (to risk weighted assets) Consolidated 265,828 17.7 119,859 8.0 157,315 10.5 N/A N/A Bank 258,983 17.3 119,885 8.0 157,349 10.5 149,856 10.0 Tier 1 capital (to average assets) Consolidated 249,270 9.8 101,930 4.0 N/A N/A N/A N/A Bank 242,425 9.5 101,900 4.0 N/A N/A 127,374 5.0 December 31, 2019 CET1 capital (to risk weighted assets) Consolidated $ 215,925 13.5 % $ 72,187 4.5 % $ 112,290 7.0 % N/A N/A Bank 228,761 14.3 72,182 4.5 112,284 7.0 $ 104,263 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 235,925 14.7 96,249 6.0 136,353 8.5 N/A N/A Bank 228,761 14.3 96,243 6.0 136,344 8.5 128,324 8.0 Total capital (to risk weighted assets) Consolidated 253,125 15.8 128,332 8.0 168,436 10.5 N/A N/A Bank 245,961 15.3 128,324 8.0 168,425 10.5 160,405 10.0 Tier 1 capital (to average assets) Consolidated 235,925 11.5 82,130 4.0 N/A N/A N/A N/A Bank 228,761 11.2 82,070 4.0 N/A N/A 102,587 5.0

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	Mar. 15, 2020	Mar. 03, 2020	Sep. 30, 2020USD ($)BranchLoan	Jun. 30, 2020USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices | Branch			26
Recent Events [Abstract]
Reduction in overnight federal funds rate	100	50
Aggregate number of loan modifications made by other than troubled debt restructurings | Loan			726
Aggregate amount of loan modifications made by other than troubled debt restructurings, aggregate principal balances			$ 337,200
Number of short-term loan modifications | Loan			26
Amount of short-term loan modifications			$ 79,900	$ 297,300
Extension term of interest-only period			3 months
Interest-Only Modifications [Member]
Recent Events [Abstract]
Aggregate number of loan modifications made by other than troubled debt restructurings | Loan			726
Aggregate amount of loan modifications made by other than troubled debt restructurings, aggregate principal balances			$ 337,200
PPP Loans [Member]
Recent Events [Abstract]
Number of loans originated | Loan			1,738
Loans originated			$ 346,700
Average size of loans originated			200,000
Fees collected for loans originated			$ 10,000
PPP Loans [Member] | Minimum [Member]
Recent Events [Abstract]
Contractual period			24 months
PPP Loans [Member] | Maximum [Member]
Recent Events [Abstract]
Contractual period			60 months

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Allowance for Loan Losses (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)Grade	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Allowance for Loan Losses [Abstract]
Allowance for loan losses	$ 16,558	$ 15,855	$ 17,200	$ 17,145	$ 16,886	$ 16,876
Residential Mortgage [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
PPP Loans [Member]
Allowance for Loan Losses [Abstract]
Allowance for loan losses	$ 0
Commercial [Member]
Allowance for Loan Losses [Abstract]
Allowance for loan losses	$ 5,966	5,431	7,658	7,487	7,231	6,856
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	18 months
Threshold balance of loans evaluated for impairment	$ 500
Commercial [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Grade	6
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Allowance for loan losses	$ 7,667	7,262	6,521	6,465	6,309	6,544
Threshold balance of loans evaluated for impairment	$ 500
Commercial Real Estate [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Grade	6
Consumer [Member]
Allowance for Loan Losses [Abstract]
Allowance for loan losses	$ 2,909	$ 3,138	$ 3,009	$ 3,166	$ 3,296	$ 3,449
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Derivatives (Details) - Swap [Member] - Interest Rate Swap [Member] $ in Millions	Sep. 30, 2020USD ($)InterestRateSwap	Dec. 31, 2019USD ($)
Derivatives [Abstract]
Number of freestanding interest rate swaps | InterestRateSwap	5
Notional amount of agreements	$ 149.8	$ 70.3
Derivative asset fair value	5.1	1.8
Derivative liability fair value	$ 5.1	$ 1.8

SECURITIES, Available-for-sale

SECURITIES, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available for Sale, Debt Securities [Abstract]
Amortized cost	$ 224,112	$ 223,298
Gross unrealized gains	5,891	2,272
Gross unrealized losses	(75)	(321)
Fair value	229,928	225,249
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	59,606	74,839
Gross unrealized gains	425	95
Gross unrealized losses	(52)	(185)
Fair value	59,979	74,749
U.S. Agency MBS and CMOs [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	60,110	45,795
Gross unrealized gains	1,629	474
Gross unrealized losses	(2)	(68)
Fair value	61,737	46,201
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	45,243	44,718
Gross unrealized gains	1,928	1,244
Gross unrealized losses	(1)	0
Fair value	47,170	45,962
Taxable State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	53,220	51,683
Gross unrealized gains	1,714	404
Gross unrealized losses	(20)	(65)
Fair value	54,914	52,022
Corporate Bonds and Other Debt Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	5,933	6,263
Gross unrealized gains	195	55
Gross unrealized losses	0	(3)
Fair value	$ 6,128	$ 6,315

SECURITIES, Held-to-maturity Se

SECURITIES, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Held to Maturity [Abstract]
Amortized cost	$ 91,394	$ 82,720
Fair value	95,142	85,128
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	91,394	82,720
Gross unrealized gains	3,748	2,408
Gross unrealized losses	0	0
Fair value	$ 95,142	$ 85,128

SECURITIES, Sales of Securities

SECURITIES, Sales of Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
SECURITIES [Abstract]
Gain on sale of securities	$ 0	$ 0	$ 0	$ 0

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 28,636
Due from one to five years	29,384
Due from five to ten years	14,749
Due after ten years	18,625
Amortized cost	91,394	$ 82,720
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	28,833
Due from one to five years	30,567
Due from five to ten years	16,076
Due after ten years	19,666
Fair value	95,142	85,128
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	34,257
Due from one to five years	64,101
Due from five to ten years	68,427
Due after ten years	57,327
Amortized cost	224,112	223,298
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	34,479
Due from one to five years	66,323
Due from five to ten years	70,321
Due after ten years	58,805
Fair value	$ 229,928	$ 225,249

SECURITIES, Available for Sale

SECURITIES, Available for Sale - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 19,017	$ 43,946
12 months or more	0	32,055
Total	19,017	76,001
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(75)	(210)
12 months or more	0	(111)
Total	(75)	(321)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	12,948	15,009
12 months or more	0	27,026
Total	12,948	42,035
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(52)	(97)
12 months or more	0	(87)
Total	(52)	(184)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	1,971	19,117
12 months or more	0	1,196
Total	1,971	20,313
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(2)	(56)
12 months or more	0	(12)
Total	(2)	(68)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	755	319
12 months or more	0	0
Total	755	319
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(1)	0
12 months or more	0	0
Total	(1)	0
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	3,343	8,569
12 months or more	0	2,981
Total	3,343	11,550
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(20)	(57)
12 months or more	0	(9)
Total	(20)	(66)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	0	932
12 months or more	0	852
Total	0	1,784
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	0	0
12 months or more	0	(3)
Total	$ 0	$ (3)

SECURITIES, Held to Maturity -

SECURITIES, Held to Maturity - Continuous Unrealized Loss Position (Details) - Tax-Exempt State and Municipal Bonds [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 0	$ 0
12 months or more	0	0
Total	0	0
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	0	0
12 months or more	0	0
Total	$ 0	$ 0

SECURITIES, Other-Than-Temporar

SECURITIES, Other-Than-Temporary-Impairment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
SECURITIES [Abstract]
Number of securities available for sale with unrealized losses | Security	16		16
Total fair value of securities available for sale with unrealized losses	$ 19,017		$ 19,017		$ 76,001
Total unrealized losses of securities available for sale with unrealized losses	$ (75)		$ (75)		(321)
Number of securities held to maturity with unrealized losses | Security	0		0
OTTI charges	$ 0	$ 0	$ 0	$ 0
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law	$ 6,100		$ 6,100		$ 3,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Portfolio loans [Abstract]
Total loans	$ 1,542,335		$ 1,385,627
Allowance for loan losses	(16,558)	$ (15,855)	(17,200)	$ (17,145)	$ (16,886)	$ (16,876)
Net loans	1,525,777		1,368,427
Paycheck Protection Program (PPP) [Member]
Portfolio loans [Abstract]
Allowance for loan losses	0
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	752,918		499,572
Allowance for loan losses	(5,966)	(5,431)	(7,658)	(7,487)	(7,231)	(6,856)
Commercial and Industrial [Member] | Commercial and Industrial Excluding PPP [Member]
Portfolio loans [Abstract]
Total loans	413,702		499,572
Commercial and Industrial [Member] | Paycheck Protection Program (PPP) [Member]
Portfolio loans [Abstract]
Total loans	339,216		0
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	558,923		598,458
Allowance for loan losses	(7,667)	(7,262)	(6,521)	(6,465)	(6,309)	(6,544)
Commercial Real Estate [Member] | Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	10,072		14,705
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	45,534		41,796
Commercial Real Estate [Member] | Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	605		665
Commercial Real Estate [Member] | Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	117,202		130,861
Commercial Real Estate [Member] | Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	273,355		292,799
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	112,155		117,632
Consumer [Member]
Portfolio loans [Abstract]
Total loans	230,494		287,597
Allowance for loan losses	(2,909)	$ (3,138)	(3,009)	$ (3,166)	$ (3,296)	$ (3,449)
Consumer [Member] | Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	164,818		211,049
Consumer [Member] | Unsecured [Member]
Portfolio loans [Abstract]
Total loans	189		274
Consumer [Member] | Home Equity [Member]
Portfolio loans [Abstract]
Total loans	61,276		70,936
Consumer [Member] | Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 4,211		$ 5,338

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	$ 15,855	$ 16,886	$ 17,200	$ 16,876
Charge-offs	(24)	(48)	(4,246)	(246)
Recoveries	227	307	1,404	965
Provision for loan losses	500	0	2,200	(450)
Ending balance	16,558	17,145	16,558	17,145
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	5,431	7,231	7,658	6,856
Charge-offs	0	0	(1,192)	0
Recoveries	22	233	124	510
Provision for loan losses	513	23	(624)	121
Ending balance	5,966	7,487	5,966	7,487
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	7,262	6,309	6,521	6,544
Charge-offs	0	0	(2,957)	(132)
Recoveries	168	51	1,159	342
Provision for loan losses	237	105	2,944	(289)
Ending balance	7,667	6,465	7,667	6,465
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	3,138	3,296	3,009	3,449
Charge-offs	(24)	(48)	(97)	(114)
Recoveries	37	23	121	113
Provision for loan losses	(242)	(105)	(124)	(282)
Ending balance	2,909	3,166	2,909	3,166
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	24	50	12	27
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	(8)	(23)	4	0
Ending balance	$ 16	$ 27	$ 16	$ 27

LOANS, Allowance for Loans Lo_2

LOANS, Allowance for Loans Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 1,016		$ 1,624
Collectively evaluated for impairment	15,542		15,576
Total ending allowance balance	16,558	$ 15,855	17,200	$ 17,145	$ 16,886	$ 16,876
Loans [Abstract]
Individually reviewed for impairment	9,334		13,865
Collectively evaluated for impairment	1,533,001		1,371,762
Total ending loans balance	1,542,335		1,385,627
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	660		1,213
Collectively evaluated for impairment	5,306		6,445
Total ending allowance balance	5,966	5,431	7,658	7,487	7,231	6,856
Loans [Abstract]
Individually reviewed for impairment	2,803		5,797
Collectively evaluated for impairment	750,115		493,775
Total ending loans balance	752,918		499,572
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	26		32
Collectively evaluated for impairment	7,641		6,489
Total ending allowance balance	7,667	7,262	6,521	6,465	6,309	6,544
Loans [Abstract]
Individually reviewed for impairment	2,175		2,928
Collectively evaluated for impairment	556,748		595,530
Total ending loans balance	558,923		598,458
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	330		379
Collectively evaluated for impairment	2,579		2,630
Total ending allowance balance	2,909	3,138	3,009	3,166	3,296	3,449
Loans [Abstract]
Individually reviewed for impairment	4,356		5,140
Collectively evaluated for impairment	226,138		282,457
Total ending loans balance	230,494		287,597
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	0		0
Collectively evaluated for impairment	16		12
Total ending allowance balance	16	$ 24	12	$ 27	$ 50	$ 27
Loans [Abstract]
Individually reviewed for impairment	0		0
Collectively evaluated for impairment	0		0
Total ending loans balance	$ 0		$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 1,578		$ 1,578		$ 2,067
Recorded investment	1,578		1,578		2,067
With an allowance recorded [Abstract]
Unpaid principal balance	7,756		7,756		11,798
Recorded investment	7,756		7,756		11,798
Total [Abstract]
Unpaid principal balance	9,334		9,334		13,865
Recorded investment	9,334		9,334		13,865
Allowance allocated	1,016		1,016		1,624
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	168		168		180
Recorded investment	168		168		180
With an allowance recorded [Abstract]
Unpaid principal balance	2,635		2,635		5,617
Recorded investment	2,635		2,635		5,617
Total [Abstract]
Allowance allocated	660		660		1,213
Impaired loans [Abstract]
Average of impaired loans	2,208	$ 3,781	4,362	$ 5,304
Interest income recognized during impairment	23	174	303	692
Cash-basis interest income recognized	13	160	298	707
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	1,410		1,410		1,887
Recorded investment	1,410		1,410		1,887
With an allowance recorded [Abstract]
Unpaid principal balance	765		765		1,041
Recorded investment	765		765		1,041
Total [Abstract]
Allowance allocated	26		26		32
Impaired loans [Abstract]
Interest income recognized during impairment	33	45	193	141
Cash-basis interest income recognized	33	48	218	149
Commercial Real Estate [Member] | Residential Developed [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	70		70		76
Recorded investment	70		70		76
Total [Abstract]
Allowance allocated	3		3		3
Impaired loans [Abstract]
Average of impaired loans	71	146	72	161
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance					130
Recorded investment					130
Impaired loans [Abstract]
Average of impaired loans	0	62	0	107
Commercial Real Estate [Member] | Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	120		120		377
Recorded investment	120		120		377
With an allowance recorded [Abstract]
Unpaid principal balance					28
Recorded investment					28
Total [Abstract]
Allowance allocated					2
Impaired loans [Abstract]
Average of impaired loans	168	538	211	421
Commercial Real Estate [Member] | Commercial Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	1,290		1,290		1,380
Recorded investment	1,290		1,290		1,380
With an allowance recorded [Abstract]
Unpaid principal balance	350		350		578
Recorded investment	350		350		578
Total [Abstract]
Allowance allocated	13		13		16
Impaired loans [Abstract]
Average of impaired loans	1,650	2,071	4,652	2,187
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	345		345		359
Recorded investment	345		345		359
Total [Abstract]
Allowance allocated	10		10		11
Impaired loans [Abstract]
Average of impaired loans	347	366	352	372
Consumer [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
With an allowance recorded [Abstract]
Unpaid principal balance	4,356		4,356		5,140
Recorded investment	4,356		4,356		5,140
Total [Abstract]
Allowance allocated	330		330		379
Impaired loans [Abstract]
Average of impaired loans	4,441	5,599	4,687	5,900
Interest income recognized during impairment	41	70	153	210
Cash-basis interest income recognized	43	$ 71	148	$ 210
Consumer [Member] | Residential Mortgage [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	3,784		3,784		4,242
Recorded investment	3,784		3,784		4,242
Total [Abstract]
Allowance allocated	286		286		313
Consumer [Member] | Unsecured [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	142		142		198
Recorded investment	142		142		198
Total [Abstract]
Allowance allocated	11		11		14
Consumer [Member] | Home Equity [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	406		406		677
Recorded investment	406		406		677
Total [Abstract]
Allowance allocated	31		31		50
Consumer [Member] | Other Secured [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	24		24		23
Recorded investment	24		24		23
Total [Abstract]
Allowance allocated	$ 2		$ 2		$ 2

LOANS, Past Due Loans (Details)

LOANS, Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	$ 195	$ 203
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	524	405
Loans not past due	1,541,811	1,385,222
Total ending loans balance	1,542,335	1,385,627
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	330	287
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	194	118
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	65	0
Loans not past due	752,853	499,572
Total ending loans balance	752,918	499,572
Commercial and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	65	0
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	97	98
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	258	289
Loans not past due	558,665	598,169
Total ending loans balance	558,923	598,458
Commercial Real Estate [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	161	274
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	15
Commercial Real Estate [Member] | Residential Developed [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Loans not past due	10,072	14,705
Total ending loans balance	10,072	14,705
Commercial Real Estate [Member] | Residential Developed [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Loans not past due	45,534	41,796
Total ending loans balance	45,534	41,796
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Loans not past due	605	665
Total ending loans balance	605	665
Commercial Real Estate [Member] | Commercial Development [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Residential Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	97	98
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	186
Loans not past due	117,105	130,675
Total ending loans balance	117,202	130,861
Commercial Real Estate [Member] | Residential Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	171
Commercial Real Estate [Member] | Residential Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	15
Commercial Real Estate [Member] | Commercial Improved [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	161	103
Loans not past due	273,194	292,696
Total ending loans balance	273,355	292,799
Commercial Real Estate [Member] | Commercial Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	161	103
Commercial Real Estate [Member] | Commercial Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Loans not past due	112,155	117,632
Total ending loans balance	112,155	117,632
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Consumer [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	98	105
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	201	116
Loans not past due	230,293	287,481
Total ending loans balance	230,494	287,597
Consumer [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	104	13
Consumer [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	103
Consumer [Member] | Residential Mortgage [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	98	105
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	105
Loans not past due	164,721	210,944
Total ending loans balance	164,818	211,049
Consumer [Member] | Residential Mortgage [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	2
Consumer [Member] | Residential Mortgage [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	97	103
Consumer [Member] | Unsecured [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Loans not past due	189	274
Total ending loans balance	189	274
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Consumer [Member] | Unsecured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Consumer [Member] | Home Equity [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	104	8
Loans not past due	61,172	70,928
Total ending loans balance	61,276	70,936
Consumer [Member] | Home Equity [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	104	8
Consumer [Member] | Home Equity [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	0
Consumer [Member] | Other Secured [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	3
Loans not past due	4,211	5,335
Total ending loans balance	4,211	5,338
Consumer [Member] | Other Secured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	0	3
Consumer [Member] | Other Secured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	$ 0	$ 0

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)LoanPayment	Sep. 30, 2019Loan	Sep. 30, 2020USD ($)LoanPaymentNote	Sep. 30, 2019USD ($)Loan	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)Loan
LOANS [Abstract]
Specific reserves allocated to customers with modified term loans in troubled debt restructurings	$ 1,016		$ 1,016			$ 1,624
Number of consecutive payments before nonaccrual restructured loan is upgraded | Payment	6		6
Number of months of performance before a loan is removed from TDR			6 months
Troubled debt restructurings [Abstract]
Number of loans | Loan	82		82			91
Outstanding recorded balance	$ 9,334		$ 9,334			$ 13,707
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring	0		0			0
Accruing TDR - accruing at restructuring	6,884		6,884			8,295
Accruing TDR - upgraded to accruing after six consecutive payments	2,353		2,353			5,314
Total	$ 9,237		$ 9,237			$ 13,609
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan	0	0	2	1
Pre-TDR balance			$ 30	$ 24
Writedown upon TDR			$ 0	$ 0
Aggregate number of loan modifications made by other than troubled debt restructurings | Loan	726		726
Aggregate amount of loan modifications made by other than troubled debt restructurings, aggregate principal balances	$ 337,200		$ 337,200
Number of short-term loan modifications | Loan	26		26
Amount of short-term loan modifications	$ 79,900		$ 79,900		$ 297,300
Commercial Loans [Member] | A-B Note Structure [Member]
Troubled debt restructured loans [Abstract]
Number of notes into which original note is separated in modification | Note			2
Commercial and Industrial [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan	7		7			7
Outstanding recorded balance	$ 2,803		$ 2,803			$ 5,797
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan			0	0
Pre-TDR balance			$ 0	$ 0
Writedown upon TDR			$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan	13		13			15
Outstanding recorded balance	$ 2,175		$ 2,175			$ 2,770
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan			0	0
Pre-TDR balance			$ 0	$ 0
Writedown upon TDR			$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan	62		62			69
Outstanding recorded balance	$ 4,356		$ 4,356			$ 5,140
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan			2	1
Pre-TDR balance			$ 30	$ 24
Writedown upon TDR			$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)Grade	Dec. 31, 2019USD ($)
Risk grade category of commercial loans by class of loans [Abstract]
Number point grading system used for loan quality | Grade	8
Total loans	$ 1,542,335	$ 1,385,627
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 1,311,841	1,098,030
Internal risk grade category of loans considered substandard, doubtful or loss | Grade	6
Commercial Loans [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 354,130	15,000
Commercial Loans [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	28,297	30,266
Commercial Loans [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	232,316	291,785
Commercial Loans [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	670,362	729,222
Commercial Loans [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	23,301	25,112
Commercial Loans [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	3,338	6,547
Commercial Loans [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	97	98
Commercial Loans [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	752,918	499,572
Commercial and Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	354,130	15,000
Commercial and Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	17,582	11,768
Commercial and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	98,304	158,851
Commercial and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	270,928	290,267
Commercial and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	8,986	17,664
Commercial and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,988	6,022
Commercial and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial and Industrial [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	558,923	598,458
Commercial Real Estate [Member] | Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	10,072	14,705
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	132	312
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	9,940	14,393
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	45,534	41,796
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	4,221	9,201
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	10,708	8,085
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	29,078	22,819
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,527	1,691
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	605	665
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	309	79
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	296	586
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	117,202	130,861
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	26,426	20,142
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	90,445	109,932
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	234	518
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	171
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	97	98
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	273,355	292,799
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	6,494	6,893
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	62,472	67,915
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	195,275	213,790
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	8,764	3,847
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	350	354
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	112,155	117,632
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	2,404
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	33,965	36,401
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	74,400	77,435
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	3,790	1,392
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	$ 0

LOANS, Commercial Loans Classif

LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Commercial loans classified as substandard or worse [Abstract]
Classified as impaired	$ 9,334	$ 13,865
Total ending loans balance	1,542,335	1,385,627
Commercial Loans [Member]
Commercial loans classified as substandard or worse [Abstract]
Total ending loans balance	1,311,841	1,098,030
Commercial Loans [Member] | Substandard or Worse [Member]
Commercial loans classified as substandard or worse [Abstract]
Not classified as impaired	591	591
Classified as impaired	2,844	6,054
Total ending loans balance	$ 3,435	$ 6,645

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	$ 1,542,335	$ 1,385,627
Consumer Loan [Member] | Residential Mortgage [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	164,818	211,049
Consumer Loan [Member] | Residential Mortgage [Member] | Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	164,721	210,946
Consumer Loan [Member] | Residential Mortgage [Member] | Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	97	103
Consumer Loan [Member] | Consumer Unsecured [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	189	274
Consumer Loan [Member] | Consumer Unsecured [Member] | Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	189	274
Consumer Loan [Member] | Consumer Unsecured [Member] | Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	0	0
Consumer Loan [Member] | Home Equity [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	61,276	70,936
Consumer Loan [Member] | Home Equity [Member] | Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	61,276	70,936
Consumer Loan [Member] | Home Equity [Member] | Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	0	0
Consumer Loan [Member] | Consumer Other [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	4,211	5,338
Consumer Loan [Member] | Consumer Other [Member] | Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	4,211	5,338
Consumer Loan [Member] | Consumer Other [Member] | Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	$ 0	$ 0

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Other real estate owned [Roll Forward]
Beginning balance	$ 3,112	$ 4,183	$ 4,183
Additions, transfers from loans	0	0	0
Proceeds from sales of other real estate owned	(92)	(340)	(589)
Valuation allowance reversal upon sale	0	(171)	(453)
Gain / (loss) on sales of other real estate owned	0	79	(29)
Ending balance, gross	3,020	3,751	3,112
Less: valuation allowance	(396)	(642)	(364)
Ending balance	2,624	3,109	2,748
Activity in valuation allowance [Roll Forward]
Beginning balance	364	803	803
Additions charged to expense	32	10
Reversals upon sale	0	(171)
Ending balance	$ 396	$ 642	$ 364

FAIR VALUE, Assets Measured at

FAIR VALUE, Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 229,928	$ 225,249
Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	2,481	5,151
U.S. Treasury and Federal Agency Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	59,979	74,749
U.S. Agency MBS and CMOs [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	61,737	46,201
Tax-Exempt State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	47,170	45,962
Taxable State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	54,914	52,022
Corporate Bonds and Other Debt Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	6,128	6,315
Recurring Basis [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	3,508	3,294
Interest rate swaps	5,080	1,830
Interest rate swaps	(5,080)	(1,830)
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	3,508	3,294
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	5,080	1,830
Interest rate swaps	(5,080)	(1,830)
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	59,979	74,749
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	59,979	74,749
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	61,737	46,201
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	61,737	46,201
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	47,170	45,962
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	47,170	45,962
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	54,914	52,022
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	54,914	52,022
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	6,128	6,315
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	6,128	6,315
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Equity securities	1,518	1,481
Recurring Basis [Member] | Other Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on recurring basis [Abstract]
Equity securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on recurring basis [Abstract]
Equity securities	1,518	1,481
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Equity securities	0	0
Nonrecurring Basis [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	2,481	5,151
Other real estate owned	281	405
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	2,481	5,151
Other real estate owned	$ 281	$ 405

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans	$ 2,481	$ 5,151
Other real estate owned	$ 281	$ 405
Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | Minimum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable input(s)	0.010	0.015
Other real estate owned, unobservable input(s)	0.030	0.030
Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | Maximum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable input(s)	0.300	0.200
Other real estate owned, unobservable input(s)	0.200	0.200
Income Approach [Member] | Capitalization Rate [Member] | Minimum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable input(s)	0.095	0.095
Other real estate owned, unobservable input(s)	0.095	0.095
Income Approach [Member] | Capitalization Rate [Member] | Maximum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable input(s)	0.110	0.110
Other real estate owned, unobservable input(s)	0.110	0.110

FAIR VALUE, Carrying Amounts an

FAIR VALUE, Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets [Abstract]
Cash and due from banks	$ 28,294	$ 31,942
Bank owned life insurance	42,368	42,156
Carrying Amount [Member]
Financial assets [Abstract]
FHLB stock	11,558	11,558
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	28,294	31,942
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	28,294	31,942
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash equivalents	504,706	240,508
Loans, net	1,523,296	1,363,276
Accrued interest receivable	6,895	4,866
Financial liabilities [Abstract]
Deposits	(2,170,579)	(1,753,294)
Other borrowed funds	(70,000)	(60,000)
Long-term debt	(20,619)	(20,619)
Accrued interest payable	(274)	(518)
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash equivalents	504,706	240,508
Loans, net	1,560,997	1,395,446
Accrued interest receivable	6,895	4,866
Financial liabilities [Abstract]
Deposits	(2,171,039)	(1,753,877)
Other borrowed funds	(73,110)	(61,006)
Long-term debt	(18,062)	(18,167)
Accrued interest payable	(274)	(518)
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Securities held to maturity	91,394	82,720
Bank owned life insurance	42,368	42,156
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial assets [Abstract]
Securities held to maturity	95,142	85,128
Bank owned life insurance	42,368	42,156
Loan Commitments [Member]
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	83,113	65,648
Loan Commitments [Member] | Carrying Amount [Member]
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	0	0
Loan Commitments [Member] | Fair Value [Member]
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	$ 0	$ 0

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 738,471	$ 482,499
Interest bearing demand	560,063	479,341
Savings and money market accounts	756,579	639,329
Certificates of deposit	115,466	152,125
Total deposits	2,170,579	1,753,294
FDIC insurance limit on deposit accounts	250	250
Time deposits that exceed FDIC insurance limit	$ 32,000	$ 37,700

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 70,000	$ 60,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	451,800	498,100
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	70,000	60,000
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 40,000	$ 40,000
Range of maturities, earliest	2021	2021
Range of maturities, last	2024	2024
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	2.50%	2.50%
Federal Home Loan Bank Advances [Member] | Putable Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 30,000	$ 20,000
Range of maturities, earliest	2024
Range of maturities, last	2030
Range of maturities		2024
Federal Home Loan Bank Advances [Member] | Putable Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.36%	1.81%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Scheduled repayments of FHLB advances [Abstract]
2020	$ 0
2021	10,000
2022	0
2023	10,000
2024	40,000
Thereafter	10,000
Total	$ 70,000	$ 60,000

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - Federal Reserve Bank Borrowings [Member] - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt instruments [Abstract]
Borrowings outstanding	$ 0	$ 0
Unused borrowing capacity	12.6	13
Commercial and mortgage loans pledged to the Federal Reserve Bank	$ 14	$ 15.2

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares	$ 7,120	$ 8,158	$ 21,169	$ 23,807
Weighted average shares outstanding, including participating stock awards - Basic (in shares)	34,109,901	34,060,796	34,108,676	34,048,087
Dilutive potential common shares [Abstract]
Stock options (in shares)	0	0	0	0
Weighted average shares outstanding - Diluted (in shares)	34,109,901	34,060,796	34,108,676	34,048,087
Basic earnings per common share (in dollars per share)	$ 0.21	$ 0.24	$ 0.62	$ 0.70
Diluted earnings per common share (in dollars per share)	$ 0.21	$ 0.24	$ 0.62	$ 0.70
Stock Options [Member]
Earnings per common share [Abstract]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	0	0	0	0

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income tax expense [Abstract]
Current	$ 1,304	$ 1,971	$ 5,974	$ 5,290
Deferred	309	(89)	(1,174)	222
Income tax expense	$ 1,613	$ 1,882	$ 4,800	$ 5,512
Difference between financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income [Abstract]
Statutory rate	21.00%	21.00%	21.00%	21.00%
Statutory rate applied to income before taxes	$ 1,834	$ 2,108	$ 5,454	$ 6,157
Deduct [Abstract]
Tax-exempt interest income	(178)	(183)	(533)	(523)
Bank-owned life insurance	(45)	(53)	(144)	(155)
Other, net	2	10	23	33
Income tax expense	1,613	$ 1,882	4,800	$ 5,512
Deferred tax assets [Abstract]
Allowance for loan losses	3,477		3,477		$ 3,612
Net deferred loan fees	1,516		1,516		0
Nonaccrual loan interest	134		134		182
Valuation allowance on other real estate owned	83		83		76
Other	541		541		248
Gross deferred tax assets	5,751		5,751		4,118
Valuation allowance	(92)		(92)		(92)
Total net deferred tax assets	5,659		5,659		4,026
Deferred tax liabilities [Abstract]
Depreciation	(1,329)		(1,329)		(1,053)
Prepaid expenses	(170)		(170)		(172)
Unrealized gain on securities available for sale	(1,221)		(1,221)		(406)
Net deferred loan costs	0		0		(67)
Other	(502)		(502)		(250)
Gross deferred tax liabilities	(3,222)		(3,222)		(1,948)
Net deferred tax asset	2,437		2,437		2,078
Unrecognized tax benefits	$ 0		$ 0		$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease			12 months

COMMITMENTS AND OFF BALANCE-S_3

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Notional amount of commitments to fund mortgage loans to be sold into the secondary market	$ 5,000	$ 11,000
Commitments to make loans at fixed rates	52.40%
Expiration period of commitment to make variable rate loan	30 days
Commitments to Make Loans [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 83,113	65,648
Letters of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	12,475	15,303
Unused Lines of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	594,067	502,200
Commitment to Sell Mortgage-Backed Securities [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 24,000	$ 0

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)Category	Dec. 31, 2019USD ($)
SHAREHOLDERS' EQUITY [Abstract]
Number of classification of prompt corrective action regulations | Category	5
Actual capital levels and minimum required levels [Abstract]
CET1 capital (to risk weighted assets), actual amount	$ 229,270	$ 215,925
CET1 capital (to risk weighted assets), actual ratio	0.153	0.135
Tier 1 capital (to risk weighted assets), actual amount	$ 249,270	$ 235,925
Tier 1 capital (to risk weighted assets), actual ratio	0.166	0.147
Total capital (to risk weighted assets), actual amount	$ 265,828	$ 253,125
Total capital (to risk weighted assets), actual ratio	0.177	0.158
Tier 1 capital (to average assets), actual amount	$ 249,270	$ 235,925
Tier 1 capital (to average assets), actual ratio	0.098	0.115
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 67,421	$ 72,187
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.045	0.045
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 89,894	$ 96,249
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.060	0.060
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 119,859	$ 128,332
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.080	0.080
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 101,930	$ 82,130
Tier 1 capital (to average assets), minimum capital adequacy, ratio	0.040	0.040
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 104,876	$ 112,290
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.070	0.070
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 127,350	$ 136,353
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.085	0.085
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 157,315	$ 168,436
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.105	0.105
Balance of trust preferred securities that qualified as Tier 1 capital	$ 20,000	$ 20,000
Bank [Member]
Actual capital levels and minimum required levels [Abstract]
CET1 capital (to risk weighted assets), actual amount	$ 242,425	$ 228,761
CET1 capital (to risk weighted assets), actual ratio	0.162	0.143
Tier 1 capital (to risk weighted assets), actual amount	$ 242,425	$ 228,761
Tier 1 capital (to risk weighted assets), actual ratio	0.162	0.143
Total capital (to risk weighted assets), actual amount	$ 258,983	$ 245,961
Total capital (to risk weighted assets), actual ratio	0.173	0.153
Tier 1 capital (to average assets), actual amount	$ 242,425	$ 228,761
Tier 1 capital (to average assets), actual ratio	0.095	0.112
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 67,435	$ 72,182
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.045	0.045
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 89,914	$ 96,243
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.060	0.060
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 119,885	$ 128,324
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.080	0.080
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 101,900	$ 82,070
Tier 1 capital (to average assets), minimum capital adequacy, ratio	0.040	0.040
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 104,899	$ 112,284
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.070	0.070
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 127,378	$ 136,344
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.085	0.085
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 157,349	$ 168,425
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.105	0.105
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 97,406	$ 104,263
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.065	0.065
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 119,885	$ 128,324
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.080	0.080
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 149,856	$ 160,405
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.100	0.100
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount	$ 127,374	$ 102,587
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	0.050	0.050